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ECONOMIC COERCION, THE NON-INTERVENTION
PRINCIPLE AND THE NICARAGUA CASE
E. Y. BENNEH*
INTRODUCTION:
The prohibition of the use of force in international relations contained in Article
2, paragraph 4, of the United Nations Charter is generally considered to be a part
of general international law, and even of ius cogens.' The peremptory language of
that Article does not explicitly extend, however, to the prohibition of intervention
by one State in the internal affairs of another State. Precisely what rule of
international law proscribes "intervention" is a subject of debate. Within this
debate is the question of whether economic pressure or of coercion is a form of
use of illegal intervention.'
Legal opinion on this issue is divided. The ruling of the International Court of
Justice (ICJ) in the NicaraguaCase3 has of course given some indication on the
issue. In Nicaragua, the court, in a somewhat Delphic pronouncement, stated
that:
The principle [of non-intervention] forbids all States or group of
States to intervene directly or indirectly in the internal or external
affairs of other States.
A prohibited intervention must accordingly be one bearing on matters
in which each State is permitted, by the principle of State sover-
eignty, to decide freely. One of these is the choice of a political,
economic, social and cultural system, and the formulation of foreign
policy. Intervention is wrongful when it uses methods of coercion in
regard to such choices, which must remain free ones. The element of
coercion, which defines, and indeed forms the very essence of pro-
hibited intervention, is particularly obvious in the case of an interven-
tion which uses force, either in the direct form of military action, or
6 RADIC (1994)
236 E. Y. Benneh
4. Ibid., p. 10 8 .
5. Ibid., p. 10 7 .
6. Signed: 26 June 945; In Force: 24 October 1945.
Economic Coercion, the Non-Intervention Principle 237
12. See Ninth InternationalConference of American States, Bogota, 1948, Report of the Delegation
of the United States of America, pp.201, 203., See also Whiteman, Digest of InternationalLaw,
Vol.5, p. 8 3 2 .
13. A practically identical provision was included as Article 8 of the Economic Agreement of
Bogota, drafted in 1948 but which has not entered into force.
14. See Keesing's Contemporary Archives, July 23-30, 1960, 17538; Dept. of State, Bulletin, No.
1101, Aug. 1, 1960.
15. See SCOR, 15th Year, 874th Meeting, p.874; Doc. S/4378.
240 E. Y. Benneh
denied the Cuban charge of intervention in Letter dated 15 July, 1960, addressed
to the President of the Security Council.' 6 The Cuban complaint was supported in
the Security Council by the Soviet representative who stated that the
United States decision to discontinue sugar purchases from Cuba
represents an attempt to strangle Cuba's economy; it is none other
than a coercive measure of an economic character, the use of which is
condemned as we know by the Charter of the Organization of Ameri-
can States, so frequently cited here, and it is fundamentally at vari-
17
ance with the rules of international law.
On 13 July 1960, without the consent of the Cuban Government, Peru
requested the convocation of the Meeting of Consultation of the OAS in accord-
ance with Article 39 of the OAS Charter "for the purposes of considering the
exigencies of hemispheric solidarity, the defence of the regional system, and the
defence of American democratic principles in the face of threats that might affect
them". The Meeting of Consultation did not specifically debate the United States
economic measures against Cuba. Instead, on 29 August, 1960, the Meeting
approved a resolution which broadly decided to:
Condemn the intervention or the threat of intervention by any extra-
continental power in the affairs of the American republics; reject the
attempt of the Sino-Soviet powers to make use of the political, eco-
nomic, or social situation of any American State, inasmuch as that
attempt is capable of destroying hemispheric unity and endangering
the peace and security of the hemisphere; reaffirm that the inter-
American system is incompatible with any form of totalitarianism;
proclaim that all Member States of the regional organization are
under obligation to submit to the discipline of the inter-American
system; declare that all controversies between Member States should
be resolved by the measures for peaceful solution that are contem-
plated in the inter-American system. 18
tive Order, "to deal with any unusual and extraordinary threat to the national
2
security, foreign policy, or economy of the United States". '
During consideration of the Nicaraguan complaint at the Regular Session of
the OAS, nine member States - Peru, Brazil, Argentina, Uruguay, Surinam,
Venezuela, Mexico, Colombia, and the Bahamas, presented a draft resolution
which in its operative paragraphs read as follows:
21. See Executive order 12513, May 1, 1985, Dept. of State Bulletin, Vol.85 (1985) at 75. See also
Statement made by Assistant Secretary Motley, 7 May 1985, which gives 3 main objectives of
the sanctions; (i) to underscore to both friends and adversaries our determination to resist
subversion and to protect our security and that of our friends; (ii) to reaffirm our opposition to
Sandanista policies; and (iii) to maintain pressure on the Sandanistas as an inducement to
change'. ibid.
