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University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

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.:

~ ~ .. TEXT OF L.78

pm XI

t&I iIIU

~

SEC'r!0U' 1. GlDBAt l'BOVISIOHS

r.:ll' :be pzopo... Ql 'bJ.. ian.

}.n;ol! 121 iiSi or Urns

.~ ~ .. - .. -- - -PROPOSED AMENDMENTS

Article 133 Use of Terms

For the purpcaes ct this Co~vencto~:.

..

<al "nI'o~,," cst&Qt all .0114, 11q\l14 or ... .oa aiDel'al n.ove •• JD...IW ill ~u k,a &~ QI' Haeacb Chi ••• ..014, iAo1u41ft4r po11ut&1Uo ao'1ul"1

(b) l'''OlU'O". vb.A I'.co.,n' tl"O:a the ~'" an nt'lT.d CO II "::U.n.rab lt •

(a; ·reso~rces· means chos~ solid, l~quid 0: s~saous minerAl resources in situ in the Aroa at ~r benea;h the sQa-bed, includin9 po11metallic nodules, fo= which rules, reciulation8 and procedures have been ad~pted,

AtUol? 1114 100M ot !bit Pan

1. ;!Lb Pan a»pU •• '0 UM ,"a.

(b) resources, when recovered from tha Area are r~terred to as "minerAls."

2. .loUvUl .. ~ 1n. ana ab&11 Ot ",".nK b:I ch. prow1eloQl ct !hl. Pan.

,. Th. requlnmenu coAoemiJl.4tpoIU ot, ad pabUoU,. ~o b. ~ven 10, ,he chAnl ~r U'~I ~t ItCp'apw:.1 oo-or4!AaU. lhovlA-l tb. lJ.aL'1 nlnnll '0 1c .nioll _1, pU'a,:ap 1, &1'1 It' tonb 1D Pan VI.

... 5~'hJ:c ill cbh arUole aftllot. ch. ,.1&1111 __ 11' 01 the 0"'.1' l1m1'. ot cb. conUnunl &helf ~ &4CoriUloe witb hn'VI or 'b. vaU41c1 01 _,",a.nh nlaUDe ~o 4.U:aUacloa becv.tla St ..... v~tll op~I1J' or a4J40~' oo ... h.

kg' .$tt!l'!I'tbl'!upo-j M'P' vat,r. fD4 .lr 'reel

JeL:b.r ,au. hn ftol" uq I"ttb'. ll'an,.11 or ,z'1'01 .. i pu"1QU)' thn.co .bal. attic! 'b. lIpl lS.tUl -:.t Ch. va"" l"ptrj..,lQ! '0 'b •• \roa ~r ell., ot 'h. aU 'paG' abo.,. tbo •• v .... r ••

.. .. .... ~ -., .....

L.78 AS IT WOULD READ WITH US AMENDMENTS

Part XI

THE AREA

SECTION I. GEtltRAL PROVISIONS

Arti.:le 113 (Jae of 'forms

\ ". '" ~ '\ f.

For che purpo$~ of Chis Parta

C~) ·resoarc~s~ ~~ans those solid, liq~id or l~seous m!ner~l resources in situ in the Area at ~: beneath :he sea-bed, incl~din9 polymet~l:rc noaule~ il)r which rules, re9ul~:ion. and proceJuraa nave beon aJopted1

(bl resour;eo, wh~n recovQred trem the ~~ea, ~ro re!erru1 to ~s ·minar~ls.~

Articlo 134 Scope ot thla Psrt

,. Tni. part appl~da to tho Ar.~.

2. AC:l"/lU.:S in -:hd Area .h,s11 1;111 ~ovdrn~J ~!' t!ld pr.)vi81~ns #:t thl. Part.

3. Thd roquirom"n:.1 concerntn,) c:iUPO'lt .:t. and ~1~~!lC1tj" t~,~'" ~iyen t~. tnd ~harts ~~ 11"a of ~.o~raphical c~ordLn4cQ' ,hovLnq the limit. rai"rr~d t~ In Ar:iclo 1. p~c41r4p~ 1. ar~ 10: ~cr~h 1e Part ·/1.

~. ~c);hin9 1:1 thu uticlo "H.,c:. the .eC.1blhh.-.oht ot :h~ ~·Jter hmits 0: the ,:o:1t1n~nt.:1 In .. !.f 1n 4ccor.sanc. II01C" P"rt -.'1 ';):' t~.: validity ot 4qree~onts r.14tln~ to do11=lcat1~n D.cwo~n St4t~. ~.t~ oppositQ or ad1.acene coa.el.

Art 'e" US L'~ll ,t.tu, o' t~. ,~o.rldl.('"'

Wit.,. and •• r '~IC.

N.tth,r thts 'Irt nor .n, rl,hta J,.nC,d ~r ••• r~".d ~r'u4nt th.,.t~ shall a'f,ct rn. l.,al ,t.tuS at I~ ••• t." '~PfrJ.c'n~ ;0 cne Ar •• or that of tr. •• t, SPIC' .bo" rho" .'I,r,.


. , L -~ .. -• ,.. ~

TEXT OF L.78

.Jtleh 132 5.nonl1bUlu to '9'un ; '?!:lpli!1l'i" !Ad lhbllU.., tRr lu,!G'O

~. StM < ... hrdes choU b~"u lila r".y:n.lhUUy \:'1 "n.~ SU'S I.ctJ:t'Ul,u in th~ .l:' ~ lt ·mothc.r ':nrl"d out by Stat .. l'U'U ... . ' r .t4t: ~n:()rprll .. .:II' :u.teral or j'l:'idi"CIal !=,,!'s:n .... bir.!!. ?C ..... the n.U::ml.l!ty .. : $tI.':OI Putin or Art eCC.otivoLT connoll.1i ':y ~~"!I or th:tir ~u1:lnal •• ,nul b. car:'itd. out !.n o:on!cr:dty vUh tn1l Part. Th. u .. ~. = .. pondbllJ.t:t '"PU" to 1.nhm.tlonal ,rpoiut:ior .• tor &01:1.,1Uo. 1n the ~. !ur!.,:1 o~t 'tJ .uen Or-IMh.tion,.

ii.. '.(1thou1 ."nJud.Lc. to ~h. :"11". " !.nt"nuUonal lav and. Annox I!I. uUel. ~2. ~~.I.i' : I.uud ":11 th' (clUl" ?t , StItt r&r~:Y t)r int')m.t.\.cnal 'rpnhatl:m t .) ~art'7 : ':: !.~. :-"Fondbll1U .. 'llIdtr ~hr. i'U"'!: .jull .nt.U H..PUity! Stuu Pvdll :r :...,u~atlonal orgt.nlndon. Ict!...~.f torn!".,,:, .hall bur j ? lnt .d. ,,"'n'.l l1abili!y. ;. 3 ~0I.~( i'OI.r~:r ,han not r.e<'of"'"r 'oil 11 .. '01. ! {l r l~,. eau .. d t-y troY hl1ur. t {l eo~pl1 'll ~~ :1':1, Put Q' ' ~r,on '41011 U h ... lFOn,.,r3d ·.w!.or art1el. ':.5" paraf%'aph 2 ('0), It the St,,, PU~1 :-,a. taklD all nle.nUT and appr.lp-lat. :3 .... ur .. to .. cur •• U'~"1Yo ,,:-: ~. 0I11a.r.:. 'm~'r &1"':1011 1", ~I.r&rrcr.~h 4, and. .:.nMX III, U'tloh J, ,...:a,uph ,.

,. Stat .. I'U'U" that an _lib. .. o( LDtutlaUoa&l orpn1ntlon •• :u.ll uJu approprbh CIIIUurU '0 'TUI~ th. 1aplo~:na'laa at thb &rUeh 'ILth rupeet t,)

weh arpAlsatloz:. ••

...,Ueh 149 BandU ~( IIWlnd.

1. _athi!i .. 1D th • .lna .hall, a. ,pecUloo1l1 pro"id.d far in thia I'llrt, b. curild out for th. wn.fLt cf unkind .. a whah, 1.rT"p"etiY. of ~h. ,.ap'lpn.1ctl 10eaUoD of !nu •• , vb.thn coutal or 1an4-1:)ckl4, and taltinc' !nto p&rtioclar con,U.nUoD the Lah~.tI ~d M,d. ot d'Ylbp1n, IStat .. and of p'o\'l1 .. \1\0 lIa.". Mt attlL1nld tull a4'plnd.noQ or othn .. It''~''.rn1nl .ta~u. "coanh.d by th. t1n.1hd lIaUone La &ccordanc. "Lth c..nnal bUlIIblJ' rllo111Uon 1514 (;('1) and othn "hunt C4neral ...... lIb1:r ".oll1t1oTUl.

z. Tb.. J.utilorLt,' than pro"id, tor til. ,quitablt .t',a:in, ot t!.nanel.t ani othu .eonoo.1c 'bIn.fLt. 4eriYld t1":)11 .cUYLtiu 1:1 th, u "ol& thr:nllh an;;{ .J:p:'opr1at. Nchanb", on. aon-dUcrU1n.atol"J' bali., 1a accordanc. wUh ~ich 160, pazafTaJi1, 2 (f) (i).

- - -

'I

- • - .. PROPOSED AMENDMENTS

Article l1Q Benefit of ~4nkind

-

1. .I"-ctivities in the >.rea IIhall, ~9 speciHcall'l ?rovided for in thio Part, be C'lrried out for : he bene(it ot :nankind as a whole, irrespec ti"e or the Qcogr.:tphical loc;1tion of Statu., whether cO"!Jtal or hnd-locked, and taking into particular considerat':'on the intereot a nd needs of .)evelop~nq States!. Lind at peopl etl who have not atta~ned full i:ldependence or other gelf-~ovcrning statu~ ter.ognized by the United Nations· in accordance with Genp.r!lll }.!l!l embll' =esol~ticn 1514 (x v I and other rel'lvant General ",998mbl!, resolutions .. :?"

. 2. The Author!..ty shall provide tor the equitable sharing of tinanc~31 Land other ~ conomi£7 benet its durived trom activities in th~ Area th=ough ~ny appropriate mechanism. on ", nondiscriminatory basis. in accordance with arti1ce 160, paraqr3ph 2 (t 1.

• The Transitional ?rovlsion shall also be deleted .

- - ... .. -L. 78 AS

WITH IT WOULD READ

US AMENDMENTS

Artleh 1.)9 RosPo~11bllltr to .nsur. compEl." •• ~d ll.blltr for da_agr

1. St,t(' P.rtl.s ,h~ll h.v~ th. r,,~onslbilit y to rnsur. th.t actlvltl., In the Ar.a, w~.th.r c.rrl.~ out by St.t., Pirtle" or st.t. .nt.rprl, •• or n.tur.l or jurldlc.l ptr,on, which POS,tS' the natlon.llty 0' Stues Plrtlll or '1" .tftctlv.ly eO"ltroll.d by th .... or th.lr nu10n.ts sh.l\ b. ur r hd out In confor .. ity wltll !hh Put. Th. s ..... respons i bility .pplt •• to I~t.rn.tlon.l org.nll.clon, ~ ~r .ctlvltl.s In til. AI", CArried out Iby luch org.nl ut tpn,.

2. Without pr.Judlc. to the rules :~ lnurn.t lon,\ l,w .nd Ann .. III~ .rtlcl. 2Z~ d''''9. Cluud by th. 1Illur. of • Stitt Puty or Int.rn.tlon,l or il.niJ ulon~:J clfr, out lu rll :;'J .. ,I~II>tlrs u ..,:!+r : .111

Part sh.lL ent.JH li,:;,lllty ; Huu P.u:I":Jr : ... :'!'r ... . t ' '!ln , t o r J! n; !): 1"::",; .cllng t~gfther .~'Ll o.,r Joi nt .nd I.w.rll li.bj:1ty. A S::C~ P~ r :y

sh.ll n:J~ hO"4, ... "r br lhbl. tel' o1 •• ugl' :.uHd Or a,.,y f.;ilur'!' t l: :c .. ~: :o' wi t h thl. p,rt ~ r , p.r, on ~ho~ It ~.' l:Jo,.,.or,~ ~ndr r ~rt :cl ! lS ~ .

p,r,gr':J~ 2(bJ , If the St.t. P,rlr '" tak.,., .ll n ~ c.,sary , ... 1 ~~~~C~ -' d te 1I"~ur.s t'J ,.C.lr, .t 'fel lv, co...,l hne. unC.r ~rt ! : l, 15], :::.J r .;, gr .l;'~ .:. , .n1 Anll'. UI, A .. tlcl' 4, p.H''lrJ:Jh 1.

]. St,Hf" ",nit' thoU .r'! ''I''~''.r. 'J' t ~ . Int~"".Jtlfl ''Ul v r'l.t n 'I, t i:ns sh.1ll t.1" l;l"oorht. ,."ur., t,) '",1,1''' :,. 1P'I,l''lf''ltttl cn II I t ' IIS

Hl ld , .. It II '"D'Cl to ,uch or1'''II"tlo" ••

Anhl. HJ 8,",ill ;)1 ",",,1",

1. _::111t1u In the A-, •• "'.l . , It u ),dl, c.ll,. ,H:)JIt! .. d ro o I" this P.rt~ b. ,.rrltd ou1 lor the b .. " .. 111 'll ... ,.,.·~o ~ •• ,,'1\.d,_ l· ·~LJ·Hti.· of t ~ . 9 .. 0~r'Dhl;.l loc.:10" ,1 \t.t.,_ .. h,th,r ;0.,1'\ or !fnJ-~O;~" ' I . .nd taklnlJ Into o.trtlcul" COfl,Ir1.r.tIQl\ lht Int""': .nd ",,1101 d.viloplng S:.t.,~

2. Th .. Authorlt,. ,h.ll pro"ldf t:l" 1P" tou1r.bl .. , ·url .. O ot """,,,,"Jl ben.tlts d.r1v.d frOIll oICtlvttln In (I'll' ~". th"('uO" ' '1 ,. ,ploIr \,o:l ri.tl ,.ech.nt, .. , 0" , ~ofl·d1Icrl.I".t,)r,. b"t •• tn .( c,)r:.,.,,' ~I : ~ .rtl:I' '60, p.r.grlph 2: (0,


TEXT OF L.78

kUelt 141

VI! 'f Ce n,a =:".'1z t, .5 ... ·4 "1

ft.. IN •• ball ~ CpeD tc :u .. ,xclu.J.'I'1¥ tor ;-u·,.hl PUZ-PC'" 11:' aU So;a.t .. , ...,.tller 00 .. 1&1 cr land-locked, without H.crt,::lnu !cr. ar.el ..,Uhout Fr'Jud1ee ':c the cth.r 1=","10.,. ot thh p"t.

~~! 1ta I1lht. anA :t !Ha e lnt.r~'S'

o( joana;, S'al"

1. "tid" •• iA tb • .,.. •• vith ,...pect to r"olU'CO 4.".U • .1.11 the An, vtUch U. aGl'O" 11mb of n.Uonal Jul'i.clieU,n, .t..U bt cc.n4ucttcl vith 4uo r"prl to the rlpt. anel laciU,aaU :.ft~erut. 'Jt &nJ ~c .. t.l Stat. lero .. lIho .. jlU'1D41:Uo~ .uch l.po.U. Ut.

2. Ccn.ult.Uoh •• lD~ludJAI I .)'.,.,~ )f r&'1:1r,noUt1ea,:.el:., ,nall be :dlnta1ft.t vi~h th. St." oone.red, '4Uh a .jew U IV"i!1r., WrJ.n8'laent st ,·.u:h r1p'l ancl lAt,~.tI. ~ '! .... vh,,.. aeU.Ubl ~n th., .. :'fl' oay r"lIul~ !II :h·, .. phUaUen ot HlOUZ'C" 11t.nc vlthUl naUonal Jurh4!cU'Jn, chI pr1'J1' ,:ont.ft' ,t "hI C"&lU! State conelmH .ball. ~ "~.

,. 'IUhel' 'h" fan nor 1117 rt.;t:u. ~.nt.·l or .x •• r:i .. cl ~UZ'su"" tn':'~:J Inall atteol thl l'il#l'l ot "loa,'al Sta'" to taJee :luch ::O .. UNe :cnd.hnf ..,t~h th.a rehyg, ;n-o.ltJ.onl ot i'a.-t I:: II ~ ~ n',!"''''' ~.,: ;r"'.vu"" ::!t!C'l'. :1' d!d:l&U §;:,a •• ~4 l=::I.1Atnt bn .. r ~.: ~n.u :ouUlne. cr rvla-:f"l ,,"~.:Jr.utll fro: ... pollau':tn ')1' ~~.ac o;hll'tOt ::II' f:"'CII ,th,,1' ".aaudcu. ,:cunenee. :~"l1t1r4 tM. :1' c~uaucl ~. a.n:t I:U.1U .. 1D thl ........

" -I

- - - - ,.. -

PROPOSED AMEND~NTS

- - ...... ......

L.78 AS IT' WOULD READ WITH US AMENDMENTS

Articl. 141 Use of the Ar ••• x1ruttvely for o'lc~ful Durpos~s

1)

Th. Ar •• sh.ll b. open to us ••• clustv.l~ for peac.rul purpos-.~ Dr .ll Stites, whether co.stal or llnd-locktd, without dfsertain.tion and without prejudtce to the oth.r provlstons 0' this Part.

Artfcl. 142 Rtghts Ind l.gttl.lt. tnterestl of cOlstal States

1. Actlvltlel In the Are., with respect to resource depostts fn the Are. which Li, .crols ltmlts of nlttonll jurlldlction ... hall b. eonduet~~ with due regard to the rfght. Ind legtttm.t. tnterests of any coastal State Ie ross who •• juriltdetton such depollts lte. ' ,

2. Consultattons, Including I s1It •• of prior notlftca: i on, s~all ~~ aafntalned with the Stat. concerned, wtt~ • view to ~votdlng Infringem •• ,: of such rtghtt .nd tnt.r.st.. In c.sel wh.r. actfvitl,s fn the Area a.y result In the •• plott.tton of resources tying within nattonal Jurisdlctton the prior cons.nt ~f the coastal Statt coneem.d Ihlll be requlr~d.

3. N.ith.r thi, Part nor .n1 rights granted or ex.rctsed pu~suant ther.t~ .h.ll .ffect the rights of cO.lt.l Stat •• to t,k. such measures con,tst.nt with the r.llv.nt provistons of Part XII I. ma1 b. necessary to prev.nt, .f~tOlt. or .It.tnlt. grlY' .nd fmefn.nt dang.r to thefr co.stltn., or r.l.ted fnt.r.sts fro. pollution or threlt th,reof or frOM oth.r haz.rdous occur,.nc.s r'lulting fro. or c.used by .n1 .ctivitte. tn the Ar •••

(


\

TEXT OF L.78

,,"'elo tn "vtn. 1C1"UUc :"OInb

1. ~.arl.l: •• d.nuth re.eareh 1D tit, k.a .hall h c:an104 oat 001\111.'17 !:r ;:oaclful ;"JrP)le. and tor tho bonlfl~ "t MMJ..'14 All a ,,'tel., In loconancI v1!h i'u't 1:0. • •

2. thl ~ut!\orU7 r'.I,)" 01l'l7 out lII&I'1co 1011ntUl0 r ... ar.h eonolrn.Jq the L .. a :l."l4 !':I MICurC", 11',4 ,"q ent.r into cODtr&ctl tor that purPOl.. thl AuthorU,. Jr.all P:OOClOU IIlIS 9nocnanp th. conduot of nar1tl1 lolln'Uh :-el.areb In ,h. Aroa, L"Id mall co-"l'IUnlto 1ft4 U ... G1naU thl ~1u1 te of lacb r ... ."eh aDd ual,Jl1e .m.n .... U.b1e. '

,. Stat .. ~1" ~ C&n7 out :taI'in' .c1entUl0 "ilarch in th. ,"I. !t.~ .. hz'tUI lhall POO::lI:U lnt.maUcn.l ,o~~nt~n In 'I&l'!n. letlatUlo'nl.arch ~ :~o .aea ~I

,.) ,arttc1",aU,. .. La Latemational Pl'OIrIlD.1 1Il4 OftOO\ll'tcSac eo-opel'aUon. In :.rAni '01lDtltl0 r.I.&reb ~ psr80nnll ot 41ftlreat oountrl'l ID4 of the Author",.,

ClI) tnl'2'!nC that ~c:r-I an'4"llop4 ~hI'oqh thl ,\uthorit,. or othlr tntemaUona1 orpnl.aUcnl .. ~pn~1ate' for thl lNnlfU ,t te •• lop!q St.t" and. ,:-c!\ncl~CloaU:r ! .... 4e.41ope4 Stat., vUh a 911V '01

(1) .tr~""h.nJftI ~h.1r re,Iar-Jm carab111tle.,

Cu.) tnlntr., tltdr peneMll M4 the penonnelof the Dt!\OI'U,. 1D the ,.srAiquI, and applioatlona of ro •• arcu,

(ll!) tonerlq ~bo '~7ftnt ot'tbl1r qualUll4 poreonnel in re'.arch 1D thl .:.r •• ,

~:) tft"oH"'~ UI .. a1ftatln, tbe relulU of .... &reb an4 ana1Jele wla ,,..Uable, 'h..-:'~ ~hl .l·.ao:horlt-I 'I' othlr IntimaUcnal ohannela .men appropriatl.

PROPOSED AMEND~ENTS L.78 AS IT WOULD READ

WITH US AMENDMENTS

Arttclt '43 ftarln •• cttntl~ic rt •• arch

1. ".rtne .cientlfic r •••• rch In the Are. Ih.ll be carrted out ,xcluslvely for pe.ceful PUrpOS.1 .nd for the bene,ft of mankind a. I

whole, In accord.nce with Part XIII.

Z. The Authority may c.rry out •• ~Ine Ictlnttflc re.earch concerntng the Are. and It I rfsource., .nd m.y .nttr Into contr.ct. for that purpo,e. The Authority shall promote and encour.ge the conduct of marfne Icientiffc r •• e.rch .nd .n.ly.II vh.n .v.il.bll.

3. St.tel D.rtl.1 may c.rry out marfn. Ictentiffc r.se.rch In th, Art., St.tt. P.rtl'l Ihlll pro.ott Intlrft,tlon.l coop.rltion In marfn, sctentlflc re •• arch in the Ar.a by: • -

(a) pnrtieipatinq in international proqrammes and enc~ura9in9 cooperation 1n marine scientific research by personnel of aifferent =ountries and of the Authority,

(b) enlurlng that programMe. art dtv.lep.d through th. Authority or oth.r tnternatlon.l organization •••• pproprlat. for th. benefft of developing Stattl .nd t.chnologl~.lly ltl. dlv.loptd St.t.1 with. view to:

(f) Itrength.nfng th.'r rtltlrch capabllitie.,

(fi) (r.ining thtfr p.rlonn.l and th. p.rlcnntl of the Authority In the technfques and appllcatlonl of res •• rch:

(flf) fOlttrlng the .mployatnt of th.fr qu.lffi.d perlonnel In r ••• arch tn the Arta.

Cc) .fftctlvlly dit.tstnattno tht r.lult. of rttt.rch Ind an.ly,f. vhen .vallable, through tht Authority or othtr inttrnatlonal cha"n&l. when appropriate.

:._..I~i:is£iiiiiit- & .- •...•. iIi---.. -illi.aJ ....... _. '-5- .••. --j- mp- 'm--J : =-- ___ LXI. __ ...

---, I University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

TEXT OF L.78

rfty,tg'U' ,::1'2109

1. Th. AuChol'ity Iball uk. "hUI'" La IGcol'CSencl with n.lI ConY.n~lelu

Ca) ~o Icqu1:o ':'JCMohcr an4 .dlnU!lc imovlteS,. r.laU:l, to laUyUl •• in ::-.. Ana, ani .

(~) ~o ;r::»u u:4 tnc,'JI'1f't chi U·lDaf.~ to 4I .. lo,s.n. Uat .. of lucb a:!1..,:,:'cC7 a.n4 l:ltr.U!la a.cvl.eS ... 0 'hat III Stat .. ParUtII ).n.fU '~tZ'.tZ'On.

2. To :h1l .n~ the 1u&1\01'15y lInel Stat .. fanl.. .hln co-opn.t, L, rr:»:.:t!.'1r ~h. t:L'U!n' =£ ,:.chnobcr an:! • .:1onUtlc lcl=vlllitC' r.lll!r..q ~, l:~~·t!.':!.: !: ~h. aro& Ie :hac o:t. t..,t.rf!'1u Id aU Jtau, Putl.u »:! !:.nlt~t Chtr'I~:,,:n. In rarUruu ":h.1' Il:all 1ft1Ua'e an4 ~=U.

fa) ~r-~ClI !:r t~. !1'A."'.lhr .,£ u:!:nclolO' :0 ~:\. Zr.corrr!JI ar.4 ~:.. !'''Id)ilU4 Statu v1th rtpd ~ a:tblUu Ln ~h. ANI, L'::l'.&~!."1f' h"~"i al!:., ~lcU1tat1ft, ~~. IC: ... .,~ th. SnU'7l'h: an4 :J! ".vQl:rtnr Stac", ~J tn. r")c. ... an: O:.~hnoloO', unl1~r tau ant :"o .. ~r.ablo t.~ aneS c.,.,4ltbr:1I

(t) ::I&'urP.. ,uJ'l:tJ,s ~e" .. --4J th. ~"Q:'MftC )1 tl:J hcl'.ncbq ,t :h'! ZnurFh. ant :hc i:'2utio t.-:hnob4:," ,t ia.~~OF1n, luto., part1:·,uU'l,;· ,:; ;M.!.U.", 'Fpt)r~':nJ.Uo. ,:, FIr''lMol ::-:~ ~ho Ent"l1'I'ta. ",4 lr::s h'lolor.1-o;f; Stateo !:r ':n1A1nf 1ft :u!:l. schac. IIIcl ~.lc,..r.Gloq an" r .. ,r ':helr t:.a!~ Far.:.:~;:.n!.:n ~ a~UdU." 1ft Chot Ar •••

.\tH.::. ;45 l;'::,pr.t1 in ;( itl ~![;r;t 'r;.;r-:r:-,.n;

'.C"'U'"J -:"IUZ'O' .~aU lMI ~uon 1D IC:~H&QCI 'dth ttll. ecn .nt"'!': '\IUh N'~C' to ac':l.lUol 1ft :h. Ana h .nJUI"O d!oc':h. F'u,=Uon fo: :ha ;:,adno ":\"~~.nc fn:. t-.ar=t1l1 ttltct. '~l:h ::q arbe l:,a a:lctl acUYlt1.J" ~: ~hll .. r:t "!~. Authoiity .han ad,pt 'PFMprhce :".&1 .. , :-.t"JhUon, 21\4 ilrocthl''' tor :'r:':n aUa.

(a) ':1:. pre.,nHoft, "4uct~:)n an4 :lcr.tnl ,C ;olhUc:a ~4 ,th.r h.:!ri. to ~~u :&1"1.'1' envL:-:n:sen" 1ftcl~ln4' tlle -:).atU:a., 1114 ~C lnUrter.ne. wUh th~ .co:cfl:.:' bal .. .,ce ." ~r.1 ::arLao .nvirorm"nt. rU':l:'llu .Uer.Hon N1n, ;.U ,., ttl nul hI' rnucU:n C:-::s ~&r:1tul. .Chot, ot .u::t aeU"lUOI 11 !rlll1-.", tr.4f1D~, 0.:1n51:n. UIF'lIl ~t ..... t., :cnltru~:lon an4 :pnaUen <;1" ::.L'~.nMCI :It Lr..taUaU:u, ;l~d1r.o. illeS ~':h.1' 'e.lcli :.!ac.4 to ,uch acU.,l:' ...

'.b) t~. iIZ"=,.cUon an4 co:aatr"ll!!.:11 ~C the utull r .. :urc .. ~! t~.a lrta IA~ :i:e ~:-.v.nH:n )f lana .. ~o ':~'" !lora 1114 !llana :t tt .• ~;\&'!r •• ~n.trcMC:lt.

prUel. ;'5 In;''jS;;i' it n':;m :,[,

'Il~tl :""r'c~ t) IC':!"U1ea In cl\of Arll, :lIe .... ::, -:"""..:.1'01 1~.111 t.a ~Ihr: ':: -I:lIU:, .I:':':l.,. ~~a:u::'I ,t "'JI\Ift Hh. h tl\J, 11:4 U'a. authcrU7 1:::1: l:l:j:t &r.;::"'Oprl&:t r.:lu, rl.tJ'.I!au:n. lilt F:::ohr .. ,:, I\!f.,":,n~ 'lxhtLr.C !r.~.r.:.::!.:n:al : .... u ~::b':':11M !on :'J,,"anf ~r."uu.

PROPOSED AMEND~ENTS L.78 AS IT WOULD:READ

WITH US AMENDMENTS Arti,l. 144

Tranlf.r of to,hnolopr

1. The Authority sh.ll t.k. m •• lurOI in ~,'ord.nce with t~ls Conve"tio~:

., to ,cQui ro technology and sc:ienttfi.: knowledge "eletlr;g t~ letiv1tl'l in :~. Ar •• ; Ind

(b) to pr'~llIou .nd ,ncourag. the transfer to devel.,ping Statn :)f such technology and IC· tnt If 1 c knolool l.dglt 10 that all St.,tes ;t .. rt los b.nefit t~.r.fro".

2. T~ this end tit. A'Jthor1l:, a"~ 3utes Olrt t.,. sholl cooperaU t:'l prolftotlnl the trln,fer of UchnQbgy clnd Icientlfic k.,owlea~e relatt"9 to activitiel in the Area so that ~h~ :n:erprile and all Statel Parties ~ay ~en~fit t,er.fro~.

s. !,rograml f-;,r the tr.nlhr ·)f ttchnulogy til tit. enterpr~se and t~ dev.lopt"g Stlttl wtth r'ilrd to .:t1vtti.1 In th. Ar.l, tncludtng inter alia, fletlltlttng the .cce" of the E"ttrpri, •• nd of dlv.lop'ng S~ :;-th. relevan: teehnc·logy, undofr fair Ind rellonsble terlls and conotti~ns.

,. .,easu .... dl rtcttd t~ward. t" .dv •• ncellent of the t.chnology IJf :he Enterprise and thl dc~ •• ttc t.:h"ology of dev,lcping States, part~:~larll by provtdtng opportunttl •• to Plr,on"el fr~. the :nterprtse and f"om :teveloptng ltate. for training in lI.rin, "I.ne. ,nd techn·~logy and for their full plrt~eipation In Ictivlt·,. In the Ir.l •

Artlcl. 14' Protection of the m~r1no environQa~t

~oC!'Slr1 m'llu~e. ,hall b. tl~en tn accordlnce with this Convention with ~'IO'Ct to .cti~'tt'l tn the A~e. ~o Inlur •• ff,'ttv. prot.ctton for the .art", envtron~.'t froll hlrmful effectl which ~ay Irile from such Icttvlti.l. To t~is end, the Authoritf shall .dopt IPproprilte rules, r.gul.:ton, and procedures for ~ !!!!t

(a) the pr~vent~o", ~tductton and co"tr~l of pollution Ind other hazard. to the .Irine .nvtrGnment, including the co •• tltre, and of tntorforence with the ecological bllance of the .ari~e environment, plrt'cullr Itt'ntion being paid to the need 'or protection from ~ar~f~l effects of luch aettvittfl al drilltng, dred~ing, •• ,avltion, disposal of waste, conltruction and ~p,rJtlon or aainten.nc. of Installattc"" Plpolines Ind other devf:~, relat,d to such actlv1t'l.

(b) the prct.etton and cons.rvatton ,f th' n.tur.l rosourc" of th,

Ar., Ind the praventton of d •• ,g. to the floI" Ind f.un. of the martne tnvirnnment.

"retell 146 Prote,tton of Human Lifa

'1ft:, respect to -"ttvtttal tn the Area, nec .... r,. menu res shafl bl~ t.ken to eneurt "'active orot.,tfon of humin ltfe. To this ~nd the Authority Ihlll ad~pt appropriate rules, regul.t'ona Jnd procedure, to ,upplacent ,.1st1 n9 tnttrn.tlonal llw a •• ~odted in r.levant treaties.

(


TEXT OF L,78 itr!1ch 147

.\i::)9".odac;in o( s'iUvlU.1f 1., ~h? .\Na 914 in ':he m1.,. an\'lrorJ:llo:;t

1. "'cU'l1U .. 1A th. 40a .ball bt c~lecl Ollt with I,acona·,l. Ilprl !,r ,,:h.r actlYlt!., 1A tho ~1n' In'ltronatr.t.

2. Stauoau:r ull =bU. wtallaUon, lIIecl for thl coftCluot of aoUylU., !.D ,h. Ana than be .. .&b~.ot to tb, tollovu. oon41UoQl'

Cal lueh iD.tallatioal thall be ,"Ote4, .l::plae.4 an4 "ao'l.4 101117 !.a acccrdaDo. w1th tilt pz'OYlllon. ,t tbs.. PIZ't &ftcl .ub3.d to nobe u4 Hl"la:llr .. a!orce4 IV' the J.utllorU,. !h. enoUon, tllplac,aet u4 l'OaOY&l of IlIcIl 1r.stalla.loQ Ihall .,. th. 11I1I3.ot of t1mel1 notifioaUon throuch ~oUc.e· to f'.ariA.rl 01' other cu,rall1 "cop1l.4 uan, of notif1catlon,

(b) .UCD WiallaUOM Iha1l not be 10cat14 vb.n th., aq oll.truct pa •• ~. t~qb •• a lL., •• of "Ual 1mpol'tan~. tor 1:lhm&U~11&l. .h1pp1q ~ in are... ~t s.."1~.n .. t1s~1 aoU"itT,

(e) .at.t)' 101lI. lhall bl .. tabU,h.d &I'Oan4 ncb s.n.tallaUoM with apFM:-rb.t:. :u.rlWlc1 to talun the .atl'1 botb of the wt&1laUon. 'hlueb •• and ot Ih1FPin,. • The ooftllp&tbn aDd locatien of ncb .ate.,. lona. shall eo. be nob .. tc (ora a b.~~ !:lp!41n, the lawful. 10C", of .hipp!Dc to pU'UculU' =arlUml Ion .. ?I na.! .. U~D alone s.n,.rnaUcU1.aea boll .. , .. •.••.• •

(4) .uch wtallaUeDl .hall be us.d Ixc1ul'1eq for peuetu1 puz'pO •• "

(.) .uob wtallaUoDi 40 not po ..... tbe .tatu ot ll1ancle. 'Ill., ban no ~errU=rla1 se .. of 'htU ow. ad theu pre •• ao. lio .. not atltot the a.lhUats.:n :£ ~hl tlrr1tor1&1 '1., tbe laolllllYI IcoDOalo lonl or the o,atiDRQ,al .bllt.

,. Oth.r aoU'ltU .. in th. lItIZ'iAe tnytrollDlnt .hall be OCMuctl' with :,u.onablt ropri lor loU'llUe. iD thl u.a.

!".:: •• ttlleU .. ~lclpat1on of 41'10l,pu. S .. , .. 1A aoUyiU .. in 'h. Az'.a .ha:'l ::. pro=~.cl .. .,.oUl0.1:" ~14.cl tor in thi. Part, hayine 4u "iU4 to th.l= s~.c1al D.IU aa4 !nhl'lltl, 1114 1A pU't:lculU' thl .peo1.1 alia. ,f thl land-boled. _rot po~apblc.l~ 41.Myantac-4 Stat •• UIOftC tlwll, In ~YOrcolD1al obstaah. 11'1I1r.1 £1'00 .. tu1l' 11IMYU,a .. ' looation. S.aolu4J.nc I'IIIIOtl"'" lro. and. aoce .. '0 &n4 tro:t ~h. ~ ...

itarticlpation

PROPOSED AMEND~NTS

Article 146 of developIno States in activities in the Area


Artt cle 147 Acccm~od.tlon of Ic:I~t:tl In t~. Ar, •• nd In th' mlr'n, env'ro~~,nt •

I. Act' lit t~u ,~ t,. \ru .".U bl c.rrt.CI :Nt "Hn rUIOt'l.ol, r'9,,·-:I for )tntr Io:':btt'u .., t" ","1", t"vtrol\lI!'''':'

~. ·Hul.,.,,,r, 1M ~"ul , ~"ItU~ltton • .IJoti f.~r :hlt ::nc.'~t ~~ .cti.·~tel in t~, Ar,. ~h.~~ 0' subj,ct to :h. 'ol\o_lno :ot'lo~tions:

(J) JUC~ ,nst.llitloni sh'll b~ .r.:t.d, ,mpl.c.d .nd r'~ovtd so\,l, tn .ceoro.nee with the prov~lton. of thts 1,rt .na subj.ct to rules Ind regul.tion •• ~oottd by the Authortty. Th •• r,c~ion, ~~pl.c,afnt .nCl rf~cv.l of such 'n.t.ll.tion. shill b. the subj.ct of tln,ly notlflc.tion through ~otic.s ~~ ".rtn.ps or other Q.n,r.lly r.cogntl,d •• ,n. of notiflc.cion;

(b> such tnsta~l.ttons s~.ll "ot b. l,clt,d vh,r. they n.y oo.cruct ~asslg. ,:~roug~ s., lan •• of lit.l leuore.nce 'or Int.rn.tion.L shtppln~ ,I' In .r'.1 of tnt,n'l fi.hln9 .ctlvtty;

(c) ,.'tty lonii ,h.ll ~e ,.t.bll,h.o .roun~ luch in.t.ll~tion. ~it~ loproprl't. ~.r~tn9s c., .nsur, ':h' 1"':1 botn 0' the tnstall.:tons t~t~seLv" .nd 0' sh'pptnq. Thl con,tgur.tlon .nd l)c.tlon ), such sa"tv IO~tS .~.ll not " ,~c~ .s to 'or •• btl: t.peCilng th, ~.wful .cc.ss ~f .ntpolng t~ p.rt1cullr ~.rttl~f lon.s or n.vig.tlon Il~ng Intern.tlonll I •• lin .. ;

Ct' such tn.tlllitions do "ot 00 ••••• th' .tltU. 0' I.l.nds. They h.v' no t.r~l:orl.l Ie' 0' tft.tr :vn, ,nJ ~h.ir or ••• nc. oo.s not ,'f~~t tne d,ll.tt.tlon of the t.r"lo,I.l Ie., lhe •• cl~ltv •• cono-te I?n, or the contlnent.l shet'.

3. Otn.~ .ct'vltt •• tn t,e ~.r'n' .nviron .. nt Ih.ll D. conduct.d with r,.sontoL. reg.rd 'Jr .ettvttl •• In the 'rel.


TEXT OF L.78

.. l:' :~,.e'. 3t .n U'cha.oloc1cal anlS hbtol'loal nat"". t:UDCl LD tb ........ J,'\c.~l !oj ;r.,.tr',,·l '1' thponi ." tn the. bandit ,I :.w1l\c1 II I vh-:h, p&I'':lc·.alar :v.pr1 lu1r.f ~dJ ~.l tbot preln,aUal dlMI .,C Ih. 3&ato :1' .lc'antr7 oC 'l'iCtA. "1' ,!it :;n~) -:! :'ll~'J.ral u'liLD. '1' ~ha Sta" :t t.lIto:-lc~ &nd areha .. obrlcal ::-!.iin.

,lr.l :!o ; 1 :

hl.=..:!el Felc.~S.;i .;: il:-:;"l:!~~ !;~o ,:::"

lctlY1tlol 1., t:~e !roc. .hAll, as ':'tc1tl::l:'~' :'=;"/1~ ,1 Ln Uo..u ;:u~t j)e :&..~!~ ~t 1.., I~C~ A :w-.nll' c.:: to !:a':el' i~oA1 ::'.:" !;) nl-;;:-::1ra :i '!a '~~!.c1 :cor.oa:.r snd ';&luced ·%o-r.b .,: Lntor.'.A";l~:\tJ. tn:1o, Uld ~, :-I":';)~" ~"'''n'.at1 ~r:c.1 c!)o<plmticn tJ-: ~o ::I'lor-sll davelo,c'.ont 0: r.ll ~~\::'t:"!III. ,a"oc1all:' the ~oyolJP1l:.: StA,t, • .:Itt: '.11 ~~ A '/iI:I ':.l ,r.,\;1.,\~1

(a) 'morl;,' I!".c! Jale .J"'~4:~or.t :r,c1 ~Ucr.al ~.a.:'ClO~~ :;! t.'\O naour:oa ot the Ar.a, lnclll!lnc tho .trlc!.O:lt ·:::r.11I:: ~ ot ac~1\'H!", 1."1 ::~O .\rCA &nil, in ~cc=:;ancI vtth I~.:r:d ,r1n:li1loa ,t c.,n"l"V'~t1:n. t~~ :"I:I:'~6:\(:O ,e ~_ .... eo •• .uy ~t.:

(11) the ':f:1.'Ullon :)t C!l,:~t1:J:J.~bl !: ::~t1:~'.-:l.;n 11\ I\::h sC1:1YUh. ccn.ilter.' sar.lc-aul;; ~'Hh crtlclol :,~ r..~:: lJIl:

(.:) puUc1p~~lcm In :ovonUCI 111 ~~ "u~llc=1~1 cr..J ".h. trUllrex' ,C 1:Ieil::cloc:r t) the :n~erpr1 •• an! ~ .. cl:,1r-6 ltatll .. ;r:d.(r. ::~ JJ~ ~.1.:1 ':r.won'!:m:

(t!) the inczuso In the .voJ.hiJ1U~ et '!hl) ~::':':lb ;::,:hc .. J !=:a the "lcurC" ,t tho ~u .. D2ecS~ in :cnjuncU:n '1'1 ":h ~:~:1.: ::,~:·.::od !r:a 'tho~ 'C~"t :0 eu.arl '''I'1'U •• ~o cor .. u:IOn ,=,' .1.Icn :1:0l':,.4'i

(,) ~,~t1:n or Juu ar.d .~1:1. :'Tl: •• :'eal:r.C'ClU.,. ~., :rr::ld~.:.n UII.I !a1: ~o oor..acaon tor CUllrala ,~w:1Il bI)~:, tr:a ~t:. rO'OI:r:eo ,t '!b • .'oI'U =d t~ ;t:8= leuze •• , aM ,r:aoUN: lcnu-~.~ )qu1l1~~!=. jO':lreor. lup~ll and ttBGnd;

(e) to'" lManei:',.: or "~1I0~un1'!1Q' t~ ~ll ::tA~.,. :':.r.! •• , iz:'olpceUvo ,t -:hl1: SOClU ar.d tC~~C 2'1~C-"" :r ':O:':=ilUW l:cc~!:n. :.: :'l.:':1:1ro.t~ in the -!n.lcp!:a:lt ,t tho r,o~l~o, ~t ~o U::I: :r.t ::=:vo:t:.:-,.: c.tM:,:1!:.:"l:n ,C aC1:1vltlel !l:. e;b, Ar.:l,

(d -;:10 :rn"oUcn .,t iOY.hpl.l'~ ::'.Un:1t1 !~:: :.c:.\'cno .1:JC-:I :n ,h.u .c~e. ~I' :n U\oU .::port ~"TJ.n:." ::o.~-;!~': tr::: a :2Ih~.:~1'n !.n ~ll ,~!~O ~r :1.., &t!act" aL. ... onl.. ,r L., .i:~' "oh:~ -:t ~;;.:.; -.!.,om1 '~'::-:C'I\'. ~o ~:\o ~:t.1n~ ~t 'uc:, :-J,)ueUOM ,%~ -= .. ~c.: "J1 :'::':s .. :!~10a 1,~ :::. :.:.:C)S, ::1 :,:::v~c1c~ 1:1 a:-;1:1. 151;

(h) t;:o :loYolop!:eM ,C thl ::-=--= nod ~~, !or '::" ~Ct,.,t!! )t ~'\c1 .. & ~rhole ; an;:

(!) -:ond!t1c:nt,t ~cco .. to -.c:'.::-;o {:t ~::. !at':~: ,t ~.l.~cl':b ::::e;)':cod ~:::I -:h. rtl')~'1 :t '!:~ .'ZtA :.;.~i !::: !~!,or.. :: :cr::.:·:l '!!!: ::'::li·.~:cJ .":::a r.1:h :.J:.I:sU. I~ .. :'l :10: :. ::ro !:.V:·;:ai:!4 -:\:.~ -:'::. :leI': :·,:·,:·.r:. ... lc ='~~':'~JJ ':, ~:'O~I t=oa .,tl' ... ~ IT.c:OI.

PROPOSED AMENDMENTS L.78 AS IT WOULD READ WITH US AMENDMENTS

Artic., 149 .rch •• oloaical Ind historical obJ.ct.

All objects of In Irch,l.ololic.l Ind hi.toric.l n.tur. found 'n the d di ol.d of for th. ~.n.f't of alnk'nd I. I

Area 'hill b. pres.rve or 'P ref.rent,.l rights of the ~hol., p.rticullr ~'9~~di~~i:: ~:!dS::t!h:fPcultur~' ~r~li", or the St.te Stlte or coluntri '! ~ 0 or 'th.' Stitt 0' "1s~oriCil IfoCJ ~rch .. olog1C1l origin. of cultur. or I,n, 0

Article 150 Policies relating to actiVIties in the Area

(d, the increase in the availabilitI of the minerals proQuced from the resources of the Area las needed in conjunct!"n with minerals producod from other source!?, to ens~re supplies to consumers of such minerals.

(e' the promotion o! :ust and stable pric6s remunerative to producers and fair to consumr.rs for minerals producr.d_both from the resources of the Area and from other sour~es, land promotin~7 in a manner that promotes lonq-term equilib~Ium between supply and demand: •

ef) the enhancing of opportunities !or ~ll States Parties, irrespective of their social and ~conomic systems or geographical location, t~ earticipate in the development of the resources ot the A~ea Land preventin~7 to prevent monopolization lofl which would p:eclude other States PartIes from carrvIn9 out actIvItIes In the A:ea:

(g' ·~he protection cf developinq countries from ad\'er5e effects on their economies or on their export earninqs resultinq trom a reduction in the price of a~ affected mineral, or in the volume of that mineral ey.?orted, to the extent that such reductions are caused by activities in the ~rea. as provided in ~r~icle 151, paragraph 2:

SECTION 3. OEVELCP"ENT OF RESO~RCES OF THE AREA

, Articl. 150 Polict.s rel.ting-to .ctivitie. tn the Are.

Activit'" in the Area .hall, as .pectficilly provld.d tn this Plrt, be c.rried out in .uch ••• nner I' to fo.ter h •• lthy develop •• nt of the world econolllY and bll.nc.d gro' .. t!t 0' inurn.tion.l trade, and to prOllate int.rn.tional cooper.tton for the ovtr.ll development of III countries, especially the dev.loptng St.t.s .nd with. view to en,ur'nga

(a) orderly and .af. d.v.lo~.ent .nd r.tional man.g ••• nt of the resource' of the Area, tncluding the .fftci.nt conduct of activiti •• in the Are. and, tn Icordl~C' with the sound principl •• of con.erv.tion, the avold.nce of unnecess.ry wI.te;

(b) the .4pln.ton of opportuniti •• for participation in .uch activities consilte~t Plrticullrly wit~ .rtlcl •• 144 .nd 148;

(c) particiPltion 'n rtv.nue. by the Authority Ind the tran.f.r of technology to the Enterprise .nd d.veloping Stlt •• a. provided for In thts Convention;

in the availabi Uty of the minerals produced h f:-~: :d, th~ incOrfeotsh: Area, to ensure supplies to consumers of sue,

the resources minerals.

i f J .t and .tlbl. pric •• r • .un.r.ttve to producer. (e) t,e proDOt onfo ~ner'l' produced both fro. th' resource. ~f

and flJr t~ con.um.r. or ~ s tn a .Inn.r thlt proDOte. lon9-~.r. th. Are •• nd fro. other sourci , eauillbrium b.tween supply Ind d.mlnd;

ttt frill Stat •• Plrtt.s, irrespective (f) the ,nhanclng of ~pportun •• 00 r. hicil loc.tion, to p.rti:tp.te

of th.ir .ocl.l and tconoeic .Yltta. irt:: lr.: to pr.v.nt .onopolll.tton 'n thl d.v.l,pdent of the r·s·toutrc·:.~tie. from clrrying out .ctt~ttl •• in which would ".clude och.r a " t'" Arta;

lie ntrl,. fro. adv.r •• eff.ct. on (9) the prl)tectlon of GIV. 00 ng ~. ruultlng fro. a rec.jc:ton in

th.ir econom'" or on th.tr ,aport e. r: ~~. volume of thlt ainet~l ~he price of .n eff.cted ~t~'::~h ::d~cttons Ir. clu.ed by .ctt~ttits i~ ~.ported, to :ht txt.nt t a 2 the Ar.a~ a. ~royld.d 'n .rtlcle 151, oar.graph I •

(") the d •• "loPlIICtnt of t,e ~Ot:l.o" h.rltlge for the ben,ftt "f lII.nk~nd IS I whole, .nd

k t for th. t~ports of ?in.r.ls (i) conditions of Ieee •• to ~.~ :.·and for t.~ort. of Co"~odttiel

produced fro. tnt rtS,ourc·l• of .:~' "o~ be Aor. hv"utlblt tha" :he IIOSt pr,duc.,d from suc" " nera I .n flvour.ble appl'.~ to taport. fro. o~htr .ource ••

(


,

TEXT OF L,78

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•• :'''.::'1::i ar. !::~t:L:l :.0::.::1 ,,:»,~t~:~ 1~ s\tl:,='Il::ar.h (:.), cO:CI::a1cl ::~:;:~~:~!::. :.'::~: ~=t; '.!' ·:.:~:;'''~:';:.m ;'.a::!\tC.,"\-: ;, M ~PFr~v'tli pl£r. at UOI:1: until ';! =: 1::'.-.':' ~\U l;::l:t.; c:: :\&~~ hc.J ':eQr. ~~'n(: :. :::c:1l:ubn authanZAUor. '1:= . :.1 ::.:. :~.:=! ~7 '~.=!::.: .:. ,.,r!:t.: ·:d:!=-~~ n:,: -: :':0 ,:;~c:. !!vo :'.1:: ,ftc: ~c 'tho ~:'.J:'':.l·l ~ ::tn,,,t:IOlS'I ,,' CI':.T':Ol':!.:al ~,~,~O;!= \:nllo~ -:1~'I 1'1&:11 :! ,,~r.: ur.lel. "10 ,.u-:~e::!.:y ::1'~SC=1~O, l!ee~3~ t'.::!::! !,:: 10:' :..::.", =~ n:,.:lo.~~ :\aylr.c ~o:ar.l ~o ~:." :::;:-::. o.nd ~d...,.:!, :: ,r:.~::o; ·:JV.2!:!'=Or.·h Ir. '::~J co;,nood:m, the .\l1tho1'lt;y l~ll: \!~,"; 2::p-::z:r1&~' ="'I'!'-:="":o.::-:,, !'!':·r..:J.r:~;.',,:a :.:: ;l::I::O~c;.,,\cc ~IUh Am:ex III, 1:'':!:: J : ~. -:!\ :~~ <,;:;l.:.!&'!!::: ::.::: '::,::1 :.\:~!: :::.:::.o:1·:n, ~~O ~por~to1' ll\All Ipec1t:r

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('b) 1h. prOChlO'itm o.iUfta ,~ Iaf "'" oC ~be In •• l'iD peri04 btc:t..mW--C viti:. -:he J'eU at the Ul'11 .. , COlllllft01a1 poduaUCD Ihall ~ t:le e\Sl of (1) aDd (U) belova

(11)

(ill)

th .. d1i' :u:moe ~et\,._ ~be u:c:,l liDe "al\:O, tcr :.mual n1ol:e1 60MU1DpUOQ, u oalcu1attd punwmt CO tb18 n'bPUocnph, tOl: the 10U l::Iaedlatel1 111'1= ~o tho :JW&Z' ot th' .uUa.t Ooa:ltl:01a1 pI:Oducclon aDd the:-= b:I:Iedlate!:, ,,:101: to tho coaunoeunt I)t tho. ~.,;ad:t per104; pltd

.1zt1 pel' oent of the c11ftennce betw_ tho tl:md ¥!" yalue. tOI: Dlote! ocmauapt;lon, ao oalculatO<l ,unuant to t.hU .t~ph, tor the 7t= t= Wlcb the pradu.oUtm :mthorlmUcm 11 :'olJlC appUtd tOl: Gn4 tile : .. u ll11D1Uatel,. Flo~ to tile rev of the tuUe., coeaerc1a1 x='!IduoUOD.

'l'=end 1!::a, "clue. U8ed tor coapuUna .~ Dla!:el ,rodU.OUOI1 ceU1:Jc punuaD; ~: tbJ..8 lU~pb IIIAll be thps. canua1 nlcl:ol oOftS\ll:l!lt1=n .,alae. Oft • Ucmd Un, coaputed duzoilla the :JWu 1ft ublcb a 1'l'04uoUcn au.thGrizat.f.Oft 18 U8Utd. 'J!be tz:onl line .~1 'be fen.tcl b:oa • ~lIlou ~oIrl'OIJ'lon ot. ~, l~ltt_ ot aotual nlcl:ol con.umpticcs

PROPOSED AMEND~NTS Article 1Sl

ProductIon polIcies

1. (a) 1Uthout pre~udice to the objecti'les L&et forth, in ·ticle 150 and for the purpose of implement1n9 the provis.ons : article lSO, subparaqraph_(q17 of deve10~ent of the resources I the Area, the Authorit1 /, actinq throuq exlstlnq forums or Ich new arranqements or agreement. as may be appropriate. in lich all interested parties, including both producer a ~nd con~ers, participate, shall take measures·necessary to promote Ie growth, efficiency and stability of markets for those Immodities produced from the resources of the Area, at prices Imunorative to producers and fair to consumers. All States lrties shall cooperate to this end. The AuthoritI7 sh~ll have ,e riqht to participate in /inI7 commodity arrangements or· freements in respect of the-production of the mInerals derived ~om ~he Area 61 the Enterorise, provIded. however, that all lterested Dart es, Inciudina all States PartIes havIng Investtnts In seabed mlnlng,'as well as those members of the CouncIl \0 are maJor oroducers and consumers of such mInerals have freed to the partIcIpatIon of the AuthorIty. lconference dealing th those commodItIes and In WhIch all Interested parties

lcludinq both producers and consumers participate. The Jthorit1 shall have the ri9ht to become a party to any such trangement or agreement resulting from such conferences as re referred to above~7

(b) The participation by the Authority in any or9ana stablished un~er the co~modit arranaements or aareements eferred to above shal e n respect of t e product on _In he Areal of t~e EnterprIse and In accOrdanc! with the rules f procedure establIshed for such orqans. /The Authority shall arrl7 In carr¥inq out ar.y obliqations arisrnq as a result of ts partIcIpation in Lunder7 such arranqements or aqreements :rn a manner which assures-a uniform and non-discriminatory ~plementation 1n respect of all production in the Area of the ,inerals concerned. In doing s07. the Authority shall act .n a manner consistent with the-terms of existinq contrscts lnd approved plan, of work of the Enterprise.

)elete paragraph (2)

)elete paragraph (l)

lelete paragraph (4)

~dd new paragraph (2)

Add new paragraph 2 as follows:

(2) (a) to implement the policies of article 1S0, paragraph (g), the Economic Planning Commission shall recommend to the Councll, in accordance with article 164. paraqraph 2(d), programs for adjustment assistance to be implemented during the fifteen-year period beginning from January 1 of the year in which the first plan of work 1s approved, funds for Which shall be drawn from the revenue. of the Authority and which ahall have priority over all other expenses of the Authority except for its administrative expenses. Such proqrams shall be made available to e1iqible developing States Parties which produce, within areas under their jurisdiction, mineral. also derived from the Area, in accordance wi~h this paragraph.


, Arttcl. ", Prcductton POllct"

. 1. (a) Without prejudlce to the objective. of d~velopment of the relourcas of the Area, the Authority .hall have :h~ right to participate in commodlty arran9~ments ')1' agreements In, respect of ._ the production of the minerals eerived from the Area bi the Enterprls~ provided however, that ,11 interested parties, including all States Parties havin9 invescnents in seabed mininq, as well a~ those ~embers of the Council who aru m~jor prcducers and consumers ot such mlnerals have agreed to the parti~ipatior. of the Authority.

(b) The participation of the Authority in an1 organs established under the cOIRmodity arrangements or agreements re~err~d to above' shall be in respect of the oroduct10n of the Enterpr~se ~n the Area and in accordance with the rules of 9rccedure establ1shec l~ such or~ar.l. In ~arryin9 out any obliqations arising as a result ?f itl participation l~ such arranCiements or a~reelrents, the Authorit1 shall 3ct in a ~ar.ner consistent with :he tetma cf existinq contracts and approv~d 91ar.s of work of :he Ent~=prise. :

(2) Ca) To t~ole.'nt t~, polt~t,. of .rtfct. ISO, DJragrlp~ (~" the Eco~o.'c Pl.n~tng CO~Mtllton Ih.ll r.conaend to the Counctt, 1n .ccord.nc. ~Ith .rttcl. 164, ~.~a9r.ph 2(J), ~rogr'~. for ,dJu.taent 1111.t,nc. t~ be f~l'.f~t'd ~u-Ing the 'If:.,n-y.,r p.rlod b'iln~lng fro. J,nu.r1 1 of tn. 1"r In whleh ~h, flrlt plln of ~ork I. ,pprov.d, fund. for whl~~ .hall b, drlvn fro. :~, r.v.nut. of the Authority Ind vnfcn Ih.ll h.vt :rlor-C1 oy.~ III othtr '.PI"'" of the Authorlt1 ,.ceQt for ttl Id.tnl,cr.Clvt ,aO'n"I. SUCh ,rogr'.1 .h.tl ~. ".01 1".Il.ol. to 'li9tblt d""l,.,119 Stat .. 'Irc t .. 4hlCII proQUc" 41thln " •• 1 under. ~h.lr :u"'d':tl~, .In,r'l, 1'10 o,rlv.d 'ro. the Ar'l, In .ccoro,nc. vlt, t,11 P'-.g-,ph.

(0) a.for. r.co .. ,nd'n1 t~.t • progr •• 0' .dJult •• ~t I"'.:,nc • b, I~l.n'nt'd pur.u'~t t~ C" r'~~"l " , dev.loOl"g St.t. '.r~/, Ch. lconoa'c 'l,nnlng C~~"'I~ .,.1. conlld.r, 'Ir.c, _heth.r •• _ port .erntng. 'ro. the "'n.· •••• "C~ .r. Ch, '~bJ,ct of the r,qu •• t con.tlt~t. , .'Jor Ih,t. 0' tft. '~r.lgn 'Ic',n, •• ,rnlng. of t~'c S~'t. ',rtr, ,nG, If 10, .h'!~tr "'b'd prOducCi~" I. "u.ln, .IJ~I. 'lc'"t fnJ~r, t~ :~o" ,.por: f.r"·~1" :" cO~"~rtnJ r~ ••• t"~'I, the Co .. ll.lon ,h'll conduce I f)'~al I~ t~o'ou,~ 'nv •• tt,lflon Mhlc~ .h.ll Include, I. ~pproorla", .~d .Ic' dv. r",td for 'COftOftt Ind ,f.I:I.nc" r •••• rch b, the :(ft, ••• lon, tn'ot"'tlo~ prOVIGtd oy offtcl.l. of the rtQ~"lt~, Stl:. ',rt, '"d, t. n,C.,.,t" conl~l. t.elon. 41th outlld, ,.p,rtl In the , •• tGI 0' Inl.rn.tlo",l tred" .'n1"" .nd ,cono.lc.. Th. r'Q~ •• tln, It.l. ',rt, ,h,tl be ,tv'n the opport~nlt1 to pr •• '"t 'Vldlrc. 0' IC •• ll,I,llII, 'or 'dJ~.t-.. nt , •• I,tanc.. Th, Co~t'.lo~ Ift.ll .Ik. Ivetl.bl. trlnlcrlpt. and oth.r docu •• nc. u"~ 'n It. ~.llb.retlon" ~nlt •• oth,rwl •• r,qu •• ted b, lh. p.r.on lupplyln, eh. 4o~u.'nl, .nd Ift'l' I"u. , dr"t report which .hall Include It. ,r.ll_ln,r, flnatn,. Conc.,ntn, th.I, f'IU'I. Th, C~.I'lton ,h.ll r.,.lv. C~nt. on thl. r,-~or~ during t~. II. -onth. 'oll,wt", It. ',.uenc,.

(c) At the cl~I' 0' Ch •• I.~nth Co ... nl ,er'Od, the Co .. I •• lon Ih,ll Con.'d,r .l' CO-•• nt, .no ,n, n,. tvldtnc, ,ubaftted ther.wltn .nd ,n.ll l'lu, • f'n.~ ,.port.


(h) l!~. ar,r.\1A1 n te CIt lAO"". ot &l. #1,:1Ml uIII4 liDe 11 loal thAn , ~" con'l ,awn C •• "_ Un. \Iud to 4'n.l'D1Ao t.."- \uantUlol "d'onol ~o in 1):.ad (11) ,hall ta.,,," 11. on. ~'tnc thNuch tho :lrl.lic&l trond 11.". at tba YUUI tor tho .tlnt )"U ot the rolO'lant 15-1.ar ~or:1:1d. :n4 !norouU14 at :; ~or cent 4MU&l.1#'. 1': '!'Yld O'J hwner ~h4t thl !'Z'Od'JotlOrl cllli"C ta':ablllh'" tor ~ :r1U' ~t ~o 1ntlrta f.d:ld = ... ., I:ot ill e,n;' CAGO l::cold tho .JUtlrenoo t. .. t\:.on n" or14:1nAl t:onll lin. "Iho tor: that :/00% aM tho orl.T...nal ':rond Un. ,&lUI C #1: tho ~"U 1.caIodlA'111 : rhr to ~hl C-:I=-I'-:I:\.:\t .,C ~ho 1AtoriD ,ar1o.l.

(e) ~I Auth~r1~1 :lIhall 1'110"'" tor !lr?t~uet1'lft ~y ~h. :l'ltor,::lal !7r tt, J.n..lt14l \ ... a 'll'.ClltU7 or 30,000 tana of n1c!:ll CrOCI t!lO Iva1lDblo ,:,cc!uetlon eeUJr,J :a.l:-llatoc: V.lZ'2U&nt ~o sulJfU'&«n!1h :b).

(d) It, p'.anuaDt to lullpan:raph (ta), the O!tln.tor'l a~l1c~\1Qft Cor on outhoriuUon 18 4r.\1e4, t1\O opento~ ~ reov.-l:.· b t!lO .\uthorh~· .\t an,y ':1r.e.

(.) AD ~,.ntor aa:r 111 ~ ~c: ,rO'luco lei. ~ ':1' up to 0 ,er cont ~or~ than thAt 1 ... 11 or annual !,r~uoti:n ot ~"ora1. r:::':1 nocl\oJ. •• l;Mc1ClI.t ln h1:a ::r-x,uctlan Ol1thori:Atlon, I'l'G'llcJtcl chat th. C'Wor-c.ll o~unt ot ,roclu~t!:n .~l :'1ct txceed ~t stocU'lOlO 111 til •• ut:-'c~h:.U.an. l.:r,: lncroul :1Wer C ilo: clnt orA IZp t., 20 per Clnt Ln ~ ,.U ~r ~. inortal. 1r. ~~. ~hlr4 c..nd ::ublOq\!ent ;; ... n CoUO".I1:"~ ~ CCCIOC'.ttl'rO :lOUD in "hlcb LnenAaol ~C\\l' 1;,.11 l)., nl.:o1:1Ated ,t1~:\ ~h. "'u~crl~, \o'(\1ch :tlJ:f r'lCl'\l~, tho :pon~.11' to '!bta!.' a 1\\iI,101COr.tuy ~ciucd::n I'Jtt'~rl:aUCft :;0 CMer ad.HUonU proc1·1:s:1oI1. '~l'l'l1catl'nl tor :\~cr. nvp1c:t:.n~U7 pr)l.il!Ct1on oiw! :,~ t&!:.):\ '':, b~' th •• \oJth~r1t;· :If'':': :.:~.r ~.l:' :(n::'!.r_; :.;:pli:tl.UCM ::r :p-,nccrtl \"'.0 l"~"o :'lot 10': re~Qi'led :c:duc:1,r. Au::~c:,~:.c.~l~1:1 :"''10 :aen :.ct'tC! 'l:::cn :.1''': ,!\~. ACCet'.l'lt ~~ '~cm :A::or. ~r ::-::ar 1!.!:31;' '::II1!can~l. ::~O ~'J':!'.;)::!::r lt~:' ~o .:.'.!'!~ b;; '::~o il'incl .. h ~C nc ~ ,:::,.c.!.n!i tho ·;:s·al ::r":':~::l ~I' u!\'e'!l ';cdar ~ ~r:)(:uct1cn llu.l~;t1cn !II :-,n:' : •• ~:: :C ~:a !.:\ccri.:: :-cr:.:J. H Jr.a.ll :'lot ",t!:r-!:. t~ 'l'O'h:ctlo:l ''!\d:~ :.." :-1:.n -:C ':2r!:, ~t t. ,:'~titi· 1n c::~c= ... r .t6,~oo ~:Ir" :1 ::.1:1:11 :,or :/OU.

(:) ~l. 1'.'118 ~t :'l':l'\lcHCIQ :t =chl1' "0",12 .uch u ~0Jl!Hl'l'. co~a1~ :a;.~1 ~~~'I'J .X"~~c~.J trXJ t.:\.: n~~'G ~~; ~I :'CG9ue<l :w'1:'UolIlt to :. ::r:d:J=~l~ a:at:;:srl:a:1o."l .hould not lie ~'Q= thul t!lCIO ~lhJ.ch ucuU 1'.&1'0 c,-:::. [lr~·.aeet td tho opontor ,rocJ\:COC: '.:.0 -:dCI'm hvo1 =C .-.1:::11 tr..a tto:.o ::.:~':'::tl purlIWl::.t ':0 0::\1. !'~r-lt. tho :.:at:urlt:" .1:.aU O~ :ablbh 1".:.10. ar.o! ~'!!,;~:J.:M ;un'.lMt to -=.ox 1::, ar.!.:lo 11, t: 1o..)lcacnt ~bo trOdden. .:t :!.b l~bpA..~llb.

,. '1.'1» .1aat!:lOrtt)' 1".All ~~ •• ttl pCftIO~ ';0 J.:\l~ ~" 1 ... 01 o£ ,~od\1c~l~r. li c:J..-:.::-~b ~ cII • .\reo, .,~ tbaA :dnenl. t:f7.J co4l11 •• , UZIllr such condit!;;,. ... _~4&;~1:rt.'l.i: I\1C:' 'Md~1 :.8 aq' \10 '·~"':rd:,t.. Ro:ulAtlona &.&J:ptocl b:' ~'lG ~"~'lJrlt)' ~1Wl' to ~. ~l.Dlcn vi:.! ~. tI11t1"'d to the l'roc~dun .ot :;1,"';.1 !;1 ut1~h •••• (mtr/ ln~o toro. ot CIA!:.~~t. to "". Ccn.,~tlcm).

