Convention
On Conciliation And Arbitration Within The CSCE

The States parties to this Convention, being States participating in the Conference on Security and Co-operation in Europe,

Conscious of their obligation, as provided for in Article 2, paragraph 3, and Article 33 of the Charter of the United Nations, to settle their disputes peacefully;

Emphasizing that they do not in any way intend to impair other existing institutions or mechanisms, including the International Court of Justice, the European Court of Human Rights, the Court of Justice of the European Communities and the Permanent Court of Arbitration;

Reaffirming their solemn commitment to settle their disputes through peaceful means and their decision to develop mechanisms to settle disputes between participating States;

Recalling that full implementation of all CSCE principles and commitments constitutes in itself an essential element in preventing disputes between the CSCE participating States;

Concerned to further and strengthen the commitments stated, in particular, in the Report of the Meeting of Experts on Peaceful Settlement of Disputes adopted at Valletta and endorsed by the CSCE Council of Ministers of Foreign Affairs at its meeting in Berlin on 19 and 20 June 1991,

Have agreed as follows:

CHAPTER I - GENERAL PROVISIONS

Article 1

Establishment of the Court

A Court of Conciliation and Arbitration shall be established to settle, by means of conciliation and, where appropriate, arbitration, disputes which are submitted to it in accordance with the provisions of this Convention.

Article 2

Conciliation Commissions and Arbitral Tribunals

1. Conciliation shall be undertaken by a Conciliation Commission constituted for each dispute. The Commission shall be made up of conciliators drawn from a list established in accordance with the provisions of Article 3.

2. Arbitration shall be undertaken by an Arbitral Tribunal constituted for each dispute. The Tribunal shall be made up of arbitrators drawn from a list established in accordance with the provisions of Article 4.

3. Together, the conciliators and arbitrators shall constitute the Court of Conciliation and Arbitration within the CSCE, hereinafter referred to as "the Court".

Article 3

Appointment of Conciliators

1. Each State party to this Convention shall appoint, within two months following its entry into force, two conciliators of whom at least one is a national of that State. The other may be a national of another CSCE participating State. A State which becomes party to this Convention after its entry into force shall appoint its conciliators within two months following the entry into force of this Convention for the State concerned.

2. The conciliators must be persons holding or having held senior national or international positions and possessing recognized qualifications in international law, international relations, or the settlement of disputes.

3. Conciliators shall be appointed for a renewable period of six years. Their functions may not be terminated by the appointing State during their term of office. In the event of death, resignation or inability to attend recognized by the Bureau, the State concerned shall appoint a new conciliator; the term of office of the new conciliator shall be the remainder of the term of office of the predecessor.

4. Upon termination of their period of office, conciliators shall continue to hear any cases that they are already dealing with.

5. The names of the conciliators shall be notified to the Registrar, who shall enter them into a list, which shall be communicated to the CSCE Secretariat for transmission to the CSCE participating States.

Article 4

Appointment of Arbitrators

1. Each State party to this Convention shall appoint, within two months following its entry into force, one arbitrator and one alternate, who may be its nationals or nationals of any other CSCE participating State. A State which becomes Party to this Convention after its entry into force shall appoint its arbitrator and the alternate within two months of the entry into force of this Convention for that State.

2. Arbitrators and their alternates must possess the qualifications required in their respective countries for appointment to the highest judicial offices or must be jurisconsults of recognized competence in international law.

3. Arbitrators and their alternates are appointed for a period of six years, which may be renewed once. Their functions may not be terminated by the appointing State party during their term of office. In the event of death, resignation or inability to attend, recognized by the Bureau, the arbitrator shall be replaced by his or her alternate.

4. If an arbitrator and his or her alternate die, resign or are both unable to attend, the fact being recognized by the Bureau, new appointments will be made in accordance with paragraph 1. The new arbitrator and his or her alternate shall complete the term of office of their predecessors.

5. The Rules of the Court may provide for a partial renewal of the arbitrators and their alternates.

6. Upon expiry of their term of office, arbitrators shall continue to hear any cases that they are already dealing with.

7. The names of the arbitrators shall be notified to the Registrar, who shall enter them into a list, which shall be communicated to the CSCE Secretariat for transmission to the CSCE participating States.

Article 5

Independence of the Members of the Court and of the Registrar

The conciliators, the arbitrators and the Registrar shall perform their functions in full independence. Before taking up their duties, they shall make a declaration that they will exercise their powers impartially and conscientiously.

