(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.

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