1 DE AGOSTO DE 1997

1340-(221)

4 — In the performance of their duties the Director -General and the staff shall not seek or receive instructions from any government or from any other source external to the Enterprise. They shall refrain from any action which might reflect on their position as international officials of the Enterprise responsible only to the Enterprise. Each State Party undertakes to respect the exclusively international character of the responsibilities of the Director-General and the staff and not to seek to influence them in the discharge of their responsibilities.

5 — The responsibilities set forth in article 168, paragraph 2, are equally applicable to the staff of the Enterprise.

Article 8 Location

The Enterprise shall have its principal office at the seat of the Authority. The Enterprise may establish other offices and facilities in the territory of any State Party with the consent of that State Party.

Article 9 Reports and financial statements

1 — The Enterprise shall, not later than three months after the end of each financial year, submit to the Council for its consideration an annual report containing an audited statement of its accounts and shall transmit to the Council at appropriate intervals a summary statement of its financial position and a profit and loss statement showing the results of its operations.

2 — The Enterprise shall publish its annual report and such other reports as it finds appropriate.

3 — All reports and financial statements referred to in this article shall be distributed to the members of the Authority.

Article 10 Allocation of net income

1 — Subject to paragraph 3, the Enterprise shall make payments to the Authority under annex in, article 13, or their equivalent.

2 — The Assembly shall, upon the recommendation of the Governing Board, determine what portion of the net income of the Enterprise shall be retained as reserves of the Enterprise. The remainder shall be transferred to the Authority.

3 — During an initial period required for the Enterprise to become self-supporting, which shall not exceed 10 years from the commencement of commercial production by it, the Assembly shall exempt the Enterprise from the payments referred to in paragraph 1, and shall leave all of the net income of the Enterprise in its reserves.

Article 11 Finances

1 — The funds of the Enterprise shall include:

a) Amounts received from the Authority in accordance with article 173, paragraph 2, b);

b) Voluntary contributions made by States Parties for the purpose of financing activities of the Enterprise;

c) Amounts borrowed by the Enterprise in accordance with paragraphs 2 and 3;

d) Income of the Enterprise from its operations;

e) Other funds made available to the Enterprise to enable it to commence operations as soon as possible and to carry out its functions.

2 — a) The Enterprise shall have the power to borrow funds and to furnish such collateral or other security as it may determine. Before making a public sale of its obligations in the financial markets or currency of a State Party, the Enterprise shall obtain the approval of that State Party. The total amount of borrowings shall be approved by the Council upon the recommendation of the Governing Board.

b) States Parties shall make every reasonable effort to support applications by the Enterprise for loans on capital markets and from international financial institutions.

3 — a) The Enterprise shall be provided with the funds necessary to explore and exploit one mine site, and to transport, process and market the minerals recovered therefrom and the nickel, copper, cobalt and manganese obtained, and to meet its initial, administrative expenses. The amount of the said funds, and the criteria and factors for its adjustment, shall be included by the Preparatory Commission in the draft rules, regulations and procedures of the Authority.

b) All States Parties shall make available to the Enterprise an amount equivalent to one half of the funds referred to in subparagraph a) by way of long-term interest-free loans in accordance with the scale of assessments for the United Nations regular budget in force at the time when the assessments are made, adjusted to take into account the States which are not members, of the United Nations. Debts incurred by the Enterprise in raising the other half of the funds shall be guaranteed by all States Parties in accordance with the same scale.

c) If the sum of the financial contributions of States Parties is less than the funds to be provided to the Enter-prise^under subparagraph a), the Assembly shall, at its first session, consider the extent of the shortfall and adopt by consensus measures for dealing with this shortfall, taking into account the obligation of States Parties under subparagraphs a) and b) and any recommendations of the Preparatory Commission.

d) — /) Each State Party shall, within 60 days after the entry into force of this Convention, or within 30 days after the deposit of its instrument of ratification or accession, whichever is later, deposit with the Enterprise irrevocable, non-negotiable, non-interest-bearing promissory notes in the amount of the share of such State Party of interest-free loans pursuant to subparagraph b).

ii) The Board shall prepare, at the earliest practicable date after this Convention enters into force, and thereafter at annual or other appropriate intervals, a schedule of the magnitude and timing of its requirements for the funding of its administrative expenses and for activities carried out by the Enterprise in accordance with article 170 and article 12 of this annex.

Hi) The States Parties shall, thereupon, be notified by the Enterprise, through the Authority, of their respective schares of the funds in accordance with subparagrapgh b), required for such expenses. The Enterprise shall encash such amounts of the promissory notes as may be required to meet the expenditure referred to in the shedule with respect to interest-free loans.