The Corfu Channel Incident: International Law Delayed and a Nazi Loot of Monetary Gold

International Relations, Law and society,, Regional History

Albania emerged from the Second World War with a communist government led by Enver Hoxha striving to free itself from the clutches of Yugoslavia whose leader Tito was intent on making its smaller neighbour part of the Yugoslav federation, a particularly tricky scenario as Albania, economically stricken after the war, was dependant on Yugoslav for urgently needed aid.

𝒮𝓉𝓇𝒶𝒾𝓉𝓈 𝑜𝒻 𝒞𝑜𝓇𝒻𝓊

Into this already tense situation in the first half of 1946, a rift developed in UK/Albanian relations. First, in March-April London refused to exchange diplomats with Tirana, citing the latter’s unfriendly and “uncooperative attitude” towards British personnel🅰. In May two Royal Navy cruisers Orion and Superb were navigating through the Corfu Straits (a narrow passageway separating that Greek island from Albania) when fired at by an Albanian land gunnery. The British warships sustained no damage but matters escalating from there…two British destroyers entered the straits in October and hit hitherto undetected land mines, HMS Saumarez in particular was badly damaged and later written off. More importantly there were British crew casualties (44 dead and a similar number injured). The following month the Royal Navy undertook a sweeping operation of the straits and found 22 mines {’Albanian-American Relations in the Fall of 1946: A Stormy End’, (Edward J. Sheehy), Tirana Observatory, 9-Apr-2009, www.tiranaobservatory.com}.

𝐻𝑀𝒮 𝒮𝒶𝓊𝓂𝒶𝓇𝑒𝓏
𝐼𝒞𝒥 𝑒𝓂𝒷𝓁𝑒𝓂

The United Kingdom of Great Britain and Northern Ireland v. the People’s Republic of Albania
The UK’s response to the incident was to take Albania to the International Court of Justice in The Hague (the inaugural case brought before the new Court). The protracted case, not concluded until 1949, was a landmark case for the inter-country disputation, helping to lay the foundations for the development of what would eventually become the UN International Law of the Sea (ratified in 1982) {‘Summary of Relevant Aspects of the Corfu Channel Case (Merits)’, www.iilj.org}. The eventual judgements handed down were mixed, the Court found that Great Britain (GB) in entering Albania’s territorial waters did not violate its sovereignty (having a right of “innocent passage”), however it adjudged that GB’s mine-sweeping operation (codenamed “Operation Retail”) was a sovereign violation of Albanian waters, nor did it have permission from the international mining clearance organisations to conduct the operation. Lawyers for the British had argued that it took the action to secure evidence of the minefield’s existence, but the Court threw out GB’s argument of acting in self-protection or self-help {‘The Corfu Channel Case, The United Kingdom of Great Britain and Northern Ireland v. the People’s Republic of Albania‘, UN Environment Program, www.leap.unep.org}.

𝐿𝑒𝑔𝒶𝓁 𝒯𝑒𝒶𝓂 𝒢𝐵 𝒶𝓉 𝒯𝒽𝑒 𝐻𝒶𝑔𝓊𝑒 𝒸𝒶𝓈𝑒

The British legal argument that the mines had been laid by Yugoslavia, acting on a request from Tirana, was denied by Hoxha’s government which blamed Greece for the mines – at the time Albania had involved itself in the civil war in Greece on the side of the Greek communists. The Court determined that collusion between Albania and Yugoslavia in mining the straits could not be proven (www.iilj.org). In a subsequent judgement The Hague ruled that Albania had failed in its responsibility to warn GB of the minefield danger, consequently Albania was ordered to pay GB damages of £843,947 for the material loses of the warships (equivalent to £24.4 million in 2019){‘Corfu Channel Case’, Wikipedia, http://en.m.wikipedia.org}. Hoxha rejected the verdict—though in 1950 the regime offered GB a token amount of £40,000 as payment for compensation—making no serious effort to meet its liability.

