The Nationalization of Oil Industry from the Point of View of the International Law

Abstract

Following the nationalization of the Iranian oil industry  on March 20,  1951 and the ouster of Anglo-Persian oil company, the British government (taking account of the content and the prescribed arrangements in the text of the agreement between Iran and the British petroleum company) believed that the law of the nationalization of the Iranian oil industry would be considered as a unilateral cancellation; consequently, to exert its political support against Iran the British government filed a Statement of Claim in the secretariat of the International Court of Justice on February 5, 1952 referring to  the declaration of the acceptance of the compulsory jurisdiction of  the International Court of Justice by Iran. The Iranian government in an opposing action prepared a reply under the title of " The Preliminary Considerations over the Rejection of Jurisdiction of the International Court of Justice by the Iranian Government" and submitted it to the International Court of Justice on March 6, 1952. The Iranian Government, mentioning some reasons, objected to the Jurisdiction of the International Court of Justice to hear the case. To reject the Jurisdiction of the International Court of Justice, the Iranian government addressed this issue that the decision related to the nationalization of oil is an issue associated with Iran's internal affairs (the 2nd paragraph of the article 7 of the Charter of the United Nations) and also mentioned the other reasons which were addressed in the text of that reply. 

Despite the reasoning of the both parties to the claim; anyway, the judgement of the International Court of Justice was rendered after discussion and consultation sessions. In this judgement the International Court of Justice, dismissing the claim and complaint made by the Britain government and putting emphasis on its incompetency over hearing the case, rendered an order for the benefit of Iran and the case was gotten off the agenda of the International Court of Justice.

The present article is an attempt to investigate: the process of the formation of this case from the beginning to the declaration of the judgement of the International Court of Justice, the reasoning of the parties to the claim, and the judges of the International Court of Justice and that it is a confirmation for proving the legitimacy of the Iranian government and nation in the nationalization of oil industry from the approach of the International law.