Full text: Responsibility of states for damage caused in their territory to the person or property of foreigners

that could be readily established, to allow private persons, in certain re- 
stricted instances, to institute themselves the international action, with the 
sanction of their governments? 
(b) It is recognized that among the States normal conditions disturbed 
by international wrongs are restored by means of satisfaction and reparation, 
Some of the authorities claim that there is a certain degree of similarity 
between these means and the repressions and indemnities provided by the 
municipal penal laws. Satisfaction among States is, properly speaking, 
only a moral or political reparation. It is applied in instances wherein it is 
deemed that the national honor, dignity or respectability have been injured. 
There is no precedent in arbitral awards expressly imposing punitive satis- 
faction or indemnity. On the contrary, arbitral awards contain statements 
that eliminate every possibility of applying punitive measures among the 
States. However, there have been cases in actual practice where a State 
has demanded punitive satisfaction or reparation and the defendant State 
has found it necessary to yield. It is neither advisable nor proper to cite 
these cases. These occurrences, however, have extrajudicial character and 
could not exert any influence upon codification work. There have been 
cases, t00, in which arbitration commissions have imposed indemnities so 
grossly out of proportion with the actual damage caused that they are sug- 
gestive of exemplary damages. The fact remains, however, that in inter- 
national jurisprudence there is no possibility of meting out punishment or 
penalties in the sense that these measures were understood in the ancient 
penal law. In the modern penal law the conceptions of punitive atone- 
ment and retribution have disappeared. 'Repressions are only exercised for 
the purpose of maintaining the public peace. From this point of view there 
is not, properly speaking, any difference between disciplination and indemnity. 
Each of them constitute a feature of the one conception that reparation is 
essential to maintain social equilibrium. 
(c) The work of codification should be extended so as to give inter- 
national character to certain principles of private jurisprudence in connection 
with the nature of the damage, the assessment of same, the various kinds of 
reparations, how these should be fixed, etc. There are certain principles 
that would be very useful in determining the measure of damages for which 
reparation should be made. The connection between the act and the damage 
is one of the essential elements. This connection establishes the fact that 
aot only should the actual material loss caused by the act be allowed, but 
also the loss of income that it has brought about. This is the ancient Roman 
interpretation of damnus emergens and lucrum cessans, which has been fol- 
lowed in a large number of arbitral awards. There is also a very extensive 
and substantial arbitral jurisprudence, although somewhat contradictory and 
indefinite, running from the time of the Alabama claims to the present

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