.:. :':1l1JV1nC ~cOll:ltndationa ~~ Usa ColIWlCU CIG the kala ot 04Ylu !:=. o;te ::~o nar.n1nC Coaa.ll1aa. elM u.r-I.I11 ,hAll .. tabU.b a I,.t_ cC .:e::pqaot1aa 01' other mo .. un. of ocondo Adjca=a.c Aa,1etanoo 1Dcl\MS~ :c- )~-.r:1ticn '.lith .,eo1&l!:ocl o..-.no1e. and othor LntorMtlcn&l ol'CaD1~t1cnl tc u..ut ~oYllo,1aa countri •• \/blob ."'tOI' .ulc:ua t4YUIO .ttlota on tn.ll' ~lCPQ1''': t~ 01' ICoaoeUa n.u1tiaa tzooa a ro4uot1an JA tho prioa at aD att.o~,c1 cW:enl " tb ,,011De ot a1nen1 axpon04. to the attnt that web nduotl:n 11 :&".:311'1 b7 acUdtll. JA the Ana. IJI,e Authcn:lt,- CD ro~uel' Iltall 1n1t1&to .~1 .. on til. ",~111 ... ot tbo .. StAt .. uhLc:b UI U!:.lr to be ~, .ciQll.;Sl~' a.troc~e4 -dtb a vi'" to a1n1a1a1DC tholz dUtioultlo. 0IId o .. l.\Ul.': tlua 11\ ~d.lC' ooco_o a4~CDon"

P ROPOSED AMJf.;focIU~l\I·J.'::»

(b) Before recommendln9 that a pro9ram of adjus~~ent assistance be implemented pur.uant to the requost of a developin9 State Party, the Economic Plannin9 Commission shall con.ider, firlt, whether export earninqs from the minerals which sre the subject of th'l request constitute a major share of the foreiqn exchange earnln9s of that State Party, and, if 80, whether seabed production is causinq siqnificant injury to thoso export earr.inqs. In considerinq these iSlues, the Commission shall conduct a formal and thorouqh investiqation which shall include, as appropriate, and with due reqard for economy and efficiency, research by the Commission, information provided by officials of the requestinq State Party and, if necessary, consultations with outside experts in the fields of international trade, mininq, and economics. The requestinq State Party shall be qiven the opportunity to present evidence ot its e11q1-bility for adjustment assistanoe. The Commission shall make available transcripts and other documents used in its deliberations, unless otherwise requested by the person supplyinq the document, and shall issue a draft report which shall include its preliminary findinqs concerninq these lssues. The Commission shall receive comment. on th1s reFort durinq the si~ months followinq its issuance.

(c) At the close of the six-month comment period, the Commissio~ shall consider all comments and any new evidence subni~ted therewith and shall issue a final report.

;~) If the Commissicn determines in its tlnal report that e~port aarninqs from the minerals that are the subject of ;he request for adjustment ass1st~nce constitute a major share of foreiqn exchanqe earnin9s of that State ?arty, the flnal report shall also state whether the Commission has found .Iubstantial injury to the State Party caused by activities in the Area. It the Commission determines that substantial in1urv haa taken place, 1~ shall recommend to the

Council in its report, pursuant to article 164, paraqraph 2(d), a program for adjustment assistance, provided that the Commission ~inds that the State Party has shown that it has already taken steps, to alleviate its dependence on production of affected minerals and has instituted progr,ms to make use of the adjustment assistance •

(el Any program of adjustment assistance recommended by the Economic Planning Commission pursuant to article 164, paraqraph 2(d) and adopted by the Council pruBuant to article 162, paragraph 2(m), shall pro~lde that:

(i) the program shall terminate within ten years of its adoption, and

(li) at least 50 per cent of' the total amount of funds to be distributed 1n accordance with ~he proqram shall be distributed within three years of ita adoption.

..... w -_ .. ,,",~u

WITH US AMENDMENTS (~) If the Commlslton d.t.rml~'1 In its fln.l rlPort that 'a

port •• rnlngl from the mln.rll. thlt Ir. the subject of the requ'lt for adfustmtnt I.,tltane. conltlcut. I ~'Jor ,h.r. of for.lgn e.ch.ng ••• rntng. of that St.t. P.rty, the fln.l report Ihlll .llo stat. whether the Commls.ton h •• f~.nd Subltlntl.l Injury to the Stat. Party c.used by .cttvl:'" In the Arel. If tho COmG1ls~on d.terllints that SUbst.ntial Injury "u t.leen pl.ce, It shill r,colII~Int to the Council In Its rtPort, pur,u.nt to .rtlcl. 164, p.ragr.ph 2 (d), • pre;r,. 'or .dju.:.enc 11 ••• t.nc., provld.d thlt th, co.IIt.,ion 'Ind. th.t the St.te P.rty h •• shown thtt It hal tlr.ldy tak.n .tepi to tll.vl.t, ttl dependence on production of the adjustment aSI~ltanc ••

c.) 4ny progr •• of .ajultll,nt .t.t.tlnce recom~end.d by the Econo~fc Plannfng Com~f.ston pursuant to .rtf:le 164, parlgraph 2 Cd) tnd Idopted by the Council pursuant to .rtfel. 162, oar'gr.ph 2 (~),

.hlll provide thatt

(I) the progr •• sh.ll t.r~tn.te within ten y.,r, of ft. adoption; and

(1!~ ~~ least SQ per cent ot the t~tal amount of funds to be distributed shall be distributed within three years of lts adoption.


TEXT OF L.78

l. l'hII lu.thonv IlbAU .'foiel elu~UOQ 1A the ae:ci;.l. ot it. ,wIn ..,4 (-.:nc1:i.CftII. 1colw:llzla the cnDUDa ot oppoztunlUoe t= ac1:i.'flU4. 1A the .h'e:..

2. n.,.erJiol .... lpe01a1 conatdcntiOD tOI' el.,.elopiaa Stat ... · 1DOlud~ pu':lcula: cond4enUoa tOI' tlw laa4-1ocl:ed tad aeocnpbloa1l7 c1i..a.atacecl : .. ~~ ~m. lpeoUloal~ L'«cwidecl t. ID th1I ron lball be paUHed.

SuSS! ot .atPr!tiW:4 Rllol tat100

:.. lnl'f1U .. 1A the c. Iba11 be -culled. oaftlod au, u4 oODvoUed b1 ::1\1 Authods, en behalt of 1IUJdDcl ... Wole in aooal'4Q1lOI vitb tile ~cw1l10ft.1 ot ':hil a..-tiel. u uoU U oth:!., nl.,.Ult p2:cr¥lIiCM ot tb1I PaI't ad tile "l.,.=t .\r.:mr:oII8. aDd tM Mee, 'COfrollatlcu _ pnooclunl ot the ALLth=iV.

~. :.ctiYl~1e1l 1ft tho =e& .ball bll oa=ied out .. ~n=lb.d 1A ~ph ,.

Ca) b7 the :atl~l... end

(b·' 1D UIlOO1aUon ,ri.o:.b the Auto'un:1V .~, Statel Peniu CI'I' 8ta"l:ll tbUUOI, ~: :u. ~~ el' jurldlou [Ie~aou wb1cb 1I"lo.e the uUOft&u. V ot 8\0.10.. Pani'le el' Ion ·,ClIcU.,.17 'l')Zl~a1:.od b, thR 01' tholZ natlOMl1, "'*' I,oMCI'I'oc1 br .w:~ 't;";I·t, ?r an: ~~" :)t eM tonc:01Dc vh1cb ao.t. W ,,~ta pIOYUecl !n :.~:..J h=~ !.'1clu41.~ :~q m •.

,. Activitl .. in tt;, u. IbIll be oaft'ied eN! ill aooorimol vttb a tomAl uri t'en plal of wad: dAw up SO .aoodaAol vi tis Annes III mS appo'fed bJ tM CCNDcU aft" ".,.lev b7 tM Lcc:al uS taobaS.oa1 ~CCDl .. 1C1'l. III the cue at actlY1U .. 1D tile cea c&ft1ecl =, u au!hodsed bJ the AuuaC:1V b: thl IOtUi •• .pecUled ill ~pb a (b), ncb A p1.Q ot voEtc 8ball, 10 acomMO. ui~ -.z m, anlole " ~ ~ the ,=- of • conilnet. Cuob oonbaOq .,. V1'GY14. t: joint ~t. ill accczodanc. m.~ Jama m. =tlclo U.

4. 'l!w .Aaatboftt)" IhAll alfts..e twIh oenRo1 cwu aoti.'flUOI 1D til, koa e.e la llea .. 8UJ ~ uo pupo .. ot .eoua.na oaapUaDoe with the n11'faalt ~~lcu ot ~ Put and U ... .::r.r.'~10 ~elA~ tbL."'O!0. _ tile r.Jlaa, nculAtlona _:1 ~aclun. ot till !u.~QdtJ. ad tho pl&M of voJ:lc appC\°od 1D &OO==CI ui.!h pua.cnnb ,. 3""ell l'uti .. Uall AlI1I' tile Autbonq br tal:iDa aU aulun. nec .. ..ir to IDDUH ~ ooaplluo. 1D acomanOI vlth aniole 159.

5. 'lhI Authozl t:r· aha11 han thl ,,~, to t&lc. at r.nr !bI &D1 aeuun. prodcSed tel'de tbil PaI't to ON .. oOlllPUance vitb Itl tens, ms u. pertom.ulol ot the tuzaotlOM ot oOlltzOl. o.nd J:OGU1aUOIl ullcnlll to it tbo~~oJ: or unctk 1ft)" OClll1Z&et. 'abo Autllod.t:r slwl ba.,. the ri:ht to iMp"' aU lnatallaUona fA tho ~'V:\ uoeS fA oonnoot1= vtth ao\1.,I'1 •• 1A the Ana.

G • . I. oORa-ot dol' ,.aanpb , aM1l1lH'1clo t= 1I1C'.JJ:1t7 at t.aura. ° 1ccoriln;l1. U lhall :aot be ",beel, 1Nllpecc104 = t-=1natodlZ'Cept 1D aco=dacae vith .lanIx ute anlell. 1:1' an4 19 •.

PROPOSED AMEND~NTS Article 152

Exercise of power by the Authority

1. The Authority shall lavoid discrimination7 not discriminate in the exercise 01 its powers and functicni, IncludIng the granting of opportunities for activities in the J.rea.

2. Nevertheloss, special consideration for developing States Partios,including particular consideration for_the landlocked and geographically disadvantagod amon9 them, Lspeciflcally provided for in this Par~ shall be permitted, !! specifically provided for in article 140, yaragra1h 2, artIcle 143, artIcle 144, artIcle 148, art cle 15 , yara9ra1h 2: Annex iii, artIcle 9: art~cle 13, paragraph 4, art cle 15, Annex iv, artIcle 11(619), paragrap 4.

3. In the interpretation and exercise of its lowers and functIons the AuthOrltI shall at all tImes be ~u ded by tho obJectIve ot !acIlltat ng the aevelopment of t 0 resour~es of tho Area.

Article 153 System of exploratIon and exploitation

1. Activities in the Area shall be !~rganized, carried out and controllegl regUlated by the Authority on behalf of mankind as a whole in accordance with the provisions of ~his article as well as other relevant provision. of this Part and the relevant Annexes, and the rules, regulations and procedures of the Authority.

2. Activities in the Area shall be carried out as prescribed in paragraph 3,

(a) by the Enterprise, and

(b) Lrn a •• ociation with the AUthorit~7 by Ststea Farties or States Entities, or natural cr juridiczl persons ~hich ?ossess the nationality of ~tstes Parties or sre effec· tively controlled by them or tht! ~c n3th.naly, -",herl ~p,:nsored by such Statea, or ar.y group of ::he foruc;c!.'!Q · ... h.l.c!· :n~ets the requirements provided in thi3 Part lnclu~i~9 Annex Ill.


Artlcl. 152 Exercl •• of pow.r br the Autharltr

1. The ~uthorlty shill not dllcrt.lnltt In the ••• rcISI of It. powers and function., Including t~. granting at o~portunltle. for Ictlvltte. in thl Ar.,.

2. ~ev.rthll.sl, spec tal consideration for developing Stlt •• , P4rtl •• , Inclujtng particular can.lderatlan for the land-lacked and g,ographicaLly disadvantaged among thiN, .halL te per.ltt.d, at speciflcilly provided for In article 140, paragrap~ 2: arttcll 143: article 144; .rtlel, '48; artfc~. 151, plragnpt. Z; Annex In, article 9: Irtlcl. 13, parlgraph 14; Irtlcl. 15; Ann,. IV, arttcle 11 (bt" parlgr,ph 4. . ,

3. In t~. 'nterprtcatlon Ind e.ercf •• ot 'ts pOWlrs .n~ functlonl the Authority shaLL It III tl~.s bl gutd.d by th. obJecttv. of facttltltlng the develop.,nt of t"' resource. of the Arl ••

Artt~l. 151 Sr,tt. 0' .,plarlttcn .nJ '.Ollltitton

1. Activities in the Are~ s~~ll be re9ul~ted by the Authority on behalf ot m4nkind as ~ whole in ~cc~rd4nce with the ~rovl.ion. of this article as well a. oth.r r.levant provl.10ns of thi. Part and the relevant Annex.s. and the rul.s, regulations and procedure. of the Authority.

2. Activities in the Area .h~11 be c~rrled out a. prescribed in paragr~ph 31

fa) by tho Enterprise, an~

1. Activities ~n ~he Area 3hall bd c~rried out in accordance with a fornal written plan of work drawn up in accordance with An~Qx III and approved by the Technicsl S~commiasion ot /Council after review bll the Legal and fech~Ical commIssIon, in accordance with article 165, para-graph 3(9) and Annex if). In the case of act1vItIes In the ~, by Stat.s Partie. or Stat. entitl •• , or n.t~r.1 or 1urldlc.l Area carrIed o~t as Authorized by the Authority by the entities persons which po ••••• the n~tlon.11ty ?f Stat •• 'arti •• or ar. specifiod in pdragraph 2(b), suc~ a plan of work shall, in effectively control1.d by them or their natl~n.l., when .pon.orad by accordance with Annex III, article 3, be in the form of a con- such State •• or ~ny 9ro~p ot the toreq~lng whlch m'dts the require-tract. Such contrac~s may provide for joint arrangem.nts menta provided in th1. Part lncludlnq Ann •• Ill. in accordance with Annex Ill, articl. 11.

4 (a) The Authority .hall exerci.e such control over activitIii in the Area carried ou~ by the Enterprise in accordance with article 162. para ra h (2) laa) a. Is necessary or e purpose 0 secur1ng conp ance with the relevant prOVisions of this Part and the Annexes rel~ting thereto, and the rule., r,g~14tion. and procedurel of the Authority, and the planl of work approved in accord~nce with paragraph 3. (State. Parties .hall a.si.t the Authority by taking all mealure. neces.arv to en.ure such compli~nce in ~ccordanc~ with article 139~7

1. Activitie. in the Ar.a .ha11 b. carri.d out in accord.nce wlth a formal written plan of work drawn up 1n accordanc~ With Annex I!I and approveJ by the Technical Suhcommlllion, ln accordanc. with ,article 165. paragraph ](g). Such a plan ot wcrk .~.11 in accordance with Annax Ill. 4rt~clc J. ~. In the torm ot a ~ontract. ~Such contracts may provide for JOint Ir:an~ement. 1n accordance with Annex III, articl. 11.

4(~) in the

Tho Authorl.ty sholll exercu. Juch control over actl",iti ••


S The Authority, in ~he exercise of the regulatorv functio~s conterred upon It by thlB P~rt, shall have the right to take at any t~me any measures provlde~ tor under this Part to ensure compliance with its termsL, and the erformance of the tunction~ of control and re~ulat;.on ~9signed to it thereunder or ~nder 3ny contrac~7. .he

Authority ahall have the right to in.Fect all installations in the Area u.ed Lrn connection wit~ for the conduct ot activities in the Area.

6. Para~raph 6 a. in L.78

Article 155 The RevIew Conlirence

1. riftee~ years from 1 January of the year in which the earliest commercial production commences under an a~proved plan of work, t~e Assembly shall convene a conference t~r the review of t~ose provisions of this Part and the relevant Annexes which qovern the .y9te~ of exploration and exploitation of the resource~ of the Area. The Conference shall consider in detail, 1n the light of the experience acquired during that period, whether the provisions of this Psrt governing the system of explora:lon and exploitation of the reBour~es of the Area have achieved their aims in all respect. I~ inclUding Whether they have benefited mankind a' a whOle, whe£ner, during the 15 yea~ period, reserved areas have been exploited in an effective and balanced way in comparison with nonreserved areasl whether the development and use of the Area and its resources have been undertaken in such 5 manner as to foster healthy de'/elopment of the '/forld economy !and balanced growth cf international trade; whether monopolization of activities in the Area, taking into particular consideration the interests and needs of the deve~oDinq State!7.

Delete paragraph 2

Paragraph 3 as in L.l8

WJ. "J-°n Ut; AMJ:!;NDl1t;NT5

Area carried out by the Enterprise in 4ccordanco with artic~e 1~2. paragraph 2 (aa" as is neces.ary for the purpose of securin~ complian=~ with the relevant provisions .,r this Part and the Annexes relating theroto, and the rules, regulations ard procedures of the Authorit~t and the plans of work approved in ac:ordance with paragr~pb 3.

(b) Each St.t. P.rty sh.ll ••• rei.e .uch control over .ctivitie. in the Ar",c.rritd out by th't St.tt P.rty# by one of ttl St.t. Entitio. or by .ny of the .ntttt •• rlferred to 1n p.r.gr.ph Z(b), when .ponsored by th.t Stitt P.rty# .1 i. n.ce.lary for the purpose of •• curing C~~pltanco ~tth the r.l.v.nt provi.tonl of thil P.rt# thl rule.# revuletio"s .nd procedur •• of thl Authority# Ind the pl.n. of work .pprov.d in accord.nce with p.r.gr'ph 5. St.t •• Plrttes .hlll coop.r.te with the Authority in the e •• rci •• of tts functions pursu.nt to .rtiel. 162, per.IJreph Z (U.

5. Th. Authority tn the ••• rct.e of the r.gul.tory functions conf.rred upon tt by thtl P.rt, sh.ll h.v, the right to t.k, .t .ny time .ny •••• ur •• provtd.d for und.r tht. P.rt to .n.ur. Co.pltlnc. with ttl t.r~s. Th. Authortty Ih.ll havi th. right to '"IP.ct III tn.tlll.tions tn th. Ar •• uI,d for the conduct of .cttvttt •• In the Arl,.

6. A contract under p.r.grlDh 3 .h.ll provtd. for I.curtty of tlnur •• Accordtngly# tt Ih.ll not b. r.vll.d, lu,p.nded or ter.tn.t.d '.cept in .ccord.nce wtth Anne. Ill, artfcl. 11 Ind 19.

Articl. 154 p.,tQcHc r.vf."

EVlry fivi year. fro. the .ntry Into forel of tht. Conv.ntion, the A •• embly .h.ll und.rt.k •• gon,rll .nd .Ylt ••• ttc review of the Ginner In which the tnt.rnlcton.l rlgt •• of the Ar •• I.tlblf.h.d in thi' Convention h •• operated In prlctice. In the ltght of the 1.ld rlvi." th. A ••• mbly •• y .dopt, or r.eoe •• nd th.t oth.r orgln. adopt, .... ur.. In accord.nce wtth thl provtsion. Ind proceudr.1 of thll Part .nd th. Ann'.'1 r.llting ther.to which wtll l •• d to che i.prov ... nt of the op.r.tfon of the r.gl •••

Archll 155 Thl R.vlew Conf.r.nc.

1. 'fft •• n 1.ar. fro. 1 J~nu.,y of the y •• r In "hlch the .arlt •• t co •• erc1Il product ton co.menc •• und.r In approv.d plln of work, the A,seMbly shill convln. I conf.renc. for the r.vl." of tho •• provision. of th1. Plrt and the r.l,vlnt An' •••• which govern Ch •• y.c •• 01 •• plor.tlon and •• plottltlon of the r •• ourc.s of Ch. Ar... Th. Conf.r.nc. sh.ll con.ld.r In det.tl# in the If;ht of the •• .,.rlenc •• cQuir.d during that period wh.ther thl provl.lon. of thl. P,rt gov.rnlng the .yst •• of I.plorltion .nd e.;loitlt10n of the relourc., of the Ar., hlVI achl.v.d th.lr .im, in III resp.cu.

3. The Conf~renc. shill •• tlbll.h it. own rule. of procldure:

4. Flv. Y.lrs Ifter the ca..enc •• ,nt of the Rtviev Conf.r.ncl, If a rum.nt hit not ~een f.lched on the tysten of t.p,.oretion and •• phi t.tion 0: the resourci' of the Ar •• , the Confer.nci ~11 dlclde durtng the tn.utn: t Ilv~ month' by. two-third •• 'Jority of the St.te. P.rti.s to .doDt In ':bmtt to th.#St.te. Plrtt'i for rltitlcltian, lecII.lon# ~r .cceptance .uch Imend.,nt. changing or ~oQlfylng t~ •• yst ••• s it de~.r.I~~ss~o:.t'.ry Ind I proprhtt. Such I,.."dllentl Ih.ll .nt.r Into tore. or I • I. Pert ,:. twelve IIOnth, .fUr the d.:. of depot it of the In.trumenu of rltl'1c.t10n# ICcI •• ton, ~r Iccoptinci by two third. of the St~~e, P~~tl •• provided thlt III Stlte. ~.rtl.s thlt .r •.. ~trl of the Counc rlt y or .ccede to the .~endmentl.


I

2. ~I :cnt.renci 1h&l.1 tntun Uta. the prlnolpl" ot tile coaaca blr1tace .~ :.aNt!.,~. ~hl L'lt.rcatlOMl dlr1ae de.~ed ~o eMUZ't U. "'IuUablo IZlIlolbtl:.r. ~:~ !hl ~t:'I.t1t 'Jt aU ccwtn ..... peo1all7 ~. d .. lbpan. Stat .. ana CD 1Ulhcr1~,. ~, cem'Jet, orpn1a. an4 eontnl aoU.1U. .. 1D thl Ina ue adntained. It Iob&l.! ~,o ":r~' the 2lnlomanco ot the ~ct,l" laU tC'Vl'l in thl. Put vltll repd ~~ !h. Izclutlon o( clA1J:l ~ exucl.e cl .cn1:.""tr nil' ~ put of the lna, ~u r1c!tt. of Stat .. and \!Mil' aenen1 o_uo, I!s l'tlatloa to tht An_, Iftd their :- U'U:lp.lttca In exploraUon ana. a,loUaUon ot tt. n.ouzo .. Jat oClatonl tr vl th ~:".1. C::mr.tUon,. Us. ,r .. eaUOft of lICftopoU .. UOll ot actbUl .. lD tile Ana, U1. _,. :t ~I Area 1ZC~1I~.'1: Cor peac.fUl :ur,oet., toonotio atptOt. 01 lotl.ltl •• !:1 :I:e lna, .cllfttUl0 reltUd, tnMler ,r tecbnolot:'l'r pot,otlan 01 tbe IIIrlnI fl1'l!z~nt, aa4 of Iwau Wt, I'1Cbt. ot coutal State'r the lepl .tata ot tt.. ~i'u~ac~I wtln and aU .pac. ancJ Icoaa.04aUon lottwln aotlY1U •• 1D thl Ana and other lCt1Yt U.. III 1M aulft. emll'anunt.

,. 1!se Confenaol 1haU ... taWaIl it. CMl nle. ot pootdun.

•• n •• '"" attn tIM OotalDc .... ot t!M "'1_ Coatl'nDOl. s.t ..... nt ~.a. not be. n.ched ClIft tilt .,.t •• 01 -.plon.lee aDd a,loUaUcn 01 tM ~aazc .. )C thl ula, til. CoaIerlDol IIq deoUt d~ tM tlSSu1nc Ml.,t WIIl'tbI, ", a :vo-tb1r4. -Jodtr ot tbe Staw. PuUe., 10 e4op' &nil .ulld' to the Stat .. Partl .. tar ntlllcatloa, aco .. doa. _ acoeptaDot web ...m.ntt ~ __ ~ the ~t .. at it 4.ttnIJI .. aeee.1&q' mS anropftatt. !Iuob 1m""" ,ball '!'Otft IDto tan. r. aU lta_ ,ante. twetn IICIftIU alte the da .. of dePOtU -:1 ~ lntt:ruMatt of ntUlcatlon, acot .. l",. _ acceptmot b7 two tId.zod. ~t ~he. Stat" 'arU ...

,. AaeDS-.stt uO'Pte4 'r tbt CClBlennol =d_ the Pft"itlOM of tllb ~lc1e .hall 110' alted ~ .. acqulnd una_ t:d..tiDe coaftut ••

.)EC1'ICI ,. !III AU'l'!I01tr!'r

~tb..E\."~"' •. ~ p!,,,'1tslf'1I3

~l~f' !;' r ·iehU,nM ! Autmrltr

I 1. tbo":'e Mr.", ",.abU.bod tho ~'tmaUonal So&oo!lOll ~~~hor1V whioh .1:&11 r met14n tB aoeordanCt:l iii i ~ .to PI'D'Ila1one or tbU Pu-t. .

2. .".11 Stat ., :_ ~ .... _ .aft lpap hat.? aoaben ot ":1\2 .:.uttoritr.

,. !be ... t 01 : ... olutbol'l.,. .1Ial.l be at Jaaalca.

t. !:» Aut~"'l'it: ...., .• .,aa!l1Ub nob "lional oentro. "P oUlao .... it dooM ·e .. ~ :or tbl) port:.~~ .... .:.. ,I 11. tunotbn ••

PROPOSED AMEND~NTS

4. Five year. after the commencement of the Review Conference, if agreement ha. not been reached on the system of exploration and exploitation of the resources of the Area, the Conference may decide during the ensuing twelve. Months, by a twc-thirds majority of the States Parties to adopt and submit to the States Parties for ratification, accession, or acceptance .uch amendment. changing or modifying the system as it determine. necessary and appropriate. Such amendments shall enter into force for all States Parties twelve months after the date of deposit of the instruments of ratification, accession, or acceptance by two-thirds of the States Parties provided that all States Parties that are members of the CouncIl ratIfy or accede to the amendments.

s. .,.t fcll

\


A.end.tnt. 'doPt,~ ~r the Conf'~!nc. under the provi.ionl 0' .h.tl not I'·ect right. aCQu.,.,d und.~ •••• tin9 Cont~lctl.

S!crION 4. TH! AUTHORIT, S~BSE~TIO~ A. GEN!.AL PROVISIONS

Art'el. '56 :.t.blf.h~.nt of the Authority

tilts

1. Thl~e 1. hereby •• tlbl',hld the Inttrnltton.t Se.-a,d Authority which sh.ll function tn .ccoroance vlth the prov4,fonl of thil Plrt •

Z. All St.te. Plrttt •• re 'DIO !!:!! .. ~b.r. 01 the Authority.

3. The '11t of thl Author'ty ,h.ll be It Jlm.tci.

4. Thl Authortty .'1 I.t.blf.h such regton.l clntlr. or offtci' I. ' it d.tm. n.c •••• ry for the Dlrfor .. nc. of ttl 'unctto" ••


TEXT OF L.78

1. lM .i.uCt\)d Iy 11 Ii;" orpn1&aUon thz'o~ "hich n., .. Panlu .hAll erfLouze an;) e-:ntrol .oU .. , U'l' 1:l n.o .:.n., put1.:ululy ..,Ub • d.v te addni.sorin, t!;'o "'011.1"-'0' III ~h. !.....,.. 111 .ooorc:uo. vUb th!. Pvt.

l. TolQ JIO"'Il"' and tunotbD' ot chi .>aItheri ~ at'.all bol ~m.ct .JJQI'O"l:r coi1!onod '.:pon at ",. tM rol ... ut pZ'cv4doM )1 'hi. Con~ontLc:n. ':be .~tt'.cri~;,r .hall baYO :IIu:h L::cl'!:'Intu ~VJr., :oMhton~ vlela ,!., ;lrntalcft. oJt ti:.!. ConvonUJn, .. U"O 1cp1!cU 1A I0Il'S r.oCCII&I')" (:)1' ~be porl:.lrDallo. ot tta •• PO""1'1 ud Cur.cU In. vi th r08poot to • cU.,l U.,. 1.n 'flO .',rc ...

,. '!"bel ':utho:-1C7 .1 ;, .. od on t~ priaolpl: ,t the .,.,erclcr, :qu.U V ,t .:'1 .:t 1~. a.cbon.

4. All 1:It'D)on, in n"'ol' to on.uft t~ .11 :t ~hca tb.J diMe ar.~ bonot!~. renlUn, IMD D~bo~.I.!p. ,!:all lullJ.! 1.n l=~cl ldt" t! .. obUpUon •• "UOIt4 t)" U"a 1D .coord&D~ "it::. &!d., Pvt. .

- - -

PROPOSED AMENDMENTS

of the Authorit Nature and

nization through which 1. The Authority_is the o~~: contro17 regulate activi

Statel Parties .hall Lorg!nl~e with a view to admInIstering ties 1n the Area. particu a~nYaccordance with this Part. the resources 9 f the Area,

of the Authoritv ahall be 2 The powors and functions b the relevant·~rovislon.

thoso ~xpro001{1~:nte~~:dA~~~~ri~Y ~hall ~hav~ ~~~~hc~~:i-of this Conven· ith the provisions 0

dental powers, ci:psti:~~ti: and ~ecessary for th:i~~~~~~t~ce vantion, as are ti s with respect to ac of these.,owers and func l~nd or residual owers exce t the Area incidental. 1m: e' l tiona an proce ures. those spec lled In rules_ regU a

3 end 4 as 1n L.18 paragraph.

Article 158 Organa of the Authority

Paragrapha 1, Z and J ao in L.78

4. lfhe-princlpal organa and the Entorpriae7 Each thian .har~ Laecn7 be reoponaitla !or exerclsln~-/thos!)

eowera and functiona which ha·tf! oeen c~nf1:!rrea upon it Lthem7. lIn exercising such po~e=s and functions each7 NO organ shari lavoid takini7 take any action /which mayairogato7 that aerogates trom or-!mpedes the exercise of ' specific powers and functiona conferred-upon another organ.

Article 159 Composition, procedure and voting

Paragraphs 1, Z. J, 4 and ~ as in L.1B

- .. - - - - - -

~,/U ~~ ~T WUU~U ~AU WITH US AMENDMENTS

_rtielt 157 "Itur. Ind fundlmtntll principl •• of tht Authority

1. Tht Authority t. tht org.ntzltton Ihrough whtch Stlt •• Plrtf~. .hall rtgullt •• ctivitit' in th. Ar •• , Plrttcullrly wtth a vitw to .d.tnhter1ng the rflour,: .. of the Ar .. , fn accordanct wtth th" ?art.

2. Tht power. ~nd function, of the Authortty shill b. those .xpr.slly conferr.d upon "t b1 the r.l.vlnt provi.'on. of thi. Convtntion. Th~ Authortty sh.ll not havt incidtntll, implttd or r.stdull powtrl, t.c.pt those sptctft.d tn rul •• , rtgulltton. Ind procedur,s •

3. Th, Authortty t. bl.ed on the prtncipl. 0' the .ov,retgn equality of .ll of ttl m~mb.r ••

4. All .,~,rs, tn ord.r to ,n.ur. to III of th •• the right. Ind bentftt. resulttng fro •• e~'r.htp, .hlll fulftll tn good fltth the obltglttons ,ssu~.d by th.~ tn Iccordanc. with th'l Plrt.

Arttcl' 15S Or9,n. of tht Authoritz

1. Th.r, Ir. h.reby .It.bli.htd"I' tht princtpil organ. of th, Authority, In A •• '~Ly, I Counctl .nd I S.er,tlrtlt.

Z. Th.r. t. h.reby •• tlblt.hd t~. !nt.rprt.e, th' Orian through which the Authortty .hlll 'IrrY out tht function. r,forred to 'n Irtlcle 170, Plrlgraph 1.

1. Such .ubltdiary orglnl I. ~IY be found n.e •••• ry ml, b. 'It.blished In Iccordlnc. wtth tht. Plrt.

4. Elch orein Ihlll b. r •• pon.tbl. for •• tre •• tng th' po~ers Ind 'unction, which h.~. be,n conf'rred upon tt. No orgln'shllL take I"Y Ictton thlt derogat.1 fro. or tmped,s the e.eret,. of IPect,tc pawers .nd functionl conf.rred upon Inoth,r org'n.

SUBSECTION I. THI A.SeftBLY

Arttcl, 159 Co~o.ittonc proc.dur. and vat in,

t. Th. AS't~ly .hlll conlt.t of 'll th' .. Mb.rl 0' the Authortty.

2. Th. A.s.ebLy Ihlll .,tt in r.gular •••• ton .v." y.,r Ind In .uch IPtctll .tt.ton. a •• ,, b. d.ter.tntd by the A ••• ~ly, or c~v.ntd bt the Stcretlry G.n.rll It the r'Qu •• t of the Councilor of I .'Jorttr of th, ... ber. of the A ••• .Dly.

3. S ••• ton •• h,lL tlk, plle. It the S"t of the Author'ty unL •• s oth.rwt •• d,t.r.tntd br the ••••• lby. At .uch •••• ton., .,eh ••• b., 'hill hlv, on. r.pr,.,ntlttv, who .,, b. acco~'nt,d by alt"nlt'l Ind .dvt,.rl.

4. Th, A •• tmbl, .hlll adopt ttl own rult. of proc.dur". It .hlll ellct ftl Pr •• td.nt Ind such oth.r of,tc.r. I ... , bt r.qutr,d, It the btg'nntng of tach r.gullr •••• ton. fh., shill hold offte. unctl the new pr •• tdtnt .nd oth,r offtc.r. ,r, .l,et.d It the n •• t r.gul.r •••• ton.

,. E.ch •• ~,r 0' th' A"t~l, .hlll hlv, on. vot ••

- - .. - - .... University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

,

TEXT OF L.78 0, ~1 4001.10n. "a quo.tiOni of nbltUlOI lla11 bo t..an bJ a two-ebJ.~.

':".l.J'rit)" ot 'b~ aoabezoa ~IC/ut am \OOt1.'1I, pzo'flbcl tlat noh caJorit)P iDoluJu s~ ~l .. t =l :zaJoriCT ot tho cocben puUo1patiq 1D tbat 10 .. J.en cl tho :"lecbl.T. ;rr):I ~I'.o lu", ari ... AI to _tbell' tbel (\IO.tloa 11 ODO ot nb.t_oo 01' _t. tho quonl'B .t-.al! b:l tN.tM U oa. ot .Nb.tanc. ualo .. othoM" 40olc104 by tha L1.oablT bl' tt&b :;&j:ll'itJ' "Cl\&1n4 1,,1' quo.tiona ot tub.tanN,

7. 1)0011100 on q'Jo.U01l. ot pJ'Oo04un. 1aol~ tho '400111011 to oon.,~ao .. "!IOci .. l losaloa ot tho J..J.Ot:lblT •• halllHl aa.:. bJ & ~ori'" 01 tho "proton'aUY.:. :r.:'OUftt UId YoU",.

a. \IbIn a caU.,. of IUb.1:uaco ocaCi up tOI' m1111 lo~ tt. 1m. Uao, t:. ::oac1:iont aq, .ad .tall. it I'Oquo.ta4 V at 10&1t ')ftO IUt:. ot tho D3cbo~. 'l -:ho ,:S30abl:r. 40fti' ':1'.0 quo.tioa ,I t~ & YOh 011 suoh 'aatt.1' 101' a period _I ·,xcGldJ.ntT :1\'0 :alondazt ~" 'fhl. nle :Iq bo appUe4 oalT onoo aD tllo aaft,l'. u.l .!',4:'1 nl)t :0 ailPUtd .0 U to 4otol' CFO.tloa. bo;roall tho 01111 ot tho .... loISe

9. .:. 3~ul'1ty of tM Debo" of tl» J.Is'~l¥ .hal! oouUtuto • (\I01Ua,

10. Up,n :0'1'.10'" 1D mUIII ':0 tho tn.l40ft' 'pcnlOl'Od. ",. :sot lOll tha."I ,)n" l~a.rtel' :1 taw DCa',OI" at tho !I.ltbol'1tT t:21' an ,ad:YLICty Op1D10D on the OI)nto:mt',f :,Uh ':hi. Co:l1'OnC10D ot & ~polOCl aoUen boloZ'O tN :.lIo1ablT OD &IV' aaU~I'. II", ."13ab~ ahaU 4otc1' it. 'tOte all tbat aatt:o&" anrl .hIll zooqtlOlt tl., 8o....aod.1U .• puco. :ilaaiJOI' £01' &Il .. ,l-tlI017 ap1a1~D tbOI'OftD. '1:1,~.,n 'bat .oUon .11all b, 40£011':04 ,~ndJ..~ iol1'tOl7 .,t tt..o ~'fl.~l7' op1DlI)" bJ e_ Chaabol'. U tho '11,.,11Ol7' opi:a1cll 1J ,~~t roeo11'o4 by tho tlltal watk :21 tho :11111:2:1 1ft wtl#.oh 11 11 I'OcI'JO.tcd., '110 .u.:::!J:':'"haU ~0.u40 wholl it wiU &lOot '0 \00'0 opea tbl dolnnd aattol'.

PROPOSED AMEND~NTS 6. All decision. on question. of .ubs~ance .hall be

taken by a Ltwo-third!7 three-suarter. mftjo=ity ,of the members present and voting, provIded t at such majo=ity includes at least a majority of the member. participating in that lesaion of the Assembly anrl thr~e-quarters of those States Parties that are me:llb.)r:J~ Eli9 CouncIl when the dec1sIon Is taken. h'hen lthe Issue ar !sos ,ss tOI a:w merilber of the AS8embly raises the issue 0; whe:her-the queat10n 18 one of substance or not, the questI~n shall be t:eated aa one of substance unleas otherwiae decided by the Assembly by the majority required for questions of substance.

Paragraphs 7, 8, 9 and 10 •• in t.78


6. All d,cl.ion. on qu.,tlon. of .ub.e.ne •• h.ll b. t.k.n b1 • ~hr •• _ qu.rt.r. m'Jority of chI .'_D.r, pr ••• nt .na votfng, provldfd t~.t Iuch •• Jortty Includel at l ••• t I .'Jottey of tht ... ber. p.rttelo.ting In thlC •••• Ion of the Asst.bly .nd tht •• -qultt.r. of tho •• St.tt. P,rtl •• th.t tr. ~t~ber. of the Ccunctl wh,n the utelston i. t.k,n. Whtn tnv memb.r of tht ' ••• eoly r.t ••• th, IIIU' of 4htthtr ch, Qut.:ion il 0~4 of .uD.tlnct 0' not, the qUlltlon •• ltiU b, trllUd .. .,nt of SIlDHane. unl.I. oth.rvl.t d.clded by the ••••• Dly by the •• Jorttt "Quired f~r Qu •• tlonl of .ub.t.nc ••

7. D,cl.tons on qUI.tlon. of procedur., including the decision to co~vtn, I ,ptc •• l •••• fon of the A ••• abl, .hlll b •• ,d. by I •• Jorftr of th. rtpr.l.nt.ttv., prl.lnt .nd voting.

8. Vh,n •• ,tt,r of .ub.t.ne, co~ •• UP' for voting for the flr.t ttae, tht Pr.stdent m.r, .nd .h.ll, If r.qu •• ttd by .t It •• t ont f.fth of tht n,mber' of the AI •• ~l" d.fer the qu.stlon of t.ktng • ~ot. on .uch ".tter 'or a p'r'o~ not •• ct.dlng ftv, eal.nd.r dlYI. Thl. rule .'Y b. apPli,d onl, one. on tltat ~.tt.r, .nd .h.tl not b. Ippll.d .0 .. to d4f,r qu •• tton. b.,ond th, .nd of the •••• ton.

9 •• ""orlty of the •• ~.r. of the As •• ebly .hlll constitut •• ~ul)ru ••

10. Uponr.qu.lt In wrttt", to the Pr •• fd,nt IPon.or.d by not l ••• th.n ont qUlrtt' of the •• .otr. of tht Authority for .n Id~l.ory opinion on the confor.lt, with thl, Conv.ntlon of , propo.,d .ctlon btf~" the A ••• ~l' on .ny .. tt,r, th, A, •• ~t, .hlll d.f" It. vote on th.t .. tt.r .nd .hall r.qu,.t tht S •• -B,d OIIPut •• (hlab.r for .n .dvt,ory oolnlon thlrton. Voting on tnat .ctlon .h.ll bl d.f.rr.d p.ndlng d.llv.ry of the advl.orr opinion by th, (hleber. If tht .dvl.ory opinion I. ~ot r,c.lv.d Dy t~. fln.t w •• , 0' the •••• Ion In whiCh It II r'Qu •• t.d, the A ••• .oly .h.ll dleld. wh.n It wltl .,.t to vott UOO" th, def.rr.d .Itt.t.


1. tlIo "' .. aabq, u '1Ma .1010 Ol'pA ot tbG ~thonv oouLaUJ160' all tbe aeallen, ahall bo oODlJ.d.or04 tu INVftDO orpn ot the :.u1~ritr '0 wh1ch tho other pl'1naLp&! 01'", .ball ~I aoooUfttablo u .pooJ.tJ.oa1lr prov1llod. ::1' 1n th1l CoIWOJlUon. fto : ... c=~ .ball havo 'be powor to o ••• bU.l'. ,ollon! poUoi", Lo ocntor.:aUy vLttl 'RIo :oalo'fUt p%'OnliQUI ot tbi. Cont'CaUnn on ~ qu~.t1oD or aaUol' within tho ooapotODOO at tblt £latllon V.

0' Z. In acl4J.Uwo, tbo powtl'l W tunoU~:LI ot tbG ~ooabq lhall bOI

Ca) .leo'ion ~t tbo aoabol'l ot ,be Co\IDoll in .0ooZ'liaDGQ ~th &l'Uol.~ 161,

(b) 010011011 at eho aoon'aq-Goa.:aN troia' &QQIII 'be candidatol propoaocl by tbl) COUJ1oll,

(0) 010011011, "poo 11» NOOCDoJl4atlon ot tba CowaoU, ot tho acabol'l ot 7D.l CiOYol'DLrII Boad at ,::.: latcapi.o u woU u tho Du-aotc&,..Qoaonl ot '110 EntOzoprilO I

(4) 0.,.b11l_ot, AI appopl'iato, -,t Rob IUbaiUu7 Ol'ama AI all' " tnUDd 1)000a,&I'1' to&' 'ho portamaDOO at U. twloUaDi in ~oo~ wlth tbe» Pl"lvi'iol1' at ttll P&I". lrl tbG coapoaUJ.~D ot auch I\lb,~ orpa' !\Io aocount .hall be .... 010

ot '" priAc1p10 ot oqal'.b10 IlOCPPbS.:a1 llia'r1u\lUol1 aD4 ot 'POOl&! tntoro,t. -= i~ Mod t.,1' cao=on pUl1c:d _ ooapot.ot lA 4oho ro1;)ftAC uolmLclll quo.UOAl 4eal' 'lith by nob orpu,

(0) ... o.meDt ot tbe oontn,lJutlol1l .,t auab.lrl to tho dD1IIiltftU.,o budaot

III tbo ~tb)ritJ' 1n AOOCz'l!Uoo wUb an ~ocS ,onon1 a"o)olQOnC lcal1l *od up?n thG acale ute4 t)l' tho "",W ~u:1sot ot t!-.o UaLt04 IlaUonl Wltll 'ho !uUol'i'7 ab&U ba'Q nttlo1'<lDt ,",ooDG t1'oa o~bel' aou:-oo. t~'& aooUq Lta Ua1n1ab'~Uyo axpoa.o"

(t) (1) ooDe1.1onUoa aD4 aPl'ftl'll.l, Ilpea ~be rocoQaOndaUoa c~ tba COWlCU, "t tb.1 ",,101, 1'O,ul&Uou Ul4 PZOCadurcl "n .. I» oquUablo aJluo1I21' ot tin&Doi&1 acI ,thw o~aoa1o b4:DClt1U .lor1vo.1 (~ .aUntioa in tI-.o ;~a UIIl tbe pqaqta am ooatributloDI Dado punuat to aniolc at, takiDa' IDto »&rilculu 0:us3UonUoD tbo Lat.:lnataU14 tho lU.,da ·~f tho !oYOlop1na .tatol &All POOP~I who bave DOt attained lull 1Ddop:n\lonc:o 01' atbar eolt-lOwl'ft1Dc ata'ul. U t::o ':"aoDlJq "..00. no' appl'O~ .be roOOQQCndanoDl ot ,be Couno11, tho LI.ocb~ .lIall I'Otlml cbea to 'I» Counou tCI' nOODIi4enUoD iA ,l1li U4rb' at tho nova Oxprc"H b¥ tho :".eall!T,

(u) oowdonti)a and a~va1 )11110 1'".110', Z'f:aulaUoDa &Il1J pwoodu:ro • .,: the .'.uthol'1tr, u:l azq conJaontl ~~1'Ct,;:. ]il'ori.lonall,y -.l'1P'~d. ~y tho CoUZloll 5N"naDt h ar.l01o 162, ~'nph 2 (n). fbaap 1'Ill.oI, l'C1'l1aUona IIICl proooliuro. lball :ola'o h pN,pcoUns. uplontLon, am o::ploU.U.oD 1n :ilc ~a. tho t1naAo1al J:IUlIC'olQ3D' and lntornal adt:l1a1,naUQI1 of '1.: .'.&l'QIl~ritJ', ad, IlIOA tbD roIcCXI3OO1UticD )t lho,Il.JYOm1D:l Icard. -:.t tM Eat"&'Pl'1a., t110 IUloa, 1'Oi'&1&UOI!A awl I=004UNI tal' 4:tw 'l'IU' .. t,,:, )t lund. tI'OA 1:110 aaloQrUo h '1", :.utl~I'I.V' •

(i) OODIl~nUoll UIIl &ppro~ oiibQ budv~\ l)t tho .tbol'1ty on U. aumla.1.:n bT tba Couao11.

(Il) oxaalDaUOD ql 1101'104.10 roper" hoQ llba Counou an4 tZOQ tbG ED.'o~ri.o artS ot lpea1t.l :01101"11, n",oltoel tzoQ tllG Couao11 IZI4 tZ'OQ .. otbal' orpu ~I tbe :.u.tboritJ'.

(1) 1a11:1aU~D~' .twU.oa &Il4 ra=QQCD~Uona tIJI' illIG ~.o ot poDOU,.. :.ot.:lrnaUonal ao..oponUOD ooaooZ'D1Ar aoti.ute. 111 tM ~a U!4' oaoounc1na tba ~rofl'Oaliw doyoloscoat ~t lAtolUUoaal lui zo1&Uq 'blmlt; IDIl U' oo4Uloaiioo.

(.1) 4ao14.iDr IqIOD ,be oquUablo .hU'1118' ot t1naao1t.l - 0'1101' ooonoa1o· II ... IUI '1~r1t'C4 troa &01:1,11:10. lA tho lona, OO:sIiI'OD' witb tho JZ'Oftlion.e ot tbt. ~:O~DUOD aa4' tba nloa, zociUlaUOAa and. praa~' 01 tho :.utbDz:l'1'1'

(IE) oou14onl1aA at p:olaloaa at a IOQOn1 na~ lA ooDllooiion td.Cb aoUT1Ual l:a .aw :ZOa lA p&l'tJ.aulu to&' c11Y11o~ Sta'ol, AI woU AI ot lIleh prQblma t= 5,.&01 in OODQOtiOIl with a011riUo. lA tbG .:zoo ... &1'1 41&0 to 'beu PpaSlbS.oal :'oacbD, iIIo","'", laD4-loakG4 aa4 IOOlI'&plI.lG&llr Ula4nat&f04 ~IriQ'1

(1) o,talJUalmolit, upoD , ... rooor:aoDdaU= ot lisa Counoil all Cbe lI .. ia ot &JT10~ froG tM IQI)noalo ~ Coar:a1aa1oa ot • qnoa at ooapeDMUOO AI iZO.uM .:.:s -"1010 1,1, ~pb 4. .

(a) nqoaaloA ~t aaUon panu&D1 to U't101o 18'. (D) 41.ou •• ba ot .. Il'IO.UOJl 01' ca't. wUhla lbo e'JDpotonoo at ,be ~th:»l'1V

ad l2oc1.hca AI '0 wbLob Ol'fU .ball .seal wUh I'V' lI10h quoatioD 01' Datt,l' DOt :poc1l1cal.1T oDCrulh4 b a pu"'tiGlllu 0 ..... ot ,be ~'hol'it7, GaMbtoD' "Uh tlw :.l.tr~1N1:1oD 01 pewn and C\oDoUOD8 -III '''' OI'PN at tho .:.uthol'1tJ'.

PROPOSED AMENDMENTS Articlc 160

Power. and Functions

Delete para9rAph 1

2. lIn addition, th!7 The powerll and functions of the A •• embly shall be.

paragraphs (2) (a) and (b) remain as in 1 •• 78.

(e) election, upon tha recommendation of the Council, of the member. of the Governin9 Board of the tnterprise all well as the Director-General of the Enterpria. in accordance with Annex IV, article 5, paragraph 1,

(d) establishment, au appropriate, and with due reaard for economy and efficiency, of su:h subuldlary orqans as may be lound necessa~y for tho /performance of its7 exercise of the owers and functions LIn accordance with the provislons o con erre upon it by this Part. In the composition of

suchl subsIdIary or9ans due account shall be taken of t~. principle of equitable geo9raphical distribution Lin~7, the need for the ~e~resentation of special intercsts and tne need for members q~a ified and competent in the relevant tech~ical questions dealt with by such or9anF;

Paragraph ~(e' as in L.78.

Delete (f) (i) and (ii) and sublltitute the followi~g:

(f) consider and adopt, purlluant to Annex III, article 17 and upon the recommendation of the Council the rules, regulations and procodures of the Authorit)·, ,

, .• (9' l!Conaideration and7 approval ~f the b~dget of the Authority on ita submission-by the Council in acco~dance with article 172,

Pare graphs (h) and (1) remain as in L.78.

Paragraph (k) remain. as in L.78.

Delete paragraph (1)

Paragraph (m) remain. a. in L.78.

(n) discussion of any queation or matter within tho competonce of the Authority lind deci.ions 08 to Which organ ahall deal with any 8uch question or matter not specifically entrusted to a particular orqan of the Authority, consistent with the distribution of powers and functions among the organ. of the Authoritl7,

(0) jPprOra1 of A3reement& with international organbat ons on accor Ancc wIth article 162, paraqrapt. 2(f):

(pt arpointment of an independent auditor In accordance with artic e 175.

"

161;


"rttel. 160 'ow.r. Ind funceiona

2. Th. powerl and functionl af t~. AI •• ~l, .hall b.:

(.) .lection of th ••• ~rl of th. Council in .ccord.nce ~i'h .rttc4c

Cb) .l.ctlon of the S.cr.t.ty-G.n.r.l fro ••• ~ng the clndldat •• propOI.d b, the Council;

ec) election, up~ the reco ••• nd.Cton of the Council, of the .e.~.r. of the Gov.rntnw Board of the Ent.rprtl •• 1 w.ll al the Dlr.ctor-Gen.r.l of the Ent.rprll. tn .ccordlnc. with Ann •• IV •• rttcl. S, parlgr.ph 1;

Cd) .It.bltlh .. nt •• 1 .pproprt.t ••• nd wtth ~. r.gard for econo~ .nd .fttcl.ncy, of luch ,ub.ldl.r, org.n •• 1 •• , bt found neC.II.r, for the , •• rcil' of the pow.r, .nd function. conf.rr.d upon It b, Chll P,rc. In the co~oslt'on of .Ublldl.r, orgln. due .ccount Ihall be ,akc~ of the principl. of .qutt.bl, g.ogr.phlc.l dt.tributlon, ch. n.ed for the rtpr.l.ntatton of specl.l tnter.lc •• nd th. n •• d for .e~er, qualified .nc coap.t.nt tn the r.llv.nt t.chntc.l qu,.tlon, de.lt with b1 luCh or9,nl;

C.) •••••••• nt of the contrlbuttonl of .. ~.r. io lbe ad_tnt.crattve budg.t of the Authorit1 in .ccord.nc. wtth .n Igr •• d gen.f.l al'.I.ecenC Ical. bal.d upon th. Ic.l. uI.d for ~h. r.gul.r budget 0' the United NlttoRl until the Auchorit, .h.ll h.v' .ufftct.nt tnco •• fro. oth.r ,ourc., for ••• tlng ttl .da'niltr.ttV' •• penl.l;

Cf' constder .nd .dopt. purlulnt to Ann •• III, .rttcl. 17 and upon th, r.co ... ndlcion of the Council the rul •• , r.gul.t'on. Ind procedur.1 of the Authorttt'

Cg' approval of th. budg.t of the Authorlt, on .t. lu~t'lion b, t6. Council In .ccordlnc. wtth .rttcl. 112;

Ch) ••••• n.t.on of p.rtodtc r.port. fro. the Council and fro. eh. Int.rprh •• nd of ,p,,"'l r.porU requ.II ... fro. the CouncH Ind fro. In, oth.r org.nl of ch. AuChorit"

ct) Inltt.tlon of .tudl •• Ind r.co ... nd.ttonl for the PUrpOI. of prOllottng tnt'rnltlo~.l co-op.ratlon conc.rnlng .ctlvltl •• tn 'hi Ar ••• nd encour.ging th. progr ••• iv. ".v.lop .. nt of int.rn.tlonll law r.l.elng th.reto In" It I codlflc.tlonl

eJ) ",cidtng upon the .qutt.bl. ,h'rtng 0' fin.ncl.l bentflt. derived 'rOIl Ictlvltt •• 'n the Art. fro. the rtv.nu •• r ••• inlng .fc.r the financial requlr, .. ntl of .ll IdJult .. nt I •• tlt.nc. progr ••• Ir ••• t, con.tl'enc ~itn the provl.lonl of thl, Conv.ntlon .nd the tul •• , r.gulltlons .nd proc.dure~ of the Authority;

Ck) conltdtr.tlon of prObl •• , of I gfntr.l n.tur. In conn.ction with .ctlv'tl., fn t~. Ar •• In partlcullr for dev.lopfng St.t.1 •• w.ll II of luch probl ••• for Stl'" in· connection ~tt~ Ict'vlt'.1 in lh. Ar •• I. Ir. due to th.lr gtogrlphtCll loc.clon, tnelu"lng llnd-lock.d .nd

geogr.phic,ll, d,.,dvlntlg.d countrt •• ,

e.) .u.pension of •• ~r. pur'Ufnt to .rt'cl. ,.S,

Cn) di.cua,ton of .ny qulltton or .. tt.r ~I'hln ,~. co.p.l.nc. of the AUCborUll

(0) .pprov.l of .gr •••• nt. with tnt.rnltionll orglnfl.tlonl in Iccord.nc. ~ith .rtlel. 162, Plrl.r.,_ a 'f);

(p) .ppolnt .. nt of .n Indep,ndent eudttor In .ecordanc. wtth articl. 17S.


1. lbI Council .W1 oonal.t at 5S _:b,n at the kthont, el.ot" ", the ' ... a1:1" t ..... :'.oUon h ,w. plao. In ~h. tol1ovtncr or4erl

(a) rev 2,ab.rt troa 1:10", tbtl "1Ih' St.t •• fcrtltt .,hioh hay. tb. 1u,." in ... ~d. in pnp4ftt:'OD tor an4 in "'" ceMuat of aotlYlU .. 1D 'hi bea, .1t~er !1ne~l, 'I' tl'.l'?uc'l t".elr n.e;Icma!., lna:u.41_~ at 1Iut en. Stat. tl'01ll tbe Eutut: tSoc1&1I.~1 ::uz.oPlL"l l:'SlhnJ

Ct.) tour "'.~4rt tl'OO a::ctft.f tho .. Scat •• Pazoth. whioh, !utBa the 1 .. , fbI ,..an !csr vb1eh .~-:lt"o' aft anUable, h". tUber cOCU\me4 lIOn tbaD 2 per c.r.t at total 'IO~U cO~lon er h,:. •• t.ad Nt Lalon. of aon tbaa 2 rer e.ct ot to~l ·00I01'l1 1..,n, ,C the coaao41U". tn04uc04 hoa the oa"lOr", ct aln.erd. ~ b. I!nl'l"f,,\ !r)a ~I-A Arta. a.."14 1.r. an, "' .... eet 8ta'. tl"Oli ~be Euhm (SoclaU.~) ~')eM =-a1CD,

(0) t,1U' :ecb.rt troo IDO~ OO°Jft~ •• vh1ch on the bull at pro411CU~ !a an ... .aM.:, thllr ~urill41o"OD CU't -loS Or Det .::,orh:-a ot the oat. IOn .. ot ~"h to b. ion":"t4 fl'Cl"S thti ArIa, 1cc1u41fta at leut two a. .. lapiq oountn .. ... roD ••• xpar-. c! DUOtS :.i.Nnb ha't, • IUb.taroUal btartna U~D th,ir .eoftOdtt'

(4) .~ ctehn !,.,a IaOnl d, • .,loplft6 Sta' .. , "JlftIl.DUna '",01&1 bt.n.". t~ .,.c1&1 1ntuut:l !o .". "pn:ltn~t4 ,ball lnolu44 ~ho .. .,t Stattt wUh nrCp'pUaUOftI, 3tat" vhlcb 1ft l,M-look" o~ swo!"phicall)- dlta4nftt8fl4, Statt' vhJob an I:"'or 1cllDrtln e.! the cat'eorl .. of ala.tral. to lM a.nYe4 tl"Oll ~bt 11 .... Sta~ .. vt\lob art ",hnUal ;rI'04UO,," of lN~h :t.lft4rah, m! 1Iut 4"',10rt4 $2t ...

C.) l1""t.tn .. eb,n .lee~et .e~OI'UI\,T '0 tbe ,nnolplt of t~ &IS ''fJltllol. C"ofl'&phlca! ~:'.'rl!lu\!on or .to'~ in 'hi CGtlnell u a whol., ~Y14,4 that tl.Oh ('M(I'I,hloal repor. lNall I\&"f, at lta.t =nt 2IIcbu dlot,4 _II' thi. tub~rh. ~:' ~h1. ~ .. the I'0,"~cal rtliona 1h&U ~ Urioa, ula, tutu" iUl"O~ (le.clall.~l, !.attn AlDlrioa 1M ~'ttt'rn ~I'I Ift4 otMrt.

z. !r. tl.ctlatr the .,ebtl'll 1C ,~ .. CouncU 1ft aocozduc. "Uh paNGftllh 1, u-.. hlttlbl, ... .all tna:an ~,~~I

(10) 1an4-loo~e4 1114 I"fI'&l'h1eally U,aA.Mt&4t' Stottt art "". .. n'" to • '-lnt 'r!'.1,h II "uonabl, t'I'O,onloMt, ':A) 'hilI' "PI· ... lltation in the b ... bl"

(1:} ":~ .. <:a1 Stat.l, .. ,,:ul:y l .. dop1."" Stot .. , \/hloll 40 oat lluaUly urdu ra~", 1 (al, (b), \0) c.nl (4) an "," .. nt.4 to a ben' vI:.loh 1. "UOMO,)· PI'01I~rtlona~. to tbtir "~nltntatlon In the 1 .. tllt1,.

(0) ,lOb pollp :f S'at" Plr-lee to b, :"Ivnlln"4 on tht Coucoll 11 "\lI'II,nted '!IJ' ~ho.t :'Oblrt, !ot So.", 'thioh al'l noDlnaitd by ':111 Il"OUP.

3. . nloUon. Ih.111 ,l1:t ;bc. &t rt4U!ar "ttlor .. ot the .l .. 'lIbl" lID! each cwctt: ,t ,1:1 :o:.&l1c11 'hall '!I. ,b~tri lu " t.ro: of t~ ,..an. In tbl t!ont fl.,,:l:n ~t "teb,," ,t -:,. .. COWl:U, hcn. ... u. "" l:all ~t thl 21l1b.1'S ot each :a~.!"1T ,!I&1l "::, :!'.clt:l t:»1' a ~.rJ.~ ,t ho ,.an. .

4. HIe"t" .hall " ,UIl"l. tOI' n-elto'1oD, 'but 411' "taft 1hovl4 b. iIf.l4 to tbe attlrtbllltr ot l"OtaU", ,!..a"~

,. the Coanoll .ball °lu.Dctioe at thi· itai ot ,be lathont" an4 .hall uet u otten utI-.. bu.lna •• ot 'be jdtasol'1t, IS&7 nqail'l, but DOt 1 ... thall ~hn. ti .... "U.

T. (.) lIeoltlont 08 qattt10ftl ot J1'C)ct4un .ball " tak,D b; • -.1ont7 of tbe ._b.rt,""", u4 .,.,,~.

(b) D.oltloDl OD qUttt10na ot """Itano, ari.lq .'1' tbe 1011~ poYltlon.t .ball b. lutD ", a tvo-thlJ'4, tsaJoritr of the Mabtr. pn.tn' lid .ot~, pro'ldt4 that lUab eajorU, lDolucl •• a -.ton., or tbe IDtIIb.1'I of the ::»IInOUI artlcl, 162, ~Pl 2 (t) I .,..1011 162, ~Pl 2 (,). uUolt Ut, p&ra,"~h 2 (h) I artiol. ua. ~\Ih 2 (l), uUol. lU, JlUafl'&Ph 2 ttl" artlol, 1~2, "",","CIh 2 (oh arUol. 162, puacnPl 2 (alt artiole 191.

"" .... ...,. -----SUBSECTION C. THE COUNCIL

Article 161 Composition, procedure and votinq'

1. The Council shall consist of 16 member. of the ~uthority elected by the Assembly, the election to take place in the followln~ ordera

" Subparagraphs (1) (c" (d" and Ce), paragraph (2), and .ubparagraph. (3) (1) -(7) (a) remain as in L.78.

l(b)Decision. on questions of substance arising under the following provisions shall be taken by a two-thirds majority of the Iftember.s present and voting, provided t.hat such a majority include. a majority of the member •. of the Council. article 162, paragraph 2(b), article 162, paragraph 2Cc), artIcle 162, paragraph 2(e), article 162, paragraph 2(f), ertlcle 162, paragraph 2(q', article 162, paragraph 2(h" article 162, paragraph /2(it7 2(0', larticle 162, paraqraph 2(m), erticle 162, paragraph I(o) artICle I62, paraqraph 2(u'!l article 1'2, paragraph 2(aa), article 191.

article 162, paragraph 117 article 162, paragraph 2(a), . ~.rtic1e 162, p3ragraph 2Cb" article 162, paraqraph 2(C)L7 article 162, para9raph 2(d), article 162, paragraph leA) [2 (e17, article 162, paraqraph 2 U bb)., article 162, paragrap 2Tk) , article 162, paraqraph /2 (p)1 2(1), article 162, paraqraph 2(m), article 162, paraqraph %(q"- lartlele 162, paraqraph 2(r),1 article 162, paragraph 2(s), article 162, paragraph let) lIn cases of non-compliance by a contractor or a sponsor7, article 162, paragraSh 2jU), article 1,62, paragraph 2 (v) providecrt1ii£ orders Issue un ~r this subparagraph may be binding for no more than 10 days unles8 confirmed by a deci.ion taken in accordance with subparagraph (d), artic1~ 162, para9raph 2(w), article 162, paragraph 2(x), article 162, paragraph. 2jy) , article 162, paragraph 2(bb). lirtic1e 161, !~~~!~~P~_2~ article 174, paraqraph 1, Annex IV, article ll~

W 1 'J.' H U ~ 1\M~r4 U.M~l'4 OJ. a SUBSICTiON C. THi COUNCIL

Articl. 161 C!!pOlttton, procedUre and yottn,

t. Thl Counctl .b.ll const.t of 36 ••• b.r. of the Authority .le~t~d b, the A ••• .bl', the .lectton to take place in the following ord.rs

C.) four .e~.r. froN a.ono the Stat •• Partte. whtch hlY. the llro •• t inv •• t.tnt. 'n pr.paratlon for and In th. conduct of Ictlvltt.t in the Are., Itther dlr.ctl, or through th,'r nat,on.l.. Th.te .,.b.rt .hall be ellct.d frOft the .,ven St.tet P.rtle •• peclfl.d 'n paragrJPh 7 (c t.r), 'ncludinO It least ont State 'art, fro_ the hstern (Soclatht) EurOS'ean r,,'on#

. (b) four .eBb.r. fro. a.ang tho.e State. P.rtl •• Which, during the t •• t ftv. ,e.r, for which stati.tic. are .vatl.bl., h.ve etth.r consu •• d .or. than Z percent of total world consumption or hlv. hid net 'MPorts of eor. th.n 2 p.rcent of total world t~ort. of the c~ltie. produced fro. the c.ttoorte. of .in.ral. to be deriv.d fro. the Ar.a. Thr •• of the four ••• blrs Shill b •• l.ct.d fro. the S'Yln State, Parties specified tn par.graph 7 (c t,r) and on. Stat. P.rty frc. th, Eastern (Socl.ll,t) European "gton#

(c) four •• .ber. fro. 8.ong countrt •• which on·th. batt. of productton tn .r •• , under th.t, jurt,dtctton .r •• aJor n.t txportlr. ef the cltegorie. of .tn.ral. to b. dertved fro. th, Ar •• , including It lelst two ~velQplng countr'., who •• '.port. of .uch .tn.ral. hav, a iub.tan:iat be.ring upon th.'r .cona-t •• ,

Cd) It ... .ber.t fro. a-on, deVlloping State., repr' •• nttng .p.et.l tnt.r •• t.. The .pecial tnt.rett. to be r.pre.,nt.d shall tnclud. tho.e of Stat •• wtth lar,. POPUlltton., St.te. which .r. land-locked or "ographtcall, dt.advanta,ed, Stlt •• ·whtch .r •• aJor import.r. of the elt.gor'" of .In.rall to be d.rived fra. the Art., St.te. whtch .r. pot.ntill prodUc.r. of .uch .tneral., and l ••• t dev.loped St.t •• ;

CI) .tghteen •• .b.r, el.ct.d Iccord'ng to the principle of ensurtng In .quttable OIographical dtltribution of ••• t. 'n the Counctl I' • . whole, provid.d thlt .,ch o.ographical r.,ton 'hill have at \e •• t one .. ~r .llct.d under tht, .ubparagraph. For tht. purpo.e the geographical

'nd·g•ons Ihlll bl AfrtcI, Alii, Ealt.~ IU~1 Cloctaltlt), Llt.n A--ric. ~. V •• t.rn Europ. Ind othe,t. 1 ~

2. In el.ctfn, the .'~'rl of th~ C t 1, thl Alle.bt, shall en.ur. that: ounc l tn accordance wtth'par.graph

C,) lind-locked and geogr. hi II dt to • de,r.e which t. rea.onlbl,Pp e. {, .adv.nt.ged St.t •• ar. r.pr'.ented the A.I.ebl" ropor onate to th.tr repr.sentation tn

not Q!::'~;.!!:! States, ,.p,ef.lly dev.lopinO Stlt •• , which do to I d.gr., Whic~ ~:r.grIPh lea), (b), (e) and Cd) .re r'pr.t.nt.d the A •• e~l" r.atonably proportionate to thetr rtpr'ttntltton In

(c) .Ich oroup of Stat •• P tt • r,pr"ent,d by thol' B,eb,rs .:r •• ' t:,bth rtpre.tnt.d on the Council t.

