International Law Studies—Volume 56 

MODERN ECONOMIC WARFARE 

(LAW AND THE NAVAL PARTICIPANT) 

Neill H. Alford, Jr. (Author) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The thoughts and opinions expressed are those of the authors and not necessarily of the U.S. 

Government, the U.S. Department of the Navy or the Naval War College. 

SUBJECT INDEX

A

Agency for International Development (AID), 100 Agl'arian Reform Act of Cuba ( 1960), 110, 119 Aid and assistance programs,

as economic weapon, 240 domestic law limitations, 241 folkway expectation of aid-neofeudalism, 243-244 in response to Soviet Bloc actions, 101 manipulations of, 234, 238, 240 reciprocal control, 242 trade pattern exploitation, 244

Alien Property Custodian, 410 Alliance for Progress, 234 Ambit of arrest, effect on choice of economic weapon, 24-26, 220-221, 230 Amity, Economic Relations and Consular Rights, Treaty of (1958), 196 Angary, right of, 194-195, 210 Anglo-French action }n Suez ( 1956). See Suez Armed action,

as protection for American persons and property, 170 interim stabilization function, 178-179, 184

B

Balance of power, effects on neutrality, 328 Balto, Tlze, case of, 393 Bases of power for participants and nonparticipants to Gonflict, 329 Battle Act, 92, 96-97 Behar, The, case of, 393 Behaviorism, as lawmaking perspective, 75-81 Belligerency, recognition of, 156, 157, 163-164, 206 Bermuda, The, case of, 385, 391 Bernisse, The, case of, 400 Biological warfare and the law, 266-269

developm~ntal restraints, 268 Geneva Gas Protocol ( 1925), 267 Hague Convention (No. IV) , 267 international legal restraints, 268

Biological attack, threat of, Cuban Quarantine analysis applied to, 284-291 Blockade,

aircraft, use of, 358 breach of,

consequences, 347, 402-403 knowledge requirement, 403

civil war examples, 340 "close" blockade distinguished, 27 4, 340-343 continuity of operations requirement, 352 declaration by competent authority, 319, 345-346 effectiveness required to be binding, 351-359 exceptions for certain ships, 354-357

417

418

force, size and composition of, 357 impartiality requirement in enforcement, 359--361 jure belli, 156 legal features of, 344-362 modern usage, 344 naval-administrative (NAVAD), 317, 361-362 neutral port access must remain open, 361 notification, 349

to nonparticipants, 347-351 pacific. See Pacific Blockade selective, 274 submarine, use of, 358 surface vessel, use of, 358

Bloc Trader, see Soviet Economic Bloc Bogota, Economic Agreement of, 196 Boycott of Cuban imports by United States, 133 Burke, Professor William T., comments on intervention, 171-172 Butler, General, law of contraband, 48-50, 56

Cargo, character of, 408-415 condemnation of, 393, 402

c

Castro, Fidel, economic strategy employed by, 109--110 Character of ship, use of in determining "enemy" ships, 405-408 Chilean Revolution of 1891, port closures, United States response to, 165--166 Claims by nonparticipant in conflict to intervene or withdraw, 333-335 Coercion,

as criterion for measuring intervention, 172-173 initiating, 290 permissiblejimpermissible categories, 289--290 self defense contentions, 290

Community characterizations and reactions to economic warfare, 66, 71-73 Consulative Group, 97-98

authorization certificates, 98-99 Coordinating Committee (COCOM), 98 Import Certificate-Delivery Verification System, 98

Consul Corjitzon, The, case of, 395 Continuous voyage doctrine, see Ultimate Destination Contraband,

absolute;conditional distinction, 364-370 carriage, consequences of, 402-403 Declaration of London principles, 364-368 food, 377-380 lists, 374, 381-382

expansion of, 374-377 na vicerting, 370-37 4 pacific, 27 4 potential use of goods as basi.s, 365 seizure, 367

Contracts, use of in determining ownership of goods, C.I.F. contracts, 411 F.O.B. contracts, 411

Corfu Channel, case of, 60, 144-145, 149 Criminal acts in international law, commun ity characterization of, 73 Cuba,

charges against United States of economic aggression, 126 expropriations of American property, 121, 125, 129 seizure of United States oil property, 125 Soviet Union Mikoyan Trade Agreement ( 1960), 124-125 Sugar Market,

dependency on United States at time of revolution, 109 status of (1959-1960), 112

Sugar Quota, See also Sugar Act of 1948 effect on market price, 130 elimination of, 133 reduction of, effect on United States production, 130-133

United States boycott of imports, 134 United States economic action against, 134 United States embargo on exports to, 128 United States policy towards (1960), 128