Article 6

Privileges and Immunities

The conciliators, the arbitrators, the Registrar and the agents and counsel of the parties to a dispute shall enjoy, while performing their functions in the territory of the States parties to this Convention, the privileges and immunities accorded to persons connected with the International Court of Justice.

Article 7

Bureau of the Court

1. The Bureau of the Court shall consist of a President, a Vice-President and three other members.

2. The President of the Court shall be elected by the members of the Court from among their number. The President presides over the Bureau.

3. The conciliators and the arbitrators shall each elect from among their number two members of the Bureau and their alternates.

4. The Bureau shall elect its Vice-President from among its members. The Vice-President shall be a conciliator if the President is an arbitrator, and an arbitrator if the President is a conciliator.

5. The Rules of the Court shall establish the procedures for the election of the President as well as of the other members of the Bureau and their alternates.

Article 8

Decision-Making Procedure

1. The decisions of the Court shall be taken by a majority of the members participating in the vote. Those abstaining shall not be considered participating in the vote.

2. The decisions of the Bureau shall be taken by a majority of its members.

3. The decisions of the Conciliation Commissions and the Arbitral Tribunals shall be taken by a majority of their members, who may not abstain from voting.

4. In the event of a tied vote, the vote of the presiding officer shall prevail.

Article 9

Registrar

The Court shall appoint its Registrar and may provide for the appointment of such other officers as may be necessary. The staff regulations of the Registry shall be drawn up by the Bureau and adopted by the States parties to this Convention.

Article 10

Seat

1. The seat of the Court shall be established in Geneva.

2. At the request of the parties to the dispute and in agreement with the Bureau, a Conciliation Commission or an Arbitral Tribunal may meet at another location.

Article 11

Rules of the Court

1. The Court shall adopt its own Rules, which shall be subject to approval by States parties to this Convention.

2. The Rules of the Court shall establish, in particular, the rules of procedure to be followed by the Conciliation Commissions and Arbitral Tribunals constituted pursuant to this Convention. They shall state which of these rules may not be waived by agreement between the parties to the dispute.

Article 12

Working Languages

The Rules of the Court shall establish rules on the use of languages.

Article 13

Financial Protocol

Subject to the provisions of Article 17, all the costs of the Court shall be met by the States parties to this Convention. The provisions for the calculation of the costs; for the drawing up and approval of the annual budget of the Court; for the distribution of the costs among the States parties to this Convention; for the audit of the accounts of the Court; and for related matters, shall be contained in a Financial Protocol to be adopted by the Committee of Senior Officials. A State becomes bound by the Protocol on becoming a party to this Convention.

Article 14

Periodic Report

The Bureau shall annually present to the CSCE Council through the Committee of Senior Officials a report on the activities under this Convention.

Article 15

Notice of Requests for Conciliation or Arbitration

The Registrar of the Court shall give notice to the CSCE Secretariat of all requests for conciliation or arbitration, for immediate transmission to the CSCE participating States.

Article 16

Conduct of Parties - Interim Measures

1. During the proceedings, the parties to the dispute shall refrain from any action which may aggravate the situation or further impede or prevent the settlement of the dispute.

2. The Conciliation Commission may draw the attention of the parties to the dispute submitted to it to the measures the parties could take in order to prevent the dispute from being aggravated or its settlement made more difficult.

3. The Arbitral Tribunal constituted for a dispute may indicate the interim measures that ought to be taken by the parties to the dispute in accordance with the provisions of Article 26, paragraph 4.

Article 17

Procedural Costs

The parties to a dispute and any intervening party shall each bear their own costs.

CHAPTER II - COMPETENCE

Article 18

Competence of the Commission and of the Tribunal

1. Any State party to this Convention may submit to a Conciliation Commission any dispute with another State party which has not been settled within a reasonable period of time through negotiation.

2. Disputes may be submitted to an Arbitral Tribunal under the conditions stipulated in Article 26.

Article 19

Safeguarding the Existing Means of Settlement

1. A Conciliation Commission or an Arbitral Tribunal constituted for a dispute shall take no further action in the case:

(a) If, prior to being submitted to the Commission or the Tribunal, the dispute has been submitted to a court or tribunal whose jurisdiction in respect of the dispute the parties thereto are under a legal obligation to accept, or if such a body has already given a decision on the merits of the dispute;

(b) If the parties to the dispute have accepted in advance the exclusive jurisdiction of a jurisdictional body other than a Tribunal in accordance with this Convention which has jurisdiction to decide, with binding force, on the dispute submitted to it, or if the parties thereto have agreed to seek to settle the dispute exclusively by other means.