𝒫𝓊𝓇𝓁𝑜𝒾𝓃𝑒𝒹 𝒩𝒶𝓏𝒾 𝑔𝑜𝓁𝒹 𝒾𝓃 𝑀𝑒𝓇𝓀𝑒𝓇𝓈 𝓈𝒶𝓁𝓉 𝓂𝒾𝓃𝑒 (𝒮𝑜𝓊𝓇𝒸𝑒: 𝓌𝒾𝒹𝒹𝑒𝓇𝓈𝒽𝒶𝓊𝓈𝑒𝓃.𝒹𝑒)

Monetary gold stolen from Rome
In 1946 the victorious allies (GB, US and France) established the “Tripartite Commission for the Restitution of Monetary Gold” to recover gold stolen by Nazi Germany and return it to the rightful owners. Included in the Nazi loot was 2,338 kg of gold seized in 1943 from the Bank of Rome by the Nazis, a treasure claimed by both Italy and Albania (and indirectly and partly by GB who identified in this a remedy for its still outstanding damages verdict). The Commission was unable to resolve the monetary gold issue so an independent arbiter appointed by The Hague determined that the gold belonged to Albania. Italy contested the matter—it’s claim resting largely on Italians having been the majority shareholders in the National Bank of Albania (which had been seized by fascist Italy)—taking the dispute to the ICJ, Italy v France, United Kingdom and Northern Ireland and United States of America (1954). The ICJ however held that it had no jurisdiction to adjudicate the case.

𝒩𝒶𝓉𝒾𝑜𝓃𝒶𝓁 𝐵𝒶𝓃𝓀 𝑜𝒻 𝒜𝓁𝒷𝒶𝓃𝒾𝒶 𝐻𝒬

A post-Hoxha resolution
Albania refusal to accept the compensation judgement against it and GB’s blocking the transfer of the gold to Albania occurred as Albania entered a long phase of self-isolation🅱. The recovered Nazi gold sat in the vaults of the Bank of England for over four decades and the diplomatic impasse between London and Tirana was not broken until the eclipse of the communism in Albania. When democracy was established in 1991, diplomatic negotiations began and a deal was done, the new government in Albania agreed to pay GB’s compensation bill from the Corfu episode and in return the British agreed to release 1674 kg, providing the funds that economically weak post-communist Albania needed before it could pay GB the amount owing.

𝑀𝒶𝑜 𝒶𝓃𝒹 𝐻𝑜𝓍𝒽𝒶

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Footnote: The Tripartite Gold Commission did not deliver the gold to Albania until 1996 (the lengthy process required the cooperation of the GB, US and French governments) and the amount ultimately paid by the Albanian government to GB in “full and final settlement” was US$2,000,000.

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🅰 in relation to war graves identification and limitations on movement with the country, a charge denied by Tirana

🅱 Albania severed its relationships not just with the UK and US (Sheehy), but even within the socialist Second World. Stalinist ideologue Hoxha broke off ties with both USSR (1961) and China (1978) for being too ‘revisionist’

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United Fruit, CIA, Do Business with Guatemala, Cold War Style: 2) Democracy to Coup D’état

Comparative politics, Economics and society,, International Relations, Military history, Political geography, Regional History

CCACBF24-9484-466C-AD4D-9150E57E5250With the go-ahead from incoming president Eisenhower in March 1953, Allen Dulles and the CIA continued the covert plot to undermine and destabilise the Árbenz government. The highly-orchestrated assault on the Árbenz regime took place on several fronts. Washington blocked a much needed loan from the World Bank to Guatemala and imposed an arms embargo on the country. The CIA forged an alliance of neighbouring states which were hostile or potentially hostile to Árbenz. The dictators running Nicaragua, Honduras, El Salvador, Dominican Republic and Venezuela didn’t require much persuading. Success by Árbenz in redistributing Guatemalan land could easily inspire the peasantries in their own countries to make similar demands, so the tiranos-caudillos were only too happy to get on-board with the CIA’s mission and pass on valuable intelligence about Guatemala to the US, and in the case of Nicaragua’s Somoza, Dominican Republic’s Trujillo and Venezuela’s Jiménez, help finance and arm the anti-Árbenz rebels.

