Show e f THE VOICE OF 6 BUSINESS j o tt l w I t iY t t Third world radicals delay access to t seabed mineral wealth By Richard L L. L Lesher Irea Tres Chamber of Gt Commerce or of the United States Mysterious nodules lying on the floor of the ocean contain immense reserves of iron manganese nickel cobalt copper and perhaps other minerals worth at least 3 trillion The implications for a world worried about mineral minera shortages are obvious Unfortunately the right to develop these resources at the lowest possible cost to the consumer is in danger of being bargained away in a vain attempt attempt at tempt to placate Third World radicals Heres Here's the story TilE THE FIFTH Session of the theUN's theUN's theUN's UNs UN's Third Law of the Sea Conference ended on September Sep 17 Fitting the pattern of previous sessions of the 3rd Conference dating back to 1973 the delegates could agree on little except to reconvene and thereby at least preserve their own jobs The Sixth Session will also take place at the UN in New NewYork NewYork NewYork York in May 1977 The cause of the general deadlock is the inability of developing and industrialized countries to agree to a formula for exploitation exploitation exploitation ex ex- ex- ex of deep seabed minerals Few delegates have hav indicated optimism that a solution can be found in May with some some admitting that another session resulting in n no progress toward developing an international seabed regime might just kill the entire exercise Progress in all areas towards sari ti-sari sea law treaty is dependent dependent on resolution of the deep seabed minerals issue All parties including the US U.S. government agree that a UN seabed authority should supervise the mining of nodules found on the deep seabed AT PRESENT the US U.S. is the only country with the un un- technology to mine the nodules And the technology belongs to private companies not to the government Several US U.S. firms are interested in deep sea mining Nevertheless the developing countries banded handed together in the Group of 77 71 haved bayed demanded that theUN the theUN theUN UN seabed authority establish its own mining operation called The Enterprise Enterprise Enterprise En En- This proposal has been accepted by the US U.S. However the Group of 77 71 also wants the seabed authority to have the power to dictate where private seabed mining firms competing with The Enterprise may conduct operations and the authority to restrict production so as to protect competing land-based land mining operations In other words the authority to fix prices The TheUS US U.S. has rejected these proposals and has demanded that private mining companies have guaranteed access to the seabed and freedom to exploit assigned areas The US U.S. in attempts at compromise has offered to share the seabed equally with The to share a portion of profits from seabed mining with all all' nations through the UN authority to extend exten financing and technical assistance to The Enterprise and even to renegotiate the entire arrangement after 25 years In response the Group of 77 71 has not modified any of its demands MODERATES within the Group of 77 71 are known to agree with the position but the radicals retained sufficient strength to dictate the Groups' Groups position through the last day of the session Some observers have speculated that the Group of 77 71 may be delaying hoping for more concessions from the new US U.S. Administration The US U.S. does have an option in the form farm of legislation beyond yond the UN conference But exercise of it would be at the expense of further antagonizing the developing world Already reported by several congressional committees is the Deep Seabed Hard liard Minerals Act HR 1111 1270 which has been held back from floor consideration pending an outcome of the Law of the Sea Conference This legislation would unilaterally license US U.S. firms to conduct for at least 15 years deep seabed mining the license being effective against any other firm subject to US U.S. jurisdiction or the jurisdiction of any state which reciprocally recognizes such US U.S. license IF LICENSEES should suffer loss of rights under a subsequent subsequent subsequent sub sub- sequent multilateral seabed treaty ratified by the US U.S. the US U.S. Government would compensate the licensees for their investment minus profits Approval of this or similar proposals as an expression expression expression ex ex- ex- ex of congressional exasperation with UN efforts to establish a legal regime sanctioning sanctioning sanctioning sanc sanc- orderly deep seabed exploitation could sabotage the Law of the Sea Conference The Sixth Session next May Maywill Maywill Maywill will probably occur b before fore congressional patience expires but the Sixth Session could well present the last chance for the conference which has by now almost bec become me a semiannual institution Success in at least some areas is a necessity as the alternative may be international international international in in- anarchy with respect to marine resource exploitation Ironically the Third World orld countries that are holding up agreement have the most to lose if the conference falls apart through their intransigence Seabed minerals would then by mined by those with the skill resources efficiency and daring to do the job And maybe that's not such a bad idea |