2. A Conciliation Commission constituted for a dispute shall take no further action if, even after the dispute has been submitted to it, one or all of the parties refer the dispute to a court or tribunal whose jurisdiction in respect of the dispute the parties thereto are under a legal obligation to accept.

3. A Conciliation Commission shall postpone examining a dispute if this dispute has been submitted to another body which has competence to formulate proposals with respect to this dispute. If those prior efforts do not lead to a settlement of the dispute, the Commission shall resume its work at the request of the parties or one of the parties to the dispute, subject to the provisions of Article 26, paragraph 1.

4. A State may, at the time of signing, ratifying or acceding to this Convention, make a reservation in order to ensure the compatibility of the mechanism of dispute settlement that this Convention establishes with other means of dispute settlement resulting from international undertakings applicable to that State.

5. If, at any time, the parties arrive at a settlement of their dispute, the Commission or Tribunal shall remove the dispute from its list, on receiving written confirmation from all the parties thereto that they have reached a settlement of the dispute.

6. In the event of disagreement between the parties to the dispute with regard to the competence of the Commission or the Tribunal, the decision in the matter shall rest with the Commission or the Tribunal.

CHAPTER III - CONCILIATION

Article 20

Request for the Constitution of a Conciliation Commission

1. Any State party to this Convention may lodge an application with the Registrar requesting the constitution of a Conciliation Commission for a dispute between it and one or more other States parties. Two or more States parties may also jointly lodge an application with the Registrar.

2. The constitution of a Conciliation Commission may also be requested by agreement between two or more States parties or between one or more States parties and one or more other CSCE participating States. The agreement shall be notified to the Registrar.

Article 21

Constitution of the Conciliation Commission

1. Each party to the dispute shall appoint, from the list of conciliators established in accordance with Article 3, one conciliator to sit on the Commission.

2. When more than two States are parties to the same dispute, the States asserting the same interest may agree to appoint one single conciliator. If they do not so agree, each of the two sides to the dispute shall appoint the same number of conciliators up to a maximum decided by the Bureau.

3. Any State which is a party to a dispute submitted to a Conciliation Commission and which is not a party to this Convention, may appoint a person to sit on the Commission, either from the list of conciliators established in accordance with Article 3, or from among other persons who are nationals of a CSCE participating State. In this event, for the purpose of examining the dispute, such persons shall have the same rights and the same obligations as the other members of the Commission. They shall perform their functions in full independence and shall make the declaration required by Article 5 before taking their seats on the Commission.

4. As soon as the application or the agreement whereby the parties to a dispute have requested the constitution of a Conciliation Commission is received, the President of the Court shall consult the parties to the dispute as to the composition of the rest of the Commission.

5. The Bureau shall appoint three further conciliators to sit on the Commission. This number can be increased or decreased by the Bureau, provided it is uneven. Members of the Bureau and their alternates, who are on the list of conciliators, shall be eligible for appointment to the Commission.

6. The Commission shall elect its Chairman from among the members appointed by the Bureau.

7. The Rules of the Court shall stipulate the procedures applicable if an objection is raised to one of the members appointed to sit on the Commission or if that member is unable to or refuses to sit at the commencement or in the course of the proceedings.

8. Any question as to the application of this article shall be decided by the Bureau as a preliminary matter.

Article 22

Procedure for the Constitution of a Conciliation Commission

1. If the constitution of a Conciliation Commission is requested by means of an application, the application shall state the subject of the dispute, the name of the party or parties against which the application is directed, and the name of the conciliator or conciliators appointed by the requesting party or parties to the dispute. The application shall also briefly indicate the means of settlement previously resorted to.

2. As soon as an application has been received, the Registrar shall notify the other party or parties to the dispute mentioned in the application. Within a period of fifteen days from the notification, the other party or parties to the dispute shall appoint the conciliator or conciliators of their choice to sit on the Commission. If, within this period, one or more parties to the dispute have not appointed the member or members of the Commission whom they are entitled to appoint, the Bureau shall appoint the appropriate number of conciliators. Such appointment shall be made from among the conciliators appointed in accordance with Article 3 by the party or each of the parties involved or, if those parties have not yet appointed conciliators, from among the other conciliators not appointed by the other party or parties to the dispute.

