[279] Russia in 1905, by the Peace Treaty of Portsmouth, transferred her lease to Japan.
[280] This transaction took place for the sum of 1,258,000 thaler, on condition that Sweden, after the lapse of 100 years, should be entitled to take back the town of Wismar on repayment of the money, with 3 per cent. interest per annum. Sweden in 1903—see Martens, N.R.G. 2nd Ser. XXXI. (1905), pp. 572 and 574—formally waived her right to retake the town.
[281] See, for instance, Perrinjaquet in R.G. XVI. (1909), pp. 349-367.
[282] By article 1 of the Treaty of London of May 9, 1906; see Martens, N.R.G. 2nd Ser. XXXV. (1908), p. 454.
(4) The fourth case is that of a piece of territory of which the use, occupation, and control is in perpetuity granted by the owner-State to another State with the exclusion of the exercise of any sovereign rights over the territory concerned on the part of the grantor. In this way[283] the Republic of Panama transferred, in 1903, to the United States of America a ten-mile wide strip of territory for the purpose of constructing, administrating, and defending the so-called Panama Canal. In this case the grantor retains only in name the property of the territory, the transfer of the land concerned is really cession all but in name, and it is certain that only the grantee exercises sovereignty there.
[283] See below, § [184], and Boyd in R.G. XVII. (1910), pp. 614-624.
(5) The fifth case is that of the territory of a Federal State. As a Federal State is considered[284] a State of its own side by side with its single member-States, the fact is apparent that the different territories of the single member-States are at the same time collectively the territory of the Federal State. But this fact is only the consequence of the other illogical fact that sovereignty is divided between a Federal State and its member-States. Two different sovereignties are here by no means exercised over one and the same territory, for so far as the Federal State possesses sovereignty the member-States do not, and vice versa.
II THE DIFFERENT PARTS OF STATE TERRITORY
Real and Fictional parts of Territory.