unitex@rubbs.fidonet.org (unitex) (08/24/89)
member States had fundamental difficulties with the concept of production
limitation. They did not believe that it would benefit consumer countries,
the majority of which were developing countries. It was in the interest of
consumers to welcome the development of diversified production and to
encourage investment in sea-bed mining so that new processes could, where
appropriate, supersede old ones. Mining companies should be in a position to
mine when they judged that to be economically viable. The Community members
hoped that the issue of production limitation could be looked at again to
arrive at solutions acceptable to both producers and consumers.
The representative of Italy said there were doubts about the concept of
production limitation. The methodology used in devising the production
formula was too elementary and unreliable. His delegation had fundamental
difficulties with it.
The representative of Japan associated himself with the view of Italy and
added that production limitation would not benefit consumers which also
included developing countries. Large investments were required in deep
sea-bed mining and such limitations could discourage potential investors. It
would not be a workable system and it was also contrary to the lofty purposes
of the Law of the Sea Convention.
The representative of the Soviet Union said the production formula in the
Secretariat working paper contradicted the objective of the Convention. Many
States would suffer difficulties from its application and it could discourage
some from becoming a party to the Convention. Potential investors might not
be attracted because of the proposed formula. The issue should be looked at
again. The formula and production authorization could create serious problems
and efforts should be made to eliminate the contradictions they entailed.
The representative of Sweden associated himself with the statements of
the European Economic Community (EEC) and Japan. He supported production
limitation of a different kind, related to the environment.
The representative of Nigeria said operators in the sea-bed Area should
be penalized by their production authorization being withheld if they exceeded
their production allocation. He disagreed with the view that "artificial"
constraints would give land-based producers an advantage. The Commission
should find ways of making the production formula more effective in
controlling entry by potential investors and the actual production.
The representative of the Federal Republic of Germany said his country
was a large consumer of the metals contained in the manganese nodules and it
therefore had a vital interest in a diversity of reliable sources of supply.
It was opposed to measures leading to artificial restriction of supply or to
an artificial increase in commodity prices. It also believed that special
protection of land-based producers was unnecessary. A comparison of the
actual costs of sea-bed mining showed a considerable difference in favour of
land-based producers. The issue should be re-examined and solutions
acceptable to both producers and consumers found.
The representative of Cuba associated himself with the statement made by
Brazil, adding that the work that had gone into devising the formula in many
negotiations over the past 15 years should not be disregarded. Delegations
should not upset the balance achieved in arriving at the production formula.
Chile also associated itself with the Brazilian statement, recalling the
fact that principles had been adopted during the negotiating conference on the
law of the sea to protect developing countries. A background memorandum on
the subject promised by the Secretariat should be made available early to
delegations, he said.
* Origin: UNITEX --> Toward a United Species (1:107/501)
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