unitex@rubbs.fidonet.org (unitex) (09/03/89)
SPECIAL COMMISSION ON SEA-BED MINING ENTERPRISE
COMPLETES FIRST READING OF PAPER ON STRUCTURE AND ORGANIZATION
The Special Commission on the Enterprise -- the mining arm of the
International Sea-Bed Authority -- yesterday afternoon completed its first
reading of a Secretariat working paper on the structure and organization of
the Enterprise, dwelling in particular on finances, settlement of disputes,
liability, and privileges and immunities.
The Commission, also known as Special Commission 2, is charged with
preparing for the operation of the Enterprise.
At yesterday's meeting, the Commission gave provisional approval to
articles 28 through 43 of its working paper.
Articles 28 through 30 conclude the section on "Finances", and deal with
financing of the first mine site and initial administrative expenses; funds,
assets and expenses; and an annual audit.
Articles 31 and 32, on "Settlement of disputes" deal with jurisdiction;
and interpretation or application of a contract.
Articles 33 and 34, on "Liability", deal with liability; and limitation
of liability of the members of the Authority.
Articles 35 through 40, on "Privileges and immunities", deal with the
position of the Enterprise with regard to judicial process; immunity of
property and assets; exemption from restrictions, regulations, controls and
moratoria; respect for local laws and regulations; rights, privileges and
immunities; and special incentives.
Concluding the working paper, articles 41 through 43 deal with tax
status; waiver; and procurement.
The Chairman, LENNOX BALLAH (Trinidad and Tobago) said Special
Commission 2 was to complete its work for this session at its next meeting.
At that time, he would highlight some of the Commission's achievements,
reflecting as accurately as possible what transpired during this session.
When the Commission next meets, at 10 a.m. today, it will take up the
subject of exploration, and attempt to come up with appropriate
recommendations. It is then expected to determine the programme of work for
its next session.
In opening yesterday's meeting, the CHAIRMAN, said that, at its last
meeting, following the adoption of the draft principles, policies, guidelines
and procedures for a Preparatory Commission training programme (document
LOS/PCN/SCN.2/L.6), he had arranged for its presentation before a meeting of
the plenary. That would probably take place on Thursday morning, 31 August.
At yesterday's meeting, he intended that the Commission should complete its
first reading of the working paper on the provisions of the Convention
relating to the structure and organization of the Enterprise.
The Commission began by resuming its consideration of article 28.
Article 28
Article 28 deals with financing of the first mine site and initial
administrative expenses. (For summary of the contents of article 28, see
Press Release SEA/1072 of 25 August 1989.)
The CHAIRMAN said that at the last meeting, there had been some
discussion on paragraph 1 of article 28, under which the Enterprise would be
provided with the funds necessary to explore and exploit one mine site, and to
meet its initial expenses. India had made a proposal to "disaggregate" the
funding of the project from funding for initial expenses. Under that
proposal, some moneys would be paid up early, while other moneys would be paid
by a "call up", on an "as needed" basis. That proposal would not result in a
rewording of the paragraph, but an interpretative annotation would be added.
The representative of India said the matter should be looked at from a
practical point of view, by which funds would be requested as the need arose.
The Commission agreed to explore the matter further.
Article 29
Article 29 would provide for the funds, assets and expenses of the
Enterprise to be kept separate from those of the Authority. It would not
prevent the Enterprise from making arrangements with the Authority regarding
facilities, personnel and services and arrangements for reimbursement of
administrative expenses paid by either on behalf of the other.
Article 30
Article 30 would provide that the records, books and accounts of the
Enterprise, including its financial statements, would be audited annually by
an independent auditor appointed by the Council.
The representative of Senegal proposed stating that the records, books
and accounts of the Enterprise should not only be audited but also certified.
The representative of Pakistan said there were two purposes of an audit:
to add up the figures and see that they were correct; and to check the
procedures and system followed. The auditors then had the authority to
suggest modifications in the system being followed. Certification required
the auditors to say that the accounts were checked by them and found to be
correct in every respect. Therefore, objections raised by the auditors had to
be satisfied directly by the Enterprise. Those which the Enterprise could not
* Origin: UNITEX --> Toward a United Species (1:107/501)
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