I International Centre for Settlement of Investment Disputes Public Disclosure Authorized Seventeenth Annual Report 1982/1983 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ICSID Seventeenth Annual Report 1982/1983 Contents Page Letter of Transmittal 2 Introduction by the Secretary-General ...... ..... ................ ..... 3 Membership . 3 Sixteenth Annual Meeting of the Administrative Council . 3 Disputes Submitted to the Centre . 3 Promotional Activities . 5 Regulations and Rules . 5 ICSID as Designating Authority for non-ICSID Arbitration . 5 Finance 5 Annexes 1. List of Contracting States and Signatories of the Convention . 6 2. Members of the Administrative Council and Officials of the Centre . 8 3. List of the Members of the Panels of Conciliators and Arbitrators . 9 4. Provisions Relating to ICSID in International Agreements and National Investment Laws . 22 5. Resolutions of the Administrative Council ...... ............. ....... 24 6. Report and Financial Statements . 25 7. Publications of ICSID ....................... ........ ... .. 27 International Centre for Settlement of Investment Disputes September 1, 1983 Dear Mr. Chairman: Pursuant to Administrative and Financial Regulation 4(4), I hereby submit to the Administrative Council for its approval the Annual Report on the operation of the International Centre for Settlement of Investment Disputes required by Article 6(1 )(g) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. This Seventeenth Annual Report covers the fiscal year July 1, 1982 to June 30, 1983. The report includes the audited financial statements of the Centre. presented pursuant to Administrative and Financial Regulation 18. Sincerely yours. H. Golsong Secretary-General Mr. A. W. Clausen Chairman Administrative Council International Centre for Settlement of Investment Disputes 2 Introduction by the Secretary-General country from the Latin American region to This is the third annual report I have the join ICSID. I am confident that other countries honor to submit to the Administrative Council. in that region will soon follow. I have also It is at the same time my last report. discussed the advantages of ICSI D with repre­ The Administrative Council entrusted me, sentatives of the People's Republic of Ch ina. in 1980, with the role of Secretary-General for I remain devoted to conciliation and arbitra­ the regular period of six years. Having re­ tion, in particular within ICSID, as a means of cently joined a private law firm in Washington, dispute settlement, and hope to be able to D.C., I have decided to resign as Secretary­ support the goals of the ICSID Convention in General as of September 30, 1983. other capacities. During the three years of my responsibili­ ties at ICSID, I have witnessed an increased Membership significance of ICSID as a dispute settlement On January 7, 1983, Paraguay deposited its forum. Together with my colleagues I have instrument of ratification and became the first tried, to the best of my abilities, to favor such a Latin American State to adhere to the Conven­ development by appropriate promotional ac­ tion. On June 22, 1983. Israel deposited its tivities and by advice to governments and in­ instrument of ratification, bringing the num­ vestors alike as to the structure and rules of ber of Contracting States to 83. The number the Centre. of Signatory States stands at 88. A complete I acted in this direction not only because of list of Contracting States and other Signato­ my current official association with ICSI 0 , but ries of the Convention appears in Annex 1. also because I am personally convinced that ICS ID offers the most appropriate balanced Sixteenth Annual Meeting of the and effective framework for dispute settle­ Administrative Council ment on investments. And as the present eco­ The Sixteenth Annual Meeting of the Admin­ nomic situation world-wide will certainly en­ istrative Council was held on September 8, hance the importance of investment abroad, 1982, in Toronto, Canada. in conjunction with so will ICSID gain in practical importance. the Annual Meeting of the Board of Governors As indicated in this report, the number of of the World Bank. At this meeting the Council disputes submitted to ICSID for settlement approved the Sixteenth Annual Report on the has significantly increased during the last year. operation of the Centre and the budget for Yet, one should not measure the effective­ Fiscal Year 1983. Th e resolutions are repro­ ness and the efficiency of ICSID only by the duced in Annex 5. number of cases registered or decided upon. Much more important is the incentive for ami­ Disputes Submitted to the Centre1 cable settlement provoked by ICSID dispute During the past fiscal year three requests for settlement clauses or the mere filing of a re­ the institution of arbitration proceedings and quest for settlement. one request for the institution of conciliation ICSID membership has continued to grow proceedings were registered by the Secretary- in FY1983. Most notable was the ratification 'Annex 6 to the