3. If the constitution of a Conciliation Commission is requested by means of an agreement, the agreement shall state the subject of the dispute. If there is no agreement, in whole or in part, concerning the subject of the dispute, each party thereto may formulate its own position in respect of such subject.

4. At the same time as the parties request the constitution of a Conciliation Commission by agreement, each party shall notify the Registrar of the name of the conciliator or conciliators whom it has appointed to sit on the Commission.

Article 23

Conciliation Procedure

1. The conciliation proceedings shall be confidential and all parties to the dispute shall have the right to be heard. Subject to the provisions of Articles 10 and 11 and the Rules of the Court, the Conciliation Commission shall, after consultation with the parties to the dispute, determine the procedure.

2. If the parties to the dispute agree thereon, the Conciliation Commission may invite any State party to this Convention which has an interest in the settlement of the dispute to participate in the proceedings.

Article 24

Objective of Conciliation

The Conciliation Commission shall assist the parties to the dispute in finding a settlement in accordance with international law and their CSCE commitments.

Article 25

Result of the Conciliation

1. If, during the proceedings, the parties to the dispute, with the help of the Conciliation Commission, reach a mutually acceptable settlement, they shall record the terms of this settlement in a summary of conclusions signed by their representatives and by the members of the Commission. The signing of the document shall conclude the proceedings. The CSCE Council shall be informed through the Committee of Senior Officials of the success of the conciliation.

2. When the Conciliation Commission considers that all the aspects of the dispute and all the possibilities of finding a solution have been explored, it shall draw up a final report. The report shall contain the proposals of the Commission for the peaceful settlement of the dispute.

3. The report of the Conciliation Commission shall be notified to the parties to the dispute, which shall have a period of thirty days in which to examine it and inform the Chairman of the Commission whether they are willing to accept the proposed settlement.

4. If a party to the dispute does not accept the proposed settlement, the other party or parties are no longer bound by their own acceptance thereof.

5. If, within the period prescribed in paragraph 3, the parties to the dispute have not accepted the proposed settlement, the report shall be forwarded to the CSCE Council through the Committee of Senior Officials.

6. A report shall also be drawn up which provides immediate notification to the CSCE Council through the Committee of Senior Officials of circumstances where a party fails to appear for conciliation or leaves a procedure after it has begun.

CHAPTER IV - ARBITRATION

Article 26

Request for the Constitution of an Arbitral Tribunal

1. A request for arbitration may be made at any time by agreement between two or more States parties to this Convention or between one or more States parties to this Convention and one or more other CSCE participating States.

2. The States parties to this Convention may at any time by a notice addressed to the Depositary declare that they recognize as compulsory, ipso facto and without special agreement, the jurisdiction of an Arbitral Tribunal, subject to reciprocity. Such a declaration may be made for an unlimited period or for a specified time. It may cover all disputes or exclude disputes concerning a State's territorial integrity, national defence, title to sovereignty over land territory, or competing claims with regard to jurisdiction over other areas.

3. A request for arbitration against a State party to this Convention which has made the declaration specified in paragraph 2 may be made by means of an application to the Registrar only after a period of thirty days after the report of the Conciliation Commission which has dealt with the dispute has been transmitted to the CSCE Council in accordance with the provisions of Article 25, paragraph 5.

4. When a dispute is submitted to an Arbitral Tribunal in accordance with this article, the Tribunal may, on its own authority or at the request of one or all of the parties to the dispute, indicate interim measures that ought to be taken by the parties to the dispute to avoid an aggravation of the dispute, greater difficulty in reaching a solution, or the possibility of a future award of the Tribunal becoming unenforceable owing to the conduct of one or more of the parties to the dispute.

Article 27

Cases Brought before an Arbitral Tribunal

1. If a request for arbitration is made by means of an agreement, it shall indicate the subject of the dispute. If there is no agreement, in whole or in part, concerning the subject of the dispute, each party thereto may formulate its own position in respect of such subject.

2. If a request for arbitration is made by means of an application, it shall indicate the subject of the dispute, the States party or parties to this Convention against which it is directed, and the main elements of fact and law on which it is grounded. As soon as the application is received, the Registrar shall notify the other States party or parties mentioned in the application.

