International Conciliation Commission (France/Switzerland)

Facts

There were two distinct disputes between France and Switzerland.

In June 1940, the 45th French army corps, composed of a French and Polish division, found itself cornered at the Swiss border. The Swiss Federal Council therefore decided to grant asylum, if so requested, on the condition of complete disarmament of the troops. The French troops left Switzerland at the end of January 1941, but approximately 12,000 Polish troops remained interned until December 1945. The French Government did not dispute its obligation to reimburse the Swiss for the costs of interning troops consisting of French nationals, but refused to acknowledge liability for the costs of interning Polish troops. It maintained that it was up to the Polish Government, which had diplomatic representatives in Bern, to deal with the matter of Polish soldiers interned in Switzerland. Switzerland argued, however, that because a French military unit was involved, France should bear the costs of internment. It sought to recover over 90 million Swiss Francs.

The second matter concerned French civil servants who allegedly collected payments in Swiss Frans. According to the Swiss Government, Swiss bankers had been prompted to make private payments. According to the Government, the French agency had mounted a fictitious operation, using French treasury funds, aimed at combating customs fraud (the SFRD), which operation violated Swiss territorial sovereignty. The French Government rejected these accusations, arguing that these were clandestine violations of French tax law by smugglers or swindlers, acting only for their own account.

On 6 April 1925, the Parties had entered into a treaty for the pacific settlement of disputes, which provided, in the event of a dispute, for the establishment of an international conciliation commission. The Commission established by this treaty was seized by a unilateral declaration of the Swiss Federal Council dated 20 August 1954.

Questions submitted to Conciliation

1. Whether France was required to reimbursed the Swiss Federal Council for the costs of internment in Switzerland during the 1940-1945 War of a Polish division that had been fighting on French soil.

2. Whether there had been a violation of Swiss territorial sovereignty by French officials responsible for combating customs fraud.

Report of the Conciliation Commission

After examining the facts, the Commission proceeded to set forth the Parties its proposed solutions to the two disputes in the form of proposed terms of settlement.

With respect to the matter of internment in Switzerland, the Commission suggested that, for the period from 20 June 1940 through 7 February 1941, France pay a sum corresponding to the actual costs of internment of the 2nd Polish division and, for the period from 7 February 1941 to the end of the internment, substantial compensation to be fixed by the two Governments.

With respect to the second matter, the Commission was unable, even after careful examination, to confirm the accuracy of the allegation that acts were committed in Switzerland that constituted a violation of that country's territorial sovereignty. It had, however, found in Swiss documents the allegation, denied by France, that an official of the SFRD had twice acted inappropriately by issuing directives by telephone to Swiss nationals located in Switzerland. The Commission noted the indication in the statement of the French Government that instructions had been given to ensure that such situations would no longer arise.

The Commission emphasized the triple declaration of the agent of the French Government concerning the liability of the State for actions by its administrative agents, whether superior or inferior, in the territory of another State, whether within or in excess of their scope of authority.

[Note: The two Governments accepted the proposals made by the Commission.]

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