(c) To the extent that a Signatory decides not to offer its excess
investment share to other Signatories, the corresponding voting
participation of that Signatory in excess of 25 per cent shall be
distributed equally to all other representatives on the Council.
(4) A quorum for any meeting of the Council shall consist of a
majority of the representatives on the Council, representing at least
two-thirds of the total voting participation of all Signatories and groups
of Signatories represented on the Council.
ARTICLE 15 Council-Functions
The Council shall have the responsibility, having due regard for the
views and recommendations of the Assembly, to make provision for the space
segment necessary for carrying out the purposes of the Organization in the
most economic, effective and efficient manner consistent with this
Convention and the Operating Agreement. To discharge this responsibility,
the Council shall have the power to perform all appropriate functions,
including:
(a) Determination of maritime satellite telecommunications
requirements and adoption of policies, plans, programmes, procedures and
measures for the design, development, construction, establishment,
acquisition by purchase or lease, operation, maintenance and utilization
of the INMARSAT space segment, including the procurement of any necessary
launch services to meet such requirements.
(b) Adoption and implementation of management arrangements which
shall require the Director General to contract for technical and
operational functions whenever this is more advantageous to the
Organization.
(c) Adoption of criteria and procedures for approval of earth
stations on land, on ships and on structures in the marine environment for
access to the INMARSAT space segment and for verification and monitoring
of performance of earth stations having access to and utilization of the
INMARSAT space segment. For earth stations on ships, the criteria should
be in sufficient detail for use by national licensing authorities, at
their discretion, for type-approval purposes.
(d) Submission of recommendations to the Assembly in accordance
with Article 12 (1) (c).
(e) Submission to the Assembly of periodic reports on the
activities of the Organization, including financial matters.
(f) Adoption of procurement procedures, regulations and contract
terms and approval of procurement contracts consistent with this
Convention and the Operating Agreement.
(g) Adoption of financial policies, approval of the financial
regulations, annual budget and annual financial statements, periodic
determination of charges for use of the INMARSAT space segment, and
decisions with respect to all other financial matters, including
investment shares and capital ceiling consistent with this Convention and
the Operating Agreement.
(h) Determination of arrangements for consultation on a continuing
basis with bodies recognized by the Council as representing shipowners,
maritime personnel and other users of maritime telecommunications.
(i) Designation of an arbitrator where the Organization is a party
to an arbitration.
(j) Exercise of any other functions conferred upon it in any other
Article of this Convention or the Operating Agreement or any other
function appropriate for the achievement of the purposes of the
Organization.
ARTICLE 16 Directorate
(1) The Director General shall be appointed, from among candidates
proposed by Parties or Signatories through Parties, by the Council,
subject to confirmation by the Parties. The Depositary shall immediately
notify the Parties of the appointment. The appointment is confirmed unless
within sixty days of the notification more than one-third of the Parties
have informed the Depositary in writing of their objection to the
appointment. The Director General may assume his functions after
appointment and pending confirmation.
(2) The term of office of the Director General shall be six years.
However, the Council may remove the Director General earlier on its own
authority. The Council shall report the reasons for the removal to the
Assembly.
(3) The Director General shall be the chief executive and legal
representative of the Organization and shall be responsible to and under
the direction of the Council.
(4) The structure, staff levels and standard terms of employment of
officials and employees and of consultants and other advisers to the
Directorate shall be approved by the Council.
(5) The Director General shall be appoint the members of the
Directorate. The appointment of senior officials reporting directly to the
Director General shall be approved by the Council.
(6) The paramount consideration in the appointment of the Director
General and other personnel of the Directorate shall be the necessity of
ensuring the highest standards of integrity, competency and efficiency.
ARTICLE 17 Representation at Meetings
All Parties and Signatories which, under this Convention or the
Operating Agreement, are entitled to attend and/or participate at meetings
of the Organization shall be allowed to attend and/or participate at such
meetings as well as any other meeting held under the auspices of the
Organization, regardless of where the meeting may take place. The
arrangements made with any host country shall be consistent with these
obligations.
