PART XI

                              THE AREA

                     SECTION 1. GENERAL PROVISIONS

                             Article 133
                            Use of terms

For the purposes of this Part:

(a) "resources" means all solid, liquid or gaseous mineral resources in
    situ in the Area at or beneath the sea-bed, including polymetallic
    nodules;
(b) resources, when recovered from the Area, are referred to as
    "minerals".

                             Article 134
                          Scope of this Part

1. This Part applies to the Area.

2. Activities in the Area shall be governed by the provisions of this Part.

3. The requirements concerning deposit of, and publicity to be given to,
the charts or lists of geographical co-ordinates showing the limits
referred to in article 1, paragraph 1 (1), are set forth in Part VI.

4. Nothing in this article affects the establishment of the outer limits of
the continental shelf in accordance with Part VI or the validity of
agreements relating to delimitation between States with opposite or
adjacent coasts.


                             Article 135
       Legal status of the superjacent waters and air space

Neither this Part nor any rights granted or exercised pursuant thereto
shall affect the legal status of the waters superjacent to the Area or that
of the air space above those waters.


               SECTION 2. PRINCIPLES GOVERNING THE AREA

                             Article 136
                     Common heritage of mankind

The Area and its resources are the common heritage of mankind.

                             Article 137
             Legal status of the Area and its resources

1. No State shall claim or exercise sovereignty or sovereign rights over
any part of the Area or its resources, nor shall any State or natural or
juridical person appropriate any part thereof. No such claim or exercise of
sovereignty or sovereign rights nor such appropriation shall be recognized.

2. All rights in the resources of the Area are vested in mankind as a whole
on whose behalf the Authority shall act. These resources are not subject to
alienation. The minerals recovered from the Area, however, may only be
alienated in accordance with this Part and the rules, regulations and
procedures of the Authority.

3. No State or natural or juridical person shall claim, acquire or exercise
rights with respect to the minerals recovered from the Area except in
accordance with this Part. Otherwise, no such claim, acquisition or
exercise of such rights shall be recognized.

                             Article 138
         General conduct of States in relation to the Area

The general conduct of States in relation to the Area shall be in
accordance with the provisions of this Part, the principles embodied in the
Charter of the United Nations and other rules of international law in the
interests of maintaining peace and security and promoting international
co-operation and mutual understanding .

                             Article 139
  Responsibility to ensure compliance and liability for damage


1. States Parties shall have the responsibility to ensure that activities
in the Area, whether carried out by States Parties, or state enterprises or
natural or juridical persons which possess the nationality of States
Parties or are effectively controlled by them or their nationals, shall be
carried out in conformity with this Part. The same responsibility applies
to international organizations for activities in the Area carried out by
such organizations.

2. Without prejudice to the rules of international law and Annex III,
article 22, damage caused by the failure of a State Party or international
organization to carry out its responsibilities under this Part shall entail
liability, States Parties or international organizations acting together
shall bear joint and several liability. A State Party shall not however be
liable for damage caused by any failure to comply with this Part by a
person whom it has sponsored under article 153, paragraph 2(b), if the
State Party has taken all necessary and appropriate measures to secure
effective compliance under article 153, paragraph 4, and Annex III, article
4, paragraph 4.

3. States Parties that are members of international organizations shall
take appropriate measures to ensure the implementation of this article with
respect to such organizations.

                             Article 140
                         Benefit of mankind

1. Activities in the Area shall, as specifically provided for in this Part,
be carried out for the benefit of mankind as a whole, irrespective of the
geographical location of States, whether coastal or land-locked, and taking
into particular consideration the interests and needs of developing States
and of peoples who have not attained full independence or other
self-governing status recognized by the United Nations in accordance with
General Assembly resolution 1514 (XV) and other relevant General Assembly
resolutions.

2. The Authority shall provide for the equitable sharing of financial and
other economic benefits derived from activities in the Area through any
appropriate mechanism on a non-discriminatory basis, in accordance with
article 160, paragraph 2 (f) (i).

                             Article 141
        Use of the Area exclusively for peaceful purposes

The Area shall be open to use exclusively for peaceful purposes by all
States, whether coastal or land-locked, without discrimination and without
prejudice to the other provisions of this Part.

                             Article 142
        Rights and legitimate interests of coastal States

1. Activities in the Area, with respect to resource deposits in the Area
which lie across limits of national jurisdiction, shall be conducted with
due regard to the rights and legitimate interests of any coastal State
across whose jurisdiction such deposits lie.

2. Consultations, including a system of prior notification, shall be
maintained with the State concerned, with a view to avoiding infringement
of such rights and interests. In cases where activities in the Area may
result in the exploitation of resources lying within national jurisdiction,
the prior consent of the coastal State concerned shall be required.

3. Neither this Part nor any rights granted or exercised pursuant thereto
shall affect the rights of coastal States to take such measures consistent
with the relevant provisions of Part XII as may be necessary to prevent,
mitigate or eliminate grave and imminent danger to their coastline, or
related interests from pollution or threat thereof or from other hazardous
occurrences resulting from or caused by any activities in the Area.

                             Article 143
                      Marine scientific research

1. Marine scientific research in the Area shall be carried out exclusively
for peaceful purposes and for the benefit of mankind as a whole in
accordance with Part XIII.

2. The Authority may carry out marine scientific research concerning the
Area and its resources, and may enter into contracts for that purpose. The
Authority shall promote and encourage the conduct of marine scientific
research in the Area, and shall co-ordinate and disseminate the results of
such research and analysis when available.

3. States Parties may carry out marine scientific research in the Area.
States Parties shall promote international co-operation in marine
scientific research in the Area by:

(a) participating in international programmes and encouraging
    co-operation in marine scientific research by personnel of different
    countries and of the Authority;
(b) ensuring that programmes are developed through the Authority or other
    international organizations as appropriate for the benefit of
    developing States and technologically less developed States with a
    view to:
    (i) strengthening their research capabilities;
    (ii) training their personnel and the personnel of the Authority in
    the techniques and applications of research;
    (iii) fostering the employment of their qualified personnel in
    research in the Area;
(c) effectively disseminating the results of research and analysis when
    available, through the Authority or other international channels when
    appropriate.

                             Article 144
                       Transfer of technology

1. The Authority shall take measures in accordance with this Convention:

(a) to acquire technology and scientific knowledge relating to activities
    in the Area; and
(b) to promote and encourage the transfer to developing States of such
    technology and scientific knowledge so that all States Parties
    benefit therefrom.

2. To this end the Authority and States Parties shall co.operate in
promoting the transfer of technology and scientific knowledge relating to
activities in the Area so that the Enterprise and all States Parties may
benefit therefrom. In particular they shall initiate and promote:
(a) programmes for the transfer of technology to the Enterprise and to
    developing States with regard to activities in the Area, including,
    inter alia, facilitating the access of the Enterprise and of
    developing States to the relevant technology, under fair and
    reasonable terms and conditions;
(b) measures directed towards the advancement of the technology of the
    Enterprise and the domestic technology of developing States,
    particularly by providing opportunities to personnel from the
    Enterprise and from developing States for training in marine science
    and technology and for their full participation in activities in the
    Area.


                             Article 145
               Protection of the marine environment

Necessary measures shall be taken in accordance with this Convention with
respect to activities in the Area to ensure effective protection for the
marine environment from harmful effects which may arise from such
activities. To this end the Authority shall adopt appropriate rules,
regulations and procedures for inter alia:

(a) the prevention, reduction and control of pollution and other hazards
    to the marine environment, including the coastline, and of
    interference with the ecological balance of the marine environment,
    particular attention being paid to the need for protection from
    harmful effects of such activities as drilling, dredging, excavation,
    disposal of waste, construction and operation or maintenance of
    installations, pipelines and other devices related to such
    activities;
(b) the protection and conservation of the natural resources of the Area
    and the prevention of damage to the flora and fauna of the marine
    environment.

                             Article 146
                       Protection of human life

With respect to activities in the Area, necessary measures shall be taken
to ensure effective protection of human life. To this end the Authority
shall adopt appropriate rules, regulations and procedures to supplement
existing international law as embodied in relevant treaties.

