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THE TRADE EXI'LOSION The explosion of world trade in the last 30 years has meant a meteoric increase in the number of transactions-private contracts-which, most of the time, provide for recourse to international commercial arbitration in case of disputes. It has meant as well a marked increase in foreign direct investment. As foreign direct Investment surged, the probabilities that States would become embroiled with one another in quarrels over diplomatic protection of investors grew as well, as States had traditionally considered it their duty to intervene on behalf of their nationals who had invested in foreign countries and whose investment was jeopardized by the actions of the host States. As is well known, this duty of diplomatic protection had led to many international political crises, if not actual wars, caused by "gunboat diplomacy" (the Opium Wars between Britain and China in the nineteenth century are well remembered). In 1914 and 1916, Mr Mavrommatis, a Greek citizen, obtained concessions from the Ottoman Empire to provide certain public services in Jerusalem and Jaffa. After the First World War, the British government granted duplicate concessions to different persons. A dispute ensued. The Government of Greece eventually espoused the claim of Mr
Journal of World Investment and Trade – Brill
Published: Jan 1, 2007
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