ABSTRACT
In Texaco an oil concession was granted to the two American companies in 1955 under the Libyan Petroleum Law, also of 1955. The most important provisions were Clause 16, which read as follows: "The Government of Libya will take all steps necessary to ensure that the Company enjoys all the rights conferred by this Concession. The Libyan Government declined to arbitrate and, as in Texaco, the company applied to the President of the International Court of Justice for the appointment of a sole arbitrator. The Government of Libya took no part in the proceedings and in an Award delivered on April 12, 1977 the arbitrator held that the proper law of the contract was "in the first place Libyan law when consistent with international law and subsidiarily the general principles of law". In 1975 the General Assembly held another special session devoted to economic questions, and on September 16 of that year adopted unanimously Resolution 3362.