, n" wear. no.inat.d by the group. ,. El.ctfonl shall take pla. t

Ind elch .ember of the (ounell I~'l: bre~lar d,e:"on. of the Atle~ly, In the f'rlt ,l9ction of .e~lr e • .cte ~r I ter. of four yt.r •• .e~erl of .,ch elt.gor, ,h.ll :.Of~ the couf ncfl, how.v.r, on. h.lf of the

e o.en or I ptrtod of two ,'ar,.

'houl:·be":~:r:o·::!ld::'~!:::~!; !:rr:::::~:t::::,~ut due r.g.rd

5. Th. Counetl .hell function at th Ihlll •• et a. often a. th' bu.'n ••• of • •• 't of the Authorfty, .nd not It •• th~n thr •• t'm •• a ".r. the Authorft, •• y r.quir., but

• -:0--- .... --... ---.~.~.:-::-.-.-~~-----.... -.... - _ .... -----University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

(t) beolaloDa DO' U".4 •• , whioh -'be Ccnmou 1. tutur1 •• 4 to talc, 111 tbI ral." "aulaUoftl ml proot4lan1 of tbI Jaatbod, ~ 01' otberw1l. .ball ". talclA pn1Wl' " \he 11llIs-ntn;be 01 'bll uUoli 1ft01I1t4 Ia thl 1'41." np1aUoDa _ PI'OOtUn. 01', J.t ut .,.oUle4 tbl"iD, tIwl JIUI'IIIWl' to- tbe auII,.,.".(Ib a.t ... lDt4, bF tbe CoaDCll 11 10111111. 111 lAnDO', 'br '1M aa,1ori t7 nq1l1n4 tOI' qu.t10ftl antel' n)~lIb (4).

C,) """0 ,be lnu. ari ••• II to wbetb.1' a \","100 11 vUh1D 1U1Iparoacnpha (.), (11), (0) 01' (4), 'be qQI'Uoca 1ha11 be ,"ateel .. bt1De."Uh1A tbe .ubpuccnph nqu1dq 'hi hiabel' ell' hip.' uJoritr .. tbl OUt aq bt, =1, •• otMM" 4ecl4e4 11, ,tW, COdOll 11, ,be ..u aa.jDl'1".

S. 'MJol'i~ of eM MtIb.n ot 'be CoaaU Iba1l OOlllU"". & quota.

,. 'ftat Ccnmoll lball .1\&bUlb • pI'Ol!It4U1 ",,-"b, a •• abll' ot, .. AD'bor1t, DO' "'""o'eel " the CcnaMll .., •• 114 • "pn .. lltaU., to .Umi & •• U~ ot ,be CoaIIoU .0 • nqut., 11 MISe 'br 111Gb "'11', 01' a _U.I' puotlwl&l'l, alfeo'ier it 11 =4 ... oona14,n'loo. Baaoh. npn .. lltaU ••• hall " •• D",1I4 to SWilolpa" lA tbe 4aUberaU-. "' DDt to ~, ••

• • • -. • -

add new parAgraph 7e(ter)

delete paragraph l(d) and replace with.

(4) Decision. on ado~tion of amendments to Part Xl purlfant to ArtIcle 314 B ali be taken by consensus.

of

~ 1 (e), (f), ard (g), _ puagz~ 8 ard 9 xunain .. in L.la.

- - - - - - -

7. Cd Olctstonl on Q""U"" of 'ree"" ... " tie , .... '" a •• Jortty of the ••• ~rl pr'I,nt .nd votint.

Cb) Oleiltons on qUilt toni of lubltlnc' .,i"nt ~, ,he following provtstons Ih.ll bl t.kln b, • two-th',d, "'o,i,, ot "_ .I~'" p'lsent .nd vottno_ provided th.t such ••• Io"t, 'ncl~' • "Jortly of thl .eab.,. of thl COU1ctl: .,t'cll 161, p".g,aob I (~'a .rttcle 162, parag'.ph 2 (c), .rt'cl, 162, plr'graph 2 (I), I,t'cll 16t. plragraph 2 (f), .rttcll 162, plr.gr.ph 2 (g)1 ""el. 162_ plrlDrach l Ch), arttcle 162, plrlgraph 2 Co), Irttcl. 162_ p.',g,.ph 2 t.I), .rt'el_ 191.

(c) Oectstonl on qUlatton. of aubltlnc. artltng under the followtng provtlton. 'hall bl t.kln by a threl-fourth •• aJortty of \he •• .blr. of the Council tncluding'a 't~le .. Jortt, of elch of thl •• ~'r' of the ftve cltlgort •• ,plctftld tn par.grlph ,. arttcl. 162, parlgraph 2 CI', artt;le 162, parlgrlPh 2 Cd), Irttcll 162, parlgrlph 2 Ct), Irttcle 162, plrlarlph 2 Ct btl" arttcle 162, plrlg,a~h Z (k), .rttcle· 162, plrlgraph Z (l), arttcle 162, plrlgr.ph 2 C.); Irttcl. 162, plragraph 2 (q)I arttcle 162, Plrlgrlph Z C.), arttcle 162, parlgraph Z Ct), .rttcle 162, par.grlph Z (u), .rttcl. 162, ,aragrlph Z lv) provided thlt order. t'lu.d under tht. .ubparlgrlph .. , be btnding for no .ore ' thin 30 dlYI unl ••• conftr.-d by • dect.ton taken tn accordince with

~.ubplrlgr,ph (d), Irttcl. 162, plrlgr,ph 2 Cw), Irttcle 162, par'gr,ph 2 Cx), .rttcl. 162, p.rlgraph 2 Cy), .rttcl. 162, p.ragraph 2 (bb).

Cc bt., t.ct.tona on qu •• tton. of tub.tlnc. Irt.tng under Irttele • 162, parlorlPh 2 Cn' ct, ,hall be tlkln by a .Ijorlty of those dlvelootng It.t •• '.rtt •• which .r •• e~.r' of the Council Ind whtch Ire thl ftve l.rg,.t produc.r. wtthln thetr terri tort •• of ntck.l, cobalt, .an,lnel'_ .nd copp.r.

ec ,." 1~ the .vlnt the L.g.l Subc~t •• ton do •• not adopt or l.end the rul •• # rlgulltton, Ind proc.dur., of the Authortty r,qutred b, .rttell 162, pI,..grlph 2 Cn) ct U tn accordlnce vith arUcl. 165, pari graph, , through 8, the tounctl .,,# .1 ••• tt.r of ufO_nc" .dOpt th •• bt a .aJortt~ of the •• .b.tt pr •• ent and yottng of the •• ven Stltl 'Irtl •• whtch ICC~t for the llrg •• t proportion of •••••••• nt. b •• ld upon the ICll.d u'ld for thl r.gul.r budget of the untted Nltton'.

Cd) .. ct. tOni on ldoptlOft of &8In~nt. to 'a,t .1 pu,.auant to Arttcl~ ,,4 ahlll be taken br lonIIftIU'.

CI' 'or the purpose of .ubp.,lg;'aph (d), the t,,. ·Conllnau.· "In, thl Ib.enc. of .nl for •• l obJlction. Wtthtn 14 dl,t of the tub.t,.t of • ptopol.l to th' Counotl the Pr •• tdlnt .halt I'eertatn vheth.,. tb.r. would be In obJectton to the prGPo.at tf tt wlr. put to the Council for ,doptton. If the Pr •• ld.nt ah.ll 'Ic.rtatn vh.thlr the'l would be In ~bJ.cttOft to • proposal b.for. the Counctl tor Idoptton, h. Ihlll consttt" I Conctltltton Co .. ttt •• con.t.ttng of not .or. thin ntnt •• .ber., wtth ht •• elf I. Chltr .. n, for the p~rpo •• of rleonetltng the dlfferlnc.a .nd productng I praposll vhlch Cln be adapted by con •• nlut. The Pre.tdent ,hill I.tablt.h the "td co..ttt •• within three dl,a following ,uch a,e.rtain .. nt. the Conclll.tton C~lttl' .h.ll work •• p.dt~oul~' and r.port to the Council within 14 dlYI. If the Concttlltton co"ttt •• t, unable to ,.ca..end I prOpOl.l which cln be .dopted by conl,naus It th.ll In Itt rlPort# ,.t out the ground. on vhtch • propo •• l t. being oppoltd.

Cf' '.ct.tons not tt.t,d .boVI whtch the Counctl I. luthorll.d to t.k, by the rul •• # r.gulatlon, .nd proc.dure. of the Authority or othervt ••• hlll be tlk.n pur.u.nt to the .ubp.rlgr.pha of thta .rttell ,plclft.d tn the rul •• , r.gulltlonl end proc.dur •• or, If not .pectfl.d th.,.'n# then putluln~ to the .ubp.r.gtlph d.t.r.tn.d by thl CounCil tf pOI.lbll tn Idvlnce, by the .. jortty r.qutr.d for que.t'or undlr lubplrlgr.ph (d).

Cg) When the I •• u. Irt •• 1 I. td whlth,r I qu.,tlon t. wlthtn lubplrlgr.ph. CI), Cb), (c) or (d)# the qUI.tton eh.ll b. tr'lt,d I. betng withtn the ."bparlgrlph rlqulrlne the htg~er or high.lt .. Jortt, II the C •• I ." be, unl ••• oth.rwtl. decided b1 the Counctl by the IItd .. jortt, •

- .... .. University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

.... -- ... -

TEXT OF L.78 PROPOSED AMEND~NTS

"


. I. A •• Jortt, of the •• .ber. of the Counctl 'hill constitute I

quorUM.

9. Th. Council ,hall e.tabltl~a procedure vhlreby' a .,.b.r of the Authority not r,pre •• nted on the Council .,y .end I repr •• tntativ. to attend I .eettng of the Counctl vh,n a requelt II .,d, by .~ch .~.ber, or I .att.r plrttcul.rly Iff.ctlng It 'I under conslderatton. Suc~ a rtpr.lentatlvi Ihall be tntltltd to partlclp.tt In tht deliberations but not to vote.


1. The COImOU 11 'be ,DOU"" oqan of n. AutNlrit" ban.n. ,he povu to .. 'ablhb 1A ool1tol'D1~ 'lith the ~.ll1ona ot thi. Con •• nUon and tn. ,.Dln! ,.,Uoi •••• tabl1.btcl II,. 'h. 1 ... lIbl" U .. 0..,.01110 pol1cho to be panutd b1 tM Asa'hoI'U, OD an, tluI.tlona 01' Cluten '"Uhin t:~ oompetlnce ol the Authority.

2. ID ..s41t1oD, the c:0.m01l .baU,

(.) eupern. •• aM co-or41Dat. the lopleDln~atloD ot tbe FIOY1l101U1 ot ~h1. Pan OQ &11 qu .. ~lona u4 maCten vithLn the competence ot ~b. 1uchon', aM In''''e tbe .".nt:'oD ot th8 Aa"ab17 ~o c .... ot IlOn-oOlllplJ.ano"

,} (b) ~pooe ~o -:he 1 .. ea~l, • 110t at cUl4!4.~ea tor the tlaction at ~ho 3..,n~U'J'"GtQlral,

~ (0) no~on4 to the &eo".!bl, 01l:l414&t •• tor dlotion .. IInblro at the ~ •• m1Dt' Boa&'4 ot the EnteJ'pl'h. at v.11 u th8 Dlnctor-Ctnonl ot the Catel7l'1".

(4) •• tabU,b, u aPPTDtdat., aa4 vUh 4ue nBUli to 'COMIIf' am .tttclenc:r. 1n Gd4Ulon to the Co.IJ.o.lona pro,,14.4 to~ 1n artiol. lU, p&rqS'&pb I, luch lubdUU7 Ol'fIII' ole _, be tolUl4 rl401l.U7 tor the p.rtollluoe at ita t-ol.'1CU::.n. 1D accoJUno. "Ub t:W pro'ri.loftl or ,lu. Part. ID t:,- cocpo.U10Q ot such nbtldJU7 orpa, ,,,,11 ,hall b, plac.4 OD th8 nel4 tor "I:lb,n q~al1r!.d. 11:14 coopeteat In the nU".t teohzlJ.oal caaUen 4 ... lt 'dth b, ncb orpno

. pz-ond.4 thot 41.1. aocowst .bal.l b, tll:.a ot 'hi prlnclple or eqd ~a~1t lIolftJhinl 41"rilNtlon MIS ot ,,.01&1 lIlt,net.,

(.) ..sopt U. rul •• ot ~c.4un LMlu4~ the CIIth04 ot •• hott..,€, lta ;nd4Int.

(I) 1D,.r into &fnI ... ftU wUb th8 UnUM KaUoe. 01' oth8l' lDI.mulonal n'p.nllatioe. on b,halt ot the Authol'ltr en4 vUlllD U. COIIPlt~no., .ubJoo~ ':0 awron1 bJ the AI.ealll,.

(E) eT.utne the npon, ot ,be CDt,rpri" u.s tnnaalt tbn to tbe £t ... !:Il~' ' .. , ':1\ 1-:. r.c:=.Mat1cft ••

~b) ;t'IlInt to tbe .la ••• 17 &nDU&1 "POrt. u.s'lQob '1>101&1 "POrt. u ~:!. .It.,lIb;7 ca.r nqJln,

(!) 1.,'J. Unoth .. '0 ,:at ZDwrprt .. In aooorl&Dce vltb artiole 17C.

Delete paragraph I

Article J62 ~ andfunctionR

2. LIn addItion, the Council ahal!? Tho powers and functions of the Council sholl be.

(4) to supervis~ and co-ordinate the implementation of the pro\'isIOns of this Part of all questions and mattera within tho competence of the Authority and invite the attention of tho As~embly to cases of non-compliancc,

(b) to propose to the Assembly a list of candidates for the election o! t~e Secretary-General,

(c) to rec~mmend to the Assembly candidate6 for election as members-of the Governing BC3rd of the Enterprise as well as the Director-Gcneral of the Enterprise in accordance with Annex IV, article S, paragraph 11

(d) to establi6h, ~s ap~ropriat~, and with due regard foreconomy-and efficiency/; in addition to the Commissions provided for in article 1'3, ~aragraph lL7_such subsidiary organs as may be found nece6sary for the lperformance of tt!7 exercise of the powers and fur.ctJons LTn accordance with the prov sons 0 conlerrcJ upon it by thi~ Part. In the composition of SU~b9ialary organs, lemphasis shall be placed on the need for ~embers qualified and competent in the relevant technical matters dealt with by such organs provided that7 due acc~unt sh~ll be taken of the principle of equitable-geographical distribution. the n6cd for the representation of special interests, and the need lor members gualilled and competent in the technIcal matters dealt wIth

y such otgans,

(e' to adopt it. rule. of procedure including the method ' of .e1ecting its president,

(f) to enter into agree~ent8 with the United Nations or other internaticnal organizatJons on behalf of the Authority and within its competence, subject to approval by the AssemblYL except for those referred to in article 151. paragraph 1,

(g) to examine the repo~ts of tho Enterprise and transalt them to-the Assembly with lts recommendations,

(h) to preaent to th~ A •• embly annual reports and auch .pecia1 reports aa the As.embly moy require,

Delete subparagraph (1)

Add new aubparagr.ph (1)

(1) to approve proposed projects of t~e Enterprise for carrying out prospecting in the Area and the transportinG. ,rocessing and market!n" of minerals rocovered from tho Area ~cordance with Annex IV, article 11;

Add new aubparagraph (I'(bla)

(l)(~la) to take the deciaiona apecified ln Annex IV, articles 11 and 1l(bla)~

Articl. 162 'ow.r •• nd function.

2. The pow.r •• nd functton. of the Council .h.ll b.:

(.) to lupervtl •• nd co-ordln.t. th. t.pte.ent.eion of the pro vi.tons of this Part of atl qu~.tion •• nd .atter. vlthtn the co~et~ of the Authorlt1 .nd invlt. the .tt.ntion of the AI.e~ly to easel 0 non-colDp l I .nee;

Cb) to propol' to the AIs •• bly • li.t of c.ndld.te. for the .l.ction of the Secrte.ry-Gtn.ral;

(c) to t.com.end to the A.seably c.ndldate. fo~ .lectton .s me of the Governing BOlrd of the Enttrpri •••• w.ll ., the otr.ctorG.neral of the Ent.rpri.e In accord.nc. with Ann •• IV, article 5, pa gr.ph 1; .

(d) to •• t.bltlh, .1 .ppropri.t., .nd with due r~gard for .con. .nd .fffclenc1 such lubsidtar1 organl .1 Ray b. found necesl.ry for' ••• rel., of the power •• nd functlonl conf,rred upon It by thl. Part. the eoapol'tion of lubltdt.ry organl, due .ccount .hall b. tak,n of , prlnclpl. of equit.bl. g.ographlc.l dl.tributlon, and the need for tt rlprl.,nt.tlon of Iptci.l tnt.rettl, .nd the need for ••• b.rl Qu,ttf'

·.nd eo~et.nt In the t.chnicil •• tttr. d •• lt with by .uch orglnl;

C., to .dopt It. rul .. of procedure 'ncludlng the , .. thQd of •• l.cttng ttl pr •• idlnt,

(" to .nt.r into .gr ••• ent. with the Unit.d Hatlon. or oth.r int.rnation.l org.nll.tlon. on b.h.tf of the Authorlt, end within ft. co~.ttnc., .ubJect to approval b, the A, •• ~l" •• c.pt for tho •• r.-f.rred to tn .rtfcl. ,'1, p.r.gr.ph 1; ,

(SI) to •••• in. the reportl of the Ent.rprte •• nd tren •• lt th •• thl A.,.~l, with It. r.ca.-end.tlonl;

(h) to pr ••• nt to the AI •• ~l, 'nnu.l report. and .uch Iplc •• l r.port •• 1 the A ••• ~l, .a, require,

(i' to .pprove propos.d proJ.ct. of th, Enterprll' for c.rrylng out prospecttng. in the Are •• nd the tr.nlporting, proc",'ng and •• rk 'ng of .tntr.l, r.cov,red fro. the Ar •• in .ccord.nc. with Anne. IV, .rUel. 12;

'.~.i ,S ..•...•. ~ ....• I

l University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

.. - '.,. - - - - • • • - -TEXT OF L.78

(j) &;P"V' pl,&n8 ot vow La UOOI'liUOI "Uh lmtIIz ItI, utiol. 6. T .... ";,)~1r.~11 .roUl IO'-upon .ub plaa of von ,lithia 6C !a1' ct ita ",b=1 .. 10a bl <:;~, t.ilU u~ r.ct=!oal CRIIl.I1OD at a .... Loa ot ,be ColIMll la aacol'llaaa. "ith ~bi tollovlnr F:oo.4~1"

(1) 1t the Co.ll1oa noollllllenA. ":he app"val ot a plaa ot vo1'l:, 1 t .t-.4l.1 ':I 4.tm.4 to taw, bttn app"n' b, tbe COlIDCll 1t DO Cowsoll hillier ."tm1~. to thl Pre.14ea' ul~hia 14 4aJa a ~aitl0 writt.a ob3eotioa aU.~ COD-OoQUanc. ~ th ,he "quinlMat. ot Jrmaz III, utlc1,:. lA ~ ev,a' that theZ'. ~ •• obj,otion, the ooaolUadoa pzoot4un e"~tN.ntcl la anlol. "61, PftIftph 1 (.), .ball appl,. U," the .nt! ot t!le oOllOl11,t1oa pzoo.... tile ~b~.oUoa to ,lit app"va! ot ":M ,laa at wl'.c 11 .Ul! II&1Ata1nt4, ·'he ~. " vozlc .b&l1 be ' •• aed 1;0 hav. b"a a",",.t4 'bT the Council UDleo. the Coaaoll 41.appo... i 'C

b, CODl.DlU IIIO~ U .... b.n .:ml:1111n1 tbe O'a" 01' ~t&tu. U II.V. E~ U. 1",11o,,'loa 01' spon.oriAr tbe IppUoaa~1

(11) U tbe Co_IIioa L'tOCllllead.. tbe 41.appoya! ot a plaa at volle or 40.., aot aake a ftOOal.II4aUOD. 'be COUOU =q 4.0141 to apPlOv, ~he ~a."l ot vos 'b7 a tbn.-tovtlw !IA3oritr of tbe ... b.n pn .. a' ia4 YOU~;. pzo'fUe4 t", IQl:lh -,:oritr iDolG4,. a :ujoriV ot lllellb.n puUolp.;:.U.-.er 1a tbat ... lioal

"' (ic) .a!OlI. ooa'ro1 0'711' utivlt!., in tho btl ~ &Cootdaao. "Uh ar.J.:le 15'. ~pis 4. UI4 ,he lUll', n6'llat10Ql and JI'Oo~, ot ttt. Au~bn'''1

(1) a40pUOD ot ttt. noom.a4&Uoa of th. Economio Pl.azmj,~ COIDDI.I.ioa n.cel8U7 IDI1 appzoopnat. lMalUn' " In aaooftanoe "itb utlo1e 150, nbpu'l6'%'lll'h (;j. t;o proot.ot aptut a4vln •• oonoma .tf.ot, .~o1tit4 ":.n14,

(:a) bl:1 reoo_MaUonl ~o c:~ b"lIbl,. on the ball. ot 14v1o. troll! t!:o tcccoG1o Pl&n111Df CO_IIloD tor 1\ Iret,1D ~t aOCiPlUIUOD 01' othll' a.&lv .. ,t .et-Maio ~u'tII'D' ...... tano ... lII'OV14.4 1D aniol. 151, pe.ncn-pb 4.

(D) (1) naollllMlD4 to ,he a..ealbly m •• , nQU1&tlono &ad ,,"a.clan, Oft the .\u1 table .!1arinI ot tJ:ncmo1al ac4 ot~1' .oonomio blnetl t. 4.n •• ~ troll aaUvUl .. la the 'I'll &ad. t .... P'1II1Jl11 aDd :ontl'lbutiolll mad, punu.' to &1'11011 32, t:al:1ng 1nco particlllu oon.ld.ft-:lon ,I:I latln,'8 UI4 DI.d. ot che 4.vtlo~ Sta". L"IIl ptO~ .. who ba". r:~t attua.ci tllll iJI4.,.n4.no. OZ' nul' lell-sov.zn1:sr .tatUI

eU)' "'''p' an:S l"i1'11 F'/1t1:nal17, ,vnain, &.ppr.y~l .". cb ........ .,ly. :l~. zul ... npl.l1oM an4 ,zooe41&l'C11 ot tb. lutbont,.. UI4 at OIIIladahtft'::I ,berno, t~ 1oto UCOWl' the noo=-rs4aUou ot tbe CO.lllon ~r ~thll' eubol'li!na'. oretA cono.rne4. !!Ie •• :U!II, naulaUoQl =4 proct4uzw. I~~ "lat. ~ proap.otL~, e:plorcc!ca and ezploltatlcn 1D tbe Ana, tbt t1uao1&1 ..... arezat an4 lnClmal adIWIUmtloD of 'h. Aqthorit,. 81lob IUlH. nlQl.Atiou Aftd procl4UZWl .ball nuJJl lD Itt.ot ~ft I ~.1ISoaal bul, untU apPlOva! by the ' ... ab!, 01' b,. 'hi Cowoll 1ft 'hi 11Cb' ot M7 '11.". .::pnlt" b, 'hi !e •• a1,.

PROPOSED AMENDJ-mNTS

Dolete 8ubparagraph (j)

Delete .ubparagraph (k,

Add new 8ubparagraph (k)

Delete subparagraph (1) "

Md "naw -cubparagraph (1)

(1' to take decisions concerning the partlclpat!~ the Authoritl 1n thl! commoalty agreements or arranqemen,s ~efer~ea Eo n arEiele lSI, paraqraph~,

(m' /take recommendations to the Assembll7 to adopt on the basrs of the report of /advice from7 the EconomIc Planning Commission lor Za system of compensation or other measure. of economisl yrograms of adjustment assistance as provided in article 15 , paragraph 2 l!7,

(n,(i) to recommend to the Assembly the rules, regulation. and procedures of the Authority on tSO-equitable .harinq of llinancial and other economic benefits derived from activities in the Area and the payments and contribution. made pur.uant to article 82, taking into particular consideration the interests and needs of the developing States and people. who .tatus~ the ~at6ent8 and contributions made pursuant to article 82, an ~e fInancIal benefIt. In accordance with artIcle 140. taking into account the interests and ne~ds of developIng States, upon their .ubmI.sIon to the CouncIl iiy'the Legal Subcommission, or, if the Legal Subco~mis.ion submits a repoIX pursuant to artIcle 16S. paragr~ph 8, takln, anto

,cons eration the report. If these rulcs, rcgulat ons and p~ocedurcs are returned to the-councIl for reconsIderatIon, t e councIl shall resubmit them to the LeQal subcommission rn-iCCordance wIth art1cle 165, paragraph 9:

(ii, ~ adopt and apply pr~vi.lonaIly, pending approval by th~ ~sse~bly, the rules, reQul~tion. and procedures of the Authority. and any amendments thereto ifaking into account the recommendatlons of the Commisslon o~ other subordlnate organ concerned7 adiPted by tho Loqal Suhcommlsftion in accordance with artrcle 6~, erovlded that the cou~cll shnll unsure that no operator suf- era any n ur rom re1T.i'iiCe u on the provIsIonal applIcatIon of these ru os, reg~ at ons ana-pFocedurea or anI amend~ent thereto pursuant to a~tlcre 165. ~aragrath 5 1 theI are mo~IlIed subsequently. If the Legal

ubcomm s8ion slJbm ts a repor~ In accordance .,Ith article 165. rara9raph 8, the CouncIl shall follow chis ¥rocedure, takIng nto account the report. These rules, regu atlons and pro

cedure •• hall relate to pros~ecting, ~xploration and ~xploitation in the Area, and the financial management and internal admini.tration of the Authority. Such rule., regulation. and procedures .hall remain in .ffect on a provi.ional basi. until approval by the ASBembly or by the Council in the light of any view. expressed by the A •• embly,

• • • • • L.78 AS IT WOULD READ

WITH US AMENDMENTS

(k) to 'nv.lt'g.t. the .d.qu.c, of St.t. '.rt, .nforc~.ent pr.cttc •• purlu.nt to .rttcl. 15), p.r.gr.h 4(b), with I vtew to consld.rtng wh.th.r th, Council Ihould 'n."lul.proc •• dlngl .n 'ccord,nc. w'lh .ubp,r.gr.ph (l).

(l' to t.k. d.ctltonl eonc.rntno the p.rtlelp.t'on of the Authority In the co •• o~lty .gr •••• nt. or .rr.no ••• nt. r.flrred to In .rttcl. 151, p.r.gr.ph 1. •

(., to .dopt on thl b •••• of the r.port of the leonoale Pl.nnlng CODalll'on for progr •• , of .dJult.lnt •• s •• t.nce ., provided In ,rtlcle tSt, plr'or.ph 2;

(n) (.) to r.co.e.nd to the A ••• abl; rul •• , regul.tton •• n~ procedure. on the .qult.ble Ih.rlng of the p.y •• ntl .nd contrtbutton. a.d. pur.u.nt to .rttel. 82,.nd the ftn.ncl.l ben.ftt. In .ccordance with artlcl. 140, t.klng Into .c-count the Int.r.st, .nd need. of d.v.loptng St.t." upon th.'r lub.t •• lon to the Counctl br the L.g,l Subco •• t •• ,on, If thl L.g.l Subco •• I •• 10n lub_Itl • r.port pur,u.nt to artlcl. 165, p.r.gr,ph 7, tak'n; tnto consld.r.tlon the r.port. If tht •• rule., rtgul.tlonl and procedurl • • r. r.turned to the Counctl for r.con.lder.tton, the Council .hall r •• ub-It th •• lo the ltg.l Subeo •• t •• fon In .ccord.nc. vtth .rtlcl. 165, par.gr.ph I.

(tt) to .dopt .nd .uppl, provl.ton.lly, p.ndtng .ppro;.' br the A •••• bl', the rul •• , regul.tlonl and procldur •• of the Authorlt" and an, ••• nd.tnt. th.reto, .dopt.d b, th •. Ltg.l lubcoaal •• Ion 'n .ccord.ne. wllh .rttele 165, provld.d th.t . the Counctl Ih.ll ,nlur. th.t no optr.tor .uff.r •• ny Injury froe r,ll.nc. upon the provlalon.l .pplleltlon·o' tht¥. rul •• , "Out.tlonl .nd proc.dur •• or .n, ••• nd •• nt th.r.to pur.u.nt " to arttel. 165, p.r.graph 4. If the L.g.l Suoeo .. II,lon lubco .. I •• ton .ubalttld • r.port In .ccord.nc. vlth .rtlcl. 165, p.r.graph 7, the Council .hlll follow thl, proc.dur. tatlno tnto Iccount the report. Th ... rul .. , r,gul.tlon, .nd proc.dur., Ih.ll r.l.t. to proIP.cttno, •• plor.tlon .nd I.plo'tltlon 'n the Ar •• , .nd the fln,nctal ... n~.nt thtr.-to pur.uant to .rttcl. 165, p.r.gr.ph 4 If tht, .re sodlfl.d ,ub •• qu.ntl,. If the Llg.l Subcoe.t.,lon 'ub.Itt.d a report tn accordlnc. wtth .rtlcl. 165, p.r.gr~h " the Council ah.ll fotlow thl. proc.dur., t.~lno Into account the r,por:. Th ••• rul.l, r.gul.tlona .nd proc.dur ••• h.ll r.l.t. to pro.p.ctlng, •• plor.tlon .nd •• plott.tlon In the Ar •• , and th. ftnanct.l •• n.g, .. nt .nd Int,rn.l .deln.ltr.tlon of the Authorlt,. Such rult., rtgul.t'on •• nd proc.dure •• h.ll r,.,tn In .,fect on • provl.lon.l b •••• until approv.l b, th. A.llabl, or by the Council In the ltghl of anr vl.w •• apr •• I.d by tho A .. ellbl,.


(0) ""lev the colh:UoQ ot all paJUz:.tl &0 b. :204. 'II,. or ';0 the Al:.thol'it:r 1%1 cOMO~don with openUon. panuut ~ til" I'ar.I

(p) t&l:.e ~,. .... l.oUon UIO~ .ppU,anta tor produotion .utbariaaUon panuut to .lMes III, &rUoh 1, tcr thl t'I'04uoUOQ authorization retnnd to in ... -Uell 151, "h." 1Uc:\ .,1I0tion ,. rwqU!h4 br thoo. ;roybLon.,

(~) eu'llaLt ';M badrtt ot tM .l&&lhnU7 to th. A ... eb1)' tor U. approyal,

(I'} ~. ncc:I)lJndat!o:. to t .... JaGle'lll,. conc.~ iIOlJ.:l".OD III)' quadl"" 01' ~tter "Ub.1D the ooaU'."cl at tbe "'t:lOl'1t1l

(.) cak. nco=eIlliaU:a. to tb .l1l.nb1)' oonolmiD&' .upen8ioD ot t:M ;:riyllo, .. &Del rieht. ot =-cbn ... .!' tor SZOI. an4 peniolhnt Ylo1aUoDa at the proYlllioAl ot ''''1: Part :apen a t~. ~t ~hl S •• -S.4 D1Iplt,. Chaab.r.

(~) 1DLtb~~ 21\ iI,hAle ,t ,~ Authority poo: •• d.ln,;. ... b.ton the S .. ..a.4 'lI;:ut .. Chaaool' ln CU" ot D2R-CCDiUUClI

(u) upotl a tLDIU"" bl' ~hl S .. -I14 J)te,ut .. :hacb.1' on proollcl.lap :..IUlUq tl'02 tubp&raSftph h), nodt', the 1.IOQbl,. an~ D4l:. reco_maUon. ri~ nlpeot: to ='UUI'II to 11. tak.n ·wu, O~~lt~ •• 4.oU.4,

(.,) lIw .... rpno:,' o~.ro, ·..t11ch::aq inc1ud. Oft.1'I tor the .. .a.penaLoD or at:u.t:sln, ,t 09lraUona, ~: tJI', •• nt .. riou. h.aft ~o ~hI ma.r1ne .:adronc.Dt: ~Iln'l' out ot IlIl' aoth!l:t La 'M 'nGI

( • .,) dllaPr.Ow, an .. to~ IZIIbUatlon br OOIl\l'Mt~n "I' the i!atll'prhl 1ft c .... 1Ib.n .... buanUal end.eel ln4Loat.. the rbk ot •• nou tam to tbe c.aziN 'Q"lro:m'Dt,

(x:) .. tabUlb a .uboI4.l&1'7 orpn tor ~he .labol'llUon ot 4ntt t1DaDo1al zul .. , nsulaUona lad proc.4\lft11 nlaU:-., tOI

(1) tlN."Wlal UD&4IW .. nt 1n aooOr:WsOI vUb artlcl .. 111 to 1T'. &D4

(u) nftl.:lClal &rnn&'I1S.n~o In accol'4GIICe vUb Annas JII. utiole U an4 artlol. 17, puafl'&pb 1 (0),

(1) .. tallU.b .. ppnpriatl a,o!aan1'1111 tor c11ncUna and. lupeI'YlIlq & naI! ot 1::I1>'0tOI'l Wo at-.a1l 1:ae}llct: aot1Y1tial in t:· .. .In .. to 4tt.na1ne whither -:1\1 prowllhna ot tl'.la Part, the r.a1 ... naulaUonl a:.4 i'J'00KUZWI pnloriblt4 -:Mn~lI', aM ~!' .. ~,rca itA ':or.dJ.Ul)u ;Jt an)' contrut ':IUb the AutJlOntl' an '11!11\4r 0~l!1I'1 ',Hh,

(s) 1PPr')Vt ;Ibn. ,t ~::'.: cublllUt.4 ~)' tht Znttf1!ri.t 1r. accol'4anoe ..,Hh .U:n",~ r,o, sr.1:l, l:!, Ir,l:-1ni, wU.tit "mi.r.4!I, ~n. Pl"Ocnduns :et =-,rth in ::Ji:pa.~pi: ~J:.

.. ... ·111 .. ... ...

(0) to review the collection of all payments to be m~de bV or to t6i Authority In connection with operations pursuant to this Part,

Delete aubparagraph (pI . "

(q) t~ consider the budget estimates of the SecretaryGeneral.nd BuGmlt the ¥ro~osed annual budaet of the iuthority to the Assemb yor Its approval In accordance with article 172, .

Delete aubparagraph (r)

Ca) to make recommendations to the A •• embly concerning auspenslon-of the privileges and rights of membership for groas and persistent violations of the provisions of this Part upon a finding of the Sea-Bed Disputes Chamber,

(t) to initiate on behalf of the Authority proceedings before the-Sea-Bed Disputes Chamber lIn cases of non-complianc!7.

(u) to take a ro riate measures In conformit with this Part upon a ec s on n ~ y t e Sea-Be D sputes ~bDr on proceedings /resulting from7 instituted under aubparagraph Ctll; notily the Assembly and make recommendationa with respect to measurea to be taken unleaa otherwise decided7,

(;) to 1saue emergency ordera, upon the recommendation of the TechnICal Subcommission, which may Include orders for the suspension or adjustm~ntrC;l operations to prevent serious harm

, to the marine environment ftri'4ng out of any activity in the Area,

(w) to dtBapprove, ~ on the recommendation of the Technical SubcommiBiIon, aroas for exp 0 tat on by cont.ractors or the Ent~rprlBel In casus whore substantial evidence indicates the riak of serious harm to the ~arine environmont prior to the approval of a plan of work f~r any Buch area,

(x) to establish a Bubsldiary organ, if necessary, for the elaboration of dralt finan~ial rules, regulatIons and prQcedures relating to,

(i' financial management in accordance with articles 171 to 115, and

(il) financial arrangementa in accordance with Annex III, article 13 and article 17, Faragraph ~(c~,

(y) to e.tablish appropriate mechanisma for directing and .upervisTng a .taff of inspe=tors who shall inspect activi~ies in the Area to determine wheth.r the provision. of thl. ,"art, the rule., regulation. and procedures preBcribed thereunder, and the terti. and condition. of any -'contract with the Authority'? plan ~~ are being complied ~rth'

. Delete paragraph C.)

Add new aubparagraph (2) (Aa)

Caa) to exerci.e control over activitie. in the Area carried out by the Enterprise, in accordance with article 153, paragraph 4, and the rule., regulation. and procedures of the Authority,

Add nev .ubparagraph 2(b~)

Cbb) to exercl.e the borrowing power of the Authority in accordance with .rtlcle 174, .. .. .. ....

WITH US AMENDMENTS

, Co) r.vi.w the coll.ctfon of .ll p., .. nt. to b •• ,d. b, or to the Authorft, fn Conn.ction wfth OD.r.tia~. pur.u.nt to thi. PlrtJ

CQ) to can.ider the budg.t •• U •• t .. of the StcI'tUr),-General and lu~tt the prapo.ed annu.l b~dg.t of the Author't)' to the A.s.mbl, for ttl Ipprovll fn accordlnce with Irttcle 172J

CI) to .I.e r.co.mend.ttonl to the AI.eRbl, concerntng iUIPenston of the prifvtleg •• and rtght. of .eeber.hlp for gro •• and per.,.tent vtolattans of the provi.ion. of tht. Part upon a ffndtng of the Sea-aed Dt.put •• Chaeber;

(t) to tnftf,t. on b.hllf of the Authorttt proc.edlng. before the .ea-aed Di.put •• Ch.ab.r;

Cu) to t.k •• ppraprf.t ..... ur •• fn confor.tt, wtth tht. Part upon. decf.ton b, the Se.-a.d Df.put •• Chl.b.r on proceed'ng. 'n.titutel under .ubparagraph Ct)1

(v) to t.IU .... rgene" upon the reco~nd.ttan of the Technfcal Subeoa.t •• fon, whtch ma, inclUde orderl for the .uspen.ton or IdjustDent of oper.ttonl, to prevent lertoul h.r. to the .arfn •• nvtrana.nt .ri.tng out of In, .cttvtt, fn the Are" ' .

(M) to dt"Pprovl~ upon the r.co ... ndltion of the Technfc.l Subcaa.t'lfon .r ••• fot e.plott.tion in c •••• whft. lub.tantill evidence tndlc.t •• the rllk of •• rtou. har. to the •• rin. _nvtron •• nt prior to the Ipprov.l of I pl.n of work for In), luch Ir",

(x) to •• t.btf.h a .ub.ldt~r, otg.n, ff n.c •••• r', for the .llbot.tton of ffnancfll rul •• , "Iul.tfona and procedur.1 r.lating to: ,. .

ef) flnlnctll a.nagl •• nt fn .ccord.nc. wtth .,ttcl •• ·171 to ''', Ind . ' .. " ,

ett) ftn.ncf.t .rrlng ... nt. In .ccordlnce Mtth Ann •• III~ .rtlcl. " Ind Irttcl. 17, p.r.gr.ph 1 (c),

e,) to .,tablt.h .pprapri.t ••• chlnt ••• for dir.ctfng and ,up.rvt,fng I 'tiff of tn.p.ctor. who ,h.ll tn.pect .cttvftf •• in the Are. to d.ter.tn. wheth.r the provl.tonl of tht. P.rt, the rule., regullttons .nd proc.dur •• pte,cttb.d thereund.r, and ch. t.r •• and condition. of .n, pl.n of work Ire being ca~lt.d Mlthl

CZ) CI.) to ••• rct •• control ov.r Gcttvltf., In the Ar •• clrrf.d out b, the Ent.rpril', fn accord.nc. with Irt'cl. 153, plragraph 4, and the rul •• , r.oul.ttonl and proc.dure. of the Authorlt,.

. CZ) Cbb) to ••• rei •• the borrowing pow.r of the Authotft, tn Iccordance Mtth Artlcl. 114.

..... University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

TEXT OF L.78

:.. !h.n ar. henb)" .. ta"U.1w4 the followinc Ol'pn' of tht Counol1l

:.) lApl 1M 1't~hn1:ll COtlllli .. ~n,

~~) E.::)noua PIGM1.'1C C=a1l1io:l.

~. tach eor=i'don .hall be COIllPO'O~ " 1, IIl1m~el'fl e1.ctd 'q tho COUISOU 'J~ft nora1naUon lIT ttl Sta ••• Putl... '!he Council :sq, bovtnr, 11 n.,o~ •• U7' ,iIiC,1!.J t:1 1ftor .... ttl sill ttl lIfT C,ab.bn vith 1'M nr&r'4 t: JCO:tC1Q' anll .tt1.:1.n:y. '

_. Minber.,t tho) O:=1 •• lon, oall :,an aPP1'Opdat. qual1l1cIUol1.l iI: tho arn ;, COatpfHno. ot tbt Coar..1 •• 1oA 1ft whicb th., lI.t .1.cUon. In .,,'aUtins ~a:e8 :)t ~an41dat.. for tl.otion to th. Qommt •• lon, Stato. 'artie. .ha!l bear 1ft ~1M ':ho n.oI4 to wbal' eI:l414at:e. ,f the i1161s1l' .taa4ull of CCtlpttIQt:' an4 1ntep-it, 11th quaUUoa'icn. iA nl"van~ tLd4 • • 0 a. to tuun the .. tt.OU.I tWlOtI1~ of che Com1 .. 1orw.

4. In tb. daoU.oc ot scatben of tb. Coma1adoftl, dllo .Hpri Ibal.l b. pa14 to ::r ne.d tor lquitabl. ,.ocrspb1aal 41,'r1bQtlon &ad npre.entatlon of ,,.01&1

S. So State =q no=ah :!IOI'I thlll caw ponon ... a ,u4J.bto to 1'"0 U tho SUI-I Col!l:Slaalcn. 110 p .... en .ball be ,ltot'14 to '111'\" 1n DOro t~ on. Condadon.

i :A tba .',ont ot the 4.ath, 1nc~p&ol~ 01' rae1ptlon of • Mllbtr of a 7~:':!Ih;10n prior ~c the '):1,117 of bt.' tt::: of oftLot, ~hJ ColIMl1 Ihall a,po1nt I ::"lItor !:-O$ th. .u. 6'lo~apG.1cal I'OSlol\ ~r aroa of l."un.t ~!to ahall boa otUc. f:;r ~.:I r3&1n4er ~, tb. t.N 'Jf the ;thV!OUl Mnbon.

7. 91111".1'1 ot & Coasi .. bn ehal1 bo;.cr ,tllol tor a tI" of fty. ,.an. Tho7 s4&l1 be .11l1blw :~r ro .. 1Jo;lon fer & t~h.r t.roI.

!. lfaatbera ot Coa:a1elloD8 shall h, .• " no t1nanc1~1 1fttu .. ' ¥b6holVIJ' in tl'4J .~tl?ltr rtl.t1n~ to -xplora'lon ~ 4x,1:lt&tlon 1n tht Artl. S~bj~Gt to th.lI' rGlpcnalbll1tl" t~ t~. ~ •• loDl ~pon which eh.., •• rtl, tb-.r .ball DOt 411010.', .',.n alt.r tht 'o)c1natbn of th.lI' tUZlOUOnt, t.QJ 1d1ll'~1al .Ien' or 4a'. vh1cb !os ,roprhtarr 1ft aoool'daloo wUh dna IIX, ~Uolt 14, or otb.r cont1cleDUal !:,.1'omatbn -.:ca1n« to tb.ir Ialovl.q, bJ " .. on ct tb.ir IIuU .. for tbel Autbor1~.

PROPOSED AME~DMENTS

Article 163

Oryana of the Council

Pargraph (1) chapeau rmnains as in L.7S.

Ca) Legal and Technical Commission /17, comprising tho Legal subcommission and the Technical SUbcommissIon

Subparagraph (1) (b) remaina as in L.7S


Artht. 16] Or,lniOrtljiJ'O'unt!!

1. Ther. are h.roby e'C'blt.~ed the following org.n. of the Council'

C.) Leg.l .nd technlc.l Com.illton, coaprf.tng the Leg.t Subco .. t..ton and the T.chntcal $ubco .. l.alon,

(b) Econoatc Pllnntng Co •• t •• lon.

2. Thl reono.lc Pllnntng Co •• il.ton, the Legll Subco .. , •• ton, and Delete par~graph 2 the Techntc.l Subco.lltulon ,h.ll tach be cOlIPoltd of 36 ... b.rl. Etch

•• ~.r of the Council ,h.ll ,ppolnt on • •• ~.r of the Econo.tc Pl,nn'ng Add new paragraph 2, Ca..tllton, the L.g.l Subcoaftlfll'On, and ch. Ttchntul SUbCOMts.ton,

2. 'rhe Economic Planning Commission, the Legal Subcommission, prov'd.d th.t each p.rlon proposed for •• MI.r.hip ••• tI the rel,vlnC end the TechnIcal subcommissI-:>n shall each be composed of 36 qUIUfh.tfon It.ndtrdl •• t forCh fn Inhl .. 164 and 165. memberRo Each ~ember ot the Councll shall appoint one me~ber of the EconomIc Plannlna Co:nmlssion the La al SubcommissIon ar.d t;hc Toc n ca SU com.,. ss on. provid~ that each person propose for mem6err.6Ip meets the relevant 9uahficatlon standards set-rorth In articles 164 and 165.

Delete parasraph 3

Delet. paragraph 4

5. lio State may nominate more than one person al a candidate to serve in the same commislion~ No person Ihall be apccinted to lelected to serve i!l more than one Commi.lion or Su commls .. lora.

6. In the event of the death. incapacity or resignation of • member of a Commission or Subcommission erior to the £ixpirtxl expiration of his ter~ of offIce, lthe Council Ihall appoint a member from the same geographical region or area of interelt who Ihall hold offico for the remainder of the term of the previoul members.7 th~ member of the Council who aerointed him, or that ~ember of the CouncIL who replaced the CounCl member who haa appointed hlm. as approprlate~ shall appoInt a new member In accordance wIth paragrauh 2, w 0 shall sorve the remainder of the te~ of the previous member.

7. Members of a Commiasion or Subcommilsion Ihall hold office for a term of five years. They shill be eligible for re-election for a further term.

8. Members of Commissions and Subcommissions ahall have no financial interest whatsoever In any actIvity relating to exploration and exploitation in the Area. Subject to their relponsibilities to the /Commissions7 Commission or Subcommission upon Which they lerve, toey ahall not dIsclose, even after the termination at their functions, any industrial secret or data which ie proprietary in accordance with~nex III, .rticle 14, or other confidential information' comin9 to their knowle~ge by realon of their duties for the Authority. '

s. No perlon .h.ll be ,ppolnC.d to ~re th.n on. CO .. tllton or SUbCOII.tllfon.

6. In the ev.nt 0' the death, 'nc.p.c't, or re.fgnlt'on of • .. 8btr of • CGaIII •• lon or Subco •• f •• fon prtor to thl ,.pfr.llon of hi. t.r. of offlc., the •• ~er 0' I~I Counctl who .ppoint.d hi., or th.t .. ~r of the Council who r~pl.c.d the Council .t.b.r who hId appotnt.d ~f •• II ,pproprl,t., .h.ll appoint a new .. ~.r tn Iccordanc. wlt~ p.r'gr,ph I, who 'hill •• rve the r •• atnder of the t.r. of the pr.v'oul •• ~.r.

7. ",~er. of • Co .. t •• ton or Subeo .. t •• ton .hall hold offlc. for • ter. of f.v. , •• r.. Th., .hlll be .l'glbl. for r.-.lectlon for. furth.r tlra.

I. ".~.r. of Co .. t •• lon. Ind Subcaa.t •• fonl .h.ll h.v, no f'nanc',' 'nt.relt wh.t.o.v.r In .n, ,ct'vlt, rellt'ng to ,Iplor.t'on .nd •• plott.tlon In the Art'. Su~Jtct to tht'r r"Pon.lbtltt'" CO Che Ca.a ••• lon or Subco-.I.,lon upon w"ch th., •• rv., th., Ihlll not dl.clo •• , Iv.n .ft.r the t.r.ln.cton of th.', functtons, In, 'ndu.trl.l I.crec or d,t. whtch t. proprlec." In .ecorcanc. wl'h Anne. III, .rtlcl. 14, or oth.r conflden".l fnfor .. 'lon ca.'nt to t_etr knowl.dge b, ' •• Ion of th.t, dutt •• for the Authorlt,.


1. £a:h :'~1 .. 1on lball ,..dora ha CuneUon. in &Cool"!IIIICI "Uh .uoh ".i! iIUr. ... n-l UrlcU"" AI the ':0""011 u.r a.4~p"

D. Zac" ~')1IZI1 .. 1on .hlll C"l1IIU1ate ani lub=!, t" th'. C:'.Iftc1!. t"r apFOnl .".:~ t"£1"1 In4 ruulaUona AI 'U,Y ~. r..c .... U7 ~,,:' tho "lC .ohn' conl!uot ot thl ~c:-.l:l .. hnt. ClanoU~nl.

1:. th, !lcLa1cn-oak1nr F"~1t'l."'" ~t thl ':0:r=1311oa. ,bal:: 'bo •• i.bUsbld "'1 .... -.lll1 r_cu!.1Uono Iftd JMcol11l1'"11 "t ~!l •• ~\!~hor1t;,'. l'oClc:::alndadona to ~:: a "~-:'"~cU ;"a11 t "111.1''' :'II':, .1"1, ~. accompanh.! :r • :lu=:tr"J ')11 .. hi U"erSlnc1~. ~! ~ p1r.!~n ln the c:r-:a .. lcn.

12. £Uh Comi •• lon tWl 110.-111 I\moUOft at tbl 'ea' ot the A"tboritl UI4 .hal:' = .. , AI ~tt.n AI .hall bf ... quin4 lor tbl .etideat r-rtOruacl of '" twlcUona.

1'. IA tIM Fl1'foRIIMt of tb ... ".motiona ... oil COIai.l1oQ.Ml', vh.n • WZOpr1. &t. , oonauU &COtbel' Oosai.l1oA or aDJ' o01l,."n' Ol'pA 01 ~he jQUt4 laUona aM 1~. lpeOlalJ.l14 .e-aclt., 01' 1D1 intemaUoaal orp.A1nUon. "L th n1l",,' CO::lpet;aMt lea the nbJeo\-aaUII' of nab ooDR1taUoD.

Eoonoplo tre.:t; .. l!:m'''loD

1. Maben of tbe looDODio naamlq Comh.10D .hall bay. app&'Opriat. :tualUloaUoaa .uoh .. tho.t nl •• ant to a1Alq, ~lIlnt of II1Nnl .... ourc. &0 Un ~1 .. , iAI.ftI&tloDAl tnA. 01' aoonoeLoa. flo .. Counall .ball .n4.awOIll' to laaan that ,he ... ~nhip tulfll. tbe .,.,d for all ap-pIQpn.at. quaUtloaUou La the CoI.lIeloft ... vholt.

Z. fM Coaot .. Loa .hall.

Ca) upon the nqu •• t ot tbe Counall, proPO'. ~&I1U'lI' to '-pl ••• nt 4.os.elou ... uUDof to aoUrtU .. 1D ,ta Ana tak.a 1D lOooJ'llaao. "Ub thi. Coa.laUoa,

ell) n.sew tbe 'nDil. ot d tlOtOI"ll aft.ott ... auppll. d.RD4 d prto •• of nv _t.nab vb1ch -1 ..,. obta1Dt4 ho1I the lna, beU'1a4r in II1D4 thl !At.n.t. ot ~tt. I.a}IOrt1D, &D4 .xportiGl OOuntri", u4 in ,.nioulu the d.Ya1oplll( Stat .. uaq tbell.

(0) lSUt.ne &Ill IUuattoft 111:11, to 1114 to poh ~ •• n' .ttaot ... nl.1'ft4 CO 1a arUcle 150, .ubp&n(!ftpb e,), ~l'Ou€h' to U. attlntion b, tta Statt PU'tl CI'Stat .. Partt .. oODO.mad, U4 •• aPfl'OFlat. nOOlll.DdaUoM to tbe Co=all,

(.!) ,ropel' to the Counoi! tor euh1ll1oft to ,he , .... U, a .,.te. of OOa,.I\JAUOIl tor tndoplq' Stat •• vhicb ''JU.I' ".er ... ttIOt. oauII4 b,. IoOUYiU .. 'n che 1ft_ .. pro9t4t4 lA ar;lol, 1,1, puqnph 4. UteI' a4opUon II, tbe i .... 1117 ot' web t7l'" ot oce,.uat1oA. the EGoDOmiO Pl~ CotaiJ.loll .ball •• lueb noo •• ndaUolll CO the ~ll .. .,.. Deo ... U7 101' tto ... ppUoaUoD 01 tbe 17th. 1A :lono ... I, 0 .....

t. Each Commission end Subcommisoion fthall perform it. functions in accordance wIth such 9uldeITnes and directives k. the council may adopt.

10. Each Commission and SubcomMission shall formulate and submit to the Council for approval such rules and reiulationR as may be necessary for the efficient conduct of lthe commi.sion'!7 ~ functions.

11. The decision-making procedures of the Commissions and Subcommissions shall be established by the rules, regulat10ns and procedures of the Authority. Recommendations to the Council shall, where necessary, be accompanied by a .ummary on the divergencies of opinion in the commission 2£ Subcommission.

12. Each Commis.ion and Subcommission shall normally function at the .eat of the AuthorIty and shall meet as often a •• hall be required for the efficient performance of its f.mctionu.

13. In the performance of these function., each Commission and Subcommission may, where appropriate, consult another commissIon or any competent or9an of the United Nations and it •• pecialiied agencies, or any international organization with relevant competence in the subject-natter of such conaultation.

Article 164 Bconomic Plannlnq commission

Paragraphs (1) and (2) (a'-(c) remain a. in L.78.

delete subparaqraph (2) (d) and substitute new (2' (d)

add new subparagraph (2)(e,

L.78 AS IT WOULD READ WITH US AMENDMENTS·

9. e.ch Co •• t •• ton Ind lubco •• i •• fon .h.tl p.,fo,. ttl functtons in .ccord'nc. with .uch gutd.ltn ••• nd di,.ctlv •• I. the Counctl •• , .dopt.

10. .Ich Co ..... ton and Subco ... t"lton .h,ll fo,.,l.t. Ind .ub.it to the Counc'l for .pprovll .uch rul ••• nd r.gulltion. II .1, b. n.c •••• ry for the .ff'cf.nt conduct of ttl f~nct'on ••

11. Th. decf.ion-.aktng proc.dur •• of the Co .. t •• ton. and Subco •• tl.ton •• hlll b •• It.bl •• h.d b, tho r~l •• , r.gulltion. Ind procedur •• of the Authortt,. R.coa.end.t'on. to the Counc'l .hlll, wh.r. n.ce.s.r" be acco.plnted b, •• u ... r, on the d'v.rg.~ct •• of opinion .n the Co ..... ton or .subco.llh •• on.

1Z. Elch Co .. t,.ton Ind Subcaa.I.~ton .h.tl nor •• ll, function .t the , •• t of the Authortt, .nd .h.ll •• et •• oft.n •• ,h.ll be r'Qulr.d for the .fftci.nt p.rfor.,nc. of ttl functlonl.

13. In t~e p.rfor •• nc. of th ••• functton., .Ich Co .. I •• ton .nd Subco •• t.lton .1" wh.r •• pproprtlt., con.ult tnoth., co •• tl.lon or ,ny ca.pet.nt org.n of t~. Untt.d Hltlonl .nd ttl .pecilltztd Ig.ncl •• , or In, tnt.rnlttonll org.nta.ttonl with r.I'Vlnt COMP.t.nc. In the .ubl.ct..tt.r 0' ,uch con.uttltton.

ArUcl. 164 Icono.lc P(lnninA Coe.t •• ton

t. " • .b.r. of the Econa.tc Ptlnntng Caa.t'lton Ih.tl h.v. IPPropri.t. qUltlftc.tton. luch •• thol. t.l.vlnt to stntng, •• nage .. nt of .tn.tat r.lourc. Icttvttt •• , tnt.rnltlon.l tr.d. or .eono.tc.. Th. Council Ih.H .nd.lvout to .nlur. ttl.t the ... blr.Mp fulfilll the ".ed for .tt approprtat. qUlllflcltton. In the Co •• i •• ton I •• whole.

2. Th. Co .. t •• ion .hltll

(I' upon the r'QuI.t of the CounCil, propo ..... sur •• to t~le.ent dect.fons r.l.tlng to .ctfvitt •• tn the Ar.a tlk.n tn .ccordanc. wtth tht. Conv.ntion; "

Cb) r.vl.w the tr.nd. of Ind f.ctor. Iff.cttng Iuppl" de.lnd Ind prlc •• of r.w .It.rl.l. which .'1 b. obt.ln.d fro. the Ar.l, b'lrtng tn .'nd the tnt.r,.t. of both i~ortlng .nd .xporttng countrt •• , Ind in ,articul.r the dlv.loptng St.t •• l.ang th •• ,

Cc) •••• tn •• n, litu.tlon ltk.ly to l •• d to luch .dv.r ••• ff.ct. I' r.f.rr.d to In Irt'cl. 150, .ubp.ragr'Dh Cg), brought to 'tl Itt.ntton b, the Stlt. Pitt, or Stat •• P.rtt •• conc.rn.d, .nd .. k. Ipproprl.t. r.co. .. nd.t'on. to th. Counctl,

Cd) t.co ... nd to the Counctl for tta .pprovll, upon I d,t.t.tnltton of fnJuty clU •• d b, Ictlvltl •• tn the Ar •• In .ccordanc. wtth Irttcl. 15', p.rlgrlph ze.), progra •• for IdJu.t •• nt I •••• t.nc. in Iccordanc. wtth .rttcl. '51, p.t.gr.ph Z.

c.) .Ik •• vltl.bl., upon the r.qu •• t of • It.t. 'Irt, whtch wtlt ,,cetv. I"Ju.t •• nt IlIhtlnc. putlu.nt to • d.ctlton of the C(hIncf l tlk.n tn .ccordlnc. wtth 'rttcl. 162, p.t.gr.p~ 2 C.,, .xp.tt. Qu.llft.d Ind co.p.t.nt tn the f •• ld. n.c •••• t, to I •• ,.t the Itlt. Plrt, r.c.tvlng the ••• I.tlnc. to .,k. th •• dJu.t •• nt. t.qutr.d to ••• ltorlt. the Idv.r •• • ff.ct. on It •• cono~y of .ct'vltt •• In the Ar.l.


,.

TEXT OF L.78

1. !itchn ot the wpl UI4 t.ctmloal CO ... iOD 11:&11 bay. appropriat. ~ualltlc.t1oDl wob .. tho .. , "ltYDAt to tzplorat10D, uploUatioD aa4 pz'Oo ... iz1« ot a1a.eral r .. ouo .. , oo.uo1o.,., probotica:Jt tbe lII&l'1M tDdzoollllt4' 01' tcoDODi~ 01' ltaa! .. U,n "l"lq to ooe. a1D1Dr aa4 oUleI' ftl.ym, t1l1a. ot t~ru.... t!le CoQ.QOU aI-All •• aTOUl' to IUUft tbat , .... u.n!Il, fIalt1~ ,be DH4 tor III appopria'. cpaUtloaUou 111 b Coaal.,10D U a _1 ••

2. lbe CcaD11110D .ball.

Ca) UPOD the ftqr:c,t ot tbe CouzIGll uI:.t noommen4aUoDi uitb "PN to t~ c&l'l'}'i:lf ~lt ot the juthon.t," fuDoUODILI

(11) nd,,, toJ'lD&1 V1'1tteD p1&DI ot work tOI' aotlvUh. 1A the In' 1D KeoNUlo", wUb arUc1, 155, 'PftIftSlh " u4 IUbalt aJP1'OlIl'1&t, noo •• n4aUoDi to ":be COUDOl1. !he Ca.J.',10D .hall bu. 1ta ncolIHr.Gatufti 101.1, OD the ~u:w1a 't~t.4 in -.Z III u:1 .hall "lIOn f-ill, theftOD to tb CouDoll,

\'; :;~n ":111 rlqUllSt of tba ~ll, tuft"1 .. aotlYU1" 1A t .... 1ft ... , .;1:.':'8 &iI,I?pr1l.t., !:l ~Onsul"UOD u:4 ooUabondcD vUb _ .nU'1 oa~ out suet uoo:LviUu 01' 3t:l.t. 01' Stat .. conotrae4 aD4 npon to the COIUtOl1,

(:.: ;!npu~ U .. Gs:I,Dt. " tq tD'finlllNntal 1apU.oaUo .... of aothUlt, 1.'\ ':: ... ",raJ:

~ t . cue roCo:z:en4&t10:l to 'he- Coucil on tM PI'Ot.o tien ot the 1IIAI'l:1II i ... •• r·"~~ent. -:aJi;!::.!' ln~:J acCO\:ftt the riCV1ll ot ncopac' 'splrt, 1:l that tl,14,

{Cl !'~nNlatc and suba1t to ~he 'CCw1! 'thl :u11 •• nplaUou an4 pnol4vel :,!tu':"!d ~ 1D ar.!~10 lE2, pa..raen.p.'\: 2' (nY, tiklnllDto &ccount all nleY.t tuton' :.:elJ,U~ u .... l!lento .,r tba .DY11O=ID,al 1aplloaU:D11 or aoUyUI .. 1D thl mal

~.rJ I: .. p ,uob 1'\11 .. , neub':iou sn.:l peOKU:". IUl4II' nnlw &Dr1 ncoa:en4 t.: ~I:. C~UIIOU Croa UN to U=I wob CeMlIODtl tblftto .. it u.r 4 ... MO,,,1I&Z7' "1' cl .. 1nbl.,

(e) calc. no=aaen4&Uona ~ ~1I c"u:dl n~ thl .. tabU.bant of .. ::e::J.t:~ ;to~ whi'h I::.al! obl.rre, .&aun, IY&1ua~1 1114 anal,.. 'tI, !"'t,:cf:Sl1:.~ s.)1tntirio :I,~hc41 OIl a "11'.&1&1' 'bub thl 1'11". ad ett.ot. of &O'IhU! .. :'1: ~::t Area ftQ nlpeo; to pollllUo~ =t ~,.=U'!al .nV1I'OnlMDt, ,nallZt that . ui:'1:l1 nll'1l&Uolli an I4ICluat. m:i. 00111'1114 "Ub CIIl COooOft!r.at. ,be !~~:'t::lt:1t&U:ft of tilt CIOn1tOI'~ profZUlle app:roYI4 lI7 the CoUMlll

{i) :"ICOIIIDIa4 ,= tbe CoWlO!.l that PI'OClI~ 11, 1D1t1&tt4 CD b.to.llt ct ,be .h:i;orU7 hton ~,. S .. -a.4 nl.pat .. Cha'bel', 1tl acOONanc, "Ub. tb1. Pan &ft4 t!:. rd.·tant .\nne •• u prodcle4 1n artlct. 18' I

,. {J1 upon ~ ~ 111 the S ..... 4 D1.p&'" CbaIlL"1' ~D 1II'00.c41l1", nll1lU:tl • :";:3 IUO~l'&4ftph (1), a.l:e ncomICD4attoDi to the Co '.-on wUh r .. peet to ~'U:u-el to bt t;a:ccAl

. • ~1Ic; :Bale. nCCl:lllllat1aUoul to tbe CoImoll to.l .. u. "'-·~1 ozdnc, whiob ilia, ";~.:-. .=. o~u .. t~1' tM aulpen310ft -'I" a4.1uOt:ltllt ct ~ptl'&t~ \.1 to ~Y.nt 5Inou. ~.~::2 -:, ~ne CI--1De tDY1l'Or.mlnt mea. Ollt .,t ..aUnU'1 1c.~" .\fta. Suoh :'::I=w~'1:1n. sh&l1 b. taI:.n up bl 'h. Council on a priori" ~I.

. 1, ::a.!c. retJccZMu~aUCft. to t;hI· CoQJlcll to 4.i.oIopJII'OY' ana, tOI':-i) .. -UaUon ;..' -:o::tracton .lr tM :;:nt.l't'I'h. In GU •• vllIIn IU\),untlal .rtcllnol 1n4~~' •• ":-.• :-!s~ ot aUl0\l3 bam to the ~ .ndiO_l)tl -

.: ~It s:.-:. HcoCIHn4a tionl "':0 the COUJ1O!l rtG'U"llntr the cl11'totLon 1M aUPln1i ... ., 1 S~~! lC lnoptoton vho .hal:. wpeot aoU'lU1 .. 1ft the 11'1" ~o !tC.ftllne .

.r n.":tr. ~r.t ,I'O'I!J1:1ne ot thiS Pan, the M .. , n6'l1aUona M4 prooa4un. ?r13::!:ri ':hert·1."\~.r, and 'lui hftl. UII oon41t!cna or In1 OCfttnct yUh thl ... ::;.crl'::· U'5 hinT COllp11.d vit!11

.:: :&l.:~lat. tl" .. ~uot1on c.1l~r4 ",.4 :'.:lu, ~4uoUon author-uUon, on ;O!~l.~ ,t ~!U :.u!:01'1~7 ~nuan~ t., arthlt 151, t=lle,,1.nl an" DeCfall", .. l.nl,n l.-:~::::- ';,!.:.:w:.tI r~r prco1uoc!on .\lth.':1'1:a~1:nJ ::, che ~-;oun::ll'!ft acCOfCl&r.OI ~t,\ oa.,-:''' .. : :!:. tr-:!,,:l. r.

~, !;., :tcb.rs cr Chi :::::ah.Loft ,boll, 'lron n~utlt b:- 'l11 9~&tt 'UO'lj' or : ~ ;.:- • or"~ -:')n.,.mecl. b. &OoomDAD!ftcl_ bv .s .'NUIm.nnt.'Uv • ...LL.l:eil SUt._'A~'1 rot'

PROPOSED AMENDMENTS

Article 165 The Legal and Ter.hnical commission

Delet~ arttnl~ 165 and substitute the followings 1. The Leqal and Technical Commission sh31l be com~osed

of the members of thr. Leqal-Subr.ommlss1on and th~ Techn cal Subcommission. It shall oversee and periodically r~view the work of the two SUbcommissions and shall report to tho CouncIl thereon.

