Conception
The idea of the Palace started from a discussion in 1900 between the Russian diplomat Friedrich Martens and the US diplomat Andrew White, over providing a home for the Permanent Court of Arbitration (PCA), which was established through the first Hague Peace Conference in 1899. White contacted his friend the philanthropist Andrew Carnegie about this idea. Carnegie had his reservations, and at first was only interested in donating money for the establishment of a Library of International Law. White however was able to convince Carnegie, and in 1903 Carnegie agreed to donate the US$1.5 million ($40,000,000, adjusted for inflation) needed for a Peace Temple that would house the PCA as well as to endow it with a library of international law.
At first Carnegie simply wanted to donate the money directly to the Dutch Queen, Wilhelmina of the Netherlands for the building of the palace, but legal problems prohibited this, and in November 1903 the Carnegie Stichting was founded to manage the construction, ownership, and maintenance of the Palace. This foundation is still responsible for these issues at present.
Read more about this topic: Peace Palace
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