ARTICLE 18 Costs of Meetings
(1) Each Party and Signatory shall meet its own costs of
representation at meetings of the Organization.
(2) Expenses of meetings of the Organization shall be regarded as an
administrative cost of the Organization. However, no meeting of the
Organization shall be held outside its headquarters, unless the
prospective host agrees to defray the additional expenditure involved.
ARTICLE 19 Establishment of Utilization Charges
(1) The Council shall specify the units of measurement for the various
types of utilization of the INMARSAT space segment and shall establish
charges for such utilization. These charges shall have the objective of
earning sufficient revenues for the Organization to cover its operating,
maintenance and administrative costs, the provision of such operating
funds as the Council may determine to be necessary, the amortization of
investment made by Signatories, and compensation for use of capital in
accordance with the Operating Agreement.
(2) The rates of utilization charge for each type of utilization shall
be the same for all Signatories for that type of utilization.
(3) For entities, other than Signatories, which are authorized in
accordance with Article 7 to utilize the INMARSAT space segment, the
Council may establish rates of utilization charge different from those
established for Signatories. The rates for each type of utilization shall
be the same for all such entities for that type of utilization.
ARTICLE 20 Procurement
(1) The procurement policy of the Council shall be such as to
encourage, in the interests of the Organization, world-wide competition in
the supply of goods and services. To this end:
(a) Procurement of goods and services required by the
Organization, whether by purchase or lease, shall be effected by the award
of contracts, based on responses to open international invitations to
tender.
(b) Contracts shall be awarded to bidders offering the best
combination of quality, price and the most favourable delivery time.
(c) If there are bids offering comparable combinations of quality,
price and the most favourable delivery time, the Council shall award the
contract so as to give effect to the procurement policy set out above.
(2) In the following cases the requirement of open international
tender may be dispensed with under procedures adopted by the Council,
provided that in so doing the Council shall encourage in the interests of
the Organization world-wide competition in the supply of goods and
services:
(a) The estimated value of the contract does not exceed 50,000 US
dollars and the award of the contract would not by reason of the
application of the dispensation place a contractor in such a position as
to prejudice at some later date the effective exercise by the Council of
the procurement policy set out above. To the extent justified by changes
in world prices, as reflected by relevant price indices, the Council may
revise the financial limit.
(b) Procurement is required urgently to meet an emergency
situation.
(c) There is only one source of supply to a specification which is
necessary to meet the requirements of the Organization or the sources of
supply are so severely restricted in number that it would be neither
feasible nor in the best interest of the Organization to incur the
expenditure and time involved in open international tender, provided that
where there is more than one source they will have an opportunity to bid
on an equal basis.
(d) The requirement is of an administrative nature for which it
would be neither practicable nor feasible to undertake open international
tender.
(e) The procurement is for personal services.
ARTICLE 21 Inventions and Technical Information
(1) The Organization, in connexion with any work performed by it or on
its behalf at its expense, shall acquire in inventions and technical
information those rights, but no more than those rights, which are
necessary in the common interests of the Organization and of the
Signatories in their capacity as such. In the case of work done under
contract, any such rights obtained shall be on a non-exclusive basis.
(2) For the purpose of paragraph (1) the Organization, taking into
account its principles and objectives and generally accepted industrial
practices, shall, in connexion with such work involving a significant
element of study, research or development ensure for itself:
(a) The right to have disclosed to it without payment all
inventions and technical information generated by such work.
(b) The right to disclose and to have disclosed to Parties and
Signatories and others within the jurisdiction of any Party such
inventions and technical information, and to use and to authorize and to
have authorized Parties and Signatories and such others to use such
inventions and technical information without payment in connexion with the
INMARSAT space segment and any earth station on land or ship station
operating in conjunction therewith.
(3) In the case of work done under contract, ownership of the rights
in inventions and technical information generated under the contract shall
be retained by the contractor.
(4) The Organization shall also ensure for itself the right, on fair
and reasonable terms and conditions, to use and to have used inventions
and technical information directly utilized in the execution of work
performed on its behalf but not included in paragraph (2), to the extent
that such use is necessary for the reconstruction or modification of any
product actually delivered under a contract financed by the Organization,
and to the extent that the person who has performed such work is entitled
to grant such right.
