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Facts:
In 1935, a Norwegian Royal Decree was enacted delimiting the Norwegian Fisheries Zone. This
delimitation made use of straight baselines drawn between fixed points on the Norwegian coastal zone---
a zone which includes its mainland, and the various islands, islets and reefs, fjords and bays which
comprise a distinctive archipelago known as “skjaergaard”. The UK, in light of its various fishing interest in
that area, protested the delimitation, claiming that it was contrary to international law principles.
The UK argued that Norway’s baselines must be reckoned from the low-water mark on the
mainland; the length of lines drawn on the formations of the Skaergaard fjord must not exceeds 10
nautical miles which is contrary to the 10-Mile rule.
On the other hand, the Norway contended that baselines must be reckoned from the low water
mark of the skjaergaard.
Ruling: NO. Although the ten-mile rule has been adopted by certain States both in their national law and
in their treaties and conventions, and although certain arbitral decisions have applied it as between these
States, other States have adopted a different limit. Consequently, the ten-mile rule has not acquired the
authority of a general rule of international law.
The Court provides criteria as basis for their decision. The following are fundamental
considerations inherent in the nature of the territorial sea.
First, the drawing of the baselines must not depart to any appreciable extent from the general direction of
the coast. Ratio for this is because it is the land which confers upon the coastal state the right to the
waters off it coast.
Second, the sea areas lying within the baseline must be closely linked to the land domain to be subject to
the regime of internal waters.
Third, the economic interest peculiar to the region, as evidenced by long usage, should be considered.
Skjaergaard – is made up of around 120,000 insular informations, lying along the coast of the mainland.
The clearest dividing line between land and sea is the skjaergaard, not the coast of the mainland.
Investment protection treaties almost invariably contain rules on expropriation that, while
differing at the level of small print, would usually define expropriation (as both direct and indirect);
formulate criteria of lawfulness of expropriation (legitimate public purpose, non-discrimination,
compensation, and sometimes also due process); and spell out certain elements in more detail (the
criteria for calculation of compensation, conditions of transfer of compensation, rights of review under
due process, additional assurances of non-discriminatory treatment etc).
If expropriation is held to have occurred, it may have been lawful or unlawful. Expropriation is
not unlawful if it is carried out with due legal process, for a legitimate public purpose, and in a non-
discriminatory manner, providing also that compensation is paid. If these criteria are not met, then
the taking is unlawful and the property has either to be returned or damages paid for its taking.
The quantum of compensation for a lawful taking is normally calculated on the basis of the
value of the asset before the expropriation occurred or the intention to expropriate became known.