SEA/1527

ASSEMBLY OF INTERNATIONAL SEABED AUTHORITY ELECTS FINANCE COMMITTEE

KINGSTON, 13 August -- After more than a week of intensive negotiations, the Assembly of the International Seabed Authority tonight elected its Finance Committee which is expected to immediately begin work on the Authority's 1997 draft budget. The Assembly is the supreme organ of the Authority set up by the United Nations Convention of the Law of the Sea to administer resources of the deep seabed beyond the limits of national jurisdiction.

Final agreement on the composition of the Committee came after the various regional and interest groups reached an understanding on the allocation of seats and the duration of terms. After the Committee considers the Authority's proposed $5.4 million budget, it will recommend a final version to the Council -- the other main organ of the Authority -- for approval. The budget will then be taken up by the Assembly before the end of its current session on Friday, 16 August.

The President of the Assembly, Hasjim Djalal (Indonesia), said the Latin American and Caribbean Group had agreed to relinquish one of its seats on the Finance Committee at the end of the first two years (1997-1998) in favour of a candidate of the Asian Group for the remainder of the five-year term. The Western European and Other States Group had agreed to relinquish one of its seats at the expiration of the first two and a half years of the five-year term commencing in 1997 in favour of a candidate from the Eastern European Group for the remainder of the term.

Mr. Djalal said that in light of the special circumstances of the election, the members' term of office for the period proceeding 1 January 1997 would not be counted against the five-year term. The agreement on the Committee's composition was without prejudice to its overall composition for future elections, particularly with regard to the claims of the regional groups; nor would it prejudice elections of future bodies. He said it was understood that the situation might need to be reviewed in view of the circumstances prevailing after 16 November when provisional membership of the Authority terminates.

Mr. Djalal appointed Mohamed Mouldi Marsit (Tunisia) as Acting Chairman of the Finance Committee for the next three days.

- 2 - Press Release SEA/1527 14 August 1996

The Assembly will meet again at a date to be announced.

Finance Committee

Members of the Committee are Ernest Belo Rosa (Uruguay), Craig John Daniell (South Africa), Domenico Da Empoli (Italy), David Etuket (Uganda), Jobst Holborn (Germany), Lou Hong (China), Tadanori Inomata (Japan), Serguey P. Ivanov (Russian Federation), Issac Klipstein Margulis (Mexico), Samia Ladgham (Tunisia), Jean-Pierre Levy (France), Rama Ran (India), Coy Roache (Jamaica), Michael C. Wood (United Kingdom), M. Deborah Wynes (United States).

They represent the five potential largest financial contributors to the Authority's budget, as well as special interests and reflect an overall equitable geographical distribution. There are three representatives each from Africa, Asia, and Latin American and the Caribbean, five from Western European and other States and one from Eastern Europe. Overall, seven members come from developed countries and eight from developing ones.

According to the United Nations Convention on the Law of the Sea and the Agreement relating to implementation of Part XI of the Convention, members should have no financial interest in any activity on which the Committee makes recommendations. They should also have appropriate qualifications in financial matters.

Though the Convention did not envision the necessity for a finance committee, the Agreement on the implementation of Part XI gives the Committee a central role in the administration of the Authority's financial and budgetary arrangements similar to that of the United Nations Advisory Committee on Administrative and Budgetary Questions (ACABQ).

The Agreement spells out several of the Committee's functions, including the requirement that it review and make recommendations on the Authority's budget before it is taken up by the Council and the Assembly. It is also required to make recommendations on draft financial rules, regulations and procedures of the organs of the Authority and the financial aspects of the secretariat's programme of work, as well as on assessed contributions of members of the Authority.

In considering the budget, the Committee will be guided by the general decision-making procedures outlined in the Agreement. As a general rule, the Agreement requires that all decisions taken in the Authority be by consensus. In the absence of a consensus, decisions on matters of substance require a two-thirds majority in all organs of the Authority.

The Agreement gives the Council special competence in budgetary and financial matters. Should the Assembly disagree with any of the Council's recommendations, it is required to return the matter to the Council for further consideration rather than take a decision which contradicts the Council.

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