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

.

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.

█ █

🅰 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’

[S̲̅][h̲̅][q̲̅][i̲̅][p̲̅][ë̲̅][r̲̅][i̲̅][s̲̅][ë̲̅]

GANEFO 1963, the Newly Emerging and Transient Alternative ‘Olympics’

International Relations, Politics, Regional History, Regional politics, Sports history

Currently we are watching, from a distance on television, the Olympics from Tokyo. This is the second time Tokyo has held the Olympic Games, although it is the third time that city has been awarded the Games{a}. The previous time Tokyo hosted the Olympics, 1964, Indonesia, North Korea and the People’s Republic of China, all boycotted the world’s premier sporting event{b}. This disharmonious development within the Olympic community had its origin in the 1962 Asian Games, host Indonesia refused entry to Taiwan (in deference to mainland China) and Israel (to appease Muslim Arab states).

GANEFO opening ceremony, 1963 (Photo from Amanda Shuman’s collection, published in Journal of Sport History)

Mixing sport and politics
The IOC criticised Indonesia for politicising the 1962 Asian Games, but it’s president, Sukarno, far from contrite, was emboldened to go further in his defiance of the IOC. Sukarno, determined that Indonesia plays a leadership role in the Non-Aligned Movement, enlisted sport in the task of furthering “the politics of anti-imperialism and anti-colonialism”. Sukarno set up GANEFO or the Games of the New Emerging Forces…an alternative Olympics-style event held in 1963 in Djakarta, complete with opening ceremony, giant torch, etc. Like his PRC counterpart Mao Zedong, Sukarno deliberately used sports “to display international prowess” which in turn was meant “to enhance global stature”{c}(Webster, David. “Sports as Third World Nationalism: The Games of the New Emerging Forces and Indonesia’s Systemic Challenge under Sukarno.” The Journal of American-East Asian Relations 23, no. 4 (2016): 395-406. Accessed August 1, 2021. https://www.jstor.org/stable/26549192). GANEFO represented “a Sino-Indonesian-sponsored challenge to the International Olympic Committee’s dominance in sport that also attempted to solidify China’s geopolitical position as a Third World leader“, Shuman, Amanda. “Elite Competitive Sport in the People’s Republic of China 1958–1966: The Games of the New Emerging Forces (GANEFO).” Journal of Sport History 40, no. 2 (2013): 258-283. muse.jhu.edu/article/525098.

Pres. Sukarno (Image: globalsecurity.org)

The IOC was hostile to what it viewed as a challenge to its rules and authority, Djakarta’s breach of the Olympic ideal that sport and politics should remain separate. Sukarno responded by calling out the IOC for hypocrisy, pointing out that the IOC by ejecting the Asian communist countries of PR China and North Korea from the Olympics fold, itself was playing politics. In the prevailing Cold War climate Sukarno characterised Brundage’s organisation as “a tool of imperialists and colonialists”. Predictably, the US and the Western media labelled GANEFO as a ‘Red’ event, citing Sukarno’s links to the Indonesian Communist Party (PKI) and communist China’s weighty involvement in the games as well as the USSR and Eastern Bloc’s participation (‘A Third World Olympics: Sport, Politics and the Developing World in the 1963 Games of the New Emerging Forces (GANEFO), Russell Field, Verso, 09-Aug-2016, www.versobooks.com).

“Onward, no retreat”, GANEFO motto

The establishment strikes back
In IOC chief Avery Brundage’s mind it was more than just a case of defending the ‘official’ games as the IOC’s proprietorial brand, his purpose in trying to deflect the challenge from emerging Third World leaders like Sukarno has been seen as an attempt to “buttress the Olympic movement as a First World institution in a rapidly decolonising world” (Field). The IOC’s retaliatory response was quick: the Indonesian Olympic Committee was turfed from the Games (communist China had already withdrawn from the IOC). Later, in 1964, the IOC readmitted Indonesia for Tokyo but decreed that individual athletes who participated in GANEFO 1963 were barred from selection for Tokyo. Sukarno rejected these conditions, demanding that “all or none” of the country’s athletes be eligible for the 1964 Games. Consequently, with the IOC and Indonesia at loggerheads, Djakarta unilaterally withdrew from Tokyo in protest (‘GANEFO I: Sports and Politics in Djakarta’, Ewa T. Pauker, Rand Paper, July 1964, www.rand.org).

Who went to GANEFO 63 and who ‘won’?
Around 2,700 athletes participated representing about 50 countries – mostly from Asia but many from Africa and the Middle East (including a team representing “Arab Palestine”, whereas Israel was again excluded); the communist eastern bloc states; South America; and curiously for an event comprising “New Emerging Powers” there were contingents from France, Italy, Finland and Netherlands (the presence of Dutch athletes in Djakarta from the ex-colonial power in the East Indies seemed baffling!). China had the biggest team and easily won the ‘unofficial’ gold medal count with 68. Olympic stadium, Djakarta (antaranews.com)

Almost all of the delegations of attending athletes were not sanctioned by their countries’ Olympics committees for fear of reprisal from the IOC. Accordingly, most of the athletes participating were “not of Olympic calibre”. It was especially tricky for the vacillating Méxicans whose participation it was feared might jeopardise México City’s bid for the 1968 Olympics. As soon as México City got the nod from the IOC, a Méxican team was hastily cobbled together to attend{d}.

Beyond GANEFO
Sukarno saw the realisation of GANEFO and the forging of close ties between Third World countries in sporting and cultural endeavours, as a pathway to something bigger than sport, an institution that might challenge the existing international order. GANEFO was meant to foreshadow the creation of CONEFO (Confederation of the New Emerging Forces), a new world body which would appeal to left-nationalist and neutralist states emerging out of colonialism. CONEFO Sukarno hoped might come to stand as an alternative, Third World-focused United Nations (Webster){e}.

Chinese ‘MO’
China played a key supporting role in getting GANEFO up in 1963. It was the principal financial backer for the event and the Djakarta games got great coverage from the Chinese state media. Like Indonesia, PRC saw good propaganda value in the games, its participation in ‘goodwill’ games purported to foster solidarity and understanding between Third World countries across the globe was intended to show it in a good light vis-á-vis the Capitalist West. Beijing was eyeing off the prospect of becoming rivals with both Washington and Moscow, it was looking for avenues to exert influence with Indonesia and the Afro-Asian world and the GANEFO opportunity nicely suited its purposes (Pauker).

 End-note: GANEFO 66 and finis
The GANEFO games were intended to be an ongoing affair but the impetus could not be maintained. A second GANEFO games had been scheduled to be held in Cairo in 1967 but were subsequently cancelled due to rising Middle East tensions. Instead, the follow-up games (“Asian GANEFO”) took place in Phnom Penh, Cambodia, in 1966, which tried with less success to replicate the original sporting event in Djakarta. Subsequently GANEFO quickly faded away. The main factors for the GANEFO games’ demise were the overthrow of its driving force President Sukarno and the steep costs of hosting the event (Russell).

◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲◰◱◲

{a} Tokyo was awarded the 1940 Olympics but was stripped of its hosting rights after Japan invaded Chinese Manchuria

{b} in addition South Africa was banned from competing due to its racialist Apartheid policy

{c} now even more important to China as their stand-out performance in the current Games in Tokyo indicates

{d} many of the European participants were from leftist student organisations and workers’ sporting clubs. Military personnel were a component of several nation‘s teams

{e} in 1965 Sukarno pulled Indonesia out of the UN