                             Article 147
     Accommodation of activities in the Area and in the marine
                             environment

1. Activities in the Area shall be carried out with reasonable regard for
other activities in the marine environment.

2. Installations used for carrying out activities in the Area shall be
subject to the following conditions:

(a) such installations shall be erected, emplaced and removed solely in
    accordance with this Part and subject to the rules, regulations and
    procedures of the Authority. Due notice must be given of the
    erection, emplacement and removal of such installations, and
    permanent means for giving warning of their presence must be
    maintained;
(b) such installations may not be established where interference may be
    caused to the use of recognized sea lanes essential to international
    navigation or in areas of intense fishing activity;
(c) safety zones shall be established around such installations with
    appropriate markings to ensure the safety of both navigation and the
    installations. The configuration and location of such safety zones
    shall not be such as to form a belt impeding the lawful access of
    shipping to particular maritime zones or navigation along
    international sea lanes;
(d) such installations shall be used exclusively for peaceful purposes;
(e) such installations do not possess the status of islands. They have no
    territorial sea of their own, and their presence does not affect the
    delimitation of the territorial sea, the exclusive economic zone or
    the continental shelf.

3. Other activities in the marine environment shall be conducted with
reasonable regard for activities in the Area.

                             Article 148
     Participation of developing States in activities in the Area

The effective participation of developing States in activities in the Area
shall be promoted as specifically provided for in this Part, having due
regard to their special interests and needs, and in particular to the
special need of the landlocked and geographically disadvantaged among them
to overcome obstacles arising from their disadvantaged location, including
remoteness from the Area and difficulty of access to and from it.

                             Article 149
               Archaeological and historical objects

All objects of an archaeological and historical nature found in the Area
shall be preserved or disposed of for the benefit of mankind as a whole,
particular regard being paid to the preferential rights of the State or
country of origin, or the State of cultural origin, or the State of
historical and archaeological origin.


                 SECTION 3. DEVELOPMENT OF RESOURCES
                             OF THE AREA

                             Article 150
             Policies relating to activities in the Area

Activities in the Area shall, as specifically provided for in this Part, be
carried out in such a manner as to foster healthy development of the world
economy and balanced growth of international trade, and to promote
international cooperation for the over-all development of all countries,
especially developing States, and with a view to ensuring:

(a) the development of the resources of the Area;
(b) orderly, safe and rational management of the resources of the Area,
    including the efficient conduct of activities in the Area and, in
    accordance with sound principles of conservation, the avoidance of
    unnecessary waste;
(c) the expansion of opportunities for participation in such activities
    consistent in particular with articles 144 and 148;
(d) participation in revenues by the Authority and the transfer of
    technology to the Enterprise and developing States as provided for in
    this Convention;
(e) increased availability of the minerals derived from the Area as
    needed in conjunction with minerals derived from other sources, to
    ensure supplies to consumers of such minerals;
(f) the promotion of just and stable prices remunerative to producers and
    fair to consumers for minerals derived both from the Area and from
    other sources, and the promotion of long-term equilibrium between
    supply and demand;
(g) the enhancement of opportunities for all States Parties, irrespective
    of their social and economic systems or geographical location, to
    participate in the development of the resources of the Area and the
    prevention of monopolization of activities in the Area;
(h) the protection of developing countries from adverse effects on their
    economies or on their export earnings resulting from a reduction in
    the price of an affected mineral, or in the volume of exports of that
    mineral, to the extent that such reduction is caused by activities in
    the Area, as provided in article 151;
(i) the development of the common heritage for the benefit of mankind as
    a whole; and
(j) conditions of access to markets for the imports of minerals produced
    from the resources of the Area and for imports of commodities
    produced from such minerals shall not be more favourable than the
    most favourable applied to imports from other sources.


                             Article 151
                        Production policies

1.   (a) Without prejudice to the objectives set forth in article 150 and
    for the purpose of implementing subparagraph (h) of that article, the
    Authority, acting through existing forums or such new arrangements or
    agreements as may be appropriate, in which all interested parties,
    including both producers and consumers, participate, shall take
    measures necessary to promote the growth, efficiency and stability of
    markets for those commodities produced from the minerals derived from
    the Area, at prices remunerative to producers and fair to consumers.
    All States Parties shall co-operate to this end.
(b) The Authority shall have the right to participate in any commodity
    conference dealing with those commodities and in which all interested
    parties including both producers and consumers participate. The
    Authority shall have the right to become a party to any arrangement
    or agreement resulting from such conferences. Participation of the
    Authority in any organs established under those arrangements or
    agreements shall be in respect of production in the Area and in
    accordance with the relevant rules of those organs.
(c) The Authority shall carry out its obligations under the arrangements
    or agreements referred to in this paragraph in a manner which assures
    a uniform and non-discriminatory implementation in respect of all
    production in the Area of the minerals concerned. In doing so, the
    Authority shall act in a manner consistent with the terms of existing
    contracts and approved plans of work of the Enterprise.

2.   (a) During the interim period specified in paragraph 3, commercial
    production shall not be undertaken pursuant to an approved plan of
    work until the operator has applied for and has been issued a
    production authorization by the Authority. Such production
    authorizations may not be applied for or issued more than five years
    prior to the planned commencement of commercial production under the
    plan of work unless, having regard to the nature and timing of
    project development, the rules, regulations and procedures of the
    Authority prescribe another period.
(b) In the application for the production authorization, the operator
    shall specify the annual quantity of nickel expected to be recovered
    under the approved plan of work. The application shall include a
    schedule of expenditures to be made by the operator after he has
    received the authorization which are reasonably calculated to allow
    him to begin commercial production on the date planned.
(c) For the purposes of subparagraphs (a) and (b), the Authority shall
    establish appropriate performance requirements in accordance with
    Annex III, article 17.
(d) The Authority shall issue a production authorization for the level of
    production applied for unless the sum of that level and the levels
    already authorized exceeds the nickel production ceiling, as
    calculated pursuant to paragraph 4 in the year of issuance of the
    authorization, during any year of planned production falling within
    the interim period.
(e) When issued, the production authorization and approved application
    shall become a part of the approved plan of work.
(f) If the operator's application for a production authorization is
    denied pursuant to subparagraph (d), the operator may apply again to
    the Authority at any time.

3. The interim period shall begin five years prior to 1 January of the year
in which the earliest commercial production is planned to commence under an
approved plan of work. If the earliest commercial production is delayed
beyond the year originally planned, the beginning of the interim period and
the production ceiling originally calculated shall be adjusted accordingly.
The interim period shall last 25 years or until the end of the Review
Conference referred to in article 155 or until the day when such new
arrangements or agreements as are referred to in paragraph 1 enter into
force, whichever is earliest. The Authority shall resume the power provided
in this article for the remainder of the interim period if the said
arrangements or agreements should lapse or become ineffective for any
reason whatsoever.

4.   (a) The production ceiling for any year of the interim period shall
    be the sum of:
    (i) the difference between the trend line values for nickel
    consumption as calculated pursuant to subparagraph (b), for the year
    immediately prior to the year of the earliest commercial production
    and the year immediately prior to the commencement of the interim
    period; and
    (ii) sixty per cent of the difference between the trend line values
    for nickel consumption, as calculated pursuant to subparagraph (b),
    for the year for which the production authorization is being applied
    for and the year immediately prior to the year of the earliest
    commercial production.
(b) For the purposes of subparagraph (a):
    (i) trend line values used for computing the nickel production
    ceiling shall be those annual nickel consumption values on a trend
    line computed during the year in which a production authorization is
    issued. The trend line shall be derived from a linear regression of
    the logarithms of actual nickel consumption for the most recent
    15-year period for which such data are available, time being the
    independent variable. This trend line shall be referred to as the
    original trend line;
    (ii) if the annual rate of increase of the original trend line is
    less than 3 per cent, then the trend line used to determine the
    quantities referred to in subparagraph (a) shall instead be one
    passing through the original trend line at the value for the first
    year of the relevant 15-year period, and increasing at 3 per cent
    annually; provided however that the production ceiling established
    for any year of the interim period may not in any case exceed the
    difference between the original trend line value for that year and
    the original trend line value for the year immediately prior to the
    commencement of the interim period.

5. The Authority shall reserve to the Enterprise for its initial production
a quantity of 38,000 metric tonnes of nickel from the available production
ceiling calculated pursuant to paragraph 4.