Article 28

Constitution of the Arbitral Tribunal

1. When a request for arbitration is submitted, an Arbitral Tribunal shall be constituted.

2. The arbitrators appointed by the parties to the dispute in accordance with Article 4 are ex officio members of the Tribunal. When more than two States are parties to the same dispute, the States asserting the same interest may agree to appoint one single arbitrator.

3. The Bureau shall appoint, from among the arbitrators, a number of members to sit on the Tribunal so that the members appointed by the Bureau total at least one more than the ex officio members. Members of the Bureau and their alternates, who are on the list of arbitrators, shall be eligible for appointment to the Tribunal.

4. If an ex officio member is unable to attend or has previously taken part in any capacity in the hearings of the case arising from the dispute submitted to the Tribunal, that member shall be replaced by his or her alternate. If the alternate is in the same situation, the State involved shall appoint a member to examine the dispute pursuant to the terms and conditions specified in paragraph 5. In the event of a question arising as to the capacity of a member or of his or her alternate to sit on the Tribunal, the matter shall be decided by the Bureau.

5. Any State, which is a party to a dispute submitted to an Arbitral Tribunal and which is not party to this Convention, may appoint a person of its choice to sit on the Tribunal, either from the list of arbitrators established in accordance with Article 4 or from among other persons who are nationals of a CSCE participating State. Any person thus appointed must meet the conditions specified in Article 4, paragraph 2, and for the purpose of examining the dispute, shall have the same rights and obligations as the other members of the Tribunal. The person shall perform his or her functions in full independence and shall make the declaration required by Article 5 before sitting on the Tribunal.

6. The Tribunal shall appoint its Chairman from among the members appointed by the Bureau.

7. In the event that one of the members of the Tribunal appointed by the Bureau is unable to attend the proceedings, that member shall not be replaced unless the number of members appointed by the Bureau falls below the number of ex officio members, or members appointed by the parties to the dispute in accordance with paragraph 5. In this event, one or more new members shall be appointed by the Bureau pursuant to paragraphs 3 and 4 of this article. A new Chairman will not be elected if one or more new members are appointed, unless the member unable to attend is the Chairman of the Tribunal.

Article 29

Arbitration Procedure

1. All the parties to the dispute shall have the right to be heard during the arbitration proceedings, which shall conform to the principles of a fair trial. The proceedings shall consist of a written part and an oral part.

2. The Arbitral Tribunal shall have, in relation to the parties to the dispute, the necessary fact-finding and investigative powers to carry out its tasks.

3. Any CSCE participating State which considers that it has a particular interest of a legal nature likely to be affected by the ruling of the Tribunal may, within fifteen days of the transmission of the notification by the CSCE Secretariat as specified in Article 15, address to the Registrar a request to intervene. This request shall be immediately transmitted to the parties to the dispute and to the Tribunal constituted for the dispute.

4. If the intervening State establishes that it has such an interest, it shall be authorized to participate in the proceedings in so far as may be required for the protection of this interest. The relevant part of the ruling of the Tribunal is binding upon the intervening State.

5. The parties to the dispute have a period of thirty days in which to address their observations regarding the request for intervention to the Tribunal. The Tribunal shall render its decision on the admissibility of the request.

6. The hearings in the Tribunal shall be held in camera, unless the Tribunal decides otherwise at the request of the parties to the dispute.

7. In the event that one or more parties to the dispute fail to appear, the other party or parties thereto may request the Tribunal to decide in favour of its or their claims. Before doing so, the Tribunal must satisfy itself that it is competent and that the claims of the party or parties taking part in the proceedings are well-founded.

Article 30

Function of the Arbitral Tribunal

The function of the Arbitral Tribunal shall be to decide, in accordance with international law, such disputes as are submitted to it. This provision shall not prejudice the power of the Tribunal to decide a case ex aequo et bono , if the parties to the dispute so agree.

Article 31

Arbitral Award

1. The award of the Arbitral Tribunal shall state the reasons on which it is based. If it does not represent in whole or in part the unanimous opinion of the members of the Arbitral Tribunal, any member shall be entitled to deliver a separate or dissenting opinion.

2. Subject to Article 29, paragraph 4, the award of the Tribunal shall have binding force only between the parties to the dispute and in respect of the case to which it relates.

3. The award shall be final and not subject to appeal. However, the parties to the dispute or one of them may request that the Tribunal interpret its award as to the meaning or scope. Unless the parties to the dispute agree otherwise, such request shall be made at the latest within six months after the communication of the award. After receiving the observations of the parties to the dispute, the Tribunal shall render its interpretation as soon as possible.