3. The powera and function. of Technical Subcommission ahall be I

(a) to make recommendations to the Council to disapprove areas for exploitation before any plan of work for those areas is approved, in cases in which substantial evidence indicates the rlsk of serious harm to the Darine environment,

(b) to prepare assessments of the environmental implications of activities in the Area,

(c) to make recommendations to the Cou~cil on the prot.) ttlction of the marine environnlent, taking into account the If! ."latul uf recOCJnlzed experts in that field,

(e1) to make recommendations to the Council rogardinCJ the establishment of a monitoring programme which shall obs~rve,

" 1ft(t:18uie, evaluate and analyse by recoqnized scientific methods on a regular basis the risks and effects of activities in the Area with resF~ct to pollution of the marino environment, ensure that existing regulations ore adequate and complied with and coordinate the implementation of the monitoring programme approved by the Council,

(e) to advise the Legal Subcommission on all technical 'aspecta of its work,

(fl to prepare special studies and reports at the request of the Council,

(9) to review and disapprove by consensus formal written plan. of work for activities in the area in accordance with Annex III, article 6,

(h) to make recommendations to the Council to issue emergency orders, which may include orders for the suspension or adjustment of operations to prevent seriouB harm to the marine environment arising out of activities in the Area. Such recommendations ahall be taken up by the council o~ a priority baais.

U) upon the request of the Council, to revi('w p\~ra\lant to article 162, paragraph 2(h) the adenun~ of cnforcemunt mCaSUrli!8 taken by States Ilarh~R \lna rl!()Qrt to tho council theroon, ,


"rtlcl. 165 lh. Ltpal Ind f.chnicll Co..I •• ton

1. Th, L.g.l Ind T,chntcal Co •• t •• ton ,hatl b, coepo •• d of· the etMb,r. of th, Legal Subco_"t •• ton and the T,chnlc.l Subcoa.tS.lon. Jt ,hall overs •• Ind perlodlc,ltt ,tvttw the work of the two .ubco~'.slons and shall rtrort to th, Council th.r,on.

2. Hembera of the Technical Subeommiaaion shall be ou~~i:i~d and competent 1n the fields of exploration for, and explci~~~ior. and proce9sing of mineral resources, of the economics c: l!lir.'!r31 resources and of the protection of the ma:ine environment.

btl 3. Th, pow.r. and function. of th' T,chnlcal Subco •• t •• ton Ihlll

(a' to •• ~. r.co-.endltlon. to the Council to dt,approve ,r"1 for •• ploltatlon b,ror, Iny pl.n of wor~ for tho.e ar.a. t. approved fn c •• ,. fn which 'ubst,ntl.l evld.nc. tndtcac •• the risk of l.rtoul l

hlr. to the .,rtn •• nvtro~.nt;

Cb) to pr'p.r. I""'.tnt. of the .nvlron •• nt.l t~llcltton. of Icttvltf •• fn the Ar.a;

Cd to .... tfco"..ndulon. to the CouncH on th~ pr\)Uctton of th ••• rln •• nvlron •• nt, t.~'ng Into .ccount the vt'~1 or r.cognl:ld '.p.rt. In th.t fl.ld;

Cd) to ",k. r.co ••• nd'llon, to th, Council r,g~rdln~ thp est.bll.h .. nt 0' • -anltortng pro;r .... which Ih~ll obl.rv., •••• ur., .v.lu~t. Ind .n.ly,. br r.colnl"d .et.ntlflc •• thod. on , rtgul. r b •••• the rllt. Ind "'.ct, 0' .ctlvltt., In the Ar •• with r',pfet to pollution 0' the •• rlnt .nvlron •• nt l .n.ur. thlt •• iltlno r.q~l.tton' .r. Id,qu.t •• nd co~lltd ~I~h .nd coor~I~.t. th. iaol •• ,nt.tton of the 8Onttortng proorl.~ 'pprov,d b, the Council;

(.) to .dvl., the L'g.l Subcoaal •• fon on .ll t.chnicil •• p.ct. of ttt lIorlL,

• (f) to pr.par •• ptel.l 'Cudt •• Ind r.portl It the r'Qu •• t of the Council, .

(g) to r.vt.~ .nd dt"pprov. by Con"~IU' for •• l vrltt.n pl,n. of lIork for Ictlvltl •• In the .r.a In .ccordanc •• Ith Anne. III, .rtlcl • 61

(h) to •• k. r'co. .. nd.tlon. to th, Council to I •• u .... rg.ncy ord.r., which •• , Includ. ordtr. 'or the ,u'Pln,Ion or .dJu.t •• nt 4f op,r.tlont to prev.nt •• rtou' h.r. to the .. rln •• nvlro~nt .r;lln9 out of .ctlvltt" In the Ar... Such ,.ca..end.,Ion •• h.LL b. 'Ikln up b, the Council on • prlorlt, b.,t, •

(I' upon the r.qu.lt of the CounCil, to r.vl.w purluant to .rtlcl. 162, paragr.h 2 (h), the .dIQulc, of .nforc ••• nt •••• ur •• t ••• n by Stlt.S P"tl •• and r.port to the Council th.r.on;


..... "'!,A V~ ,-»"&;In ""'11:1'" ~ D

.~~U~~~~~~~~~~~~P~~~~~~~~F~~t=O 4. ~m~r. of ~e L~.l~~ill~n~ell~~rKM '&~"I ~ to practice law 1n accordance w1th the lavi of the 1\lt4 or ~~

they are a national and who haYI lubltanUal Ixpenhe U\ nlt' .. r resourcel and environmental law. aw,

5 The powers and functions of the LQgal Subcommission .hall bOl

IC) to prepare studies and reports at the request of the Council,

~l uPQn a tindinq by the Sea-Bed Disputes Chamber on proceea1nga /resultinq from 8ubparagraph (ill instituted in accordance wrth article 1621 ca~a9raph ~, make recommendat1on. to the councIl w t respect to measures to be taken.

1. Amendment. to the rules. regulatione And procedure& may be propo~ed by any ~omber of ~he Legal Su~commis8ion, Upon the sUbmIssion g~ A.R!2POSAl Ame,n"f!!!'I!~, _the LegAl Subcommission ahAll liave 11l~ay. ~o adopt by congenBYS an amendment Addre.d~9. the i.~~e rA~8!~ .. u...lhe proposed amend -zDiii£:

• • • 'w • - -

5 lh. power. Ind functtons of the L,gl' lubca.-i •• ton .~.'l

c.) to adopt .nd, tn tht CI.t of rul'l, r,gullttonl Ind ~r~c.dur •• referred to tn Irttcl. 162, Plr.graph 2(n)(11), provtsionlll, IPpl, the rul •• , rliulltion. Ind procedur •• of the Authority t.klng into Iccount III rel,vlnt flctor. Including 11 •• s •• ents of the 'n~t,on •• ntll i~llcltton. of Icttviti,. In the Arel;

(b' to k.ep .uch rul •• , r.gulltton. Ind procedure. under revtlv Ind ldopt the. and, In the CI •• of rule., rlgulat1on. ~nd procedure. ,ef.rr.d to tn If tiel. 162, plrlgrlph 2 Cn)(tt), provisionilly apply .uch I •• nd..nt. th.reto ••. tt .IY dee. n.c •••• " or de.lrlble;

Cc) to pr.plr •• tudte •• nd rlPort •• t the requ,.t of the Council;

Cd) upon. finding by the S'I-Bed ot.put,. Ch •• ber on proc.edings Instltut.d tn .ccord.nc. wtth .rttcle 162, plrlgraph 2 (t), to ~k. reco .. endltton. to the Council wtth re.p,ct to .ea.ur •• to be taken.

6. el) Th'~lgll Subco .. t •• ton .hlll conv,n, withtn 120 dlY' of the .ntry tnto fore. of tht. Conv.ntlon for the p~tpo.e of adopting the rule., regullttonl Ind proc.dure. of the Authorlt, r.ferr.d to In plrlgraph 4.

Cb) lh. L.gIl Subco •• t •• ton Ihllt hlv, one ,far frol the dlte it hll convened under p.rlgraph (I) to Idopt lh' rul •• , r.gulltlon. and procedur •• of the Authortty. The d.ct.ton to .dopt rule., regul.tton. Ind procedure Ihlll be tlk,n by • ConsenlUI of the eeebor. of the Legal lubcOlllltlllon.

7. A •• n~.ntl to the rul •• , regul.tlon, .nd proc,dur •• mlY be propol.d b, Iny •• ~.r of the Legll Subco •• t •• ton. Upon the .ub.'I.ton of a prapoled I.,nd.en' the L'gll Subco •• t •• ton sh.ll hlv, 120 dlY' to adopt by con •• nlu •• n a.tnd.tnt addre.,Ing the '.IU, r.,s.d by the proposed ••• nd.ent.

I. Should the L.gIl lubco.t •• ton flfl to r.lch con.en.ul an the rul •• , r.gulltlon, Ind pro,edur,. of the Aut~ortty or Iny I.end~entl th.reto wlthtn the tt •• ptrtodl Ipectfi,d In parlgraph 5(b) or (6), II IPproprtlte, It .h.ll wlthtn 30 dlY' of the end of the tl~e p.rlod, .ub.lt I r.port on ttl work to the Counctl •. The Legll Subco .. l.ston .1" how.ver, dectde by con.enlu. to •• t.nd I tt •• p.rto~.

9. Should the Counctl r"ub.tt any rults, regullttons or proc.dur •• , or .ny I .. n~tnt. th.r'to, puriulnt to .rttcle 162, p.ragraph Z Cn), the Legll Subco .. tsston shall r.conslder th •• tn Iccord-.nc. wtth p.rIQraph. "1, Ind r •• ubatt th •• to the Counctl for ttl .pprov.l. .

- - - - -University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

.. ' - - - .. .. TEXT OF L.78

SOBSlC!102r D. TIll S:CBB'!AlW.f

1ta s!::!M!!!!Cn.1. 1. fbi SocntQrie.' .hall coaprilO • IJUI'UCl'J'-CoMrcl ml IUcb IWt r .. thI

.\uthorl tr q ftquUo. lbt S.Ulft~D:lft'~ .1-.cl1 lie .100to4 b)" ~ .t.lllllb17 Upoll \hi ftCOCllllltDl&t1OIl ot the Council tOI' CI. tou-"aC'z ton C'JIIl Ihclllle olJ41blo tor n-.l.otloll. !II .hfl11 be thG ch.!.et Ioill1A1ltzaU .. 0lt111:)1' ot tb:I Authol'1t,.

2. • SoCI'O~~A:l1':.l .hAll "ot 1zl tM' c"pc.~U1' ill rl1 .''U.n(' ot ,bel !es .. b~ .m of t..'11 Couaoll, ad of NoT IUII.W~ ozpnt, :n1 .1l&11 partOfti such :I~ber r.!B1D1.traU'IQ tIUIeUona .... c.. ... OD»"ultod. to hi. 11:- IJZJ¥ web ozpna ot tID .:.uthorltr. .

5. Tho Soc:'l~aozoQl .bi1 .... CIA QllftUal n;ort to tm 1.I .. IIb17 Oft tile _rk of tho ~ut!:~I'1V. •

Thq 'k.tfiistL1f3'bcrltx

1. The ."'.£t ;t tl"A ~ut..~l'1tr .JWl corullt ot .uoh qualU104 ,wftt1t10 UIl tecl:m1cU CIId other !,lOl'tSomtl a.e lII.V ~ I'1IquiftI1 to t".a1tll thrJ ed:dnbmU.,. tunctiOftl of thl ~utt.ori t:; •

2. Tho pc.."'N:Ount colll1clur.t!on 1ft th:a i: OM t~nt Mr1 Il:I'plo)"lOn' ot th,· ltatt 1m ill "10 d.1~l'D1neUon ot $11011" oonUUoftl ot aoZ"l1:o .hell ~ flo SlCUft omplo~ •• ot ,bel b1sbol' .,UIIlL\.;. ot .tllouIlOJ'. oollpOt.1nol) em lIlbari'"/o SuIlJoot,o 'hi. cona1clorct101l, 4uo I"Opz"Il .bell be P:.1! to tbel 1aponMOO of I'\tcM tiAI the Ito.tt OD p..s v4..40 a. poa=pb1c.~ br .. ta u poo.1bLl.

,. T!1I dcIt olsall be ap:,»lAt04 ~ thl 8oolOtcq-CoDIJI'al.. Th2 tua &D1 ,:cDlUlon. on ~rh1:h t!D .tctt o!'.e11 be :.ppo1nt.l4, 101IIIUIOft'.to4 a.."2! 4.18111.104 1Iu\l1 1'.e 1.n acc~1"lm:o wUb lila ruLl., ncu1c.t10ft. :oAt pI'\tO:l~u.. .... of tllo Authol'1t;r.

Iftt!!:n&tlon;1 o!sj.mcwr t.n4Ari4:t:JDU1t1" ot tip Stcnt;r!M

:.. In t),. PlI'fOftlt.ftct ot thdr 4uU •• , tho SoCl'3tL'.I1-Coh:lftl !.nl tho Itdt I;u:ll :tO~ M.t cr I'\tceiYw laatruoUcu fl'Cli ~ GoWn:I»ftt or !zoa M1 ot,,1' lOVe. ~ztem:l to t1lo Atatbol'lt"J. Tho,. .bt11 :otl'dll fro. f'zq eotioll ~rb1ch aJ.cb' IOn.at :n t.'\Q1r po.Lt10D U lIltoftL.'\UoD&1 ott1c1~-.lI ot stu :'uthodty nQOnl1blAt olllT to '!~ .:.uihorltr. :~c4 str,~ PM~: WllbrtC'.Ja .. to 1'31~\l~' ':I» :.solu.1"'1:- iIl.maUo~ .:b&ttctal' ot t1" :upou1\1lJ.t1u of t~ S,CI"O~"-Gtnol't!1 rJlll tbe .Wl tnl lICIt to .. ole b !:iClUOftOO tbCIa 1ft tba Ulc!zu;o ot tbo11' ft.pou1b1Utlu. !ZQ" YlolCl.t1:1D ot l'upcu111Wt!)I b, c. .ttoll ~=""r Ihrn be :N~mtt04 • .0 ~pp:'Opri&te :dmi:l.Ut:dl~ trUnmcl. ~.s !,raY1404 1ft the l'Ul.I" I')rJbUcu m.l ,l'3uetum. ct tbo ':'ut:"I'1V.

2. ~ S1en~,:lCft'~ CJd ~1'.o ddt ab.."\ll ht,\'O =» tJ.a::AClel iDtoz'l2lt ·.m:.~~~r !J: :,n:" ... t:t1yU~ nlAUDr to .=9brMlon em o::,ld tr.tton lIS ~I:. :oZ'O::.. J:Jb~=t ~ to'l.1!r %"lcl=DS1UU~:. ~ ~ ~uthol'1,?, t.1O~ ';lCl.l I::It llic1olO, ~Yen :.£ter tl» tora1Ar~l~c ,t th:)u ~JIlctlonl, '"n .... 1D!.uabt&l _Oftt ~r 4,.,k wb£ch it t-r:~r1o~"":,, 1.,: '\cco1'4c1Co1 ~'1tb .:.mats Ill, -zUcle 14, 01' otb,r colltJ4,nU:.1 i:!Ozu.tiOIl ::t t'Ocmrd:.l 'II:lUQ O')~ to ~J.r 1=Nlo4I;o br zo~n ot tbe1r ott1cW b~1.u ''it!: "r ,n Jo:1~ ':It t:!:o .... .:~hot1t)".

,. Vlo1c.t10M or tho obUpUou of III ,wt !mm.1' ~t the ':'utlJol'1'1 lOt tor.!:

-

in PCl.nlftPs 2 ,b1l, :Ill tho zoqu .. ' ot It. Stato ,en;, ctttaotocl bT ncb YiOlaUcll, or & utunl 0:' ,t.1:i41ccl. POl'lOD, lPOuom 111' ~ Su." '-"1 U p!lnJo.i 1ft uUo1e 153, p~~ph 2 (11), _ 2.lt.:cW br ncb Yblc.t1:1Il, 1:10 nbC'tad b:r tho lutborlt;o ~t tho .tdt aosOar c"lloor:ta4 W a. '1'1'tnmAl ,l.,,1,JnAtod. b:- tbel 1'Ulo1I, l'IIfIIl~UoM GZIl ;rac04uro'2t , ... " :'ut1»OI'U,.. '11'4 pcz-:r e.t:"otccl ,hell Jo.a.Y:I tho ri,:t to ~ part 1~ ~ho pl'OCICI~. It the tribuDlsllG 1'000-.oDll., .. ~ontaz:r-Co_l'31 UsoU. !!.1U1l3 ~ .tdl.IIIilIIIMI' COllcoma4.

.;. i'hQ ol:.bomtioft or tIIo 1"01ntAt p1"OYi.101l8 ot tbi. Artiol!» .hall 110 iIlclu404 ~ tN MOl, roplr.U"u NIl pnced.u!l)' ot tho !utl»rJ.t7.

- ... - - -PROPOSED AMENDMENTS

J-

- - - • III • • • L.78 AS IT WOULD READ

WITH US AMENDMENTS IUIscrJOff D. ftt: S:StlJW.!

Article lEE 1'b' Suer: tr.rv./':SllCrrl

1. tbt Sccntulr.t .ht-Jl ooaprllC _ B.tOl'Ot~Mrr.1 I'm IUcb .td'r ,. .. tID hthol'1t, '!.."¥ nquln. 'l"ftO So:ntlll7-Gonol'd .bcl.l be .loot04 "7 tb) -'a .. .tI17 upoa thI ncocaoDi.Uo" ct the tollt\cll tor la tOGJ'o:'OC'z t:ra r.n4 .hLll tie ou..~blo tor ' ..... ~o"oc. Be .hfl11 be the chid lolalnl.tmtlY. 0111001' ot tho Authori"..

2. !!. SocJO~.(;o~l':'l ,WI cot in tMt caPt.'''7 In tll ... tirlf'e ot tbe :"80"'17 .nS or tlla Counc11. :.n1 or "'1 IUba141~~ ol'lfMl, CII4 .1Ir.ll porton IUcla other rda.1nbtrr.tho f\lnctiOM , .. c.ro oUn.loci to bl. b,. &Ql' IUCb ol'f'lll" ot tID .wthorU.r. .

,. 1'!It SccntU)"-GtMral IW1-. CIA 0IIm&IJl .Port to ,tie La .. lllll, on t!lt WOD ot ~tAJ ~':tIIol'1t1. •

th: .~r/fiWr.fflt'lC.lUZ 1. fbi .tt-.It ot the .lPth,rl". IMll ceMlIt of ncb qual1!104 Id.nUtlo ml

"cbn101l _ other !'Croonnol a. ~...,. be Nqu1ft:S to hUil tbI e41JA!.trau. .. t\IZloUOftl or Ua !utbi)ritT.

2. fbi.- JUNDl'unt ...,n.1dtrt.t~on 10 t:c I'CcNibn' Mol .. cp1o=,-nt ot t!:e .tatr aaI in tl" "~:.rrJ.N.~lon or t;:dl' eonUtloftl ot 10"100 .hcll ~ t.J "CUI'O ,.plq1W •• ot tho) hlrhct.: .tt'.nI:~. ot "t!l:bnc" ooCl'Oto~co MI! Iftt~r-U:-. ~bJo:t '0 thi. 00n.140rctll)r. • .t~ ftC~ .btll t-t p:J4 to tho larol'tlnc:o ot nCZ'\l1t1n.t t!at .telt OD M vUe • p~r.:fohlca.l ~r .. l. Cot poadb1.t.

,. ~ .tr.ll ab&11 be ap:w;tiAtod :'1 tto 8ocnt~ml'e1. ,.., .. ,... lid CIOIII1Uon. on '·;~ch tin Itdt ot:rJl be :PilCJl1~, nllUftl)I'C\te4 "'" duai • ..,d IlW1 lie In Ku"'rlo'D vUh IN l\llel, ftl"ld&OM :oM p&'OoJIlu.n1 ot tba AaltborU7.

1ft!,.t., 1~ L'''rnljU?o-l s·sr,:~r ,rill"l • ..,nIL'jUIt1.9P or tlp tesAlt;[hS

1. IA UA porf,..,.,,01 ot tA,ll' .UU .. , tJo 3tczotN"1'4lnol'Cl ml tl» .Wl .. '\&11 IIOt ... 11 -:1' ..,0:."'. lna'r~ctlsll' ,~. :rq Gov"~n' or tl'OD ~'" ot"'l' eoQI'O! .ll1Iratl to t:a :lIthoI'Hl. !hoI *J1 rorrr.JD m. -If.)" caUOA ·'blsb at,t,. JOrlect on 'Ml~ po.u!)" t~ 1I\~.n. .. U~1Ial or!ld 'l, ot 'hi ~tIIorU7 rupon.lblt "n1: to ..... :'uthor"~·. ::cn t\l,~? , .. ~t:. \I'.brt·~. ~ 1':."d IL. u:blhd.- lat.a!'!1CU.or..:l chan.cln 01 ':0 rupolUI&'uUUa or t ..... "'Cl':ta.7"oGuIoI,rl :n.l tile .wt uri not to eull ~ lDllIer.:: tNlD 1ft 'n • .I"":N!r:ot ot tholr .... ~AtlblUUce. :.n, dobUoo ct n'pClltll!11U\!,u ~, r .trlr 1I.:b'Ir .. ·11 '" ~~"o4 to r.!I!ll'Oprl&t. a.t.Lnb~:TU"lt trlbv:1c.1 u ,"-,lid 'ft tbe .. ~J.." "'rAl=thM u.s ,..,.turo. ot tile .1u\!.:rU,.

2. fto..1 s.snu",.·e:ftCrJ .Id ~ .&;ost tt.-ll ~ ... :'D tbtadel latal':.t •. S..,.WI' In ::.:. r~t!'t" ... n""ft.r to es:"h~UOD em .:,101 "".loA !a til. .:.roa. ~bJoct to t:l.1b ... c,,~1;'1l1U:. to tt.~ .!l.It~rtl1, tC,1 _Jl IU' .I:ecloec • .,9Ca dlel' Ito tc-.11:.:.rJ~Ioft )1 toull' C\::..:t':tI •• -n" l&dlaltrtrJ "01'1' or ,.\t.:, ~:.:l I. loRPl'lo~,ao:' 1:1 ,\:CON:llo.. ·4U!l ""'""I Ill, ·, .. c~ U. or otb,r coatu."U:.1 SntoraUOQ )r er.:DII'd:.1 't~l\:ol 0')1WIf 10 t."lr IaIOVIoqIt ~ no.- at U.Sr .ttsc:bl 4aU .. ,-St." 01' ~ be"~ .,f U4I "'~tllDI'U)'.

,. Yiolc.tlona 01 IN o\llp.UOAI .t • • \sIt "'1' 01 ~ !uUorit, lOt fo~ 1ft J~Jh 2 .hall. on tbe 1'04""" ot • ItGto ':..r17 .:r.ot04 " .. ,ell riobUoa. or a K'!Unl or ,11:rt41crl penc", ',0,,*,"4 br • .st4~ '1oI't7 AI "o.Uol la .rt1olt 1", ~pb z (\), r.nl ~t:ct04 br I\Icb \'lol:.Uol\, )0 I\Ik"\O:. 11, ~ho lliUloI'1\7 ep.1ll&t tho .t.'\lt eonbor soncom04 to a trlhnd '.Jo&.sr.aW ))' t!Io n)u, "~UOAI Iohl pl'Oo:luzo. 01 tho :.utborU,. rM 'ut, &tractd 1lI&l1 1It.'IO tin Ii,..t to tob pori in ~4I POCCl~b1f"I. It U-.. trtWMl 10 noo.o&l4 •• \III .C"~aoral ~ 411C! .. tho .WI._.r ooooe ....

4. h .1eJ,omUon ., tho ..,l,e'tCA' ,rowtalool .f W. uUd. .hall lie 1AClubl ill t!xI 1\1111, nl'llal1oM IJII rrooet.nl .r the :.u.rtV.

.- ... -'


1. The SoCrctN":"-COMl'r.1 .hAll, or. =UU'. vi,t;!Un the eO:pltar.co ot tilo :.'Jt)o.ol'l~h 2IrJat wH~la t'znllPaenta, vJ.~h tho ~Pl'l'''''L'l ot tho Coundl, tor :on.u1 tcUon rl'.1 :o-opornUon vi ~ LDtol':l3tioMl :"..1 r:on-'I'n'Ommonbl nrr.l'.!:~t!ono n;c:o~:c:4 br tbG CCOl:om.o d Soclrl CouncU 0: ,;ho t1n1to4 U:\UONI.

2. :.n:t O:yrAlIC.t1cll \lUh ~lblch t .... SoC:'tt:'.l7.G1DU'U 1" ...... 03ntel'e~ uto .1:l .. .zr:o.qellOllt 'd~r fI:z:-~",ph 1 w¥ 4011«llcto Npl"'J,"ntc.tho. ~ :=.Uoad. c. olllQ1"'Ia1'. :IIC~~ ot tho; ~r.r:1\I ,t tho :.u~n.tJ lA a,contnco vUh tJ".o 1'\1101 ot 1II"'Jc04un of ~-v lUeh ~Z"r..n. hoClO'iul'OI It'dl b. oltr..bUaI»4 Cor ot.t:oJA1.ro6" ~ nov. ,1 wch nr .. nbdloAO lA r,pJn'O'n.:.to ~UOI.

,. ~ ~C1'Oter.:-Gc~I'I"~ "A.~ 4htrtb-.ato ~ StAtu Put1.1, vr1~~ft 1'0,0". rlb:u tt"t ~r t!loaO =Il-..,\'nr=an~:-J, '&"fW&:.t1cna ,n .u~ joot. 1ft whioh tb.:, MYI:! ~r.dr.1 :c.ter.C(f :om ',lUeh .:u'O l'Olo.~4 to tbJ 'JIG'" ot t~ ~ud\ol'1t:·.

S1:BSE::I01I' E. 'l'!! ZUJERPJlI2

Stich 119 Thq ia22m11Z2

~. "'.0 ::ntorprbo Ih:.11 ~. tho ortr.D ot tN .1utbcr1~ ub1!b :aht.ll CtZ17 out ~.':t!"H!.QI !.."\ ~ho ~r. dlr:~t!7, pa~'lt t" :,l'~tclo 1", Ft',r:-,;npil Z Cal, u ....,11 ~:I ";rcnSPOl'~t!.or:, :-l'OCOIl1nf cnl :lerlclotin( of -ur.:ft'.ll ::lC;'''''rc4 tl'Oa tho _:"--0:0.0

2. nao ~tol'Fbl .hrll, '~UhLn tl» rft'.DO'IOI'I: "t ':tlo LAtcrr.&.tlollAl lcrt.l r"nor~ tr ,: ':J'.o :'~th"r!tl, to.:-."'" .::cll b.;::l ::--PAc1':~' : .. 18 pl'Ori:l04 tor 1c tba Str,t' ... ~ ao t Cntb 111 ~a r/. 'the tnt.orpl'1~ 4"~1 :oct ill llocolll:.nCQ "UIl tba ,1"'J'rlden. ot ~h C;,ny~nt1oft c.n4 tho r~., raS"J1:.tionl em proc:eliUl'CO ot ':ho ':'Jtl~or1t11 :'1 '1011 ~ ~ho f'lr.ol"'.J ;oU:b. at:-.b!!2ho4 ~y tl:;, :.J:lc::b1:r. :.:d .hc:.!l ",;~ rll: :,e~ ~ ~tu Ura~U'/u ;on! :on'!:ol oC ti"'=I'J'm-=!~.

,. ':!lo :ntel1=r..oo 111::'1 heo"o Lt. ;tl't."\d~r.l F:!".e~ ct ~uolr.o.o :,~ tho Net :t ~~.: ;'·.1~r.orl~1.

_. no.: :r.toQrLlQ .h'J,l, !D r,::colllrnc; ',Uh ~.I'Ucl: ~n, ;r.:r.v-~ll 2, :nl ,:.r~x ::. :r.i:lo :1, '~:I ~.,Uocllv1th lIuch tl:n41 t.. it -:::.:,' r::qu!r= to :er::r out :'·2 !".l.ft~':1:r.11 ·~A 11: .. 1: r::-:h.: Uctlnolon' ". pr,.,i4o! !on ~.:':!.:l." :-!.! :on!. o,:t'..;:, :-:.:. ':~r.'! j!:")'/ui:r.a )! '!~.!, ·;or..,.:nuon.

- - - ..

SUBSECTION E. THE ENTERPRISE

Article 170 The Enterprise

1. The Enterprise snall be the orqan of the Authority which Ihall carry out proscecting and activities in the Are~ direc~ly, pursuant to artIcle lS3, paragraph 2 (a', as "'e11 as transportation, processing and marketing of minerals recovered from the Area.

2. T~e Enterprise Ihall, within the framework of the ~nternatior.al legal personality of the Authority, have suc~ :ogal capacity as is provided for in the Statute set forth in ~nnp.x IV. The Enterprise Shlll act in accordance with the P:::l' is;.':,ns of thll Convention includin 0111 rovisions a licable ~-fE~tractors, unless such Cr.OV1S ons ex~ress1y exe~Pt "t e ~nter rIse, and the rules, regulations and procedures of the A~t:.10r t~· , as well.~8 the general policies established b:t the il.tt!uHrbly, and s:tall be subject to ~he directives and control 0: t:he Counci!7.

'lrd;raph 3 as in L.19

4. The Enterprise ahall, in accordance with article 173, paraqraph 2, and Annex IV, article 11 (bis), be provided with s~ch funds as it may require to carry our-Its functions, and shall receive technology aa 2rovided in article 144 and Anney. IV, article 11 (bis) lother relevant Drovisions of thlS Conventlo!!,/. - .

- .. .. .. -

WITH US AMENDMENTS

Arttell '" Consultl'ion Ind co-op.rl,eon wtt~ tntlrftlt'tftI\

Ind non-povern.en'll orAlnt.ltton,

1. The Stcrellry-Generll Ihlll, on a.tCI'1 wtthtn the COeD.t.nc. of tht Authortt" .Itl lutt.ble Irr.ng ••• ntl, wtth tht Ipprovll of the Council, for conlultltton Ind co-op.rltlon with i~t.rnlt'Oftll and nongovlrn.-ntll orgll'ltlonl rlcogntltd b, thl lconoatc and Soct.\ tounc'l of thl United Nlttonl •

• 2. Any org.ntlltton with whtch the Ster.tlry-Generll ha, tnt.ree Into In arrang ... nt under plr.gr.ph 1 •• , d.ltgn.te representltives tc Ittend II ob •• rv.r •••• ttng. of tht oroan. of the Authorit, in .ccord. with tht rul •• of proc.durl of .n, luch org,no Procedure shsll be e.t.btt.hld for Obtlintng the vttw. of .uch orglntl.tton. in Ippropric c •••••

s. Th, '.cr.t.ry-G.ntrll .. , di.trtbut. to It.te. Plrti •• writt.n rtport. lub.ttttd b, th ••• non-governa.ntll organlz.tlons on lubject. tn which they hlVI IP.et.l coap.t.nc. Ind which art r.l.t.d to the work of the Authority.

IUBSICTION I. THI INTII'IIII

ArUet. 170 Th. Ent.reria.

1. Th. Ent.rpri ••• hlll be the or,ln of thl Authorit, which .hlll c.rry out prolPlcttng .nd Ictlvltt •• tn the Ar'l directly purluant to Irttclt 153, plr'orl~h 2 CI), I. w.ll- a. trlnsport.tlon, proc.s.lng Ind .,rk.ttnt of .fner.l. r,cov.r.d froa the Arl.. '

2. Th. Ent.rprts •• hlll, wtthtn thl frl.ework of the tnt.rnltton.l legll plr.on.ltt, of tho Authorit" hlv •• uch legit C'PICtt, lit. provided for tn the St.tut. I.t forth In Ann •• IV. Th. Ent.rprts. .hall Ict In .ccordance with the provl.Ionl of thl. Convlntlon Including .ll provl.ton, appllcabl. to contrlctor., unl, •• luch provt.tonl I.pressly ..t~t the Ent.rprll., .nd the rules_ r.gul.tlon •• nd proc.durt. of tht AuthorUy.

s. Thl Ente~ri •• 'hill hlv, ttl prinetpil plle. of bullnt •• .t the .I.t of thl Authorlt,.

, 4. The Bnterpri.e ahall, in accordance with article 173, paragraph 2 and Annex IV, articl. 11, be provided with 8uch funds it may require to carry out ita functiona, and ahall receive technology aa provided in articl. 144 and Annex IV, article ll(bi.

- -

,


'.' ~,

...- -- - -TEXT OF L.78

mszmo:r r. rJlIlJiCtl.L:.Jl1I!1DamS ar !IE ~U'BOU'rr

. qUais m. M' of tip :'utherUx

The twill. .,t thI .\utbori t,. 1IM.11 lAo1u4o.

-

(a) r.aac .. o4 coDtribuUoD.l ar.40 b, I.t.o PuUo. 1ft c.ocol'lcnco vU .. 'I "r.iclo 160, ~,pb 2 (olt

(b) ttud. tnAltoZft4 boll tllo Elltol'Pt1., 1:& C\:loo:V.DCO vith !Mox 1V, :.nlclll 10, portICl'l\ph 1.

-

(c) ~C:l1P" ot tha ~tborit"1 • .rit1srr t~!I Actl'1itl0' in tbo !ret. in ~ccozd:."1co ',,1 c..'l .\amos III, :l.l'tlo1o 1" .

(4) laeD! 1'0011'1'114 1D aocollluOl nth ".zottola 174. I\IIl

(0) ~IUDtU7 oonV1lNtloll. a\!o II, ltd •• panioD or othor ontit1oa.

~lotG~a _r~ 1ud :» ';';Sl!ontt

Tht SaOlO~IIOtl\l .hall Pft~ _ aubaU "to tbo Counol1 tho ~ bu4aat CI!lt1::ze.~. ot tba !.utbol'1t,. Tho Co_ell tWl OOD.li44S' com ,,,bait ~o tho ~~ocl:lbl:' the budtot o.Uar.t:!., to8'OtboS'vUb "JIl 1'OcollllllOnl:-.Uoaa thol'Oon. !!Io :. • ..,01117 ,Jo ... -.l.! eonai40r ml t.fl1Z'01I:t tb.310 lIU1Scet g,ttmb. 1a :,coorl!Nloa vUh en1C1.4 160, p~ph 2 c.,. .

- - - - - -PROPOSED AMENDMENTS

Article 171 Funds of the Authority

Chapeau and paraqraphs (a), (b), (c) as in L/78 ..

-

lang (d) loans received in accordance with article 1741

fe) voluntary contributions mace by State Parties or other entitie~~~1 and

-

lli (t) payments and contributions made pursuant to article

Article 172 Annual budget of the A~thority

1. The Secretary-General shall prepare and submit to the COUncil the annual budqet estimates ot the Authori~. The Council shall ~on8ider Lind submit to the Assembll1 the budqet estimates l, t0gether with any recommendations thereon7 5nd submrt a proposed annual bud7et ot the Authority to the-Assembly. The Assembly shall cons der and appr~ve lthese bUdqet estimate!? the ptOrsed annual budget in accor-

ance with article 160, paraqrap 2(q).,

2. If the Assembly does not a~prove the proposed annual bUdget Ot the Author~ty, the AS98mb y shall r~turn ~t, to~ether wIt the Asaemblr's recommendatIons ~f.ereoQ, to the Counc~l for reconslde::-at on and resubmlsslon to the Allsembl)'"

- - - - -L.78 AS IT WOULD READ

WITH US AMENDMENTS

SUBSECTION'. FINANCIAL ARIANGERENTS 0' THE AUTHORIT'

Article 171 Fund, of the Authority

The fundi 01 the Author't, ,h.ll includ.,

Ca) ••••••• d contr'but'on, •• d. br St.t., P.rt'" In .ccord.nc. with .rt'cl, 160, plrlgraph 2 Ccl;

(b) fundi tr.n,f.rr.d fro. the Ent.rprl.,·'n accord.nc, w'th Ann,. JV~ art'cl, 10, p.r.gr.ph 1;

(c) r.ee'pt. of the Authorlt, .rl,'ng fro •• ctlv't'" In the Ar •• In .ceordanc. with Anne. III, .rtlele 13;

Cd) loanl r.e.lv.d In .ccord.nc. with .rtfel, 174,

C., volunt.rr contribution ••• dt b, St.t •• P.rt'" or oth., Int'tl •• , and

Cf) p',"ntl Ind contr'but'on ... de purlu,nt to .rt'ct, 82.

Art'el. 172 Annu.l budatt of th. Author'tr

1. Th. S.er.t,ry-G.nt,., Ih.ll pr.p.r •• nd .u~'t to the Coune" the .nnull budg.t ttt' •• t •• of the Author't,. f~. Counc'l .h,ll con.lder th. budg.t •• ,I •• tt •• nd 'ub.lt • gropo •• d ,nnull budge' 0' the Authortt, to lh. A •• eabl,. fh. A ••• ~l, .h,ll con.lder ,nd ,pgrov. the propOI.d .nnu'l budg.t tn .ccord,nc. with .rt'cl. 160, p,r'gr,ph 2 Cg).

Z. If the A ••• ~l' doe. not .~prove the propo •• d ,nnu.l budget of the Author't" the AI •• ~l, .h.'l return It, tog.ther with the A •••• -b',', reco ... nd.t'ons ther.on, 10 Ih. Council 'or r.con.ld.r,tlon 'nd r'lub."lton to the A ••• ~',.


TEXT OF L.78

'II!9DMrn;tfplIgtborl , .. -1. '1'ha .oollb'i~uUoU ~t 8t.to. '"ztlo. roton:04 to iA l'.niolo 111,

aubput-I'I'Glib (6), .a.u tIo ptJ4 JAto '1 '11001:.1 Aceowat to met; nQ l'A&lnhtl'e.~hQ 0zpoMO. ot t.bo :'ulbori'1 waUl t!Ia .AIlhri.ty obUl h;LY\I nttiolollt fUM. tl"OlII oti'~r IOU1'QO' tor 02ot1ll6 UI ~.Uc.Uq ospa,,*, ••

2. :'he ~.tftutQ 02.1110. ot tIIG ~U1:Jc::Uy .bdl b,) c 11r.t ccll UPOIl ':ho toUllta ot tho '\utll.oriq. .~pe.n 11'0. the twill:. :otu1"04 to 1D uUo~ 171, sub~ph (,..). ~ tuDl,'vb1cb 1"01ICtD ~I' pt.r.lilni at :AmiALnnUva upo:llO. :M;J, 1£.3£ r11u

(c.) bel 41atribut04 1A AOOOl'll;oJlce with uUolo 140 t'. o,rU"w :00, pczr-.t=pb 2 Uh

(11) be l1eo4 to pzori40 *- !atol'pri .. witb t'.uda ~ r.OUOrd:n1W ~Uh cr.l.:!.: l~O, pt".r-..,srr.pb 4. :.Dl .!.nmx lV, t.n~olo 11, ~~pb 1 ,~h

(0) 1lct ueo4 to oOllpOne~to iavalo»1al' S~~o 1A C\OCOrdMCO with Cl'tlclQ l~l, F.~pb 4, CDIl a:nlolo 160, ~.c=ph 2 (1).

lomu1¥ .:e~l~ Il~ 91 :.ptl!otUy

1. 1'ho ~.A~·.hell =~ tho pnIIOl' to bo~~.

2. ~ : ... oaltq .WI pzo.oribe ·'ho U..II11:1 011 tho .bomndJlr ~I' ot W ':'~,;I'NrL ~ JA U. f1D=clGl. ~1'Ik UODI hlo,W run."At to aUoio 1~, ~C:q:'Clp." 2 ·(t).

,. 'lba c-auziou. .U oxuo11O tiM bonovlllf SIOWI" ot tbca :UtiloI"Ur.

4. 8t:&1:o' PartiA •• h41l not be UAb~ tor ~ Sollt. ot tbo :.utbodt,.

t!$'diU. Tho 1"000rd., boob CDl aaoo\IDt. ot U. J.ut:~ri", iUl\lllUs1f it. ~

t!.:1."'JlcW atatoCIIDt., ab.all be Iw4Uo4 QImU.,u,1J7 r.A 1n401lOn40ft' .. .wi1tol" to boo ~ppo1n1:o4 11, tbe :. ... =1r.

PROPOSED AMENDMENTS

Article 173 Expenses of the Authority

Paragraph 1 as in L.'S

2. Th~ administrative expenses of the Authority shall De a first call upon the funds of the Authority. The adjustment assistance programs adopted in accordance with ar:lcie 151, parAgraah 2f and artIcle 162, ¥aragraph 21m), If any, shall 6e a aceon ca 1 uton the funds 0 the Authority. Apart from the funds relerredo In artICle 171, subparagraph (a), the funds which remain Lifter payments of adminiatrative expen.e~7 may, inter alia.

(a) As in t.78

ib) be used to provide the E~terpri8e with funda in ~ecordAnce wi~h Article 170, parairaph 4. and Annex IV, article 11, paragraph lea).

Jelete subparagraph (c)

Delete article 175

L. 18 AS IT WOULD 1\IAD WITH U8 AMENDMENTS

Art'cl. '" •• p.n ••• o' the Au'hortt'

1. Th. contrtbuttonl of Sttt., P.rtt,. ,.t.".d '0. tn ''1t,'e 1 lubp.'lgraph (c), .hlll be Pltd tnto •• pecttl .ccount to ... 1 ,he I~fntltr.ttv. t.p.n ••• of the Author'ty unttl the Author't, lkall at' .uff'cient fund. froa oth,r .ourc •• for .. ,tinil tt. adotn'll,.ltvI •• p.n ••••

2. Th. Id.'nt.tr.ttv ••• p.nl •• of the Authortty ,~.ll be • ftre' c.ll upon the fund. of the Author't1. Th. adjult .. nt ••••• t.nc. progl .dopt.d In accord.nc •• Ith .rtlcl. 151, par.gr.ph 2, tnd Irtlcl. 162, paraer.ph 2(,), tf In" sh.ll b, ••• cond call upon the fund. of thl Authorit,. Aplrt fro. the fund. r.f.rt.d to In .rttcl. 111, lubp.rli' C.), the fund. which r.,atn "1, tnt.r all ••

C.) be d"trlbut.d In accordanc. with .rttcl. 140 .nd Irtlcl. 1t Plrlgraph 2 (J',

(b) be u •• d to provld. the Int.rptl •• w'th fundi In accordinci with .rtlcl. 110, paragraph 4, .nd Anne. IV, .rt'cle 11, parlgraph 1 Cal.

Artlcll "4 Iorrowlng po~'r. of thl Authorttf

1. 'h. Authorlt, .h.ll h.v. the pover to borrow fund ••

2. !ho A"e.b~ .blll pr,.crib. tb. It_tt. o~ the borrovtna power ot tho Authority In tt. ttnaDoSal recu1atSoR. adopted purluant to artSel. 160, parasrapb 2(t)

J. 'h. Council ab.ll ••• rel •• the borrowing power of the Authorlt,.

4. It.t •• '.rt'" ,h.ll no, be lltbl. for the debt. of the Authorlt,.

\

., University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

- -., .......... .

TEXT OF L.78

-I

saBSBCTIOl o. IJ'.Ca mma, ,JI1V1DJCIS .um nltJmlls

tf.tt:t!I!. ThI .\\ltbol'1ty .=n hew lIltol'MtionA1lctcnl pol',oacl1V com nch locnl or.peo1V

~3 :~ 'bo aaol1l'G!7 tOI' tho ,_"1 .. ot u. taOUODil c.ad. tIIo Nf1llDIlt ot 1tt '~IO. \

rmtla:1ilt UlwUOI to :tM!l1o t::o luthol'1t1 _ CUltll 1~. f\mcUORf, U tb:.11 0$7' ill tho

"::lrntoZ7ot oech St ... to 1trztr tho prln1"." cud !sas1tlo. ~, torA ill tJd. subl.cUon. TIIo t»1'1.,u"fQ' CIDl lman1U •• zoldlDl to tb.1 IntozopnlO eMIl bel thoeo :.1 t tonb 1A :..max tv, azt10la 13.

Iem1vl.B!fte!! prgSO"

Tho lo.u'bol'1tr. it. pzoPOI't7 an4 "'lOt., 'br.ll .n,1o, l.un1t)" m_ lopl pzooo .. exeop,to tho ofton' tht.~ '110 Authol'it7 Ihall Mota OX'pftff1,y vd .... nob's..uns." ill ~. p,...rtlculu c:.tO.

IsmlV fDa 19:rEM !Z (oA 0: glmp

Tho .,ropon, enS UfO" ,t tba I.uthon.". vhoZOIOC'l'D1' loo~te4 l\Dl III vIIoUOO'I'D1' ~ll, .h:-.l1 .,. 1Iazno tzo. fO=oh. l'aClu.1tlon, :oDtl.ceUon, "spzopl'iAUOD 01' arq ')':;\011' ton ot eol:N1'O 111 "_=111~ 01' ~PI1.~t1'I'D ~OUOIl.

PROPOSED AMENDMENTS

Article 178 Immunity from logal process

Dola~e ac~icle 180


SUBSECTION G. LEGAL STATUS, PRIVILEGeS AND I~I'IIS

Article 176 t.,.l SUtu.

, •

The Authorfty .h.ll h.v. int.rn.ttonll l.g.l p.r.on.lfty Ind .uch l.g.l c.p.ctty ••• ,, b. n.c •••• ry for the ••• rcl •• of ft. functton. .nd the futfll.ent of It. purpo •••

Artlcl. 177 'rlvll.p" Ina I .. unltf ••

To .nabl. the Authortty to fulfil ttl functton., It .h,ll .n'oy In the t.rrttory of .,ch St.te P,rty the prfvfl.ge. 'nd i.~nftt •• s.t forth In thl •• ub.,ctton. Th. prlvll'gel .nd I.~nltt •• r.l.tlng to the Ent.rprf ••• h.ll b. thol. I.t forth tn Anne. IV, .rttcl. ll.

art'ele 17' .-.unltr 'ro. (.,.( proc •• 1

the Authorft" It. propert, .nd •••• t., .h.tl ,nJo, • .-untt, fro. l.g,' proc •• 1 "CfPt with r"Ptct to the .n'orc ... nt 0' Judg .. nt. of the S •• -I,d Of.put,. C~.ebtr or to the •••• nt thlt the Authority Ih.ll hive •• pr •• ,l, w.lved such t~ft, In I Plrtfcul., CII ••

art hi. U • • MUnltr 'r • ••• re' iftd M, fo,. of "' lure

Th. prop.rty .nd •••• t, of th' Authorlt" wh.r"OIv.r lOClf.d .nd b, who •• oev.r h.ld, .h.ll be l-.un •. ,,0. , •• reh, r.qul't'f~, eon,tlc.tton, •• proprl.tfon or In, oth" for. 0' •• faut. by ' •• euttVl or l.,t.t.tfv • • ctfon.


TEXT OF L.78

• ~l pNponr d " .. ooh ;,t tbG ':'IItM1"UY .bl-Jl be Croo tJ:OIl J:O.U1eUoa., ::tu1.:doAl, ceanol' :4 .antont. ot =: :L. ... ~.

BopnNDte.U~. ot IIDDkI" StAta. a~Dl1Dr :iIIIctUp ot tbo 1ilOmblr, tba CoWlO11, 01" oqc:u ot tho :"~DtI1r 01' til.) COWlcil c.Dl tba 8.JeZQta.~ao=1 _ .taft ot the !IItboZ'1t7 .bell oJDjoy1D tIlo tlQr:1to~ ot OQeb lIlOaboZ' Stato I

Ca) iaIam1t:f~. 10ral POOl" wUb roapoot t~ AOt. JlO~O=K 01 \boD 1D U10 011:1'0110 ot ttolZ' !\Inctl0M. :zoap. to tbo oxton, thA' tho Stc\to vlllcb tbo, npn .. nt 01' tto lutbont)'. u ".,,::Oflna.iQ. Ih..".ll la:.vo lxpl'O.dl vc.1vo4 lUob l==mity in c. putlC"Jlu QI\IO.

(11) aot lIoUli :'oocl kt1oDd., ~ba .ua:a l==n1t1o. holl 1rI:I:rIic=UoD ro.tr1ct1oca, clJ..)" :'C,ittKt1on nilutzo80Dt. CII4 Mtlozacl dOmGO oblJcaUOM' tbo .:DJ ta.c1UUo. L".I I'Olt.r4. ozolwlp ZQ.triotloa. ml tbo .&'.IIIt tZQCtlloDt LA ro.peot ot tnvoUlq tc.ollU1o. :.a U'O DCCO~ b, St:.to. '"ztio. to ~bo l'apJ'O'8ntathQ', ottl.:le.l. cant olllplo100. ot c~.pr..~l.J &'C'Ak ot otbozo St:.too ':o.n1~ •.

1. Tbo Al'cbho. ot ,hg :'uthontr .bdl ~ iJlrio4blo, ~l'OYQI' tbo, aq boo

2. .:.11 pl'O~1'1' t4'Z1 11r.~t.. iMu.nit.l 5:CrotO or t1raJ.l:1' iAtol'mUon I'm All por.oNlOl :oeol'll •• hell aot be p10\004 1n =zcl/.1vo, OPOD to pubUo lDaPOOUOD.

,. '11th l'O:r:'zA to in "tt!clr~ ~=w:J.cC\UOftl, tho ~tbrit, .Iatoll ~ 3ccor4e4 117 :1C~eb s,~~ Pt.rir tlV:._nt ao l.1 .. tC\wuft.tllo theA tb::t ~ccoz404 to othol' lntoDUl.Uonc1 ~r;WII'.UOftl.

PROPOSED AMENDMENTS

Delete .~t!cle 180 •

L.78 AS IT WOULD READ WITH US AMENDMEN~S

ArUcl. 11t '-.unttf •• of c.rtltn p.r.onl conn.ct.d Mtth the Authorftl

the c!::r::.ntlttv •• of "~.r Itlt •• Itt.ndtng ... ttng. of lh. AI'.~L) c , or orgln. of the A ••• ~l., or the Counct' and thl S.er.e.r •

'.nerl' Ind .tlff of the Author't, .hlll .nJo, tn the t.rrftor., of .-c! Momb.r Stat.. • II

b, th C"f --:unft, fro. l.gll proe ••• Mtth r.lp'et to Ice. p.rformed I. n t •••• rc ••• of th." function., •• c.pt to the ••

th. Itlt. Mhfch th., repr ••• nt or the Authortt." I. IPproprt!::t !::~, hivi •• pr ••• l, MltW.d lueh f •• untt., in I part'cutar CI •• , '

Cb' not b.tng locll nlttona'., the .... t-.unttt •• fro. t .. t '1 t r~;rtc~ton., .t'.n r.gfltrlt'on r.qut' ... ne. and nlttonll •• rv.e.

g t 0

o d g:e on., lh. " •• f,efltti •• I' r.g.rd ••• ehlng. r •• tr'cttonl In t •• , •• tr.,t •• nt 'n r'.p.ct 0' trlv.llfng 'Ie.lltt •• I •• , •

• Iccord.d b., Stlt •• ',rt'" to the r.pr ••• ntlt'v", of"cll'. and .~lo, ••• of co.plrlbl. rink of oth.r It.t., 'are I... .

Artlcl. 10 Invtol.61lttr of arehtve.

h 1. Th. archtv •• of the Authortt, Ih.tl be 'nvtol.bl. Mh.r.v.r t • ., .a, b.. ' z. All proor •• t.t1 d.t., 'ndu.tr'I' •• cr.t. or .t.tl.r

!:!:r::t!:~l::dt:!!.:;~!::"'l r.cord •• hall not be plac.d tn .rchtv ••

J. Vtth r.g.rd to ttl of"ctal co-.untcat.on. the Author't t':lll :- accorded b, .,eh Ita,. 'Irt, tr.at •• nt no t ••• flvourlbl!

.n t at accorded to oth.r 'nt.rnattonal otg.n'.ltion ••


.. .. - -TEXT OF L.78

~10~:J~ !;pun1 tIt aUop

- -1. Wlthin tN .copo ot ~1:. ottici:.! eoUYUs. .. , tho .iutho1'1q.. U. o.Iaot"

-

iropony, inco., tat U:~ openUolUI cnl tl'ua.,..o'UOftl r.&lthol'1z04 b, thl. CODftD1:1on • bAll bo 0"111'1: Ina ell 41:00' 1:am1:10D r.nll troll t.11· O'.1Itolll 4 .. 1:14. OD ,004. 1apol"'t4d. 01' expol'W4 to:: 1 to ,ttl01:1 UIO. tbo ':'u1:1101'11:, .hell not: oltJ.III om.,tioft tZ'C. ':a. villob C'.:o :10 cora tJwl ~h:ZIOi tor ooni~. rc:n1ozad..

2. VhoD plJl'ohca2c ~t 1_' 01' .,mo .. ot nb.talUal Yaluo lleCOIIU7 tor tm ottlcicl eGUYLUo. of ~ !utbortv nft =0 b, 01' OD lIebelt ot t110 :'utbortt)', :-:d VhoD tto p~oo ot weh PU1'Oht.ICO LDolu4o. tem •. 01' d.-.au-., ~PpzoF~tIo CIOt.IU:O' Iht.ll, ~ tho "xtoDt: P:COU04OLa, bo 1:t'.bD t, S,~ta. PC1'1:!o. to F.Dt: ODqUOD troe aucb tt~1 01' 4uUo. 01' ;rovU" :01' thou 1'01ebunol:QDt. Ccol. 1.~11 01' pI1I'Che.M4 ·riCI' :or. "x:l~t1Cft pro\'14011 tor !D ~1:1I r.n1cb .l'~l not: 110 :1014 01' ott"rvllo ii,pod ot 11\ ";bo 1:.)1'I'1toz;o Qt tbo Str.~ rC'ZV wb1cb tt"'.AW the OXOcpUoD, :tZCOII' UII4oI' coalUlon. :,cn04 "ith tl\t\t St:.~t.1 Put"/.

,. 10 t.:'.s .i::.11 110 14ri.D4 b, Str.too rm10' eD 01' 1D roaplot of .elcrio. :m :l:I01\!t:IOftt. pd.4 01' ~Z\T othOl' tOft ,t ~t'~r.t w., :'r tho .:.utbol'1t)' to • Soont..U'7""Goaol":'~ :_ Itdt ,t t:to :'utborit7. ".:I wll M ozpor.. po~o~ all.1on:a £01' t..., :'ut:~r1~. ';1;:0 r..l"J n:l' tho1%' .,UllOllI, ~t:ioncl.c :II' .u1»:.o1: ••

SOJISlCUa. I. SDUllUOI ~ RIGHI'S ~ II2maS

kUclt 11' ~!p~.~on· of ft' ns rtet.

& Stat. hrv vb10b a.. 1A U'Z' ...... ln tbe ,.,.., ot U. t1uaol.al oOllt:l'llnatlolll to th. AII~ol'ltr .ball h ... e u "'e &a the Alatllorlt7 it the IIIOWIt of U. 1ft..,.. eqIl&11 or ao.ed. th. IDOwst of the aopWf.bla1loza dDl In_ l' tor tilt PlOecUq two ,eu.. !he ' •• -17 _ , ... 11 Mtoh • aeMtr 10 "t. it 11 18 .. 'lItled. tbat th. lallur. to pq 11 "'. 10 aoD!l tiODl ".114 tJw COlltrol ot tM l:I_e.

An';!! la' Sage tOft at ninln.., rl.'. ct secllc.h1p

1. 'Stat. PutT wblch bII ~0"17 &nil ,u.1.'.117 .101.1" th. pron.1oM ~t tbit Put ., b. nlfded fro. th. aeob. of tb. FhU .... IIl4 thl rlpt. ot z_cr.h1p ~ tJw "'-17 1ll'Cft rlOo...u.tlop '" thl CcImot.1.

. 2. Ire .:stiop ..., "1 taea \Ul4cr W. artiole WltU the' e..-W Dl,pl'" Cbubll' bat t0wi4 tbat • 81& .. , hl"tr bat sro.el7 lIlA ,ul1.'eal1, nolated ,be pron.loBi ~t tbl. Part.

.. - - - - -PROPOSED AMENDMENTS

- - - • • • • L.78 AS IT WOULD READ

WITH US AMENDMENTS·

Art'cle 18' la.unttt •• fro. t ••• tton

1. Wlth'n the Icope of .t. offlc.al Ictlv'tf,., the Authorfty, .t. ISlet., prop.rty, tnco ••• nd It. operatton. ,nd tr.n.actfon • luthorfltd by thl. Conv.ntfon Ihall b ••• ,~t fro. 'll dlr.ct t ••• tfon Ind fro~ all custo •• dutt •• on Good. '~ort.d or •• port.d for It. official u... Th. Authority .hall not cl.t. , •• -otlon fro. t •••• which .r. no .or. than charg" for ,.rvlc •• r.nd.r.d.

2. Vh.n purchase. of goed. or I.rvlc •• of lub'tantl.l v.lue nlc •••• ry for the offlcl.l .ctfvltl •• of the Authorlt, ar ••• d. b, or on behalf of th' Authorlt" .nd vh.n the prlc. 0' .uch purchal •• 'nclude. t •••• or dutl •• , .pproprlat ••••• ur ••• h.ll, to the •• t.nt pr.ctlc.bl., be t.k.n by St.t •• Patti •• to or.nt ••• ~tlon fro. such t •••• or dutl •• or provld. for th.tr ,.I~r .... nt. Good. I~orted or purch.sed under In ••• ~tlon provld.d for In thf, .rtlcl. sh.ll not be .old or oth.r"I •• dt,pol.d of In the t.rrltor, of the Stat. Party which granted the I.'8Qtlon, •• c.pt under cond'tlon, tgr •• d wtth that S~.t. P.rt,.

3. N, t •• ,hill bl l.vl,d b, St.t •• '.rtl •• on or In r"p,ct of •• l.r'" .nd .~lu.'"t' paid or ,ny oth.r for. of pa, .. nt •• d. by th, Authorlt, to the S.ct.tar,-G.n.ral and It,ff of thl Authority, a. w.ll I, •• pert. p.r'o,.tnO ••••• on. 'or the Authorlt" who .r. not th,'r c.t' •• n., natlon.l. or tubJ.ct ••

SUBSECJION M. IUS,rISION 0' II,"" 0' "EMBE"

Art.cle "4 lu.p.n.lon 01 voting rf,ht.

A Ic.t. 'art, which I. In .rr •• rl In th. p., .. nt of It. 'In.nel.l contribution. to the Authorlt, .h.ll h.v. no vot, 'n th' Authorlt, If the .aount of ftt .r, •• rl .quall or •• c.td. the ae?Unt of th, contribution due fro. It for the pr.c.dlng two ,.a,t. Ih. A ••• aDI, •• , p.,.lt .uch • "~.r to vote If It I ••• tl.ft.d th.t lh. f •• lure to PI, t. ~ •. to coAdlt'on. be,ond the control of Ih' "~'.

Art.ct. ,as lu.p.n.ton of prlvll., ••• na the ",ht. of •• ~'rlhtp

,. A St.t. p,tt, which hll ,ro.,l, .nd p.r",t,ntl, v'ol.t,d th, prov'.'on. of th'l 'a,t .,, be lutP,nd,d fro. the , •• rlCI. of th, pr'v.l., •• and the right. of .'~'r.htp b, the A ••• abl, UPOn r.ca...ndatton b, the Council.

2. No .ctlon .,, b. t.k.n undtr thl' .r"cl, ~nt'l the I.a-a.d Of.put •• Ch •• ber h •• found th.t • St.t. '.rt, h •• ,ro.ll, .nd p.rs •• tlntly vlol.t.d t~. provl.lonl of th" '.rt.


TEXT OF L.78

SCTIOI s. SI:'l'l'I.IIIDf a DIIIfU'I:II AD .lI)vtSOlT (DIllIon

Article 1116 S ... led J)hp!~" Cibacaber erhe In!'n'.aUonal !rtbunal tor

'he lAW 01 the S ••

':'he en.bll.huG' of ~. S .. -Ied J)l.~'e. C'baIIhr and the 1I&IIDa' to wb10h it .hall .uei .. u. JUl'il4to~Lon .hall be IOYemed b7 th, prod.lema ot tal1a •• tion, a! Part rl and of Ama VI.

Altl~. 19 .!Urlt4l?U9D or t .~-B P"w'" Char-l!£

fb, S~It'! J)"~u. Cbaa"tI' lball ha •• ~Ul'1141ot1on undu till. fir, ID4 the Au ... 1'llat1:2l th.nto La eU'plt .. vUh n.p"' to .oUyU:. .. ill the 11'_ fallin, vUbi.D the tol1owtq :a"lOrh ..

(a) 411pl' .. "etvltll Stat" Partt •• CCftc.n!q the Lnterpretatt.= or appUc:atloD ,t thLt Par' u4 ch. AMU,. rlla'lAc ,''c. to I

(11) dllPlt •• b.tv.", • State F~~ and the Authol'ltr cODoemlqa

(1) .ot. or cllJ. .. tone ot thl 1Iathorl~ or ot a .nate Par" aU,p4 to ", in dolation t)t till. 'hrt or 'h • .AM .... reld:.n. thlZ'ato n ot 1Ul'" r.pl.tio08 M4 Foo.ellal''' oC the AIltborUr adop':t4 in acoordaDce tt.trM tb I or

(ll) aetl,t tt .. l\lthorltr ,11.,.11 ':0 be in .:to ... ot jlll'lIdlettoD 01' • ohu .. oC pcv ••

(0) U.~tl. ~etvelQ parU •• to a OO:lttaot. beln4 Stat •• Putt •• , th. AlithorU)' )1' the £Qt,rprt .. , "tat, aatlZ"Prl ••• tA4 ~tu.ral n J·.&rU!cal j)'I'IOnl r.tlnld ~o 1.0

U':tC:'1 153. pUler.ph 2 (b). :oncernln,.

(l) tbe lntG"Jll'e"Uoa 01' applio.tion ot • rellWaat contract "1' a plan ot work I 01'

(U) aG'e 01' .,.lllloni of • pu" Co lh. COlltno' rlldLns '" "'LYita. .. "'the 11' .. and 4lreott4 to the oth. puV 01' elll'eoU, attectLDI UI h.l,,_t. LAt ... ,.. •

(d) ell .... , .. b."'elll the jll'ho:1.tr IA4 • proQeoti.e contnotor ..t1o !au b .. n lPOILIOl't4 by a 8tat, u·prot14M LA article 153. -)aner.~b 2' (b). aa4 baa chalr Mt~Ut4 the condUloDa I'lt~t4 k lD Amlu'IIr, arUd. 4, puqraph 6. an4 aniol, U .. pQac:rapb 2, oonoC'Dlq tbe l'ltulll ot & CODU'.ot or a heal law. arlllq Ln 'be "lsoUa Uoza ot the contraot.

. (.) ell .... t .. btMIll th. "'Chon" an4 • Stat. i'u't7 ••• '.U IAtCJrll. n • .. twa! or jvUloal pC'tOD 'PODlOl't4 b, • Statl hrC7 .. pr:t"l4ecllor J.D ~Uc1t 153, PU'asnpb 2 (II), vb •• " 11 al1llt4 that ~h. ""horU, haa lcC\lZ'nCl UalllU" a. pror.4~ !D .Anna m. arUde 22.

(f) U17 otll.1' 41 .... ' .. tor tlbicb the Junt41otlon ot tbe ChaDa' 1. lPec1ilcal17 prorl4t4 in ~11 Con."_.


SECTION 5. IETTLE"!N' 0' DISPUTES AND ADVI$ORY OPINIONS

Articl. 186 ••• -S.d Di.put •• Cha.ber of the Internattonal Tribunll for

the LlW of the s.. . Th ••• t.blt,h .. nt of the "I-e.~ Dilput.1 Ch •• b.r Ind the .Inn.r tn

which tt .h,ll ••• rct •• ttl Jurildtctton .h.lt b. gov.rn.d b, the provt.ionl of thi. I.Ctton of P.rt KV .nd Anne. Vl.-

Articl. t87 , Jurfldictlon of Ih. I.,-B.a Di.put •• Chlab.r

Th ....... d DtlPut.1 Ch.~.r .h.lt hlv. Jurlldlctton und.r thi. '.rt .nd the Ann •••• r.llttng thlr.to in dtlput •• wtth r.lp.ct to .ctlviti •• in the Ar" filling within Ih' foltowtng Clt.gorie.:

(.) di.put •• b.tw •• n Itlt.1 '.rtl.1 conc.rnlng Ih. Int.rpretltton or Ipplfc.tlon of tht, ',rt .nd t~. Ann •••• r.latlng th.r.tol

eb) dl.put •• b.tw.ln • Itlt. '.rt, .nd the Authorit, conc.rntng.

Ct) .c~. or OII •• lonl of th' Authorit, or of • Stlt. Plrt, .ll.g.d to b. tn violltton of tht. ',rt or the Ann •••• r.l.tlng th.r.to or of rut •• , r.gul.tlon. and proc.dure. of the Authorlt, Idopt.d In .ccordlnc. th.rewithl or

(ti) .ct. of t~. Authorlt, Ill.g.d to b. In •• c ••• of ,url.dtctton or •• 1.uI. of po~.rl

ec) dt,put.1 b.tw •• n plrti •• to • contrlct, b.ing Stlt.1 P.rtt.l, the Authorlt, or th' Ent.rprls" It.C •• nt.rprll.1 .nd n.tur.l or Jurldic.l p.r.onl r.f.rr.d to In .rtlcl. 15], p.r.gr.ph 2 (b), conc.rntng.

et) th, tnt.rpr,t.tion or appllc.tlon of • r.l.v.nt contrlct or I pl.n of work, or

Ctf) .et. ,r oal •• lons of • PI,t, to the contrlct ,.l.tlng to .cttvttt.1 tn the Ar •• · In~ dlr.cted to the oth,r p.rt, or dtr.ctlr .ff.cting ftl t.gttt •• t. 'nt.r •• tl.

Cd) dt.put •• b.tw •• n the Authorit, .nd a pro.p.ctiv. contrlctor Wbo h •• be.n .pon.ored b, • Stlt. al provided tn Irtlcl. 153, PlrlgrlPh 2 Cb), Ind h., dul, fulfill.d the condttion. r.f.rr.d to in Ann •• III, Ittict. 4, p.rlgr.ph'6, Ind Irttct. 13, Plrlgr,ph 2, conc.rntng the r.fuIll of I contrlct or • l.g.t l'lu, Irtling tn the n.gott.tton of the contr.ct,

(,) dC.pute. b.twe.n th' AuthoriC, .nd I Itlt. '.,t" •• Clt. .nterpril. or • n.tur.l or Jurtdiclt p.r.on Iponlor.d b, • Stat. Part, '1 provtdtd for In Irttcl. 153, Plrlgraph 2 (b), wh,r, It t. Ilt.ged th.t the Authorit, h., incurr.d lllbtltt, •• provtded in Ann,. III, .rttel 22,

ef) .n, other dC.put.1 for whtch Juri.dtctton of the Ch.~.r t. aPlctftClll, provid.d in tht. Conv.ntton. -

..... c .... .... ... : "" --..~ University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

1" -.

TEXT OF L.78

1. Dl .... b.tn_ Stab. hriha nttuN to la cU~le 187, I\l~,h (a). ,,-"e nbtltttech " _. ".. , ..

<a> at the re~ .. ' ot the ,.nl .. to tbe 41epa"" to a .,eo1al oh&mb. ot the ID"ematloaal ~llNz1a1 tor tIM taw ot __ S. to b, tonecl lD aooCII"4aM. wUIl _G VI, .nloh. 1, -= 17. OJ'

(b) at tbe retp_t ot UV' put)' to th. 4hPlb, to aD K bOo 'clsaUe' ot \h. s ... Bed. DUpate. CIlaabcr to lie ton" la aoooriuloe vi tb Aml'U"'Vr, ",Ucl. 37.