6.   (a) An operator may in any year produce less than or up to 8 per cent
    more than the level of annual production of minerals from
    polymetallic nodules specified in his production authorization,
    provided that the over-all amount of production shall not exceed that
    specified in the authorization. Any excess over 8 per cent and up to
    20 per cent in any year, or any excess in the first and subsequent
    years following two consecutive years in which excesses occur, shall
    be negotiated with the Authority, which may require the operator to
    obtain a supplementary production authorization to cover additional
    production.
(b) Applications for such supplementary production authorizations shall
    be considered by the Authority only after all pending applications by
    operators who have not yet received production authorizations have
    been acted upon and due account has been taken of other likely
    applicants. The Authority shall be guided by the principle of not
    exceeding the total production allowed under the production ceiling
    in any year of the interim period. It shall not authorize the
    production under any plan of work of a quantity in excess of 46,500
    metric tonnes of nickel per year.

7. The levels of production of other metals such as copper, cobalt and
manganese extracted from the polymetallic nodules that are recovered
pursuant to a production authorization should not be higher than those
which would have been produced had the operator produced the maximum level
of nickel from those nodules pursuant to this article. The Authority shall
establish rules, regulations and procedures pursuant to Annex III, article
17, to implement this paragraph.

8. Rights and obligations relating to unfair economic practices under
relevant multilateral trade agreements shall apply to the exploration for
and exploitation of minerals from the Area. In the settlement of disputes
arising under this provision, States Parties which are Parties to such
multilateral trade agreements shall have recourse to the dispute settlement
procedures of such agreements.

9. The Authority shall have the power to limit the level of production of
minerals from the Area, other than minerals from polymetallic nodules,
under such conditions and applying such methods as may be appropriate by
adopting regulations in accordance with article 161, paragraph 8.

10. Upon the recommendation of the Council on the basis of advice from the
Economic Planning Commission, the Assembly shall establish a system of
compensation or take other measures of economic adjustment assistance
including co-operation with specialized agencies and other international
organizations to assist developing countries which suffer serious adverse
effects on their export earnings or economies resulting from a reduction in
the price of an affected mineral or in the volume of exports of that
mineral, to the extent that such reduction is caused by activities in the
Area. The Authority on request shall initiate studies on the problems of
those States which are likely to be most seriously affected with a view to
minimizing their difficulties and assisting them in their economic
adjustment.

                             Article 152
          Exercise of powers and functions by the Authority

1. The Authority shall avoid discrimination in the exercise of its powers
and functions, including the granting of opportunities for activities in
the Area.

2. Nevertheless, special consideration for developing States, including
particular consideration for the land-locked and geographically
disadvantaged among them, specifically provided for in this Part shall be
permitted.

                             Article 153
              System of exploration and exploitation

1. Activities in the Area shall be organized, carried out and controlled by
the Authority on behalf of mankind as a whole in accordance with this
article as well as other relevant provisions of this Part and the relevant
Annexes, and the rules, regulations and procedures of the Authority.

2. Activities in the Area shall be carried out as prescribed in paragraph
3:

(a) by the Enterprise, and
(b) in association with the Authority by States Parties, or state
    enterprises or natural or juridical persons which possess the
    nationality of States Parties or are effectively controlled by them
    or their nationals, when sponsored by such States, or any group of
    the foregoing which meets the requirements provided in this Part and
    in Annex III.

3. Activities in the Area shall be carried out in accordance with a formal
written plan of work drawn up in accordance with Annex III and approved by
the Council after review by the Legal and Technical Commission. In the case
of activities in the Area carried out as authorized by the Authority by the
entities specified in paragraph 2(b), the plan of work shall, in accordance
with Annex III, article 3, be in the form of a contract. Such contracts may
provide for joint arrangements in accordance with Annex III, article 11.

4. The Authority shall exercise such control over activities in the Area as
is necessary for the purpose of securing compliance with the relevant
provisions of this Part and the Annexes relating thereto, and the rules,
regulations and procedures of the Authority, and the plans of work approved
in accordance with paragraph 3. States Parties shall assist the Authority
by taking all measures necessary to ensure such compliance in accordance
with article 139.

5. The Authority shall have the right to take at any time any measures
provided for under this Part to ensure compliance with its provisions and
the exercise of the functions of control and regulation assigned to it
thereunder or under any contract. The Authority shall have the right to
inspect all installations in the Area used in connection with activities in
the Area.

6. A contract under paragraph 3 shall provide for security of tenure.
Accordingly, the contract shall not be revised, suspended or terminated
except in accordance with Annex III, articles 18 and 19.

                             Article 154
                           Periodic review

Every five years from the entry into force of this Convention, the Assembly
shall undertake a general and systematic review of the manner in which the
international regime of the Area established in this Convention has
operated in practice. In the light of this review the Assembly may take, or
recommend that other organs take, measures in accordance with the
provisions and procedures of this Part and the Annexes relating thereto
which will lead to the improvement of the operation of the regime.

                             Article 155
                       The Review Conference

1. Fifteen years from 1 January of the year in which the earliest
commercial production commences under an approved plan of work, the
Assembly shall convene a conference for the review of those provisions of
this Part and the relevant Annexes which govern the system of exploration
and exploitation of the resources of the Area. The Review Conference shall
consider in detail, in the light of the experience acquired during that
period:

(a) whether the provisions of this Part which govern the system of
    exploration and exploitation of the resources of the Area have
    achieved their aims in all respects, including whether they have
    benefited mankind as a whole;
(b) whether, during the 15-year period, reserved areas have been
    exploited in an effective and balanced manner in comparison with
    non-reserved areas;
(c) whether the development and use of the Area and its resources have
    been undertaken in such a manner as to foster healthy development of
    the world economy and balanced growth of international trade;
(d) whether monopolization of activities in the Area has been prevented;
(e) whether the policies set forth in articles 150 and 151 have been
    fulfilled; and
(f) whether the system has resulted in the equitable sharing of benefits
    derived from activities in the Area, taking into particular
    consideration the interests and needs of the developing States.


2. The Review Conference shall ensure the maintenance of the principle of
the common heritage of mankind, the international regime designed to ensure
equitable exploitation of the resources of the Area for the benefit of all
countries, especially the developing States, and an Authority to organize,
conduct and control activities in the Area. It shall also ensure the
maintenance of the principles laid down in this Part with regard to the
exclusion of claims or exercise of sovereignty over any part of the Area,
the rights of States and their general conduct in relation to the Area, and
their participation in activities in the Area in conformity with this
Convention, the prevention of monopolization of activities in the Area, the
use of the Area exclusively for peaceful purposes, economic aspects of
activities in the Area, marine scientific research, transfer of technology,
protection of the marine environment, protection of human life, rights of
coastal States, the legal status of the waters superjacent to the Area and
that of the air space above those waters and accommodation between
activities in the Area and other activities in the marine environment.

3. The decision-making procedure applicable at the Review Conference shall
be the same as that applicable at the Third United Nations Conference on
the Law of the Sea. The Conference shall make every effort to reach
agreement on any amendments by way of consensus and there should be no
voting on such matters until all efforts at achieving consensus have been
exhausted.

4. If, five years after its commencement, the Review Conference has not
reached agreement on the system of exploration and exploitation of the
resources of the Area, it may decide during the ensuing 12 months, by a
three-fourths majority of the States Parties, to adopt and submit to the
States Parties for ratification or accession such amendments changing or
modifying the system as it determines necessary and appropriate. Such
amendments shall enter into force for all States Parties 12 months after
the deposit of instruments of ratification or accession by three fourths of
the States Parties.

5. Amendments adopted by the Review Conference pursuant to this article
shall not affect rights acquired under existing contracts.


                      SECTION 4. THE AUTHORITY

                   SUBSECTION A. GENERAL PROVISIONS

                             Article 156
                   Establishment of the Authority

1. There is hereby established the International Sea-Bed Authority, which
shall function in accordance with this Part.

2. All States Parties are ipso facto members of the Authority.

3. Observers at the Third United Nations Conference on the Law of the Sea
who have signed the Final Act and who are not referred to in article 305,
paragraph 1 (c), (d), (e) or (f), shall have the right to participate in
the Authority as observers, in accordance with its rules, regulations and
procedures.

