All this had truth in it. But does that prove anything against the usefulness of arbitration clauses in treaties of commerce?
The agreement referred to between the united kingdoms and Spain, January 8th, 1887, establishes:—
"A question which affects customs or the carrying out of commercial treaties, or relates to results of some special violation of the same, shall, when all attempts to come to an amicable agreement and all friendly discussions have proved fruitless, be referred to an arbitration tribunal, whose decision shall be binding on both parties."
According to this it may be plainly seen, that the well-known Swedo-Spanish Spirit-dispute, to which Mr. Hedin alluded, ought to have been solved in its entirety by arbitration. The Spanish Government, however, maintained that this affected Spanish internal concerns, since in fact the forced sale of Karlstamms-Volagets brandy stores in Spain took place as a result of a new spirit law, to which the arbitration clause in this case could not be applied.
This starting-point for the judgment of the whole dispute was accepted by the Swedish Government; which also agreed to let an arbitrator settle whether the question of the spirit tax was independent of the treaty or not. Both Governments agreed to choose the Portuguese ex-Foreign Minister, Count de Casal Riberio, as arbitrator, and he expressed himself in favour of the Spanish construction. And with this the whole matter was settled.
No one can seriously think that the method of procedure on the Swedish side, which led to so distressing a violation of justice as that referred to by Herr Hedin, could prove anything against the principle of arbitration. On the other hand, it appears to betray the character of the statesmanship of our then Foreign Minister; which indeed earned for him a diamond-set snuffbox from the Emperor William II., but otherwise, the blame only of sensible people.
Herr Hedin, who has a weakness for strong expressions, had the opportunity of using some such in their right place. Unhappily, this cannot be said with truth of the closing words of his speech, where he remarks that the expressions of the Foreign Minister are so decisive against the bill that they deal the report of the committee of the Second Chamber a right deadly blow.
The committee had proposed that the king, with the authority which § 11 in the form of government accords him, should seek to bring about such agreements with foreign powers, that future possible differences between the powers named and Sweden should be settled by arbitration.
The deadly blow must be the remark of the Foreign Minister that questions affecting the existence and independence of nations must be excepted from decisions by arbitration.
This principle is known to be universally accepted, and in no way stands in antagonism to the report of the committee, which of course left the hands of the king as free as possible to promote the idea of arbitration according to circumstances.