The Government of the Federal Democratic Republic of Ethiopia and the
Government of the State of Eritrea (the \"parties\"),

Reaffirming their acceptance of the Organization of African Unity
(\"OAU\") Framework Agreement and the Modalities for its Implementation,
which have been endorsed by the 35th ordinary session of the Assembly of
Heads of State and Government, held in Algiers, Algeria, from 12 to 14
July 1999,

Recommitting themselves to the Agreement on Cessation of Hostilities,
signed in Algiers on 18 June 2000,

Welcoming the commitment of the OAU and United Nations, through their
endorsement of the Framework Agreement and Agreement on Cessation of
Hostilities, to work closely with the international community to
mobilize resources for the resettlement of displaced persons, as well as
rehabilitation and peacebuilding in both countries,

> Have agreed as follows:

# Article 1

1\. The parties shall permanently terminate military hostilities between
themselves. Each party shall refrain from the threat or use of force
against the other.

2\. The parties shall respect and fully implement the provisions of the
Agreement on Cessation of Hostilities.

## Article 2

I. In fulfilling their obligations under international humanitarian law,
including the 1949 Geneva Conventions relative to the protection of
victims of armed conflict (\"1949 Geneva Conventions\"), and in
cooperation with the International Committee of the Red Cross, the
parties shall without delay release and repatriate all prisoners of war.

2\. In fulfilling their obligations under international humanitarian
law, including the 1949 Geneva Conventions, and in cooperation with the
International Committee of the Red Cross, the parties shall without
delay, release and repatriate or return to their last place of residence
all other persons detained as a result of the armed conflict.

3\. The parties shall afford humane\' treatment to each other\'s
nationals and persons of each other\'s national origin within their
respective territories.

> **[Article 3]{.underline}**

1 . In order to determine the origins of the conflict, an investigation
will be carried out on the incidents of 6 May 1998 and on any other
incident prior to that date which could have contributed to a
misunderstanding between the parties regarding their common border,
including the incidents of July and August 1997.

2\. The investigation will be carried out by an independent, impartial
body appointed by the Secretary General of the OAU, in consultation with
the Secretary General of the United Nations and the two parties.

3\. The independent body will endeavor to submit its report to the
Secretary General of the OAU in a timely fashion.

> 4\. The parties shall cooperate fully with the independent body.

5\. The Secretary General of the OAU will communicate a copy of the
report to each of the two parties, which shall consider it in accordance
with the letter and spirit of the Framework Agreement and the
Modalities.

**[Article 4]{.underline}**

1\. Consistent with the provisions of the Framework Agreement and the
Agreement on Cessation of Hostilities, the parties reaffirm the
principle of respect for the borders existing at independence as stated
in resolution AHG/Res. 16(1) adopted by the OAU Summit in Cairo in 1964,
and, in this regard, that they shall be determined on the basis of
pertinent colonial treaties and applicable international law.

2\. The parties agree that a neutral Boundary Commission composed of
five members shall be established with a mandate to delimit and
demarcate the colonial treaty border based on pertinent colonial
treaties (1900, 1902 and 1903) and applicable international law. The
Commission shall not have the power to make decisions *ex aequo et
bono.*

3\. The Commission shall be located in The Hague.

4\. Each party shall, by written notice to the United Nations Secretary
General, appoint two commissioners within 45 days from the effective
date of this Agreement, neither of whom shall be nationals or permanent
residents of the party making the appointment. In the event that a party
fails to name one or both of its party-appointed commissioners within
the specified time, the Secretary General of the United Nations shall
make the appointment.

5\. The president of the Commission shall be selected by the
party­appointed commissioners or, failing their agreement within 30 days
of the date of appointment of the latest party-appointed commissioner,
by the Secretary General of the United Nations after consultation with
the parties. The president shall be neither a national nor permanent
resident of either party.

6\. In the event of the death or resignation of a commissioner in the
course of the proceedings, a substitute commissioner shall be appointed
or chosen pursuant to the procedure set forth in this article that was
applicable to the appointment or choice of the commissioner being
replaced.