4. The seat of the Authority shall be in Jamaica.

5. The Authority may establish such regional centres or offices as it deems
necessary for the exercise of its functions.

                             Article 157
        Nature and fundamental principles of the Authority


1. The Authority is the organization through which States Parties shall, in
accordance with this Part, organize and control activities in the Area,
particularly with a view to administering the resources of the Area.

2. The powers and functions of the Authority shall be those expressly
conferred upon it by this Convention. The Authority shall have such
incidental powers, consistent with this Convention, as are implicit in and
necessary for the exercise of those powers and functions with respect to
activities in the Area.

3. The Authority is based on the principle of the sovereign equality of all
its members.

4. All members of the Authority shall fulfil in good faith the obligations
assumed by them in accordance with this Part in order to ensure to all of
them the rights and benefits resulting from membership.

                             Article 158
                      Organs of the Authority

1. There are hereby established, as the principal organs of the Authority,
an Assembly, a Council and a Secretariat.

2. There is hereby established the Enterprise, the organ through which the
Authority shall carry out the functions referred to in article 170,
paragraph 1.

3. Such subsidiary organs as may be found necessary may be established in
accordance with this Part.

4. Each principal organ of the Authority and the Enterprise shall be
responsible for exercising those powers and functions which are conferred
upon it. In exercising such powers and functions each organ shall avoid
taking any action which may derogate from or impede the exercise of
specific powers and functions conferred upon another organ.


                      SUBSECTION B. THE ASSEMBLY

                             Article 159
                  Composition, procedure and voting

1. The Assembly shall consist of all the members of the Authority. Each
member shall have one representative in the Assembly, who may be
accompanied by alternates and advisers.

2. The Assembly shall meet in regular annual sessions and in such special
sessions as may be decided by the Assembly, or convened by the Secretary-
General at the request of the Council or of a majority of the members of
the Authority.

3. Sessions shall take place at the seat of the Authority unless otherwise
decided by the Assembly.

4. The Assembly shall adopt its rules of procedure. At the beginning of
each regular session, it shall elect its President and such other officers
as may be required. They shall hold office until a new President and other
officers are elected at the next regular session.

5. A majority of the members of the Assembly shall constitute a quorum.

6. Each member of the Assembly shall have one vote.

7. Decisions on questions of procedure, including decisions to convene
special sessions of the Assembly, shall be taken by a majority of the
members present and voting.

8. Decisions on questions of substance shall be taken by a two-thirds
majority of the members present and voting, provided that such majority
includes a majority of the members participating in the session. When the
issue arises as to whether a question is one of substance or not, that
question shall be treated as one of substance unless otherwise decided by
the Assembly by the majority required for decisions on questions of
substance.

9. When a question of substance comes up for voting for the first time, the
President may, and shall, if requested by at least one fifth of the members
of the Assembly, defer the issue of taking a vote on that question for a
period not exceeding five calendar days. This rule may be applied only once
to any question, and shall not be applied so as to defer the question
beyond the end of the session.

10. Upon a written request addressed to the President and sponsored by at
least one fourth of the members of the Authority for an advisory opinion on
the conformity with this Convention of a proposal before the Assembly on
any matter, the Assembly shall request the Sea-Bed Disputes Chamber of the
International Tribunal for the Law of the Sea to give an advisory opinion
thereon and shall defer voting on that proposal pending receipt of the
advisory opinion by the Chamber. If the advisory opinion is not received
before the final week of the session in which it is requested, the Assembly
shall decide when it will meet to vote upon the deferred proposal.

                             Article 160
                        Powers and functions

1. The Assembly, as the sole organ of the Authority consisting of all the
members, shall be considered the supreme organ of the Authority to which
the other principal organs shall be accountable as specifically provided
for in this Convention. The Assembly shall have the power to establish
general policies in conformity with the relevant provisions of this
Convention on any question or matter within the competence of the
Authority.

2. In addition, the powers and functions of the Assembly shall be:

(a) to elect the members of the Council in accordance with article 161;
(b) to elect the Secretary-General from among the candidates proposed by
    the Council;
(c) to elect, upon the recommendation of the Council, the members of the
    Governing Board of the Enterprise and the Director-General of the
    Enterprise;
(d) to establish such subsidiary organs as it finds necessary for the
    exercise of its functions in accordance with this Part. In the
    composition of these subsidiary organs due account shall be taken of
    the principle of equitable geographical distribution and of special
    interests and the need for members qualified and competent in the
    relevant technical questions dealt with by such organs;
(e) to assess the contributions of members to the administrative budget
    of the Authority in accordance with an agreed scale of assessment
    based upon the scale used for the regular budget of the United
    Nations until the Authority shall have sufficient income from other
    sources to meet its administrative expenses;
(f) (i) to consider and approve, upon the recommendation of the Council
    the rules, regulations and procedures on the equitable sharing of
    financial and other economic benefits derived from activities in the
    Area and the payments and contributions made pursuant to article 82,
    taking into particular consideration the interests and needs of
    developing States and peoples who have not attained full independence
    or other self-governing status. If the Assembly does not approve the
    recommendations of the Council, the Assembly shall return them to the
    Council for reconsideration in the light of the views expressed by
    the Assembly;
    (ii) to consider and approve the rules, regulations and procedures of
    the Authority, and any amendments thereto, provisionally adopted by
    the Council pursuant to article 162, paragraph 2 (o)(ii). These
    rules, regulations and procedures shall relate to prospecting,
    exploration and exploitation in the Area, the financial management
    and internal administration of the Authority, and, upon the
    recommendation of the Governing Board of the Enterprise, to the
    transfer of funds from the Enterprise to the Authority;
(g) to decide upon the equitable sharing of financial and other economic
    benefits derived from activities in the Area, consistent with this
    Convention and the rules, regulations and procedures of the
    Authority;
(h) to consider and approve the proposed annual budget of the Authority
    submitted by the Council;
(i) to examine periodic reports from the Council and from the Enterprise
    and special reports requested from the Council or any other organ of
    the Authority;
(j) to initiate studies and make recommendations for the purpose of
    promoting international co-operation concerning activities in the
    Area and encouraging the progressive development of international law
    relating thereto and its codification;
(k) to consider problems of a general nature in connection with
    activities in the Area arising in particular for developing States,
    as well as those problems for States in connection with activities in
    the Area that are due to their geographical location, particularly
    for land-locked and geographically disadvantaged States;
(l) to establish, upon the recommendation of the Council, on the basis of
    advice from the Economic Planning Commission, a system of
    compensation or other measures of economic adjustment assistance as
    provided in article 151, paragraph 10;
(m) to suspend the exercise of rights and privileges of membership
    pursuant to article 185;
(n) to discuss any question or matter within the competence of the
    Authority and to decide as to which organ of the Authority shall deal
    with any such question or matter not specifically entrusted to a
    particular organ, consistent with the distribution of powers and
    functions among the organs of the Authority.


                      SUBSECTION C. THE COUNCIL

                             Article 161
                 Composition, procedure and voting

1. The Council shall consist of 36 members of the Authority elected by the
Assembly in the following order:

(a) four members from among those States Parties which, during the last
    five years for which statistics are available, have either consumed
    more than 2 per cent of total world consumption or have had net
    imports of more than 2 per cent of total world imports of the
    commodities produced from the categories of minerals to be derived
    from the Area, and in any case one State from the Eastern European
    (Socialist) region, as well as the largest consumer;
(b) four members from among the eight States Parties which have the
    largest investments in preparation for and in the conduct of
    activities in the Area, either directly or through their nationals,
    including at least one State from the Eastern European (Socialist)
    region;
(c) four members from among States Parties which on the basis of
    production in areas under their jurisdiction are major net exporters
    of the categories of minerals to be derived from the Area, including
    at least two developing States whose exports of such minerals have a
    substantial bearing upon their economies;
(d) six members from among developing States Parties, representing
    special interests. The special interests to be represented shall
    include those of States with large populations, States which are
    land-locked or geographically disadvantaged, States which are major
    importers of the categories of minerals to be derived from the Area,
    States which are potential producers of such minerals, and least
    developed States;
(e) eighteen members elected according to the principle of ensuring an
    equitable geographical distribution of seats in the Council as a
    whole, provided that each geographical region shall have at least one
    member elected under this subparagraph. For this purpose, the
    geographical regions shall be Africa, Asia, Eastern European
    (Socialist), Latin America and Western European and Others.

