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<br />.. <br /> <br />legislative and judicial powers in respect to persons and property <br />within the territorial limits of the United States without preserv- <br />ing legislative control or judicial review. In testimony before <br />the Foreign Relations Committee of the United States Senate Mr. <br />Sylvester C. Smith, Jr. stated: <br /> <br />"To overcome the objection of the American Bar <br />Association, is comparatively simple and we suggest an <br />acceptable remedy by means of an interpretative reser- <br />vation. Interpretative reservations were acceptable <br />to President wilson at the time of the consideration <br />of the Treaty of Versailles. Interpretative reserva- <br />tions have been used by the Mexican Government in <br />connection with treaties. A reservation providing <br />that the Treaty shall be so interpreted that the admin- <br />istrative powers of the American Section exercise <br />solely within the territorial limits of the United <br />States, shall be deemed subject to the laws enacted by <br />the Congress and judicial review by the Federal Courts <br />would avoid controversy in the future international <br />misunderstanding, and would reassure the application <br />of the Treaty by the parties within the limits of our <br />constitutional form of government." <br /> <br />As a result of the objections by the American Bar Asso- <br />ciation the Treaty was ratified subject to certain understandings <br />which are attached hereto as Appendix B. <br /> <br />j <br /> <br />. THE 1929 PAN..,AMERICAN ARBITRATION TREATY <br /> <br />The 1929 Pan-American Arbitration Treaty became quite <br />important at the time of the ratification of the Mexican Treaty <br />and its importance may again be felt as a result of the present <br />controversy. It was argued by those who favored the Mexican <br />Treaty that the Arbitration Treaty was applicable to the dispute <br />between the two nations concerning the utilization of the waters <br />of the border streams and that the terms of the Mexican Treaty <br />were more favorable to the United states than could be reasonably <br />expected from any arbitrated settlement made pursuant to the 1929 <br />Pan-American Treaty. Those who opposed the Treaty denied that <br />the Arbitration Treaty was applicable to the dispute. <br /> <br />In analyzing the two divergent theories concerning this <br />Arbitration Treaty, the same arguments could again be made as to <br />the present dispute. <br /> <br />-13- <br />