INTERNATIONAL LAW.

Taranaki Daily News, 29 April 1921, Page 5

INTERNATIONAL LAW.

THE STATUS OF AUSTRALIA.

DECISION CREATES PRECEDENT.

By Telegraph.—Press Assn.—Copyright. Received April 28, 9.10 p.m. San Francisco, April 27.

An interesting issue has been settled in the Australian Commonwealth’s suit against the Pacific Motor Ship and Pacific Freighters Company in which the Commonwealth prayed for the foreclosure of mortgages amountiilg approximately to £400,000 for eight motor ships which Australia sold to the company, and the appointment of a re ceiver.

Defendants asked the judge, Van ,Fleet, of the Federal District Court, # who was trying the case, to declare that he had, no jurisdiction on the ground that only foreign Governments could, under the United States Constitution and Federal code, sue American corporations or persons in the American Federal Courts, and that Australia was not a foreign State. Defendants said that only the British Crown was competent to sue on behalf of the Commonwealth.

Judge Van Fleet heard special argument by Mr. Mark Sheldon (Australian Commissioner in the United States) who claimed that Australia’s self-gov-erning powers gave the Commonwealth the standing of a foreign State under the American Constitution and code.

Judge Van Fleet gave his decision in favor of the Commonwealth, thus creating a precedent. A similar matter has never before been decided in an American Federal Court.