2. In electing the members of the Council in accordance with paragraph 1,
the Assembly shall ensure that:

(a) land-locked and geographically disadvantaged States are represented
    to a degree which is reasonably proportionate to their representation
    in the Assembly;
(b) coastal States, especially developing States, which do not qualify
    under paragraph 1 (a), (b), (c) or (d) are represented to a degree
    which is reasonably proportionate to their representation in the
    Assembly;
(c) each group of States Parties to be represented on the Council is
    represented by those members, if any, which are nominated by that
    group.

3. Elections shall take place at regular sessions of the Assembly. Each
member of the Council shall be elected for four years. At the first
election, however, the term of one half of the members of each group
referred to in paragraph 1 shall be two years.

4. Members of the Council shall be eligible for re-election, but due regard
should be paid to the desirability of rotation of membership.

5. The Council shall function at the seat of the Authority, and shall meet
as often as the business of the Authority may require, but not less than
three times a year.
6. A majority of the members of the Council shall constitute a quorum.

7. Each member of the Council shall have one vote.

8.   (a) Decisions on questions of procedure shall be taken by a majority
    of the members present and voting.
(b) Decisions on questions of substance arising under the following
    provisions shall be taken by a two-thirds majority of the members
    present and voting, provided that such majority includes a majority
    of the members of the Council: article 162, paragraph 2,
    subparagraphs (f); (g); (h); (i); (n); (p); (v); article 191.
(c) Decisions on questions of substance arising under the following
    provisions shall be taken by a three-fourths majority of the members
    present and voting, provided that such majority includes a majority
    of the members of the Council: article 162, paragraph 1; article 162,
    paragraph 2, subparagraphs (a); (b); (c); (d); (e); (I); (q); (r);
    (s); (t); (u) in cases of non-compliance by a contractor or a
    sponsor; (w) provided that orders issued thereunder may be binding
    for not more than 30 days unless confirmed by a decision taken in
    accordance with subparagraph (d); article 162, paragraph 2,
    subparagraphs (x); (y); (z); article 163, paragraph 2; article 174,
    paragraph 3; Annex IV, article 11.
(d) Decisions on questions of substance arising under the following
    provisions shall be taken by consensus: article 162, paragraph 2(m)
    and (o); adoption of amendments to Part XI.
(e) For the purposes of subparagraphs (d), (f) and (g), "consensus" means
    the absence of any formal objection. Within 14 days of the submission
    of a proposal to the Council, the President of the Council shall
    determine whether there would be a formal objection to the adoption
    of the proposal. If the President determines that there would be such
    an objection, the President shall establish and convene, within three
    days following such determination, a conciliation committee
    consisting of not more than nine members of the Council, with the
    President as chairman, for the purpose of reconciling the differences
    and producing a proposal which can be adopted by consensus. The
    committee shall work expeditiously and report to the Council within
    14 days following its establishment. If the committee is unable to
    recommend a proposal which can be adopted by consensus, it shall set
    out in its report the grounds on which the proposal is being opposed.
(f) Decisions on questions not listed above which the Council is
    authorized to take by the rules, regulations and procedures of the
    Authority or otherwise shall be taken pursuant to the subparagraphs
    of this paragraph specified in the rules, regulations and procedures
    or, if not specified therein, then pursuant to the subparagraph
    determined by the Council if possible in advance, by consensus.
(g) When the issue arises as to whether a question is within subparagraph
    (a), (b), (c) or (d), the question shall be treated as being within
    the subparagraph requiring the higher or highest majority or
    consensus as the case may be, unless otherwise decided by the Council
    by the said majority or by consensus.

9. The Council shall establish a procedure whereby a member of the
Authority not represented on the Council may send a representative to
attend a meeting of the Council when a request is made by such member, or a
matter particularly affecting it is under consideration. Such a
representative shall be entitled to participate in the deliberations but
not to vote.

                             Article 162
                         Powers and functions

1. The Council is the executive organ of the Authority. The Council shall
have the power to establish, in conformity with this Convention and the
general policies established by the Assembly, the specific policies to be
pursued by the Authority on any question or matter within the competence of
the Authority.

2. In addition, the Council shall:

(a) supervise and co-ordinate the implementation of the provisions of
    this Part on all questions and matters within the competence of the
    Authority and invite the attention of the Assembly to cases of
    non-compliance;
(b) propose to the Assembly a list of candidates for the election of the
    Secretary-General;
(c) recommend to the Assembly candidates for the election of the members
    of the Governing Board of the Enterprise and the Director-General of
    the Enterprise;
(d) establish, as appropriate, and with due regard to economy and
    efficiency, such subsidiary organs as it finds necessary for the
    exercise of its functions in accordance with this Part. In the
    composition of subsidiary organs, emphasis shall be placed on the
    need for members qualified and competent in relevant technical
    matters dealt with by those organs provided that due account shall be
    taken of the principle of equitable geographical distribution and of
    special interests;
(e) adopt its rules of procedure including the method of selecting its
    president;
(f) enter into agreements with the United Nations or other international
    organizations on behalf of the Authority and within its competence,
    subject to approval by the Assembly;
(g) consider the reports of the Enterprise and transmit them to the
    Assembly with its recommendations;
(h) present to the Assembly annual reports and such special reports as
    the Assembly may request;
(i) issue directives to the Enterprise in accordance with article 170;
(j) approve plans of work in accordance with Annex III, article 6. The
    Council shall act upon each plan of work within 60 days of its
    submission by the Legal and Technical Commission at a session of the
    Council in accordance with the following procedures:
     (i) if the Commission recommends the approval of a plan of work, it
    shall be deemed to have been approved by the Council if no member of
    the Council submits in writing to the President within 14 days a
    specific objection alleging non-compliance with the requirements of
    Annex III, article 6. If there is an objection, the conciliation
    procedure set forth in article 161, paragraph 8(e), shall apply. If,
    at the end of the conciliation procedure, the objection is still
    maintained, the plan of work shall be deemed to have been approved by
    the Council unless the Council disapproves it by consensus among its
    members excluding any State or States making the application or
    sponsoring the applicant;
    (ii) if the Commission recommends the disapproval of a plan of work
    or does not make a recommendation, the Council may approve the plan
    of work by a three-fourths majority of the members present and
    voting, provided that such majority includes a majority of the
    members participating in the session;
(k) approve plans of work submitted by the Enterprise in accordance with
    Annex IV, article 12, applying, mutatis mutandis, the procedures set
    forth in subparagraph (j);
(l) exercise control over activities in the Area in accordance with
    article 153, paragraph 4, and the rules, regulations and procedures
    of the Authority;
(m) take, upon the recommendation of the Economic Planning Commission,
    necessary and appropriate measures in accordance with article 150,
    subparagraph (h), to provide protection from the adverse economic
    effects specified therein;
(n) make recommendations to the Assembly, on the basis of advice from the
    Economic Planning Commission, for a system of compensation or other
    measures of economic adjustment assistance as provided in article
    151, paragraph 10;
(o) (i) recommend to the Assembly rules, regulations and procedures on
    the equitable sharing of financial and other economic benefits
    derived from activities in the Area and the payments and
    contributions made pursuant to article 82, taking into particular
    consideration the interests and needs of the developing States and
    peoples who have not attained full independence or other
    self-governing status;
    (ii) adopt and apply provisionally, pending approval by the Assembly,
    the rules, regulations and procedures of the Authority, and any
    amendments thereto, taking into account the recommendations of the
    Legal and Technical Commission or other subordinate organ concerned.
    These rules, regulations and procedures shall relate to prospecting,
    exploration and exploitation in the Area and the financial management
    and internal administration of the Authority. Priority shall be given
    to the adoption of rules, regulations and procedures for the
    exploration for and exploitation of polymetallic nodules. Rules,
    regulations and procedures for the exploration for and exploitation
    of any resource other than polymetallic nodules shall be adopted
    within three years from the date of a request to the Authority by any
    of its members to adopt such rules, regulations and procedures in
    respect of such resource. All rules, regulations and procedures shall
    remain in effect on a provisional basis until approved by the
    Assembly or until amended by the Council in the light of any views
    expressed by the Assembly;
(p) review the collection of all payments to be made by or to the
    Authority in connection with operations pursuant to this Part;
(q) make the selection from among applicants for production
    authorizations pursuant to Annex III, article 7, where such selection
    is required by that provision;
(r) submit the proposed annual budget of the Authority to the Assembly
    for its approval;
(s) make recommendations to the Assembly concerning policies on any
    question or matter within the competence of the Authority;
(t) make recommendations to the Assembly concerning suspension of the
    exercise of the rights and privileges of membership pursuant to
    article 185;
(u) institute proceedings on behalf of the Authority before the Sea-Bed
    Disputes Chamber in cases of non-compliance;
(v) notify the Assembly upon a decision by the Sea-Bed Disputes Chamber
    in proceedings instituted under subparagraph (u), and make any
    recommendations which it may find appropriate with respect to
    measures to be taken;
(w) issue emergency orders, which may include orders for the suspension
    or adjustment of operations, to prevent serious harm to the marine
    environment arising out of activities in the Area;
(x) disapprove areas for exploitation by contractors or the Enterprise in
    cases where substantial evidence indicates the risk of serious harm
    to the marine environment;
(y) establish a subsidiary organ for the elaboration of draft financial
    rules, regulations and procedures relating to:
    (i) financial management in accordance with articles 171 to 175; and
    (ii) financial arrangements in accordance with Annex III, article 13
    and article 17, paragraph 1 (c);
(z) establish appropriate mechanisms for directing and supervising a
    staff of inspectors who shall inspect activities in the Area to
    determine whether this Part, the rules, regulations and procedures of
    the Authority, and the terms and conditions of any contract with the
    Authority are being complied with.