(5) The Council may in individual cases approve a deviation from the
policies prescribed in paragraphs (2) (b) and (4), where in the course of
negotiation it is demonstrated to the Council that failure to deviate
would be detrimental to the interests of the Organization.
(6) The Council may also, in individual cases where exceptional
circumstances warrant, approve a deviation from the policy prescribed in
paragraph (3) where all the following conditions are met:
(a) It is demonstrated to the Council that failure to deviate
would be detrimental to the interests of the Organization.
(b) The Council determines that the Organization should be able to
ensure patent protection in any country.
(c) Where, and to the extent that, the contractor is unable or
unwilling to ensure such patent protection within the time required.
(7) With respect to inventions and technical information in which
rights are acquired by the Organization otherwise than pursuant to
paragraph (2), the Organization, to the extent that it has the right to
do so, shall upon request:
(a) Disclose or have disclosed such inventions and technical
information to any Party or Signatory subject to reimbursement of any
payment made by or required of the Organization in respect of the exercise
to this right of disclosure.
(b) Make available to any Party or Signatory the right to disclose
or have disclosed to others within the jurisdiction of any Party and to
use and to authorize and to have authorized such others to use such
inventions and technical information:
(i) Without payment in connexion with the INMARSAT space
segment or any earth station on land or ship operating in conjunction
therewith.
(ii) For any other purpose, on fair and reasonable terms and
conditions to be settled between Signatories or others within the
jurisdiction of any Party and the Organization or the owner of the
inventions and technical information or any other authorized entity or
person having a property interest therein, and subject to reimbursement of
any payment made by or required of the Organization in respect of the
exercise of these rights.
(8) The disclosure and use, and the terms and conditions of disclosure
and use, of all inventions and technical information in which the
Organization has acquired any rights shall be on a non-discriminatory
basis with respect to all Signatories and others within the jurisdiction
of Parties.
(9) Nothing in this Article shall preclude the Organization, if
desirable, from entering into contracts with persons subject to domestic
laws and regulations relating to the disclosure of technical information.
ARTICLE 22 Liability
Parties are not, in their capacity as such, liable for the acts and
obligations of the Organization, except in relation to non-Parties or
natural or juridical persons they might represent in so far as such
liability may follow from treaties in force between the Party and the
non-Party concerned. However, the foregoing does not preclude a Party
which has been required to pay compensation under such a treaty to a
non-Party or to a natural or juridical person it might represent from
invoking any rights it may have under that treaty against any other Party.
ARTICLE 23 Excluded Costs
Taxes on income derived from the Organization by any of the
Signatories shall not form part of the costs of the Organization.
ARTICLE 24 Audit
The accounts of the Organization shall be audited annually by an
independent Auditor appointed by the Council. Any Party or Signatory shall
have the right to inspect the accounts of the Organization.
ARTICLE 25 Legal Personality
The Organization shall have legal personality and shall be responsible
for its acts and obligations. For the purpose of its proper functioning,
it shall, in particular, have the capacity to contract, to acquire,
lease, hold and dispose of movable and immovable property, to be a party
to legal proceedings and to conclude agreements with States or
international organizations.
ARTICLE 26 Privileges and Immunities
(1) Within the scope of activities authorized by this Convention, the
Organization and its property shall be exempt in all States Parties to
this Convention from all national income and direct national property
taxation and from customs duties on communication satellites and
components and parts for such satellites to be launched for use in the
INMARSAT space segment. Each Party undertakes to use its best endeavours
to bring about, in accordance with the applicable domestic procedure, such
further exemption from income and direct property taxation and customs
duties as is desirable, bearing in mind the particular nature of the
Organization.
(2) All Signatories acting in their capacity as such, except the
Signatory designated by the Party in whose territory the headquarters is
located, shall be exempt from national taxation on income earned from the
Organization in the territory of that Party.
