1815 Congress of Vienna, after the defeat of Napoleon, it was accorded, without Switzerland, its perpetual neutrality in her new frontiers. France would not levy customs duties upon goods crossing into Switzerland from the District of Gex. Switzerland acceded to the Declaration and the arrangements were known as the free zones. After the IWW, art 435 T. Versailles, which did not include Switzerland, said that the free zones were no longer consistent with the present conditions, and that France and Switzerland had to make an agreement to settle the status of those territories.
France wanted to abolish the free zones unilaterally.
The arbitral agreement stated that after having discussed a reached a conclusion on the issue the PCIJ would inform the parties and fix a time limit so they can settle the dispute, if failure then the PCIJ would render the award. The PCIJ after having reached the conclusion that Versailles did not abrogate the rights of Switzerland, and in the order where it was fixed the time limit discussed power ex aequo et bono