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All Jurisprudence based

0 tracked cards Political and Public International Law

A foreign-owned corporation proposes a financial-assistance agreement for large-scale harvesting of standing timber in a State forest. It argues that Article XII, Section 2's foreign assistance provision covers every kind of natural resource because trees have commercial value. Which response is correct?

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The specific clause concerns large-scale minerals, petroleum and other mineral oils, not a blanket authorization for timber harvesting. The word financial makes every constitutional resource restriction irrelevant. The clause automatically transfers ownership of the forest to the financier. Any foreign corporation can remove State control by private contract.

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