Cuban Qua ran tine ( 1962) , analysis of, 269-291 Clearcert system, 282-283 "intervention" as consideration in planning, 272 legality of, 270-271, 277-278 naval interference, acceptance of, 276 negotiation processes, 279 pacific contraband, 274 Secretary General of United Nations, role of, 281 Soviet Union confrontation, 279 State Department, position of, 285 United States justification, 277-278

Custom, effect on economic warfare at sea, 320

D

Decision maker, locating policy level of, 69 Declaration of London (1909), See London De facto blockade by insurgents, recognition of, 163 Defense Production Act Stockpile, see Stockpiling Detention ~nd delay of vessels, tactical use of, 399, 401 Dominican Republic, sugar quota of, 131-132 Draft Proclamation, elements to be considered, 291-296

Coordination, 292-293 defensive and offensive policies, 300 effective end sought, identification and means, 298 guidance, 293-296 persuasion, 295-296 self defense and collective self defense claims applied to, 301-304 status quo, preservation of, 314

Dumping of commodities into market, 252 limitations on, 254

E

Economic Defense Advisory Committee, 97-103 Economic defenses against Castro Cuba, 113-114

419

420

Economic isolation, disappearance of, 33 Economic Sortie,

advantages summarized, 42-43 as interruption to insurgent supply line, 216 as primary policy device, 33-34, 42-43 as secondary policy device, 43-47 compared with military strategy, 19 determining decision makers and values of enemy, 220 disclosure of plans to adversary, 127 entrapment element, 19-20 intelligence barrier, 219 power elite as target, 20-22 psychical disequilibrium, creation of, 220 selection of wealth weapon, 220

Economic Warfare Acts, legality of, 65 Economic Warfare at sea, 320-340

custom, influence on, 320 interaction between participants and nonparticipants, 326 international conventions, effect of, 320 multilateral economic transactions, effect of, 320 neutrality influenced by, 324 use as secondary policy device, 320

Economic warfare, common techniques of, cartel manipulations, 15 counterfeiting, 14 gold withdrawal, 14 tariffs, 15 trade barriers, 15

Economic warfare, distinguished from military warfare, 11 Economic warfare, Free World defensive policies as basis of, 91-92 Economic warfare, present United States posture, 102-103 Economic warfare professionals, lack of, 114-115 Economic warfare, traditional descriptions, 12-14 Economy of force, 22 El-Salvador-United States Agreement, see Executive Agreement Enemy-Friend character, test for, 409-415

civil domicile, 410 commercial domicile, 410

Enemy-neutral character, determination of, 405 Espionage as intervention, 147-148 Evidence necessary for seizure of goods, 393-398 Exclusive Agreement, United States-Cuba (1947), 118 Executive Agreement, United States-El Salvador, defense articles, 235-236 Export Control Act of 1949, 92-95, 113, 257 Export Policy, Advisory Committee on, 94-95 Expropriations,

alien property, 192 by de jure government, 191, 203, 207 civilian population, supplying of, 204 emergency requisitions, 193 foodstuffs, medical supplies, hospitals, 199 international agreements applicable, 195-202 international custom, effect of, 202

international legal standard, 193 labor and services, 199 property rights of state citizens, 207 seizure of vessels, 195 types and methods of, generally, 192 volition, effect of, 209

Falk, The, case of, 400 Food as contraband, 377-380

World War I and II, 378-379

F

Foreign aid, barriers to Presidential increases, 236 Foreign aid programs, see aid and assistance programs Foreign Assistance Act ( 1961), 187, 234, 236-238, 241 Foreign Economic Assistance, President's Task Force on, 101 Foreign warships, departure during insurgency, 140 Foreign warship-s, port entry control, 140 Free goods list, 365-367 Frontera, Mexico, port closure, 160-162

G

421

General Agreement on Tariffs and Trade (GATT), 116--119, 196, 254-256, 313 Geneva Convention for the Amelioration of the Condition of the Wounded and

Sick of Armies in the Field, 201 Geneva Convention Relative to the Protection of Civilian Persons in Time of

War (1949), 198, 380 Geneva Gas Protocol, 267 Gertrude, The, case of, 386

H

Hague Convention (no. IV), 197-198, 202, 267 Hague Convention (no. V), 200 Hague Convention (no. VIII), 365 Hague Convention (no. IX), 201 H akan, The, case of, 403 Hart, Sir Liddell, 19 Hart, Stephen, The, case of, 386, 394 Hitler, Adolph, defensive economic warfare by and Hfeed back" effect, 25-26

I

Identification of participants and nonparticipants in conflict situations, 329 Independence doctrine in insurgency, 147 Institutional changes, as economic warfare requirement, 30 Insurgents, treatment of as prisoners of war vice traitors, 205 Intelligence barrier, economic warfare planning affected by, 219-220 Intelligence source during reconnaissance, 139 Interaction between conflict participants and nonparticipants, effect on neu­

trality; 326-333 Inter-American Juridical Committee, 153 Inter-American system, nonintervention principle, 150, 187

