“A FOREIGN STATE."

Star (Christchurch), Issue 16413, 29 April 1921, Page 5

“A FOREIGN STATE."

AUSTRALIA SO RECOGNISED IN U.S. COURT By Teieg-apb—P»ess Association— Copyright. Australian and N.Z. Cab!* Association. SAN FRANCISCO, April 27. An interesting issue has been settled in the Australian Commonwealth’s suit against the Pacific Motor Ship and Pacific Freighters Company, in which the Commonwealth prayed for foreclosure of mortgages amounting approximately to £400.000 for eight motor ships which Australia sold to the company, and the appointment of a receiver. Defendants asked Judge van Flett of the Federal District Court, who was trying the case, to declare that he had no jurisdiction, on the ground that only foreign Governments could, under the United States Constitution and Federal code, sue American corporations or persons in American Federal Courts, and that Australia was not a foreign State. Defendants said that only the British Crown was competent to sue on behalf of the Commonwealth. Judge van Flett heard special argument fov Mr Sheldon, who claimed that Australia’s self-governing powers gave the Commonwealth the standing of a foreign State under the American Constitution and code. Judge van Flett gave a decision in favour of the Commonwealth, thus creating a precedent. A similar matter never before has been decided in the American Federal Court.