7\. The UN Cartographer shall serve as Secretary to the Commission and
undertake such tasks as assigned to him by the Commission, making use of
the technical expertise of the UN Cartographic Unit. The Commission may
also engage the services of additional experts as it deems necessary.

8\. Within 45 days after the effective date of this Agreement, each
party shall provide to the Secretary its claims and evidence relevant to
the mandate of the Commission. These shall be provided to the other
party by the Secretary.

9\. After reviewing such evidence and within 45 days of its receipt, but
not earlier than 15 days after the Commission is constituted, the
Secretary shall transmit to the Commission and the parties any materials
relevant to the mandate of the Commission as well as his findings
identifying those portions of the border as to which there appears to be
no dispute between the parties. The Secretary shall also transmit to the
Commission all the claims and evidence presented by the parties.

10\. With regard to those portions of the border about which there
appears to be controversy, as well as any portions of the border
identified pursuant to paragraph 9 with respect to which either party
believes there to be controversy, the parties shall present their
written and, oral submissions and any additional evidence directly to
the Commission, in accordance with its procedures.

11\. The Commission shall adopt its own rules of procedure based upon
the 1992 Permanent Court of Arbitration Optional Rules for Arbitrating
Disputes Between Two States. Filing deadlines for the parties\' written
submissions shall be simultaneous rather than consecutive. All decisions
of the Commission shall be made by a majority of the commissioners.

12. The Commission shall commence its work not more than 15 days after
    it is constituted and shall endeavor to snake its decision
    concerning delimitation of the border within six months of its first
    meeting. The Commission shall take this objective into consideration
    when establishing its schedule. At its discretion; the Commission
    may extend this deadline.

13. Upon reaching a final decision regarding delimitation of the
    borders, the Commission shall transmit its decision to the parties
    and Secretaries General of the OAU and the United Nations for
    publication, and the Commission shall arrange for expeditious
    demarcation.

14\. The parties agree to cooperate with the Commission, its experts and
other staff in all respects during the process of delimitation and
demarcation, including the facilitation of access to territory they
control. Each party shall accord to the Commission and its employees the
same privileges and immunities as are accorded to diplomatic agents
under the Vienna Convention on Diplomatic Relations.

15\. The parties agree that the delimitation and demarcation
determinations of the Commission shall be final and binding. Each party
shall respect the border so determined, as well as the territorial
integrity and sovereignty of the other party.

16. Recognizing that the results of the delimitation and demarcation
    process are not yet known, the parties request the United Nations to
    facilitate resolution of problems which may arise due to the
    transfer of territorial control, including the consequences for
    individuals residing in previously disputed territory.

17\. The expenses of the Commission shall be borne equally by the two
parties. To defray its expenses, the Commission may accept donations
from the United Nations Trust Fund established under paragraph 8 of
Security Council Resolution 1177 of 26 June 1998.

1\. Consistent with the Framework Agreement, in which the parties commit
themselves to addressing the negative socio-economic impact of the
crisis on the civilian population, including the impact on those persons
who have been deported, a neutral Claims Commission shall be
established. The mandate of the Commission is to decide through binding
arbitration all claims for loss, damage or injury by one Government
against the other, and by nationals (including both natural and
juridical persons) of one party against the Government of the other
party or entities owned or controlled by the other party that are (a)
related to the conflict that was the subject of the Framework Agreement,
the Modalities for its Implementation and the Cessation of Hostilities
Agreement, and (b) result from violations of international humanitarian
law, including the 1949 Geneva Conventions, or other violations of
international law. The Commission shall not hear claims arising from the
cost of military operations, preparing for military operations, or the
use of force, except to the extent that such claims involve violations
of international humanitarian law.

