International judicial settlement—a term which in its essential meaning includes international arbitration—is a method of settling disputes between States by a binding decision based upon rules of law. This exclusive authority of rules of law as a source of decision has from the very inception lent to the notion of international judicial settlement and arbitration most of its moral and political strength. Accordingly, it was natural to propound and to act upon the view that in all cases where there are no rules of international law applicable to the case, there...
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