                             Article 163
                       Organs of the Council

1. There are hereby established the following organs of the Council:

(a) an Economic Planning Commission;
(b) a Legal and Technical Commission.

2. Each Commission shall be composed of 15 members, elected by the Council
from among the candidates nominated by the States Parties. However, if
necessary, the Council may decide to increase the size of either Commission
having due regard to economy and efficiency.

3. Members of a Commission shall have appropriate qualifications in the
area of competence of that Commission. States Parties shall nominate
candidates of the highest standards of competence and integrity with
qualifications in relevant fields so as to ensure the effective exercise of
the functions of the Commissions.

4. In the election of members of the Commissions, due account shall be
taken of the need for equitable geographical distribution and the
representation of special interests.

5. No State Party may nominate more than one candidate for the same
Commission. No person shall be elected to serve on more than one
Commission.

6. Members of the Commissions shall hold office for a term of five years.
They shall be eligible for re-election for a further term.

7. In the event of the death, incapacity or resignation of a member of a
Commission prior to the expiration of the term of office, the Council shall
elect for the remainder of the term, a member from the same geographical
region or area of interest.

8. Members of Commissions shall have no financial interest in any activity
relating to exploration and exploitation in the Area. Subject to their
responsibilities to the Commissions upon which they serve, they shall not
disclose, even after the termination of their functions, any industrial
secret, proprietary data which are transferred to the Authority in
accordance with Annex III, article 14, or any other confidential
information coming to their knowledge by reason of their duties for the
Authority.

9. Each Commission shall exercise its functions in accordance with such
guidelines and directives as the Council may adopt.

10. Each Commission shall formulate and submit to the Council for approval
such rules and regulations as may be necessary for the efficient conduct of
the Commission's functions.

11. The decision-making procedures of the Commissions shall be established
by the rules, regulations and procedures of the Authority. Recommendations
to the Council shall, where necessary, be accompanied by a summary on the
divergencies of opinion in the Commission.

12. Each Commission shall normally function at the seat of the Authority
and shall meet as often as is required for the efficient exercise of its
functions.

13. In the exercise of its functions, each Commission may, where
appropriate, consult another commission, any competent organ of the United
Nations or of its specialized agencies or any international organizations
with competence in the subject-matter of such consultation.

                             Article 164
                  The Economic Planning Commission

1. Members of the Economic Planning Commission shall have appropriate
qualifications such as those relevant to mining, management of mineral
resource activities, international trade or international economics. The
Council shall endeavour to ensure that the membership of the Commission
reflects all appropriate qualifications. The Commission shall include at
least two members from developing States whose exports of the categories of
minerals to be derived from the Area have a substantial bearing upon their
economies.

2. The Commission shall:

(a) propose, upon the request of the Council, measures to implement
    decisions relating to activities in the Area taken in accordance with
    this Convention;
(b) review the trends of and the factors affecting supply, demand and
    prices of materials which may be derived from the Area, bearing in
    mind the interests of both importing and exporting countries, and in
    particular of the developing States among them;
(c) examine any situation likely to lead to the adverse effects referred
    to in article 150, subparagraph (h), brought to its attention by the
    State Party or States Parties concerned, and make appropriate
    recommendations to the Council;
(d) propose to the Council for submission to the Assembly, as provided in
    article 151, paragraph 10, a system of compensation or other measures
    of economic adjustment assistance for developing States which suffer
    adverse effects caused by activities in the Area. The Commission
    shall make the recommendations to the Council that are necessary for
    the application of the system or other measures adopted by the
    Assembly in specific cases.

                             Article 165
                 The Legal and Technical Commission

1. Members of the Legal and Technical Commission shall have appropriate
qualifications such as those relevant to exploration for and exploitation
and processing of mineral resources, oceanology, protection of the marine
environment, or economic or legal matters relating to ocean mining and
related fields of expertise. The Council shall endeavour to ensure that the
membership of the Commission reflects all appropriate qualifications.

2. The Commission shall:

(a) make recommendations with regard to the exercise of the Authority's
    functions upon the request of the Council
(b) review formal written plans of work for activities in the Area in
    accordance with article 153, paragraph 3, and submit appropriate
    recommendations to the Council. The Commission shall base its
    recommendations solely on the grounds stated in Annex III and shall
    report fully thereon to the Council;
(c) supervise, upon the request of the Council, activities in the Area,
    where appropriate, in consultation and collaboration with any entity
    carrying out such activities or State or States concerned and report
    to the Council;
(d) prepare assessments of the environmental implications of activities
    in the Area;
(e) make recommendations to the Council on the protection of the marine
    environment, taking into account the views of recognized experts in
    that field;
(f) formulate and submit to the Council the rules regulations and
    procedures referred to in article 162, paragraph 2(o) taking into
    account all relevant factors including assessments of the
    environmental implications of activities in the Area;
(g) keep such rules, regulations and procedures under review and
    recommend to the Council from time to time such amendments thereto as
    it may deem necessary or desirable;
(h) make recommendations to the Council regarding the establishment of a
    monitoring programme to observe, measure evaluate and analyse by
    recognized scientific methods, on a regular basis, the risks or
    effects of pollution of the marine environment resulting from
    activities in the Area, ensure that existing regulations are adequate
    and are complied with and co-ordinate the implementation of the
    monitoring programme approved by the Council;
(i) recommend to the Council that proceedings be instituted on behalf of
    the Authority before the Sea-Bed Disputes Chamber, in accordance with
    this Part and the relevant Annexes taking into account particularly
    article 187;
(j) make recommendations to the Council with respect to measures to be
    taken, upon a decision by the Sea-Bed Disputes Chamber in proceedings
    instituted in accordance with subparagraph (i);
(k) make recommendations to the Council to issue emergency orders, which
    may include orders for the suspension or adjustment of operations, to
    prevent serious harm to the marine environment arising out of
    activities in the Area. Such recommendations shall be taken up by the
    Council on a priority basis;
(l) make recommendations to the Council to disapprove areas for
    exploitation by contractors or the Enterprise in cases where
    substantial evidence indicates the risk of serious harm to the marine
    environment;
(m) make recommendations to the Council regarding the direction and
    supervision of a staff of inspectors who shall inspect activities in
    the Area to determine whether the provisions of this Part, the rules,
    regulations and procedures of the Authority and the terms and
    conditions of any contract with the Authority are being complied
    with;
(n) calculate the production ceiling and issue production authorizations
    on behalf of the Authority pursuant to article 151, paragraphs 2 to
    7, following any necessary selection among applicants for production
    authorizations by the Council in accordance with Annex III, article
    7.

3. The members of the Commission shall, upon request by any State Party or
other party concerned, be accompanied by a representative of such State or
other party concerned when carrying out their function of supervision and
inspection.