(3) (a) As soon as possible after the entry into force of this
Convention, the Organization shall conclude, with any Party in whose
territory the Organization establishes its headquarters, other offices or
installations, an agreement to be negotiated by the Council and approved
by the Assembly, relating to the privileges and immunities of the
Organization, its Director General, its staff, of experts performing
missions for the Organization and of representatives of Parties and
Signatories whilst in the territory of the host Government for the purpose
of exercising their functions.
(b) The agreement shall be independent of this Convention and
shall terminate by agreement between the host Government and the
Organization or if the headquarters of the Organization are moved from the
territory of the host Government.
(4) All Parties other than a Party which has concluded an agreement
referred to in paragraph (3) shall as soon as possible after the entry
into force of this Convention conclude a Protocol on the privileges and
immunities of the Organization, its Director General, its staff, of
experts performing missions for the Organization and of representatives of
Parties and Signatories whilst in the territory of Parties for the
purposes of exercising their functions. The Protocol shall be independent
of this Convention and shall prescribe the conditions for its termination.
ARTICLE 27 Relationship with other International Organizations
The Organization shall co-operate with the United Nations and its
bodies dealing with the Peaceful Uses of Outer Space and Ocean Area, its
Specialized Agencies, as well as other international organizations, on
matters of common interest. In Particular the Organization shall take into
account the relevant Resolutions and Recommendations of the
Inter-Governmental Maritime Consultative Organization. The Organization
shall observe the relevant provisions of the International
Telecommunication Convention and regulations made thereunder, and shall in
the design, development, construction and establishment of the INMARSAT
space segment and in the procedures established for regulating the
operation of the INMARSAT space segment and of earth stations give due
consideration to the relevant Resolutions, Recommendations and procedures
of the organs of the International Telecommunication Union.
ARTICLE 28 Notification to the International TelecommunicationUnion
Upon request from the Organization, the Party in whose territory the
Headquarters of the Organization is located shall co-ordinate the
frequencies to be used for the space segment and shall, on behalf of each
Party that consents, notify the International Telecommunication Union of
the frequencies to be so used and other information, as provided for in
the Radio Regulations annexed to the International Telecommunication
Convention.
ARTICLE 29 Withdrawal
(1) Any Party or Signatory may by written notification to the
Depositary withdraw voluntarily from the Organization at any time. Once a
decision has been made under applicable domestic law that a Signatory may
withdraw, notice of the withdrawal shall be given in writing to the
Depositary by the Party which has designated the Signatory, and the
notification shall signify the acceptance by the Party of the withdrawal.
Withdrawal of a Party, in its capacity as such, shall entail the
simultaneous withdrawal of any Signatory designated by the Party or of the
Party in its capacity as Signatory, as the case may be.
(2) Upon receipt by the Depositary of a notice to withdraw, the Party
giving notice and any Signatory which it has designated, or the Signatory
in respect of which notice has been given, as the case may be, shall
cease to have any rights of representation and any voting rights in any
organ of the Organization and shall incur no obligation after the date of
such receipt. However, a withdrawing Signatory shall remain responsible,
unless otherwise decided by the Council pursuant to Article XIII of the
Operating Agreement, for contributing its share of the capital
contributions necessary to meet contractual commitments specifically
authorized by the Organization before the receipt and liabilities arising
from acts or omissions before the receipt. Except with respect to such
capital contributions and except with respect to Article 31 of this
Convention and Article XVI of the Operating Agreement, withdrawal shall
become effective and this Convention and/or the Operating Agreement shall
cease to be in force for the Party and/or Signatory three months after the
date of receipt by the Depositary of the written notification referred to
in paragraph (1).
(3) If a Signatory withdraws, the Party which designated it shall,
before the effective date of withdrawal and with effect from that date,
designate a new Signatory, assume the capacity of a Signatory in
accordance with paragraph (4), or withdraw. If the Party has not acted by
the effective date, it shall be considered to have withdrawn as from that
date. Any new Signatory shall be responsible for all the outstanding
capital contributions of the previous signatory and for the proportionate
share of any capital contributions necessary to meet contractual
commitments specifically authorized by the Organization, and liabilities
arising from acts or omissions, after the date of receipt of the notice.
