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Regulations of the economy in occupied territory

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Chapter Summary

The Hague rules and the accumulated case-law provide detailed rules specifically dealing with economic affairs. Two specific rules can be derived from the general principle of good administration of economy. First, the occupying power must not create a monetary system parallel to that established in the occupied state. Second, while there is no legal impediment to the creation of new central banks by an occupant, such banks must not serve as mere tools for perpetrating its unlawful acts. Clearly, the regulation of economy in occupied territory encompasses matters concerning investment, taxes, and property. Issues of taxes and other money contributions are discussed in the context of private property, but the complexity of these issues calls for specific treatment of public finance. Occupying powers must be cautious in executing fundamental investments likely to bring about permanent alterations in occupied territory.

Keywords: economic affairs; fundamental investments; occupied territory; public finance



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