2. (a) D1IpI'" cODOemlaa the iAh:nrltatloll or appl1oat:icm ot a oOlltraot reflttM to 1Il uUole 181, nbJuqraJh (0) (1), .hall b, nllllUtecl, a' th' rlqU'" ot &q IlU'V to th. 41.'., to bla41ac 00 ... 01&1 arbitration, Wll, .. the parU .. oUlmr1., eerN • .to 0 ... 01&1 arbiUal Ul11wta1 to vh101l th. eli •• , 1. IIIlI.itteel shall ban ItO .1vlI41cUon to cleoiel, 1IrT'll'1e.tlon ot lIltertlret&Uon ot tbt. ~OIlYIftt1CD. WIle till cl1lpat. al.o 1n'tOh .... qtleltloll ot tis. lDterprlta,ion ot Part n aa4 the MlDa .. rtlatlaa tbento, with r • .,eo' to ao,hUt .. 1Il th' Arc., that que.tt_ .ball lie I'ctln'e4 to the See-Bed Dlaptlhl CbUIIIe" tor a zullq.

(b) U, at tbe 00...., ... ' of or ill tbe OOUl'I' ot Noh cbUnt1cft. thl cbUral UlbuDa1 4.'IZ'IIiIl.I, .Ubar a' the re~." ot Inl l'U'V to thl Uq.n. ~OF10 IIOtu, that lq eleot.loft cl., •• upon a nUnc ot thl Sea-Beel Dt.putt, ". ,b. u-bUral 'CZ'lbwlal aball rete' nob ~ .. t1oll to the S .... Beel D1IPl'.1 Cbubu tor web nl1Dc. tu I&'IIUnl tr1.bUMl aball 'b. proc.eeI to renllu it. Avard 1Il ccntomv wUh th. nllaa ot the s..-Beel Dlqnat .. Cbuber.

(:) 'ID tbe ab •• oe oC a prorilioll t.a. the oonvaot OD the ubltntlon FN",':':.u-IJ ~., ~e &pp!IK ill till 41~tlh. -me arbltt&Ucn .ball b. con4uateel ill accor~~o' ".11:;\ th. :;m:tr.R1L A:b1t:'dtoD !hal •• 01' meb at!:.,. arbS-mtlon nl .. U MT bt ~:~1l;::-~3"~ ill ~bl zul ••• reaulaUcu an4 ;:r,oeelUl'II ol til • .It&tI'.oI'1t7. ual.,,, the parctr. :: ~! ... nip" ochavJ. •• '11'''.

~lOle 1" LWtation c9 j .,talon vUh 1'1_4 to

deoI.lon. 0 • AIl1Sritz

The Sea-llt4 "!lbpl'e. :tlacbu .ball ha" co ~UI'lselloUon vi til I'epz'cl to ':!~" uRah.b7 \b. AuUlod~ ot 111. 41.ornloD&17 pav.n in aooordlnoe vUb t.'110 farci 1A r.o : .... ball 111 nbdlt',," U. 4l1or.Uon tor that ot thl "'tbort.t7. ~:.t:r":u' ,reju410. to arUob 191, ill GUObu, U. jv11410Uon pal'ltWlt '0 ar1lS.olu liJ7. :h. S .... Bed. ~1ap.&". Cllallber .ball not JZ'onouno. u .. 1t on the qu •• tion ot "ht-;:~ .. 1' ~ rule., "esWa1ton. ac4 JIl'Ooa4v •• ot th. Matbol'1ty art in oon,forelt7 vi":h :I~~g COftylftUOIl. Dar 4eclar. inYal14 t.n1 luoh rut .. , nl\l1attoDl us4 FOCec!ur.,. I~iI jUl'i.41oUon ill tb1. repri .ball b. oolltillt4 to cl1014LIlS dala. btl tb. aPP!.!.cCLllC:t at ~ zul.I, r.aulatlODl &ad JZ'oo!clur .. ct the .lIItbal'1ty 1ft 1MlwUual ou., ""uL.! II. in oollfllct vUb the OOlltraOtui obllpUou ot tb. parth. to tile 41aP1t. ':1' Ul.lr obUpU.olll WIlle tlhi. COIlYCtlOD, 01&1 .. oonoeniq aae •• ot 3_1I41:,:'(,n :»1' Utu. ot pave. -= to 01&1 .. tflr ~&a 'to b. pa14 01' other 1'1II,q " be Sl'llft to the part)' encemt4 fOI" * t&llUl'1 ot 'bl oth" 'p&Z'tJ' to' ooepl:r vi. ~ t ~IZ :cntnotua1 obllptiOlll 01' ·U. -obJ:l .. Ucu uadu thi,"CoftYctlbn. ' -

•••• I • ... • .._ ••

- - --- -.- .....- --PROPOSED AMENDMENTS

Delete article 189

- - ---- .... ...... -.. --L.78 AS IT WOULD READ

WITII US AMENDMENTS

. , .. - - , •• , •• '. ARTICU 111 Sub.t •• ton of di.put.t to • 'D.ct.l ch •• b.r of the lnt,rn.tion.l

Tribunll for the L.v of the 5" or In .d hoc chl~ber of th, S •• -Bed Disputtt Ch._b.r or to binding cO~.frci.l .rbitrltton

1. Dt.put •• between St.t •• P,rtt., r.f.rred to In .rttel. 187, .ubp.r.graph (,), •• y b •• ub~ltt.dl

c., .t the r,qu.st of the patti •• to the dllput., to •• pecl.l ch,~ber of the Intern.tlon.l Tr.bun.l for the L.w of the S •• to b, foraed In ,ccordlnc. vtth Ann •• VI, .rttcl.s 1S Ind 17; or

Cb) .t tht requllt of any party to th' dlsput., to .n .d hoc ch,~.r of the S,,-S.d Disput •• Ch •• b.r to b. for •• d In .ccord.nee with Ann •• VI, .rttcle 37.

2. CI) DI,put •• conc.rnlng the Interpret,tlon or IPpltc.tlon

•

of • contr.ct r.f.rr.d to In artlcl. 187, cubp.r.gr,ph (c) CI), Ih,ll be .u~ttt.d, It the r.quest of any Darty to the dl,put., to binding co ... rclal .rbltrltton, unle •• the partt •• othtr.I,. Igr.e. A co.~.refal .rbttt.l trlbunll to whtch the dl.put. t •• ub.ttttd Ih.ll h.~. no Jurl.dlctlon to d.ctd •• ny qu •• tlon of fnt.rpr.tatlon or thts Conv.ntlon. Wh.n th' dl.put •• l.o Involv •• , Qu •• tlon of the Int.rpr.t.tlon of Part X, .nd the Ann •••• r.l.ttng th.r.to, with r •• p.ct to .ctlvlti •• In the Are., th.t Qu •• tton Ih.ll be r,f,rred to the S •• -a,d Df.pute. Ch.~r for. ruling.

Cb) If,.t Ih. co ... nc ... nl of or In the cour •• of .uch .rbttrltton! the ~~bltr~~ Irlbunll del.,.lne., .tth.r It the requ.st

of .n, plrt, to the dttput. or proprio .atu. thlt It. dect.lon dtP'~ upon • ruttng of th' S •• -a,d ~tIPut •• Ch'~r, the ,rbttr,l trlbun,l .h,ll r.f.r luch que.tton to th, S,.-e,d DI.put •• Ch.~er for luch ruling. 'h, .rbttr.l trtbun,' .hall th,n proc.ed to rendtr ttl .w.rd In confor.tt, wtth tbe ~lt"' of the S •• -B.d Ol.put •• Ch •• r.


TEXT OF L.78

ParUclI1&U~J1 ad .'

1. u. uWnl oz Jlal,41oal P'l'loa 11 • putJ '0 a ,ll"",. ntGTed tol Jon ",U=h lA1, lbe apoala~1.q s'-, •• ~l lie ,1',. AD'lee 'beI'M' UI4 ,ball 11&1'4 ;1:. dah' '" pal'Uo1pat. iA' ~. FOO.t41DP b, ",bcUUq writ'. 01' cn1 ltat,clnt".

2. U III '6C!Uan ,. IIrGqb' apla' • Ita'. ,"1;7 bl' • r.amn1 01' JlaUl-:.u ; .. 101l 'POQl"eIl 11, another Stat. iU'tr i.n a 4h1luie ret.ned to Ul uUole :e7, I'JbPanll'&lIla (0), t~ reQOll4en' 8t.,. ~ I'.qu .. ' ,lit 8ta" IJOUOI'iq ,bat pUlon to aDeu lA ,be FOoll41a" = oeh&lt ot tba' , .. lOll. r.UiA. ",ob apptanDG., ~. 1'.lIp0A4.' 8ta., ..,. 1ft",,1 '0 b. 1'11'1' ..... 4 b, • ,tQri.'cal IUloa at u ... Uonall'J.

j;UOh ~l !4Jo£l op 10M

Ib, s...-Ied DlIp"'1 CbaUu lball I'''' &4nlOl7 opaion. -' 'b. I'"".d at cb, .a.atNbl1 01' 'be Couoil On lIpl qu,.U~M "l,Lar v"lWl tla. 10011' of 'b.ll' &cU',Uha. "'ob opiAioAl .ball 11, pvea al & _"II' ot '.&I'lano,.

PROPOSED AMENDMENTS

--------.. ---------------~ .~

L.78 AS IT WOULD IUW) WITH US AMENDMENTS

Articl. 190 particiyation and appearance of 'pon.orin9 Itat •••• "1,, II proceed ng8

1. If a natural or juridical per.on i. a party to a .,,~t. reforred to in article 187, tho .pon.orln9 Itato .h.ll be qlv.Q ftO\ll tbereof and .ball bavo the right to participate in the procoe4L~. b) .ubmltting written or oral .tatomanta.

2. If an action i. brought agaln.t a State 'artv by a natural or juridical poraon .ponaored by another State Party in a diaputo referred to in artlcle 187, aubparagraph (c), the ro.pondent 8tate may requeat the StAto aponaorln9 that peraon to oppe~r in the proceedinga on behAlf of that por.on. FAlling auchoappeorance, the re.pondont State mAy arrange to be reproaonted by Q juridiCAl poraon of ita nationality.

Article 191 Advisory opinio,ns

The Sea-Bed Disputea Chaab.r .hall give a4Vi.ory opiniona at the request of the A88embly or the Council on legal que. tiona 4ri8in~ within the acope of thoir activitio.. Sucb opinion. ahall be given a. a Aatter of urgency.

\

.. J University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

to·

TEXT OF L.78 .:.Jrl!':X c. s.:oSlC cOI3)::r..::5 ".T nt'G.'I!D. ~r::-J :Jl!: Ul'L:'1!.:.'lIC!t

.:..r'~nl t1'le ,~ cinerala

IUle to d1Mral •• bAll paa. UpoD :4e~Yor.r in &ccorclance OfUh ,::Ua ConwenUcn.

1. (a). Thl A'lthorltr .t .. ll "o~&I' the con~l&c' ot ~0,p"1lns 1ft tb. UM.

() ProspectiJss .ball be eor.tuch4 'n1r al~.r tbe AII'bol'itr bu nOIs.ve\! a uU.£aot4Q' wUhn w.rtMLIt; that till Pl'Opo.ftd pr,.ptotOl' .ball oOllp17 witb th1. :onytnUon and the nleY&ftt nl •• u4 rtplatbM " tbe '''Ihorlt7 ooncua1n ... proboUoD ot 'b. culD. "'Yil'O"', OHplftll"n 1ft Ualn1n, prosr"" acoor41J2C t~ uUcle' 143 an4 144 " ru. XI ot 'bl. Cony",Uon 1ft4 acOtpt, 'ferU1oaUoD \r th. Authori t: ot coapllanoe. th. ~opo .. 4 prOl:;llOtOI' Il'.all, ,ortther witb tb. undert.kln3, natll)- tht Autbcritr ot the broa4 Ilr .. 01' u.a. 1ft wbiob Jl'O,,"Unr i. to \de s:1&0I. •

(0) Pro.p.nine., be oante4 cut b1 1:10:'11 than on. ps'o'plotor 1ft the lUll ar.& ~r u .. , 11m taDeo\l.l,.

Z. hOlp,oUne .ball no. :Jemie &Df Jr.t.renUal., ,rO'Pl'1et&Q', uoltUh. 01' an, ouar r:.;ht. ~n tb. ,,",peo";r wl1b rlll=ec' ':0 'b. n,ouo... A pro.pecco:r .ball, hov ... r, be eluled to rICO'fU a nllonabl. UCWl' ?t rllouo •• ot tbe Uta w h u,ed lor .~u.n..s.

.b',101. , Eg:ara'lon and .9:oUat1~n

1. '!'t.e Ent'l'J!d .. , S .. t., l'a:rU .. , .ancl ':h. otber mUUII I'Itenol'l W 1ft utiel. 153, pan5fasb I (0), .,t IVt 11 ~t th1, :_ .. D\1oo, _ appl,. " ':he au'bort.,. tor appnql ot plaM ot ~Ic e~Y.r1hC aothUi .. at thl U".

2. The ED'erprla • .,. app17 witb I'I'P"' " lIlT put of tbe u .. , lNt appllcaUoftl b,. othR' vlth naplC' to r .. U'Yecl ar ... art IUb3te' to 'bl ad4Ubnal r.~lrlllm'. 'Jt v'lell 9.

3. bplonUon lilt eqloltaUoD ehall b, OUTl_ cut cn1r SA v ... ,plOlIlt4 1ft plau ot vork I'Iterr~ ':0 SA utleh 1~, para~.lIh 3, ~t rut: Xl .,t tbl. Coayentbn UIIl appro'f_ 111 tbe ""'t11orl" 1ft aooo~daDCI witb the pod. 10M of 'hl, .la1ft •• aM the l'llenol mil, npl..tlor.a an4 sroQe.l::.r .. ot 'he AII''''~ltl'.

OS. £v'Q' plan ot ..on approved b,. the '~'l\orU,. eNll.

(.) be 1D .\rid :ontc:ra11l' "Ub thl, COnYlIDtloD an4 tM rulll aDd n;ul.Uoftl ,r the .11.:. ~"Ad t71

(b) ~n c'Jfttr~l b1 'h. Alnbo~s.tr d ao'hh~., L= • .be .&r.a 1A accorUno, vlth arUoh "~.5, panSZ'apb "" Ilt Far': IX or 'Ill' =,n\,enUonl

PROPOSED AMENDMENTS ANNEX III. BASIC CONDITIONS or PROSPECTUIG,

EXPLORATION AND EXPLOITATION

Article 1 Title to miner3la

Title to minarals ehall pass to the operator upon recovery of the minerals fr~m the Area. Lin accordance with this Convent10n!.1

Article) Exploration ~nd exploitation

1. Tho Enterpriae, States Partie., and the other entities referred to in ~rticle 153, par.l9raph 2 (I:), of Part XI of this Convention, may apply to the Technical Subcommi •• ion liuthorit~ for approval of plans of wcrk covering aceI?Ities !n Lo!7 the ~rea. Cpon approval of a plan of \lor'<f anI ouch entity shall be an MODerator· for the purposes 0 th S ConventIon.

pnr.l9rap~ 2 as in L.7.

3. Exploration and expl~i~aeion ~hall be carried out only in areas specified in plan~ of work referred to in article lS3, paragraph 3, of Part XI of this Convention and approved L6y the Autnoritv7 in accorcance with the provisions of ~his Annex and tha Lrelevar.t7 rules, regulations and procedures of tha Authority. -

4. Every approved plan of work Lapproved by the Authoritl7 shall:

(aJ be in strict conformity wit~ this C~nvention, ~ Annex, and the :ulea, regulations and .FJ"ocedure. of the mJiOrity,

(b) ensur. control Lby the Authority7 of activities in the Area in accordolnce with article 153, paraCfraoh 4 of Part XI of this Convention. . .


ANNiX 111. BASlC CONDITIONS OF PROSPECTING, EXPLORATION AND EXPLOITATION

,,'rt telt 1 "t litOB'ine[jll~ Titl~ ~o mineral. sh~ll paas ~~ the operator upon recovery

of the ninerals from ~he Area.

Articl~ Z Prosp.cdna

1. (.) T~. Authorlt, .h.ll t"C~Ur4;t th. conduct of prosp.:tf"9 in tht Ar ...

(0) Prospecting .hall be conducted only .ft.r the Authority ~,s rec.ivld • Iltl.f.ctor1 writttn undertaking th.t the propos.d prosp.ctor Ihlll co~ly with thts Co~v.ntion Ind the rtl.vant rult •• nd r.gutatlon. of the Authority conctr~Ino prot,ctton of the .arln. tnvlronMtnt, co-op.r.tlon In training p,o~r.~.'1 .ccord'n9 to e,tlcl. '43 .nd 14~ of P.rt XI of thl, Convtnt'on and acc.ptl v.r.f'catlon by the Author'ty of cOMPlianct. Th. propo.ed prolPlctor shall, togeth.r with the undert.klng, not.fy the Author'ty of tht bro.d ar •• 1 In w~Ich prosp,cting i, to take pllc.. .

(c) Pro.pecttng •• , bt c.trlld out b, _or. th.n one prolplctor ~n thl I.mt art. or .r", II~lt.ntoully. .•

2. ProsPt~ttng shill not conf,r .n1 pr,'tr.nti.l, propr •• t.", ..elullv. or an, oth.r rloht. on tht prOlpector with r.spect to .th, resoureel. A pro.ptctor ,hill, how,ver, bt tnt it ltd to r.eoytr • r.'lonabl. aMOunt of rtioureti of the Ar.1 to b. u.td for ,.~lln~.

Arttel. S '.plor.l'on ana t.plottatlon

1. T~e En~erpr1.e, State. Partie., an~ the othe~ ~n~ici~. referred to in article 1S3, para?ra?h lIb), or P~rt XI c. Chl •. Convention may apply to the Tecnni.:al suteoI'Vnlaion t~r 3~pO:O'!.l of olans ct w~rk covenn.) .lctivitles In the Are.1. Upon ap?rc'/l of a plnn of work. any .uch ~ntity ~ha!l b~ 4~ ·oper~toc· for t

purposes of this Convention.

Z. Thl Enterpri't •• , .ppl, Ylth r.lp.ct to an1 part 0' the Ar •• , but application. b, oth.r, Ylth relPtct to rtl.rv.d .r ..• . rt .ubJect to tht addltlon.l r.quir ... ntl of .rtlell 9.

3. .:;.:pl::-adon .:and e)o;ploits~i~n .ha_l be carrhd out only •. areas speciiled in plana cf work referred to in article 151, para9raph ), of Part XI ot thi. Con~ention .lnd approved in accor~ance with ~he provision. of this Annex .lnd the rule., requlations .lnd pr~cedure. ot the Authori:y. '

4. E~ery approved plan of ~ork .hall.

(5) be in .trict conto~1ty with this Convention, this Annex, and the rules, regulations and procedur •• of th~ Authorityr

'b) en.ure cun~rol of ~ctlYitie. in the Aru4 in accordance W~ article 153, para9raph 4 ot Part Xl of thi. Conve~ti~n.


TEXT OF L.78 I:) :~ft!ft' OD thl "plnhr exc!uIL'I' ris". tor thl IxploratioQ ant

,qlhUUL:n #t 'hi .pecltl.ed oa&lllOrll. ,t ruou::el in thl Ula co~erld b, thl s:lan ,I wu: iQ Icoorllanoe vUb chi rull' .:~4 :.",1":'~1l' ~t the Aulnorl. ". U 'tll appll:ut 51''''''"'' a ;11M or "I'k C,: ,nl :~ ,h. ~ :.tl,IO on1" 'h. ph" ot vortc w.¥ contiI' u:1U1lvl rLaM. '.u:, rens:.ct co , ... :~ a .tAS'.

, laoep' tor plue of vorl: rropoi..s "I thl En"IIJ',Z'h., .aob ,1an ot ¥ode ... .all taJrl the Con ot a ~cntrac' \0 b. lipid''', tb. AuthorBI anol th. ,p.,.tor 01' opera tOri ',"on approw&1 0: t 'b. p:'on ot !fOrk bl the ;..u thul ':'J.

J.nlch' ;:U&ht!.cuion • .,1 'EPU(~':.

1. .lppU:ant., :th.r thin ':1;. E:lt.o:rt .. , .~all be 'tua11lh4 11 'b., ~VI cbl naUcnality ~I' cOM:"l ~l~ 'p)n,cf.'Ihlp r.qulred :1 U' .. Lch 1,!o. parasnp:a Z (b), oC iU''' X. ot ,Ia. Con"'~'H=n u:',a 11 thl, (,Uov ~nl ,r':ld:Jrt. and 1IIIt th. ,·.:&l1t1,a':LoQ Itandui ... -:ablllnd tr tr.. Au'horB, br 21lan. ot rul ••• resulaUoRl and Focd'u ...

2. !s:onaol'lblp b, Ch. S~,. PII't1 ,t vh1ch tlu r.FilU.:ant La a naUon&! ihall h .ultichnl WIl ... the 'JPlieanl !-... »rt tt-.an (In. naUonaU~, a. 1n ':hl JU. ot a par tntl'l".1p .:r c.,r.oort!ua ot .nU t:. •• ir>:aa .. VIral Sta til, 1n whleh tvlRt all St.': .. ?sr~hl Lcnlnd .naU 'J~n.er 'h. r.ppHutton. or ~.l ... ~h. ,ppUCL'" 11 .ih:U/Il:r:cntn~! II-i ':1 .noth.r S':aC. Party :1' Ltl na':Lol14l., in "blob •• ID' both Stal ... PuU ••• i'.a11 .pen.er the appU:aUcn. l'hl 01'1':'1'11& &114 prGollio.ar •• tor i:plfl:,,:\<:aUcn ot the .~or..ortillr r-q·.lu:t:.nt •• haU t ••• , t':~h lD "h. :-.11'" r.;JUlu1lnJ ar.d Fr~c.·J .. r .. :.! ~i:' .. &:~r.;r:.-::r. .

,. Th •• pon.ol'l."'i Sta't '1' 3tu •• ,t-.dl t puI"an' to artioh 1..59 or Put ;(1 01 thl1 ccr. ... r.t~on, )0.&,'. ':h. : .. pon.lbl!!':"/ to .n,u,n. 'IUUI\ tl:lI.r lip! e,nea, -:!' .. t , ":o:\t",:tor ., n"n.or .. .l nhr.ll :r.ny lut ,dhUltl 1n ':1:. ",".a in :onl:tRU, \11th U. ~bUoaU:lr .. ·.:n~.r ehh '=cnv.ntlon and the 'n!:. ot 1&1 contract. , !lporuorLnc Stat •• ball nat, how.vQ', be 1:,abh tor Ja.,. caulfd b, aft, t,UIII'I ot & ~oncr .. ctGr .pon.ore'l DY LC to .:Icaply " .. ,:h ~':O obUpuor .. it that 3t". Pu~ 1' •• a.,op~1d la." .n~ :I,,!lathr.a an4 tu.n a.iain1nrat.lv. 11 ... \11'" ·"iU:h UI. vi thin cbl t:aM'4Crtc "C U. h~l 'i" tec, nllonab!, approprLu. hI' OlC\1I'lDI oompUr.na. b, J:clor .. un4c Ua Jt:rudicUon.

.s. !xClP' 'I pl'ovUId 1D fUr.S=lph 6. lIleh qudltlcaUoll denuda ,ha!! relate ~ :hl !1nanela1 Ul~ ~tcml:al ClF,bUU' •• ot the applicant an4 U. ;:.:,tCr:aJlCI '.u:cift' puY1cu. :crarac~. 1I1~h ttl !utl-.crhy.

5. 11' .. ;:rG~H'U" t~r ...... lei ~h. ,,~r.llClc"bn. ,t 5t.&l~. 1arU • ., vt.1:h UI \;:,H:r.u .I'.all ~I :.n:o .cc:'ml ~~IL.: :hara.:<:er :\. StA:fI,.

~. ~I l\Ullt1.caU.1n .tan4ud •• :':.&11 requ1r. thd .... r,' Applicant, vUh,at -X:.ptLOD, ..... 11 .. ~u: :.t b1. a;pl!:athr. w-.cS.rtalcl.

!I; ~~ r.ce.s:' " tr.l:::ftablt ar.! :-:c;!io vi':h ~r.1 arpH:,ola #b!.:.cat1.:n. :reulli by ':~. ,rc.,1I1:r:1 :C ill'': XI. r~l. .. &:Ill r ... .Jbt1on. ·r ;ill .\lIchcrLty. itell~cn. ,1 :te ;,r,pM :t ':~. "u~i::n':io. 1M hr:a :t ia. ::r.tra::::1 ''''.':~ ~h. ;'I;.t!:or!,y.

(~; ':~ leu;; ,::r.qo:)l by ~h. !u:lt:r1~ :C .CU.,~U.II in ':h. A:ea, aa a1.l~.~'rl.l~ ':r ~t:1.J ':.:n ... nU~nl

., .. ; ~: ?:::,~_~. :t:~.:,. _~·.::~tv ·l:.th,.a III'U' •• r. auuran". ~hd IU. obl1pUon. 'AnISe ....... _:fl .. , ...... , .1, •• _ •• " 1." IlC~ .a'th,

PROPOSED AMENDMENTS

5. Lfxcept tor plan. of work propo.ed by the EnterpriseLl Eac~ sPiroved plan of work shall take the form of a contract to be s 1ned by t~e Authority and the operator or operators or t:leir ajent. Lupon approv!ll of the plan of work by the Kuthonty.:.

Article 4 QualificatIons of applicants

to become operators

1. All appllcant~ Lother than t.he ~nterprise,7 shall be quallfIi! if t~ey have the nation~lity or co~trol -and aponsorship required by article 153, paragraph 2(b), of Part XI of this Convention a~d if they follow the procedures Lind meet the qualitic~tion standards7 established by the Authority by means of rules, requl.ltions ar.d Pl'OCOdurel and meet the qualification standards Bet forth in sUbpara~rarhs 4 (a), (b) clnd (ci. Sponsorsnip of the f:nt,!r~rlse s aI n~t be raaul~ed.

Paragraph 3 as in L.l8

Delete paragraph 4 and substitut~ the following:

4. The qualification of applican~s shall be:

Delete paragraph S.

Delete paragra~h 6.

".L°J.'n Ug ~·'';'L'&J~· .. ..,n • .., _ (c) confor on tht oper.tor exclustve r1,~EI for the e.ploration

.nd IlCpLoiutton of the IPecift.d ClUgortea of resources 'n the an,'\ cov.red b, the pl.n of work in .ccord.nc. wtth the rules and regul.ttons of the Authorit,. If the .pplic.nt pre.er.t. I pl.n of work for ont of the two It.,tl onl" the pl.n of work .,, confer •• clustve rights with r •• ptct to .uch I .t'9t.

5. Each approved plan of~ork .hall take the fo~ of a contract to be signed by the Authority and the operator or operators of their r.gent.

Article 4 QualificatIons of aEPlicants

to become opera or.

1. All applicant. ahall be qualified if they have the nationality or control and .ponsorship required by article 153, paragraph 2(b:, of Part XI of this Convention and if they follow the ~rocedures establi.hed by the Authority by menas of rules, regulations and procedures and meet tho qualification standards set forth in sth paragraphs .. (a), (b) and (c). Sponsorahip of the Enterprise shall not be required.

2. Sponsorship by the State Party ot which the aoplicant ts a national shall :) a sufficient. In the case of a partnership .)r consortium of entities from several States, the partnership or conlortium shall designate one among them a8 an agent. The aqent shall obtain the sponsorship of a State Party. ~he State Party shall ensure, bofore agreoing to serve a. a spon.or, that it has etfective control and jurisdiction over the agent. The criteria and procedures for implementation of the sponsorship requirements shall be aet forth in the rules, regulations and procedures of the Authority.

3. ~Th •• ponsortng St.te or St.t •• thall, pur.ulnt to .rticle 139 of P.rt XI of thi, Convention, have the re.pon,lbillt, to .n.ure, within t\ttr leg.l I,.te .. , that. contr.ctor".o .ponlored sh.ll carr, out .ctivtti.s in the Are. in con'o,.it, with itl oblig.tion. under thts Convention .nd the ter •• ,of ttl contr.ct. A .pon.orin, Stitt .hlll not, however, be lilble for d ••• g. elu.ed by In, failure of I contrlctor spon.orld by It to coaq»ly with tt'i obUgat1on. if th.t Stlte P.rty has adopted l.w •• nd regu!.t'on. Ind t.k.n .d.tnt.tr.ttve •••• ur •• whtch .re,. within the fr •• ework of ttl leg.l ',It •• , r ••• on.bly Ipproprtlte for securtng ~o.pli.nce b, p.rlon. undtr It. Jurisdiction.

4. The qualification of applicant. shall bel

Ca) the capacity to generate internally or to rai.e fund. nece •• ary to comply with the minimum annual expenditures for exploration eatabliahed in the rule., regulationa and procedure. ot the Authority, a. evidence by certification~y a clearing bank. Such certification .hall not be required for the Ent.rpri •• or State Party applicant.,

(b) escept fo~ the Enterpri.e and State Party ,appll~&nt., to post a bbnd to a •• ure performance of the obligation. u~der the propose4 plan of work in the amount of 50' of the ~lnlmum annual expenditure. for the fir.t three years of explorAtion, provided that di.pute. concerning the performance bond shall be re.olvod under the law. of ~~e .ponsorinq State,

Cc) in the ca •• pf an applicant that hal previously held a plan of work, certification that the plan of work waB ~o~ terminated in acco~dance with article 18.


1,1

TEXT OF L.78

. ""~.!!t : 'l'nr,afllr at technol~a

... '"r.1rll "';'lllU.,~~~" a pr:,c.iId ,lAD ot Wl'k, lye, a"Uoan' .ball _. Iva:':'a!Jh !.: :I~a ,~,:horUy a ,er.e::al JOllcdp~lon of the lqulpaeDt anel .. ChocU to b. ~:'H~ !.n :a.rr,,.ir.1 Y.n ao~bU!.1 1ft tAe .1:'1&, aa vell u otber releY&D1: r.:lr.-tr:l'ru~&:7 lnl~r::&Uo:: .1:"" t;h. ~Wac~erl.U=. ot .uob 'eelmolo.,., aa4 ~r.i:l::':3'::'::: l.S ':) vne::-t J'..l:h ,:.c:t'Jl~:CiT' is ... 11ab18.

;!. ::':el')" :::.rat:n- !U\der I:l appro vel plan at von: .ball Wora tis. juthar1~ :! tt .. iS1~et 1n the ! .. orlptlen &Dd !.r.i'cna':lon nqta1nt! b7 pnp'ap 1 vbeM".r a sulIs:ant:.&l. :1::;m:,l')i~:.1.! ::b&DI' or 11l1lO"aU01l 1. lntroc1lioe4.

.5. Znr,,' ::-:r.tr3:1; !:r ~::. ,::,:ta-:t "ll aoC1vUle. 1ft th. Ana etue4 iIlto b)" ;~. A::':~:)r1-':j' ~:.3:':' :.--!r.~4:'~ ~~:. ~.:1:"1!1' u:lo:lutald.np b)" thl operator. "

" \ :: ~I 'V&!lo\~: .. '!:s ':he t:nur;::~.e, 11 ant! vhtn 'b. ""hod t7 .ball 10 : •. p"i-:' ar~ ':' !IJ &1:1 !,,&lcubb 00=1I'01al tena an4 oonUUona, tbe teabDolo., ':r.:.:h n. '.lieU !.n :a::'71r., ,~, "thUl,. I.n the .u .. un4u thl oont:nc' uc1 wbloh be :" :. .. ,&l:', .1!!l~le4 ':~ ':n,"lI£U. Thll .bill b • .10111 b, eHAI !)f 11011101 or othll' i;F,priua U'rL'iICe:U vi".1cb Chi ~pan':1' shall necoU." vith 'h. IlDtupd .. II:::! '/hl:;s ,,".1.:.1 ':. Ie' t:::~!\ L'l a ''1eelal alr'.ea.t lUPl'le«atar7 to tbe 001ltnot. :::15 ~o~! .. :::.,:'! =&1 ,. !~-;:ict4 :~ 1£ ~ha !Dhrprl .. tl.ncl. tba' U 1. ur.able to ;i:o:a:.c ';.~. lue,r .",,,aC: .ctl:~.nt IJl! !13IM ,tecbnolol1 OD ,he 0,- .uk., aa4 =n :'&1r t:~ :.u~r.abla ~cc.urclal 'Iru erA 00ft41&10ftl,

(1: J ~ cb ta1ll & '4'1 ner. alau..-ulC. hoe the ewer 01 aD7 teabDOlo17 ftO' .:::0:,:'$'1 \:CdII' su',;angrapft (al thal th. o:seratol' u .. 1ft 0~.:rr1DS OIlt &aUYlCl •• ill ~:. ar.- :.aroder t~e ccn~n:': a~d ..,h1cb lIJ ~o~ ,lDenl17 a .. llable OD the ollea tarlee' .!:&t ~~. "wtr ~/11l, it v.<! "h.n tb, Allltor:.V so requ"'., alee n&liabl. to thl !n':orr.:,~u ':: :ht .Ja::e l%':an1l ••• e .val1abla to the ollen.~I', tbat 'eclmolo17 ".;.n'1fr 11cm':. :r .,tt.u app-'=pr:..&U an'M3IZ«l" a.nll liD tatz an4 rea.cmab1. OOlllllCCial ':'1:-:'; sr:d .::dl!l"~, :! rJch ••• "anee 1. not obtaLn.4, 'bl 'ecbn010&1 1D qu.IUOD ,!'.a:l :\~': ':a 'lS'td 01 ~h. o~en!:= 1ft ~UT1i1!, out acU1'1Ue. 1ft tbl "ea,

f :} 0;") l:=I:ai.re. II .n4 'IIhIA req-.leate4 t:» ~o 10 bf 'h. IDhqd .. aa4 vhea."u it ~J ,:o:z!~!.cl. ~) iel 10 Vl.~llel'.lt wbataDUal co., to tbl contractor, .. hp1lT 1tlDdlDl ac4 ':'.i':!'-:~.~i.t :~i~~ ~: ::'Ir.a£tr :c ~hl ZnCt:'pdle Ul accoriance ,,-lUl aubpuappb (a), UlJ ~.::'.:.~~)~' ~. '.ul. i.n :z:=1in; : ... , .=d .• ~~hl I.n o;bl Ant. ,"""U' che contract whlcll ne ~.J ~~ ': : til:' ::' tn'!. '!!,=. t:: ;:'ana£ e1' u:4 vh1ch 11 no' ,Inuall, ."allabl, on ~. OFal :.a:-j:!t. ::1 :u •• "4bln ~h.n !os .. ,,,iI.canUal oOIllCI'''e relaticn.bl,1 beevl. tb. :peru:r IrJi :h, ;'.mtr ct ":he ~1Ot:nolc£)', the clooll1 •• o ot th1l nlaUonah1p &lid the le;:-., ,t = :~~r.,l :r ir..!!.:.lIr.: •• t'.all h re1eYlnt to 'Ill 4etualut1cD vh.tba' all .;:'naia:,. :S1.II';re, !-.a'I, ;: .. 1\ taken. In c •••• vh"'t t;he op",ator dUo1 ... etreaU.e :~r."!r:~ :nr ~;~t :vne:-, hn::n "::: lC:f..lirl :1:1 lip! rip'l trOll ':be ovaII' sball be ::::l~";''':''~ ::0:'.\'1:,.0; ~e "!' •• "p~!.!..:a.n~·s ~ualU·!:a~lor.1 ~o1' ~. lu1taequlQ' prOllO-e4 ;::l.~ ::: "-!'~,

....... .. ~ . -'--- .... _- - ... ....--~

PROPOSED AMENDMENTS

Article 4(bis) UndertakIngs by applicants

Ever'l applicant, • ... it!"ou1: excepticn, shall as part of its dpplIcatlon undertake:

(a) to comply with the ap~licable obligations created by the provIsIons of Part IX, t e rules, reaulstlons and lrocedures of the AuthorltI ~n efrect at the tIme Its plan 0 work Is approved, decls ons Ot the organs of the Authority directed to the operator, and the terms of Its plan of work approved by the Aut~orlty;

(b) to submit to inspection in accordance with article 162, paragraph 2(y), and

(c) to provide the Authority with a written assurance that Its ob11gat~ona under the plan of work wIll be fulfIlled In good faIth.

Delete article 5 (The subject of transfer of technology has been dealt with in Annex IV, new article ll(bis» and substitute the followin9 •

Article 5 Certification by ~ponaoring States

A State Party ,,,hich sponsors an applic.lnt, or in the case of the Enterprise, the Authority, shall provide t~e Technical Subcommission with a certific3tion thst :he applicant which it sponsors in accordance with article 153. pdraqraph 2, meets the qualifications set forth in article 4, paragraph 4, .nd that it is in full compliance with the terms of t~is Convention, this Annex, and the rules regula-

, dcns and ?rocedures of the Authority. i\ Sta1:e part:- shall ~ot require a spons~r. The Technical Subcommission shall accept t~e certification 0: a sponsoring State, the Authority, or a Sta.e P srty, \;nless it decides other\"ise by consensus.

--L.78 AS IT WOULD READ

WITH US AMENDMENTS Article 4 (bis)

undertakiogs by applicant.

Every applicant, without exception, Ihall as part of its application undertakes

(a) to comply with the applic~bl~ obligations created by the provilion. ot P~rt IX, the rules, regulations and procedures of the Authority in effect at the time it. plan ot worJ: is approved, decisions of the organs of the Authority directed to the oper3tor, and the terms of ita plan of work approved by the Author1t~':

(b) to submit to inspection in accordance with articld 162, paragraph 2(l)z and

(c) to provide the Authority with a written assurance that its obligations under t~e plan o! work be f~ltilled in good faith.

Article 5 Certification by sponsoring States

A State Party which sponsors an applicant, or in ~1e case of the Enterprise,' the Authority, shall provide the Technical Sub~ommisslon with a certification that the applicant which it sponsors in accordance with article 153, paragraph 2, meets the qualification. set f~rth in article 4, paraqraph 4, and that it .'in full compliance with' the terms ot thil Convention, this Annex, and the rules, requlatiom and prccedur •• of the Authority. A State Party shall not require s sponlor. The Te~hnical Subcommission shall accept the certification o! a IPQnBor!n9 State. the Authority, or a State Psrty, unl~.s it decides otherwise by consensus.


TEXT OF L.78 (4) to !acuuu ... :" Icq·,blUcn bJ the tnC4I";rb. w:4v licence Ot ocber

IPPI'OF1.U UT&nIIQ4IAt~ usl on tal: ucl ,.. •• ona~lt 001:ll.ro1al t.1'QII an4 JOD.U~Lcn. anT tecMclolJ' COy.eel I:T "l~puacnpb (b) .tou14 the En CUiI' 1 .. hold. Co n.pUate .IIZ.CUT vUb tt. owner ,:,' ~!:. 'ecMol:.,' L,cI ,.qu •• \ ",ch f.:l!UaUelli

(.) \o~. the 11&:.111 .11'.'1.11'" al ~bc .. rrtlcrlbe4 :.n .acr.ar.is:a~ha ·:a). lb). (c) ancl (4) tor \h. ben.t:., ot a cl.v.leplq St ... or lfouP :t hYdepi:" Stat .. vb!.cb ..... anUN '0r a oon:::ac' undu u\!..Jl. 9. prov1b4 thn C!:.e ... a.v ... ball b. :l.11:eel \0 ~h. uphLtat~oll ot th. 1'11'\ .,t the u .. Pl"cre. to! b:t tb. oonCfactOI' '#:s!.ct: bat b .. n ,reune4 r".L:'3'Ja."I~ to -=~hlo 6 an:! provLchc1 tho.t .. ,:t~"Ule. uni.r .. ~. con-:r .. o' ,ouaM '" -:~.t .... :..,p&.al Stat. Jf tr:up ~t 4.v.hsln& 3tu •• wueS :10' 'n"Oh. ~an'fl'l' :at ',cMolo,,' to a tl\!:1 3",. :)1' th. na:icr .. ,h ~i • thir4 3t.". Cbl!.~Ho", :ander t".11 .-1':I·'l.lSlOIl ... .al:. :nlr ani)' '#Uh r'D;':~ to an1 ,lv"", cent;nc~Dr ..,h.n tecM:)l:v !:&. not bean :11\'1 •• tt4 or Uan~ltl":".4 ~, hll1 ~o· the Ent.rprl ...

4. DlaP\l'" conc4tr.ur." th. '.an4eruiclnSI requirt4 b, ~u.",e.,-h J, 1!Jc. dber t:-c"1I10n. 0' :t:. ~on;ra:t., .hall be .aljbJpC)~ ;0 ~,):;"11"::1 !!.:SPUU IIUhJllllt LA a·:c'lrUnc. with Pu, XI, an4 2lOD'CU7 penal U .. , "'Iplnllon, or 'enl1.uU')n of :"ntrac~ &I proYl~t4 Lra a.r~l"lt 18. !Ill",,,,. II '0 'Ib"!;. oUu. uol. by tb • .:or.~ac\or &1'1 wHh1Il ';hl rana. ~f tal, aM :"10II&t1l ~:=.ro!.al ~Itr~ &ro4 c)r.l!lt1on •• , be .\.:bsu~t4 bl .ither paJ'':7 ~ 'lnUnc :Oall'I'C1al ar~UraUon IA a:ccrianu with th. '1:ICr.f.AL lrbUratlon ~ •• IJr ocber ",blu,Uon I"olle •• , u.;te .FI~Cl'lh4 :.n tno roll .. , tll"J1luona an~ fI'OCe41.11'1I Jt th. ,"thorU,. In ~ CUI in vhl:h -:h. CLn!!.nr l. n.,aU.,., :ba ~cn:n:,;ol' .at'.aU b. Ilven !~ 4..,.. to 1'1'1111. hia ,C!er to brLnG U ..,UinA tt' .. , rar.,. ~.tCI'l ';hl A:.atbOI'i.tl 11K •• aft7 ",tuaLn&U:ln. with nlp.d to .,101Ul')n ot chI :cntrac; ar.4 ;~. l.tUlcn ole rC'.aiU •• , u pr:.,l!.d !.4 uuel. 13.

5. In 'h. ''Im' tba' ~h. EntC"p'la. la '.lllAblt to :bt&1n appr')Pl"lah tachnolOIJ en taLI' and :,,,.ccablt co.uclal tel''' .,..4 conclU~"nl to :ocatrae. 1n • '!ut1 U=G' ~h. I'tc:lYIl7 .r..S pr-,e ... lnl ,t a1.:t.rall tl'O~ 'h. u.... t1:her the CouncU 01' tb. A ... ebl, za:t :cnvlftl • lIfo .... P ot 3"' .. rarU •• :c:po.ed :)C ~ho.a. :.ih~=h 1: •• np," in "tbUl .. la the u ... t.1o" ·Itleh hay •• ponl.,racl .GUU .. ~.1en art '"PCN IA acU"'~l .. 1ft "h, u.a an£ oth.r Sta' .. hl'th~ t'AYlr.1 acee .. to well tlCMoloo-. '!'bll .~CUP .hall :onallU to".,ter ~r.4 lhall ~ •• it.tcU". :I&.ur •• to .a .. oll'e chat wcll tectaoloQ LI _b avallabl. to '::~. EntftFC1" ')r. :a1:' ad 1' ... cnab1l :Ca:ftC1U 'ara aD4 oon4U~cn.. Eaeh weh State hrtJ lto.a1l talc, all t ... 1blt s"'llI'ea to tbi, .114 wUI:1II u • .,vn lap! .,.t_.

6. ID :h. ~a .. ,e ~oLn~ '1entur .. yUh the ~tlfl:l'l", 'lChDob.,. tranlter will b. !Q acc,=I'u..CI with 'h. ''U':3S t:! ':h. ,olnt vtll~JI" III"'lIl1lt.

:. Th. :1.1I1er.al&~ nq~ll"ri cr para4l'lrh J Jh.:'l ':I. lnc::."Jt4 lis .. ell ,:cratl'aet t:lr the c~r.lluet 0: .o~~vUI." ... , ~~. ina 'mt:.l lc) ;"Dn .tt.r the £:,'.p,1 .. hal :'I!"ln :oalfrclal ~n4:1cclon " %lr..rah !nll C!"t :e.o:u-:u ')! -:t. 1:' ••• n.t UJ ~. llInktcS .1urlnc o: .. .a t per11c1.

-I. i':r o:h. Sll"po ... :t ':1::. •• r~:.:h. "t..:".n:-101"'" =.ar.1 t~1 .apec:lalhe.! .. ':u;I-:eno; ani ~.er.n:.:d ·<:::-,.,.,ov. ~n:l :i:'", :a::"a: •• h.:. ~ •• ~~t:u:'n:; ~~.tr":';l)n •• ";r'llr.lr.1 U1i ':':ML~al ,J't:.:. &.Ill a .. a'!Ana. :,:~.uar1 ~:) uu:::le, :AL::ca:.:s and 'f'lra:. l '/:..~h '11":IG V\d ":te l.pl ::.g., ~c .• ,. -:h ... ~ :.IU ::1' o;t-.ac papa •• ')IS a :::r ... u:l· ... Lv. : .. 11.,


• I

'"


TEXT OF L.78

~.' .Lmo'tal. oC pIau 0 ebB'tett by appUcanta

1. SlJ; :IODthl &tt.r tM eat17 tIlto tOl'o, ot thie Conyent1on. and thereatt.r eech CCIII'4;h SIOIl~h, th. ,\\&thor1 t;r .ball ble. up tor cout".ration ,"po .. '" plan. of verlc.

2. Vheo ocn.t4u",- _ appUoaUoft t • • oonuao' vith I'llp.O' to aothUs.., in tb. Area, th. AQtbor1t;r .ball tirlt aloutaiA wiletMrI

(a) th. aWUcant ~. OO.,UH vUh 'b. prOOt4UZ'I ••• ta1l111b14 tor appUcaUOftI 1ft aoconanc. vUb uttole 4 and. ha" .iT ... th. l"thol'ltJ 'b. coaU:mtl ",,, •• nnnci. 1'.11'14 II, tbd uUoll. III oal. ot Elon-oollpU",oe vi Us thl .. procCUI. 01' ot .1I.eIlO. ot M1 ot 'b. ooad 'c .. '. u4 UIUZ'MO" rlCur'" to, the a,p11ou' lball bl cty. 45 4I.rI to reucl7 nob 41tlO",

(b) th. appllc",' po ....... thl rlrplllt. qul1tlcaUou par.u.ua' to arUoll 4.

5. _ "'11 propo .. 4 ptau ot vozt .hall b. 41&1" vi th lA tM or4&1' til vb1cb tb., verI rlCllYc, aa4 thl AutbarlV .hIll c=w' ... .xpe4U1olll11 II ,01111111. an 1.Dq\llr1 into 'hl1r ~ollPUlDoe wUb the 'uu ot tbl. Con.lIltlon _ tb. rul .. , I'lcul&Uou &DIS PRO~" ot tile jqi_ltT, lDolu41q tb. openUoaal rlql&1r.anu, ,be !lAanclal contl'l1NHoElil us4 Us. UD4&1'talciql oOlJOemiq 'hi trauter ot tecbDolocr. AI loon •• 'be lin •• \lft4C' lD."UpUOD ha •• bl ••• U1ett, tbl Autbod'T lhall apps'OY' I\lCb p1aM ot '10ft, pz'~Yl"ett tha' tb., ooDlon to tb. Wilton aM DOn-4ucrilllu'0t7 1'1q\I1r __ " .etablilb14 11, tbe 1\11Ie, l'laulaUou aa4 proce4\ll'u ot the Au.tborU" =1.... .

Ca) per' or aU ot tbl pz'Opo,ett azo. 1. iDolu4etl 10 • pz'lnoua17 appoyl4 plaD ot·wrIc or .·pr.riCll1.t, nbtdttett ,""lett plu ot 110m vIalob hal DOt ,1' bMil tbal17 aote4 OIl _ the .IIl'bod., or

(b) pen cr III ot 'hi ~.ett u .. 1. 41"ppz'Oyett b1 the £UttorltT fUZ'naat to .niele 162, pazoacrapb 2 (w), ot rut Xl ot ,bt. CODT_tloD,

(a) tM propo.ed. ,laD ot woa lin lie. __ Utell or eponlOl'ed b, a Stat. PaI'tF vb1ch alzeaq hol41,

(1) plane ot vmc tOI' cplonUoD ID4 uplo1taUon ot po~.t&111o noclulll 1ft 1IGD-1'I • ...,ed. IU .. tat, to .. tbC' "Uh 11thC' ~ ot th. PI'O,ole4 .ttl, wul! 1ft"" 1D .i.1 30 ,II' oen' ot a cuculu &1''' ot 400,000 lquar. Jciloutl' .. I\lI'I'WftIlIDI ,be a.tI'l ot IUber part ot thl u .. coyered _ tb. pz'opo.ed plaD of wrtc,

(U) plUl.l ot work tor th • .,lontlon aa4 IqlottaUon ot POl7ralt&1ltO noclUle. in aon-r •• ...,H .UI. ""'eb 1ft aarlp" 11It OOftiUtuta 2 pC' Oint of thl total .... bc u .. vIIlob le DOt Z'11In'H or othlZ'v1 .. wU!lUa. b1 tbe I.utllod" CR. ll,pllUltT tor IXJIlo1taUoft punuut to .nloh 162. parasraph 2 (w), ot iV' Xl oC- tble COIlnnUoft.

,. SoM:utan4iq 'h. pz'oyillon. ot pe.n~ap 3 (.), at,. the ta4 ot the interl. ~u1.04 I. cllllaN iA arUol. 151 ot Put XI ot thll CODYIIlUOll 'hI ALL~l'iC'J U¥ &!lop' "1' aeana ot 1Ul", l'e8l1laUcma ad procl4uI. otb'; procl4uI. &DIS Cl'ltutl conab'"" vUh 'hi. Ccny",tlen t~Z' 410141nc vhhb 'PPUO&Dt •• hall h ... plAlla ot V'Ork approyc lA 0 .... ot .1110tlon IlIOn, IFPUCac'. tor • PI'O~OIt4 &1''' Th ••• rr.,ce4I11''' &Del crUeri& .Wl le.ure apsl'OYll o! pl~ of wn OD '" ..... ltabl u4 r.on-lhol'imn&'orr bllh. ,- I

PROPOSED AMENDMENTS Article 6

Disaporovai of Dlans of work

Deleteparaqraphs 1, 2 and 3 and substitutea 1. The Technical Subcommission .hall t~k. up for con.ideratlon

propo.ed pl.ns of work in the order In which t,t, arl rlcleved.

2. When conl'd.rlng an .ppllc.tion for. pl.n of work with rt.pect to .ctl~ttie. tn the Are., tht Ttchnic.l Subeom.I •• lon .h.ll fl,.t a.certal~ whtthe,.

(.) tht .pplf.nt ha. compllld with the ,equtrINI~t. of .rtlcle 4. In c .... of non-colIIPlhnce with thest procedurt. or ·)f .bltnct of any of tht c= •• lt.tnt. and •• surances referred to In .rtlelt 4 (bll), the .ppll.nt shall be glvtn 45 dl,s to r •• ed, s~c~deftct.;

(b) the ,opllc.nt Is In co~li.nc, with-thl. Convention .nd with the rules, rtgulatlans .nd procldures of the Authority.

(2) (bls). In •• klng the findings rtf.rred to In p.r.gr.ph 2 the Ttchnlcal Subcocmll"on ,h.ll presu.e th.t the r'Qulr,eent, contalnld thtr.i~ have been .et In the c,se of the Enterpril', St.te P.rty applicants and 'PPllcants which h.~e b.en sponsored by Stlte P.rtf., for which certtfic.tion r.f.rred to In article' have b.en rtctlved, unl.,. within 45 d., •• fter t.klng up .n .ppllc.tlon for conslder.tton, or 4S day •• ft.r the e.plr.tion of .n, pertod for rl.ed,lng def.ct. provided In .ccord,nce with p.ragr.ph 2(a), the TechnlCll Subca •• lsslon dlclde, otherwi" b, consen'us.

3. Absent a deci.lon ~Iken pursu.nt to p.r.gr.ph (2)(bl.) by tht Technlc.l oSubco •• I •• lon that In applic.nt doe. not .,et the requlrl.ent. of article 4 or Is not In co~ll.nci with this Conv.ntlon or tht rule., rtgulltlons or p~ocedur.' of the Authorlt" the T.chni.l Subca-.Isslon sh.ll approve the .optic.nt'l pl.n of work unlll':

(I) plrt or .ll of the proposed Ar~. i. included In a pr.vtoully Ipproved ~lan of work or • previously sub.ltted prpposed plln of ~ork which h.s not y.t been fin.lly Icted on b, tht Au-thority; or .

Cb) plrt or .ll of tht proPol.d .r .. is dl,approvfd by the Authority pursuant to .rtlcle 162, plr.grlPh Z (w), of P.rt _, of thll Convent ton;

Cc) the propostd plan of ~ork h •• b.~n submitted or ,pon.ored by a Stat. P.rty which .lready holdS:

(I) pllns of work for •• plor.tlon .nd e.Dloit.tion of poly.et.Llle nodules in "on-res.rvld .Ites t~.t, togtther with etth.r p.rt 0' thlt proposed sitt, would .xc.td In IIze 30 p.r ctnt of • cfrcul.r .re. 0' 400,000 squ.r, kHollletlr. sllrroundfng t"e centre of Ilthtr Plrt of the .rl. cov.red b, thl propos.d pl.n of ~ork;

. 4. For the p~.p080 of tho standard sat forth in paragraph 2(c), a plan of work ?roPQsod by a partnership or consortium'.hall be counted cn a pro rata basis amonq the sponsoring State. Parties involved ~ccordlnq to artic!e 4, p.aragraPh 2. LThe Authority may approve plans of work covered by paragraph 3Tc) it it determines that such approval would not permit a State Party cr per30na sponsored by it to monopolize the conduct of activities in the Area or to-precludo other State. Partie. from activities 1n the Area~

Dolete paraqraph 5.


. Artlf!le 6 .Disaporoval of plans or.wolk

1. The Ttchnlc.l Subco •• lllton ,h.ll uke up for conlolderatton propo.ld pl.ns of work In the ordlr In which thlY .rt recl,vld.

2. Wh.n cQn,tdl'ing In IPplicltton 'or. plln of '40rk with resplct to .cttvitll' 1n thl Art., the Tlchntc.l Subco.~t.sion sh.ll flr,t "clrtlln whlth.r:

c.) the .ppllint hi' complied with thl requlrt.tnt, of .rttcle 4. In casl. of non-co~l',nCI with thell procldurt, or of Ib,.nce of .n, of tne COIII.hllllntt and u,urane .. r.ferred to) In .~ttcle 4 (bit), the IPpll.nt sh.ll bt glv.n 4S dlYI to re.tdf 1uch dlftCU;

(b) the Ippllcant i. In cOMPlI.nce with thfs Cony tnt Ion .nd with the rU~'I, rlgul.tton, .nd proctdur •• of tht Authori:y.

(2) (bil). In •• klng the finding. rlf.rrld t~ In p.r,grlph 2 th' Ttchnfcil SubcomMission ,h.ll prflu., th.t the r.quir •• ents cont.tned therltn h.ve be.n ft,t fn the c •• e of the Entlrprl.e, St.t. P.rty ,ppllc.ntl .nd Ippllclnt' which h.ve b.tn spon.orld by St.t. '.rtle, for which certific.tton reflrred to In .rticle 5 ~.ve b.ln rec.ivtd, unll" w'thtn 45 dlY. Ifter t.ktng up .n IPPllcatlon fo~ con.1d.~.tton, or 45 d.,s I'tlr the e.plr.tlon of .ny ptriod 'or r •• ld,Ing d.f.ct. pro~tdld In .ccordance with par.graph 2(.), the T.chnlc.l Subco •• I •• lon decldl' oth.rwlse b, con.ln.us.

3. Absent I dlcl.lon tak.n pursu.nt to p.ragr.~h (Z)(bls' b, thl Technlc.l Subco~I.'Ion th.t In ,ppllc.nt do.s not .. ~t the reQutre .. nt. of .rtlcle 4 or i. not In co.pll.nce wtth thl, Conv.ntion or the rules, ~tgul.tlon. or prOCldurl' of the Autho~'ty, the T.chnl.l Subco~I •• lon Ih'll Ipprove tht Ippllclnt', pl.n of work unltlU

(a) Plrt or .ll of the propo.ed Ar •• " Includld in I prtvlou.ly IPproved ~l.n of work or • pr.~fou.l1 sub.tttid prpPOled plan of work which h •• not Ylt bl'~ fin.lly Ictld on b, thl Autltortt,; or

(b) p.rt or all 0' thl propo.,a Ar.1 I, dtsl~prove~ b, the Authority pur.u,nt to .rtlclt 16Z, p.rloraph Z (~), of Part XI of this Convent ton;

(e) the propo.ed pl.n of work h., bl,n .ub.Itted or .pon.or,d by • St.tl P.rty whtch Ilreld, hold ••

(t, pl.ns of work 'or e.plor.tton Ind e.ploltltlon of pol,~'t.llic nodule. In non-rt'lrv.d .Itt. th.t, toglth.r with elth.r p.rt of th.t prOOOlld .i!., would •• celd in .lle SO plr c.nt ~, I clrcul.r .re. of 400,000 SQu.rl kllo.tttr. surrounding the e.ntr. of Itth.r p.rt of the .rl. cover.d by the proool.d plln of workl

(t') pl.ns of work for tht '.Dlor.tlon .nd t.plott.tlon of pol,.It.lltc nodule, In non-re.trvtd .ft •• which In .0grlg.'1 .11. con.tltute Z per clnt of the tot.l .I.-b.d .rll which Is not r •• ervld or othlrwis. wl'hdr.~n by the Authorlt, frc •• llglbility for I.Dlolt.tlon pur.ulnt to A~ticl. 162, o.r.gr.ph 2 (w), of '.rt _, 0' this :onv.ntlon.

(3) (bit). P'''Vrloh U) (c) 'hl'_l not provi:le • bit" for dhIPprovlni I pl.n 0' work If the Ttchnlcll Subc~.t.,I," d.ter.ln •• ty I •• jorlt, 0' tt •• ,.b", pre'lnt and votin1 th.t 'Dprov.l 0' the pl,n of work would not pr.clude othtr Stlt., '.rtt,. fro. c.rr,lng cut Ictlvltte. In t'. Ar... .

4. . 'o~ the purpo.I' of the .t.ndlrd .et 'orth tn p.r.gr.ph l (!), • plan of work propoled b, • p.rtn,r,hlp " con.orttu. 'hill bl counted o~ • pro r.tl b ••••• -a~g the ,ponlorfng St.tt. involv.d .cc,rdtng to Irticle 4, Plr.gr.ph Z.


TEXT or L.78

Selection at anueanH't:l'kuottc, authoriution'

1. SlJr .:law af~C' 'he tntf7 Law toro. ot ,bt. ConwlnUon, UI4 thC'eat\C' MGb tOUl'th ~tb. th •• ~U\orl'»' .hall take III' tor 00na14 •• Uon applicdl:l"l tor p.I'04ucUon authorluUOD IIlb.U~eel 4ur1nc ,h. 1-.41&,.17 preoeellnc ,utcel. In the 'n.' all wob a,pUcaU:,. CIA 11 •• ppro.eel "Ubout •• caeellllG th. pl'OCluctl:la l1:a1tatlon or oOD-:nYenl:l, the ')bllpUoal ot th. 'uthodty l:A4er , 00-.:41'7 acr' ..... , or ~_In, .., tlbich it hal hoo ... rut;t ... pro .. U.4 In &l'Uole 15:' ot &tvt .II ot thi, C')nY.Uon, the _thorl17 .1' .. 11 lIn, tht a"1:horlu~lona appUecl tor.

2. Yb ... the •• helloft ... , 11, .-4. laoro., applicantl tor pro4lo:tUoa aut!=rbaUon beeaul. ot th. pr04&lc'bll 1!D1taUon "' forth La arUcl, 151, JlUllftpb 2, ot f&l'~ Xl ot 'Ia. Cony.Clon, ,:: heaul' at the obllpUoDa ot th, AutborlV WIIIlu a coClll104ltr acr ... IIl' :II' unnSeG.nt to vh1:tb U baa becolM a fUV, .. pr0914ed tt:.r in &l'Uel. 151, pu'IRpb 1, :t Par~ XI :It 'hll Con,,_taon, the

. .wthorl'7 ,ball .at. th ... hot"" ~n ':h. ball. of ebJeoU", anr.t noft0041Iol'la1natol7 .t&tIdaz'4 ... , torth In lUI .. M4 r,r.a1aUou Jrattll '.1, In &000r4&o0. wUt. tbtl II'Uol ••

l. 1'he Alltbodtr .hall conalel .. aU ap,UcaUona tOI' ~oUon atbortaaUon rae,hlll "UblA the pnce4111t pertH ot u •• ret.rrt4 to lA ;anar.ph :., anel .hall "9. pz'lortv • .0 ~bo .. vhtobl

(.) ,lYe hU .. uaunao. ot ,.torcanc., takUsI ':ato IOOow.' tile rlaaaoial aa4 t.clztc&l quallll: •• toM ot the prOPl).e4 o, .. ,Cor ad »utorunc., Lt &r:¥. dar FeriOQ.17 appro.eel »1au ot 110m I

(b) FoneSt ..uU .. JrOlpae1lY. t!:I.aM1&l hn,t1t:1 to tbe k'hor!~. tatl", lAto &CCOllDt vhea procWcUon it achHllhel &0 b.stD,

(0) ha", &11'_47 ",,, •• tlll :.0" ~ .. ~o .. an4 ettort 1ft pro.p.ot ..... Or' aploratlon.

'. Appl1:aatt "be u. no' •• hctecl in UlJ' pul04 .hall :tau P1"lori~ ~ tubaequ.' perlH. 'mUl chq n."", aa IUtbodcaclon.

,. S.llO~lOft .tall 11 ••• tat1slc lASo aoCOUD' ~he D.ed to eablDc:e apportwllu ... ror III Stat .. Putt •• , In'eapaeU •• ot tb.u .oclal anA ae=oa1o q .. eaa 01' ,1Op-apb1:al 10oaUoraa .0 .. to ,..,14 4tacrlaiMtloft qaW' IQI' State 01' qah., ~ ,.,nhlpat. La IeIthUl .. til 'he U .. UI4 to Jr.-.t IIOl1Opol1aaUe ,t aucb IeIttwUL... n. proYlaloM ot tbt ..... bp&:'ftll'apb ,ball be a,,11.1 when.wer ~be .lllthor", conalel ... p-loriti .. tor prOduct'. au'bon .. Ua.

6. PI'o41.1otion aaathorllattcta "Ub re.ped to 1' ..... 14 u .... hall ha •• ,r1:dt,. vhm ..... r t ..... rt""1'l .u.. thea noD-r •• ant4 aU .. u, .1£4 .. .,1010;&1Loo.

7. 1'be ""'boI'U), ,hall ... U. oJaolllou FIIUU' to ~I 11'''011 .... paaJt!7 u po .. lbh alter ~h. :10" or eacb ;ulo4.

PROPOSED AMENDMENTS

Delete Article 1

L.?S AS IT WOULD READ WITH US AMENDMENTS

.1


TEXT OF L.78

Eacb application, ocbG' 'baA tho •• p'opo .. a liT 'b. Inhrpd •• 01' bT anr GehU's !:ll' nl.ntc! .U". .lIall eoyft'·. total v.a, vbtab II'." 1".ot be a dnsl. oOl:tll111ou. are., 1Ul!1-:1entlT larS' aII4 of IUttto1lftt e.".teel 20Illller=1&1 'falue to allov'two D1A~. operaUon •• Th. app110Mt .ball la41c.t. the eo-orclwt •• 4LY1cU.nc th. ar .. 1r.to two put. ot equal e.U.teel eoaeroLal ftlu. azul I1lbeU all \b. clata obta1Decl by hi. vUb r .. peet to bo~ p&&"t. ot th. ar... WUhout ~.JIl41c. to th. povu. ot. the !:athtIdV punuIl' to artlo1. 17 th. data to b. I1lbmUttcl COJIOlI'Diq polJm.talUo nodulee vUl relate to ","inc, '&IIII11n" tb. 4cnaLV ot De4uh., aDd the coapo.Ulon ,t cat&l. La th'lII. Witbln 45 4aII ot r.cet"'" .Ilab clata th • .1Utho~lV .hall d,d.,:ate ~h. ,art "h1:b 1.1 to be l'I.u.,ecl .olel, tor tb. conduot ot aothUt .. b7 ':he Authorlt"/ t~cllSb ,h. lnt.rpr1 .. or In ,"oelation vitb dey.lopine Sta'l". 'rue it.lpUOft cq be cletenecl tor & l\u'thu p,dod ot 4' clqJ 1t til. AutbodV I'IqIl"" aa b4"en4Ift' 'xput to ...... vb.tbu all :lata r'quu~ b7 t"11 ,"'01. haa be. .subIlUt..s ':0 tb. Authodty. the are. 4ealptecl .hall 1:ecOIl •• fl.,"" v, ••• loon I. t~. plan ot ..oflc for tbe nOD-r"u.," u.. t. .~Ye4 aM. tt. contract 11 .111'1'1.

&1'''011 , Activit'" tn r,ef[Yecl alt.,

1. Th. Interpd ... hall be 61.,'D U\ opp"twli.V to declcSl vbethu !., tntenct. to can;r old acU.,Uh. !on eaoh 1'","1'1 .U.. thl. 4ecl.lon DJ:f bI tUen at ut7 '1111, ·.ml ... A notiflcation puz'1\Ian't to puaGrapll • II l'ec ..... cl bJ> ,Il. !l,lthorU7. lD "h1~h .went the IDterprl •• ,!:all tU. U. 4ecl.1ca vitbiD a rlUoubli tie.. The EDterprl .. M¥ iecl4. to aploU .. .aeb .u •• lIS JolDt wantur •• vUb the iIlt.-n.teel St&t, or entity.