(4) If for any reason a Party desires to substitute itself for its
designated Signatory or to designate a new Signatory, it shall give
written notice to the Depositary. Upon assumption by the new Signatory of
all the outstanding obligations, as specified in the last sentence of
paragraph (3), of the previously designated Signatory and upon signature
of the Operating Agreement, that Agreement shall enter into force for the
new Signatory and shall cease to be in force for the previous Signatory.
ARTICLE 30 Suspension and Termination
(1) Not less than one year after the Directorate has received written
notice that a Party appears to have failed to comply with any obligation
under this Convention, the Assembly, after considering any representations
made by the Party, may decide, if it finds that the failure to comply has
in fact occurred and that such failure impairs the effective operation of
the Organization, that the membership of the Party is terminated. This
Convention shall cease to be in force for the Party as from the date of
the decision or at such later date as the Assembly may determine. An
extraordinary session of the Assembly may be convened for this purpose.
The termination shall entail the simultaneous withdrawal of any Signatory
designated by the Party or of the Party in its capacity as Signatory, as
the case may be. The Operating Agreement shall cease to be in force for
the Signatory on the date on which this Convention ceases to be in force
for the Party concerned, except with respect to capital contributions
necessary to meet contractual commitments specifically authorized by the
Organization before the termination and liabilities arising from acts or
omissions before the termination, and except with respect to Article 31 of
this Convention and Article XVI of the Operating Agreement.
(2) If any Signatory, in its capacity as such, fails to comply with
any obligation under this Convention or the Operating Agreement, other
than obligations under Article III (1) of the Operating Agreement and the
failure has not been remedied within three months after the Signatory has
been notified in writing of a resolution of the Council taking note of the
failure to comply, the Council, after considering any representations made
by the Signatory and, if applicable, the Party concerned may suspend the
rights of the Signatory. If, after an additional three months and after
consideration of any representations made by the Signatory and, if
applicable, the Party, the Council finds that the failure to comply has
not been remedied, the Assembly may decide on the recommendation of the
Council that the membership of the Signatory is terminated. Upon the date
of such decision, the termination shall become effective and the Operating
Agreement shall cease to be in force for that Signatory.
(3) If any Signatory fails to pay any amount due from it pursuant to
Article III (1) of the Operating Agreement within four months after the
payment has become due, the rights of the Signatory under this Convention
and the Operating Agreement shall be automatically suspended. If within
three months after the suspension the Signatory has not paid all sums due
or the Party which has designated it has not made a substitution pursuant
to Article 29 (4), the Council after considering any representations made
by the Signatory or by the Party which has designated it, may decide that
the membership of the Signatory is terminated. From the date of such
decision, the Operating Agreement shall cease to be in force for the
Signatory.
(4) During the period of suspension of the rights of a Signatory
pursuant to paragraphs (2) or (3), the Signatory shall continue to have
all the obligations of a Signatory under this Convention and the Operating
Agreement.
(5) A Signatory shall incur no obligation after termination, except
that it shall be responsible for contributing its share of the capital
contributions necessary to meet contractual commitments specifically
authorized before the termination and liabilities arising from acts or
omissions before the termination, and except with respect to Article 31 of
this Convention and Article XVI of the Operating Agreement.
(6) If the membership of a Signatory is terminated, the Party which
designated it shall, within three months from the date of the termination
and with effect from that date, designate a new Signatory, assume the
capacity of a Signatory in accordance with Article 29 (4), or withdraw. If
the Party has not acted by the end of that period, it shall be considered
to have withdrawn as from the date of termination, and this Convention
shall cease to be in force for the Party as from that date.
(7) Whenever this Convention has ceased to be in force for a Party,
settlement between the Organization and any Signatory designated by that
Party or that Party in its capacity as Signatory, shall be accomplished
as provided in Article XIII of the Operating Agreement.