422

International Commission of Jurists, 150 In tern a tioanl Development Act ( 1961), 100 International lists, 98 International Sugar Agreement, 108 International Sugar Council, 108 International Tin Agreement ( 1960), 219, 244-245, 253 International Wheat Agreement (1962), 219, 257-258 Intervention,

armed reconnaissance as, 143 background, 145-149 coercive impact test, 172-173 definition of, and confusion as to meaning, 146-149, 171 espionage as, 147-148 international security organizations, influence of, 176 potentially impermissible interferences, zone of, 174 United Nations Charter, 149 Western Hemisphere meaning, 186 World Court influence on, 174

Involvement, degree of by nonparticipants to conflict, 331

J Joint economic warfare, complications involved, 35-38 Joint economic warfare, use of regional international organizations, 35 jus angariae, 194-195

K

Kellogg-Briand Pact, The (1928), 336-337 Kim, The, case of, 375, 391, 394, 396

L

Landing Force, duty to protect nationals, 188 League, Covenant of the, 335-336 Lebanon, United States action in, 179, 181-184 Lee, General Robert E., economic pressures affecting surrender, 23-24 Legal institutions, definition of, 37 Liska, George, 242 London, Declaration of (1909), 320, 323-324, 335, 347, 349, 351, 364, 380, 389, 407

absolute;conditional contraband distinction, 364-370 contraband principles of, 36*-368 contraband principles applied in World War I and II, 368-370

London Naval Treaty ( 1930) , 322 Louisiana, The, case of, 390

M

Mahan, Alfred T., Admiral, 78 Mallison, William Thomas Jr., theories of self defense and collective self defense

applied to Cuban Quarantine, 284, 285, 297 Maritime Enemy Property Control, 404-415

Character of the ship, 405-408 Character of the cargo, 408-415

Marshal, Prize Court, 399

423

:Marshall, George C., General of the Army, mission to China ( 1946 ) , 222-230 McDougal, Myres S. and Feliciano, Florentino P., concepts of permissible and

impermissible coercion, 285, 289, 290, 298, 305, 307, 312, 328, 339 Medical and hospital supplies as contraband, 380 JJ im, The, case of, 400 }firamachi, The, case of, 412 Monolithic State Trader, characteristics of, 85. See also Soviet Economic Bloc Mutual Defense Assistance Control Act of 1951, see Battle Act

NA V AD blockade, see Blockade Naval Officer,

as economic warfare agent, adjudicative function, 64 administrative instructions, 63-65 creation of policy, 60-61

N

laws as policy considerations, 61-62, 64 legality of actions, importance of, 65-67, 69 legislative function, 50-59, 60, 64 persuasion problems, 68

Naval reconnaissance, surface vessel usage, advantages of, 139-140, 148 Navicerting forms during World War II, 371 Navicert system, 370-37 4

semicompulsory, 372 voluntary, 372

Neofeudalism, as emerging psychology, 34-35 Neofundamentalism, as lawmaking perspective, 75, 78-81 Neutrality,

balance of power effect, 328 claims of participation and nonparticipation, 333-340 economic warfare at sea, 324-340 interaction patterns between participants and nonparticipants, 326-328 limited withdrawal, 325 nuclear weapons influence, 328 status quo assertion by nonparticipants, 325 United States policy, 325-326 withdrawal from United States or Soviet Union protection, 327

N oordam, The, case of, 392-393 North Atlantic Treaty Organization, 405-406

0 Objectives in conflict, inclusive and exclusive, 331 Organization of American States,

Charter, 151-154 Article 15, 111, 115, 151, 255 Article 16, 111, 115, 151, 255 Article 17, 152-154, 158 Article 18, 152-154, 158 Article 19, 152-154, 158

Organization of American States, Inter-American Peace Committee, United States Memorandum to (1960), 126

Org-anization of American States, intervention list, 153

424

Pacific blockade, 272-279 Pacific, The, case of, 392-397

p

Paleofundamentalism, as lawmaking perspective, 75-78 Pan-American Maritime Neutrality Convention (1928), 322, 335 Paris, Declaration of (1856), 320, 322, 335, 351, 405 Paris, Pact of (1928), See Kellogg-Briand Pact Patrai, The, case of, 401 Permissible nonparticipation, claims of, 334-335 Peruvian Coup d'Etat, 230-233 Peterhofj, The, case of, 385-388 Population, manipulation of, 45 Port closure,

belligerent rights, 157 by de jture government, 158-160 by insurgents, 160, 162 United States policy, 157-158

