Foreign relations of the Holy See treaties. Traditionally, an agreement on religious matters between the Holy See of the Catholic Church and a sovereign state is called a concordat. This often includes both recognition and privileges for the Catholic Church in a particular country, such as exemptions from certain legal matters and processes, issues such as taxation, as well as the right of a state to influence the selection of bishops within its territory. Foreign relations of the Holy See The Holy See has long been recognised as a subject of international law and as an active participant in international relations. One observer has said that
Foreign relations of the Holy See between countries, including a dispute between Germany and Spain over the Caroline Islands. The Lateran Treaty of 1929 and the founding of the Vatican City State was not followed by any great immediate increase in the number of states with which the Holy See had official relations. This came later, especially after the Second World War. The Holy See, as a non-state sovereign entity and full subject of international law, started establishing diplomatic relations with sovereign states in the 15th century. It had the territory of the States of the Church under its direct sovereign rule since centuries before that