2. Th. !Il:UPI'1a. _,. cona11,l4. contract. tcr the U,OIlUOD ot put ot u. &cUY1U .. in accorUnc, w1tb Am\u IV, ar'loll 12. It IIq .110 en'er iIlto Joint "lRha •• rer tb. conduet ot .uob acUYUh. vUb UI,T "LUlISS aUtl •• vhioh &1'1 .U",!)1. '0 =&1'£7 au'l so Un U .. '" thl u.a ~'UDt to Al'Uol. 1", puatnPb Z (b), of Part x: at tbl. CODYInnon. \1bIn ocmslcSutns lUob JollS, yaatur •• , tlla ZIlterpr1.e .ball ,!ru to Stat .. PVU .. whloh are 4.welopLnc Stahl u4 tb.ir r.atl:call tb. ,pportwll'" I)C ,tteeU,.. ~Ut1cl~'lOQ.

l. ':h. ~\nt:on~ U)' ,:' •• oZ'lb., lr. ~h. rul .. , nl"laUon. and pnotlture. of ~~e "1&~tol'lt7 proclldural &d£ .... b.tanth. raquu ... nt. an! c"...d1Uon. '11th rllp.d o:co :such :~ntrae,:. u.4 jolnt .,ctuz'e ••

PROPOSED AMENDMENTS Article 8

ReservatIon of sites

Each application, other than these proposed by the Ente~prise or by any others for reserved sites, shall co!er a total area, which need r.ot be a single continuous area, Lsufficiently large and of sufficient estimated commercial value to allow7 sufficient for two areas /mining operations7 of eqcivalent-Slze and comparable-vi!Ue7 The applicant shall indicate the co-ordInates dlvia1n~ the area into t\o10 parts of equal estimated commercial ,'alue. land SUbMit all d.e data obtained by him ·;lith respect to both parts of the area. Without prejudice to the powers ot the Authority p'JrBuant to article 17 the data to be submitted concerning polymetallic' nodules will relate to mapping. sampling, the density ot nodules, and the co~posi-tion of metals in them. With~n 45 dars of receiving such data the Authority shall ,iesig:late the part which is to be reserved solel~1 for the conduct of acti\Oities oy the Authority through the Enterprise or in associatlon with developing States. This designation may be deferred for a further period ot 4S days it the Authority requests 4n 1nde~endent expert to assess whether all data required by thia article has been SUbmitted to the Authority. The area desi1nsted shall b~-come a reserved are!1 The En~erprise and the applican~ may agree on which site 19 to be reserved for exploration ~nd exaloltatlon In accordance with art1cle 9. If the Entl!! orise an the appllcar.t have not so aareed by the tIme that :he a~Pllcatlon Is ~aken up by the TechnIcal subcomm1ssl0~ t~ TechnIcal Subco~mIssion snaIl allocate the two Slt:9 ~t random. The site WhIch Is allocated ~o the Ente risa elther y agreement or * ran om se I!Ct on s a ecome a resarvecr-

9lte as soon as t e plan of wcrk tor the non-reserved lrea rs-ipproved and the contract is signed. When the contract is si ned the contractor ahall submit all the data obtaIned

t w t res ect to t e reserve s teo W tout ce to t e powers 0 t e Aut or ty oursuant to art ,c e

the composit on 0 metals 1n the~.

Article 'J Activitie.-rn-reserved ~ites

Delete Article 9 and insert:

1. If the Enterprise does not aUb~it a proposed plan of vork for a reserved site that is approved by the Techhical Subcommission within four years of tho desig:\ation of that site pursuant to article 8, then the Enterprise shall offer to enter into a joint venture with the contractor WlO proposed the stte, provided that the ccntractQr has obtained the sponaorship of a developing State Party for the porposed joint venture, in accordance with paragraph t. ~hefour-year time period shall be extended for any time during which prevailing market price. for the commodities to be produced from tho minerals to be derived from the site indicate that the site could not be exploited profitably.

2. If the contractor referred to in paragraph 1 does not ent.r intO fore. a joint venture with the Enterprile within four years of the offer, the Enterprise ~ay offer to enter Into a joint venture with any entity referred to in articl. 153, paragraph 2Cb't 1n accordance with paraqraph 4. The Technical Subcommission ahall not approve any plan of work submitted by any ~ •• ultinq joint v.nture unles. it contains a commitment to .stabli.ha f.a,ibl.

procedure to compensate fully, from the proceed. of the prcposed activities, the ~ontractor referred to in para9rlph 1 for the value of any d~ta submitted pur.uftnt to article S. At the ~';1';1uest of ulther tho contractor or thu joint vt':tture, any


Articlu 8 ~es6rvation of .itel

Each .1pplication, other than those prcp~add b~' the Enterprise or by any others tor reserved site., shall cover a tot~l area, which need not be a aln~le c~ntinuous area, 8ufflclent for two are~8 of Qquivalent 8i%e and comparable value. ~he applicant shall indicate the co-ordinates dividir.~ the area ir.~o two parts of equal estimated commercial value. The Enterprise ~nd the applicant m4y a?ree on which site it to ~~ rd~~rvud f~~ e.<ploration and exp~,oltation in accordance with article 9. If th3 Enterprise .and the applicant ha'/u not so agreed b y the time that the application is taken up by the Technical Subcommission, the Technical Subccmmission shall allccate t~e two sites at rand~m. the site which i. allocated to the Enterprise either by a~reement or by random selection shall become a reserved sit! a9 soon as the plan of work for the ~on-regerved are~ is approvod and the contract is ligned. When the contract is signed, the contr~ctor shall 8ubmit all the data obtained by it with respect to the reserved site. Without prejudice to

, the powers of the Authority pursuant to article 17, the data to l e submitted concerning polymQtalUc nodules will relate to mapping, aamplinq, the denisty of nodule., and the compositicn of metals in them. .

Article' Activiti •• In relerved .It ••

1. If the Enterprise does not submit a propo •• d plan of wbrk for a reserved site that AS approved by the Technical Subcommi •• Jon within four year. of the duai9natlon of that site pur.uant to article 8, then the Enterpris. ahall offer to enter lnto a joint venture with the contractur WlO propoled the site, provided that the contractor haa obtained the .pen.or.hlp of a developin9 State Part) for the porpoled joint venture, in accordance with p~ragraph 4. The four-year tia~ period .hall be extended for any time during which pr6vailing mark.t price. for the commoditie. to be produced from the miner.ls to be derived from the site indicat. that the ait. could not be •• ploited

. ~r_"ti_tably.

. 2. If the contractor referr.d to in paragraph 1 doe. not enter into force a joint venture with the Ent.rpri •• vithintour years of the offer, the Ent.rpri •• may of I. I' to ent.r into a joint venture with any entity referred to in article 153, paragraph 2fb), in accordance with paragraph 4. The T.chnical Subcommi'lion shall not approve any plan otwork submlttod by any resultlng joint vonture unle.s it contains a commitment to establhh a feasible procodure to compen.ate fully, fro~ the proceeds of the propo.ed activiti •• , the contractor referrod to in para9faph 1 for the valuo of any d3ta submitted pur.uant to article 8. At the request of ~ith~r tho ~~ntractor of the jolnt venture, any dl.puto conc.~rn1n':l tho .l,1cquJc)' of tho rro('loled compon,atlon ahall bo submitted to ~L~ding commerci3l arbitration. Unlc.s otherwise agreed by the contractor and the jolnt venturo, the Tochnic~l Subcommie.ion .h311 detor con.ideration of the plan of wOrk pr,'pc"sod by the joint venture untll it can 1ncorporate the arbitral award into the plan of work.

3. If the Enterpri.e does not .nt.r lnto a joint vlnture wi~hin ,ix yoars of the clos. of the t1 .. period .pecified in


TEXT OF L.78

m10ls 11

~ 1. Cont:ncq ~ F~ldo tor j~bt =r~t., ,Ibozl t~ puUI •• 0 ·acz:OI,

b.twd tale oOQ=actOJ: uJ tNi .\u.thodt7 t1'=u.::b the :b".uo, In tu· tom ot joint V'D~O' OJ: ,r04uot100 .haria.t. u ueU .. ID¥' othH' tom of JolD. ~, tIblah abAll b:, .... the ,&Qt [I&'~tQ=UOD ~t tanlinAUoa, ",.aIlon = nd,l1aa u OCQtnot. uUb the .\uth:l'C1t~.

~. CODtnoton mtH'1nc into nob ~o1:lt UftnG'CIlUDta \11th the ~~1a. CIq' rlC.1.,. ,~1al J.ncontin. u ;u:~vlc:tMl :~~ In tho tJJwlc1al :ano,na=onta lIt&blilbecl 1D uUelt l~.

,. !oint YOQtun pannan ·)C th. 1~1':Il~u .han ~ UAblt, C= ~. pa)'Unta .eqa1ra4 lJr anlele 15 to thto axt:a' Gf -=haU .1~bt Yell~ .1llZ., .ub3oo. to :~o1a1 SDocU ..... ~Q'rUe4 ~ uUcl. 1;.

_.---...- ....... : .. -~

PROPOSED AMENDMENTS

u~pute concerning the adequacy of the proposed compen.ation aholl be Dubmitted to binding commercial arbitration. Unle •• otherwi8e agreed by the contractor and the joint venture, the Technical Subcommission shall defer consider3tion of the plan of work proposed by tho joint venture until it can in· corporate tho arbitral award into the plan of work.

1. If the Enterprise does not enter into a joint venture wl~hin 81x years of the close of the time period .pecifled in pa~agraPh 1, the contractor referred to in paragrAph 1 may submit • propoled plan of work for that site. The requirement8 of article 8 shall not apply with respect to any auch plan of work. If.the contractor does not submit a proposed plan of work wlthin eight years of the time period specified in para~raph 1, the site ahall lose its .tatua aa a reserved area. At that time, an~· entity referred to in article 153. paragraph 2 may submit an appli~ation fo~ • plan of work covering that site, provided t~at the pr~posed plan of work containa procedures for full compena.tion as reforrdd to in paragraph 2. Any disputes concerning the a~equacI of the proposed compenaation shall be resolved in accordance w th paragraph 2. .

•• !be IAtapril. M7 c~lu4. oonvac_ tor the U.ollUon ot tal't ot u. acUvUt •• in accordanc. with .&afta lV, uUcl. 12. It lllar alao _t.1' lnw Join, wentur .. tf1& ~. oODdlld ot _ob a~thU' •• witb M7 wUllns at"t •• vlaiolt-. . .UGtble to ~ out aotlnU .. in tba Ana paI'.uant to ",!ole 1Sl, pU'asnpb 2 (b), ot hz't II ot tbia ConYention. Wban couid.riftS alloh JoLn, yeft""'.', the Enterpl'l •• aball ott .. w Stat •• Parti .. whicb u. clavelopiAS S'-, .. &ncl tbeu uUoul. Uae opportuu1'7 ot .lteGU,. puUolpaUOD.

Article 11 Joint arrangements

Paragraph 1 as in L.78

. 2. Contractors entering into such joint acr ' :f:~d t~:r E~!e~:!i;~n=:~i!~c:;~:n f!:anci7al inc~l!1ti~:~e~i:t:co_ accordance with article 13 9 entrs esta~_i8hed 1n

I paragr,1.ph 4.

l. Joint venture partners of the ~nterpcise shall ~~a~~:i;Ojof~~ eayment& ~eqUire~ b:t article 13 to the E:)·~nt as provided in7 ~nture sdare, Lsub~ect.to finanCial lnc6ntives

~ n accor ance with act1cle.ll, p4cAgraph 14.

Article 12 Activitiea conducted by the Enterprise

Delete paragral)hs 1 and 2 and insert the :~1l . .)win9:

Thiu Convention, its Annexes, the rules, regulaaJ.ons and procedures of tho Authority and the decisior.s of any or9an of the Authority shall apply tc the Enterprise in the same m4nner as they would to any other operator except in those C4ses where the Conven~ion expressly provides otherwise.

............. . I. L.78 AS IT WOULD READ

WITH US AMENDMENTS palfagraph 1, tho COntl'ActOr referred to 1n pa'at,." , M, ..... " a propo.ed plan of wock for that .1t.. The req~lr .... '. o. article 8 .hall not app!y with r •• pect to any .uch plaD 01 ~ ••• If. the contractor 40e. root aubAit • propo •• d plan or ~rk ." ••• oight year. of tho ti~ period .p.clfi.d 1n para~raph 1, ,~ •• ,_ .hall 10.e its .tatu. as A ro •• rvo4 ar.a. At that t1 ... any en"" referred to in article 15J, para9raph 2 ~ay .u~lt .n appllc."or. fo~ • plan of vork coverin9 that .1te, provided t~t the ~ro~ •• ~ plan of work contaln. procedure. for full co=pen.atlon a. r.forred to in p~ragraph 2.. Any ~laputo. conc.rnln~ tho adequacy of the propo.e4 compensation .ball be r •• olvod 1n accordanc. with paragraph ~ ...

•• Iba .t."'1'1 •• 8q COQIIlud. c_vao'- '" Va .... auUoo cl put at 1'adin" •• lA a;CQrdano • .,Ub AnA .. IV, u"ola tal 'I.., abo c&u tAu JG~' Y.&urea lfa tb. 00114111:1 ot OIIob actiYlt'.tI "nb M:I wUl1r.. "t"!" vblc~ u. eliGlbl. M cU'q ClUI 10U."'.a lA abe . ~1II'8\I&A' &0 QUcla 1~. pa.rap"lpb 2 (b), ot ""1 U ot til,. C:OG~ '~ft. When Ccn.lt .. lnc uch Jo1£1 'I'.nWl"". \be Efthllll' ..... hall olter 10 sca&,,""t " "bLoh u. 4."llopLn, lea& .. KJ "'IUaa\loull \be OfPOl'll&Dll7 ot .tctotLya p.ruol,.UOG.

Arttcle 10 Separ.te It.,.1 of op.rations

If an operator in accordanc. wtth articl. S, paragrah 4 (c), ha. an appro\ed plan of work for •• plor.tton only, he shall b.ve a pref.renco and. priority a.ang applicant. for. pl.n of work for ..plott.tton wtth r.gard to the ..... r.a •• nd r •• ource.; provided, ho~ever, th.t where the oper.to,'. petfor.anc. h •• not been •• tt.factory such pr.ferenc. or priority .ay b. wtthdr.wn.

Articl. 11 Jotnt .".ng •• ent.

1. Contnota.q pow". t_ jolnt ~$ •• Wen ,"Ie ~1 •• ao~. ,"twa UIit ClOQU'ao,_ &nil tN AIl~lQt tl-nu,:h lb. ~"'14o, 14 lila tom or joint .. antvo. OJ: pl'o4\&0'1on .wtns, U 'N11 .. aIl1 othu tOl"Q of Jc:!,r., a.canaec_I which 'Ml1 h:.v. the ... ae pro\o:aUon ~t ten1.nAUGQ, .lIIIplAa1C11l 01' nvu1CIQ 01 eOQRaob vitia \be Au~lt:1. ,

2. Contractors entering into auch joint arrangements With the Enterprlse may receive financial lncantiv-s A.~tabllshed in ~ccordancp. witn ar:icle 1l, nAra9raph 14.

3. Joint venture partners of th~ Enterprise shall_bp 11aDle for the paymentarequired bv article 13 to the extent of 1:..~01.C )Olnt VQnture .holre, 1n accordance with article 13, parAgraph 14.

Article 12 Activities conducted bv the Enterprise

This Convention, ita Annexea, the rules, requlatlons and procedures of the Authority and the decisions of any organ of the Authority shall apply to the Enterpris9 in the same manner as they ~ould to any other operator except 1n those cases where the Convention. expressly provldes othewise.


TEXT OF L.78 u~·t' rs.,pnow ~ t C9PtB!t.

1 In adoptina wl,... n;u1atiOISII aM ~odun. ecm-:UDin.: tho t1Jmftcbl te~ ;t a cor.ucot b,tvoa the .luaoft~ aa4 tl\o mutt .. ::".ftld to in •

U 1 1" pua;nph" (11) of Put Xl of ~ ComonUcm in occczdanco v1 .. 11 tho U 0'. ~ ~ Uatlaa tM t1aaaa101 tt=I ct a oon=o' J.n !!!'c!:= !f~a:.X;Of1l1OU ~'an XI aad thoI. nlOI, nl;\\lAt1CM anrl ~occcb:9c, the 1Iltbod tr Ihol.!- ", .JUi4e4 b)' .0 tollovialr ob~.oU'f'"

. (a) to .r .... optillUD n'fcue' t= tbe Autbadtj ~ca the pRCCI~. ot o:o:aerc1&1 UlIloUaUaa;

(b) to a'tnot 1zrf .... U aDd t,obllolocr to tho aplcnUon &lid t'.CI'loUdlO1'\ :t ;he .\Hal

(0) to !GIl=- '!lU&u._ ~ tiMnc1al. ~.aQmt an4 cca:puabl. CilwlcUl . ;)bl1ptions Oft the ~ of ~ StaM. UId othc entiUn Wicb obtdA oontnc·:.,

(d) b provide ino.oU"" on a \Jft1tcms _ n0n-41.cd.m1c&torr but.a :~ AOftt:act01"l t~ lIftdutak. jo1D' ~tll \11th th, :btoqda' aM 40'1elopLrta ;~~l!' oz tlMu national., to .t1mulat. tho 1:naItO' or \.cbD'lloc:r thullto, mel to ~ ,the JlftaaMl of the Authod.tr Mel of eI..,.lop1l!a State.;

h) to enable the ~_. to 'naap !n .... -bed ~ .ll.oUYllJ' &:.'.lU sue tim ... tbe ent!.U •• zeten4 \0 III uUol. 1", pua::nph a (b), ot ttl\:,. ~ .. )r ~. Comention; GD4

(c) to cr.an that tb. t1nllloiol inc.nUn. !'Izoy1dec! to COfttao,on UlllieJ: ph 14 = undoz the tuu or cOQtzaot. "'11"," 1D oocorclaM' \11th =:: l' ~ undO' the p"U1Ca8 ·ot utl01. 11 vith ~ .. p.ot to ",oiDt .,a1:=e.,

,hall not ; •• \11, 1D .ubll1dil1aa CODtI'ootc=. vUb a '11", to pboiDa tbMI at u.. ar.UloWl:l' coap.t1U" _DUCt ~l .. U'" to lanc1-ba.ed aWl.n.

2. .l C ... ball bo 1..,104 roz tho a4=1n1auIlUve ce.t ot ,roe ... in(: en .ppl1caUcn Coz .. OOft~&Ot at tz11loaUob MIS .xploitation &lid .ball ", CJ.:ced 0\ an UCNDt: ot ~·,OO,OCO pc appUoaUon. U the oolt iDOUI:Zed b)' the Autbozlq. 1n prac"'iDa QIl application 1. le'l tb&D ;~'OO,OCO. tM Autbczlt7 ,ball nfund tM -lUter.ne. to me GppUOAnt. 'lilt IQC\IIl' ct the C.. Ihall be nvl,m tJ:OIIl t1m. ":0 t1a1 bJ thl Counell SA me' to cnsun tbAt it oOYII'a tho 8Ilftin1stl'aUv. oe.t ~t r:rao ••• 1n(r .uoh aft QppUcat:1cn.

). A contnotu eblll ,., !A a.mUA1 tbed '.0 of !'1 aUlion trom tho tim;. ;)!. 1~t:7 into torc. or the OODtnot. U the appzoved OOftlClllClQlQt or CoaDoJR14l pr:d1:o~i=s t.a pctItpoaod beCOUlI of 0 lIo1q iD the aUcoUlon ot 'b. ~04\lct:1on 1I.:1~1Or!:a;lOD. 1D aooOldonae tilth ozUo1. 151 ot P02:t XI: ot thi. COIIYenuon. the U'.n~ t1:ed C .. ab&l1 b. uai.,ec1 'or thl 1'11'104 ot !'CItpOftnGDt. 1:on t1:a ':oaMftceamt ot ocalOzo101 pzo4uct1=. th. OCDt=Ot= .bIll ')q tltbU' th. ,roci~t1:ID cbal'Ce = thl cm=al tlztcl lH. 1!h1oh."O' !.I (%ftatlJ:.

.J. 'JithiA a ,.u baa the l1at. "t oCllll:ltftolant o£ ttA :ea:lOl'oal I=04uc":!..:n, i..~ cenl'onUy uUb ~tIb " • OOD~otcz .hall :MOIl ~" ::a!:11 i:iA !1r.iUlc1al conttlb-.. t1:o ":0 the &&thazitr IUhe: ql

(I.) ~. prc4uat:1CID ohua-~: 0:

(b) ~ a ooa!dDation ot • ,:ro4\lOt:1on cbazae md a Ib&n fit Cit ill'Oo10.5 ••

5. (a) 'l!' a cantnot:oz choo ... ~ ua hiS tiMnoial contftlnlUon to 'C!1., ,w~riV bJ pqlq • p::oduaUon chA.."'CO-cml7. it IhaU 110 tu.« .t .. p.:rceatar.o .,r ~I -.n.t nlu ot til.! pooH.OII _tall pncSuoed er- the 004\11" txtftot" ~ ~" ocnuu' ~ .. SA &OcmMC' vith ,be lollGVille .cblWl ...

(L) 11. 1-10 ot O~"1a1 pzo4uoUon , pc oln'

PROPOSED AMENDMENTS Art:.cle 13

Financial Terns ot Contrac~s

With the exception of p~ragraph 3, article 13 remains as in L.7B.

3. A coneractor shall ~ay an annual fixed fee of $1 million from the date of ~ntry into force of the contract. lIf the appro',ed commencement of commerc!~l p!'oduction is postponed because of a delay in the allocation of the ~roduction authori3ation, in accordance with article 151 of Part XI of thi3 Convention. the annual !i~ed !e9 shall be waived for the period of postponement.7 Fro~ t~e commencement of corrmer·:ia! production, the contractor s:lall pay either the pro.3uction charge or the annual fixed fee, whichever is qreater.

... - -L.78 AS IT WOULD READ .WITH US AMENDMENTS

Articl. n .. 'Inanclll t.r., of contract.

1. In .doptlng tul.l, r.gul.tlon •• nd proc.dure, conc.rnlng the finlnet.l t.r •• of • contr.et b.tw •• n the Authority and the .ntitt •• r.f.rr.d to In .rtiel. 153, p.ragrlph Z(b), or 'art XI of thl, Conv.ntin tn accord.ne. with the provt.ion, of P.rt Xl, .nd 1~ n.gotilting the finlnet.l t.rm. of I eontr.ct In .ccordlnc. with the provi.ton. of Plrt 11 Ind thol. rul •• , r.gulltlon. and proc.dure., the Authority .hlll be guld.d by the following obJ.ctive.:

(I) to In.ur. optl.u. r.v.nu •• for the Authority fro. the pro-c •• dt of co ••• rclll •• ploltltlon; ,

(b) to Ittrlct Inv.tt .. ntt .nd t.chnology to the •• plor.tlon .nd .xploit.tlon of the Ar •• ;

(c) to .n.ur. 'Qu.llty of fin.ncill tr.lt .. nt and comparlbl. finlnclll oblig.tlon •. on t~. plrt of .ll Stat ••• nd oth.r .ntltt •• whiCh obtain contr.ct.;

(d) to provide Incentiv •• on • unlfor. Ind non-dlscri.In.tory bali, for contractor,· to und.rt.k. Joint Irrlng.a.nt. with the Ent.rpris •.• nd dev.loplng lountrl •• or·th.;r nltlon.l., to .tl.ul.t. the t,ln.f.r of t.ehnology th.r.to, .nd to tr.ln the Plrsonn.l 0' the Authority Ind of dev.loplng .tattl; market value of the processed metals produced from the nodules extracted from the contract area 1n accordance with the following schedule,

(.) to .n.bl. the Ent.rprl., to .ng,g. tn ",-b.d alnlng .ff.etlv.ly It the •••• tt •• al the .ntltl •• r.f,rr.d to tn .rticl. 153, p.r.graph Z (b), 0' Plrt XI of thl, Conv.ntlon; ,nd

(f) to .nsur. th.t the fln.ncl.l Inc.ntiv •• provld.d to contr.ctor. und.r p.rlgr.ph 14, or und.r the t.r •• of contr.ct. r.vl.w.d in .ccordane. with .rtfcl, 19, or und.r the orovlslon, of arttcle 11 with r •• p.ct to Joint v.ntur.t, th.ll not r •• ult In subsidizing contr.ctort with. vl.w to pl.clng th.~ It ," .rtlficially com~etltlv. .dvlnta,. relit tv. to land~ •• ,d .In.rt.

2. A f ••• hlll b. l.vl.d for the ,d_Inlter.ttv. COlt of pro-c ••• lng .n .pplic.tlon for. contr.ct of .aplor,tton ,nd •• ~lottation .nd .h.ll be fil.d It In .-ount of 1500,000 plr appllc.Clon. If lh. co.t Incurred by the Authorlt, In ~roc ••• lng .n .ppllcltlon t. l •• t thin 1500,000, thl Authority Ih~tl r.fund the dlff.,.",. to the applicant. Th •• DOunt of the , •• ,~.ll b. revl.w.d froa tt •• to ttee by the Council In order to en.ure th,t It cov.r. the ,dainl,tr.tiv, cOtt of proc •• ,lng .ueh .n .ppllcltlon.

3. A contractor ahall pay an annual fixed tee of $1 million from the date of entry 1nto force of the :ontract. Fro~ the commencement of commercial production, the contractor ahall pay either the production char9. or t~. annual fixed t.e, vh1chever is greater.

4. Vlthln. , •• r fro. the d.t. of coa-enc ... nt of th' c~rcl.l production, in confor.Ity with p.r.gr'Dh 3, • contractor .h.ll choo •• to •• k. hi. fln.nclll contribution to th •. Authorlt, ,Ith.r by:

(.) p.;ing. production ch.ro. onl" or

(b) plying. ccabin.tion of • production ch.rg •• nd • th.t, of nit proc .. d ••


TEXT OF L.7S 6. It. OODmotc ohoaet. to u.ke b1e tlDancLal oontd.wUca to tho

!u.tbont7 1:1, ~ .. ocUinaU. ot a pzocIuGt1on ohup &.Ad a ........ ot nut Pl'0ceecSl, lUeb pQ'IhiDti ~ be dtttZll1Ded AI t01101111I

Ca) 1M 1=04'.loU. Gbarce .ball 130 lizM a' a PCOlDtap ot tA. a&J:l:et nlul ot tbe pI:CIC .... 4 .. tal. P"Qd~M ~ Use ,,041&11' ~.oted fI:aa ~ cemmot u: •• J.c ICCcmJUC. vitb ~. toUCN1Jl.: .~ul.'

(1) tLnt perioll at Oomel'Cl1&l ~\IOUQQ .\

(11) .10_ 1'~011 of o~ poduoUoa

:I pc c.nt

.. ~ oed

I:, 1a tb •• ec0a4 perioll ot o~ial pndUOUOD. AI detWd 1A .~~ Cd), ~ht ntu= on 1awlatuzat 1A &a;y &co01lDt1ac ,tg, AI d.t1McJ 1a ~Jlb (D), :lJo.&l1 tall below 1, pc a., aa a nlUlt ot the ~t ot the ~oII\1Ot101l charCO ~-: , pe OU1. \:11 p:04UOUZl obul8 Ibal1 ~ 2 pc oent iA.tUAS at 4 PI: OeAt 1: Usa' &COOUA'iI:Ia 1M=. .

Cb) h.&14 ... , '1&1. Ual1 be tbe ~cduo' of tbe quuautr of +a i'1'~1".t .. tala szodUOM tna tkt D04ul.. txtI:&ottd tz.. tile OGlltnot ana aDd tbt annp pric. tc aoal .. tela dud.l:ls tM :.lovAftt aooClllllti_ fAI' .. .:1lrlDad 1a pulGnphi 1 tad 8.

• (0) (1) • .la&tiboriQ'a Iban ~ Clti p:oO • ..s1 aball be t.J:ID GUt at ttat IIQE'U.GIl at Uat o_tranc'. DQ ~ • .s. Wiab 1. ~,tzibQtable to "b~ Di&WIs ot 'hi :NOIIna. ot '\:be OQllfino' =ea, :et.=-4 to bc.U:&tte: .. attritr.atabl. Dot p&'OO'.'. (u.) \'bo ~~tr" ahar. of attributiablt Q.t prooe.t. Iball be 4tuniAtd 1D aooori=co "UIl tile toU~ ,="NIltal, .c:Mc1u1o.

rmt! ot d;JblaStblt t hOs •

i'b&t; panlOQ ~.tftI.UDa • ntum _ in .... t.ct

. ubich 1. ;na~u tbIm o pc 0.', 1:nlt 1 ... tbu 10 pu OQt

~t; panl_ ~ .. enUAa a ~.~ aa !ate.i;uQt; \Ib1cb II 10 PI: COAt = !fta'e, blat 11 .. Uwl 20 pt: OIDt;

':bA' ponton :.pn.Qt1Da a r.tu= an .laY •• tatIl, -. uhicb 18 20 pc ceQt QI' ~ ... tu

c:=J'~ "pc OlD' 40 JG oct

42.' ,,: 00Sl' ,0 JIG oen~

50 ~ OlD' 70,c OOD'

(d) ':he ttnt pmoll ot oCIISUC1al ~oIIuot1QQ :.tu:n4 to 1a lUb~asnpba (.) an4 (0), aball OOIDIDOI 1D tile t.ln' aoooUAUns reg of oQZlla.J:Olu. ~uct1C1l, ad temina'i 1:l tbt &coounUaa ,.a: in uD10b til .. COIlt:AOtoc'O 4..,.lopent cOlta v1th intlnlti GIl tbt UDncoflncl JOZUCQ Uslnot u, tull1 nco"nd 1J1 bt. oull ltD:l'lUl, AI a.t· GUt; belov.

IA the ttn, aoccnmUlla,.u 4=iAa \Ih1oh 4ovllopull' Cotta an iAcun-ed, um:eccwead 4ndopalD' oOlt. .hall lqual tIao d..,tlop!llm' ooat. 1... cub IwrplUl J.n that; 7em:. III I&Cb IUbMtl\IGA' .0oomt!Dc ,.u, \lDnOO'II:M bvtlopalOSlt oo.t. ah6ll lIlual the unnoO'fencl 4..,,10..-t oae .. at tIM ~.otd1Djr aooo=t1IIa JUI:, pl~ iA'cod tbtnon at tM nt. ot 10 pa oent IIU &Im_. plUl d .... lo .. _' OOlta iAol.Iftt4 1D tht CI\IZnA' looouzat_ ,.a: _ It .. oGllnaoto&". 0" '\I:II1Ul La 'M 1NI:'n1l\ acocnmUAa 710:. • &COOUDtiaa 11.- 1D Wiob a.ooy.:-" 4fttlapllllA' =~.~ blcem. c.n tc tile ttn, ,_ .ball be tba aooClWlUDa )-.u 1:l wIltcn til. concnctOl'" d ... 10paalt aoet. ".ub lnte •• , CD tM um:acannil p=tiaza :laatat ~. CuJl¥ noowa:t4 11, b1a ouh l\1:li1\11.

tbt contfto,QI'" cull I\IZSIlua 1D ur aooowsUDI ,ea: abaU bo b1e a:OI. p:oc.ad. le.1 MG -openUl\l OOita l11li ltlll b1a ptpfttl to the Autbod.t7 lDSu .~_(o). .

~ •• 00n4 ~od ot oOl8G'01al s=oduotiGll ahall OGllillnCO 1A tIlo acoOUZl1;laa 1.": toU01fU1a ,h. tami.cAUOIl ot the tu.t pui04 ot COCDG'OW p:cduoUOIl aceS IbU cont!Aut untU tho GAd ot Uw oaat:not.

PROPOSED AMENDMENTS

- -----_.-.-.--- . L.78 AS IT WOULD READ

WITH US AMENDMENTS s. Ca) If. contractor chool •• to .. k. htl fin.nct.L conl't~c'on

to the Authortty by plying I production charg. only, tt ,hall b. f"td at , p.rc.nt,g. 0' th •• ,rk.t v.lu. of th. proC.I,.d .. tal, prOduc.G fro. th. nodul •••• cr.ct.d 'ro. the cantrlct Ir., tn 'ccord.ne. W'Ih the following Ichedul.: •

Ct) y.,rl '-10 of cOQ .. rct,l product'on S p.r Clnt

(it) yearl 11 to the .nd of eoa..rclal production. 1Z p.,. cent

(b) Th ••• id ~rk.t v.lue Ihlll b. the product of the qu.ntity Gf the proc.lsld A'Cll. produc.d fro. the n4dul'l .acracted frOG the CGnt~lc, ar.1 and the Iv.r.;. prlc. '~r tho ••• ,t.ll during the r.l'Vlnt .ccountlng y •• r, I. d,fin.d In p.rlgraphl 7 Ind e.

6. If I contrlctor choo ••• to .,k, ht, ftnlnci.l contribution to the Authortty by p.ting I cOabln.cion 0' I produce Ion ch.rge and 4 .h.re of n.t proc •• d., .uch ply •• nt. Ih~ll b. d.t.r.tntd .1 follows:

CI) Th. productton chlrg. Ih.ll b. ,t •• d .t • p.rcent.g. of thl

Ci' first p.rtod 0' coe.ercl.l pr~duct'on

Cit) •• cond period 0' CO •• lrctal production

2 p.,,. ctnt

4 pit .. cenC

If, In the •• cond pertod of co ... rcial productton, IS d.fin.d in subparlgr.ph Cd), the r.turn on inv.st .. nt tn .ny .ccounting YI.r, as d.ftn.d tn subplrlgr.ph Ca), Ihlll fill below '5 p.r Ctnt II I r.iult of the ply •• nt of the productIon charg •• t 4 p.r clnt, the production chlrge .hlll be 2 p.r c.nt tn.t.ad 0' 4 p.r :tnt In thlt Iccounting Y·lr •

(b) The I.id .. rket v.lu. 'hill b. t~e product of the qu.ntic, of the processed •• tll. produc.d fro. Ch. nodul., •• Crlct.d fro. the contrlct Ir., Ind the Iv.r'g. prtc. for thol •• Itll. aurtng the r.l~v.nt .ccounting y •• r II d.fin.d in Plrlgr.phl 7 and I.

Cc) el) The Authority', Ih.r. 0' nit procold, sh.ll bl I ••• n uut of th't portton of thl contr.ctor', n.t procl.ds which is attributlbll to the atntng of th' rl,our'I' 01 the contr.ct Irel, r.flrr.d to hlretnlft.r I. IttrtbutlbL. n't proc •• d._

(tt) Thl Authortty', ,h.r. 0' Ittrtertbut.bl. nlC procl.ds 'hill be dtelr.tn.d 1n accor~.nc. wtth-th. 'oLl~wtng incr ... nell ,chedul ••

Portion of attributable N.t 'rocl.d.

That port ton r.pr ••• ntlng • r.turn on inv •• t •• nt ~htch t. gr •• Clr th.n o p.r Clnt, but lei' thin 10 p.r clnc

Th.C port ton r~r ••• nttng • r.turn on inv •• t •• nC whtch tl 10 p.,. cent or grl.ter, but l.ls th.n 20 per c.nt

,trat pertod 0' co. •• reil' production

15 pe .. Clnt

42.5 per Clnt

Th.t port ton repr ••• nting SO p.r clnt • rlturn on tnv.lt •• nt which t. 20 per c.nt or gr.,t.r

S.cond p.riod of co ... retal prOduccion

40 P'" cent

50 pe,. unt

70 p.,. Clnt


TEXT OF L.78 (.) The tea ".'UiblaQb1. att snoe04.· IbaU _us the poduct of the

oon'~'O'C=11 net ~.ed. ulS the nUo ot the aftt1opDt:1A' OO.tl 1ft th. =in1nJ 1.0t"" to tbe GOIltnotOI'" 4fteloplllftt oaetl. III tlM ftClO' tha't 'the aCI\~&otC1: .~-O. SA~, tnupGl'taUIID of Ilodul.a UI4 ~uoUon ~ ~t t!u: •• proooe.e4 _'CAl" ftIIII17. co1s&1t. oOp';)c _ IlicJ:ol, tho mewt of &'ttdbutable net ~oo.ed. ahaU no' be ~ooa tba :, ,. oemt of till ocmtzootoZ'1 n.t PJ:0coecl •• 3ubj"t to IUbpanc:npb (n). III all oth. au... lftalu4ma tbos, vl\=1 the contnotoJ: ~, SA 1WWtcr. cnupcll'taUOIl of nC'dul. .. , and FoducUOft pUa:1l:r ~ f~ pnoaood .. tah, aaae17, Gobelt, oGppaJ:, CIISft(S&IlOiO cud Ilicul. the Au~ont7::ar, b, neuJ,&Uou, ,.1OJ:1bt .~t. noon t411ch IMll bec tM Game r.lotloaahil' b t.ob cu. .. tba 2, ,.Z 0.' noc 4001 'to the tllnlt IHtal ,CU".

(t) DIe tea ·OClltno='. net poend.- .ball Mall the oaatnot='. ~, .. pnc..a. 1 ... b18 opaaUll: con. cm4 1.1 thI zoccmq 01 bU dfte1op11At COtto .... , od Ia ~ (,,).

(er) (1) !: tM fttat *t the CCIIl1:not. ~. SA~, tnnq=tau:r. of nodule. aM pnduUOft c:f'PI'OOolltd atab. tho ten ·OCI1tnot=I, en.. POOled.- ahaU lINn tM Gl'QI' n'lemw. tEo1l the eal. ot the

(h)

(1)

»zoO ••• td _tal., M4 tJZ'(f othtz aoaio. dlt..a '1:0 be nuona~ , .\Ui1Ntable to tbI oponUOQ ot _ ~OQtnot Ia aoou4anot wUh the f~ n1e., n..oeal&Ucu UI4 lIJ:OOtdun. of tbI AuthazltJ-.

(11) 'Ill &11 cu .. otbtz ,thID ~ •• ptoitiGd 1ft IUbplncnplw (a) (1) ~,~ (n) (w) tile \en ·coauao'o"'e ~ee pZOOCle4.· ~ IIIIaD tbo ~~alt n' .... hal the Al. ot the .n1-~ooCl,,04 _tall tzaa t.1l. noduli. utzaottd twa the OOfttno' uta., _ IlZfI otlzR acal.. a....s zeuonalil:.· • '~b1. to the optmUOIl 'Jt the OOftt:=ot in Moonusc. vUb tt .. tb&ulaSal Nt., ftG\IkUCIftI .. t=Codun. ot tbe .luthol.'1t:T.

'fhI t .. -o.CIltnota" daYolCpl4!nt cOla- ahaU a.GIll

all apdi __ iAo\lft'ed pl. to 11M OOllDCftll..aat ot C0IIII801a1 po4uoUan tddob 1ft 4uoot17 :elAted to tho c1"olopunt ot tho ps'OduoUy. O&POl~ ot the OO1lt=o\ uoa 0Dl tho ao~Yi~ .. ·~.b~d tUftto fc optnUcma we the COIltnot 1ft aU ca" othoz thaD \bat .,.oltlt4 ln ,u"'~ati" (n) ln ooatonltJ v:l.tb ca~ 1ft0CDi_ aoaoa'SDa pd.Doipl .. , iDolwU.aa. ~ oaet. or _chia~, fClUJ,EIUft', IhlVI! lII'00ll"ina p1aa~. OOftltruoUCll. 1N11diDu"'!l, lad, ne4't DZ'OCl'toUn(r UA CltIlontion of the oontl'ut u.. H •• cob ID4 c1ft.lop111Clt. lnt ... " zequ1zod 1 ...... UC_OH. f ... , UId

(11) 11ai.1u" apaditun. to thea. c1ol=lbt4 1D (1). abcrY'11nouft'" lUb.equenll to til. CCIBMIlOalllOllt ot 00IDGI'01a1 pzocluot oa, 1110"'&2:1 to ~ GIlt b p1ID 01 vo=. uatpt tbot. ohuco&b1. to OlJIfttlDa ooete.

(i) . ~ pzoo..al baa tlso 4l11'coal ot oapUa1 .... te CIII4 tba -=ot valu2 of thot' oapital u .. _ Wi_ an ISO lqc ~1Cl~1Id f. opentiCIIW aDd. the contract ud wblch .n aot '014 ,ball lit 4I4uct'" fJ:GD tbI contnotc'o aftt1opD1Qt COIU du~ tile ftlftlAt aooount1a(f 7'U'. \lbon thelO deduaUoa aaeed tbI oonuaotor t I a ... 1GpIIIQ'.ooetil ~ t:IC ... UAU b. udlld to t.Iw oon_atc'. arM' poootd ••

(,,) !be oCiltnot.'a dftelopaa' 001_ 'ntGftd to lD ~pbI (Il) (1) u.S (Il) (lY) ebA1l. b. Z"~ftOII in 10 equa1 enmsal lutalDlDte tz'OII til. elate ~ , Cc:aDalGceat ,01 OOIDaOlal pnduoUoa. b CClQtnota'. dftelcpMAlI oaeta 1ne'JftItd IUbaoquAt to the oCII!MMnant of oomaoSol Fad_Uco. zeflftt4 to lD I\Ibpuqnpbl (b) (11) UIII (n) (lY) -=u 110 Z"~tncl lD 10 a tevu tq~ CMU&l 1Mtalanu .0 .. to tuun tbeu oOlll'lC1'M Z"~.",. _ the lid ot till ooa~t.

(!:) b ~OZII "OCIQuaot='" op-=UzTe eo.te" .hall -us 011 apoacJl1:un. i.ncNae4 attu tIM OCIIIIeDClQIDt ot oOlllllUOial pnclUOUOD lA tho opontlcm ~l t:to ~~uoUY. 0&!,'&01t)- 01 tbI cmtn.o1: ell. IIDd tbo aOUYlt1o. nlatct4 tbe:eto, t.:Jr opent1oa. au tile oontnotl. 1D oontomitJ- vUb cenon11r ftOoanlsod aoCINDt1n(: pdDc1pll •• lncludlna. IpS:!A;", tho f1:l4 Aamta1 tit OJ: tlst ,rocSuaUCD cbu:;o. ·.th1chner 1. ~_tor, ape ltun. foz ','"H, lalultl, ftIlI107" bentflta, =atert&1a •• en1o .. , tnII.Iponau'OD, ~.aDiDG' an! aazi:.tq 00'''', lnt .... t, utWUe., pnlUftUCIQ ot tiM ..nne ttn'i.J:onIUQt, overhead cmd cdalD1l=aUve


(d) Ihl f1rtt ~rlod of co.~~ci.l production rtf.rrtd to In ,ubparl~r~h' C.) ,nd (c), Ihlll co"tnc, in the first .ccounting yelr of co ... rci~l production, .nd ~tr.tn.t' 4n th' .ccounting yt.r in whtch the con~ractor·. dev.lopm.nt COlt' with Int,r,st on tht unr.c~vtrld port'o~ ch,reof .re fully rtco~trtd by ht. calh lurplus, al 'It out bllo~.

In the first Iccounttng ,.Ir during which d.v.lop.,nt co.t. Ir. 1ncurr,d, unrecovtred dIVelop •• nt COlts '~Ill .qult the 'dev.lop~.nt co.ts le •• clsh surplus tn thlt y"r. In tlch subs.qutnt Iccounting ytlr, unr.covertd devllop~tnt COlt. Ihlll tqull the unrlcov.r.d dev.lopment CQltl of the pr.ceding .ccounting ~9ar, plul inttrtlt th.rton at the ratt of 10 per cent p.r .nnun, plus d.vtlop.tnt cOltl tncurrtd in the curr.nt Iccountlng ,fir Ind l •• , contrlctor', c.,h .urplu. In the curr.nt Iccount1ng ytlr. Th. Iccounttng ytlr in whtch unrecovertd d.vtlopm.nt COlt. beco •• ,.ro for the fl"t tl~., 'hall bt thf Iccountinq ,'Ir 1n whtch the contr.ctor', dtv.lopNtnt COlt, with Inttr •• t on the unrtcov.r.d portion th.r.of Ir. fully r.cover.d ~y hi, cash surplus.

Thl contrlctor'. c.,h .urplus In any Iccountlng yelr .hlll bt hi. grol' proc.td. ll.1 ht. op.rlting co.t. Ind l.s. ht. ply.ents to tht Authority under subparlgr.ph Cc).

Th, •• cond p.riod of cOM .. rctll ,roduct10n shill coe.tnc. in the Iccountlng Y.lr fol\owlng tht t.rwinltlon of the first ,.rlo~ of COlUl.rehl, nrntfur."nn And shill c~ntfnu. u"tH th •• nd of ttl' contract •

(.) Tht ttr. ".ttributabl. net proc.ed." Ihall .t.n th. product of th. contrector's n.t proc •• d. and the r.tio of t~. dev.lop .. nt costs 1n the .tntno •• ctor to the contrlctor'l dtv.lop .. nt COlt.. In the .v.nt that th' contrlctor .no.g •• 1n .In1n;, tr.nIPort.tion of nodulf. and productton prl •• rily of thr •• proc •• ltd a.t.l., nlm.ly, cobalt, copper and nlck.l, the .-ount of Ittrtbut.bl. n.t proc.eds sh.ll not b. l.s. than 25 plr c.nt of the contr.ctor" n.t proc.ed.. Sub].ct to .ubp.r'or.ph en), tn .ll oth.r ca ••• , includfng tho.t wh.r. the contr.ctor tnOIO" tn .'nlng, tran.port.tlon of nodul •• , .nd production pr' •• rtly of four proc •••• d .ttlll, n.~.ly, cobalt, copp.r, .,no.nt.t .nd nick.l, the Authortty .,y, by rtgulationl, pres crib. Ipproprl.t. floor. which .h.ll btar thl •••• relltion.hip to tach CISt •• tht 25 p.r c.nt floor do •• to ~h. thrt •• et.l CIStS.

(f) Th, t .... "contractor', net procttd," IhlU 1II •• n th. contr.etor', aroll proce.dl It •• htl op.rlttno co,t •• nd l.s. the r.cov.ry of hil dtv.lop.ent co.t •• 1 ,.t out tn .ubplragraph (J).

(g) (f' In the Iv.nt that th' contractor englg •• fn .Inlng, trlnlPortltton of nodul •• Ind productfon of proctl.ed .tt.ll, the ter. "contrlctor', gros. proce.ds" Ihlll .t.n th. gross r.v.nut. fro. th. 'Il. of the proc •••• d Detll., and Iny oth.r mont •• d ••• td to b. r.a.on.bly ,ttr1but.bl. to the OP,rltlon of lh. contrlct In .ccordlnc. ~tth the ftn.nctll rul •• , regulltionl and proctdur •• of th. Authority.

(f1) In III CI ••• other thin tho ••• p.clft.d fn ,ubp.ragraph. (,) (1) and en).

(ltn the ttr. "contrlctor's groll procttd." .h.ll .. an the orosi rtv.nu •• fro. the s.l. of tht •• ml-proc.ssed •• t.l, fro. the nodult' ,.tr.cttd fro~ th. contract ar.l, Ind any oth.r aont •• d •••• d r •• sonlbly attrlbutabl. to tht op.r.tton of the contract fn .ccord.nce with the 'fnln;,.l rult., r'gulilton, Ind proc.d~rt. of the Authority.


r

TEXT OF L.78

~O.tD .poci.!1o&l.l7 n1&tecl to ~II openUOD of tile OClla-ct, aDd _ net op."a,1r.: 10 .... ~~Cl4 t~ :w U;. .... ~ ;;. .;.a P.e0itled till.. Il.~ opon'CiDa 10uol :1 1M ':U:1~ t~tZL.-Q hit tuG OQD'h.:u-:1". JMn aGe,. la i:bo lad tvo Jean ot tho ~cnt:nc, WID thOJ CJq ~. ~az=tci ':&~ '0 tAt M ~"tdiDIlMn.

(1) Ia. ~ rlet dIa,,, 1:. ... ,)n~ao'O: ~o ill alD1Da, UiuponaUcm ~t DodllloJl, W ~1lO'~OQ ot pI';Gul.ed 1M ''' .. !=00 ••• e4 .. ta1t, ~. "D "d..,.l-::-.n~ ~:lIC' ot til. cd..D1na .K1:'" aa.1l MIlD til. pant Oil of i:bt oaat;:n.otc'. "ntlopman, co.t. W1:h 11 d1n~t17 nlate" to \l:e .tD1Da ot tbe n'~Q' of tb. OOQUaot U' •• i.~ :or.tomit7 \d.tb aaenll, Hoopi.eel uocamUac t=iaolplOl, _ tba f1aaD~W :\ll .. , nculAUou' _ poctd"" .. of tis. 4latlloni;J, Jao1u41ac, Ints .u •• aiPl1caUOIl t •• , amual tbeel tt., d, tIbu. appUoabl., COIte ot pntpeotLnQ a:i .xp1o:aUcm ot taw contact ana, am a petlOD of n.unb 1M dcwtlopunt ::.i ••

(II) lte 'en IInwm GIl lilYutDat- lA lIfT &GcoUZltU14: ,.-, aball IIiMA -.11. =Uo ot .~t;d."'tUl. M' ~.tc1s tD 1:b&\ 11U '0 i:bt "nGloplllA' ooa" of the ~ .. oto:. • antlopMA' oOla of Ulo atmac sooto: tOI: tbe ~ .. of tb1a I~~ u.u ~u4e GlIlGdltvzu aD DMI 0: nplao...n tq\&lJIItA' lA \be ~ .eo\o: lu. b =i.PAa1 00.\ ot i:IM oquipMDt I:tplac04.

(a) 1Il~. nc' _, 1:be oaat:nctoc ~ .... tD w.iDirC ~.

(1) tbo ten ·a*llNta~ _, FOG""- a1:aaU .. Ill • *1. of .. GQQi:nG\o~·. a' poooec1.;

(U) tbt tua'··OODtno_" a' prooood,· abAU '- .. detiu4 ill ~(th .

(111) tile 'en ·OCDtzaot=', 4:"1' Foo.eel ... ·.ball ... fib. pot, nwcue. hoa \be tal. of tba noaultl, u4 IDJ' obI: .my d.....s to be

(ly)

~ ... ana~ ati:ri.lNtalll. to ua. o~nt1OA ot the OClatnot m aooOl'daao. vttb tb. t1DaDo1a1 M." I:taQl&Uaaa UId ,"oe4m:e. ot * AIlflboni;Ji

i:be \tza ·ocaV&oto:', dcrr.10J,allt ocete· sWl UID aU GlIDU""" •• iDOUZftCl pric '0 tbe oa.uo ... ' of oomunial pnduUca &I In "~Jb (h) (1), &All aU eqCl41~ UO\IIftd .. ~, to tbo CCImClO ... ' 'Ol ~1a1 FOIIagt1oa, &I tD s~ (b) (11), W10h 1ft dJ,.not17 .. 1 .. 14 \0 tile .uwac 01 i:Ge h.GIROII of tis. oon1Z'aot ge •• b oODtonlt7 vital aa~ noOGAi- GOClWIlUDI pftACIlple'i

(1') tba tfDl "caatzGo'oc'l optftt1a4 001"· Iball _aD i:bt OODvaG'." opentilla 001" AI III .ubpa&'~pb (1:), VSUch 01:. ","oU, 1:11.i:t4 to the IU..aJ.Aa of b ,u~., ot tile oOilUad Uta lA oCGtomli;J vith JClc:aUr "eoQGlliIe4 ACooUllUaG p1ll01pl ...

(vi,) w =eaa "ntum CIa lAYe.tuD, iD ~ aooounUI'IJ fOg'I .ball IU_ ~ho mUo ot • CODa:a.ot=', _, pocoe4, lA _, ,.AI: to taw o==Cltcn:'. cI,".loplClt 001". COfttbCto:', 4 .. 1101*11'" oce" tOI: taw pm:po •• ot tbl. II1bp~b 1b&U lnolwl. e::pc41u08 OIl 11ft' 0: np1ccltlOll' equ1p:allt 11 •• tM =~ oo.t ot tho oquipnt "1Ilaoe4.

(0) 'ih. co.ta "tOfted to 111 ~phl (b), (~), (1) ID4 (Il), III ~'lI'o'C ~! :.z:~.t'.at pU.1 bJ' tbe oonuac1:U thcll ba aU"".cl to tbo ment ~hat, 1Il dl :ho :U:uall~OOI, t;ho .;!.utbod~ appftWCI. !l\1nUM\ to An1011 4, pananpb 1, tbo ::.la-oClu.ir. I'&t10 ad i:bo .:at" of lAto1:OIt All I'lu.abl., havtns I:saari to ox1atln,t -:~1&l. pnct1c ••

t'l lit ~OG" :.t-=.; ~ iD tbU ~APb .Ull. QO' be J.nlnpnkd u iDalu4ba ~" of OCA:pGn" la~OGCI tuo. 0: ttaUu ·o~. 1"114 W atilt,. bs 1:"1'fC~ ~t the oro=t101lI ~t t.,bo CI.mr..Ot ••

1. (a) l!lo \OEQ "It1:OOHa~ aotcla .. , "t.cto1 tOt lA ~opba , o\Ad 6, .h:lll IIOCA the aatall lA th.J =c'; ~10 t:: ~ ",\loh tt-q &.."'0 CUlt'*"J.l1 tl'~Ocl ~ b\ftT.AUonAl tf=al ~:.ta. r= t:l1:a ~" tt.t .1Il~had~· IMll .pac1!';", J.A tOe tir.l:lUlial nlu. COauL1UCM en4 FOOHUHII, tM nltvClDt 1Iltlmai.10N1l tu-:rJ..a.c.l C&d:ot •• £'.'1' tb. IIIOtcWi \/blah an IlO~ ,mdd ~ .w:h UIoI'I:etl, ~ "lo1'D "'l'~~oa:l.tl uo1:all" st.all QIIW\ t:1o a~tAla III t:Io CICI\ bNlLa t~ lAWlab ·~bo1 03:0 cn:.atoauU .. tnc~gci in ~OI'l'o.tn~U1'O a:ce'I·l~ Ua.a:D",:Uon ••

(11) I:a the oyent iihU tho "'tIl.:1\;, OQDAO\ o\h.tW.a. hton1M '1\0 q\W\U~' ~-;. ~.o IIrcoGataOtl IIObl. ~~U* fI:~ t:uI Iloclulo. e:ctnohcl ~a "d\O OCla_ot o=a ":2I::ft'ocl to 1n :m'A:=a"ba ~ (:,) am , (1:). ~ qUolDUt::! ~hal1 1M Il.~oc: on tPel i:~i~ ~t t:~o u.Ql contomt ot tIoa noau.l.oa exb:u,Q<; fl:ca the COQt".ot ~Il, 'l':couiD.; l'tcOV~ oCtlc1enoJ ~ QthoJ: l'olOV&At taotcu:a lA aoCGl'lcac. uUh taw Z'Ill'" n,:ul.ctlCIM UIIl pl'OOt4~D ot Ulo 4I1\ho1:1~, AM ill ooato_tv uUb .,-mon.Ur ::~~cvuzccl ACOOUllUnc ",lno1plol.

PROPOSED AMENDMENTS L.78 AS IT WOULD READ

WITH US AMENDMENTS (h) Tho Cerll "contractor'. d.v.lop.ent COIU" .h.H ... ,,:

(t) III .xpenditur •• Incurr.d prior to the Co~'nC ••• nt of commerci.l production which Ir. dlr.ctl~ r.l't,d to the d.velop.,nt 0' the productive CIPlctt, of th, Conlr.ct .r .. Ind Ch. Icclvitl •• r.l.c.d th.r.to 'or op.ratlon. und.r the contract In III cl.e. oth.r thin thlt Ip.clfle4 in lubplr.gr.ph (n) In con'ormlt, with g,n.r.ll, r,cogntled accounting prlnclpl •• , Including, tnter .It., COlt. 0' ..chln.r" equlp •• nt, .htp. , proc ••• tng pl.nt, construction, building., l~nd, rOld., prolPectlng Ind eaploru'lon 0' ,h, coner.ct .r •• , r •••• rch Ind d.velop~.nt, tnt.re.t, requlrtd l., •• " ltc'Rc", f.e.; Ind

(tt) ,I.tllr •• p.ndlt~r •• to tho •• de,crlbed In 'I) .bov., Incurr.d lubl.qu.nt to the ca. .. nc ... nt of co. .. rcl.l production, n.c.I.,r, to c.rr, out the plan of work, ,.cept thol. chlrge.ble to oper.ting COltl.

CI) The proc •• ds fro. the di.po •• l of Clpltll 11 •• ts ,nd th ••• rket vllue 0' thOle c.pitll I.,.t. which .r. no long.r r.qulred for op.ratlons und.r th, contrlct Ind ~htch Ir. not lold .hall b. d.ducted fro. the con,rlctorl• dev.lop •• n, COlts durtng the r.l.vlnt .ccountlng ,.ar. Vh'n th.,. d.ductlon ••• c •• d the contractor'. dlv.lop .. nt COlt. the '&C.IS .hall be Idd.d to ChI contrlctorls gross proc •• dl.

(J) Th. contractor l• dev.lop •• nt COlt. r.f.rr.d to tn .ubparagraphl (h) ct, Ind Cn) (Iv) ,h.ll be r.cov.red tn 10 equal .RnftUll tn.'alt .. nt. fro. the date of co-8Iftc ... nt of c~rctaL production. Th. contrlctor's d.v.lop .. nt co.ts Incurr.d subl.qu.nt to the Co ... nc ••• nt of coa.ercill product ton, r.f.rr.d to In subplr.gr,phl (h) Cil' and (n) ,tv) IhalL be r.cov.r.d in 10 or f.w.r .qull annulL tnlcaLl •• nt. so al to .n.ur. th,'r co.,l.t. r.cov.r, b, the .nd of th. contr.ct.

CU Th. ttt. "contrlcto,', op.rattng co.u·· .hlll ... n aU e.p.ndtCur •• tnc~rrtd .ft.r the co ... nc.n.nt of ca.Dlrclll production In the opera,lon of the ~roducclv. c'Plcit~ of t~. contract .re •• nd the acttvltt •• r.l.t.d th.r.to, for op.rltlon. und,r th. contrlct, In confo,.lt, ~tth g.n.rlll1 r.coDntl.d .ccountlng princlpl.t, including, tnter ILia, Ch. ft •• d .nnu.l f •• or the productl~n chlrg., , whlch.v.r I. gr •• t.r, •• pendICur •• for Wig •• , ,.lari.l, .apl01" b.n.ftcI, •• tert,ll, •• tVtc •• , tr.n.portatton, proc ••• lng and .Irk'tlng COlt., tnt.r.lt, utlltti.l, pr ••• rvatton of the •• r'n. onvtron.ent, ov.rh •• d ,nd .d.tnllt,.ttv. co.tt .p.ctflelllr r.l,t.d to t~. op.ratton of the contrlct, Ind .n, n.t op.~.t'nl lo •••• clrrl.d forwlrd or b,ckwlrd ••• peclft.d bl~ow. N.t op.,atlng lo •••••• , b. carried forwlrd for two cons.cuttv. 1 •• r, •• cept In the La.c two 1"" of the contract when they .,, b. c.rrt.d b.ckw.rd to the two proceedtng 1"".'

(l) In the ev.nt thlt the contractor .• ng.~ •• tn .Inlng, trln.portatlon of nodul •• , Ind production of proc •••• d .nd ,'.1-proc •••• d •• tal., the t.r. "d.velopm.nt co.t. of the .tntng •• ctor· thall a •• n the port ton of the contr.ctor', d.v.lop •• nt co.t. whtc~ t. dtrectly r.llt.o to the .inlng of the re.ourc,. of the contract .r •• , , 'n confor.ttr with g.n.rall, r.cognla.d Iccounttng prlncipl.s, .nd the financl.l rul •• , regulatton. Ind proc.dure. of the Authority, Including, tnter all" Ippllcatlon f •• , annuaL "x.d f •• , .nd, wh.r. appllcabl., cosc. of pro.p,cting Ind •• ploration of the contrlct Ir •• , Ind. port ton of r •••• rch and d.velop •• nt COtt ••

C.) ... Th. t.r. "return on 'nvlat.,nt" In In, lecountlng ,ur, shill ... n the rltto of .ctributAbl. n.t proc •• ds tn thlc , •• r to the developaent COlts of the .Ining ,.ctor. Th. dev.lopment cost. of the .tntng ,.ctor for the purpo •• of thts .ubpar.grlph .h.ll Includ. •• p,ndttur •• on ne~ or r.pl.c ... nC equlp •• nC In the .Inlng .ecCor L ••• the origln.l co.t 01 Chi 'Quip.,nt r,pllc.d.

(n) In the .v.nt ch.t chI conerlccor ,nglg'l In alntng only:

(I) the t.t. "Ittrlbutabl. nee p~oc •• d.· .~.ll .. an the whol. of the contriccor'. net proc •• 4., , University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

TEXT OF L.78

o. lL' _ iDto=&tic;aal taIdDal .ut..,., JZOYU.I A ftpfttcmtr:lUvo pdc1fta :ocI:aD1ca t= p:OG •• ~ocJ t.tab, ltDC1ul .. aDd ._~ ... td IIIOtole tl:oaa tllO nodulo., tho Ayt~ ... pdo. 01\ IUOh a aazto, CIl1Al1 be WltIl. IA aU othel: GUO" the .wtbadtr 1Ib&11. aft. cCDSu1till; tbo CCIltnat=, 4t~ A fm ~lco ro~ ~ •• ..14 ,rocIucta in &~c~ce wUh ~'Upil ,.

9. (A) W. COlta, n::poD11t=n,. 1=oootd .. _ 1:neau.e. aad a!1 doh.naUou ~f ~lc. 00Dd .,ala nfe=1d to in t.h1a anlol •• balll: ••• ~nu1' of ~'I aazlt.t O~ -.='1.1 lncth tnMGOUona. 111 tho Gbteoc. thenot, th.,. Iballbe lIota.mn.1I lIr thl Atltborit7, an,1' oOlSllllUnr \bo contnot=, .. thCNCh thq W~I til, ~esult of tl'" :taJ:!:" ft Am', lcnatb tzMaaoUoaa ta::iISa into GOOOUft' ~o1eftll' tnawaoUou iD othu aazl:otl.

(b) 111 oft. to enaun taf=oemat ,C and Ooapllallol ,dth thl (lZO'Iulcn.e ot tbl. ~ph. tile At&tbari. V IhDll 11. cu!dtd r. tbo !ll'malpl. a40Jttll tft, ad tho lDt ... t&UOIl ely. to, .n'. 1~--tb tnalaotlona br the 11IS1ttd BaUon. C~~ 'Jl to's, ~oaoa1o "D! Sooi.a1 COUISoU on l~t1ItaUOftIL1 &,tftpria •• , tile .~ CI'CNP ot ::xpcta Oft Tax ·~t1o~ bowoen Joyelop1zlc Iftd lIn.loped CCNIlt'ri •• aM :)tht~ lDtlmAUcma1 ol":olS1:at1aaa, and ahAll Adopt 1:u1o. aad l'o4UlatiCftl epooU'yiDa unUcm:a Ind bt.maUcnal17 ~otptGblo acoounUna 1:u1111 aad ~o04uz,., _ the aeana ot 1010oU= ~ t!le oon=aotcm :t ctn1l1od Ln'.adent acaCllntMt. acotptAbb to tho l.I1t:1odtr tot: tbI ,,~ ~t _1t1."\1 in ooapUuloo vUb b .aid zul.a ut4 "~u.one.

10. lbe CODtzaot= abIll IlQl:o r:ra1l&b10 1:0 "" ~aGUDt&Dt., lD acccricno. 111 th the t1uano1a11:u1u, ~Uou urJ ~lCIuno of ~. Allth=lV, RO.'l til:anc1&l ~AtG u uo ~ to btomi.."lo oqUulo. v1~ tbla uUolo.

11. All c".t., o::pcnUt=co, iJI'OOltcSo and l'evlnuO.,.=d all ,ne •• aDd ":1~'1I I'lfo=ed ~o lD thl. :ar.1:b, zbal1 bt "'tcain" 1A aoood_co v1~ ~aell1 HoOCfti,Ctd a:oCNllUDa lIdnoipla. mS the tllwloJAl 1:u1 .. , nc;u1atlClftl aDd ~oodur=of c;\. Atltb=~l ••

12. rho pt.)"DOnt.,,~ :bo .l\:'hcn~ w.!o~ iU'aan~hI , ".l14 6 _hall be :aC:o in !I"toll' \l8&blo Ct.I1TQftol •• 01' C1:r.'tncl.1 W10h =0 !:'oo:: a"a.:.lai»b am .tf.otbolT :lla~l. :n ~bo =aj:JZ' tOl'o.!.r.t :J:lCoha;... .. :!a.ri:o~., 1)1' .. , -:l~o :-:n-:n."..,r'. o,'!.;n, 111 ~h: otquhal.nll ot proofS .. 11 :;zotall &t aarkOt ,,&1"0. Th::uIca' value .h&11 iJ .. ~"'.==I:04 lIS aoOGriaaco wL tb ~pl: , (b). Tho fn. ".:I 11 ... b1o O'.anondoc L"Sl 'NZ'I'ODol •• vbl.cb u. fruIT ""IU.~lo au:! otl.ot1'N~ \la."10 1n 'hol caj.)~ l:=.:~..u tXct'.4I".p DAri:Dt. alall be lioClnoC Ltt ~ho ruloD, ~c:a4Uoni ~, i~Ot:SUZ'O. of ~I~ ::J:hc:'1~r 1IS accol"llui:o ~th prc"t..1~~ iD'o1'U.timal aonotU7 pnoUce.

:,. .al f1lwsd&l o~l1fa'=lona ot tbo oon,:n~hr ,,, thl 1.Il'~d~, U woU .. ,:: b.ll too., co.," oxpoadltva., pzocooc1.l ani! I"JYOIf.lO' ro!oftQ<1 to in c;.i. artiolo ,,!'.all bo ~,1ueto)o1 ." .~.'lnr thea lIS cor"'an' 'oml rob:l" '0 a i:uo 7"U,

:.4. 'fbD Lu'~riV aq, 'aJd.na lISto &:cour.' !q "Oo="n4 .. t1~n. ot tho !J~n=10 :llUUl1nl: Coa:1.s10D .. ,110 Ltael oD4 fooh:d.oa1 0':=1111'11, a5". ft~' m1 nSUl&Uona ~t-4-: ~"1:So t,~ 1:lcontho., on a unUoza 4a4 n,a-l11Ioria1lSa'oJ7 buU, to . ~.:n:~to~. ~o tu..-tbo&" tbo o'i)JClotho. eot out 1n ~ph 1.

