Preface 9
Chapter Ⅰ Overview 11
1.Technical and Economic Data Regarding Deep Seabed Mining 11
1.1.Location and Economic Significance of Manganese Nodule Deposits 11
1.2.Effects of Seabed Production on Metal Markets and Land Producers 11
1.3.The Interests of the Federal Republic of Germany 16
1.3.1.Interests in Natural Resources and Economic Policy Concerns 16
1.3.2.Deep Seabed Mining Activities by German Industry 18
1.4.Seabed Mining Consortia and State of Technological Development 20
1.5.Commercial Profitability of Deep Seabed Mining 23
2.Legal Order for Seabed Natural Resources 26
2.1.Legal Status of the International Seabed Under Customary International Law 26
2.2.National Legislation by Industrialized States 29
2.3.The Convention on the Law of the Sea 31
Chapter Ⅱ Direct Access By Investors to the Mineral Resources of the Seabed 37
1.Organization and Competence of the International Seabed Authority 37
1.1.Mandate of the Seabed Authority 37
1.2.Structure of the Authority 38
1.2.1.The Organs of the Authority 38
1.2.2.Composition of the Council 39
1.2.3.Voting Procedure in the Council 42
1.2.3.1.Statement of the Issue 42
1.2.3.2.Decision-Making Procedure Under the Convention 42
1.2.3.3.Conclusion 44
1.3.Division of Competence Between Assembly and Council 45
1.3.1.Basic Features 45
1.3.2.Adoption of Rules,Regulations and Procedures 46
1.4.Preparatory Commission and Provisional Investment Protection 48
2.Dispute Settlement Under the Convention 51
2.1.Sea-Bed Disputes Chamber 51
2.1.1.Composition and Jurisdiction of the Chamber 51
2.1.2.Applicable Law and Scope of Jurisdiction 53
2.1.2.1.Review of Rule-Making 53
2.1.2.2.Discretionary Decisions 55
2.2.Commercial Arbitration 56
2.2.1.Jurisdiction 56
2.2.2.Choice of Arbitration Proceedings 57
3.The Contract as a Licensing Instrument for Deep Seabed Activities:Licensing Procedure,Substance of the Contract and the Authority's Regulatory Powers 59
3.1.Prospecting 59
3.2.Application and Licensing Procedures for a Plan of Work(Exploration and Exploitation) 60
3.2.1.Membership Requirements 60
3.2.2.Applicant Qualifications 62
3.2.3.External Barriers to Approval 63
3.2.4.Reservation Procedure 65
3.3.Decision-Making Procedures in Commission and Council 67
3.4.The Grant of the Production Authorization 70
3.5.Dispute Settlement 72
3.6.Contents of the Contract and the Authority's Regulatory Power 75
3.6.1.Contents of the Contract 75
3.6.2.Supervision and Sanctions 77
3.6.3.Emergency Orders for Environmental Protection 79
3.7.Conclusion 80
4.The Convention's Fiscal Regime 80
4.1.Basis of Calculation of Fees to be Paid to the Authority 80
4.2.Basic Elements of the Fiscal Regime 83
4.3.Assessment of the Fiscal System 84
4.3.1.Single System 84
4.3.2.Mixed System 84
4.3.2.1.Production Charge 85
4.3.2.2.Sharing of Net Proceeds 87
4.3.2.3.Quantitative Examination of the Financial Obligations 90
4.4.Home State Fiscal Treatment of Payments to the Authority 91
4.4.1.Necessity of Fiscal Consideration by the Home State 91
4.4.2.Tax Claims by the Authority and one State 92
4.4.2.1.Fees Paid to the Authority Treated as Costs 92
4.4.2.2.Tax Credit for Fees Paid to the Authority 92
4.4.2.3.Exemption of Mining Income 94
4.4.3.Tax Claims by the Authority and Several States 95
4.4.4.Conclusion 97
5.Transfer of Technology 96
5.1.Statement of Issues 96
5.2.Duty to Disclose Information(Annex Ⅲ Art.5 para.1 and 2) 98
5.3.Transfer of Technology Owned by the Contractor(An.5 para.3(a)) 98
5.3.1.Basic Elements 99
5.3.2.Conditions of Transfer 101
5.3.3.Dispute Settlement 305
5.4.Transfer of Technology Owned by Third Parties 106
5.4.1.Art.5 para.3(b) 106
5.4.2.Art.5 para.3(c) 109
5.4.3.Art.5 para.3(d) 111
5.5.Training of Personnel in Compliance with Annex III Art.15 111
5.6.Transfer of Technology to Developing Countries 112
5.7.Transfer of Processing Technology 113
5.8.Assessment 114
6.Natural Resource Policy Powers of the International Seabed Authority 116
6.1.Participation in Commodity Agreements 116
6.2.Quota System for Deep Seabed Production 118
6.3.Compensation Payments and Economic Adjustment Assistance for Developing Country Producers 122
7.Security of Contract Tenure and the Amendability of the Convention 123
7.1.Security of Tenure and Term of the Contract 123
7.1.1.Substance of Security of Tenure 125
7.1.2.Term of Contract 126
7.2.Amendments to the Convention 127
7.2.1.Review Conference 127
7.2.2.Amendment Procedure 131
Chapter Ⅲ The International Sea-Bed Authority as an Economic Entity 132
1.Mandate and Legal Status of the Enterprise 132
1.1.Mandate 132
1.2.Legal Status and Organization 133
1.2.1.Legal Capacity,Immunities and Privileges 133
1.2.2.Financing 134
1.2.3.Payments to the Authority 135
1.2.4.Organization and Control 136
1.3.Goals and Business Principles 140
1.3.1.Objectives Set by the Convention 140
1.3.2.Enforcement of Convention Provisions 141
1.4.Scenario:Deciding on the Site for a Processing Plant 143
1.4.1.Factual Background 143
1.4.2.Alternatives for Action 144
1.4.3.The Substantive Law 146
1.5.The Competitive Position of the Enterprise in the Parallel System 147
2.Models for Cooperation between the Enterprise and Investors 149
2.1.Underlying Principles 149
2.1.1.Introduction and Definitions 149
2.1.2.Cooperation Agreements in the Convention 151
2.1.3.Advantages of Cooperation Agreements-Expectations from the Perspectives of the Enterprise and the Investor 153
2.1.3.1.Position of the Enterprise 153
2.1.3.2.Position of the Investor 156
2.2.Contractual Cooperation 157
2.2.1."Work contract" 157
2.2.2."Service contract" and "production sharing" 158
2.2.3.Management Contract 161
2.2.4.Conclusion 163
2.3.Corporate Cooperation 163
2.3.1.Regulatory Problems and Conditions of Success in a Joint Venture 163
2.3.2.Capital Participation and Project Control 166
2.3.2.1.Investor Majority 166
2.3.2.2.Equal Capital Ownership 167
2.3.2.3.Investor Minority 170
2.3.2.4.Diversification of Steering Instruments and of Decision-Making Responsibilities as the Central Task in Drafting 172
2.3.3.Conclusion and Outlook 174
Summary and Conclusions of the Study 176
Appendix 1:Effects of the Fiscal Regime in Annex HI,Art 13 para.6 of the Convention 181
Appendix 2:Models of Tax Treatment by Home State of Payments Made to the Authority 185
Bibliography 189
Index 206