Fifteenth Annual Report provides procedural data on of the ICSI D Convention by Paraguay, the first all arb1trat1on cases brought before the Centre up to June 30, 1981 3 General. The two arbitration proceedings which On December 8, 1982, the Tribunal issues were instituted in 1981 are continuing. Procedural Order No. 3. On March 23, 1983, the Centre receives the (A) Arbitration Proceedings Respondents' rejoinder and supporting doc­ (1) AMCO Asia Corporation, Pan American umentation. Development Ltd. and P. T. AMCO Indo­ On April 8, 1983, the Tribunal issues Proce­ nesia v. Government of Indonesia (Case dural Order No. 4. ARB/81/1) On April 25, 1983, the second session of On June 25, 1982, Claimants submit their the Tribunal is held in Paris in the presence of memorial and supporting documentation. the parties. The Tribunal issues Procedural On September 28, 1982, Respondent re­ Order No. 5. quests further documentation from Claimants. (3) Societe Quest Africaine des Betons ln­ On December 30, 1982, Respondent sub­ dustriels (SOABI) v. The State of Senegal mits its counter-memorial and supporting doc­ (Case ARB/8211) umentation. The counter-memorial raises ob­ On November 5, 1982, the Secretary-Gen­ jections to jurisdiction. eral registers a request for the institution of On January 21, 1983, the proceedings on arbitration proceedings. the merits are suspended in accordance with On March 1, 1983, Mr. Keba M'Baye (Sene­ Rule 41 (3) of the Arbitration Rules and the galese). appointed by Senegal, accepts his Tribunal grants Claimants until February 21, appointment as arbitrator. 1983 (extended by seven days on February On March 15, 1983, Baron Jean Van Houtte 18, 1983) for submission by Claimants of their (Belgian), appointed by SOABI, accepts his answer to the objections to jurisdiction. appointment as arbitrator. On February 28, 1983, Claimants submit On February 17, 1983, the Centre receives their reply and documentary submissions to a communication from both parties designat­ the counter-memorial. ing Mr. Pierre Lalive (Swiss) as third arbitrator. On April 1, 1983, the Tribunal issues a deci­ On April 18, 1983, Mr. Lalive declines his sion according to which the objections to juris­ designation. On the same day the Secretary­ diction raised by Respondent will be dealt General requests both parties to again nomi­ with as a preliminary matter and sets the fol­ nate a third arbitrator. lowing time limits: April 25, 1983, for the filing by Respondent of its reply to Claimants' an­ (4) Swiss Aluminium Limited (ALUSUISSEJ swer to objections to jurisdiction; May 23, 1983, and Icelandic Aluminium Company Lim­ for the filing by Claimants of their rejoinder. A ited (ISALJ v. the Government of Ice­ hearing will be held in Paris starting June 28, land (Case ARB/ 83/ 1) 1983. On June 16, 1983, the Secretary-General On April 26, 1983, Respondent files its ob­ registers a request for the institution of arbi­ servations to jurisdiction. tration proceedings. On May 23, 1983, Claimants file their rejoin­ (5) The Liberian Eastern Timber Corporation der and documentary submissions. the Government of the Republic of Li­ From June 28-30, 1983, hearings are held v. in Paris to consider the objections to the juris­ beria (Case ARB/ 83/ 2) diction of the Tribunal. On June 21, 1983, the Secretary-General registers a request for the institution of arbitra­ (2) Klockner lndustrieAnlagen GmbH, Klbck­ tion proceedings. ner Beige, S.A. and Klockner Handelsma­ atschappij B. V. v. United Republic of (B) Conciliation Proceedings Cameroon and Societe camerounaise des engrais (SOCAME) S.A. (Case ARB/81 /2) La SEO/TEX Engineering Beratungsge­ On July 16, 1982, the Tribunal issues Proce­ sellschaft tiir die Textilindustrie m.b.H. v. dural Order No. 2. The Government of the Democratic Re­ On November 8, 1982, the Centre receives public of Madagascar(Case CONC/8211J Claimants' reply to the counter-memorial and On October 5, 1982, the Secretary-General 4 supporting documentation. registers a request for the institution of cone iii- ation proceedings. In its request SEDITEX In January 1983, ICSI D issued its first News­ designates Mr. David McGovern (United States) letter, to update the information contained in as conciliator. On February 25, 1983, Mada­ the Annual Report. gascar nominates Mr. Honore Rakotomanana Regulations and Rules (Madagascan) as conciliator. On March 13, Pursuant to Administrative and Financial Reg­ 1983, proceedings are suspended at the re­ ulation 13(1) the Secretary-General has, with quest of SEDITEX. On June 20, 1983, the the approval of the Chairman, on April 1, 1983. Centre receives a request from SEDITEX for increased the daily fees of conciliators and termination of the proceedings. arbitrators to SDR600. The fees will continue Promotional Activities to be payable in US dollars. The US dollar The Centre has published a full collection equivalent of any amount in SOR due in re­ of bilateral investment promotion and protec­ spect of any calendar quarter will be deter­ tion treaties (see Annex 4 ).