22. See OAS General Assembly: Second Committee, Economic and Social Matters, Doc. AG/Com.
11, Doc. 12/85, 6th December, 1985.
242 E. Y. Benneh
State to trade with another. The OAS Charter did not, and was not
23
intended to, create such a rule.
The nine-Member draft resolution was not put to vote because of lack of a
quorum.
23. See Consistency of U.S. Economic Measures with OAS Charter, Statement made by the U.S.
representative at the Meeting of the Second Committee on December 6, 1985, in Acts v
Documentos, Segunda Comision, Decinoquinto Periodo Ordinaria de Sesiones de la Asamblea
Generale.
24. Keesing's Contemporary Archives, 24 September, 1982, at 31709.
87
25. Dept. of State Bulletin, June, 1982, pp. -88.
26. See Final Report, XVII Annual Meeting of the Inter-American Economic and Social Council at
12
the Ministerial Level, OEA/Ser.H/X 11.40, CIES/3772, rev. 1, at p. (1982).
Economic Coercion, the Non-Intervention Principle
27. See statement of Ambassador Alberto Martinez Piedra, U.S. representative to the Inter-American
Economic and Social Council, OAS Department of Public Information, Oct. 22, 1982, p.1.
28. See in this connection, General Assembly Resolution 178 (11) of 21 Nov. 1947.
29. Text in: ILC Yearbook (1949), pp.2 86 -288.
30. Ibid., p.290.
244 E. Y. Benneh
Every State has the duty to refrain from intervention in the internal or
31
external affairs of any other State.
During the study of the International Law Commission on the articles of the
Draft Declaration, some attention was focused on the question of "economic
coercion" as reflected in the principle of non-intervention under the OAS Char-
ter.3 2 Some members suggested that the Commission had not been explicit in its
definition of intervention. For example, Mr. Yepes proposed the adoption of the
formula included in Article 15 (Article 18 of the Revised Text) of the Bogota
33
Charter (i.e. Charter of the OAS) to replace the draft Article of the Declaration.
In rebuttal, Mr. Cordova of Mexico said he did not agree with the last phrase
"economic and cultural elements" in that article of the Bogota Charter. He,
however, was of the opinion that "if a definition were necessary, the first part of
the Bogota Charter might be included".34 Mr. Spiropoulos of Greece was opposed
to the inclusion of the Bogota article because it was "vague, inadequate formula-
tion; it contained certain notions outside the field of international law". 35 Mr.
Alfaro of Panama found Mr. Yepe's proposal "unsatisfactory" since the text of
the Bogota Article3 6 "contained a confusing number of elements.
The proposal for substituting the text of the Bogota article for the draft article
37
of the Declaration was rejected by 9 votes to 1 in the Commission.
The Draft Declaration which was adopted by the International Law Commis-
sion was subsequently referred to the Sixth Committee of the General Assembly
for comment. In the Sixth Committee, 38 Argentina 39 and Cuba proposed that a
similar article to Article 16 of the Bogota Charter (Article 19 of the Revised Text
be inserted after Article 3 of the Draft Declaration. The Argentinean proposal read:
Every State or group of States has the duty to refrain from applying or
abetting the application of coercive economic or political measures
designed to force the sovereign will of another State and to obtain
40
from that State advantages of any kind.
In this connection, the Argentinean representative, Mr. Vieyra pointed out:
31. This article was derived from original article 5 of the Panamanian text. In its Commentary on this
article, the ILC notes that the principle has already found place in various international docu-
ments. ILC Yearbook (1949), p. 2 8 7 .
32. Ibid., pp.89-93.
33. Ibid., p. 9 0 .
34. Ibid., pp. 9 0 -9 1, 93.
35. Ibid., p. 9 2 .
36. Ibid.
37. See UNGA, Official Records, Six Committee, Summary Records, 20 September-November,
1949, 172nd-173rd Meetings.
38. Doc. A/C.6/1.9.
39. Doc. A/C.6/L.25.
40. This Article reads: "No State may use or encourage the use of coercive measures of an economic
or political character in order to force the sovereign will of another State and obtain from it
advantages of any kind"
Economic Coercion, the Non-Intervention Principle 245
41. UNGA, Official Records, Sixth Committee, Summary Records 20 September-November, 1949,
172nd Meeting, p.199.
