Preparatory Commission adopts 'Understanding' on obligations of pioneer investors.

Preparatory Commission adopts 'Understanding' on obligations of pioneer investors

The Preparatory Commission for the International Sea-Bed Authority and for the International Tribunal for the Law of the Sea, at its resumed eighth regular session (New York, 13-31 August), reached another milestone by adopting an Understanding on the Fulfilment of Obligations by the Registered Pioneer Investors and Their Certifying States.

The session was marked by discussions on every aspect of the Understanding that deals with the obligations undertaken by France, India, Japan and the USSR. Those four registered pioneer investors have been granted exclusive rights to explore designated areas of the international sea-bed allocated to them under the terms of resolution II of the Third UN Conference on the Law of the Sea (1973-1982).

The Understanding removed the final obstacle to implementing obligations of pioneer investors that include payment of a $1 million annual fee to the Authority, provision of training to personnel designated by the Preparatory Commission, transfer of technology to the Enterprise--the sea-bed mining arm of the Authority--and exploration of a mine site for an Enterprise operation.

China on 22 August applied for pioneer investor status, stating it had spent some $60 million on survey, research and development of deep sea-bed polymetallic module resources. The application was submitted on behalf of the China Ocean Mineral Research and Development Association, a state-owned enterprise that aims to develop an area of 300,000 square-kilometres in the Clarion-Clipperton Zone of the Pacific Ocean, an area previously found to be rich in manganese-nodule deposits. The application would be reviewed by a group of technical experts in New York in December.

Commission Chairman Jose Luis Jesus of Cape Verde said that action on both pioneer investors' obligations and China's application demonstrated that the Commission could circumvent difficulties so that the Convention could be implemented by all States. No effort should be spared in solving other difficulties, he added.

A second reading of the draft Protocol on the Authority's Privileges and Immunities was concluded at the session. The outcome of consultations on pending articles of the draft agreement between the Authority and Jamaica regarding the Authority's headquarters had been endorsed.

First readings of a draft agreement on the UN's relationship with the Authority and of a working paper on the Authority's administrative arrangements, structure and financial implications would be on the next agenda. Consultations would continue on articles of a draft Protocol on the Authority's privileges and immunities, as well as the draft headquarters agreement.

Special Commissions

Land-based producer States: The main topic of discussion in Special Commission 1 dealt with problems of land-based producer States resulting from commercial sea-bed mining. It is formulating measures to offset possible adverse effects of sea mining on the economies of countries with land-based mining industries. The question of economic relief to developing producer States was also considered.

Special Commission Chairman Hasjim Djalal of Indonesia spelled out broad potential recommendations to the Assembly, which could ultimately result in studies on how best to minimize difficulties faced by developing land-based producer States, including economic adjustment measures and a compensation fund.

Enterprise: The status and structure of the Enterprise during the period leading up to commercial sea-bed mining continued to be the focus of intensive discussions in Special Commission 2, which is concerned with preparations for the Enterprise.

Baidy Diene of Senegal, Chairman of the Ad Hoc Group on Transitional Measures, reported that agreement had been reached on an evolutionary arrangement for the Enterprise, so it could function at first at minimum cost, while preparing for expansion.

The transitional arrangements call for reporting on all developments affecting sea-bed mining, elaboration of options available to the Enterprise including possible joint ventures, studies on areas of the sea-bed reserved for the Enterprise and a managerial policy for the Enterprise. Also considered were decision-making, confidentiality, the relationship of the Enterprise to the Authority and the financing of the first mine site.

Mining code: Special Commission 3, which is charged with preparing rules and regulations for future sea-bed mining, dealt with complex issues related to the monitoring, inspection and protection of the ocean environment through certain emergency procedures.

It was not agreed yet on whether State sponsors would be given the option or the obligation of inspecting mining operations under their jurisdictions. Several delegations supported limiting the emergency powers of the Authority's Secretary-General.

An article-by-article reading of the draft rules and regulations to protect the marine environment focused on the role of inspectors in ensuring contractors' compliance with their environmental obligations, the rights of coastal States, which might be affected by sea-bed mining operations, and the question of emergency orders in the event of incidents threatening ocean ecosystems.

Sea Law Tribunal: Special Commission 4, which makes arrangements for the Sea Law Tribunal, concluded its consideration of a draft agreement on the relationship between the Tribunal and the Authority that covers a wide range of issues relating to a relationship agreement created by the Convention. Among topics under discussion were the exchange of information and documents, administrative co-operation and budgetary and financial arrangements. Also under consideration were staffing requirements, arrangements between the Tribunal and the International Court of Justice and building requirements and facilities.

Environmental concerns

A seminar focusing on every environmental aspect of sea-bed mining was held during the session. Experts from France, Japan, the USSR and the United States made presentations on the environmental impact of deep-sea mining, drawing attention to the need to proceed with caution towards full-scale commercial mining of the mineral-rich sea-bed.

The expert consensus was that it would be virtually impossible to set specific standards to protect the ocean environment from possible damage caused by sea-bed mining, because data currently available was insufficient to allow for sensible controls.