ARTICLE 31 Settlement of Disputes
(1) Disputes arising between Parties, or between Parties and the
Organization, relating to rights and obligations under this Convention
should be settled by negotiation between the parties concerned. If within
one year of the time any party has requested settlement, a settlement has
not been reached and if the parties to the dispute have not agreed to
submit it to the International Court of Justice or to some other procedure
for settling disputes, the dispute may, if the parties to the dispute
consent, be submitted to arbitration in accordance with the Annex to this
Convention. Any decision of an arbitral tribunal in a dispute between
Parties, or between Parties and the Organization, shall not prevent or
affect a decision of the Assembly pursuant to Article 30 (1), that the
Convention shall cease to be in force for a Party.
(2) Unless otherwise mutually agreed, disputes arising between the
Organization and one or more Parties under agreements concluded between
them, if not settled by negotiation within one year of the time any party
has requested settlement, shall, at the request of any party to the
dispute, be submitted to arbitration in accordance with the Annex to this
Convention.
(3) Disputes arising between one or more Parties and one or more
Signatories in their capacity as such, relating to rights and obligations
under this Convention or the Operating Agreement may be submitted to
arbitration in accordance with the Annex to this Convention if the Party
or Parties and the Signatory or Signatories involved agree to such
arbitration.
(4) This Article shall continue to apply to a Party or Signatory which
ceases to be a Party or Signatory, in respect of disputes relating to
rights and obligations arising from its having been a Party or Signatory.
ARTICLE 32 Signature and Ratification
(1) This Convention shall remain open for signature in London until
entry into force and shall thereafter remain open for accession. All
States may become Parties to the Convention by:
(a) Signature not subject to ratification, acceptance or approval,
or
(b) Signature subject to ratification, acceptance or approval,
followed by ratification, acceptance or approval, or
(c) Accession.
(2) Ratification, acceptance, approval or accession shall be effected
by the deposit of the appropriate instrument with the Depositary.
(3) On becoming a Party to this Convention, or at any time thereafter,
a State may declare, by written notification to the Depositary, to which
Registers of ships operating under its authority, and to which land earth
stations under its jurisdiction, the Convention shall apply.
(4) No State shall become a Party to this Convention until it has
signed, or the entity it has designated, has signed the Operating
Agreement.
(5) Reservations cannot be made to this Convention or the Operating
Agreement.
ARTICLE 33 Entry into Force
(1) This Convention shall enter into force sixty days after the date
on which States representing 95 per cent of the initial investment shares
have become Parties to the Convention.
(2) Notwithstanding paragraph (1), if the Convention has not entered
into force within thirty-six months after the date it was opened for
signature, it shall not enter into force.
(3) For a State which deposits an instrument of ratification,
acceptance, approval or accession after the date on which the Convention
has entered into force, the ratification, acceptance, approval or
accession shall take effect on the date of deposit.
ARTICLE 34 Amendments
(1) Amendments to this Convention may be proposed by any Party.
Proposed amendments shall be submitted to the Directorate, which shall
inform the other Parties and Signatories. Three months' notice is required
before consideration of an amendment by the Council, which shall submit
its views to the Assembly within a period of six months from the date of
circulation of the amendment. The Assembly shall consider the amendment
not earlier than six months thereafter, taking into account any views
expressed by the Council. This period may, in any particular case, be
reduced by the Assembly by a substantive decision.
(2) If adopted by the Assembly, the amendment shall enter into force
one hundred and twenty days after the Depositary has received notices of
acceptance from two-thirds of those States which at the time of adoption
by the Assembly were Parties and represented at least two-thirds of the
total investment shares. Upon entry into force, the amendment shall become
binding upon all Parties and Signatories, including those which have not
accepted it.
ARTICLE 35 Depositary
(1) The Depositary of this Convention shall be the Secretary-general
of the Inter-Governmental Maritime Consultative Organization.
(2) The Depositary shall promptly inform all signatory and acceding
States and all Signatories of:
(a) Any signature of the Convention.
(b) The deposit of any instrument of ratification, acceptance,
approval or accession.
(c) The entry into force of the Convention.
(d) The adoption of any amendment to the Convention and its entry
into force.
(e) Any notification of withdrawal.
(f) Any suspension or termination.
