Obligations of 'pioneer investors' explored in Sea Law Commission.

Informal consultations on fulfilment of obligations of "pioneer investors" registered under Resolution 11 of the Third UN Conference on the Law of the Sea were held during the resumed sixth session of the Preparatory Commission for the International Sea-Bed Authority and for the International Tribunal for the Law of the Sea (New York, 15 August-2 September) '

Registered in this category so far are France, India, Japan and the USSR. A special regime has been established to recognize -investments already made in exploration, research and development work relating to future sea-bed mining. Once registered, pioneer investors have certain exclusive rights to explore and mine parts of the international sea-bed area, in exchange for which they will have certain obligations, including a proposed $1 million annual fee and training personnel for the Enterprise-the sea-bed mining arm of the Authority,

The body also continued work on the rules of procedure for various organs of the Authority. Also discussed were practical arrangements for establishing the Tribunal, requirements for operating the Enterprise and elaboration of a deep-sea mining code. Measures to help developing land-based producer States adjust their economies to the possible effects of sea-bed mining were also considered.

Commission Chairman Jose' Luis Jesus of Cape Verde reported I's low, but solid progress", adding that all groups were willing to co-operate. The body will meet next in Kingston, Jamaica, from 27 February to 23 March 1989.

The Authority and the Tribunal will come into existence following the entry into force of the 1982 Sea Law Convention. As of I September 1988, there were 35 ratifications to the Convention; 60 ratifications or accessions are needed for entry into force.

A seminar held at the Commission concluded that commercial sea-bed mining may begin by the turn of the century

Investor obligations

The issues discussed with regard

to pioneer investor obligations included exploration in the area reserved for activities by the Authority; transfer of technology; funds for the Enterprise; and periodic reports and expenditures.

The Group of 77 developing nations brought up obligations concerning preservation of the marine environment and the question of compensation to the Authority if sea-bed mining areas allocated to it were of less commercial value than that given to pioneer investors.

Malaysia, on behalf of the Group of 77, reported "hardly any progress" in...