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The First Bilateral Investment TreatiesU.S. Postwar Friendship, Commerce, and Navigation Treaties$
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Kenneth J. Vandevelde

Print publication date: 2017

Print ISBN-13: 9780190679576

Published to Oxford Scholarship Online: April 2017

DOI: 10.1093/acprof:oso/9780190679576.001.0001

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Negotiating the First Bilateral Investment Treaties

Negotiating the First Bilateral Investment Treaties

The Truman Years

Chapter:
(p.225) 6 Negotiating the First Bilateral Investment Treaties
Source:
The First Bilateral Investment Treaties
Author(s):

Kenneth J. Vandevelde

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780190679576.003.0007

The United States regarded an FCN treaty as a charter of liberal principles to which parties agreed because they were mutually beneficial, rather than as a set of bargained-for concessions. Thus, the State Department declined to coerce other countries to conclude treaties or to promise that treaties would lead to increased foreign investment. The State Department recognized that its bargaining power was limited because the treaties granted to other countries little more protection than they already received under the U.S. Constitution. Further, some potential treaty partners objected to liberalism in principle or feared economic colonization. In negotiations with Greece, Denmark, and Israel, the State Department refined the investment provisions of the treaties, putting them in their mature form, which is also seen in the later treaty with Japan. Negotiations with Ethiopia provided an opportunity to develop a short form of the standard draft treaty for use with least developed countries.

Keywords:   liberal principles, mutual benefit, coerce, bargaining power, Greece, Denmark, Israel, Japan, Ethiopia, short form

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