42. Ibid., 173rd Meeting, p.202.
43. Ibid.
246 E. Y. Benneh
Other delegations in the Sixth Committee opposed both the Argentinean and
the Cuban proposals. Thus, for example, Mr. Roman of the Dominican Republic
said that although his delegation unreservedly approved the principle expressed
in the Bogota article, it
feared that the co-existing stage of development of international law
did not justify the inclusion in a declaration on the rights and duties of
States, which was of universal scope, a principle that the Latin-
American States had been able to adopt only because it corresponded
44
to the current stage of development of their legal conscience.
Neither proposal was acted upon in the Sixth Committee. For that matter, on 7
December 1951, the General Assembly decided to postpone consideration of the
matter "until a sufficient number of States have transmitted their comments and
suggestions, and in any case to undertake consideration as soon as a majority of
the Member States have transmitted such replies". 4" Member States have still not
acted on the Assembly's resolution.
44. Ibid.
45. See General Assembly Resolution 596 (VI) of 7 Dec. 1951.
46. See General Assembly Resolution 596 (VI) of 7 Dec 1951.
47. Text in: ILC Yearbook (951), Vol.11, pp.134-137.
48. See ILC Yearbook (1954). Vol.11, pp. 15 1 - 15 2 .
49. Ibid., p.140.
Economic Coercion, the Non-Intervention Principle 247
United Nations Charter declared illegal the use of force in general, including not
50
only military but also economic measures.
Taking the opposite view were those who argued that Mr. Garcia-Amador's
proposal was too broad, for many acts of an economic nature, even if reprehen-
sible and violating international law, were not necessarily crimes. Thus, accord-
ing to Mr. Spirophoulos: "It was not uncommon for States to employ political and
5
economic pressure in order to influence other States. '
The proposal to add coercive measures as an offence was adopted by 6 votes to
4, with 2 abstentions, and was included as Article 2 paragraph 9, of the Draft
2
Code of Offences Against The Peace and Security of Mankind.1
Explaining his abstention, the United States delegate, Mr. Edmonds, felt that
the draft's terms were too vague and indefinite to stand the test of statutory
political validity. He expressly stated that the non-intervention clause of Article
2, paragraph 9, prohibiting coercive measures of an economic or political charac-
ter, "appeared to condemn as unjustified interventions practically all the normal
53
manifestations of international life.
The draft which the International Law Commission adopted has been referred
to the Sixth Committee of the General Assembly of the United Nations. The
Committee only adopted a resolution proposing that further consideration of the
Draft Code be postponed until a decision was reached by the General Assembly.
50. Ibid.
51. Ibid., p. 139 .
52. Ibid., p.14 0 .
53. Ibid., p. 177.
54. See GAOR, Twentieth Session, Supp. 14, p. 11, UN Doc. A/6220 (1965). Adopted by 109 to 0,
with 5 abstentions (Australia, Belgium, Netherlands, New Zealand and the United Kingdom).
248 E. Y. Benneh
attempted threats against the personality of the State or against its politi-
cal, economic and cultural elements, are condemned.
2. No State may use or encourage the use of economic, political or any other
type of measures, to coerce another State in order to obtain from it the
subordination of the exercise of its sovereign rights or to secure from it
advantages of any kind....
3. The use of force to deprive peoples of their national identity constitutes a
violation of their inalienable rights and of the principle of non-interven-
tion.
4. Every State has an inalienable right to choose its political, economic,
social and economic systems, without interference in any form by another
State.
It is clear that the language used follows closely that contained in the OAS
Charter. Paragraph 2, in particular, speaks of "economic political or any other
type of measures to coerce another State in order to obtain from it the subordina-
tion of the exercise of its sovereign rights or to secure from it advantages of any
kind". Thus, for example, explaining his abstention, the United Kingdom repre-
sentative, Sir Roger Jackling, said that: "The principle of non-intervention con-
cerned a vital area of international law which required detailed study before it
could be fully expressed in a series of propositions. It was particularly important,
that the terms used should be accurately and precisely defined.55 The United
States also declared that it considered the declaration in that resolution to be
"only a statement of political intention and not a formulation of law". 56
55. GOAR, Twentieth Session, First Committee, 1422nd Meeting, Agenda Item 107, paragraph 23.
56. Ibid., A/C.I/SR.1423, p.436.
57. 25 UNGAOR, Supp. No. 28, at 121, UN Doc. A/8028 (1970); hereinafter cited as 1970 Declara-
tion. The Declaration was adopted without vote.
