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COMMISSION
OFTHE
EUROPEAN COMMUNITIESCOM(80)780 final
Brussels,26thNovember1980
FOROFFICIAL USEONLY
GeneralSecretariat
Preparation ofthetenthsessionoftheThird
UnitedNationsConference ontheLawoftheSea
(NewYork,9March-17/24April1981)
(Commission communication totheCouncil)
C0M(80)780final

1.ThetenthsessionoftheThirdUnitedNationsConference ontheLaw
oftheSeawillbeheldfrom9Marchto17/24April1981.Thissession
shouldbethelastnegotiating sessionbeforethefinalsigningsession
scheduledforSeptember 1981inCaracas.
Aftersixyearsofintensivenegotiations ,.agreementtoalargedegree
alreadyexistsorisabouttobeachievedonanimportantrangeofissues:
-themaximumbreadthoftheterritorial area(12miles);
-theestablishment of200mileseconomiczones;
-thedelimitation ofthecontinental shelf(200milesormore);
-thenavigation regimeinterritorial waters,inthestraitsusedfor
international navigation,intheeconomiczoneandinthehighseas;
-theconservation andmanagement offisheriesresources;
-theprotectionofmarineenvironment ;
-themarinescientific research;
-theprocedurefordisputesettlement;
-theinternational areabeyondthelimitsofnationaljurisdictionwi 11be
subjecttoaninternational systemfortheexploration andexploitation of
resources,inparticularpolymetallic nodules(containingnickel,copper,
cobalt,ormanganese).Thissystemwillbeadministered byaninternational
Authority.ThemainorgansofthisAuthoritywillbeanAssembly,ofwhich
eachStatePartywillbeamember,and^Council,whichwillbetheexecutive
organoftheAuthority,witharestricted membershipof36.TheAuthority
couldallocateresponsibility fortheexploration andtheexploitation ofthe
sea-bedtoprivatecompaniesorstateholdingsortoaninternational
Enterpriseofacommercialnature,theestablishment andstatuteofwhich
willbedetermined bythefutureConvention .

Themaintopicsstilltobedealtwithatthetenthsessionwillbe
-theclauseconcerningparticipation intheConvention bynon-states,
includingtheCommunity;
-definitionofthetermsofreferenceofthePreparatory Commission
oftheInternational Sea-BedAuthority sothattheexploration and
•exploitation systemcanbecomeoperational assoonaspossible
followingtheentryintoforceoftheConvention ;
-anexamination ofthetreatmenttobeaccordedtopreparatory
investmentoperationscarriedoutbeforetheentryintoforceof
theConvention,providedthattheseoperations donotprejudiceits
aimsandobjectives .
Thesetopicsontheagendaofthenextsessionconcernmatters
fallingwithintheCommunity'ssphereofcompetenceorincludeaspects
ofmajorsignificance forthefutureofthecommonmarket.
TheCommunity hasparticipated intheConference fromtheoutset
onthebasisoftheCouncilDecisionof19July1976.Inthecourse
ofthenegotiations newquestions havearisen,suchasthatofsetting
upaPreparatory CommissionoftheInternational Sea-BedAuthority,
whichcallfordecisions bytheCommunityauthorities toavoid
jeopardizing theCommunity'seffectiveparticipation intheoperation
ofthefutureConvention .

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I.Communityparticipation clause
1.TheCouncilofMinistersdecidedon19july1976thatnegotiations
shouldbeinitiatedattheThirdUnitedNationsConference ontheLaw
oftheSeafortheinclusionintheinstruments beingdraftedbythis
conferenceofaclausetoenabletheEuropeanEconomicCommunityto
becomeacontracting partytothesaidinstruments .
Duringthesessionsin1976and1977and1978,theCommunity
hasinletterstothePresidentoftheconference fromtheheadofthe
delegation representing thePresidency drawnattentiontotheneedfor
theEuropeanEconomicComunitytobecomeacontracting partytothe
instruments whichtheconferenceiselaborating .Theletters,whichhave
beendistributed asofficialconference documents,andstatements made
inplenaryinMay1978andinAugust1979bythedelegations representing
thePresidency,explainedthatinviewofthetransferof.competences
whichhasoccurred,theMemberStatescannotundertake engagements
withrespecttothirdStatesonmattersexaminedattheconference over
whichtheCommunity hascompetence andthat,therefore,itisnecessary
fortheCommunitytobecomeapartytothefutureconvention ontheLaw
oftheSeatogetherwithitsMemberStates.
TheMemberStatesoftheCommunitysubmittedinAugust1979a
textofaCommunityclausetotheconference (1).Theclauseis
formulatedingeneraltermsandwouldopentheconventionforsignature
andapprovaloraccessionbycustomsunions,Communities orother
regionaleconomicintegration groupings,constituted bysovereign
•mm/mmm
(1)Doc.F.C./5of3August1979-reproducedinAnnexI