Port control, foreign warship proble1ns, 141 Power elite, term explained, 37 Prize Cases, The, 156 Proclamation in Economic Warfare, 264-266, 29i-296 Protracted harassment, 16, 36 Psychical disequilibrium, 16, 20, 22, 220 Punta Del Este Conference (1962), 133

R

Rationing systems, 396-398 Reciprocal Trade Agreements Act (1947), 118 Reconnaissance, obtaining advance consent for, 14 Red China, as Cuban Sugar market, 127 Requisition,

after seizure, 210, 399 conditions for, 203, 399 in emergency, 193-194 on high seas, 210

Rio Pact (1947), 288, 338, 363

s Secretary General of United Nations, role in Cuban Quarantine, 281 Security Council of United Nations,

debate of Cuban charges against United States (1960), 126 determinations of legality in conflict, 70 setting zone of "potentially impermissible" interference, 174-176

Seizure of contraband, see Contraband Self defense claims of participation or nonparticipation in conflict, 333 Sidi Ifni, The, case of, 403 Sino-United States Surplus Property Agreement (1946), 224-230 Soviet Economic Bloc,

conquest by economic accretion, 89 defensive capabilities, 87 dual market theory of Stalin, 32, 89

economic warfare techniques, 88-92 government structure of trade control, 86-88 Ministry of Foreign Trade, 86-87 offensive capabilities, 88 state committees, 87 use of military and technical assistance, 90

Soviet Union, destruction of Cuban Sugar markets, 12 sugar purchases from Cuba, 124

Spanish Civil War, port closures during, 158, 166-167 Spri.ngbok, The, case of, 385-388, 393-395, 403 Stockpiling, 246-256

Defense Production Act Stockpile, 246-247 dumping from a stockpile, 252-256 National stockpile, 246, 250 Pipeline/CCC stockpile, 250 Strategic Critical Materials Stockpile Act (1946), 246, 250 Supplementary Stockpile, 250 withdrawals from stockpiles, 24 7-248

Strategy in economic warfare, community characterizations, 71-75 dealing with law and lawmaking perspectives, 75-81 disclosure of plans to adversary, 27-30 economy of force, 22 General Butler's use of law, 48 historical use of law, 47, 56 international considerations, 40-42 legal institutions as targets, 26-27 overcoming intelligence barrier, 219-220 persuading decision makers, 39, 68, 75 power elite as targets, 20 resistance to change, 31-33 time element, 27-30 utilization of legal institutions, 37

Suez, Anglo-French action in (1956), 34, 179-181 Sugar Act of 1948, 103-106, see also Cuba

Cuban market privileges, 103-105 Cuban quota,

elimination of, 133-134 reallocation of, 122, 132 reduction of, 110, 123-125 vacating effect, 122

extension of, 123, 133

Sustentive range, criterion in selecting economic warfare technique, 24-26

T

Tariffs and Trade, General Agreement on, 116-119, 196 Trade Agreements Extension Act (1951), 120 Trade, exploitation of, 246, see also Stockpiling Trading with the Enemy Act ( 1917) , 93-96, 113, 119, 257 Trent, The, case of, and Captain Wilkes, 50-59

425

426

u Ultimate destination-continuous voyage doctrine, 363, 383-404,

background,384-388 burden of proof, 389-391 evidence as to enemy destination, 393-398 "intention" as to enemy destination, 391-393 modern application, 388-389

United l{ingdom, seizure of goods, 399 United Nations, see also Security Council

chief purpose, 175 world community structure, 327

United Nations Charter Article 1, 116, 175, 306 Article 2, 149, 176, 255-256, 286, 304, 306--313, 337-338, 362 Article 25, 337 Article 35, 306 Article 41, 35 Article 42, 345 Article 43, 337 Article 51,

interpretation of, 304-313 member-nonmember relations,

anticipatory self defense, 307 armed attacks, 115, 307 inherent self defense right, 307 permissible coercion, 310 preemptive strike right, 307

Article 52, 286, 288 USS Scorpion, entry into Venezuela, 142-143

v Verzcruz blockade (1912), United States response to, 159 Voorhees, Captain, intervention actions in Uruguay, 149

w Warrant system, 373 Wealth distribution, effect on economic isolation, 33 Wealth overload as economic weapon, 27 Wealth weapon, selection of, 220-221

sustentive range-ambit of arrest as criteria in selection, 221-233 Western Hemisphere policies to protect property during civil disturbance, 185 Whitehall, Treaty of, 364-365 Wilderness, Battle of (1864), 27-29 Wilkes, Captain and The Trent, 50-59 Wilmington, North Carolina, Federal blockade of, 340-343 World Court, opinions of, 174 World Health Organization, 268, 313-314

'tr U.S. GOVERNMENT PRINTING OFFICE: 1968 0- 2.68·308