15. !IS ~M .v~n' of • 41.pu'~'bo'woon 'be A"ttunty and .. =Obt;actO&" ~&" tho i::~~~tatlcn '2~ appUoaUon of tho CINJ1cial "1'0' ,t .. contnot, .1tbo~ SIU't7 aq' 'I.i:~' 'bo cl1sINt. to b1n41~ c':=-l'olal u;:-UnUon, un1os. \)otb paz·U .. aaroct, to s.:tU. tho lillpat. br 0'1101' ao:aa, lIS accordaaco wLth IU'Uolo 188, pan;n;h 2, at iv, XI ot '1\11 Conyontion.


uu the Urll "contr.cto,.', n.t pl"oc .. d,·· .haU'b ••• d,'in.d in lubpar.gl"aph (f);

(tit) the t.r" "contl"lctor'l groll procted.·· .".ll 1I~.n the grosl rev.nu'l fro. th, •• l. of the nodul.s, and .ny oth.r .ont., d •••• d to b. r •• lon.bly .tt,.tbutable Co the op.r.tlon of the contr.ct In .ccord.nc. vith the 'in.ncl., rul." r.gul.tlons Ind proc.dur •• of the Authority;

(tv) the t .... "contr.cto,.·, d.v.lop •• nt cott," ,h.ll ••• n ILL '.p.ndltur •• Incurr.d prtor to ch. co ... nc ... nt of co ... rct.l production •• In ,ubp.r.gr.ph Ch) (I), and .ll •• p.ndlture. Incurr.d .ubl.qu.nt to the co ... ~c ••• nt of co .... rct.l production, .1 In lubp.r.graph ChI (II), vhlch .r. dl,..ctly r.l.t.d to the .tntng of the r,.ourc •• of the contract ar,., In con'or.ltr vlth g.n.r.lly r.cognlz.d .ccounttng prtnclpl •• ;

(v) the ttr. "contnctor'l optrnlng cosU" ,h.ll ••• n the contr.ctor·, op.r.tlng CO.tl .1 tn Ju~.r.gr.ph (k), which .r. dlr.ctly rll.tld to the .Intng of tht r.lourc •• of the eontr.ct Ir •• In confor.lty vlth g.n.r,lly r.cogntz.d .ccountlng prlnelpl .. ;

(vi) tht t.r. "r.turn on Inv •• t •• nt in .ny .ccountlng 1.,rN .n.ll .e.n the r.tto of the contr.ctor'. ntt proc •• ds In that re.r to tht contr.ctor·l.d.vtlop~tnt COlt.. Contr,ctor'. dtvtloP~tnt rost' for the purpo •• of this .ubp.r.graph .h.ll tncludt txpendlturt. on n.v or repl.c ... nt tqulp.tnt l ••• the orlgtn.l COlt of the tquip~.nt r.plac.d.

(0) Th. cOlti r.f.rr.d to In lubp,r,gr.phl Ch)r (k)r (1) .nd (n), In r,.ptct af Int.r.lt p.ld by the contractor .h.ll be allowed to the •• t.nt th.t, In .ll Ch, clrcu •• t.nc •• , the Au~horlty .pprove" pur.u.nt to .rttcl. ~, plr'gr.ph " the dtbt-equitr r.tlo .nd tht r.te. of tnt.r •• t •• r".on.bl., hiving r.g.rd to •• t.tlng co.~.rcl.l prlctlc ••

(~) Th. cOltl r,'.rred to In thll p.r.grlph sh.ll not be Inttrpreted •• including pI,.entl of corporat, Inco~. t •••• or '1~llar ch.rg •• ltvl.d by St.t., in r •• plct of thh. optrltton, of the contractor.

7. (a) Th. ttr. "proc" .. d MUll", re'.rred to In parlgr.phl Sand 6, ,h.ll ... n the .tt.ls In the .ost b'ltc fors tn which the, .re custoeartl, tr.d.d on tnt.rn.tton.l t.r.tn.l a.rk.t.. 'or thl, purpo •• , tht Authorlt, ,h.ll .p.ctfy, in the fln.ncl.l rul •• , r.gul.ttons .nd procldur •• , the r.lev.nt Internatlon.l t.r~ln.l ~ark't. .or the ~tlll ~hlch Ir. not tr.d.d on .uch ~arktu, the t.rll .. proc .... d •• ul," .hlll ... n the .. tals in the so.t b •• tc 'or. tn vhich th.y .r. cu.to.artlr trldtd in r.pr.l.nt.ttv. Ir.'. l.ngth trans.ctlonl.

(b) In the .v.nt th.t the Authority cln~ot oth.rwl •• dtt,r.ln. the qu.ntity 0' the proc •••• d •• t.l. productd fro. the nodul.. • •• trect.d fro. the contr.ct Irt. ref.rr.d to In par'prlPhl , (b) .nd 6 (b), the quantity .h.ll b. dtt.r.tn,d on the b •••• of the a.tll cont.nt of the nodult ••• tr'ct.d fro. the contr.ct ar,., proc ••• lng r.cover, .fftcllncy .nd oth.r rlltv.nt f.etorl In .ccord,nc. with the rul •• , r.gul.tton. Ind proc.dur •• of the Authority, .nd In confor.lty with g.n.r.lly r.cogniz.d Iccountlng princlpl, ••

8. If an Int.rn.tlonal t,r.ln'l •• rk.t provld ••• rtPr ••• nt.tlv. pricing etch.nt •• for proc •••• d •• C.l., nodult •• "d ••• I-proe •••• d att.l. fro. the nodul •• , the .v.r.gt ortct on luch ••• rk.t ,h.ll be u •• d. In III oth.r c •••• , th. Authority .h.ll, .ft.r canlultlng the contr.cto,., det.,.tn •• f.tr pric. for ·h ••• td product' in .ccord.nct vtth p.rlgreph 9.


~_~r'''' ~ ... u.;: ... -..... ~.-.-... -==------

TEXT OF L.78 PROPOSED AMENDMENTS L.78 AS IT WOULD READ WITH US AMENDMENTS

9. CI) ALL co.t., •• p.ndttur.l, proc •• dl .nd r'~'~'1 ~ .,' d.t.ralnlttonl or prt,. and vaLue r.f.rr.d to In thll article Ihlll be the r.luLt of fr ••• Irk.t or ar.'1 l.ngth tranllctlonl. In lhl Ib.enc. th.r.of, Ch., IhlLL b. dlt.t.lnld by thl Authority, Ift.r con.~ll'n~ the contractor, a. though th.y w.r. lh. r.lult of ft •• "rt.l or ar.'s l.ngth trlnsacttonl CI.tni tnto Iccount r.L.vlnt trln.lctton. tn olh" .. rk.t ••

Cb) In ord.r to .nlur •• nforc •• tnt of Ind compLtlnc. with the provt.ton. of thi. plragr.ph, the Authortt1 .h.ll b. guldld b, thl prlncipl •• adopt.d for, Ind the Int.r~r.t.Cton glv.n Co, Ir.'1 ~.ngth trln.,ctlon. b, Ch. Unlt.d Nltlon. Group 10r the Icono.te .nd ~oclll Council on "ultlnlttonal Ent.rpri •• s, th, 'd Hoc Group o'.(xPtr~1 on Tlx Tt.,tlll bltwlen Otvlloplni .nd Otv.loPidiZOuntrtl. and ot~dr tntttnitional orglnlztttonl, Ind sh.ll Idoge rul.s .nd r.gul.elon. Ip.clf,Ina unlfor. In6.t~t.rn.ttonlll, .cclptabl •• ccounting rut., and proc.dures, and the .. ans of IIl.etfon b, the contflClor of clrtlfl.d Indlplndent .ccount.ntl acc.ptable to th. Authorltr for the purpole of .udltlng tn conplt.nc. wtth the I.td rul.s ~nd "'iU lit I ani.

10. Th. coneractor sh.ll •• kl .vlll.bl. Co th' .ccount.nts, In Iccordance with the fln.ncl.l rul •• , rlgul.ttons .nd proc.durlS of the Authority, luch fln.ncl.l d.ta IS .r. rlqulrld to d.tlrmin. caepl'.nc. with tbt •• rctelt.

11. All COtts, t.~.ndteur •• , ~r~ce'QI .nd rtv.nues, .nd III prlCts .nd valu •• rtf.rr.d t~ In tht •• rtl:le, .hIL~ b. d.t.r.ln.~ tn .ccord.nCI with gen.rlll, r.eogn'zed .ccounti~~ prtnclpl ••• nd the fln.nctal rult.,

1Z. fht p.y •• ntl to the Auehorlty under p.r.gr.phs 5 .nd 6 shilL be .,de In fr.tly u.lble currenele. or curr.ncl.1 Nhlcb .r. frt.lt ,v"llbl •• nd Ifftcelv.l, uSlbl. on the .aJor for.lgn cach.ng. ~Irk.tl, or It the contr.etor's option, tn t,e .qulvaltnt. of proc •• Std .It.l. It .. rktC v.Lu.. Th ••• r.et vllue Ihlll be dlter.lntd In leeord,nee wtt~ plragr'ph 5 (b). fh. fft.ly u •• bl. currtnclts tnd curr.ncl.1 which .re fr •• ly .vall.bl. and effletivilt u'lbLt In the alJor far •• gn eleh.ngt •• rket. shall be d.fln.d tn the rule., r.gullelons .nd procedure. 0' Cht Authorlt, In .ccord.nc. wtth pr.vIIllng tnt.rn.tlon.l .on.t.ry prlctlce.

13. All fln.ncl.l obllgaelons of che conCr.etor taCh. Au~hortty, .s wtll a. III his f •• " COlt., 'Ip.ndltur •• , proc •• d •• nd r.v.nu.s r.f.rred to In this .rttctt .h.ll bt .dJulted by •• pr •• sIng tht. tn cons~.nt Ctr •• rel.ttv. to I b.,t ,e.r. #

14. Thl Authority .11, tlktni Into account Iny r'CO •• lnda,lonl of tht Econo.tc Pl.nnlnt Ca..I •• lon Ind tht L.g.l and T.chnlc.l Co •• il.lon, Idopt rul •• Ind r.gulatlons Chtt provld. for inc.ntlvt., on • unltor~ Ind non-dllcrlmln.tory bl.tl, to contr.ctor. to furth.r the Objectives .et out tn plrlgr.ph 1.

'5. In the eVlnt of I dtlput. b.ew.en Che Authority .nd • contr.ctor ovtr the Int.rpr.t.tton or Ippllc.tion of the flnlnet.l t.re. of I contr.ct, tlth.r p.rty ." .ubalt tht dlsputt to bln~lng co .. "elal .rbltr.tlon, unlil' both pirtle • • gt •• to •• ttl. the dt.putt by othlr ... n., In Iccord.ne. wtth Ittlcl. ,ae, Pltegraph Z, of ',rt II of thl. Conv.ntion.


TEXT OF L.78

trt@ijfiii." 1. ftIo opontor .b&U "'II.:lIt.r la &oo('lduco ~~b tl12 ~10l aDd %"IlIllaUonl

a.r.~ C~~O to=- am ooD41Uoll' "f ~bJ plAD ot ,,'O:k ~= tho :.u' .. ..,1'1V a' t!De lDtoZ"'7&lI !·"tc=nri bT 'bO :.Inl:orlt7 all l1a" Wich UIJ ~,,-:h =~O"U7 ana. l"Oloy",t to tI:o IlChotl'lO iDJ1oDon'~t1oD of tho pOWI'l &UIl lunation. at 'M pz'1DcJ.,al oram- ot -:1.c: kI:b:)rlty 1D l'Olpoct of '3 &1:'Oa ° 'nm)'! :q tho: plan ,t wrk.

2. !:rulfono4 el.t. 1ft :'Oopoo' 0:." 'bl QI'O& o'''O)l'Od '" tho plan :Jt wzk, 1.~! to 110 pzopr1.t~ car .,nl¥ :'11 UlCK'. "1' tbo ,..arpa.ca lot t:»nh in '~.h ar.l.:lo. Dat. vh:.ot uo ao~'Ul7' tor tho ~JJaaUCD ot ~o ... l'OplaUOI1l cl)ncomlD, ~toctU~ ot '1:0 'Urine ,!n1l'Oft:O:I' an6. satoty ,~hol' '!wi equ1paent Jol1an dat. ,b&U not 110 ~::aD~ '0 "0 pzopl'S.otarb

,. Dan traMfoftOi!. to tt'.o ':'uchol'i'Y 'q ~'!IOocon, "t:4'U::azat. '"r eOD'not. tor Jxpbratbn .. :xl ospl"l .... UoD .... '14~n'nc"n1ol.n04 to 110 P'l'O,rlot~ :Ii-A.!! not bel Ulol".4 bf tho ~t~ri'" to eM L,\f~rprUO '1' ,q;;.!:!o tho ;.uthoriV, tut ~M 4a'. lin "ho "00",,', .14:':1 cq 110 ,U,.,lc,Qfl t. tho £nt.:rpriIO. Such IS .. ,. ":I'CLiUternd by ,,",Gb POl'tOnI 1::1 tho tn,,,I'PI'1 .. 'hill c~, j). ·~1tol,ao<! ~ tho ~'U1'tll'1I0 u ,tit :'lIthol'1'y 01' ou:utl" ,t " . .0 ':'u~~l'!.'7. ':i~ :'O'iOr .. lbU1~;'o. aot l:r'h 1n'ar:lolo 168, ,.n.cnpb Z, It PuC ).l 'Jt t:h1, C4n.,c::llon fZO '/tuallT ";l)U:abl. to 'he .,att or 1bo ED'or,:lrito.

n .. GolDlno'!'l' ,!:all dl'Uf U, #ra.oUoa! pr.~ •• to~ 'M ;~ ~t ,onoMol :t 1:1:0 .::.a'hol'1tJ &11t 1l .. ,,,ob,1n, Stat"., 1ncl~1ng ,:~ ,'.r.lc1~U=D of ."ch :::rs::,.r.t11D .. 11 Ilc'1Yi.'1", 0."1 YO f 0: '=1 ~b: ~.,r.cn.t'" 1n l.",c~~'.:Ioo with U'I101o 144. ;~~~9h 2, -:t Pa=c :t -:t tilL. C:r.',',JntloD.

PROPOS~D AMENDMENTS L.78 AS IT WOULD READ WITH US AMENDMENTS

Arthll 14 Tran.f.r of altl

1. Th, op.rltor .hlll trlnsf.r In accord.nc, with thl rul ••• nd r'gulattonl ~nd the t.r ••• nd conditions of the pl.n of work to the Authorit, It tt •• tnt.rvll. d.t.r.lntd b, the Aothorlt, .ll d.t. vhtch .r. both n.c •••• r' .nd r.l.v.nt to the .ff.cttv. i~le •• nt.tion of the pow.rs and function. of th' princlp.l org.n. of lh. Authorlt, In r •• p.ct of tn. Ir.1 cov.rld b, the plan of work.

2. Trl~f.rr,d data tn r"p.ct of the .rl. cov.r.d b, the pl.n of work, d •••• d to b. propr •• t.ry .. , onl, b. u •• d for the purpos, ••• t forth In tht •• rttel.. Dltl which Ir. n.~ •••• r, for the pro.ulvltlon of tul., ~nd rlgulatlon. conc.rnlng prottctlon of th ... rln. .nvlroneent and .af.t, oth.r th.n .quID.tnt dlsl9R dltl Ihlll not b. d .... d to b. proari.tlr,.

1. Oltl tr.nsf.rr.d to th. Authorlt, by pr'sp.ctor., 'DPllc.ntl for contrlct. for '.plorltion Ind •• ploltltlon, .nd contractor. de.~.d to b. proprl.t.r, .h.ll not b. dtscloled b, the Authority to the Ent.rprlse I

or out.ldl lh. Au~horlt" but the dJII on the r ••• rvld slt~1 •• , b. dlsclo •• d to lh, Entlrprl... Such d.tl tr.nlflrr.d b, such p.r,onl to the Ent.rprt ••• h.ll not b. dt.clo •• d b, th, Inttrpr'" to the Authority or out.ld. of th' Authorlt,. Tht r •• pon.lbllitlel s.t forth In .rticl. "8, par.graph 2, of Plrt X, of thts Convlntlon .r. ,qUill, Ippllclbl. to the .t.ff of the Ent.rprl •••

Articl, 15 Trltntng pr'or .....

Th. contrlctor Ihlll drlw up prlctlc.l progrl-a., for the tratnln

:;r:::~·!.~:a!~:lAi!h:rtt!C:~:1:1::l::!::.:t:;I:h.i~:!~~!~~ t~. p.rtlc~p:!.on with Irtielt 144, par'graph Z, of Plrt I' o. thfs Conv.ntl~. ".ccord_nc.

Articl. 16 'xclu.lv. rtght to t.plor •• nd .xplolt

Th, Authorfty .h.ll, pur'uant to P, t II d pr •• crfbld by the Authorlt" .ccord the ~DI It'P :h. rut •• and r'V~l.tfon • •• plor •• nd •• plolt th' ., •• cov.r.d r or t • •• etullv. right to .p.clft.d c.t.gor, a •• tn.rall and Ih:rl th• Pl.n:, wor~ in r.lp.ct of I op.r.t •• in the I ... • r •• 'or • dlff.r.nt·~:~=·o: 1!,nOtOth.r entltr aann.r which .tght Int.r'.r. with the OPlr.tfo!. !f th: ::;~!:o!n I ~;; OP.r.tor hlhl,ll h'VI •• curft, 0' t.nur. In ,(cord_nc. with aritel.

, p.r'grap , of 'art II of thl. Conv.ntlon.


.... ~.-

.;r!1clo 11 Rul;; •• "niSi',,;)' .. ,; 2r.l '';#yn'

1. Tho :.utborit7 .ball o4o,t GDJ unif.)mq e,,17 NlCI, ",JUUU~DI Md pr .. cc,:UI"Q' la aooOI"~"C:O tdtb ",'1010 1150, PAnc,-U"Ja 2(1)(11), and arltol~ 162, ~pb 2\n}{U,) )t J'uoC XI ~t thu C-lD1'OftUOft, lor ,be 1ap1.a:lcftta1hll :at it. f'.mo,loftl u pn.CS'1:'t:l la fu1 D, lp~sr ,UI' on the C~llov1..~ Datton,

Ca) 1Ilc1n1"n:l\'O pnOOtunl nlaUnr to pz'upocu."C, cxplontion and ezpb1tat1on la the :.roe,

{b) OpaneloDI'

(1) ":0 cf &1'0&'

(u) ~t1Gn ot )PGntloftl,

(W) pertomAnol ~gu1ftDontl Lno~ Uaunneol purauant ." antolo 4. ~'(d).

eLY) catocr:rtol ,: "11:1\&1'00"

(.) 10mmoLaUon ot UOUI

(Yl) FOP'O" "~rt ••

(nJ.) ",:lGila1Oft ot latal

(.til) lMPQoUon us.l OIlpomllon 01 opont1clUIl

(tz) !JZ'O\'OnUoD 01 iA,ortarons2 "Ui, ottael' ao:1YlU:a 111 thl ~o :r:Y1nraom,

(xi ':1V • .t.r ot ricbtl aDC! .,b~thDI bT a o')atnour,

(x!) ~co!UI'O' t:~ b'aut~ "t '00=100- to .lnolopiAJ It .. tel 1D .oco~co "UIa :zUolo UA of P:zt XI of t!:L:; CocmDtJ.oQ -. tw ~.u 4Jnot p:Uo,~tjQlIl

(n!) ::1n1na- o'w~a anI! ,rPtlCCl inobdir.c ~M'O rclatl~ tc 'ioI':!.U:ana.llata"" oon:el'T".i:1oD oC ~a ~'':O\a'Ceo.;:d ,;". ;'1'0 c., tbn o~ .:.2 . ..::1J:o .• I,.,~r:::l'nt.

{nUl ·~ot!.n1~l:an ot onccol'Olal po4uoUOfti

(::1.) CluaUl1saCi-:u .tmJarla t,1' &p;lUS&al'll

(S} tineacl&! aattort'

!~) olt~l!.lacn' Qt wf~1'Q &~ non-4.1loitgtn&t"l7 CODu'=a AIld. aoooUDtlnQ ftb., ~ .. ·.lQll CA lJo.a ~tl:04 ot a.lft::Uon ot .:ull1torll

eU) apportlonaont ot l'I'Ootodl Illopontlon.,

(1:.1) tho lDc.nt."'ol retsl'I'Ot b in arilc10 1)1

.:!) ""laa, rojJ\llAUcr.1 L"IcJ l'Z'OO~1:ft1 tl) ~ltDoa' 40cJ.alcn, ot 'be CoWlOU ":akoa 1a purauanco of &nlo101 151, 'U'qI"Apb <It u~ lS4, puac:raph aed), ot Put ~ ,C t~. C~nyo:sUoft.

Article 17 Pules, regulatIons and procedu:ea

1. The Authority shall adopt and uniformly apply to all operators rules, re9ul4tions and procedures in accordance wIth artIcle 160, paragra h 2ft) article 162, ar4 ra h 2(n; and article 165f par~arap ~ a) 0 Part XI o. t. s Convent ~r., tor the 1m2 emen~atlon cc Its functions aa prescribed in Part XI, /~ter al1a,7 on tte following mattersl

(a) administratl,oe procedcros relat~!!i to prospecting, exploration and exploitation ir. tte Areaw!

(i) decision-makin~ procecures ot the Commissions and SubcommIssIons excep' w ere othe~~Ise specIfIed,

(ii) terms and conditions ot emplOyment of the staff of the Authority,

(lii) procedures for diuposition of allegations made Eurduant to artIcle 168:

(b) operations

Subparagraphs (b)(i)-(bJ (xiii) and (c) (!)-(c) (111) remain as in L.7a.

LTxiv)qualification standards for applicar.ts17

()(',iU exclusive ricrhts to explore and exploit certain minerals at a partIcular sIte In cqnform~t* wl~h expiorat~on for other categories of minerals at t at site,

(xviii) contents of plans of work and terms of contr4cta •.

(c) financial matters,

(lv) financial terms of contracta,

IV) Enterprise financing includin~ default proce~ura9'

Cd) rulea, regulations and procedures to implement decisions of the Council taken in pursuance of articlal!~ 151, paragraph /47 ! L; 3nd 164, paragraph 2(d'L7 of Pa:t XI of this convention.

Add a new subparagraph (d bis)

(d bis) allocation of t~e fund3 o~ the Authority .u~ject to the provisions of article 173, paragraph 2.

L./~ AS IT WOULD READ WITH US AMENDMENTS

Article 1" Rules, regulatIons and procedures

1. The Authority ahal1 adopt and uniformly apply to all operators rules, re9ulationa and procedurea in accordance with article 160, paragraph 2Ct), article 162, paragraph 2(n', and article 165, paragraph 4(a) of Part Xl of this C~nvention, for the implementation of its functiona ae prescribed in Part XI. on the following matteraa

(a) adminiatrative procedurea relatin~ to prospecting, exploration and exploitation in the Areaa

(i' decision-making procedurea ot the Commiusions and Subcommi.sions except where otherwise specified;

(li) terma and cohdiction. ot e~ployment of the sta~f ot the Authority,

(iii) procedures for diapc.ition of allegations made pursuant to article 168,

Cbl operation.

(t) ,tl' of ar •• ;

(tt) duration of op.ratton.;

(ttt) p.rfor.,~. requirement. inclujtng a.sur.nct. pursuant to .rticl. 4, paragraph 6 (c~;

(iv) Clt.gort •• of r.sourc •• ;

(v) denunciltion of .rea.;

(vi) progr.ss rtport.;

(vii) submtsston of dlta,

(vitt) tnsp.ction .nd .up.rvt.ton of optrltton.;

(tx) pr.v.nt4on of tnt.rftrtnc. wtth oth.r Icttvitt •• tn the .artnt environ •• ntl

(x) trln.f.r of rights .nd obligattons by a contrlctor;

(xl) procedur.s fot trlnsf.r of t.chnology to dlv.loptng state. in accordanc. with .rttcl. 144 of Part Xl of tht. Convention and for their dtrect participationl

(xit, atnlng .tlndlrd. and pr.cttc •• Including tho •• r.llting to op.ratlonal saf.ty, cons.rvatlon of the r •• ourc •• and the prottctton of th •• artn. envtron .. ntl

(xttl) d.finition of coaatrctal productton; (xv) explorAtion for And exploitation of resources ot the

Area other than polymetallic nodule.,

(xvi) requirement. for joint venture. with the Enterprise for carrying out activities in the Area in reserved sites pursuant :0 article 9 of this Annex;

(xvii) exclu.ive rights to explore and exploit certaln minerals at a particular site in contormity with explora,tion for other categories of mineral. at that aite;

(xviii) contents of plan. of work and terms of contractS.


TEXT OF L.78

(el) c.tocon •• at "8OVI'0 ...

In oJotuaizll.Df ,be .'01lOl7' ot l'OlOunol 1D l'Olpoe' of WiDb • ptar. ~t' ~:-!C ~ be allPZ"'ftel, ,bit .,t,u.thoriv lball Ii" qb&l1. 1.,'0£ aU •• ~ tbe folloNlnJ Dtanotuoi'Uu,

(1) :0.0=0.' *ob ncpl.zO 'ho UIO "t d.a1l.U' IWWI, aot~, an!

(11) :OIOUZOOOI vb1eh can " to'lo!:lp04 .i.Cul'&ftO~u,~ "it~u' un;lue Lntol'to::enco boWeoD open.on 1D '110 Imo &1'0. 41Yeloplnf WtonD' "IOUZOU'.

lbtblnq 1D 'h1l IUbJllftlftllh cball ao'= tbet lou'hodtr boa (Zm.,u.", a c,ntrsct '01: aon tbaD ODO oa'o.:o17 of a1Donl 1D 'ho ADI U'O. '0 '110 aDG .ppUcan~.

(0) Iommol&UoD 01 an ...

!!to ollOfttol: ,ball haft ,. rip' at .. tlQO to l'Oaou:lOO wlthou' ponal':1 thl _10 01' ,an ,,1 bit 1'iltIt. la ,tID goa ~ ", • ,laD :It wolle.

(t) ho'ootiOD of 'ho DU'im O~IaOD' I

hlol .. I'Il'1la.10u lball 110 draw \Ill 1D orl.1: h 10CUl'O tttooUft pl'?toc~l\)n ct ,tID culAl olWf.ftlmODt trca boZafU1 .teootl "Uor.~ Z'uuUlq tr.l~ acUv1U.'" !.: tho :.zoo. 01: tzooa lb1pboud prooOII1D1111ao41a.tOl;( .buo a alDII I1t. ,C mnut.ls dodyo4 t~ ,bel alcI 11'" 'tJclna .In'o .000\1II' ,be oxton. '0 vh1cb noh hamt'Jl ottactl car dbootlr ftlUU trca e1'l111Zlr, ~, C!,HDf aDd. "xO.y.ti,D .. 'lUU ~. dllpo •• l, ISUI:IP1IIf u4 cJDO~ uto ,he au"iDo cm1l'OmGDt 4t .odimr.t, v,aa1:". -=r a'bel: olnuoDtI~

(J) Cocao~a1 rroduo'loD.

Coa:so"ial fl"4uotloD _hall bo dOaG~ to) "YO bopD U ID "101'10'''1: IIN.JaSO. 1r: act!dt,- of 8Il.ta1D,t1 1aqo-ICalO roOC'foL7' opentba. wbLob 710ld .. au!lJ.c1ont quanUt,- ~t catoriall .. to iIId.1oa'o olovJT tbat .b1 priaa.1pal 1'U'F~so 1s luJCscalo pzoduOUOD 1'&'1101' thul ~dUCUOD lAtold" tOI' J.nt~ZQ&t1on pthcdllr, UIal:f.lI )1' oqQ1paODt OZ' plaDt-to.'1q.


Cd Perforll.nee ,·equl,. •• enu:

'h. Authority s~.ll r.qulr. th.t durin; th •• xplor.tton st.ge, periodtc •• p.nd'~u,. •• ~ ••• de by the cp~rator vhlcn .r. rl.son.ble r.l.t,d to the 11zt 0' th. Ir •• ecv~rtd by th. ~lln of work .nd the •• pendlt.rs w~~ch would t ••• peeted 0' • bon. 'td, oper.tor who Intende~ to bring the '''f' Into eo~~,rcl •• prod~ctton wlthtn the tlmf-limltl .stlbtllh.d by th. Aut~orl!y. Such r'Q~lr.d •• pend'tures should not b. e.t.bll.h.d .t • ltVll which woul~ dllcour.;. pro,plctiv. oplr.tor.·vlth l ••• eo.cly t.ehnology th.~ i. prlv.lenCly tn u... The Authority .hlll .stlbllsh ••• ,I~n tl.e t"te,.y.l .ft.r the ,.pl~r.ttcn .t.;. t. co~pl.t.d ,t,d tht ,xploltatton It.ge begtn. to achi.v. co ••• rcl.l production. To d,t.relnt thll tntlrv.l, tht Authority should tlk. Into con.ld.r.tlon thlt construction of l.r;,-,cIll ~intng .nd processing Iystl •• c.nnot be fnftf.ted until ,ft.r the terstn.tton of the e.plor.tfon st'g •• nd the co ... nce~ent 0' thl .xplott.tton ,tlg.. Accordfngly, thl 'nttrv.l to brtng .n .re. fnto co .. ercl.l product fan Ihould t.k. tnto .ccount the tt.e nlc.ss.r, 10,. this construction ,'t.r the co~l.tfon 0' the .xplo,..t;on .t.g •• nd rl •• on.ble .llow.ne. Ihould be •• d,"or un.votd.bl. cel.y. In the construction Ichedul.. One. eo~m.r:I.l production II .chl.ved In the e.plolt.tton st'9t, the Authority th.ll vlthln rl.son.~l. ll.lt. .nd t.kfng Into conlldlractO" .~l r.l.vant f.etorl r.qulre the op.rator to .atnt.fn coa~.rclal production throughout the p.rtod 0' th. ~l.n of work.

(d) C.t.gorl •• of r.lourc.,:

In det.rll'nfng th. cattgory of r •• ouree. fn r •• p.ct of whtch • pl.n of vork •• , b •• oproYld, the Authortt, Ih.ll glv, e~h"'1 tnt.r !!!!. to the followings --

(I) '.Iourcel which r,qulre thl ut. of It.'lar .tnlng •• thod.; and

(II) r •• ouree. wh'ch c.n b. d.v.lop.d ,'.ult.n.oully w'thout undu. fnt.rference betw'ln op.r.tor. In th ••• ~ •• ". d,v.loDIng d"t.rent re.ourell.

Nothing fn tht, .ubp.ragr.ph .h.ll det.r the Authorlt, fro. gr.ntlng a contr.ct for mort th.n one clt.gor, of .tn.r.l In the 11._ .r •• to the ••••• pplfc.nt.

Ce) R.nuncfatlon of .rl •• r

The op.r.tor .h.ll hav. thl rfght It .n, tl.e to r.nounc. without penalt, the whole or p.rt of hfl right' fn th • • r •• cov.rtd b, a plln of work.

(f) Prot.ctlon 0' the •• rln •• ny'ron •• ntl

Rule. Ind rlgulatlon. Ihlll bt drl.,n up 'n order to 'Icur • • ff.ctlye prot.etlon of the •• rln •• nvlron •• nt 'ro~ h.r.'ul .'flet, dtr.ctly r.lultlng froa Ictlvltt •• In the Ar •• or fro. ,hipbo.rd proc ••• lng f~ •• dt.tll, .bov ••• tnt .ft. 0' .fnl,..l. dlrlv.d fra. th. Mini lite, t.klng Into .ccount th ••• :.nt to "hleh .ueh ~.r.ful e".ctl MI, dlrletl, ,.,ult 'ro~ drilling, drldglng, eortng .nd .xelvltlon II w.ll I. dispos.L, du.plng .Ad dlsch.rg, tnto the .,rln, .nvfron.ent of •• dlm.nt, W.lt., or oth.r .'flutnt ••

Cg) Co-mere •• l production:

CO.II.ret.l production .h.ll be dtl~.d to h.v. b.gun If .n op.r.to,. .ng.g •• In .cttvlt, of su.t.ln.d l.rg.-I,.l. r.covtr, op.r.tton. which ,I.ld • lufflc'ent qUlntit, of ~.ttrt.ll II to tndf:.t. el •• rl, th.t • tht prlnctp.l PU"POSI 'I L~rg.-.c.ll production ·.th.r th.n.productlon Inttnded for 'nfor~.clon g.th~rtn" Inlly.l. or fqu'~mtnt or pl.nctl.tint. University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

TEXT OF L.78

~a) 31&0 "t 1oZ'O&1

'rlua .t.u':b:ad*7 .b&U dQ,.ftI1IIe tbe .ppzo?d&t. 11:. ct uo .. t .. ~ aplonUon wbLoh aq a uJ b twlcq .. lU'.JO ... 110.. to~ .zploU.UoA In oJ."dozo to paraU lJItol1.ho ozplonU.,a ~ponUoDi. tbg .h. of azoa .baU 120 ca1cula.oct t~ eaU.", ~ho l'.quUoaQnu ~ &l'1101o a aD ro'O""t!OD of Ii to. all woll .. d.t04 pro4"Ct!OD Z'Oquin:1ODt. aoalohct "'til an1Olo 1,1 of Part XI ol tbi. C~a~IIUon iA aooozUaoo witll tho ,.,ma ot 'M COIl'no' t~1I« lDto &OOOUD' t110 .tato of 'hi 1.1" of tocbDIJloD ~bon Availablo tor ocean GlG1nJ &nil tno roleftAt pi\YlLcal oha:'&cbn..Uo. ,f tho an.. ~u .baU noUl\Q1" bo .u11o~ no~ lu'ltl' tNll an l'IOOo"ur '0 .aUa:y 'b1. objootho. '

('J) !)umU:lD ot opezoaUoM I

(L) bo'pootlllG .1:&11 bo wittIG"t 'SlwooUG1t,

:u.) EEpbnUIlD .1»,,14 bo of ''''tlaloAI .JunUon AI to por:sU .. tbozoU(ih I\&I'YC1 ,t t~ '.,.01110 U'O., the , .. lp aM 0,,,,b'\lo1101l ot a1A1nI OI\uJ.~'Dt tor tbo ana, '110 ~ILP UHJ coJ\lb'\loUcn of 1D&l1 &D4 ae41=-.ho ~Oola.ua ,lane. tor 'b. pu:'p080 of to,U:Iq D1Nna &ad. pl'Gooll1na .,.tOGl,

(w) tbo dQft110n ot ~x:aloU&th:a .brNl4. ~ rol&t04 to tM oooJlODh Uto ;)t tba a!.::a1Di'V"CJoot. taJci:li' lntn conJ140ntlon web faoton .. tba 4oplot1~D ~t ebe 41"J. :110 uotul Uf:. 'It D1~ OC\,,1i=0nt ud ~co .. lftJ '.dUttal aDd. c=m.ro1&l riai)lU'T. i:ztJbUatl~1l .boul! bo :f auttlobn' ~\Ift,l.,)A AI Co ,omit o':II:Dol'01&l odnoUoD :I: :ainoN' ~t t!'.o &r.& u:l .MulA lAcla:Jo • Z'OAI')ft&:'lo "PO po~l,a t~~ ~on".rJcUCD of c:ccmol'OlA1 .calc :ain!:I! &n4 proao •• lacl I)'.'ml, :turiq wbleb porial coa:trdal pro~uaUoD .n-Jul.! not bt roquJ.rcoj. tho 'otal ~UZ'aU~1l ~r ~sploU.t10D, ~WOYO~. Ih')uU. Illo bo lhor' onou6b to at" •• 1\0 !:ltbol'l,,- aD )~rtun1'r '0 oaend. tl'" um. UId ,0ndUl:ll • .,t 'hi plaa ot ...ark at tho t1coJ U ocftll\J.:n :-.:r.0\ .. 1 1n ~:lO:lrdcnco nth :'I:.lc. and roauuti'Jr.:a wI\Lch it i'.&o L .. uoct IU:OQqUQ~t '03 onhnnG lDt~ ~b.1 ,lan :If ~ric.

( Q) lort'u'cllU:CO 1'OI\"I .. -oooD'"

naa !.:.&tl"':l'l~ .ha!l wq\lll'O tt' .. ; 4UZ'1nti tho o:,lanU.,Jl\ ,t&aO. lIOn.cd1c :;;::'::l!1:".u:'\:1 ~.: :1&110 by tbo ~pa:,.c.)r wbLcb A:'Q :,~uollAbl¥ ~~ii,=4 '0 U ... ho ot ':;:.1) ... ~~ :c'Knd 'q ;110 pbn :.l '..olk W ~~ O::v.J:I!!~~1 ·-d'J.:h wuli: !.o 'qGotod ,~t I. :;'~il' fA :i ~pent~r wi» 1ator.;lK til )&illi tI".c UQ& Lnt.:! ~ur:aoZ""..1al ~cJUCU')1l

"'tbLD eM t~-um.t. o.tabU.ba4 ~ 'be batb:lrUy. Sl:ch \"Iqu1rod. oxp:ladlturoo .bollld. aGt bo Olt..,U.w al a 10"1 wt:i:b ww14 ~&lcr:u:CiO pz'O';oC':l"1O 1pon::n ..t,tb 1 ... oo.tl¥ '00Il1010. ,baa 11 ;nn.bft'~ U "00. tho ~tb:ri:y .bAll o.-:ablbb. a aaU~JD U.ae intortal att.~ ~M "llontl:1D "~iG "1. ccaplo:od. '&114 eta ;sploUaUoD .ta(lO bopu to &ob10ft oomora1al. pl'Cchlct1oa. to 4.,om!nl th;;.:; Lnunal, ~M alu~ton.*7 lbou14 tea into C:C12I!.1on.tic:1 ,hac =Dltro!c:U~: :It liLz'£3-.c:a1o ~ &ad ,rooo.~ .,.tOQl aumo' be LnUi&'~ .,11 att.1' 'hi tcl'Ci:\&U~D ol "" "Q1oftUon It&JlCl UI4 ,1\0 oOGQollooa.nt ~t U.o oXiJbl ..... -:1on .tl.;3. !:O:lr.SLn.4'. 'bo lAtO"&! to \&in, loA IZO& 10;0 ~OQQtI'c1al r...6u;U:2C It.~,,!j "f""; LDto 'OCOUlt1 tho ,11» DlOlllU7 tor ,bt. aorwtl'\lotbn ct~OI' 'be oocploU In ':1 th: oxpw:,&Uo:a .tap a.o4 ro&lOnab1e allowaDoCl .hou11 bo :&:0 tOI' W1&~L(&U.:l Jolq. in tho ooftltr.aotLoll .obolbalo. ODOO OCCIQQl'Olal pl":lch.cUoll 11 &Clt'.lovod In .. bo ~.;loUat1oA "aao. ~M Ioutbon.'r lball wi'h1n l'Ouunablt1 11:::U." &nel tak1na 1"'0 C::II~.UontbD all "loYall' taotol'l I'CIl\uiH tho ~PDl'aC'::' to :&1n,d.n co=o::ca.al p~d"oUOll "'bIaucbN' ,be 101'104 of 'b:I »1&1 "t WON.

PROPOSED AMENDMENTS

Paragraph 2(a) L.78.

(g) remain as in

..... ~ ...... ""' .. ~ ............... ~.I-.....


(c) financial m~ttgr81

(i) a8tabliB~ent of unl!crm and non-dt.crlclnatory C~~t~r.~ ,r.~ accounting rule., olD well a. ~ha method of .electicn :tf aud1tctI J

(i,i) apportionment of procedd. o~ operatLorw J

(iil) the incentives refer~ed to in article ill

(tv) f1nal\c1al terns of contracts,

(v) Enterpriae JinancLng including detault procedur~.,

(d) rules, rdqul3tions and procedure. to implement deciSion. of the Council t~ke~ in purauance of article 151, paraqr3ph 2 of Part XI of this Convention. ,

(d) (bis) allocation of the fund. of the Authority s~j~ct to the provi.lons of article 17l, paragraph 2.

2. A.gul.tion. on thl followtng tceDs sh.ll full, refl.ct the obJlctive critlrt. ,et out bllow:

(,) Si,l of Ir •• :

The Authority .h,ll dlclr.tnl Chi approprl,tl slle of Irlll for l.plot.tlon which .,y bl up to twice '1 l.rgl " tho., for I.plott.cton tn ordot to plr.te tneln.tve •• plotleton oPlt.tlunl. Th, Sll, of Ite •• h.ll be c.lcullt.d to •• el.f, the tlqulrea.nt. 0' .rttcle a on r ••• rvltton of Itt, ••• Will II .t.Ced production requtte •• nt. con.t.eonc wtth .rttcle 151 of P.re I' 0' tht.Conventton tn .ccordlnc. with the t.t •• of the contr.ct elktng tnto Iccount the .t.te 0' the .rt of tlchnology then .v.Il.bl. for ocoln .tntng Ind the rel,v.nt phYltCll charlct,t •• tic. of ChI Irl.. Ar ••• shall nllChet be I.,llir not l.rg.t th.n .,t ntcI"~'y to •• ctlfy tht. obJ.ctlvl.

(b) Dur.tton of opet.tions.

(i) Ptolpecttng Ih.ll b. wtthout tt .. -li.le;

(It) E.plor.tton should b. of lufftcitnt durltlon I. to per.tt • thorough IUtV', 0' the IP.ctftc Ir,a, the d'lign Ind con.truction of .tntng equtpm,nt for the Ir •• , the d •• tgn Ind conltruetion of I.,ll and =ediu.-,izl procel.ing pl'nCI for the purpo •• of tl.tlng .tntng and procl'sing .yst ••• ;

(iii) Th, dur.tton of e.plole.tton .hould be r.laced to the .cono_le lifl of thl _Inlng proJect, C •• tng tnto con.ld.rteton .uch f.ctors •• the d.pletion of thl orl, the u •• ful Ltf. of .Intng equtp .. nt .nd P~oc •• 'tng f.etlttt •• and co •• erelll vl.bllity. exploit.Clon .hould be of luff'c'.nt duratton II to per.le coameretlL •• tractton 0' .In.r.ls of the .r.1 .nd .hould includl a r •• sonlbl. ct •• p.~tod for conltructlon of coma.tct.l scal. Qtnlng Ind proce.lfnv .y.te •• , during which p.r'od co..orcial productlon-s,ould not b. reQulr.d. Th. total dur.tlon 0' I,plott.tl~n, how.v.r;should .llo be .hort .nough to glv. the Authortty an OPportunlt, to 1.lnd the t.r ••• nd condtcto~. of the pl.n of work It the ct •• It considtr. renew.l In accordlnCI ~Ith rul ••• nd r.gulactonl which it h •• II,Yed subs'Qu.ne to .nt.rlng 'nto e~. plan ~t vork.

,


TEXT OF L.78

:,,"-:'£ 1.9 haltU•

:.. :. contno"1"to ri;h1. ,,",01" tho eODtnot OOftCol'lioa ., bel n.por.r:cc) :1" t.)r.Wul,oll -=:tl11n tho to~ ouo ••

~!1) lt, 1ft IPUO st \lUN.DI' by tbo :.:nhol'lV. '!Io aomftcto~ baa o,ndllotd ;U.I llo-:J.dUo. 1n l1Ieb a wtq u h 1"On1t 1n .0rioUI, ~OI'lll1ttODt &a4 viUul "l:lan)n. ,t th~ t'ul\'1.r.=nt&1 toraa ot tho oolmnn, Pu' AI ucl tho 1"IIl~' ..,., ~": .. 1&~lcD' .:t tbo.:.:.atbor1tJ'1 01"

(j) it a ~Dn-aot01" hal t.Uod to cw;ll' wUb • t1M1 b1~ 4001t1onlt U.o ~l.V~~~ .cctlcaGDt )Od, a,plicAblo '0 b1:.

i. 'rho .!uthoritr _ 1:lPOIO upon .ala o,n'noto1" CIO ... tuy pOMlt1o. :;r:,.:r.l:ll&to to thai .ariou.no .. ~t tIY violation In ant' cuo ot 'I1d.aUon ,r 'Un-A ~l ",:n~l'aot not 00"1"04 UDI1~1" PIftCl'&ph 1 Ca) I 01' in liO\l ot l1Ia~Dlion 01' t~r..!.aaUoD 1D .., cuo COYem \WI.I' p.I'Offtph 1 (a).

" Exoo,t 1n ouo. :at OD01'8OftOf 01'd01". U PftY140" t01" 1ft U'tl01o 162, ian.-ra .. b 2 (1'), at Put Xl ot 'hU Comantion, tho Llathol'1tr aq DOt ... cu'" a ~~cll1oD lmol'Ii.ftU CODot. ,.aalUo •• nqon.1eD )1" toftl1D&Uon WltU tho cO::~l'&ctoZ' Mt ~OOD aoool'd:.t. a l"Jeaoaa.'l. ~~t7 to oz!w&at tho 1ucl101&l Z'Q:IOc!ll' &1'&11&b10 to !WI pu"8UAII' to 1ut :a, .coU)n ,.

,J

Bg!1.t:Dl~9!!tElOt . '. '.01,

1. 'lhon c1..~t&DC" haft ulllD, 01' ue l1l:ol,r '0 ... 1.0, vtd.ch, 1ft the )~W":I ot tU~ PUV, \Oul4 "SC1" the OODtftot laoquUable "I' aaIro it bpnOtLe\lllle ~ lapo.81blo toJ .ohl09O 'IN ob10cU Y" I.t out ill t.., oontno' "1' 111 f .. ~ XI. tllo pvtl0' .b&!1 ent01" into l!0tPuaUoftl t, a4Ju.t it to DOW :1r:-.m.t taDC~O.

2. ~ c;)ntnot .ntOl"Od ""to 111 4Corn-:t&ftOO witb vUolo 1", SlU'8lftph ), or cart ::I ot tlul CoayenUon aq bo ~bocJ 'D~ witb 'be COlli oat ot tho putl0 ••

1'nn.tor 9t gU\!,bu"Uon, Tbo rip" .. ;,bUptbD' ... 1e1q c:ut at a ooartnot .ball 1M» 'I'UIto~ o~

w1,:h tho Oo:Nlont 01 tho .:.ut!loriV. and lD aoco~o vith tho l"IIlo .... l'O(l\ll&tlon. OS;; 'rlOd b7 it. Tho !u'hori tr thall Dot UZlHalOnabll' td. tbbo14 oollioat to tho ':Z'L"1St.:Z' 1l tho ~p'IO'J tnDIt~no 1. Ie aU I"ClpOt. a quaW101l "P1Ilieut anll ... 11::" aU : r ~bc o:al13aU:u )1 tho tnatel'01" UIIt 11 tho tI'Ull101"''loc, not conl~Z' ~,~ ~ho tl'ADttuco a ~lu ot _ric, the aPJZ"ya1 "t *oh .,,14 bo tOl'bic14'D b1 &r:1.)lo S, ~anp'.ph , (11).

PROPOSED AMENDMENTS L.78 AS IT WOULD READ

WITH US AMENDMENTS articl. 18 Ptn.ltlt1

1. A contr.ctor', right. under the contr.ct conctrn.d may. be .u,pended or ter~ln.tld only In the follo~tng c •• ,.:

(.) If, In Iplte of wlrnlng. b, the Authority, the contr.ctor ha. conducted his .ctfvlcl .. In .uch • "" .. "to rtlult In .trloul, per.l.tent and wilful vl~l.tlon. of th. fund •• ent.l ter •• of ~he contract, Part Xl and tht rult •• nd regul.tlon. of the Authority; or

(b) If. contrac:or hi' f.lled to cc~ply with. flnll binding dec'.on of .tht dl.putl .ettltment body .pplfc.ble to hi ••

2. Th. Authority .ay Impole upon the contractor .onetlr, Pln.ltft. proport fcroatl to thl .. riouln.,. of the vlolltlon In anr c.". ~f vlol.t Ion of tlr.' of contr.ct not cov.r.d und.r paragraph 1 (a), or In lieu of suspensfon or tl~ln.tlon fn any el,. cov.rtd und.r par.graph 1 (I).

3. Except fn c •••• of •• erg.ncr ord.r •• , provt~ed for I, .rtlel' 162, parlgraph 2 (v), or Part Xl of thl. Convlntlon, the Authority •• y not .x.cute I decl.ton Involving non.t.rl pln.ltl •• , .uIPen,io~ or ter~fnatlon unttl the contr.ctor ha. betn accord.d I rea.onabl. opportunity to .xhault the Judlclll ,.~edte, avallabl. to hi. pur.ulnt to Part Xl, Itctton 5.

Article 19 R.vi.ton of contract

1. Vhen clrcu_iE.nce. have .rf •• n, or are llk.ly to .ri •• , w~tch, tn the opinion of tlth.r plrt" would render the contract In'Qutt.ble or •• kt it tapr.cttc.blt or tmpo.stblt to .chl.v. the obJ.cttv •• I.t out tn tht contr.ct or tn Part Xl, the part It. shill ,nt.r Into ntqotfatlon. to .dJult It to n.w clrcu~stanc •••

2. An, contract ,nttr.d Int~ In .ccord.nc~ ~tth ,rtlcl. 15), par.gr,ph ], of Part Xl of thl. Conv.ntlon D,Y b. revised only wtt~ the conllnt of the p.rtf.,.

A,tlcl. ZO Tranlftr of rightl end ~bllaJtlon.

Th. rights and obllg.tlons artstng out ot • contr.ct ,h.ll b. tr.nsftrred only with the con"nt ot the Al:thortty, and tn .ccord.nce vith t~e rul •• and r.gul.tton. adopted ~r It. The Authortt, Ih.ll not unr •• ,on.bly withhold con.ent to t~. tr.n,',r I. the propo.ed tr.nlfer Is in all r.sPlct. a Qu.lifl.d .ppltc.nt .nd ".u~e. III of tho obltg.tfonl of tho tran.ftror .nd ff tho tr.nl'.r dot. not con1.r to the tr.n,fer., a pl.n of work, th, IPproval of v~Ich ~~ld b. f,rbldd.n br .rttcl. 6, paragraph 1 (d).


TEXT OF L.78

~. • ... :..~V ~;:,U:abb ,~ the ::n;nc, shall l»o tbo .,r:"'ll:Inl ~t Part :c. ~.~ :"J:a :.:.; ~ .. - ~~:.~r.1 :t ~h: ,.a::~I'1~r. -:)0.0 :OIC. anS :::IncSU1"nl of '''.0 :~n:n:~ •• lr~ .' :.::- :"::. D :f :':I,:n::&U:n&1 ~" ,~, 1ncl:=;I •. ",;'1. vUis ,,.,,. ~;aM.nU')D. JfT lieu.. , • ,.:., :0:1:. ,:-:'; '.'1 a ::urt U' ,:r.'J·Jnal M'/ln,J .1urlll1cu'JA ."., 91J1ue ::It' ~u ..

~:r.'Nr,~:.:n :',:~~u, ,:" '''0) rl,f.lt. atI:I :bU, .. tlonl :t ~ho ,".U':hDr1ty and 'Jt ':I~ .·~::1:':::' I:-.&l~::o nU:1 UI~ .~!.:::,:~::1.: 1n ,he tomtcl7' ~t .:ac:b St"., l'&I'~.

2. So Shto h.r~ ~ 1::po .. C::II'.41UOM OD & conh'a:c::I&' :IIaC &1'1 lnc::Ir.alltont "'U!: Pa:1 XX. B::woyer,:ho appll:aU.::ID b)' & s,.~. PU'~ .Jt :D~lDIn'&1 "1' ~':h::I&' :'Ci\I:'&UOD.l " 1,,-'1114 cUaol'l 1, 'penlor. CI' C::I .h1~. tl,;!CI u. n .. , ClOro It:1ftflDt t~ thJI. la~.ocl ily ~ho ~u;i-.or1CJ pur.uaD' co a.r'101o 17, ~J.I'ar-aFh 2 {t~. ' ..... :1 roc' ~" d" .• .: lacor.iI1ltoftl vUh ~"'~-C Xl.

"1!91o 22 _"gout<


Article Z1 Applicable l.v

1. Thl l.v .ppltclblt to the contr.ct shill bt the provisions of P.rt XI, the rull' Ind rlgulltton. of the Authority, thl tlrel .nd condltons of thl eontr.ee, Ind other rulel of Inttrn.tlonll l.w not Ineomp.tlbll wtth thla Convention. Any Iln.l deelston rendered by • court or trlbun.l hiving Jurisdiction by vlrt~~-of this Convent ton rlllttng to the rlghta .nd.obltg.tlool 01 the Authority .nd of the contractor ahlll bl vilid .nd enforcelblt tn tht territory 01 e.ch Stau P.rty.

2. No Stltl Plrty Gay Impol. conditions on I contr.ctor thlt Ir. Inconsistent '11th Plrt XI. Howevlr, the application by • Stlt. P.rt, of environmental or other r.gulatlon. to tea-bed ~tnlr. it .ponsors or to Ihlp. flying it. fl.g, mort Itringent th.~ tho •• Impoled by tht Authority pur.u.nt to .rttcl. 17, plragraph 2 (f), Ihall not bl deemed i~constltlnt '11th Plrt Xl.

Article ZZ '''&tlhy

Any responllblLIty or ll.biLItr for wrongfUL d.m.ge .rl.lng out of tht conduct of operation. by the contrlctor shill It. wtth the contrlctor, Iccount bllng tlken of contributory f,ctor. by the Authority. St.illrly, .any re,pon.tblltty or lllblltty for wrongful dl.,g. Irl,lng out of the e •• rctll of the power. and functton. of the Authority, including liability for viol.tton. undtr .rtlcl, 168, par.gr.ph 2, of Part Xl of this Convtntlon, Ih.ll It, vtth the Authority .ccount being tlken of contributory factor. by the contrlctor. ~llblltty in every e.11 'hill be for the aetu.l aaount of dlm.g ••


TEXT OF L.78

:. h 6i:.ter,rt.o ,hall be the oqaA ot .. tho :.:dh01'lV 1Ih1ch ahs11 Oar.'7 ou, aoUY1Uo, 1ft tl:.o A&'tll :Un01lr. punuat.t. '0 =Uo:" 1". puqra;3 2 (~,. ut Put XI of th1.I COll".n11ou. AI ".11 .. 'l'anapol'taUOD. proc.ol1q .. mut.-:1r., of ~I'&b I',co~.recl Ina the lna.

2. %D 0&1':'111:; out it. plZ'pOI" lid 1Il the FutOl'DMC' of It. f'.sDoUana, the h1e~1I •• hal1 ac' LA acoOl"dGM. with tlte prondcu of tilt. CODYmUOD, .1:lo1u4JJlc itl •• xel, ID4 the lUl'" l'OplatlONl on! proo.llun.of the 1.uth07:1tr. .

,. %D ct.~loJiDI the :'I.aIIft" of the ana :;UI'IU&D1 to pua;n.pb 1, the 1D'te~1I. Ib&U. IUb3'ot to the JZ'OY1l101:1 ot ~ ConYenUaa. oJlU'&t. CD IOwvl oc=me~1a1 ,riDa1,1 •••

An1el! 2 R.ltUpyhip 50 th. Autbqr1t:r

1. Pllnuan1 to 4'ticlt 1;0 ot Put XI of tb1I CODv.nUoe, tu In'UPl'u, ahall act LA aooOl"cluc. witb the IIII.IN po11c1l. of tM .ltetabl:r _ the 4UeoUve. o! the CoWloil.

2. ~b.1.e' 1:0 pvacnsn 1. the IAtupr.f.l •• h:ll1 .n.1o:r autODaa,J' 1A ~e collduot of U .. openUOM. . '

,. 10tlUq 1D ihU ~CDYeD'1oD .ball aake the ."1111"18. 11.bl. tOJ: ~ ac'. OJ: ob11l1\11oca of ~ .I&lthodty 01' the ~ttodt:r 11&1»1. tOI' the totl 01" Ob11c&UoDl ot ~e BDtel'Pri". .

LiI1ta,t:nt:t'tl.bl11tY Without 1'"3\141c. to Gl'tlolo 11, p&:rlCftpb ,. no .1Ibe1' .ot the !\ltbozoitr ,ball

~ l.1t~1t b7 r ... en oD1;r of U. m.lllbenb1p tOI' the GO" 01' obUc&tion, ot tho ZDt'I'PI'18"

SlJUgsur/!ftt: fnttrpr'lt lb. htuJll'1I1 .;,at1 htve :l ~.'nWlc load, .. D1no~ozo-Gen.nl. and. the .tatt

Moe •• u;r EoI' the Jerfonano.ot Lt. !\uIoUGnI.

PROPOSED AMENDMEN~S

ANNEX IV. STATUTE OF THE ENTEPPRISE

Article 1 purpose

1. ' The Enterprise shall be t:he or9an of the Authoritl' which shall carry out prospecting and activities in the Area directly, pu=suant to artIcle 1S3, ~ara9raph 2 (a), of Part ~I of this Con·lention. as well as transportation, ~roces91ng anti marketing of Dinerals ~ecovered ~rcm t~9 Araa.

Delete paragraph 2. See knnex III, arti:1e 12.

l. /fn developinq the resources ~~ :he Area pursuant to paraq~~oh-r, the? The ournOSf! ",nd fundamental oolic'l of the Entergrlse shal! be to :1e .. 'eloo the resources of lhe "rea orolltablz. ~he Enter?rIse shall I. 5ubjp.ct to the pr~visions

·of thIs conventIon;? ocerate ~n the-b~sis of sound commercial princi?lea. -'

Article 2 pelationshlp to the ~uthorlty

Delete paragraph 1.

l/'fl. ISubjact to pan,qraph 1, th!7!h! E::t'l:'?t'_ .,. shall-enjoy autono~y in the conduct of its op~ra~ir.~£--2:~ cept as otherwise specifically provided in thu ;':'::'.''::1: : .. ~. :

! L!7 •. New paragraph 2 is the same S8 para9raph 1 ot L.78.


ANNEX IV. STATUTE 0' THE ENTERPRISE

Artlcl. 1 Purpose

1. ;h, ent.rprtl~ .hall b. th, ~rgan of ~h, Authority which .hall c.rry o~t prosp.ccing .nd .ectvltl •• In th, Ar •• directly pu~.u.nt Co ,retcl. ~5], p.rlgr.ph 2 (.), of ?rt Xl of tnt, CO~/entlon, II w.tl II ~ran.portatlon, proc.sslng and ~arkftl"9 of .tn.ral, r.cov.r,~ 'ro. th' Ar •••

3. ,~. purpole, and '~nd.~.nt.l 'poltcy of th. Ent.rprl •• ,h.ll b& to d.~.lop the r"oure •• 0' the Ar •• profttlDly. Th, Ent.rprls. ,hltl OPtr,t. on th. basi. of Jound cOft~erct'l prlnclpl.l.

Artlcl. 2 R.latlonlhlp to the Authorltr

1. T~t Ent.rprl •• Ihlll .nJoy .utono.y In the conduct of ftl op.rations, .a:.pt .s oth'r~t •• lo.ct'lc.lly provided In this Conven~ t io,..

2. Nothing In this Conv.ntlon Ih~ll .. k, the Ent.rprls. liebl, 'or the .et. or ~bllgatlon. of ChI Auth~rltr or the Authorlcy ll.bl. for the act. or obllg.tion. 0' the Ent.rorls ••

Artlcl. J Lt.tt.tlon of (I.bilttr

Without pr'Judtc. to .rtlcl. 11, Plr'gr.ph " no .'_b.r ,f the Authortty Ih.ll bt It'blt by r ••• on onl of I .:I,no.rlhlp ~or the acu 0,. obltgetionl 0' the ~'1t.,.p~: ...

Artlcl. 4 Structur. of the Ent.rori,.

~ Th. Ent~r~rl., .h.tl h.v •• Gov.rnlng Bo.rd, a Dlr.ctor-~en.r.l and t~. Ita'f n'C'.,.ry 'or the p.rfor.,nc, 0' It. functions.


TEXT OF L.78

;rtls\, , :Jo"'rnL;; gcad

1. ~I Qover.U.-oC b.v4 ah~l h 4C111po.e4 " l5 ::eabe" dec:d 'IIy the .L1Iecbl7 !n a.cCCr4:nCI '.'tt.': U'':!o:'e 160, ;a..~~p." 2 (0) • .,C P~t 1: ,t ~!.1 :cn.,eatl,n. IA ?e decUon ,t :he ::ant"n ~t tM !~d, .sUI resU'll .h4!! ~I ;d! u thl pd.:wlpl1 'It ."J!tcult lI.a~;h!cal llatdbu:1on. L"l ,uhU':':!r~ :z=!,..a;lon. ,,: :anU~t.,. tor .. ll1ctlon \0 the Saari, CIII."n of tb. :~thodty aaLl ~e3.Z' 11: :w:4 -:.'ll ~eo! to r,oa1r~tl ClA."I41Ut .. ot ~e hlp,., .tanclu4 ot cOCl'atcDcI, vl ~ qu:.!U'!O:AC!'"'' Jr. :-.lo)V~t ~1t141, .0 .. to IMIU'e the .ubll1tr an4 Jucco:at at the tntlr,:r!u.

2. Itc'bon ~t tbl J0u4 ,hal.l l:t tl.ott! tor r. ~ora at tou&' ;/eL--1I .:111 31':3:.1 '=e 'tl!Jrlb!. Cor r .... l.otlOD. In the 011"O:10n .In! re-olc::lon ol o;llo :o:IC01':l cC ~t:o ~:.JoU'oS, bo relAri ehAll bl pa.14 to tha p1'11101p1. at ~t&:.Uon.

,. tach ::eater nC ~. Boai'd JIlAl1 !a~"e or.e yeh. _:1 ~,:-;en t:.t~ro ~,:g J~ ::" ,:tall ":. t,014o' b)' a =30rU,. or the co.n at dl. toud. :t A ::aat.r :~ ~ :onIUct ot !D~"I' OD I CAUor b.ton the Boo.d he 1:.311 r.!rlLln !r,a 'lOt;;...,. I"r. .l-:" :a't:er.

.;. :::aob :I_blr "t th. loU'! .hall rocll'" rlaun.r:t.t!~ ~ ':. 6'&11 O"~': ~t tr:~ !:.L.,4JI ot thl l:Iat.rpruI. '!h • .:IIIOUDt ot ncuntrstlon .hall be (!.at ':1 to"_ ,~":J.:bl:;, ~i'Cn ~h. roeOlCDl:r.4Atlon ot ':he Caunoll.

,. :I_ben ot tJo .. 10&1'4 .t-oUl .. d in thiS: penor.al oCl.p:olty. IQ tb. ptr!oClAc, ot "'liz &aU •• th.,. ,hall Dot •• ok or netive 1N~l'Uot:1o:" .. lZTC allY 4'/uO:'.I:.nt or trea U11 oth.r .aurel. :hI r:a=b.n ~t ~hl .:.a&thol'it;r ~n&ll n'!;I"~ ":h .. !.:,cSaP4r.4ent obanoter ot thl GllDbl" at :lIa at'ar4 ~..1 nCr~ troa :.t1 c.t:Il:pt: to/) W!I:."r.c. 2.V ot ~III iA the clUc:tc.qa at ~.1r 411 u •••

~. :t.cben ot tbo loan. .h:tll oor.U=. 1ft ottlce unCll tho!&- .Iuccono1':l ~.:-e .lIO:":e.i. U?e ottLcl :It a coDb.1' ot W B~d b.occol 'tACAnt. ~. ~uecl"!117 Mol .. , 0Jpo:a :h. r.Coc::rMnutloft ,t thl Counoll, .100t IMthl" ~blZ' tor tho nCAiJulezo ,t ;'" °.or.lxp1ra4 tire.

r • ~ SoAri ,hall ::,z=1!; 1'.anc~1Oft at the Fl'lnc1pGl Ot!!:1 ,t :hd rllt.:"~.lsA :.:.1 J~ul Da.t .. oCtOD aa the tu.w •• ot ~. En"':l~u, DII,y "~d .........

3. •• ~I'UA tal' 0IrI aO'iJl& ot ~ .. 30&1"4 ehsll 'JI ~ ~J.ria o! ;t.a :uchr' ~'! -:~Q lo:t.rl.

i. :.zq z.eaber at ~ • .w.thor1~ U¥ J.l1c the Boad C,r La.C:J2acJor. !:1 " .. poo': .Jt 1.~! c;.ra,!ou lIh.lcb putlcululr All.ot that acb.r. ~o!loo.r4 .h~l .c!acaYCM:.l' .: ;:-ov!io luca L"llorcAt1oll.

PROPOSED AMENDMENTS

Article 5 GovernIng Boord

p4rairaph~ 2 a~d 1 as in L.lR.

4. Each me:aber of the eoard shall recehre reSllunera~ion t~ be paid out of the funds of the EnterpriJe. /The amou~t of r9munera!ion shall be fixed by the Assembly, upon-~he recommendation of the Council~7

paragraph 5 as in L.7S.

6. Members of the Board shall continue in office untii ~heir successors are elected. If the office of a member of the Boare becomes vacant, the ~98embly shall, upon the recom~endatio~ of the Council, elect another member for the renainder of the unexpired tor~ in acco~donce with the requ1r~~ents of oara~raEh 1.

~aragraph8 7-9 a3 in L.78.


Artiele , Governing IOlrd

1. The Governing Board 'hill be compo,ed of 15 •• m~er. electedo , by the A •• tably In accordance with Irticle 160, parlgrlon Z (c), of

Part Xl of this Convention. Until the Enterpri.e ha. repaid .ll d.~t obLlg.tion. incurred pur.u.nt to article 11 (bl.), par.grloh " the A ••• mbly ,hill tn.ur. thlt .e.ber. of the Governtng Boa~d includ •• e.b.r. nominated by Stlte. P.rtl •• thlt Ie count fo~ .It lun on.-half of the toul .• 1I0unt of .uch obltgltlon. outttlndt"g. Con,t'tent with t~e for.golnt reQulre.ent, d~e reg.rd .hlll Of paid to the princtple of eQult.ble geogrlDhtcdl di,tribution. In .ub_ftttng na.tnltion. of c.ndid.tl. f~r election to the Baird, .. ~er. of the Authority ,h.ll be.r in eind the notd to no.in,t. clndfd.t •• of the highe.t Itlnd.rd of competence, with QUllfficltionl fn r,levant field., .0 .1 to en.ur. the vl.bility ,nd .ucce •• of the EnU."r", •

2. Memb,r, of the BOlrd .h.ll be electld for. term of four year. Ind 'hill be eUgible to,. r.-election. In the election ,nd re-el.ction of ~he •• aber. of the BOlrd, due rlgard .~.ll be paid to the prf"~fple of rot.tion.

3. Each elab.,. of tne Baird .h.lt hive one votl. All ..tter. before the Bo.rd ,h.ll b. decided by •• aJority of the member. of the ~o.rd. If •• ember hi. I conflict of interl.t on , .,tter be for. the BOlrd he .hlll refrain from vottng on the eltter.

4. Elch eemb.r of th. Baird ,hall r.c.tve rtmuner.tfon to be patd out of thl fund. of the Ent.r~rt.e.

5. "I~erl of the 80lrd 'hill let in thetr per.on.l ca~lcity. In the perfor •• nce of their dutie. they .hall not .eek or recetve inltruct'onl fro. Iny Govern.ent or fro. any other .ourc.. The .e.ber. of ch. Author'ty Ihlll r'lpect the 'ndependent chlr.ct.r of thl .. ~,r of the Baird Ind ref,.fn fro •• ll Itteept' to fnfluence Iny of the. in the dtsch.rg. of their duti ...

6. "I~er. of the Baird ,h.ll contfnu. fn off tel until their IUCCI •• or •• re el.ctld. If th' offici of I me.ber of the BOlrd beeoel' vlclnt, the,Asa.ably .hlll, upon thl reco.aendlt'on of the Council, elect Inother a •• ber for the rem,inder of the une.p'r.d t.r. fn Iccordlnce with the 1"quire.ent. of p.rlgr.ph 1.

7. The BOlrd shill nor.llly function ,t the prtnciple offfce of the Enterprt.1 'nd .h,ll •• et •• often II the bu.ines. of the Enterpri.e .IY require.