(g) Other notifications and communications relating to the
Convention.
(3) Upon entry into force of the Convention the Depositary shall
transmit a certified copy to the Secretariat of the United Nations for
registration and publication in accordance with Article 102 of the Charter
of the United Nations.
IN WITNESS WHEREOF the undersigned, duly authorized by their
respective Governments, have signed this Convention. *
[* Signatures omitted.]
DONE AT LONDON this third day of September one thousand nine hundred
and seventy-six in the English, French, Russian and Spanish languages, all
the texts being equally authentic, in a single original which shall be
deposited with the Depositary, who shall send a certified copy to the
Government of each of the States which were invited to attend the
International Conference on the Establishment of an International Maritime
Satellite System and to the Government of any other State which signs or
accedes to this Convention.
ANNEX: Procedures for the Settlement of Disputes Referred to in Article 31
of the Convention and Article XVI of the Operating Agreement
ARTICLE 1
Disputes cognizable pursuant to Article 31 of the Convention or
Article XVI of the Operating Agreement shall be dealt with by an arbitral
tribunal of three members.
ARTICLE 2
Any petitioner or group of petitioners wishing to submit a dispute to
arbitration shall provide each respondent and the Directorate with a
document containing:
(a) A full description of the dispute, the reasons why each
respondent is required to participate in the arbitration, and the measures
being requested.
(b) The reasons why the subject matter of the dispute comes within
the competence of a tribunal and why the measures requested can be granted
if the tribunal finds in favour of the petitioner.
(c) An explanation why the petitioner has been unable to achieve a
settlement of the dispute by negotiation or other means short of
arbitration.
(d) Evidence of the agreement or consent of the disputants when
this is a condition for arbitration.
(e) The name of the person designated by the petitioner to serve
as a member of the tribunal.
The Directorate shall promptly distribute a copy of the document to
each Party and Signatory.
ARTICLE 3
(1) Within sixty days from the date copies of the document described
in Article 2 have been received by all the respondents, they shall
collectively designate an individual to serve as a member of the tribunal.
Within that period, the respondents may jointly or individually provide
each disputant and the Directorate with a document stating their
individual or collective responses to the document referred to in Article
2 and including any counterclaims arising out of the subject matter of the
dispute.
(2) Within thirty days after the designation of the two members of the
tribunal, they shall agree on a third arbitrator. He shall not be of the
same nationality as, or resident in the territory of, any disputant, or in
its service.
(3) If either side fails to nominate an arbitrator within the period
specified or if the third arbitrator is not appointed within the period
specified, the President of the International Court of Justice, or if he
is prevented from acting or is of the same nationality as a disputant, the
Vice-President, or if he is prevented from acting or is of the same
nationality as a disputant, the senior judge who is not of the same
nationality as any disputant, may at the request of either disputant,
appoint an arbitrator or arbitrators as the case requires.
(4) The third arbitrator shall act as president of the tribunal.
(5) The tribunal is constituted as soon as the president is selected.
ARTICLE 4
(1) If a vacancy occurs in the tribunal for any reason which the
president or the remaining members of the tribunal decide is beyond the
control of the disputants, or is compatible with the proper conduct of the
arbitration proceedings, the vacancy shall be filled in accordance with
the following provisions:
(a) If the vacancy occurs as a result of the withdrawal of a
member appointed by a side to the dispute, then that side shall select a
replacement within ten days after the vacancy occurs.
(b) If the vacancy occurs as a result of the withdrawal of the
president or of a member appointed pursuant to Article 3(3), a replacement
shall be selected in the manner described in paragraph (2) or (3),
respectively, of Article 3.
(2) If a vacancy occurs for any other reason, or if a vacancy
occurring pursuant to paragraph (1) is not filled, the remainder of the
tribunal shall have the power, notwithstanding Article 1, upon request of
one side, to continue the proceedings and give the final decision of the
tribunal.
ARTICLE 5
(1) The tribunal shall decide the date and place of its meetings.
