Sea-Bed Commission postpones registration of pioneer investors.

Sea-Bed Commission postpones registration 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 fifth regular session (30 March-16 April, Kingston), decided to postpone the registration of France, India, Japan and the USSR as pioneer investors under the provisions of the 1982 United Nations Convention on the Law of the Sea. That registration process of States which have devoted considerable resources to sea-bed mining technology and activities is considered a major responsibility of the Commission.

Pioneer investor status would give these States and their consortia, which are identified in the Convention, certain exclusive rights to explore and eventually mine parts of the international sea-bad area. However, they would also be required to provide training to the personnel of the mining arm of the Authority, the Enterprise, in preparation for its establishment when the Convention comes into force.

The Commission postponed election of a new Chairman until its next meeting, scheduled to be held from 27 July to 21 August in New York. Chairman Joseph Warioba, Prime Minister of the United Republic of Tanzania, told the body he would be unable to continue as its Chairman due to increasing domestic responsibilities. The African Group has nominated Jose Luis Jesus (Cape Verde) to be Mr. Warioba's successor and his candidacy was endorsed by the "Group of 77' developing countries.

The 159-member body also continued work on rules of procedure for the Assembly, Council and the other organs of the International Sea-Bed Authority, the deep sea-bed mining code, the rules of the International Tribunal for Law of the Sea and other matters related to its establishment.

Delayed applications

In a decision proposed by Acting Chairman Raban Kenouaze (Algeria), the Commission, while expressing its great concern as to the delay in submission of the revised applications of the first group of investors--France, India, Japan and the USSR--by 25 March 1987, acknowledged that substantial progress had been made and that further time was necessary to complete the discussions which had begun during the intersessional period.

The Commission extended the time for submission of revised applications by this first group to not later than one week before the Commission's summer session.

Unless the Commission decides otherwise, a group of technical experts would convene in August to examine applications and report to the 36-member General Committee, which would then decide on registration.

If the Preparatory Commission decides to defer consideration of the applications of France, Japan and the Soviet Union, the Group of Technical Experts and the General Committee shall consider the registration of the application of India, which has no conflicting claims with other applicants.

Acting Chairman Kenouaze said the procedures adopted "will not affect the priority and equal treatment of all the applicants of the first group and are without prejudice to the interests of the potential applicants'.

Brazil, on behalf of the Group of 77, stressed that there could be only one regime for sea-bed mining, and that registration of pioneer investors was in the interest of all parties concerned.

Canada, on behalf of the Group of Potential Applicants, said that although it was legitimate for the Commission to establish a fixed schedule for implementing its understanding on the registration of pioneer investors, there might be some difficulties in meeting that schedule. The Group of Potential Applicants would do everything to complete intersessional consultations in time for the decision to be implemented concerning the registration of the first group of applicants at the summer session.

Land-based producer States: Special Commission 1 is concerned with the adverse effects that sea-bed mining might have on the developing land-based producer States, and with the question of remedial measures for those whose export earnings or economies are seriously affected. The Law of the Sea Convention envisages a system of compensation or other measures of economic adjustment assistance.

Differing approaches to the question were contained in three proposals examined at the fifth session. The Group of 77 proposed the establishment of a compensation fund. The European Economic Community (EEC) said it preferred application of existing instruments to assist efforts of economic adjustment rather than creation of new instruments. The Group of Eastern European socialist countries called for bilateral agreements between developing traditional exporter States and traditional importers. Australia and Canada felt subsidized sea-bed mining would pose the greatest threat to land-based producers.

On a proposal by Zambia, the Commission called for a secretariat study of the experience of various international organizations regarding the establishment of a compensation fund or other systems of compensation, and outlining options.

Enterprise: Special Commission 2 is concerned with preparations for the early entry into effective operation of the Enterprise, and one of its priorities has been the study of training needs associated with meeting the manpower requirements of the Enterprise. Most nations felt the Commission should proceed with formulation of a training programme, and agreement was reached on the establishment of an ad hoc working group on training.

Colombia presented a model for a joint sea-bed mining venture, including an option by which pioneer investors would establish, in association with the Commission, and before the Convention enters into force, a model entity whose functions would be personnel training, transfer of technology, environmental impact studies, exploration of the first mine site and design of the Enterprise.

Mining code: Special Commission 3 on the mining code is mandated to prepare rules, regulations and procedures for exploring and exploiting the international sea-bed area. The Commission has been considering draft regulations dealing with: notification to the Authority of intentions to engage in prospecting; application for approval of a plan of work for exploration and/or exploitation of polymetallic nodules; consderation of applications; approval of the plan of work; and execution of contracts.

The Special Commission also continued examination of draft regulations dealing with the financial terms of sea-bed mining contracts. The regulations involve complex procedures for determining payments by a contractor to the Authority. The rules specify that a contractor would pay the Authority an annual fixed fee (established in the Convention at $1 million) and then a production charge based on a percentage of the market value of metals derived from the sea-bad area.

Tribunal: Special Commission 4 for the Law of the Sea Tribunal has been entrusted with making all the arrangements for the establishment of the Tribunal. The Special Commission examined issues related to a headquarters agreement and related instruments on privileges and immunities, and continued to examine revised draft rules of the Tribunal.

It was reported that divergent views continued to be held on how to deal with difficulties associated with the question of the seat of the Tribunal. The Commission agreed that the consultations should continue during the summer meeting of the Preparatory Commission.

The Tribunal's statute provides that its seat shall be in Hamburg, Federal Republic of Germany. Some delegations have expressed concern that the Federal Republic of Germany has not signed or acceded to the Convention. They have suggested that if by the time 60 States have ratified or acceded to the Convention--the number required to bring in into force--the Federal Republic of Germany were not a party to the Convention, then the Preparatory Commission should make all practical arrangements to establish the Tribunal in a State that is a party to the Convention.

Other delegations have stated it was premature to discuss alternative arrangements for the Tribunal as the Convention would not enter into force for at least another two or three years. Moreover, they stated, any change in the site of the Tribunal would mean amending the Convention, and that could be done only after the Convention came into force.

The Federal Republic of Germany has reaffirmed its interest in having the Tribunal in Hamburg, stating its willingness to erect the office building for the Tribunal at its own expense. It also has stated that it is aware that "States envisaged as sites for institutions under the Convention should be parties to the Convention . . . on its entry into force'. It hoped, however, "that the matters concerning deep-sea mining can be cleared up in such a way as to enable the Federal Republic of Germany, as well as other States with an interest in deep sea-bed mining, to become parties' before the Convention entered into force.

The Chairman said that the Group of 77 was drafting a position on the matter and would present it to the Chairman of the Preparatory Commission.

Photo: The future of the resources of the sea, made available through modern deep sea-bed mining techniques, is a major responsibility of the United Nations.