4. An application for revision of the award may be made only when it is based upon the discovery of some fact which is of such a nature as to be a decisive factor and which, when the award was rendered, was unknown to the Tribunal and to the party or parties to the dispute claiming revision. The application for revision must be made at the latest within six months of the discovery of the new fact. No application for revision may be made after the lapse of ten years from the date of the award.

5. As far as possible, the examination of a request for interpretation or an application for revision should be carried out by the Tribunal which made the award in question. If the Bureau should find this to be impossible, another Tribunal shall be constituted in accordance with the provisions of Article 28.

Article 32

Publication of the Arbitral Award

The award shall be published by the Registrar. A certified copy shall be communicated to the parties to the dispute and to the CSCE Council through the Committee of Senior Officials.

CHAPTER V - FINAL PROVISIONS

Article 33

Signature and Entry into Force

1. This Convention shall be open for signature with the Government of Sweden by the CSCE participating States until 31 March 1993. It shall be subject to ratification.

2. The CSCE participating States which have not signed this Convention may subsequently accede thereto.

3. This Convention shall enter into force two months after the date of deposit of the twelfth instrument of ratification or accession.

4. For every State which ratifies or accedes to this Convention after the deposit of the twelfth instrument of ratification or accession, the Convention shall enter into force two months after its instrument of ratification or accession has been deposited.

5. The Government of Sweden shall serve as depositary of this Convention.

Article 34

Reservations

This Convention may not be the subject of any reservation that it does not expressly authorize.

Article 35

Amendments

1. Amendments to this Convention must be adopted in accordance with the following paragraphs.

2. Amendments to this Convention may be proposed by any State party thereto, and shall be communicated by the Depositary to the CSCE Secretariat for transmission to the CSCE participating States.

3. If the CSCE Council adopts the proposed text of the amendment, the text shall be forwarded by the Depositary to States parties to this Convention for acceptance in accordance with their respective constitutional requirements.

4. Any such amendment shall come into force on the thirtieth day after all States parties to this Convention have informed the Depositary of their acceptance thereof.

Article 36

Denunciation

1. Any State party to this Convention may, at any time, denounce this Convention by means of a notification addressed to the Depositary.

2. Such denunciation shall become effective one year after the date of receipt of the notification by the Depositary.

3. This Convention shall, however, continue to apply for the denouncing party with respect to proceedings which are under way at the time the denunciation enters into force. Such proceedings shall be pursued to their conclusion.

Article 37

Notifications and Communications

The notifications and communications to be made by the Depositary shall be transmitted to the Registrar and to the CSCE Secretariat for further transmission to the CSCE participating States.

Article 38

Non-Parties

In conformity with international law, it is confirmed that nothing in this Convention shall be interpreted to establish any obligations or commitments for CSCE participating States that are not parties to this Convention if not expressly provided for and expressly accepted by such States in writing.

Article 39

Transitional Provisions

1. The Court shall proceed, within four months of the entry into force of this Convention, to elect the Bureau, to adopt its rules and to appoint the Registrar in accordance with the provisions of Articles 7, 9 and 11. The host Government of the Court shall, in co-operation with the Depositary, make the arrangements required.

2. Until a Registrar is appointed, the duties of the Registrar under Article 3, paragraph 5, and Article 4, paragraph 7 shall be performed by the Depositary.

Done at in the English, French, German, Italian, Russian and Spanish languages, all six language versions being equally authentic, on

Financial Protocol

Established In Accordance With Article 13 Of the Convention On Conciliation And Arbitration Within The CSCE

Article 1

Costs of the Court

1. All the costs of the Court established by the Convention on Conciliation and Arbitration within the CSCE (hereinafter referred to as "the Convention") shall be met by the States parties to the Convention. Costs of conciliators and arbitrators shall be costs of the Court.

2. The obligations of the host State with respect to expenditures in connection with the premises and furniture for use by the Court, their maintence, insurance and security, as well as utilities, shall be set out in an exchange of letters between the Court acting with the consent of and on behalf of the States parties to the Convention, and the host State.

Article 2

Contributions to the budget of the Court

1. Contributions to the budget of the Court shall be divided among the States parties to the Convention according to the scale of distribution applicable within the CSCE, adjusted to take into account the difference in number between the CSCE participating States and the States parties to the Convention.