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⬆️ Dulles Bros Inc

Within the turbulent atmosphere of Guatemala CIA pursued a strategy of divide-and-rule. The US dangled the carrot of future armaments before the country’s military high command –  the arms withheld from them would be made available on the proviso that they were prepared to break with their loyalty to Árbenz. [Bowen, Gordon L. “U.S. Foreign Policy toward Radical Change: Covert Operations in Guatemala, 1950-1954.” Latin American Perspectives 10, no. 1 (1983): 88-102. Accessed July 28, 2020. www.jstor.org/stable/2633365].

Peurifoy and anti-communism in one country
At the same time the US State Department also utilised diplomatic channels to lever pressure on the Guatemalan regime. The State Department purposefully chose John Peurifoy as the new ambassador to Nicaragua. Peurifoy came with the right credentials to ‘help’ in Guatemala. As US ambassador to Greece in 1950 he interfered in post-civil war Greece to consolidate an anti-communist climate in the country. As Washington’s man-on-the-ground in Guatemala Peurifoy played a key role in destabilising the Árbenz government. The ambassador  approached the task of rooting out communists in Guatemalan politics very zealously, describing a meeting with Àrbenz thus, “I came away definitely convinced that if President is not a communist, he will certainly do until one comes along, and that normal approaches will not work in Guatemala” [‘The Ambassador in Guatemala (Peurifoy) to the Department of State, Office of the Historian, www.history.state.com/]. The CIA’s anti-Árbenz propaganda campaign also secured the assistance of the Catholic Church in Guatemala, whose priests infused their sermons with censure of the government.

Washington parachutes ”anti-red troubleshooter” into Guatemala
(New York Times) ⬇️


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Self-appointed gatekeeper of the Western Hemisphere
Historians have debated the reasons for Washington’s persistently determined pursuit of the Guatemalan democracy. In the early to mid-Fifties the mania of anti-communism was at its peak in America. Eisenhower had been elected in 1952 pledging to stop the spread of the “communist scourge” both at home and globally. In such a charged climate the US Administration found itself very disposed towards seeing developments in Guatemala under Árbenz as evidence of a Soviet beachhead in the region, as a violation of the Monroe Doctrine, and therefore justification for Washington to intervene in Guatemala’s affairs [‘Upholding the Monroe Doctrine: American Foreign Policy in the 1954 Guatemalan Coup d’Etat’, (Nadjalisse C. Reynolds-Lallement), [Dr. Karen E. Hoppes HST 201: US History June 5, 2013], http://pdxscholar.library.pdx.edu/].

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A symbiosis of political and economic interests?
The consensus among historians is that Cold War politics was the prime mover for the US, and that the economic interests and profitability of United Fruit Company (UFCo) in Guatemala always was secondary in the scheming – although as Gordon has argued, there was a reciprocal relationship between the two at play, the US’ government’s “Cold War and anti-communist hysteria provided public cover for government action on behalf of UFCo, (the company’s) personnel facilitated the CIA’s Cold War task of subverting the Árbenz government” [Gordon, Max. “A Case History of U. S. Subversion: Guatemala, 1954.”Science & Society 35, no. 2 (1971): 129-55. Accessed July 27, 2020. www.jstor.org/stable/40401561].

Notwithstanding the fact that local communists held some sway over the Guatemalan labour movement, their impact on decision-making within the Árbenz government was at best minimal. Árbenz’ objectives on taking control were not doctrinal but pragmatically liberal ones – political liberalisation, creation of a middle class, modernisation of the country, to free the Guatemalan economy from dependency on world coffee prices and from control by foreign corporations𝄪 (Gordon). Try as they may, US apologists arguing that the intervention was saving the country from communism have failed to make any plausible, even indirect, connexion between the Árbenz government and the Soviet Union. Immerman’s view is that the State Department confused communism and nationalism [cited in Bowen).