4. A QUoru. for Iny aletfng of t,. Bo.rd shall b. two third. of the me~er. of the laird.

9. Any •• aber of the Authorit, .'Y Ilk the Bo.rd for fn'or.ation fn re'Plct of ttl operlttonl Mhlch plrticularly effect the .e.ber. Th. BOlrd 'hill endelvour to provfdl .uch inforllatton.


TEXT OF L.78

SUd. § Pan" NUl "'RoUoP'

~. :JO.,.im.nl loud. 'hAll .linn the bIt.W.1II opOZ'&1ioM 0' tho Znt.rpI'1I0, SubJ'o~ to the Pl'OY1Ilol11 ot th10 ':Ollv.IlUon anll U • .\Mozo" th. (JO\ .. ~nl 30an s~all .xe~oJ.u &11 the po1Iel'll neo,Slur to !\lUll the ~., ot til' !n-cer,l'u", !.::cll.l.~"13 ~cr".n;

~&i 10 5,..,.lop plaw ot wme ad P'OIft'DI' SA O~ OIl' 118 1LO~1"1~1e:s loa prov14.4 tor SA utlole 170 ot Put XI ot tb1I Coan.aUOIlI

(,: i :0::11 up aa4 ",bali, tOlDll WittlD pl=- ot work to ~, C:'.1Mi:. 11'. t.:cori:,."\C! \11th U'ttoll 1", JUacnp , &ZIIl uttola 16~t p:a.r-aFh ": (~) t :sf ?:Z1 X! of tb1ll COIlYUUODI

(0) to pnpaz"l aa4 IUbaI1t oppUoaUOM tot: proibOUOD authol'iZGttoD to tho Cowsoll 14 ccccmlaAae "itls anlole 151',. pncnllb 2, ot 'ut Xl ot tbll Con .... n.1:1CA'

(4) to autborill Il.ICOt1AU9M Oil ':h. 4OqUe1Uo:l 0' t,duIoloQ, 1nolu~ thea. p!'Odllta t~r in .... s m, =Uo1. 5, pG:.:DfaI'ClJU '(A), '(0) _ ,(el, ... to appoY! til, n'v.! t. ot .uob DeCOt1:iUou,

(.) to .,bblilh tema M4 ooft41Uoaa IUI4 to &utIlo,,!::. n.;ottaUDIII1 tor ntU'q SA\o ~o1Dt YC=. .... aa4 otha' tora ot .101nt &ftq.CCftt. 11.1 PI'Ov14e4 fOJ: SA ADDu m, _,tole 9 lilt ,,"101. 11, aa4 to &Ppz'OV, thl nnlt. of .\lOb aocotbUoul

(t) to noOllDlD4 wba.' paZ'Uoa ot 1\8 D.t JDooct silou:.4 " ntdD.4 u !to n •• "" SA &CIOGrtbDo. wit" U'tl.ol. 160, pAftlftpb 2 (f), ot Part Xl ot tbi'. COIlYeDt1crn.

(.) to ILPJI'O'" the AmIU1 bl&4pt of b kttl'Pl'S. ••

(b) to _tilor1M tb. JII'OCNI'OZIIDt of 10041 ar.4 IIrdou 1D QCoor4Mo. "Uh &rUd. U, panpallb·~, . :

(1) to lUt.1t 111 IImII&l npal"O to th! Counoil u JI'Oy~4.4 tor 1D =U01l 91

(." \0 nbldt to the CCNDOil tOZ' the o.p~OY&1 ot the ,-.cblr, zul .. in n,,.ot ot the OI'pDiSllUcll, unaceMllt, appoiAtunt 1ft4 UulI,a1 ot tho ,tatt of thl latU"pl'lI., UI4 to a40p' nl\llAUcau to ,1", .tt.o' to noh zul", •

(Ie) '0 .1eo\ a :IW.mIIl tna C1IIODI 1 U aambtn.

(1) to adopt U. oW l'Il1.. of prooo4uft I

(.) to 'boftow ~ ad to t\amlIh nob ooll&ttnl OZ' otheZ' ItGl1l'lV Col it IIq 41Mn1iD1 1ft UClOl'Wlc' vitls U'tl~. U. pazqn.SIb I.

(D) to _til' into UJ' ltp1 pno.dS .... ..,!!UtI U'.4 tnuaotiOIll ~ \0 .. aa;r otU~ aoUau SA aoom!uloe "ith ~1o~ 1" . .

(0) to hl.pt., IUb~"' to th. &JlIl'Oftl ot th' (:ClUMil, 1117 lIOA-4t..eortUOn:ar,r JOWl'! to the 4)b'totor-cleAtnl GDCl to u. oCllld.\'te •••

PROPOSED AMENDMENTS

Article 6 Powers and functions

The Chapeau and paragraph (a) remain as in L.7S.

(b) to draw up and submit forll'.al written plans of work to the Technical Subcommission /Council7 in accordance with ar~icle IS3, paragraph l and article 1{5 /r627, p~raoraph !lil LI(jLi, of Part XI of this ConventIon, -

Delece subparagraph '(c)

(d) ~o authorize negotiations on the acquisition of te.:hnology, Lfncluding thos9 provided for in Annex 11 I, art Lela 5, paragraphs 3 (a), 3 (c), and 3 (d) L7 and to approve the res'Jlts of such negotiati~ns:

Paragraph (e) as in L.78

(fi to rec~mmend what portion of its net inco~e shcul~ be ret3ined AS its reserves in llccordance with a::ticle /rr.c·7 !f!, paraqraph 2!c=) ~I(fL7, of Part Xl of this conventIcnT

Paragraphs (9), (h) and (i) as in L.78

(j, to jdOPI Isubmit to the Council :or the approv~~ of the Assembly~ ru es 1n res?ecc o~ ~he organization, manag!ment, appointment and dismissal of the staff of t~e Enterprise L, and to adopt re~ulations to give e!fect to such rule!!,

Para9raphs (k)-Cn) as in L.'S

(0' to delegate /7 subjact to the ~pproval of the cour.cilL7 B::'ly non-discretionary powers to the D1re·:tor-General and to 1 ts cor.unitteea.


Articll 6 pow.r •• na function.

Tht Governing Bo.rd .h,ll dlrlet thl bu.tn.s. oper.t'on. 01 the Entlrprl... Subject to the provllton. of this Conv.ntion .nd itl Anne ••• , the Gov.rnlng BOlrd Ih'll 'Itrel.e III the ~ow.r. n.c •••• ry to·'ul'ill the purpOl. 0' the Ent.rprlse, fnclu~tng powers:

(.) to devllop pl,nt of work .nd progr ••• In c.rrylng out It. Ictlvitll ••• provldld 'or In .rtlcll 170 of Plrt Ix of this Convention;

Cb) to dr.w up and sub.lt 'or •• t written ~l.nt to thl Tlchnic. Il Subcom.t •• fon In accord,nc. with artlcl. 153, ~a·,glph ] Ind ,rtlcl' 165, oar.gr.ph 3 (g) 0' P,rt Xl of thl. C,nvtntton;

Cd) to luthorlz. n,gotl.tlon. on the .cQulsltlon 0' ttchnol~gy, Ind to IpprOVI the r •• ultl of .uch n,gotl.tlons;

etl to estlbllsh tlr~. and condlt.on. Ind to au:horlze n.~otlltlon. for .ntlrlng Into Joint v.nturl' Ind othlr for •• 0' Joint .rrani,Q.nts 's provid.d for in Ann •• • 1., .rttcll 9 .nd .rticl. 11, .nd to approve the rt.ult. of .uch negoti.tton.;

efl to ~tcom •• nd vh.t portton of ttl ntt tncoml should br ret,'nld I. ttl rt.ervis f~ .ccord.nce with Irtlcle 162, par.graph ~ ecc), of P.rt X, of thl. Convention;

(g) to approve thl ,nnu.l ~dgt~ of the Ent.rprt •• ;

eh) to luthortl' the procur •• ent of ooo~ •• nd .trvtc •• In .ccordlnc. with Irttcl. 12, Plr.gr.ph 3,

CI, to IUbMlt In .nnual r.port to tht Council,. provided for In .rtlcl. 9,

CJ' to Id.pt rult. In rt.p.ct of tht org.nt,.tton, .'n.gt~tnt, Ippotntmt~t and dl •• t ••• l 0' thl .t.f, of t~e Entororht;

ek) to .lllct I Ch.tr.an for. ,.on, Its •• -o.r'l

Cl) to .dopt ttl own rull' of procedurt,

C~) to borro~ fund •• nd to furnish .uch coll.t.rll or othtr •• curlty •• tt •• y dtt.r •• nt In ,ccord.nct with .rttcl. 11, Dlr.grlph 2: .

en) to .nt.r Into Iny lli.l proctldlng" .grt.~tnt' and tr.n.tctton. Ind t~ tlke .ny othtr Ic:lon. In .ccordanc. ~tth article 13;

(0) to detegltt .n1 non-dt.crttlonlry po~tr. to the Olrector-G.n.r.l .nd to Itt co •• ltt ••••


TEXT OF L.78

ptncsdmt Zed Itatf

1. 'D:o ~1_b17 obaU, lapoA tho noomea.ia1ioa ot the CClllftOll, u4 th. llCIllIJ.A&t1oo oC ,h. Oo .. mtA, Boari, .bn thl D1raoto~..oCUl.nl 'mo ,ball DOS 01 0. =*Iber ~t \bl BoUlt. 'l'h. ll1redOl'..olnntl mall b. tho lesAl "pre •• nt&ttv. o~ the btlrt'l'uo. lie ,ball pa.rUolp4S1 tA thl :loUnp ot "h. Bo~ lila! .bAll bltv, no votl. a. gq puUoipaq '" aoeUql ot th, .la .. Qbl¥ =4 tte aOWloll wb.D thaI' oq&AI an 41al1l11 rith =att,re oonClr1SUlI the BASIl'prill, wi on"l ba.v, CO "lot, o.S auob Qletiqa. The D1reotoz..4IAU'" shall Ao14 ottl01 tal: Go tu,4-S,m DOS lXOI04Ulc tlyo yean u4 mar be n-eleotl4 COl: tunhu Stzm. '

2. 'lbl :U.noto~onJ. ahAll b. th, ~let •• ouUv, ot the EDSoQl:1co 1M anCloll be 4J.nn17 nlpondb1e So th, .loYlftl.1Jl; BOGri to~ th, ooc4ucS ot th' walD .. , at th. ~'U1II'1:Io. a. tAul lie nlpulblo tor t!WI ol'3aa1zaUon, =o.r.:pQlQt;, Appoinsc.nS =4 UAa1a.o.l ot til, l~alC Ul &COOriAAoI wlth tbe l'Ul .. ucL l:o;U1ASlone reCernd. So lD on1cl. 6, IUb~"p!l h).

5. 'lb. Dinot=-GtDUo.l GD4 th," ,tatt at th. EIlt,rpd ... fA th, 4.l.sch.c.rc- ot ~.Jz haU •• , aWl ftOS I •• 01: 1:.01191 1aIU\loUOni t:oz:a u:t Qov'l'DCInt 01: tl'CG A:IJ other .cqct. ~., .b.2l1 ~bUIl ~ &Dr a.ctta ~ch :iab' nn.o' on th.i= podt1~D ~ lDtln&$1oul olt101o.l1 at the !nt'rp:'iI, ~ •• ponaL'bla onlr to tb. !MI:'Fdl'. '::1. DOQben ot til. :.utho~!~J ,ilAllo ~ .. peot th.iA,.Z'ftAcloaal. obAnOt." 'Jt Ut, J)1nno~nu&l d as • .scr.tt ot Sh. !D1.rpn..1 an4 IhAll nt~LlA t~OQ all ~StcP" tG J.nt1u.ftOQ aq of the 14 ~I Uaobar;e ot ttt.t.zo aU •••

4. III apfOlnU.r-s tba IWl, Sh, D1reo~~.~ thcall, .u1:l~.o' \0 th. ~Dt ~I'\=c, of '.aa1.Dc th. btFaas .,dude ot tft101lnq an4 ot c.abn1cal co:IpI,.Geo, ia:J -11&1 I'll"" to tile mJlO&'UAo, ot nozub1q peno=-l on an ".!fI1SAali ;eoonPicAl l:ad,.

~' o •

'lh. £Ds'Qr1 ... btll have Ua ~1Dolpol ottio' al th. leA' at Ul. ""'~odV. n-.. SDt.rt=lae CIQ' .. u1l11ob otbu" oUio •• an4 t&o111$1 .. iD the "rdtOl:J ot GZrI :oabu 0' ct, :.lnhozoUI vlth SIs, 2ona'IaS of tha, =-ab",.

'\r~1slt , Proyit1oD or "POrt;.

1. ~ .. EnU1'PI'1.1 ehAll, not l~t'r tbaA thn. :lOAth. at'er U-.. .ntl ot .1.Gh t1nan:JAl ~U', .ub::a1S to the CCIWIG1.l t= U. GOu14anUClA GIl IMU&l repol" :OlltaJJUna .&A au41tl4 U&teDtDS of U'"AGOCWlS, _4.hell tl:DAaQ.f..t tG the Couuoll At "FFopr1A'. at.nAlI & Gu:::DaZ7 aCAC<I;I.8Dt; ot U. t1Duo1a1 podS~n IA4 0. protu CIIl4 10 .. UaUawn; 3t.ovinc cbo :VluUe ~, i':" Q.er&UoNl.

2. ":he iA'.I'P'1I •• hGl1pa~ lu =nual. npan _ .uch obI: "POri' .. U UQI ~FOF~te.

,. Cop1 •• of all upon. aM t1JwlaUl .satlGlDh "'und. to 1A ~ an1ol, .bDll b. llnr1~'e4 So ~he ae=ben of t:lt .-.ucbod'7.


Arthle 7 otrector-G.n.ral Ind .eaff

1. The ~".ably Ihall, upon tn. rlcO ... ndlct~n of Iftl

Council, Ind the no •• nlt1on of the Gov.rntnQ BOlrd, ol.ct the

Dtr.ctor-G.neral who .h.ll not b •••• ~.r of the Board. 'Thl Ot,tC&O,Glnlr.l ,h.ll b. the l.gal r.pr.,.nt.t1v. of the Ent.rpri,..Ht Irl\L p.rtlc1p.t. in the ••• etngl of tn. 10lrd but Ih.ll h.v. no voc.. ~t .,, pareicip.t. in ••• t1ngl of t,. AI •• ably .nd the Council .h.n ct." organs Ir. G"ltng wtth .. tt.r. conc.rnSng the Enterpris., but sh.ll h.v. no vote .t such ••• efng.. 'ho Dtr.ctor-G.n.ral 'Shill hold offtco for I f1 •• -t.r. not •• c •• dtng ftv_ , •• r. and .,y b. r.-.l.ct.d for furth.r t.r~s.

2. Th. Dtr.ctor-G.n.ral .hi~l b. the cht.f ••• cu~tv. of the Ent.rpris •• nd shill b. dir.ctly r •• pon.tbl. to the Gov.rntng Baird for the conduct of the bu. tn ••• of the En,.rpri... H. Ih.~l be r.sponstbl. for t\. orglniz.tton, .anlg.ntnt, appotnt •• rt .nd dt •• t, •• l of ch, Itlff fn .ccord.nc. with th. rul'l Ind r.gut.tton. t.f~rrod to in .rttcl. 6, lubp.rlgraph (j).

Articl. e L,cleion

Thl Ent.rpri •• shill hlv, ttl prtncip.l offtc •• t ch, •• ,C of the A~thortt1. rh. E,c.rpri •••• , 'It.bltlh oth.r offlc.1 .nd flCtlitt.1 t" the t.rrltory of .ny •• .otP of the A~thortt1 with ch. con •• n: of t,.t r.port.

Aretel. , Prov.,ion of r.portl

1. Th. Ent.rpr'l. ,h.ll, not l.t.t th.n thr •• .anCht aft.r the .nd of •• ch fin.nci.l "ar, lub.it to thl CounCil for tca cO~ltd.r.tion In ."null report cont.tnlng .n audlt.d .t.t ••• nt 'f ttl ICcoune. and ,h.ll Ctlna.ft to tht Council at .ppropriat. frc,rv.l, • suae.ry .t.C._.nt of iel ftn.nctll POltcion .nd • profic .nd lOI' It.t, •• nt Ihowtng the r'luLtl of ttl oper.ttonl.

2. Th, Enttrprt,. Ih.ll publtlh it •• nnual r.port luch oth.r r.port •••• it de •• , Ippropri.tt.

3. Coptt. of .ll report •• nd ftn.ncta' .t.t'~I"tl t.f.tt.d t~ tn th ••• rttclt Ih.ll ~. dtler'but'd to th • • '~.r. of th, Aythorlty. "

Ird

("


TEXT OF L.78

1. Subjeot to p&np'&~ " till !nte~irJ. Ihall uk. par--Dte ~o the .lutboritr -mU1' lDa:IIIz m. artiel. 1', u tbau .qul'11l'Dt. ,

2. lh • .b •• blT .HaU. QpoD tho ncOlllllled&t1on o£ the Oonm1nr Bod. :!etem1M ·All.!! portion ot the., iMoot ot ~I !ota.."nal .hall ". nt&iM4 .., U. re.entl. 'lhe rec.dzlar .hIll be tr=-t.necl to tbe ,wthoritJ.

,. Ilu1'1q III in1t1a1 "riGel nqllift4 tar til •• t.rprt .... to b.COM .. 11-lapport1n;. vb10b ,h.al.l cot lzo.d 10 Jelftl tl'Olll till cClllDlcoeaat ot tt. OCICIIl'Cllal p:oduoUoft, tht :".ea1l17 dall Ulllllpt thl EZltoqril. tftm tbe p&1IIIIIDt. reflrred 1:0 ill ;U'acrapb 1, 11'.4 Ihal1 lea ... &11 ot ~M :tet ineon of ~ Inlerpri .. in U. n.,rns.

~ , ....

;.;oUch l!. 1&'1:':;21

(.:o; =o=t. nce!TG4 hc:a the .~:nhc:,l.V !:. :c:ord.c:J:o dt:' ::I;!c:', L'~~, ~::3.,""r&~ :! {b), of p=~ XI of 1:Ua C~ny.r.1:!oa:.1

('t:) '9QluntllZ7 c01lUO:l1:ut.bns :a:a:la by St.:t.~u lIs..-tle, £= the pttTClIl ~:: !~:icc &Ct1~!:1oa o£ ~ EDte~1I.,

~o) r::cwIte ~01':'OW4 117 tho Intlr.=-1:Je 1:1 :.:eor4:r.ct1 ·Il~!l tl:.o prov!:J!er.: ::: ,::~:.:r:~ :;: u:! ,.

(:l~ 1:lccma ot the !at'l'PI'Ut tl:rO".a;!\ U~ o;:O:':L~lcmll

e.i other fwl4a •• &fti1&1111 to tho in,,::pru. to eAc:~l. it :0 :,":::-J :U1: 1~. !"..u:cUORI .m4 to oom.taoe openUono III 'OOD ;,. po .. ll1lo.

:. ell) 'rite IDtupUI th&ll ba. .. t~1 POWI' to boft'OV fIuId.a -=4 :0 !\u'::1ah :~oh col1.,.nl 01' oth.r lOoultr Ie it r:.:l1 .Llt .... -..!D.. l!ttOl'Q wine :a 7J.~l!c :Jell :! !.~. obl!l~:.1oftl in thl aAZklt. or co:rreno: ~J.' & !ta.,. P=-t"It th. Z:lhrt!'1:. :: • .1:':' t!."'Jt obtA.1A th. Ilpprotal ot tha, .. S';~. ?I.l'tr. lb. to~A1 COWlt ~t l'orrovJ:.., ::~ll b • .:li'PZ'Oftcl b7 til. Cowsoll \Spoil til. :tooma.nda.dcft ~t the ao ... m1IIc lol'.rl •

• (b) Sta.n. Pati .. U&l1 =kt ."ir, l'Iuenabll etfol'l to ,upport t\FP~lc:l.t!o~ ')1 -:h •• '.rprill for 10ClU ill .pUal. aazok.It. GIld. trOll iD'lmatlo:a&l. t1r.:uso1.1l !.'U t1~t101:8.

3. <a> ~ .tft'll%ill .bAl.. be pro',1404 vitll ttl f".m4a c.c •• ,u,· 0:0 .xw:tOr'l :n~ esplo!t on. ::dM I1te, &ad to tnItIP'l't, pz'CIo,,, 1114 ~, thl r:oo:eb :r_cov!u:a·l o;illl'.tros. nault D1ck.l, coppa!', cocal' ad aaztcU1'" _ to :lal' U. !:\1,i'-l ~da1DlurllU.,.. .zpauIO. 'lb. o:&oUnt ~t t!tl) .&14 (':13, ~~! ·"0 odtlzoic ~.l tac":'=:3 tor U. &clJu.1:UIit, .Ull" iDolwiocl lIT the P:-.par:at01'7 t'..u.doQ 10 o:h. 6r::.n :ul.o l Hl"bt1oas aDd r,Z'OCeduna ot ~, .luU'.oZ'1ty.

(t:) III S'o:Lt •• PazoUe •• holl =k. a~bble to tho EDtU"pZ'ia. !Ill JJ:tO'':''''lt !!lU:""/:ibet t~ ~CI halt Gt th. tIm:!c r.lurod. to 1A IUbpuoa;::a.pb (a) b)" V".1~' of :'on;-t.nl !:1tClI'I.t-tl'l' lomll 1D .accord.ano. '"Uh the .000I of U ... Cla.n,:. to'f the ::c.!t.d !l&ticu "!:Ill AS' W4pt 10 toree :o.t th. tU:e \GID thtI QODtdblatiol"JI :_ :,,~~J." ltjuned. -:0 ~ into 3OCO'JZlt th • .1""t .. '..tlioil an cot ::cbaro ot tilt Cn!,;e: ':;",UCM. :.::-:.1 1:ur~-r.cl \17 the !Dterp1'u, in I"win; to'!. ~1:hu holt ot the .t\mt4 .hli .. l ~ ;".:u=t •• 4 b)" all StAte' '~1 .. in aocoriano. with the .UtI .cal ••

PROPOSED AMENDMENTS

Article 10 AllocatIon of net income

1. Subject to paragraph 3, the Enterprise shall make payments to the Authority under Annex III, a~ticle 13 L; or their equivalen~.

2. The Director-General LAs8e~bll7 ahall, upon the recommendation of the GovernIng Board, determino what portion of the net income of the Enterprise remaininG after the paYjents called for in paragraph 1 are made shall e retain9d as ts reser·:es • ..,LThe remaInder sh.111 be transferred to the '\uthor i ty !.I

Article 11 FInance

Subparagraphs 1(aJ and (b) ror-ain as in L.78.

(c) amounts borrowed b~' t~e E!1ter?rise i:1 accord.1nc,! with tbo erovisi2,ns of paragr',ph 2 and article 11 (bist, E.Jragraph 1 L2 and !/J

Subparagrap~~ led) and (e) and paragraph 2 remain aa 1n L.7B

Dele~e para:raph 3J see 3rtic:e 1l(bLs).

Far~qraphs 4 and 5 remain as 1~ L.78.'

L.78 AS IT WOULD READ WITII US AMENDMENTS

Article 10 Alloc.tlon of n.t inco ..

1. SubJ.ct to p.r.or.pn 3, the Enterprtse ,h.ll ~eke p.y~nt. ~o the Authority under Anne. III, .rttel. 13.

2. The Dtr.ctor G.n.r.l .h.ll, upon the r.co ... nd.tton of the Gov.rnino Bq.ro, d.t.r.tne wh.t portion of th. nit incoae 0' t~. Ent.rprfs. ~I.atntno .ft.r Ihe plye.nt, c.ll,d for in p.r.gr.ph 1 ar •• ,de .h.Ll be r.tlfr.d I. ttl r.,.rvel.

3. )u~ino an tntttal per'od r.quir.d fo~ t'. Ent,rprise to b,co~e s.lf-Iupporttno, whtch sh.ll not •• c •• ~ 10 1.,r. frOM th, cocm.nc •• ent of tl. coftaerctll prod~ctien, the A.cesbly Ih,ll e.,~pt th, Ent,rprt.e fro. 1h. p.~.'nt. refer~ed to tn par.or.Dh 1, end shell lelv, .ll of the nit tnco~1 of the Ent.rprtse tn it. r •• ,rv •••

.rtte', 11 fi n• nc,

1. ,~, funds of the Ent.rpri ••• h.ll tnelud.:

~tth (·'i,mount. receiv.d fro. Ihe Authority In .ccord.nc. .rt cl. 17], p.rlgr.ph 2 (b), of p.rt XI of tht. Convention;

h (b) volunt.ry contrtbutlons .,de by St.te. Pertt,. to. t e purpo •• of ,tn.nctng Icttvit',. of the Enterpr',,;

(c) .-aunts borrow.d by th. Enterprt.e tn ,ccord,n" vtt~ th. provision, of p.r'gr,ph l .nd .rtfeL, '1(b's) p,_ gr.ph I; ,

Cd) tnco •• of th. Ente~prt •• throug, 't. oper.ttcnl; .nd

(" other fund •• ,d. aVltl.bl, to t" (nt.rpr'" to enlble tt to Clrry out ttl function. Ind to co ... nc. op.r.tlon. .s .oon •• po •• lbl ••

z. (,) The Enttrpr'" .h.ll h.v. the pov., to borrow fund •• nd to furnt.h luch coll.t.r.l or orh.r .ecurtty •• tl .ay d,ter.tne. a.for ••• kfn, • publtc •• ll of ttl ooltoetion. in the •• rk.t. or currency of the Stlt. P.rty, the r1t.rprise .h.ll "r.t obt.tn the ,pprovil of ch. St.t. P.rty. Th. t,t.l a.ount of borrowtng ,h.lt be approv.d by th. Counctl u~on the r.co •• end.tton of t~. Governtng Bo.rd.

(b) St.t •• P.rtt.s sh.ll •• k •• v.ry r".on.bl. ,"ort to support .ppl'c.tton by ch. Int.rpri •• for lo.n. tn Clplt.l .,rk't •• nd 'ro~ tnt.rn.tlonal ftn.nct.l fn.tftutton ••


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-TEXT OF L.78 PROPOSED AMENDMENTS

1. FINANCE:

Article ll(bl.s) Initlal operations

(a) The Enterprise aha:'l be prcvided --lith the funds ne::cssary to explore and u:<p:.c:.t the potl"fI"Jtallic nodules ~ithin one mine site, and to :r3nsport, pco:es9 and market the commodi~ies produced there:rom, ar.d to ~eet ita Inlt!~l administrative expenses. Tht! amount of thu said funds, and the criteria and factors Eor its adjustl,\ent, shall te included in the rules, reguldtic·ns and proced\lres of the Authority.

(b) rtll States Parties Sholll .,.aka a\'aUabla to the Enterprise an amount equi-/alen~ to cne half of the fur.ds referred to in sc.bpar3<]raph Ca', by '.;ay of long-term i:lterestfree losns in a:cordance \~ith ':',e scale ?f .ssseSSMent9 :roc the United ~:ati::":3 regula:- t'Jd'I I!': in f'Jcce at the time ",nen the contributions are mado, adj'Js-:ad tc take into ilCC·;,U:,\t tha Stl.tea 'oihich are :lot :r.e.mbers 'Ji the U:'.i':od Natior.s. J9Jt) incurred by the E:1terprise in :-olialng the other half of the funds shall be 1uaranteed by all States Pa:-ties in accordance with ~he same 8cale.

(c) In the even~ that the gum of the financiAl contributions at States Par~ieB ratifyln9 or acceding to ttta Convention is loss than -:he :unds to:· De provided tc the enterprise under subp!ra~raph (aJ, tho Asse~ly shall, at i-:8 ~trst meeting, examine the extent of -:he shor~fall ar.d, taHn~ ln~o account the obligation or S~ates Parties ur.dec sutpar~9raphs (a) and cb) and the recon~cndations of ~he ?reparatory Commission, adopt, by consensus, ~easures for dealing ~ith the shortfall.

(c t,.,,) Each State Party shall deposit with the Enterprisl:!l irrevocable non-nog,)tlab:e ~on-lnterest-bearin9 promissory notes in olccordance with tll3 following schedular

(!) '<lithin 60 ~a~'s of the ent.ry int~ force of this C·):,\':ent!on, or within lO dal'S aiter the date of ds?oait by the State Party of its instrument ot ratification or acce •• lo~, )0\ ot its ahare of interest-free loans, a.sessed in accordance with paragraph: (b) ,

(li) one year after the deposit re!er:ed to in subparagraph (d) (i), lOt of It. share of interest-free loans, asse •• ed in accordance with paragraph l!b),

(111' two years atter the deposit referred to 1n subparagraph (d) (i', 20' of its share of lnte:-est-tree loan., assessed in accordance with subpara9ra~h let"~

(lv) three years after the deFosit ref~rred to 1n subparagraph (d) (i), the remainder of its share of interest-tree loans, assessed in accordance with paragraph l(b).


1. "n,nc.

Articlt 11 (bi.) Inlttll optrltton.

(,) T~. Enttrpri •• s~all bt provld.d with t~. funds neces'ary to I.pl~r •• nd ,.plolt the polYllltlllle nodules v;thfn lne IIIln •• IU, .nd to tr,lnsDort, procell .nd lI.rktt the cOlllllodhfe. produe.d Ch.r.fro., .nd t~ •• tt It. 'n'tf.l adm'n'str.t'v, •• _ p.n.... Th •• .aunt of thl •• Id fund., and th, cr't.r' •• nd f,ctors 'or It. ,d'u.tn,nt., .hall b, Included in the rule. r.gul,tlon •• nd proc.dur •• of the Authority. '

i (b) All Stitt. P.rt' ••• htll ~'k. IVI'l.bl. to th, Ent.rpr s •• n .MOunt ,qulval.nt to on. h'lf of the fundS ~.f'rr'd to In .ubp.r.gr.ph (.) by WlY of long-t.r. tnt.r •• t-fr •• lo.ns !n :ecord.nc. with the .cal. of •••••••• nt. f)r Ih. ~nlt.d at on. r'gul,r bUdg.t fn ',rc. It the ti.e w,.n t~. eont-i-

but 'on •• r. lIad., adJustfd to Uk, Into .cco-mt th. SUt~. which ar. not ~e.ber. of the Unlt.d ~It'on.. O.bt. incurred b tn. :~!:r:;'!~l i;t~:!:I~:r:~:.O:h.r h'l~Aof the fund. sh.ll ~. gu.r.n-

n ICCOru.nc •• tth the ., ••• c.le.

of St!:' ~n t~ •• v.nt thu the lu •. ,of the "nlnchl contributions tl .rt ,. r.ttfffng or Ice.dlng to this Con~entfon 's

!:;:g:::~ :h: f~~d'A t~ b. provldld to the Ent,rpr's, undJr lubthe •• ttnt 'f' • •••• bly .h,ll, It ttl flr.t me.tlng, f.a.lne

o the shortf.ll ·nd, t.klng tnt) ,ccount tne oblfQft-tton of St.t •• Ptrtt •• ~nder .ubp.rlgrapht ,.) .nd (b) Ind the r.co ... nd.tion, of tn. Pr'PI,.tory (o.III"'on, .doDt, by con'.n.u., •• ,.ur •• for d.,lino with the .hortf.Ll.

(C'll) IICh St.t. P.rty .h.ll d.po.lt v't~ the Ent.rprl •• irrtvoc,bl. non-n.goCI.bl. non-Int.rt.t-btI,'n9 pro.l.ory not •• in .c;ordinci with the following .ch.dul ••

,t, wlthtn 6~ dly. of the .ntry into fore. of th'. Conv.ntton, or wtthtn 30 d.y, aft.r th' d.t. of depo.lt by th, Stat. '.rty of ttl tn.tru •• nt of r.ttftc.tton or Ic: ••• lon, 301 of ft •• h.r. c, 'nt,r •• t-fr •• lOin., , •••••• 1 tn accordanc. With ~.rlgr.ph 1 C~);

(fl) on. ,.,, tft.r the d.po.lt "f,rrld to In .ube.rlgr.oh Cd)et), lOI of Itt .har. of 1nt.r.at-fr •• loan., ••••••• d In .ccor~'nc. ~tth pl,.gr.ph 1(b';

Ct t u two 1 .. r. Ift.r the d.DO.1t ref.rred to In lubp.rtgrtDh (d)el), 201 o~ It •• hart of Int,r"e-fr •• lOin., ••••••• d In .ccordlnce .ith lubp.r.grlph 1(0);

ctv) thr •• y.,r. ,tt.r t~. d.po.tt r.f.r~'d to In lubpar,grlph Cd)"), the , ... Ind.r of ttl .h,r. of Int.r.lt-fr.e lOin. •• s •••• d in .ccordlnc. ~'th PI"gr.ph 1(b). '


~

TEXT OF L.78

L O,,--

ld}

"

PROPOSED AMENDMENTS

At the earliest practicable date after thia Convention enters lnto force and thereafter, at annual or other appropriate Intervals, the Go~ernln9 Board of tho Enterprise ahall prepare a schedule of the maqnitude and tlminq of it. requirement. for the !undlnq of it. admlni.trative .xpenae. and for carrylnq out activities under article 170 of Part XI of this Convention and Annex tV, article 12.

C4 .bia) The State. Partie. shall, thereupon, be notified by the Enterprise, through the A~thority, of their respective aharea of the funds in ac:ordanco with para9raph l(b), required for .uch expenses. The Enterprise .hall encash auch amount. of the promi •• ory note ••• may be required to meet the expenditure referred to in the achedule with ~e.pect to interest-free 10ana.

C4 ter) Stat.a Parti ••• hall, upon r.ceipt of auch notification, gake available their re.pective .hare. of 9uarantee. of debt of the Enterpri •• in accordance with paragraph l(b,.

,

(I) Upo, r'Quttt by tht Enttrprttt, I St.tt 'Irty .'Y provide • gu.r.nt •• cov.rtng debt' Iddttionel to thl • .aunt it ha. gu.r.ntttd in lecordinci .with or on tht bl.t. of tht Iltd sc.lt. In lieu of dlbt gu.rlntte, I Stitt Plrty .,y ~.ke • voluntary contribution to thl Enterprise in In laount 9quivllent of thlt Gortion of the debts which it would othervis. ~. ltable ~o gUlr.nt'l.

Cf) '!be l'Op8)ftnt of int.uest-beadnl) loans ahaU a..w. Fl"lori ty over the ~t of interest-free loans. 'She ftPIIYI'l'ent of interatfree loans shall be in aa::orda."lCe with • ac:hedule specified in tho N1ea, fe9\Wltlans and pttIC'l'dURS. Such rules, regulations and pmcedurea shAll take into aCCDUnt the paranount tqxlrtMca of ensuring the perfOrlMnCO of the lhterprise and in part..lcu1ar, ensuring ita f1Mnc1Al independellCO.

\4)

"

(4.bill'

C4 ter,


At the earliest practlcabl. date after this Convention entera into force and th.~eafter. at annual or othor appropriate Interval., the Go~.rnlnq Board of the Enterpri.e ahall prepare a schedule of the maqnltudo and tlminq 9f It. requirement. for the fundin9 of it. admlni.trative expense. and for c~rryln9 out actlvltl •• under article 170 of Part XI of thia Convention and Annex IV. article 12.

t The Stat •• Parti ••• hall. ~her.upon. be notified by the Enterprise, throu,h the A~thorlty. of their reapeclive ahare. of the fund. in ac:ordanc. with para9raph lCb,. ~equired for .uch .xp.n.... Th. Enterpri •• ahall enca.h .uch amounta of the prOQ1.aory note. a. aay be required to meet the expenditure referred to in the schedul. with re.pect to int.r •• t-free loan ••

State. Parti ••• hall, upo~ r.celpt of .uch notification, make available th.ir re.pective ahare. of 9uarant... of debt of the Enterprl •• in accordance with para9raph ICb,.

(e' upon requeat by the Enterpriae; a State Party may provide a guarantee covering debts additional to the amoun~ it has guaranteed in accordance with or on the baai. of the .ald scale. In lieu of debt 9uarant •• , a State Party may make a voluntary contribution to the Enterprise in an ameunt equivalent of that portion of the debts Which it would ot~erwise be liable to guarantee.

" (f, 'he ftPIIYIIW\t of inc:u.t-beed.., lDIM _11 have priority CNer the I'epia)'ment of intentst-fE'M loana. 'lhe ~t of interestfree loans thaU be In 8C:IOOnbnce with a lSChedule specified in the zulea, regulations ancl ps:ocedure.. Such wlea, h9Waticna and procedI..InaI shAll take into account the PU;GaCUnt IqIortanoa of _udnIJ the performance of tho lhterpdae IU1d ~ particular', ensuring ita fiMnclal lndependenco. . I

"


I' .• TEXT OF L.78 PROPOSED AMENDMENTS

(g) Funds made avai~able to the Enterprise shall be in freely usable currencies or currencies which are free11 available and effectively usable in the· :najor foreign e:cchange markE:ts. These currencies shall be defined in the rules, regulations and proced'Jres of the Authority in accordance with prevailing international monetary practice. ExCept as Frovided in article 6 (m) no State Partl' shall maint·lin ')r impose restrict:'ons on the holding, use or e;(chanc;e by tne Enterprise of these funds.

(h) A "debt guarantee" shall mean a promise 0: eac~ State Party to creditors of the Enterprise to pay, Erc rata in accordance with the appropriate scale, the financial obligations of the Enterprise covered by the 1uar3ntee followinq notice by the creditors to the State party of a default by the Enterprise. Procedurea for the payment of thoee obligation. ahall be in conformity with the rulea, regulations and procedure. of the Authority.

(i, The Enterprise shall notify the COlmcil of an imminent default in the repayment of intereat-beari~9 and interest-free loans in accordance with· paragraph l(f,. Default procedures, including provisions for recei'/ership, shall be included in the rules, regulations and procedures of the Authority.

2 _ TRANSFER OF TECHNOLOGY,

It ia the policy of the Authority to ensure that the Enterprise is able to become a viable commercial er.tity and to engage successfully in thel operations referred to in article 170, paragraph 1 at the earliest possj.ble date. To this end, States Parties which en9age in actJvities in the Area, of which sponsor an entity referred to in art1cle 133, paragraph 2(b' which engAges in activities in the ~rea in accordance with Part XI-, shall convene a committee comprisinC} all such States which shall have the responsibility, in cooperation with and at the request of the Enterprise, to facilitate the ac~uisition by the Enterpriso of appropriate technology neceSS.li:y to COT:\:nence at the earliest: -:-ossible date tl~e reco"er· ... ~n~ ,:oc095in9 of minerals derived from the Area pursuant to· par3·~raph 1Ia). Such assistan~e ahall include I

(a) identification of potential developer. and supplier. of such technology,

* The contemplated PIP article will contain a provi.ion req~iring preparations to meet thi. obligation to commence a. soon as t~o Convention enter. into force.


(g) Fundi ~.de .vltl.bl. to the lnt.rpr41' Ih.ll be In frl.ly uI.ble currenct •• or curt.ncte. which .r. fr.ely .v.ll.bl •• nd effectively usabll tn the •• Jor for.lgn I.ch.ng, .,rk.t,. The •• curr.ncl., ,h.ll d. d.fln.d In the rule., ~tg~lat10ns .nd ptectdure. of thl Authority In I~cordanc. with prlvl;ltng tnt.rnltton.l IOntt.ry practlc.. except I. provided In .rttcll 6 e.) no Statt P,rty ,h.ll •• Int.In or '~o'e r •• -tr~cttonl on thl holdIng, u.e or .Ich.ng. by the Ent.rpri,e o~ th ... funds.

(h) A "d.bt ....... nU ... Ihlll .. ,n I pro.h. of tlch Stlre P,rty to creditor. of the Ent.rprl., to p.y, pro rlt., in .ccord'nci with tht IPproprllt. ,cllt, the fln.~ct.l obllgatonl of the Ent.rprlse cov.red by the gUlr.nt.e following nottc. by the cr.dltor, to the St.t. p.rty of • d,flult of the Ent.rprt.,. Procedur •• for the p.y •• nt of tho •• obltgatlonl .h.ll be In confor~Itr Nlth the rulel, r.gulltlon. and proc.dur •• of the Authority.

'I' The Enterprise Ih.~l nottf, the Counctl of .n i •• tnent default tn t,e rlply~.nt of 'nt.r •• t-b.,rtng .nd tnt.r.'t-free lOin. In Icc,rd.nc. wtth par.gr.ph 1 Cf'. D.f.ult p'ocedu~e. including pr~vt'tonl for r.cttv.rlhlp, .hall be Includ.d In the rult., regulation •• nd procedur •• of the Authority_

2. '-.n.f., of 'echnologYI

:t I. the poltcy of the Authortty to tn.ure that the Enterpri.e t •• bll to b,co.e • vl.bl. co ... rctal .nttty .nd to eng.ge succ ••• fully In the op.r.tlon. r.f.rr.d to In .rtlcle 170, p.ragr.ph 1 .t the •• rli •• t po.,tbl. d.t.. To tht •• nd, St.t •• P.rtt,. vhtch .nO'g. tn .cttvttt •• In the Ar •• , Ot vhlch ,pon.or .n entity r.fer~ed to tn .rttcl. 153, par'gr'pn Z(b) which .ng.ge. tn .cttvttle, In the Are. tn .ccord.nee with p.ft 11* 'hill convene • c~ltte. ca-prlling .ll .uch St.t •• whtch .h:ll hive the respon.lbillty, In coop.rltlon with .nd .t the r.qu.,t of the Ent.rprl •• , to f,e1llt.te the .cauI.ltlon by the Ent.rprll' of approprl.te technology nece •• ,y to co .. enc. It the ,.rlte.t pOI.lbl. dltt the r.cov.ry .nd proce •• tng of .Iner.l. dertv.d froe the Ar •• pur,u,ht to p.rlgraph 1 (.). Such '1It.t.nc. shill Include.

(a) Identlfic.tlon of potential d.vtlop,r. and luppll.rl 0' .uch t,chnology;

.The cont.~lated PIP art tel. wtll cont,In • provl.lon requiring prfP,r.tlon. to -eet thl, o~ltg.tton to ca..ence .1 lOon II the C~nv1ntlon .nter. I~to fore ••


TEXT OF L.78 PROPOSED AMENDMENTS

(b) da'/elopment of .sn e):ploratory plan for the sell!co:eJ site based on available prospectin1 data, that will =o~Flre the ~conomic trade-otfa between various ~ethods snd technol09 ie&, considerinq the unique tOFo~r~ph1 ot ~he 'site a~d ~ining equipment being considered:

(c' conduct a technical and eccn~rnlC anal19is ot competing desiqns of seabed minin~ equipment suitable :or the selected site,

(d) conduct ot an analysis of estimated co,ts a8~ociated with the ~rocurement of equioment evaluated in (c), with specific imphasis on a~ eX3D:na:ion of the feasibility 5nd desirability of the utlli~a~icn of developinq Sta~e s~pplier~ for such proc~rement,

(e) conduct of ~n analysIs of the competing minersl processing technoloqies;

(t~ conduct of an analysia of the feasible alternatives for the location ot minerals processing, including trL~sportation distances and sy.tems, the availability of additlonsl materials and energy nece.sary for procossing, transportstion infrastructures tor shipment of processed products to various markets, feasibility and costs of various waste disposal procedures, availability of required labor ~orce, and examination of economic and other incentives that may be available from host govern~ents,

(9) conduct ot a market analysis, which would also provide production and davelcpment .trateqies ba.ed upon a range of demand qrowth a8aumptiona tor the proceased minerals;

(hi making available indapendent advice and evaluation of the :erms and conditions u?on which such technology is offered I

(1: ad.,:'ce to the E:1terprise, in the course ot its negotiations with potential suppliers ot technology, concern"inq methods by Which the Enterprise can obtain this technology on the commercial terms and conditions most favorabll! to the Enterprisel and

(k) making available to the EnterDrise,expercs in the fields related to the fulfillment of this obligation and in such other areas as are requested by the F.nterprise.

3. In 4ddi~io~, States P~rties re~erred to in paragraph 2 Shall take appropriate ~easureS' conaiatent with national law, to prevent peraona subject to their juriadiction from engaginq in a concerted retusal to supply technoloqy to the Enterprise on commercial terms and conditions.

4. The StAtes Partias referred to in para9raph 2 sh~ll take, on a coat reimburaable basis, the same measures as those prescribed in paragraphs 2 and l tor the beneti: o~ a developin; State or qroup of developin; States which ~~S ~pplied tor D contrac; pursuant to Annex III, ar:icle 9, provided that these measures shall relate solely to activities in the Area and that :10 StAte may receive the benefit of ~ha m~asures in parAqraph 2 \#ith respect to more '!han one mine site, or for more than 15 years after the entry into force of this Convention.

---.=;--


(b) dlv.lop •• nt o'·.n •• plor.tory pl.n "or the Illlcced Ittl, bl'ld on .v.llabll pro'Plettng dlt., th.t vlll co_p.r. the .cono.le trldl-of,. b.tw.ln v.riou. pro'Plcttng .Ithods Ind 'lc,"olo;ll., con.ldlrlng the unlQu, top~grlph1 of thl .tc • • ~d Alntng equip.lnt bllng con.ldlrld;

(c) conduct of • t.chntc.\ Ind .conoalc .n.lYlt. of co.plttn~ QI.~gn. of I •• bld .tnlng Iqutp,.nt lutt.bll for the I,Llctld Ittl;

(d) conduct of In .n.ly.i. 01 l.tl.I,.d CO.tl I •• oct.,ed vtth the procur •• ent of Iqulp.,nt •• v.lu.t.d fn (c), vith IP.ctftc I.phllt. on .n •••• tn.tton 01 the f"ltbtllty .nd dl.lr.btllty of thl utlllz.Cton of dlv.loPlng StIC. luppLI.r. for luch procur'.lnt.

C.) conduce of .n .n.ly.h of--the cQIIP.Ung .In.,.L procelling t.chnologl •• ;

(f, conduct of .n .n.Ly." of Ch. f ••• lbL •• ll.rn.tlvl' for loc.tlon of .In.r.L. proc"ltng, Including er.n.portlclon dlltanc •• .nd Iy.t ••• ; che .v.tL.blllt" of addltlon.L •• t.rlaLI Ind .n.rgy n.c •••• ry for proc ••• tng; tran.port.tlon Infr •• tructur •• for Ihlp.,nt of proc •••• d product. to v.rloul .. rkltl, f •• llbtltt" .n~ co.t. of v.rloul vI.te dl.po.al procedur •• , Iv.tLlblllty of -equtr.d L.bor fore.; Ind ,.,.in,tton of Icono.te Ind other tn;.~tlv'l thlt .IY b. Iv.tLlbLI fra. hOlt govlrn •• nt.,

Cg) conduct of I .Irk.t anllytll, which vouLd .lto provtd. productIon and d.v.lop •• nt Icrat.gtol bl •• d upon I ring. of d.g.nd gro~tft •• Iu.ptton. for ChI proc •••• d .tn.raLI,

(h) ••• tng .~.tlabL. tnd.p.nd.nt .dvlcI and .v.lu.ct~ of Chi t.r ••• nd condltton. upon whtch .uch tlchnolog, tl off.r.d,

(I' .d~tc. to the Intlrprtl', In the cour •• of ttl n.gotilttonl vtth pot.ntl.l luppll.r. of t.chnology, concerntng •• thod. by ~ftteh the Ent.rprll. e.n obt.ln thl. t.chnology on the co ... rcl.l t.r.t Ind condltionl .alt f.vor.bL. co the EnUrpr"" ,nd

(k) .Iklng aVltLabll to the Int.rprlt., .apertl In the ft.Ld. r.lat.d to the fulfILl •• nt of thtl obllg.tlon and In luch oth.r .r ••. a • • r. reque.t.d by the Ent.rprll ••

3. In Iddttton, St.t •• P,rtl •• r.f.rr.d to In p.rlgr.oh Z .h.LL t.k. I~proprl.te .... ur •• , COntllt.nt with n.clonlL LIV, to pr.v,nt perlon •• ubJ.ct to th.tr Jurl.dlctton fro •• ng.glng In • conc.rt.d r.fu •• l to luppLy t.chnoLog, to the Ent.rpr ••• on coa •• rctIL t.r.1 Ind condlCtonl.

4. Th. St.t •• P.rtt •• r.f.rr.d to tn p.r.gr.ph Z Ih.ll, on I COlt r.lmburlabL. ba.t., t.k. the ........ ur •• II Cho •• pr.-.crlb.d In paragr.ph. lind 3 for thl bln.ftt of I d.v.lQplng St.c. or group of d.v.LQplng St.t •• vhlch h •• IPPLt.d for. contr.ct purlu.nt to Ann •• Ill, .rtlcl. 9, provld.d Ch.t Ch ••••••• ur •• Ih.LL r.L.t •• 0l.L, to Ictlvltl.1 tn the Ar •• .nd Ch.t no Stlt •• IY r.c.tvI the bln.fit of the •••• ur •• In parlgraph 2 vtth re,p.ct to -ar. than on •• tn •• tt., or fOf .~r. th.n 15 ,.a"l .fc ... the .ntry Into forc. of thl. Conv.nelon.

.'.

•• __ • \ I.

,I University of Hawaii School of Law Library - Jon Van Dyke Archives Collection

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TEXT OF L.78

An1ol. U IJ-ptKA!

1. Th. En'tI'PI'u, .ball prope •• to w CGWloil PI'03tot. tor c~ aut 1Ou'~Ut. iA acooria.ac. vitI! Q't1ol. lil of Pan Xl ot UsJ;t ComIDUo". 81.1= PI'OPO'w IhaU iDol""', a t~::v.:. wutu ,1M of VOI'k ter MU 1'1 UI. 1D til. i.na 1A acooriG:20. with uUo1e 1", pc:.z':.p'GVo 5, 0: ita" :(1 of ~ l!onvlnu'oD, ad ::all .uob othtl' 1Dtomatiol1 an4 tAtA AI ~ b. n~4 tr= ,:J:l. w t~ tCI' 1 ~ GW1'~1nl ~ the ':tchn1o~ Coca1l.1on ltd r.~PI'Ova1 b, the COWlo1;'.

2. UPOD IlpprowJ. b, the 'CouItoll, tht btor,l'.t ••• h&U ,xeo1:.h ":hI .rzo3tot on the buu ,~c tile tonal Vrittcn p1z ot -.,me nt .. naG to ill pantC:'&pb 1.

,. <a) 70 t..,;. txttrl~ tao .. t the EDtt~1u SHI =t ~t M1 tu. ;0 ••••• tht coot1J .mil .,"10" nqqUt4 to%' it. optI'GUOI'.I, U =:t pocrJH azd o1:::iIlo, th.ca. J.I:ooq'~n' of 10041 end 'U"ItOt. I'tICldn4 ~, tht ~':ft'P"u, Ihall be .f:.ot.4 by thct awn ot oor-mots, b .. ,4 on n,ponD. '0 !,;lvUa'1oru to tender, '0 b1d.c.'1'1 otttri:la the be.t oOl:b1AaUon ot ClI,aalUr. pr..o. anA ::G.t f:,vca&I'at1. ul1'/u7 t;lel.

(b) It then 1.1 DOft thaD ODe '14 ott.r1r~ aueb a ocab1='=, the contnot IhA11 bt GwaU4 b aooori=oe v1tb the to:J.ovUal ' ,

(1) the priD,tpl. ot IICD-4Uorim1cat!.on OD tbe h.u ot po1Lt1o~ or othtr oODll4tratioDl not I'tIl'WDt to ~. oonr.nc OI&t of cptr"Uona vUh clu. 4il.1IInot M4 .tt101tI101. , •

(1:.) &UUeUaa. Gppz'O," b7 the ':cu:cJl with I'tpri to ttt pnl.reAocl ~o be acool'!e4 ~o coo4t ~ .Intee. ~l"1c!D&t1ll; !D, thl 4tvllopi:lc Stat ••• iIZo1uUnr ~I Iml-loclct4 or otbnvu. posnpbloall7 tiaabant;ace! emGDC tUc.

(0) '1he Oov.m!n. Dolri aa, .pt r.ale. 4ttua1DLq thl .peela:' Oircumatancl' ill vb1e1l Us. l'tIq\lu.~.n' oC 1n"l1tr.~lor.B ~: 1:114 ~ in thl ~ .. t !nlUIot. or the EnCIJ'FUI be 4!t,.a.cl vUIl.

4. 'l'he ktup!.a. lball ~ .. _ o;U:'. to all DiDera.t. CU14 pno .... 4 .ubtt~ .. ~ot41:1, U. , .

5. !to •• ~.rpr1D. siuLll ,.11 U. procluoQ Oil' ~ r.on-cU.loI'1:rWIa~0l'1 b~.u. It .ball Dot eLv. aoD-coa:r:eroiAl. Uloount ••

E. V1Us0l&1 PI'tIJw1iCI to Irq ;anlrAl er .plo1&1 POWI' coalll'1't4 OD the Ent'rp'UI ~.~ =r oml" prov1abn ct 1:h1I C~"'DUOD, t.~. Iat'rnt4. :sJuI:l aDroit. nell ,lown inoUtDtd. to ita tu.!ulll u shall be DlO ••• UT.

7. ~. Intll'pd ... 'hAll :lO' tAt.rCo:,. tA the poU.Uo~ ACtdn ot 1A1 =-ablr, nor shAlL 1t bt !ntlue:o.a.11 !D La 4.ddOftll b7 ~. pollUtt:a.l abU'ootel' ot tho :aat.1' =- =-1:11" clMlt..,.4. 0Dl7 OCCIDII'01Gl. oou144n,:.oaa ,bAU be l'tllwnt ~ U. lleoLaiou, a:4 thl.' OCUi4cCLUOU ahall b. ~1cht4 UlpDzi1G.1l7 iD orin to OQft'7 "", tb parpo.l •• ,loUi.4 in ~Uol. 1. .

PROPOSED-AMENDMENTS

Article 12 operations

1. rhe Enterprise Jhall propose/to the Council projec~s ~or carryinq ~ut activities in accordance-~l:~ project' for carr"ir.g out: the functions conferro!c. u~on it DY lr-;i'Jle 170, e!£.~qraEn !.t. of Partn-;:'l thIs Con",n:nt on. /Su(:r . .lr,posclls- --shalT include !l Pro 05a13 for Rctl-vitles· in Ehe Ar·n Inall be submitted as forma wr t~en p anI 0 wor .or a~t VLtri. In the Area In accordance with article 153, paragraph 3, cf Part XI of this Convention, and all other such information and data BS may be required frem time to time for its a~raiBal by the Technical Comm~slion and approval by the Council, and shall be Blproved in clccord~nce with Annex III and artr=le-I6S. Proposals or all other proJects shall be submItted to the , Council, ~ogether with all relevant information and data, for approval in accordance with article 162. paragraph 2(1'.

2. delete the existing text and =eplace w~th

(3: The Enterprise shall execute plans of work up~n their approval by :he Technical Subcc~mission.

(b) The Enterprise shall carry out any other projects proposed in acc~rdance with paragraph 1 upon their approval by the Council.

Delete paragraph ~

Renumbered paragraphs 4, 5 and 6 remain as in L.78.


Articl. 12 Bp.recton.

1. Th. Ent.rpr; ••• h.ll propo.t prol.ct. for c.rr,tng out th, function. conf.rrtd upon It b, .rtlclt 170, p.r'9r,ph 1, of "rt XI of thl' Conv.ntlon. Prooo •• l. for Ictlvlt~ •• In the Ar., .h.ll bt .ub~ltttd ., for.,l written pl'n. of Nark .nd .h.ll ~ •• pproVld In Iccord.nc. gtth Ann •• 111 Ind .rtlcl. 165. Prooo.,l. for all oth.r proJ.ct •• hlll b •• ub.ttt.d to the Council, to;.th.r with .ll rll.v.nt tn'or •• tton .nd d.t., for .pprovil In .ccordlnc. with .rtlcl. 162, par.gr.ph 2 (I'.

2. (I) Th. Enterprl.e .hlll e.ecut. pl.n. 0' work upon th.lr '.pprov.l b, t~. T.chntCll Subco .. t •• ton.

(b) Th. Ent.rpr'" .h.ll e.rry out Iny other project. propo •• d In .ccord.nc. ~Ith p.r'er.ph 1 upon th.lr IPprovll by the Council.

3. (.) To the e.t.nt th,e the !nt.rprt., doe. not .t In, t'.e po ••••• the good, Ind •• rylc •• r.qu'rtd for It. op.rltton., .t .a, procu~ •• nd .~lo, th... Procur, •• nt of good. Ind •• rv'c •• requ'rtd by the Enttrpr' •• 'hill be tff.ct.d by the .vlrd of coner.ct., bl.ed on rt.pon •• to tnvitltlon. to t.nder, to bidder. off.rlng the b •• t co.bln.t'on of QUlltt, prlc •• nd .a.t '.vor.ble d.llvtry tt... '

(b) If th.r. I •• 01" th.n on. bid ~ff.rtng .uch I comblnltlon, the contrlet ,h.ll b. aw.rdtd In .ecord.nc. with ~h. f:.llowingl

(" th' prlnclpl. of non-df.crl.fn.tton on th. b •• t. of polteicil or oth.r conlld.rltton. not rel.v.nc to the elrr,lng out of op.rat'on. w'th due dtll;.nci .nd tlft,citnc),;

(It) gutd.lln •• ,pprov.d by th. Council wfth r.gard to the prtference. to b. aecord.d to good. and •• rvtct. orfgln.ting tn the d.v.loplng St.t •• , Includ'ng tht llnd-lock.d or oth.rvt •• a.ogrlphtc.ll, dl •• dvant.g.d ..ong th •••

(c) Th. Gov.rnln9 Board ft., Idopt rul •• dtt.r.tnlng th, 'Plctal clrcua.t.nc •• In ~htch the reQulre •• nt 0' tnvtt.tlon. to bid .a, In the b.,t Int.r •• t. of the Int.rpri •• be d'ID.nl.d with.

s. Without pr'Judtce to .ny g.ner.l or .p.clll powlr conf.rrtd on the Ent.rprl.t und.r .n, oth.r provtelon of tht. Convtntlon, the Ent.rprt.t .h.ll ••• ref.1 .uch pow.r. Incldenul to .ttl bu. tn ...... h.ll"be n.c .... r'.

: Th. !nt.rprl.1 .h,ll not Int.rf.r, In the pOlltlc.l ,'f.lr. of In, •• ~r; nor .hlll It be Infl~.nc.d tn It, dlcflfonl b, th, pollt'c.l ehlrlet.r of the •• ablr or .I~.rl conc.rn.d. Only com.trc',l con.fd.r.e'on •• h.ll b. rtt.v.ne to It. d.cl,'on., .nd th, •• con.ld.r.tlon •• h.tl b. w.tghtd t~.rttlll, In ord.r to c.rr, out the p~rpo •••• p.ctfl.d tn arttcl, 1.


TEXT OF L.78

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:!. :-:~. 'Zr.':lr,:'1J1 ai::':': '::"? J-':C:: ~~\::.!. =~~~:~:;",:.' :: :1tt:e:ac.:: !~r.i~~ _ ;..r!o:=cr.:, 3~'1~~ :· .. I·C~~::G :::1 ~!.Q f •• ! • ..:.'::"; •.. J ••• ., .. 30:1 u;-. 1:. f·~· .Jlt:, ~~~Q ,,:.V-:! ~:.;

'.:.i ~~ ~ul.ar l::t; ::::,:':-..c~:. !,,:.::: :"'~:':'io.:.a.~~:. O~ dtl':.::- :1..-:-:...., .. ~en~J, !::cl ... k~ :..-=-".:w.-:.o ':~e:.' 3t"a: ::.:. ;.r.o;.l~l',l,::.d or~:.r.1:~:1onr:

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(ei ~ be :. '~~I ~., .... ,:.. ~,:,:c •• U'-4' 1:1 itl :ur. ::=.0.

'0 ,.c~1."r..a:::.1 b t"J;::~ ~:\!IU~ ~: •• !~~ .. :':;~!.So :::1;" in ~ co:1I''; !: c~rt.:1t ".&:'lo4ioUor. U ~~. ~4::,Hu1cft ot :. :~oc~.:" !r, ~n'.1::. tl~. ;:.r.';lrrrl~' RA.1 - ~'._c •. hu ap~1:1,;.t! :r. ~,:,.,: :',:, c~. ;~=i~'" 'J;'" ... ::IFtir.:: J1:-/~':' :~ _~ ;1:. !t. ,.-o~~.!:.~ .. .. M.r4" ~u .J, CCQtrACo; !):" ;30,u )1' .: .. =':10.', ;.: .. h.~~~ IO':1:_!_!. ~ •• :.a "...... • QI1.i~ .. d !r. c:lr::u:1:.l i:.':1't1':;·. ~I r-",;er~=r, :I:.~ ,l.S:uc ot ':h. 6fI.~rlIr.n, • 'm"'tle""- :c:U.1 '\:'.;\ ..... , ',hl::"J:"Q·,.:- .\lU. ,Jr.:!!. ,. !:a:nl £':'om u .. tor:u ~l "1~-:' ~~-:":::OI'.:,1' ,xocutlon • .::::. ~. ~·;:..! .. :n·1 o! t!;\.;! j'':'~ln ll.;ci:' .. t ~1I :':~'~' 0

• (Co' ..... -n· u·" .. ~ •. .,.e:. )! chi ~ ':t:'i=lu, ·.,;:,.,...,50.,,"1' bc:ud .lAo!. bl • . '., -',Jn~1"'" ,".-=~ ,,-,- ·o:U'''c:.U).,:, IJ:pl'Opl'i:.ci:Sr., :"eq:d..iUo:., =4

~~o",.r Ill_.. -' - •• - , , :- 1 • ,." ~.lon 1:::' ,,:l~o: !:ll.'r. ,C :'11:';,a .~' ~~,c'~':1'" :1' .ft:; 1 ••••• N • •

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PROPOSED AMENDMENTS

Article 13 Legal status, ImmunItIes and privileges

paragraphs land 2 remain as in L.78.

3. Actions may be b~ou9ht against the Enterprise only in a ccurt of competent jurisdiction in the territories of a member in which the Enterprise has an office, has appointed an agent for the purpose of accepting service or notice of proces.. haa entered int,o a contract fe·r goo". or services. haa ia.ued·securities or is otherwise engaged in commercial activity. LThe pr~perty ~nc ssseta of the En~erpriae, wheresoever locatc~ and by whorrsoeve~ held, shall be immune from all form. of seizure, att~chmen~ or execution before the delivery of final judgment against the Enterprise~

40 LTs: The property and Asaets of the Enterprise, wh~re,oever loc~ted and by whomsoever held, shall be free ~~~~ r9strl:~io~s, requ~Hitlon, and any other f~rm of seizura b~' exe::ut1vE -,r le9islatJ.ve action:]

SubparAgraphs 4~b)-(e) and paraqraphs S-i remain as in L o i9.

": '\'\ L.78 .AS IT WOULD READ ,.

WITH US AMENDMENTS

Arttel. 13 L.gIl .t.tu., t-.un1ti ••• nd privil.G.'

1. To .n.bl. the Ent.rpri •• to p.rfor. it. functtOns, the .t.tu., t.nuniti ••• nd privil.g •• s.t forth h.retn shall b •• ecord.d to the Ent.rprh. in th, t.rritori •• of SUtt.1 P.rtfe •• To iiv •• ff.ct to this principl. the Enttrpris',and St.t .. Plrtt.s .", .,h.r, n.c ...... )', .nt ... Into IP.cbl .. .gr •••• nte.

·2. Th. Ent.rprt •• ,h.ll hlv •• uch ltgll cIP.city .1 t, n.c •••• rY tor the p.rfor •• nc. of it. functions and the \ fulfill •• nt of ttl purpo ••• Ind, in ~.rt'eul.r, the clDacity~

C.) to .nt ... into contr.cta, Jotnt .rr.ng ... nt., or oth.r .rr.ng ... nt., including .gr •••• nt' with St.t.s .nd tnt.rn.ttonal org.nll.tion"

Cb) to .eQuir., l •••• , hold Ind di.pos. of iemov.bl. .nd .ov.bl. prop.rtYI

Ce) to b •• p.rty to ltgll proc •• d'ngs In itt own n.~e.

3. Action ... y b. brought .gatn.t the Ent.rprl •• ~nly In I court of co~.t.nt Jurisdtction In the t.rritori •• of • •• mber in Which the Ent.rpril. h ••• n offic., hi. appoint.d an .gtnt fo .. the purpo •• of .cc.pttng •• rvtc. or notie. of proc.s.~ h., .nt.r.d Into I contr.ct for good. or .... vic •• , ha. f,.u.d s.curiti.s or fs oth.rwis •• ng.gld in coa.erci.l .ctivity.

4 (b) Th. Ent.rprl ••• nd fts .DOlor •• , .h.ll r •• ptct Local L.w, .nd r.gul.tlon. In .ny Stat. or t.rritory in whtch

\ .;

" " '\

the Ent.rpri •• or ttl .~lo)' ••••• y do busln ••• or oth.rwls •• ct.

Ce) Itlt.t '.rti., .hall ,ssur. thlt the Ent.rprls. .njo),s .ll right., t..unitt ••• nd privil.g.s .fford.d by Stlt •• to .ntitt •• conducttng bUltn ••• wtthin .uch St.t ••• Th ••• rtght., i.auntttt •• nd prtvil.g ••• h.ll b. ,fford.d the Enttrp .. f •• on no l ••• f.vor.bl. , b •• t, th.n .fforded by St.t •• to .t.il.rl, .ngag.d co ... rci.l .ntitt... Wh.r. IP.ci.l prtvil.g •• Ir. provided by It.e •• for dtv.Loplng St.tt. or thltr caa..rcf.l .ntitl •• , Ch. Ent.rpri ••• h.ll .njoy .ueh privil.g •• on I .t.flarly pr.f.rentt.l b •• I ••

t.) St.t •• e.y provide ,p.el.l tnc.ntiv •• , right., privil."s .nd i..unttt •• to the Int.rprl •• without the obltg.tlon to provide such tne.nttv •• , "ights, prtvll.g.s, or iaaunict •• co other co ... rcl.l Inc'tt.l.

5. Th. Ent.rprt •• sh.ll nlgott.t. with the ho.t countri •• In which tC. offlc" and f.eilitl •• Ir. loc.t.d for .xe~tton from dtr.ct and indtr.ct t •• atton.

6. Each •• ab.r .h.ll tlk •• uch Ictton •• t. n.c •••• r' for the purpo •• of •• ktng .ff.cttv. tn tlr •• of ttl own l.w the princtpl •••• t forth h.r.tn In t~i. Ann ••• nd .h.ll Infor_ the Ent.rpr'" of the d.tlil.d .etion which it h •• t.k.n.

7. Th. Int.rpri •• tn 4t. oiler.tton ." w.lv. Iny of the prlvil.g •• and i.suntti •• conf.rr.d under thl. Irttcl. or tn the sp.ciel .gr •••• nt r.f.rr.d to In p.r.gr.ph 1 to .uch .at.nt .nd upon .uch conditions •• tt •• y d.t.r.int.


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