Obligations of 'pioneer investors' explored in Sea Law Commission.

Informal consultations on fulfilment of obligations of "pioneer investors" registered under Resolution 11 of the Third UN Conference on the Law of the Sea were held during the resumed sixth session of the Preparatory Commission for the International Sea-Bed Authority and for the International Tribunal for the Law of the Sea (New York, 15 August-2 September) '

Registered in this category so far are France, India, Japan and the USSR. A special regime has been established to recognize -investments already made in exploration, research and development work relating to future sea-bed mining. Once registered, pioneer investors have certain exclusive rights to explore and mine parts of the international sea-bed area, in exchange for which they will have certain obligations, including a proposed $1 million annual fee and training personnel for the Enterprise-the sea-bed mining arm of the Authority,

The body also continued work on the rules of procedure for various organs of the Authority. Also discussed were practical arrangements for establishing the Tribunal, requirements for operating the Enterprise and elaboration of a deep-sea mining code. Measures to help developing land-based producer States adjust their economies to the possible effects of sea-bed mining were also considered.

Commission Chairman Jose' Luis Jesus of Cape Verde reported I's low, but solid progress", adding that all groups were willing to co-operate. The body will meet next in Kingston, Jamaica, from 27 February to 23 March 1989.

The Authority and the Tribunal will come into existence following the entry into force of the 1982 Sea Law Convention. As of I September 1988, there were 35 ratifications to the Convention; 60 ratifications or accessions are needed for entry into force.

A seminar held at the Commission concluded that commercial sea-bed mining may begin by the turn of the century

Investor obligations

The issues discussed with regard

to pioneer investor obligations included exploration in the area reserved for activities by the Authority; transfer of technology; funds for the Enterprise; and periodic reports and expenditures.

The Group of 77 developing nations brought up obligations concerning preservation of the marine environment and the question of compensation to the Authority if sea-bed mining areas allocated to it were of less commercial value than that given to pioneer investors.

Malaysia, on behalf of the Group of 77, reported "hardly any progress" in consultations on obligations of pioneer investors. So far, the investors had offered nothing "except a nebulous reference to providing training on an experimental basis".

France, on behalf of the investors, said the four could not accept any of the imputations of lack of good faith and delaying tactics. They continued negotiations with a positive spirit and understood the difficulties that the Group of 77 had in submitting practical proposals,

Land-based producer States

Special Commission 1, which is formulating measures to offset possible adverse effects of sea mining on the economies of countries with land-based mining industry, gave priority to the issue of compensation. Possible subsidization of sea-bed mining and how to isolate the effects of sea-bed mining from other factors affecting such economies were discussed. The body also concentrated on projection of future supply, demand and price of copper, nickel, cobalt and manganese. A World Bank expert reported on long-term projections for copper and nickel to the year 2000.

Enterprise

Special Commission 2 concentrated largely on the question of a training programme for the personnel for the Enterprise, and acquisition of technology required for effective competition with other entities. A register for possible candidates was suggested. The training, it was said, should be practical in nature and not in principle lead to the award of degrees or diplomas. The body will give priority at its next session to: the structure and organization of a nucleus Enterprise; obligations of registered pioneer investors regarding exploration and trzinsfer of technology; and training of Enterprise personnel.

Mining code

Special Commission 3, which is preparing rules, regulations and procedures for exploration and exploitation of the international sea bed, continued its discussions on rules for transfer of technology to be included in the mining code. During the session, a seminar was held on deep sea-bed mining technology, including such aspects as availability on the open market, future design and perspectives and mechanisms for transfer

Law of Sea Tribunal

Special Commission 4 continued examination of draft articles of the rules of the International Tribunal for the Law of the Sea. Agreement was reached on rules concerning prompt release of vessels and crews upon the posting of a reasonable bond or other financial security A draft protocol on privileges and immunities of the Tribunal was considered. The body agreed that informal consultations on the location of the Tribunal should continue. The Law of the Sea Convention had designated Hamburg, Federal Republic of Germany, as the seat, but questions had arisen over the fact that the Federal Republic of Germany had not yet acceded to the Convention. Next year, the Special Commission will begin a review of principles to govern relationship agreements between the Tribunal and the United Nations, the International Sea-Bed Authority, the International Court of justice and possibly other institutions.