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⬆️  JF Dulles, Time’s “Man of the Year, 1954”

Isolating the Western Hemisphere’s outlier state 
With former UFCo lawyer John Foster Dulles guiding US foreign policy, the diplomatic isolation of Guatemala was complete when it cajoled the other members of the Organisation of American States (OAS) into accepting its anti-communist resolution in the region at the Caracas meeting early in 1954. The US, with assistance from the UK, also blocked Guatemala’s efforts to secure UN intervention against those seeking to destabilise its democracy.

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⬆️  Rebel troops attacking Guatemala City
(Source: www.latinamericanstudies.org)

End-game: The putsch and its denouement
By late 1953 Eisenhower had given the “green light” to the invasion plan that became Operation PBSUCCESS in 1954. The US propaganda campaign intensified a few months later with saturation airdrops of anti-Árbenz leaflets across the country. Concurrently, the US Embassy in Guatemala City employed  blocking equipment to jam the government’s official wireless channels and replace it with misinformation discrediting the Árbenz regime (Bowen). The CIA chose a renegade, expat Guatemalan officer on the outer with Árbenz to lead the coup attempt. From Honduras, Colonel Castillo Armas, with a small force of Guatemalan exiles and mercenaries and financed largely by the CIA, invaded the country. At first repulsed by Árbenz’s troops, the rebels fortunes turned around after Peurifoy persuaded JF Dulles to provided them with air cover. US-piloted planes duly strafed Guatemala City and other towns. American intimidation and terror had a telling psychological effect on the population. Guatemalan army commanders, fearful of a full US military intervention, defected from Árbenz, and refused to allow the president to arm the peasant militia to resist the invaders, this prompted a demoralised Árbenz to resign his office in June 1954 and seek asylum in the Mexican Embassy. After some jockeying for power within the country’s military junta Castillo Armas emerged as the new (US recognised) national leader, hurling Guatemala once again into the void of a crippling military dictatorship [RABE, STEPHEN G. “The U.S. Intervention in Guatemala: The Documentary Record.” Diplomatic History 28, no. 5 (2004): 785-90. Accessed July 30, 2020.www.jstor.org/stable/24914824.]

⬇️ Mexican artist Diego Rivera’s graphic take on the Guatemalan putsch   

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forcing it to seek arms from Czechoslovakia, allowing the US to fling further mud, characterising it as an evidence of Árbenz’s ongoing collusion with communism

 revealingly, the New York Times at the time described Peurifoy as “a man of action rather than a diplomat”, The New York Times, 18-July-1954

as Moye has noted, the Guatemala crisis provided a convenient and fairly easy way for the Eisenhower administration to demonstrate its promised “victory over communism”  [MOYE, LAURA. “The United States Intervention in Guatemala.” International Social Science Review 73, no. 1/2 (1998): 44-52. Accessed July 31, 2020. www.jstor.og/stable/23883544/].

a foreign policy position of the US, first enunciated in 1823, warning off European powers from interfering with the governance of existing countries on the American continent

𝄪  at the time of Guatemala’s to transition to a democratic state, the US accounted for 77% of its exports of 65% of its imports. UFCo functioned in Guatemala (and elsewhere in the region) as a “state within a state”, controlling 42% of the Guatemalan land and benefitting from light tax and import duty burdens [‘Background on the Guatemalan Coup of 1954’, www.umbc.edu/].

Marks offers a contrary view, that the Árbenz government did pose a genuine communist threat, had a tendency towards authoritarianism itself and that the president had lost the confidence of the majority of Guatemalans by 1954 [MARKS, FREDERICK W. “The CIA and Castillo Armas in Guatemala, 1954: New Clues to an Old Puzzle.” Diplomatic History 14, no. 1 (1990): 67-86. Accessed July 30, 2020. www.jstor.org/stable/24912032]. Although Rabe et al have countered that Marks’ conclusions rely on early State Department documents that have been discredited

 Getchell contends that in fact the USSR were “unwilling to prop up what they considered a bourgeois-democratic revolution” [‘Revisiting the 1954 Coup in Guatemala: The Soviet Union, the United Nations, and “Hemispheric Solidarity”’, (Michelle Denise Getchell), Journal of Cold War Studies, 17(2):73-102. April 2015. DOI: 10.1162/JCWS a 00549]