State Contracts and State Responsibility

In an age in which trading activities of the state are increasing everywhere, in which the economic progress of underdeveloped countries has become the object of international and national concern, but in which, on the other hand, the rights and legitimate expectations of alien investors have in many countries suffered more frivolous and alarming setbacks than at any other time—in such an age the problem of the state’s international responsibility for losses arising out of contractual relations between states (or other international persons) and aliens is clearly of great actuality.