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If there are disputes, they shall be settled by arbitrators. Rules that are to be
applied come from international settings. This is an ex parte proceeding because
Libya would not participate. The arbitrator normally would take the complaint
allegations as true. However, in international cases (as here) the court went
through a full fact finding procedure to determine the outcome.
Notes:
1. “Mixed” International Arbitration: Here the Deeds of Concession between
the U.S. oil companies and the Libyan government provided that an aggrieved parry
could request the President of the International Court of Justice to appoint a
sole arbitrator if the other party refused to make an appointment to a 3-judge
panel.
2. Individuals and International Law: The Arbitrator rejected the positivist
doctrine of the 19th and early 20th centuries that held that international law
could only bind states. Now individuals and private corporations can be subject to
international law.
3. The Role of UN General Assembly Resolutions in Making Customary
International Law:
a. The Libyan argument rested on the foundations of the 1973 and 1974 UN
General assembly resolutions proclaiming a New International Economic Order
(NIEO). The legal question for the Arbitrator was whether these NIEO resolutions
had any legal force especially in the light of UN General Assembly Resolution 1803
(XVII) if 1962. In 1962 the UN was trying to get a consensus, and the resolution
was adopted with only a few negative votes.
b. 1974 resolution did not reflect the kind of consensus of the 1962 UN
resolution. The consequence is that the 1962 resolution still was the rule of law.
Notes