2. If a State ratifies or accedes to the Convention after its entry into force, its contribution shall be equal, for the current financial year, to one-twelfth of its portion of the adjusted scale, as established according to paragraph 1 of this Article, for each full month of that financial year which remains after the date on which the Convention enters into force in respect of it.

3. If a State which is not a party to the Convention submits a dispute to the Court pursuant to the provisions of Article 20, paragraph 2, or Article 26, paragraph 1 of the Convention, it shall contribute to the financing of the budget of the Court, for the duration of the proceedings, as if it were a party to the Convention.

For the application of this paragraph, the conciliation shall be presumed to commence on the day the Registrar receives notice of the agreement of the parties to set up a Commission and to end on the day the Commission notifies its report to the parties. If a party withdraws from the poceedings, these proceedings shall be considered as ended on the day of notice of the report specified in Article 25, paragraph 6 of the Convention. The arbitration proceedings shall be presumed to start on the day the Registrar receives notice of the agreement of the parties to establish a Tribunal and to end on the day the Tribunal renders its award.

Article 3

Financial Year and Budget

1. The financial year shall be from 1 January to 31 December.

2. The Registrar, acting with the concurrence of the Bureau of the Court, shall establish each year a budget proposal for the Court. The budget proposal for the ensuing financial year shall be submitted to the States parties to the Convention before 15 September.

3. The budget shall be approved by the representatives of the States parties to the Convention. Consideration and approval of the budget shall take place in Vienna unless the States parties to the Convention otherwise agree. On approval of the budget for the financial year the Registrar shall request the States parties to the Convention to remit their contributions.

If the budget is not approved by 31 December the Court will operate on the basis of the preceding budget and, without prejudice to later adjustments, the Registrar shall request the States parties to the Convention to remit their contributions in accordance with this budget. The Registrar shall request States parties to the Convention to make fifty per cent of their contributions available on 1 January and the remaining fifty per cent on 1 April.

4. Barring a decision to the contrary by the representatives of the States parties to the Convention, the budget shall be established in Swiss francs and the contributions of the States shall be paid in this currency.

5. A State which ratifies or accedes to the Convention after its entry into force shall pay its first contribution to the budget within two months after the request by the Registrar.

6. States which, without being parties to the Convention, have submitted a dispute to the Court, shall pay their contribution within two months after the request by the Registrar.

7. The year the Convention enters into force, the States parties to the Convention shall pay their contribution to the budget within two months following the date of deposit of the twelfth instrument of ratification of the Convention. This budget is preliminarily fixed at 250,000 Swiss francs.

Article 4

Obligations. Payments and Revised Budget

1. The approved budget shall constitute authorization to the Registrar, acting under the responsibility of the Bureau of the Court, to incur obligations and make payments up to the amounts and for the purposes approved.

2. The Registrar, acting under the responsibility of the Bureau of the Court, is authorized to make transfers between items and sub-items of up to 15 per cent of items/sub-items. All such transfers must be reported by thie Registrar in connection with the financial statement mentioned in Article 9 of this Protocol.

3. Obligations remaining undischarged at the end of the financial year shall be carried over to the next financial year.

4. If so obliged by circumstances and following careful examination of available ressources with a view to identifying savings, the Registrar is authorized to submit a revised budget, which may entail requests for supplementary appropriations, for the approval of the representatives of the States parties to the Conventions.

5. Any surplus for a given financial year shall be deducted from the assessed contributions for the financial year following the one in which the accounts have heen approved by the representatives of the States parties to the Convention. Any deficit shall be charged to the ensuing financial year unless the representatives of the States parties to the Convention decide on supplementary contributions.

Article 5

Working Capital Fund

A working capital fund may be established in case the States parties to the Convention deem it necessery. It will be funded by the States parties to the Convention.

Article 6

Allowances and Nominal Retainers

1. Members of the Bureau of the Court, of the Conciliation Commission and of the Arbitral Tribunals shall receive, for each day on which they exercise their functions, a daily allowance.

2. Members of the Bureau of the Court shall additionally receive a nominal annual retainer.

3. The daily allowance and the nominal annual retainer shall be determined by the representatives of the States parties to the Convention.

Article 7

Salaries, Social Security and Pensions

1. The Registrar and any other registry staff appointed in accordance with Article 9 of the Convention Shall receive a salary to be determined by the representatives of the States parties to the Convention.

2. The registry staff shall be limited to the strict minimum needed to ensure the operation of the Court.

3. The representatives of the States parties to the Convention shall ensure that the Registrar and the registry staff are afforded an adequate social security scheme and retirement pension.