                    SUBSECTION D. THE SECRETARIAT

                             Article 166
                           The Secretariat

1. The Secretariat of the Authority shall comprise a Secretary-General and
such staff as the Authority may require.

2. The Secretary-General shall be elected for four years by the Assembly
from among the candidates proposed by the Council and may be re-elected.

3. The Secretary-General shall be the chief administrative officer of the
Authority, and shall act in that capacity in all meetings of the Assembly,
of the Council and of any subsidiary organ, and shall perform such other
administrative functions as are entrusted to the Secretary-General by these
organs.

4. The Secretary-General shall make an annual report to the Assembly on the
work of the Authority.

                             Article 167
                     The staff of the Authority

1. The staff of the Authority shall consist of such qualified scientific
and technical and other personnel as may be required to fulfil the
administrative functions of the Authority.

2. The paramount consideration in the recruitment and employment of the
staff and in the determination of their conditions of service shall be the
necessity of securing the highest standards of efficiency, competence and
integrity. Subject to this consideration, due regard shall be paid to the
importance of recruiting the staff on as wide a geographical basis as
possible.

3. The staff shall be appointed by the Secretary-General. The terms and
conditions on which they shall be appointed, remunerated and dismissed
shall be in accordance with the rules, regulations and procedures of the
Authority.

                             Article 168
            International character of the Secretariat


1. In the performance of their duties the Secretary-General and the staff
shall not seek or receive instructions from any government or from any
other source external to the Authority. They shall refrain from any action
which might reflect on their position as international officials
responsible only to the Authority. Each State Party undertakes to respect
the exclusively international character of the responsibilities of the
Secretary-General and the staff and not to seek to influence them in the
discharge of their responsibilities. Any violation of responsibilities by a
staff member shall be submitted to the appropriate administrative tribunal
as provided in the rules, regulations and procedures of the Authority.

2. The Secretary-General and the staff shall have no financial interest in
any activity relating to exploration and exploitation in the Area. Subject
to their responsibilities to the Authority, they shall not disclose, even
after the termination of their functions, any industrial secret,
proprietary data which are transferred to the Authority in accordance with
Annex III, article 14, or any other confidential information coming to
their knowledge by reason of their employment with the Authority.

3. Violations of the obligations of a staff member of the Authority set
forth in paragraph 2 shall, on the request of a State Party affected by
such violation, or a natural or juridical person, sponsored by a State
Party as provided in article 153, paragraph 2(b), and affected by such
violation, be submitted by the Authority against the staff member concerned
to a tribunal designated by the rules, regulations and procedures of the
Authority. The Party affected shall have the right to take part in the
proceedings. If the tribunal so recommends, the Secretary-General shall
dismiss the staff member concerned.

4. The rules, regulations and procedures of the Authority shall contain
such provisions as are necessary to implement this article.

                             Article 169
       Consultation and co-operation with international and
                   non-governmental organizations

1. The Secretary-General shall, on matters within the competence of the
Authority, make suitable arrangements, with the approval of the Council,
for consultation and co-operation with international and non-governmental
organizations recognized by the Economic and Social Council of the United
Nations.

2. Any organization with which the Secretary-General has entered into an
arrangement under paragraph 1 may designate representatives to attend
meetings of the organs of the Authority as observers in accordance with the
rules of procedure of these organs. Procedures shall be established for
obtaining the views of such organizations in appropriate cases.

3. The Secretary-General may distribute to States Parties written reports
submitted by the non-governmental organizations referred to in paragraph 1
on subjects in which they have special competence and which are related to
the work of the Authority.


                    SUBSECTION E. THE ENTERPRISE

                             Article 170
                           The Enterprise

1. The Enterprise shall be the organ of the Authority which shall carry out
activities in the Area directly, pursuant to article 153, paragraph 2(a),
as well as the transporting, processing and marketing of minerals recovered
from the Area.


2. The Enterprise shall, within the framework of the international legal
personality of the Authority, have such legal capacity as is provided for
in the Statute set forth in Annex IV. The Enterprise shall act in
accordance with this Convention and the rules, regulations and procedures
of the Authority, as well as the general policies established by the
Assembly, and shall be subject to the directives and control of the
Council.

3. The Enterprise shall have its principal place of business at the seat of
the Authority.

4. The Enterprise shall, in accordance with article 173, paragraph 2, and
Annex IV, article 11, be provided with such funds as it may require to
carry out its functions, and shall receive technology as provided in
article 144 and other relevant provisions of this Convention.


                 SUBSECTION F. FINANCIAL ARRANGEMENTS
                          OF THE AUTHORITY

                             Article 171
                       Funds of the Authority

The funds of the Authority shall include:

(a) assessed contributions made by members of the Authority in accordance
    with article 160, paragraph 2(e);
(b) funds received by the Authority pursuant to Annex III, article 13, in
    connection with activities in the Area;
(c) funds transferred from the Enterprise in accordance with Annex IV,
    article 10;
(d) funds borrowed pursuant to article 174;
(e) voluntary contributions made by members or other entities; and
(f) payments to a compensation fund, in accordance with article 151,
    paragraph 10, whose sources are to be recommended by the Economic
    Planning Commission.

                             Article 172
                   Annual budget of the Authority

The Secretary-General shall draft the proposed annual budget of the
Authority and submit it to the Council. The Council shall consider the
proposed annual budget and submit it to the Assembly, together with any
recommendations thereon. The Assembly shall consider and approve the
proposed annual budget in accordance with article 160, paragraph 2(h).

                             Article 173
                      Expenses of the Authority

1. The contributions referred to in article 171, subparagraph (a), shall be
paid into a special account to meet the administrative expenses of the
Authority until the Authority has sufficient funds from other sources to
meet those expenses.

2. The administrative expenses of the Authority shall be a first call upon
the funds of the Authority. Except for the assessed contributions referred
to in article 171, subparagraph (a), the funds which remain after payment
of administrative expenses may, inter alia:

(a) be shared in accordance with article 140 and article 160, paragraph
    2(g);
(b) be used to provide the Enterprise with funds in accordance with
    article 170, paragraph 4;
(c) be used to compensate developing States in accordance with article
    151, paragraph 10, and article 160, paragraph 2(1).

                             Article 174
                 Borrowing power of the Authority

1. The Authority shall have the power to borrow funds.

2. The Assembly shall prescribe the limits on the borrowing power of the
Authority in the financial regulations adopted pursuant to article 160,
paragraph 2(f).

3. The Council shall exercise the borrowing power of the Authority.

4. States Parties shall not be liable for the debts of the Authority.

                             Article 175
                             Annual audit

The records, books and accounts of the Authority, including its annual
financial statements, shall be audited annually by an independent auditor
appointed by the Assembly.


                 SUBSECTION G. LEGAL STATUS, PRIVILEGES
                            AND IMMUNITIES

                             Article 176
                            Legal status

The Authority shall have international legal personality and such legal
capacity as may be necessary for the exercise of its functions and the
fulfilment of its purposes.

                             Article 177
                      Privileges and immunities

To enable the Authority to exercise its functions, it shall enjoy in the
territory of each State Party the privileges and immunities set forth in
this subsection. The privileges and immunities relating to the Enterprise
shall be those set forth in Annex IV, article 13.

                             Article 178
                    Immunity from legal process

The Authority, its property and assets, shall enjoy immunity from legal
process except to the extent that the Authority expressly waives this
immunity in a particular case.

                             Article 179
            Immunity from search and any form of seizure

The property and assets of the Authority, wherever located and by
whomsoever held, shall be immune from search, requisition, confiscation,
expropriation or any other form of seizure by executive or legislative
action.

                             Article 180
             Exemption from restrictions, regulations,
                        controls and moratoria

The property and assets of the Authority shall be exempt from restrictions,
regulations, controls and moratoria of any nature.

                             Article 181
         Archives and official communications of the Authority

1. The archives of the Authority, wherever located, shall be inviolable.

2. Proprietary data, industrial secrets or similar information and
personnel records shall not be placed in archives which are open to public
inspection.

3. With regard to its official communications, the Authority shall be
accorded by each State Party treatment no less favourable than that
accorded by that State to other international organizations.