-4-
States which exercise powers inareas covered bytheconvention .
Throughout thenegotiations which have been conducted with third
countries onthesubject ofthis clause themain objective hasbeen to
make sure that theCommunity maybecome acontracting party tothe
convention with the same rights andobligations asStates Parties in
relation toareas where powers have been transferred toit,including
thepossibility fortheCommunity toactonitsownbehalf asplaintiff
ordefendant inadispute settlement procedure onmatters falling under
itscompetence .
Consultations carried outwith alarge number ofdelegations atthe
conference have resulted inthedrafting ofanew text which reflects
what seems necessary toinsert intheCommunity participation clause in
order togetsufficient support for its inclusion inthefuture
convention .This text ,which isofapurely informal character ,hasbeen
distributed toanumber ofdelegations attheclosing day ofthe last
session on29August 1980 C1).
2.This text should make itsufficiently clear that theCommunity
byitsapproval of/oraccession totheconvention will become amember
oftheInternational Sea-Bed Authority ,which will beincharge ofthe
policy fortheexploitation andexploration oftheinternational
sea-bed area .
Thenecessity ofincluding aCommunity clause inthefuture Law
ofthe SeaConvention hasnowbeen accepted byalarge majority ofthe
participants intheconference .Itisequally evident that further
efforts arerequired inorder toobtain asatisfactory formulation ofthis
clause ,since forpolitical reasons certain countries areopposed tosee
theCommunity participating asacontracting party tointernational
conventions orwant tofurther their own causes before they would Lend
their support toaCommunity clause .
mmmImmm
(1)Reproduced asAnnex II

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II.Preparatory Commission ofthe International Sea-Bed Authority
1.During thefirst part oftheninth session inNewYork in
March /April 1980 ,thePresident oftheConference presented the
participants with areport ,theresult ofunofficial negotiations ,
on :thesetting upofaPreparatory Commission toenable theInternational
Sea-Bed Authority and itsorgans tobecome operational assoon as
possible after thedate ofentry into force oftheConvention .
The draft resolution (1)attached tothis Communication examines
theobjectives ,composition andprocedure forthesetting upofthis
Commission ,together with itsstructure andfunctions .
2.Atthe last Geneva session ,theConference didnotcontinue the
study ofthis matter ,but itbecame evident during thenegotiations
that thePreparatory Commission would have anopen brief ,enabling it
todeal inpractice with allquestions notsolved before thesigning
ofthe Convention .
This process ofprogressively extending thePreparatory Commission 's
powers isforeshadowed bypoint 8ofthedraft resolution :"The
Commission maydeal with anyother matter falling within itssphere
ofaction ,including ...".
This means that aprecise definition cannot yet bemade of
thedefinitive extent ofthePreparatory Commission 'sfunctions ,but
itisalready obvious that certain ofthematters itwill bediscussing
fall within theCommunity 'ssphere ofcompetence .
/
■■■/•■•
(1) UNDOC .A/C0NF /62/L.55 of1April 1980 reproduced inAnnex III

-6-
3.Certain aspects covered byPart XIoftheConvention ,entitled
"TheArea ",aremore directly connected with thefuture work ofthe
Preparatory Commission ,andthere will also beallthesubjects assigned
toitunder point 8ofthedraft resolution quoted above .
With regard toSea-Bed resources ,theCommunity and itsMember
States informed thedelegations totheConference on5May 1978 ofthe
various aspects oftheCommunity 'scompetence inthis sphere ;tothat
end,apaper containing information supplenenting the statement made in
Plenary bytherepresentative oftheState holding thepresidency ofthe
Council ofthe European Communities atthe time wasdistributed atthe
Conference .
This paper pointed outthat theCommunity 'ssphere ofcompetence
inthecommercial policy field (Article 113 EEC )toacertain extent
overlay that covered bytheprovisions ofthePart XIofthefuture
Convention .
Itnoted that Part XI (Article 150ofthepresent draft Convention -
unofficial text ofAugust 1980 )lays down ,inter alia ,that activities in
theArea"shal Ibecarried out insuch awayastofoster healthy development
oftheworld economy andbalanced growth ofinternational trade
provisions which arevery similar insubstance tothose contained in
Article 110oftheTreaty relating totheobjectives ofthe EEC'scommon
commercial policy .
Thepaper also pointed outthat under itspowers inthecommercial
policy sphere theCommunity was acontracting party toanumber of
international commodities agreements ,intheUNCTAD framework ,wastaking
part intheformulation ofinternational agreements onfurther commodities ,
inparticular copper .TheCommission also pointed outthat since thepaper
of5May1978 hadbeen circulated theCommunity hadbecome acontracting
party tonewinternational commodity accords :olive oilagreement (1979 )
natural rubber agreement (1979 )andthat thefuture Convention ontheLaw
oftheSeamade provision fortheuseofthecommodity agreement technique
(Article 151ofthedraft convention -unofficial text ofAugust 1980 )
mmm/mmm

