"Pioneer investor" duties; rules for sea-bed institutions considered.

How "pioneer investors" will carry out their obligations regarding seaOn bed exploration was the subject of intense discussions in the Preparatory Commission for the International Sea-Bed Authority and for the International Tribunal for the Law of the Sea at its seventh session (Kingston, 27 February-23 March). Registered as "pioneer investors" so far are France, India, japan and the USSR.

Commission Chairman Jose Luis Jesus (Cape Verde) said it was generally agreed that a group of technical experts could be assembled to formulate a plan for sea-bed exploration. Consultations on a mandate for such a group would proceed, he said.

Zambia, on behalf of the Group of 77, said the exploration plan should include cost estimates and cover all stages up to exploitation.

France, on behalf of the investors, stressed the need for compromise and the pursuit of a middle course, so that the concept of the deep sea-bed Area as the common heritage of mankind could become a tangible thing. The four investors were also willing to negotiate on all proposals concerning the discharge of their obligations. If the expert panel were mandated to prepare an exploration plan with a view to enabling the sea-bed mining Enterprise to keep pace with the pioneer investors, any suspicions would be dispelled.

In recognition of the investments that had already been made in the exploration, research and development work relating to future seabed mining, the Third UN Conference on the Law of the Sea decided, by resolution II, to establish a special regime to govern "pioneer activities" by States or entities, which would be registered as "pioneer investors" by the Preparatory Commission.

Resolution II ensures that such investors would receive mining contracts from the Authority. The special rights carry with them certain responsibilities and obligations, including a proposed $1 million annual fee, transfer of technology, and training personnel for the Enterprise-the sea-bed mining arm of the Authority.

The Commission also continued to elaborate the rules of procedure for the Sea-Bed Authority and its various organs, including a finance committee to assist in the administration of the Authority. Practical arrangements for establishing the Tribunal, rules in the mining code relating to the transfer of technology, and requirements for operating the Enterprise were other major topics discussed. Measures to assist developing land-based producer States in adjusting their economies to the possible effects of sea-bed mining were also considered.

Established in 1982, the Commission makes arrangements for the Authority and Tribunal, which are to come into existence following entry into force of the 1982 UN Convention on the Law of the Sea. As of 1 April 1989, there were 40 ratifications to the Convention; 60 ratifications or accessions are needed for entry into force.

Chairman jesus told the Commission that efforts should be made to complete its work in the summer of 1991. The main object was to ensure that the work be completed before the entry into force of the Convention. The body will meet next in New York from 14 August to 1 September.

Plenary issues

The Commission reviewed a working paper on a finance committee, to be a subsidiary organ of the Assembly and the Council, which would advise on the assessment of contributions of members, annual budgets and other financial aspects of the Authority. A proposal was made that 8 of 15 committee seats be given to States parties making the largest contributions to the budget.

The first reading of a draft headquarters agreement between the Authority and jamaica was also begun. The precise location of the headquarters in jamaica remains to be determined.

Land-based producer

States

Special Commission 1, concerned with remedial measures for possible adverse effects of sea-bed mining on the economies of developing countries with land-based mining industry, reviewed the results of the Kampala Conference on mineral resources in Africa and agreed on the need to monitor trends regarding recycling and substitution of metals, with a view to isolating the effects of sea-bed mining.

The body also discussed statistics presented by the secretariat on production, consumption, export and import of copper, nickel, cobalt and manganese.

Enterprise

Special Commission 2 concentrates on a training programme for Enterprise personnel and the structure, functions and internal procedures of the Enterprise. A set of draft guidelines for implementing a training programme was completed, for inclusion in an integrated proposal on training.

Delegations also generally agreed to design a structure for a fully functional Enterprise, taking into account that transitional arrangements for a pre-operational phase would have to be considered.

Attention was also given to the question of when to revise the current model of deep sea-bed mining and what other assumptions, besides metal prices, were critical for the economic viability of the Enterprise.

Mining code

Special Commission 3, which is preparing regulations for exploration and exploitation of the international sea-bed, completed a first reading of a working paper on the transfer of sea-bed mining technology to the Enterprise, along with draft amendments submitted by the Group of Six (Belgium, Federal Republic of Germany, Italy, japan, Netherlands and United Kingdom) and by the Group of 77.

The Group of 77 had suggested that regulations include the required transfer of technology for processing polymetallic nodules obtained from the deep sea-bed and procedures to enable developing countries to obtain necessary technology for sea-bed mining.

Sea Law Tribunal

Special Commission 4 continued examination of a draft protocol on the privileges and immunities of the International Tribunal for the Law of the Sea.

The Commission will also consider issues concerning relationship arrangements between the Tribunal and other intergovernmental organizations.