REPARATION AND JUDICIAL SETTLEMENT 67 
German-American and Mexican-American mixed claims commissions, in 
connection with the computation of direct and indirect damages. No definite 
principles can be drawn from these decisions, because of the confusion of 
indirect damage with damage due to complicated causes partially remote from 
the act involved. A great deal would be accomplished by defining these prin- 
ciples in a general way. 
Finally, the ideal aim in connection with all these problems is to place 
them under the obligatory jurisdiction of the international community. This 
is the condition that the work of codification of these principles be efficient 
and interesting. To leave the interpretation or application of the rules laid 
down to the will or judgment of the States would utterly exclude every hope 
for maintaining cordial international relations. On the other hand, it is well 
known that at the present time arbitration is a most usual procedure. It 
would not constitute an innovation liable to draw irremovable objections, to 
coordinate the principles already accepted by a large majority of the States 
in connection with the peaceful settlement of controversies, and to incorporate 
these principles in the Code of State Responsibility. This important and 
beneficial task could also be expedited by adopting a procedure similar to 
that of the Supplementary Protocol of the Permanent Court of International 
Justice. A Protocol covering the gradual development of obligatory inter- 
national jurisdiction in matters involving State responsibility might be formu- 
lated. This would cover the following: 
First: Obligatory arbitration by a Settlement Board, only of cases 
wherein, although responsibility has been admitted, the amount of the in- 
demnity remains in dispute. Or 
Second: Obligatory investigation by an Inquiry Commission, only of 
such cases wherein the truth of the facts is in dispute, which, if established. 
would fix responsibility. Or 
Third: Submitting either to arbitration or to the Permanent Court of 
International Justice, only the cases involving government debts and others 
in which there is no possibility of local means of redress under the municipal 
law. Or, 
Fourth: Either obligatory arbitration, or reference to the Permanent 
Court of International Justice of all cases of responsibility for damage 
caused to the person or property of aliens, provided that same do not also 
involve a direct offence to the State. Or, finally 
Fifth: Obligatory reference to international justice, of all cases of 
responsibility, irrespective of their nature.