2\. The Commission shall consist of five arbitrators. Each party shall,
by written notice to the United Nations Secretary General, appoint two
members within 45 days from the effective date of this Agreement,
neither of whom shall be nationals or permanent residents of the party
making the appointment. In the event that a party fails to name one or
both of its party-appointed arbitrators within the specified time, the
Secretary General of the United Nations shall make the appointment.

3\. The president of the Commission shall be selected by the
party-appointed arbitrators or, failing their agreement within 30 days
of the date of appointment of the latest party-appointed arbitrator, by
the Secretary General of the United Nations after consultation with the
parties. The president shall be neither a national nor permanent
resident of either party.

> 4\. In the event of the death or resignation of a member of the
> Commission in the course of the proceedings, a substitute member shall
> be appointed or chosen pursuant to the procedure set forth in this
> article that was applicable to the appointment or choice of the
> arbitrator being replaced,
>
> 5\. The Commission shall be located in The Hague. At its discretion it
> may hold hearings and conduct investigations in the territory of
> either party, or at such other location as it deems expedient.
>
> 6\. The Commission shall be empowered to employ such professional,
> administrative and clerical staff as it deems necessary to accomplish
> its work, including establishment of a Registry. The Commission may
> also retain consultants and experts to facilitate the expeditious
> completion of its work.
>
> 7\. The Commission shall adopt its own rules of procedure based upon
> the 1992 Permanent Court of Arbitration Optional Rules for Arbitrating
> Disputes Between Two States. All decisions of the Commission shall be
> made by a majority of the commissioners.

8.  Claims shall be submitted to the Commission by each of the parties
    on its own behalf and on behalf of its nationals, including both
    natural and juridical persons. All claims submitted to the
    Commission shall be filed no later than one year from the effective
    date of this Agreement. Except for claims submitted to another
    mutually agreed settlement mechanism in accordance with paragraph 16
    or filed in another forum prior to the effective date of this
    Agreement, the Commission shall be the sole forum for adjudicating
    claims described in paragraph I or filed under paragraph 9 of this
    article, and any such claims which could have been and were not
    submitted by that deadline shall be extinguished, in accordance with
    international law.

9\. In appropriate cases, each party may file claims on behalf of
persons of Ethiopian or Eritrean origin who may not be its nationals.
Such claims shall be considered by the Commission on the same basis as
claims submitted on behalf of that party\'s nationals.

10\. In order to facilitate the expeditious resolution of these
disputes, the Commission shall be authorized to adopt such methods of
efficient case management and mass claims processing as it deems
appropriate, such as expedited procedures for processing claims and
checking claims on a sample basis for further verification only if
circumstances warrant.

11\. Upon application of either of the parties, the Commission may
decide to consider specific claims, or categories of claims, on a
priority basis

12\. The Commission shall commence its work not more than 15 days after
it is constituted and shall endeavor to complete its work within three
years of the date when the period for filing claims closes pursuant to
paragraph 8.

13\. In considering claims, the Commission shall apply relevant rules of
international law. The Commission shall not have the power to make
decisions *ex aequo et bono*

14\. Interest, costs and fees may be awarded.

15\. The expenses of the Commission shall be borne equally by the
parties. Each party shall pay any invoice from the Commission within 30
days of its receipt.

16\. The parties may agree at any time to settle outstanding claims,
individually or by categories, through direct negotiation or by
reference to another mutually agreed settlement mechanism.

17\. Decisions and awards of the Commission shall be final, and binding.
The parties agree to honor all decisions and to pay any monetary awards
rendered against them promptly.

18\. Each party shall accord to members of the Commission and its
employees the privileges and immunities that are accorded to diplomatic
agents under the Vienna Convention on Diplomatic Relations.

> [Article 6]{.underline}
>
> 1\. This Agreement shall enter into force on the date of signature.
>
> 2\. The parties authorize the Secretary General of the OAU to register
> this Agreement with the Secretariat of the United Nations in
> accordance with Article 102(1) of the Charter of the United Nations.

DONE at Algiers on the twelfth day of December, 2000, in duplicate, in
the English language.

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