Section 170p. 170

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME I

(d) States Parties shall ensure that the Enterprise enjoys

all rights, privileges and immunities accorded by them to

entities

conducting

commercial

activities

in

their

territories. These rights, privileges and immunities shall

be accorded to the Enterprise on no less favourable a

basis than that on which they are accorded to entities

engaged

in

similar

commercial

activities.

If

special

privileges are provided by States Parties for developing

States or their commercial entities, the Enterprise shall

enjoy those privileges on a similarly preferential basis.

(e) States Parties may provide special incentives, rights,

privileges and immunities to the Enterprise without the

obligation to provide such incentives, rights, privileges

and immunities to other commercial entities.

5. The Enterprise shall negotiate with the host countries

in which its offices and facilities are located for exemption

from direct and indirect taxation.

6. Each State Party shall take such action as is necessary

for giving effect in terms of its own law to the principles

set forth in this Annex and shall inform the Enterprise of

the specific action which it has taken.

7. The Enterprise may waive any of the privileges and

immunities conferred under this article or in the special

agreements referred to in paragraph 1 to such extent and

upon such conditions as it may determine.

ANNEX V. CONCILIATION

SECTION 1. CONCILIATION PROCEDURE

PURSUANT TO SECTION 1 OF PART XV

Article 1. Institution of proceedings

If the parties to a dispute have agreed, in accordance with

article 284, to submit it to conciliation under this section,

any such party may institute the proceedings by written

notification addressed to the other party or parties to the

dispute.

Article 2. List of conciliators

A list of conciliators shall be drawn up and maintained by

the Secretary-General of the United Nations. Every State

Party shall be entitled to nominate four conciliators, each

of

whom

shall

be

a

person

enjoying

the

highest

reputation for fairness, competence and integrity. The

names of the persons so nominated shall constitute the

list. If at any time the conciliators nominated by a State

Party in the list so constituted shall be fewer than four,

that

State

Party

shall

be

entitled

to

make

further

nominations as necessary. The name of a conciliator shall

remain on the list until withdrawn by the State Party

which

made

the

nomination,

provided

that

such

conciliator shall continue to serve on any conciliation

commission to which that conciliator has been appointed

until the completion of the proceedings before that

commission.

Article 3. Constitution of conciliation commission

The conciliation commission shall, unless the parties

otherwise agree, be constituted as follows:

(a)

Subject

to

subparagraph

(g),

the

conciliation

commission shall consist of five members.

(b) The party instituting the proceedings shall appoint

two conciliators to be chosen preferably from the list

referred to in article 2 of this Annex, one of whom may be

its national, unless the parties otherwise agree. Such

appointments

shall

be

included

in

the

notification

referred to in article 1 of this Annex.

(c) The other party to the dispute shall appoint two

conciliators in the manner set forth in subparagraph (b)

within 21 days of receipt of the notification referred to in

article 1 of this Annex. If the appointments are not made

within that period, the party instituting the proceedings

may, within one week of the expiration of that period,

either

terminate

the

proceedings

by

notification

addressed

to

the

other

party

or

request

the

Secretary-General of the United Nations to make the

appointments in accordance with subparagraph (e).

(d) Within 30 days after all four conciliators have been

appointed, they shall appoint a fifth conciliator chosen

from the list referred to in article 2 of this Annex, who

shall be chairman. If the appointment is not made within

that period, either party may, within one week of the

expiration of that period, request the Secretary-General of

the

United

Nations

to

make

the

appointment

in

accordance with subparagraph (e).

(e) Within 30 days of the receipt of a request under

subparagraph (c) or (d), the Secretary-General of the

United Nations shall make the necessary appointments

from the list referred to in article 2 of this Annex in

consultation with the parties to the dispute.

(f) Any vacancy shall be filled in the manner prescribed

for the initial appointment.

(g) Two or more parties which determine by agreement

that they are in the same interest shall appoint two

conciliators jointly. Where two or more parties have

separate interests or there is a disagreement as to

whether they are of the same interest, they shall appoint

conciliators separately.

(h) In disputes involving more than two parties having

separate interests, or where there is disagreement as to

whether they are of the same interest, the parties shall

apply subparagraphs (a) to (f) in so far as possible.

Article 4. Procedure

The conciliation commission shall, unless the parties

otherwise

agree,

determine

its

own

procedure.

The

commission may, with the consent of the parties to the

dispute, invite any State Party to submit to it its views

orally

or

in

writing.

Decisions

of

the

commission

regarding

procedural

matters,

the

report

and

recommendations shall be made by a majority vote of its

members.

Article 5. Amicable settlement

The commission may draw the attention of the parties to

any

measures

which

might

facilitate

an

amicable

settlement of the dispute.

Article 6. Functions of the commission

The commission shall hear the parties, examine their

claims and objections, and make proposals to the parties

with a view to reaching an amicable settlement.

Article 7. Report

1. The commission shall report within 12 months of its

constitution.

Its

report

shall

record any agreements

reached and, failing agreement, its conclusions on all

questions of fact or law relevant to the matter in dispute

and such recommendations as the commission may

deem appropriate for an amicable settlement. The report

shall be deposited with the Secretary-General of the

United Nations and shall immediately be transmitted by

him to the parties to the dispute.

2. The report of the commission, including its conclusions

or recommendations, shall not be binding upon the

parties.

Article 8. Termination

The conciliation proceedings are terminated when a

settlement has been reached, when the parties have

accepted or one party has rejected the recommendations

of the report by written notification addressed to the

Secretary-General of the United Nations, or when a period

of

three

months

has

expired

from

the

date

of

transmission of the report to the parties.

Article 9. Fees and expenses

The fees and expenses of the commission shall be borne

by the parties to the dispute.

Article 10. Right of parties to modify procedure

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