WHAT IS THE RULE IN INTERNATIONAL LAW AS TO THE ASSETS, DEBTS AND

TREATIES:
a. When a portion of the State becomes independent State;
b. When a portion of the State becomes part of another State or ceded to another State; and
c. When one State is absorbed by another State.

Succession of States
The issues on succession can be succession to territory, to treaties, to property and contracts. The rules
may be summarized thus:

When a state succeeds another state with respect to particular territory, the capacities, rights and duties
of the predecessor state with respect to that territory terminate and are assumed by the successor
state.

1. As to state property, subject to agreement between predecessor and successor states, title passes as
follows:

a) where part of the territory of a state becomes territory of another state, property of the
predecessor state located in that territory passes to the successor state;
b) where a state is absorbed by another state, property of the absorbed state, wherever located,
passes to the absorbing state;
c) where part of a state becomes a separate state, property of the predecessor state located in the
territory of the new state passes to the new state.

2. With respect to public debts, subject again to agreement between the states concerned,
responsibility for the public debt of the predecessor, and rights and obligations under its contracts,
remain with the predecessor state, except as follows:

(a) where part of the territory of a state becomes territory of another state, local public debt, and
the rights and obligations of the predecessor state under contracts relating to that territory, are
transferred to the successor state;
(b) where a state is absorbed by another state, the public debt, and rights and obligations under
contracts of the absorbed state, past to the absorbing state;
(c) where part of a state becomes a separate state, local public debt, and rights and obligations of
the predecessor state under contracts relating to the territory of the new state, pass to the new
state.

3. With respect to treaties (already touched on in the Chapter on Treaties), the Vienna Convention is
followed. The rules are:

1. When part of the territory of a state becomes territory of another state, the international
agreements of the predecessor state cease to have effect in respect of the territory and the
international agreements of the successor state come into force there. This reflects the “moving
treaty rule” or “moving boundaries rule.” If X has a treaty with Y, and part of Y is transferred to
Z, X may seek relief from treaty obligation under “rebus sic stantibus.’’
 2. When a state is absorbed by another state, the international agreements of the absorbed state
are terminated and the international agreements of the absorbing state become applicable to
the territory of the absorbed state. Third states may appeal to rebus sic stantibus.
3. When a part of a state becomes a new state, the new state does not succeed to the
international agreements to which the predecessor state was party, unless, expressly or by
implication, it accepts such agreements and the other party or parties thereto agree or
acquiesce. This applies the “clean slate theory.”
4. Pre-existing boundary and other territorial agreements continue to be binding notwithstanding.
This is the uti possidetis rule. The consequences of the re-unification of West and East Germany
were governed by the German Unification Treaty of 1990. The special case of Hongkong’s return
to China in 1997 were governed by the 1984 Sino-British Joint Declaration on the Question of
Hongkong.

Reference: PIL_Bernas.pdf Pages 82-84