-7-
"topromote thegrowth /efficiency andstability ofmarkets forthose
commodities produced from theresources oftheArea ,atprices remunerative
toproducers andfair toconsumers ".Article 151lays down that "all
interested parties including both producers andconsumers "will participate
inanycommodity conferences dealing with products obtained from the
Area .
4.Furthermore ,thedraft participation clause incorporates ,asregards
procedure ,certain aspects which come within theCommunity 'srecognized
sphere ofcompetence ,with particular regard toitsparticipation inthe
organs oftheSea-Bed Authority ,since itlays down that "the
participation provided forinthis article shall innocase entail an
increase ofrepresentation ,normaytheStates membeis oftheorganization
exercise individually therights they have transferred ". (1)
This wording points upthe links which exist between theparticipation
clause andtheforthcoming discussion onthePreparatory Commission .The
participation clause canbeapplied forthe first time inrespect of
Community participation inthePreparatory Commission .Community
participation inthis organ isnecessary inthat itforeshadows its
participation inthedefinitive organs oftheSea-Bed Authority ,especially
theAssembly .This objective cannot beattained ifobserver status
isretained .
•a•/•■•
(1)Paragraph 4ofthetext ofthedraft clause reproduced inAnnex II.

8
Consequently,itwouldbenecessaryfortheMemberstates
torequestthatthePreparatory Commission beopentoallparties
(1)signatorytotheConvention ,inordertoensurethattheCommunity
canbecomeafullmemberofthisCommission .
.*
III.Protection ofpreliminary investment
1.AttheendofthefirstpartoftheninthsessioninNewYork,
inMarch-April,theUnitedstatesDelegation,afterconsulting
industrialists interestedinexploiting thesea-bed,presented an
unofficial workingpaperoninvestmentprotection duringthe
transitional period(IA/1of2April1980).Thepaperstatesthatprivate
companies donotwishtocontinuetheirworkonexploration and
development ofexploitation technology unlesstheyhaveaguarantee
thatthesiteonwhicheachcompanyconcentrates itsactivitywillbe
definitively awardedtothatcompanywhentheConventionultimately
entersintoforce.
TheUS-paperwasnotdiscussedatthespringorsummersessions.
r
2.Thequestion -oftheprotection ofpreliminary investment must
benegotiatedin1981,since:
-ontheonehand,evenifthetextofthefinalactor
ConventionissignedinCaracasinSeptember 1981,itcannot
beexpectedtoenterintoforceforsixorsevenyears;the
Preparatory Commission mustfinishitswork(inabout1984)
beforetheratification processcanbecommencedbytheWestern
industrialized states;,
••/••■
(1)_ «... .... .L.Itislaiddowninpoint2ofthedraftresolutionthatonly
StatessignatorytotheConventionwillberepresented inthe
Preparatory Commission

-ontheotherhand,theUnitedStatesandtheFederal
RepublicofGermanyhaveadoptedlawsdefiningthe
interimarrangements forexploitation ofthesea-bed
uptotheentryintoforceoftheConvention (itwould
seemthatotherindustrialized countriesarepreparing
toadoptsimilarlegislation).Theselawswerecon­
siderednecessary,despitetheobjectionsraisedbythe
Groupof77,inordertogivealegalframeworktothe
research,development andexplorationactivitiesofthe
variousprivatecompaniessothatthesea-bedcanbe
exploitedwithoutawaitingthedefinitiveentryinto
forceoftheConvention.
Certaindevelopingcountriesrefusetorecognizepreparatory
investmentunderthecoverofnationallegislationintheinter­
nationalArea.Itisnevertheless considerednecessaryforprivate
industrytocontinueitsworkinordertopermitsystematic
exploitation ofthesea-bedresourcesinthereasonably near
futurebytheinternational Enterpriseinteralia.
3.Thefutureexploitation ofpolymetallic nodulesonthedeep
sea-bedisofundoubtedimportancefortheCommunity'srawmaterials
supplies;twoofthemetalswhichcanbeextractedfromthenodules
(manganeseandcobalt)canbeconsideredasbeingofvitalimportance.
InsixCommunitycountriesindustrialcompanieshavetakenpart,
onanationalbasisoraspartofinternational consortia,inprogrammes
researching anddevelopingthetechnologyofextractingandprocessing
polymetallic nodules.Thesecompaniesmusttakeadecisiononwhether
tocontinuetheirefforts.
4.Thedelegations oftheMemberStatesoftheCommunitymust
workincloseconjunction bothbeforeandduringthenextsession
inordertofindasolutionwhichprovidesinitialinvestorswith
guaranteeswhiletakingintoaccountthepositionsadoptedbythe
developingcountries.

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5.SincetheFederalRepublicofGermanyhasadoptedinterim
nationallegislationrelatingtotheexploitation ofthesea-bed
andotherMemberStatesseemlikelytofollowsuit,theCommission
considersitnecessarytoorganizeacoordination procedureto
ensurethatthedifferentnationallawsarecompatible andtoavoid
possibledistortions ofcompetition .
* *
*
Bywayofconclusion,theCommission recommendsthatthe
Councildesidestocontinuethenegotiations intheThirdUnitedNations
Conference ontheLawoftheSeainordertoobtain:
a)theparticipation oftheCommunityintheConventionasaContracting
Party;
b)theparticipation oftheCommunityasamemberofthePreparatory
CommissionoftheInternational Sea-BedAuthority;
c)asatisfactory solutionfortheprotectionofpreliminary investment
operationsconductedbeforetheentryintoforceoftheConvention.