The Island of Palmas Case (Scott, Hague Court Reports 2d 83 (1932), (Perm. Ct. Arb. 1928), 2 U.N. Rep. Intl. Arb. Awards 829) was a territorial dispute over the Island of Palmas (or Miangas) between the Netherlands and the United States which was heard by the Permanent Court of Arbitration. Palmas () was declared to be a part of the Netherlands East Indies and is now part of Indonesia.
The case is one of the most influential precedents dealing with island territorial conflicts.
Background
Palmas (Miangas) is an island of little economic value or strategic location. It is 2.6 km in north–south length and 1.0 km in east–west width. It had a population of about 750 in 1932, when the case was decided. The island is located approximately 100 miles ESE of General Santos, Philippines, and 70 miles north of the Talaud Islands, the next-northernmost part of Indonesia.
In 1898, Spain ceded the Philippines to the United States in the Treaty of Paris (1898) and Palmas is located within the boundaries of that cession. In 1906, the United States discovered that the Netherlands also claimed sovereignty over the island, and the two parties agreed to submit to binding arbitration by the Permanent Court of Arbitration. On 23 January 1925, the two governments signed an agreement to that effect. Ratifications were exchanged in Washington, D.C., on 1 April 1925. The agreement was registered in League of Nations Treaty Series on 19 May 1925. The arbitrator in the case was Max Huber, a Swiss lawyer.
The question before the arbitrator was whether the Island of Palmas (Miangas) formed part of United States territory (referring to what is now the Philippines) or Dutch territory (referring to what is now Indonesia).
US arguments
Right by discovery
On 1 January 1906, General Leonard Wood, Governor of Moro Province, Philippines, visited Palmas. According to the Counter-Memorandum filed in the case by the United States, he had already visited the island in "about 1903". The report of Wood to the Military Secretary, United States Army, on 26 January 1906, and the certificate delivered on 21 January by First Lieutenant Gordon Johnston to the native interrogated by the controller of the Sangi (Sanghi) and Talauer (Talaut) Islands clearly show that the 21 January visit relates to the island in dispute. The visit led to the US statement that the Island of Palmas, undoubtedly included in the "archipelago known as the Philippine Islands," as delimited by Article III of the Treaty of Peace between the United States and Spain, also called "Treaty of Paris," and ceded in virtue of the said article to the United States, was considered by the Netherlands as forming part of the territory of its possessions in the East Indies.
The United States, as the successor to the rights of Spain over the Philippines, based its title in the first place on discovery. The existence of sovereignty thus acquired was not merely confirmed by the most reliable cartographers and authors and even by treaty, particularly the Treaty of Münster of 1648, which was agreed to by Spain and the Netherlands. According to the same argument, nothing had occurred of a nature to cause the acquired title to disappear in international law. The United States argued the latter title at the moment when Spain ceded its title to the Philippines by the Treaty of Paris in 1898. Thus, it was unnecessary to establish facts showing the actual display of sovereignty precisely over the Island of Palmas.
Principle of contiguity
The American government finally maintained that Palmas forms a geographical part of the Philippine group and is closer to the Philippines than to the Dutch East Indies. Thus, the principle of contiguity substantiated the claim that it belongs to the power with sovereignty over the Philippines.
Dutch arguments
Contesting the principle of contiguity, the Netherlands considered discovery by Spain was not proved, that the same held for any other form of acquisition, and that any such Spanish title would have been lost.
The main argument was that the Netherlands, represented by the East India Company, had possessed and exercised rights of sovereignty from 1677, or possibly from 1648. Sovereignty arose out of conventions entered into with native princes on Sangi (the main island of the Talautse Isles). to stabilize the sovereignty of the Netherlands over the territories of the princes, including Palmas (or Miangas) and this had been validated by international treaties.