58. Brownlie, Basic Documents in InternationalLaw, p.35.
Economic Coercion, the Non-Intervention Principle 249
CONCLUSION
It is clear that General Assembly Resolutions 2131 (xx) and 2625 (xxv) appear to
recognise the use of "economic coercion" as an application of illegal interven-
tion. In proclaiming a general ban on the use of such pressure, these resolutions
appear to go beyond the terms of Article 2 (4) and (7) of the United Nations
Charter, however broadly construed. The question therefore is what legal weight,
if any, can be attributed to these resolutions? It has been observed in this context
that:
The General Assembly's authority is limited to the adoption of reso-
lutions. These are mere recommendations having no legally binding
59. Where the 1965 Declaration had condemned "armed intervention and all other forms of interfer-
ence against the personality of the State or against its political, economic and cultural elements",
this paragraph instead found them "in violation of international law.
250 E. Y. Benneh
nomic coercion." In this respect, the lack of any legal content to the
statements of prohibition is highly significant.
(iii) It is also significant of the fact that some States - the Western group of
States - disassociate themselves from the later declarations on the New
International Economic Onder 2 which contain similar statements of pro-
hibition.
(vi) There is a sharp contrast between what States say and what they do in
practice.
(v) There is no distinction made between economic sanctions imposed, or
authorised, by an international organisation and economic measures
undertaken on a unilateral basis. This confusion is traceable to the desire
of various partisans to establish that all economic coercion is illegal in
international law.
Considering the above, the pronouncement made by the Court in the Nicaragua
Case becomes controversial. Evidently, the Court's opinion on the principle of
non-intervention as a rule of customary international law is influenced by what it
considers as "'acceptance" by States of the principle in those Assembly resolu-
tions.63 But this view does not escape criticism. A comment on the position of
principle which appears more acceptable is offered by Professor D'Amato. He
states:
First, a customary rule arises out of State practice; it is not necessarily
to be found in UN resolutions and other majoritarian political docu-
ments. Second, opiniojurishas nothing to do with the acceptance of
rules in such documents. Rather, opinio juris is a psychological
element associated with the formation of a customary rule as a char-
acterisation of state practice. To make matters even worse, the Court
gives no independent evidence even of its own theory that States
have accepted the non-intervention rule in various resolutions and
documents, except for the question-begging fact that the States sub-
scribed to those documents and resolutions. If voting for a UN resolu-
tion means investing it with opiniojuris, then the latter has no inde-
pendent content; one may simply apply the UN resolution as it is and
mislabel it customary law. Finally, instead of beginning with State
62. See, e.g., the Charter of Economic Rights and Duties of States, adopted by the General Assembly
at its Twenty-Ninth General Session on December 12, 1974, by a vote of 120 to 6, with 10
abstentions, UNGA Res.328, 29 UN GAOR, Supp. No. 31, Vol.1, at 50, UN Doc. A/9631 (1974).
See also General Assembly Resolution 3171 (XXVII) on "Permanent Sovereignty over Natural
Resources" of 3 December 1973, a resolution which explicitly makes mention of "economic
coercion", adopted by a vote of 108 to 1,16 abstentions, 25 UN GAOR, Supp. No. 30, at 52, UN
Doc. A/9030 (1973).
63. Elsewhere the Court declared: "The effect of consent to the text of such resolutions cannot be
understood as merely that of 'reiteration or elucidation' of the treaty commitment undertaken in
the Charter. On the contrary, it may be understood as an acceptance of the validity of the rule or
set of rules declared by the resolutions themselves", Nicaragua v'United States of America op.
cit. at p.100.
252 E. Y. Benneh
practice, the Court finds that whenever state practice conflicts with
the non-intervention rule, the practice must be an illegal breach of
that rule. This procedure similarly robs State practice of independent
content. All we need is the original alleged rule and the empty theory
that any practice inconsistent with it does not count.'
In any case, the final conclusion must be that States habitually use economic
coercion and that in the overwhelming number of cases those against whom such
coercion is applied do not respond in legal terms. State responses, in most cases,
find expression in political terms. 65 Thus, the very facts of the situation must lead
to the conclusion that international law, as based on State practice, does not
prohibit the use of economic coercion as illegal intervention.
64. D'Amato, Agora: Appraisals ofNicaragua v. United States, 81 AJIL (1987) at p.102.
65. See supra note 7.