SEA/1524

PRESIDENT OF SEABED ASSEMBLY WARNS OF POSSIBLE VOTE IN ABSENCE OF AGREEMENT ON FINANCE COMMITTEE MEMBERSHIP

KINGSTON, 8 August -- The President of the Assembly of the International Seabed Authority, Hasjim Djalal (Indonesia), warned today that, without an agreement on the composition of its Finance Committee, there might not be a budget and, therefore, no sessions of the Authority next year. He warned that in the absence of a breakthrough, the composition of the Committee might have to be put to a vote.

Reporting on intensive consultations he had conducted with regional and various interest groups, and noting the lack of consensus thus far on the composition of the Committee, Mr. Djalal said there was a real fear that the Authority's 1997 budget would not be recommended to the United Nations, which finances the Authority until the end of 1997.

According to the Agreement on the implementation of Part XI of the Convention on the Law of the Sea, all decisions of the Assembly and Council of the Authority dealing with financial matters must take account of the recommendations of the Finance Committee.

Failure to form the Committee would be devastating for the Authority's reputation, Mr. Djalal said. Without an agreement, he might have to put the selection of the Committee to a vote by the beginning of the second week of the current session. "If that is the only alternative, I will not hesitate to take it."

The representative of Italy said solutions were found when all members worked together in a spirit of compromise and respect for different views. He appealed to the President to avoid the threat of a vote. A solution forced on any group that was not agreed on in an atmosphere of cooperation could have serious consequences in the future. Everyone was aware of the importance of the Finance Committee and the need to pass a budget.

The President replied that he was willing to continue negotiations, but the Implementation Agreement on the seabed mining provisions of the Convention on the Law of the Sea was being interpreted differently by various members of the Authority.

- 2 - Press Release SEA/1524 9 August 1996

The representative of Cameroon said any haste as negotiations neared a conclusion could be counter-productive. The time had come to encourage regional groups and delegations to reconcile their positions. The Finance Committee was so important that it should be acceptable to all and not something arrived at without consensus.

The representative of Nigeria encouraged the President to continue with his negotiations. He said the Authority was a new body and a unique experiment in multilateral cooperation that should avoid the inequities of the past. It would not be wise to hasten the process unduly only for the sake of meeting a deadline.

Also this afternoon, the Assembly established an open-ended working group under the chairmanship of Wael Aboul Magd (Egypt) to examine the draft protocol on privileges and immunities of the Authority.

Finance Committee

Members of the Finance Committee, who will serve for five-year terms, must have qualifications and experience in financial management. Election of the 15-member Committee must take due account of equitable geographical distribution and representation of special interests. Further, representatives of the five largest contributors shall be represented on the Committee until such time as the Authority has sufficient funds, apart from assessed contributions, to finance its operations.

The Committee's functions will include recommending draft financial rules, regulations and procedures for the organs of the Authority; financial management and internal financial administration of the Authority; review of the Authority's proposed annual budget; financial aspects of implementing the secretariat's programme of work; and assessment of contributions on members of the Authority.

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United Nations