(2) The proceedings shall be held in private and all material
presented to the tribunal shall be confidential. However, the Organization
and any Party which has designated a Signatory which is a disputant in the
proceedings shall have the right to be present and shall have access to
the material presented. When the Organization is a disputant in the
proceedings, all Parties and all Signatories shall have the right to be
present and shall have access to the material presented.
(3) In the event of a dispute over the competence of the tribunal, the
tribunal shall deal with that question first.
(4) The proceedings shall be conducted in writing, and each side shall
have the right to submit written evidence in support of its allegations of
fact and law. However, oral arguments and testimony may be given if the
tribunal considers it appropriate.
(5) The proceedings shall commence with the presentation of the case
of the petitioner containing its arguments, related facts supported by
evidence and the principles of law relied upon. The case of the petitioner
shall be followed by the counter-case of the respondent. The petitioner
may submit a reply to the counter-case of the respondent and the
respondent may submit a rejoinder. Additional pleadings shall be submitted
only if the tribunal determines they are necessary.
(6) The tribunal shall hear and determine counter-claims arising
directly out of the subject matter of the dispute, if the counter-claims
are within its competence as defined in Article 31 of the Convention and
Article XVI of the Operating Agreement.
(7) If the disputants reach an agreement during the proceedings, the
agreement shall be recorded in the form of a decision of the tribunal
given by consent of the disputants.
(8) At any time during the proceedings, the tribunal may terminate the
proceedings if it decides the dispute is beyond its competence as defined
in Article 31 of the Convention or Article XVI of the Operating Agreement.
(9) The deliberations of the tribunal shall be secret.
(10) The decisions of the tribunal shall be presented in writing and
shall be supported by a written opinion. Its rulings and decisions must be
supported by at least two members. A member dissenting from the decision
may submit a separate written opinion.
(11) The tribunal shall forward its decision to the Directorate, which
shall distribute it to all Parties and Signatories.
(12) The tribunal may adopt additional rules of procedure, consistent
with those established by this Annex, which are appropriate for the
proceedings.
ARTICLE 6
If one side fails to present its case, the other side may call upon
the tribunal to give a decision on the basis of its presentation. Before
giving its decision, the tribunal shall satisfy itself that it has
competence and that the case is well-founded in fact and in law.
ARTICLE 7
(1) Any Party whose Signatory is a disputant shall have the right to
intervene and become an additional disputant. Intervention shall be made
by written notification to the tribunal and to the other disputants.
(2) Any other Party, any Signatory or the Organization may apply to
the tribunal for permission to intervene and become an additional
disputant. The tribunal shall grant permission if it determines that the
applicant has a substantial interest in the case.
ARTICLE 8
The tribunal may appoint experts to assist it at the request of a
disputant or on its own initiative.
ARTICLE 9
Each Party, each Signatory and the Organization shall provide all
information which the tribunal, at the request of a disputant or on its
own initiative, determines to be required for the handling and
determination of the dispute.
ARTICLE 10
Pending the final decision, the tribunal may indicate any provisional
measures which it considers ought to be taken to preserve the respective
rights of the disputants.
ARTICLE 11
(1) The decision of the tribunal shall be in accordance with
international law and be based on:
(a) The Convention and the Operating Agreement.
(b) Generally accepted principles of law.
(2) The decision of the tribunal, including any reached by agreement
of the disputant pursuant to Article 5(7), shall be binding on all the
disputants, and shall be carried out by them in good faith. If the
Organization is a disputant, and the tribunal decides that a decision of
any organ of the Organization is null and void as not being authorized by
or in compliance with the Convention and the Operating Agreement, the
decision of the tribunal shall be binding on all Parties and Signatories.
(3) If a dispute arises as to the meaning or scope of its decision,
the tribunal shall construe it at the request of any disputant.
ARTICLE 12
Unless the tribunal determines otherwise because of the particular
circumstances of the case, the expenses of the tribunal, including the
remuneration of the members of the tribunal, shall be borne in equal
shares by each side. Where a side consists of more than one disputant, the
tribunal shall apportion the share of that side among the disputants on
that side. Where the Organization is a disputant, its expenses associated
with the arbitration shall be regarded as an administrative cost of the
Organization.