Article 8

Travel Expenses

1. Travel expenses which are absolutely necessary for exercising their functions shall be paid to the members of the Bureau of the Court, of the Conciliation Commissions and of the Arbitral Tribunals and to the Registrar and the registry staff.

2. Travel expenses shall comprese actual transportation costs, including expenses normally incidental to transportation, and a daily subsistense allowance to oover all charges of meals, lodging, fees and gratuities and other personal expenses. The daily subsistence allowance shall be determined by the representatives of the States parties to the Convention.

Article 9

Records and Accounts

1. The Registrar, acting under the authority of the Bureau of the Court, shall ensure that appropriate records and accounts are kept of the transactions and that all payments are properly authorized.

2. The Registrar, acting under the authority of the Bureau of the Court, shall submit to the States parties to the Convention, not later than 1 March, an annual financial statement showing, for the preceding financial year:

(a) the income and expenditures relating to all accounts;

(b) the situation with regard to budget provisions;

(c) the financial assets and liabilities at the end of the financial year.

Article 10

Audit

1. The accounts of the Court shall be audited by two auditors, of different nationalities, appointed for renewable periods of three years by the representatives of the States parties to the Convention.

Persons appearing or having appeared on the lists of conciliators or arbitrators or having received payment by the Court pursuant to Article 7 of this Protocol may not be auditors.

2. Auditors shall annually conduct audits. They shall, in particular, check the accuracy of the books, the statement of assets and liabilities, and the accounts. The accounts shall be available for the annual auditing and inspection not later than 1 March.

3. Auditors shall perform such audits as they deem necessary to certify:

(a) that the annual finansial statement submitted to them is correct and in accordance with the books and records of the Court,

(b) that the financial transactions recorded in this statement have been affected in accordance with the relevant rules, the budgetary provisions and other directives which may be applicable, and

(c) that the funds on deposit and on hand have been verified by certificates received directly from the depositories or by actual count.

4. The Registrar shall give auditors such assistance and facilities as may be needed for the proper discharge of their duties. Auditors shall, in particular, have free access to the books of account, records and documents which, in their opinion, are necessary for the audit.

5. Auditors shall annually draw up a report certifying the accounts and setting forth the comments warranted by the audit. They may, in this context, also make such observations as they deem necessary regarding the efficiency of financial procedures, the accounting system and the internal financial control.

6. The report shall be submitted to the representatives of the States parties to the Convention not later than four months after the end of the financial year to which the accounts refer. The report shall be transmitted to the Registrar before hand, so that he will have at least 15 days in which to furnish such explanations and justifications as he may consider necessary.

7. In addition to the annual auditing, auditors will at any time have free access to check the books, the statement of assets and liabilities, and accounts.

8. On the basis of the audit report, the representatives of the States parties to the Convention shall signify their acceptance of the annual financial statement or take such other action as may be considered appropriate.

Article 11

Special Disbursement Account

1. A special disbursement account may be established by the States parties to the Convention aimed at lowering the procedural costs for the States parties to disputes submitted to the Court which have difficulties paying these costs. It will be funded by voluntary contributions from States parties to the Convention.

2. A State party to a dispute submitted to the Court that wishes to receive funds from the special disbursement account shall file a request to the Registrar, with a detailed statement estimating procedural costs.

The Bureau of the Court shall examine the request and forward its recomendation to the representatives of the States parties to the Convention which shall decide whether to grant this request and to what extent.

After the case has been heard, the State having received funds from the special disbursement account shall address to the Registrar, for study by the Bureau, a detailed statement of procedural costs actually expended and shall proceed, if need be, with reimbursing the sums in excess of the actual costs.

Article 12

Decision Making

All decisions by the States parties to the Convention or their representatives under this Prctocol shall be taken by consensus.

Article 13

Amendments

Amendments to this Protocol shall be adopted in accordance with the provisions of Article 35 of the Convention. The Bureau of the Court may address its opinion on the proposed amendments to the CSCE Secretariat for transmission to the CSCE participating States.

This Protocol, established in the English, French, German, Italian, Russian and Spanish languages, all six-language versions being equally authentic, having been adopted by the Committee of Senior Officials at Prague, on 28 April 1993 in accordance with Article 13 of the Convention on Conciliation and Arbitration within the CSCE is deposited with the Government of Sweden.