                             Article 182
      Privileges and immunities of certain persons connected
                         with the Authority

Representatives of States Parties attending meetings of the Assembly, the
Council or organs of the Assembly or the Council, and the Secretary-General
and staff of the Authority, shall enjoy in the territory of each State
Party:

(a) immunity from legal process with respect to acts performed by them in
    the exercise of their functions, except to the extent that the State
    which they represent or the Authority, as appropriate, expressly
    waives this immunity in a particular case;
(b) if they are not nationals of that State Party, the same exemptions
    from immigration restrictions, alien registration requirements and
    national service obligations, the same facilities as regards exchange
    restrictions and the same treatment in respect of travelling
    facilities as are accorded by that State to the representatives,
    officials and employees of comparable rank of other States Parties.

                             Article 183
               Exemption from taxes and customs duties

1. Within the scope of its official activities, the Authority, its assets
and property, its income, and its operations and transactions, authorized
by this Convention, shall be exempt from all direct taxation and goods
imported or exported for its official use shall be exempt from all customs
duties. The Authority shall not claim exemption from taxes which are no
more than charges for services rendered.

2. When purchases of goods or services of substantial value necessary for
the official activities of the Authority are made by or on behalf of the
Authority, and when the price of such goods or services includes taxes or
duties, appropriate measures shall, to the extent practicable, be taken by
States Parties to grant exemption from such taxes or duties or provide for
their reimbursement. Goods imported or purchased under an exemption
provided for in this article shall not be sold or otherwise disposed of in
the territory of the State Party which granted the exemption, except under
conditions agreed with that State Party.

3. No tax shall be levied by States Parties on or in respect of salaries
and emoluments paid or any other form of payment made by the Authority to
the Secretary-General and staff of the Authority, as well as experts
performing missions for the Authority, who are not their nationals.


          SUBSECTION H. SUSPENSION OF THE EXERCISE OF RIGHTS
                     AND PRIVILEGES OF MEMBERS

                             Article 184
            Suspension of the exercise of voting rights


A State Party which is in arrears in the payment of its financial
contributions to the Authority shall have no vote if the amount of its
arrears equals or exceeds the amount of the contributions due from it for
the preceding two full years. The Assembly may, nevertheless, permit such a
member to vote if it is satisfied that the failure to pay is due to
conditions beyond the control of the member.

                             Article 185
                 Suspension of exercise of rights
                   and privileges of membership

1. A State Party which has grossly and persistently violated the provisions
of this Part may be suspended from the exercise of the rights and
privileges of membership by the Assembly upon the recommendation of the
Council.

2. No action may be taken under paragraph 1 until the Sea-Bed Disputes
Chamber has found that a State Party has grossly and persistently violated
the provisions of this Part.


                  SECTION 5. SETTLEMENT OF DISPUTES
                        AND ADVISORY OPINIONS

                             Article 186
                  Sea-Bed Disputes Chamber of the
           International Tribunal for the Law of the Sea

The establishment of the Sea-Bed Disputes Chamber and the manner in which
it shall exercise its jurisdiction shall be governed by the provisions of
this section, of Part XV and of Annex VI.

                             Article 187
           Jurisdiction of the Sea-Bed Disputes Chamber

The Sea-Bed Disputes Chamber shall have jurisdiction under this Part and
the Annexes relating thereto in disputes with respect to activities in the
Area falling within the following categories:

(a) disputes between States Parties concerning the interpretation or
    application of this Part and the Annexes relating thereto;
(b) disputes between a State Party and the Authority concerning:
    (i) acts or omissions of the Authority or of a State Party alleged to
    be in violation of this Part or the Annexes relating thereto or of
    rules, regulations and procedures of the Authority adopted in
    accordance therewith; or
    (ii) acts of the Authority alleged to be in excess of jurisdiction or
    a misuse of power;
(c) disputes between parties to a contract, being States Parties, the
    Authority or the Enterprise, state enterprises and natural or
    juridical persons referred to in article 153, paragraph 2 (b),
    concerning:
    (i) the interpretation or application of a relevant contract or a
    plan of work; or
    (ii) acts or omissions of a party to the contract relating to
    activities in the Area and directed to the other party or directly
    affecting its legitimate interests;
(d) disputes between the Authority and a prospective contractor who has
    been sponsored by a State as provided in article 153, paragraph 2
    (b), and has duly fulfilled the conditions referred to in Annex III,
    article 4, paragraph 6, and article 13, paragraph 2, concerning the
    refusal of a contract or a legal issue arising in the negotiation of
    the contract;
(e) disputes between the Authority and a State Party, a state enterprise
    or a natural or juridical person sponsored by a State Party as
    provided for in article 153, paragraph 2(b), where it is alleged that
    the Authority has incurred liability as provided in Annex III,
    article 22;
(f) any other disputes for which the jurisdiction of the Chamber is
    specifically provided in this Convention.

                             Article 188
       Submission of disputes to a special chamber of the
    International Tribunal for the Law of the Sea or an ad hoc
      chamber of the Sea-Bed Disputes Chamber or to binding
                        commercial arbitration

1. Disputes between States Parties referred to in article 187, subparagraph
(a), may be submitted:

(a) at the request of the parties to the dispute, to a special chamber of
    the International Tribunal for the Law of the Sea to be formed in
    accordance with Annex VI, articles 15 and 17; or
(b) at the request of any party to the dispute, to an ad hoc chamber of
    the Sea-Bed Disputes Chamber to be formed in accordance with Annex
    VI, article 36.

2.   (a) Disputes concerning the interpretation or application of a
    contract referred to in article 187, subparagraph (c) (i), shall be
    submitted, at the request of any party to the dispute, to binding
    commercial arbitration, unless the parties otherwise agree. A
    commercial arbitral tribunal to which the dispute is submitted shall
    have no jurisdiction to decide any question of interpretation of this
    Convention. When the dispute also involves a question of the
    interpretation of Part XI and the Annexes relating thereto, with
    respect to activities in the Area, that question shall be referred to
    the Sea-Bed Disputes Chamber for a ruling.
(b) If, at the commencement of or in the course of such arbitration, the
    arbitral tribunal determines, either at the request of any party to
    the dispute or proprio motu, that its decision depends upon a ruling
    of the Sea-Bed Disputes Chamber, the arbitral tribunal shall refer
    such question to the Sea-Bed Disputes Chamber for such ruling. The
    arbitral tribunal shall then proceed to render its award in
    conformity with the ruling of the SeaBed Disputes Chamber.
(c) In the absence of a provision in the contract on the arbitration
    procedure to be applied in the dispute, the arbitration shall be
    conducted in accordance with the UNCITRAL Arbitration Rules or such
    other arbitration rules as may be prescribed in the rules,
    regulations and procedures of the Authority, unless the parties to
    the dispute otherwise agree.

                             Article 189
  Limitation on jurisdiction with regard to decisions of the Authority

The Sea-Bed Disputes Chamber shall have no jurisdiction with regard to the
exercise by the Authority of its discretionary powers in accordance with
this Part; in no case shall it substitute its discretion for that of the
Authority. Without prejudice to article 191, in exercising its jurisdiction
pursuant to article 187, the Sea-Bed Disputes Chamber shall not pronounce
itself on the question of whether any rules, regulations and procedures of
the Authority are in conformity with this Convention, nor declare invalid
any such rules, regulations and procedures. Its jurisdiction in this regard
shall be confined to deciding claims that the application of any rules,
regulations and procedures of the Authority in individual cases would be in
conflict with the contractual obligations of the parties to the dispute or
their obligations under this Convention, claims concerning excess of
jurisdiction or misuse of power, and to claims for damages to be paid or
other remedy to be given to the party concerned for the failure of the
other party to comply with its contractual obligations or its obligations
under this Convention.

                             Article 190
Participation and appearance of sponsoring States Parties in proceedings

1. If a natural or juridical person is a party to a dispute referred to in
article 187, the sponsoring State shall be given notice thereof and shall
have the right to participate in the proceedings by submitting written or
oral statements.

2. If an action is brought against a State Party by a natural or juridical
person sponsored by another State Party in a dispute referred to in article
187, subparagraph (c), the respondent State may request the State
sponsoring that person to appear in the proceedings on behalf of that
person. Failing such appearance, the respondent State may arrange to be
represented by a juridical person of its nationality.

                             Article 191
                         Advisory opinions

The Sea-Bed Disputes Chamber shall give advisory opinions at the request of
the Assembly or the Council on legal questions arising within the scope of
their activities. Such opinions shall be given as a matter of urgency.