Tinoco Arbitration William H. Taft, Arbitrator UK v Costa Rica

1917 The Government of Costa Rica was overthrown by Federico Tinoco, who left the country in 1919. The new government repudiated certain obligations (contracts) undertaken by Tinoco’s one towards Royal Bank of Canada and Costa Rica Petroleum Company British corporations whose shares were owned by British subjects Great Britain claimed that the property or the rights nullified must have been restored Costa Rica answered that Great Britain was stopped by the fact that it did not recognise the Tinoco government during its incumbency

Changes in the government or the internal policy of a state do not as a rule affect its position in international law… though the government changes, the nations remains, with rights and obligations unimpaired {Under} the principle of continuity of states, the state is bound by engagements entered into by governments that have ceased to exist; the restored government is generally liable for the acts of the usurper Undoubtedly recognition by other Powers is an important evidential factor in establishing proof of the existence of a government in the society of nations The non recognition by other nations of a government claiming to be a national personality, is usually appropriate evidence that it has not attained the independence and control entitling it by international law to be classed as such. But when recognition of a government is by such nations determined by inquiry, not into its de facto sovereignty and complete governmental control, but into its illegitimacy or irregularity or origin, their non recognition loses something of evidential weight