Opened for signature at Washington June 4, 1965-Continued

1 The Ambassador of Algeria informed the Secretary of State by a note dated Aug. 2, 1966, in reference to his signature of the Supplementary Agreement on Arbitration that "while signing the above-mentioned Agreement, this signature shall not be construed as implying political recognition of 'Israel'."

2 The Embassy of Iraq informed the Department of State by a note dated Mar. 1, 1966, in reference to the signature by the Ambassador of Iraq of the Agreement Establishing Interim Arrangements for a Global Commercial Communications Satellite System and the Supplementary Agreement on Arbitration on Feb. 17, 1965, and Oct. 27, 1965, respectively, that "while adhering to the above-mentioned agreements, the Embassy declares that these shall not be construed as implying political recognition of 'Israel'."

3 The Ambassador of Israel informed the Secretary of State by a note dated Mar. 9, 1966, in reference to the declaration made by the Ambassador of Saudi Arabia in his note of Nov. 26, 1965, that "The Government of Israel will, insofar as concerns the substance of the matter, adopt toward the Kingdom of Saudi Arabia an attitude of complete reciprocity."

At the time of signing the agreement the Chargé d'Affaires ad interim of Kuwait notified the Department of State of the following "Understanding":

"In signing the Supplementary Agreement on Arbitration, the Government of the State of Kuwait takes the view that its signature of the said agreement does not in any way imply its recognition of Israel. "The Government of the State of Kuwait wishes further to indicate that its understanding described above is in conformity with the general practice of the State of Kuwait regarding signature, ratification or accession to an agreement of which a country not recognized by the State of Kuwait is a party."

The Chargé d'Affaires ad interim of Libya informed the Secretary of State by a note dated Dec. 27, 1965, that "the accession by the Government of Libya to the Agreement Establishing Interim Arrangements for a Global Commercial Communication System and the related agreements should not be construed as implying recognition by the Kingdom of Libya of the Israeli authorities in the occupied part of Palestine." The Embassy of Saudi Arabia informed the Department of State by a note dated Nov. 26, 1965, in reference to the signature of the supplementary agreement by the Ambassador of Saudi Arabia on Sept. 1, 1965, that "while adhering to the above-mentioned agreement, the Embassy declares that this shall not be construed as implying political recognition of the Government of Israel."

7 The Embassy of Tunisia informed the Secretary of State by a note dated Aug. 1, 1966, in reference to the signature of the Supplementary Agreement on Arbitration related to the Agreement Establishing Interim Arrangements for a Global Commercial Communications Satellite System, that "while adhering to the above-mentioned agreements, the Embassy declares that these shall not be construed as implying political recognition of 'Israel'."

SUPPLEMENTARY AGREEMENT ON ARBITRATION

Opened for signature at Washington on June 4, 1965

(The agreement has parallel English and French texts. The English text alone is printed below.)

Whereas Article 14 of the Special Agreement signed pursuant to Article II of the Agreement Establishing Interim Arrangements for a Global Commercial Communications Satellite System opened for signature on 20 August, 1964, at Washington provides for arrangements to be made by a Supplementary Agreementy whereby legal disputes may, if not otherwise settled, be submitted to the decision of an impartial tribunal;

It is hereby agreed as follows:

ARTICLE 1

In this Supplementary Agreement:

(a) "The Agreement" means the Agreement Establishing Interim Arrangements for a Global Commercial Communications Satellite System opened for signature on 20 August, 1964, at Washington;

(b) "The Special Agreement" means the Special Agreement signed pursuant to Article II of the Agreement;

(c) "The Committee" means the Interim Communications Satellite Committee established by Article IV of the Agreement;

(d) "Signatory" means, as in the Special Agreement, a Government or Communications entity which has signed the Special Agreement and in respect of which it is in force.

ARTICLE 2

(a) An arbitral tribunal constituted under this Supplementary Agreement is competent to give a decision in any legal dispute over the following matter: whether an action or a failure to act by the Committee or by any signatory or signatories is authorized by or is in compliance with the Agreement and the Special Agreement.

(b) An arbitral tribunal constituted in accordance with this Supplementary Agreement shall also be competent to give a decision on any legal dispute arising in connection with any other agreement relating to the arrangements established by the Agreement and the Special Agreement where the signatories which are parties to that other agreement have agreed to confer such a competence. A tribunal in exercising such competence shall act in accordance with the agreement which confers competence on it.

(c) Only the following may be parties in arbitration proceedings instituted under this Supplementary Agreement:

(i) Any signatory,

(ii) The Committee.

ARTICLE 3

(a) Within 30 days of the entry into force of this Supplementary Agreement and every two years thereafter, each signatory shall submit to the Committee the name of a legal expert of generally recognized ability who will be available for the succeeding two years to serve as president of tribunals constituted under this Supplementary Agreement. From such nominees the Committee shall appoint seven individuals to a panel from which presidents of tribunals shall be selected.

(b) The members of the panel shall be appointed by the unanimous agreement of the members of the Committee or, if not so appointed within three months from the entry into force of this Supplementary Agreement and every two years thereafter, by a decision of the Committee taken in the same manner mentioned in Article V (c) of the Agreement in respect of the matters listed in sub-paragraphs (i) to (xiv) of that paragraph. The members of the panel shall be appointed for a term of two years, and may be reappointed.

(c) For the purpose of designating a chairman, the panel shall be convened to meet by the chairman of the Committee as soon as possible after the panel has been appointed. The quorum for a meeting of the panel shall be six members. After discussion among its members, the panel shall designate one of its members as its chairman by a decision taken by the affirmative votes of at least four members, cast in one or, if necessary, more than one secret ballot. The chairman so designated shall hold office as chairman for the rest of his period of office as a member of the panel. The cost of the meeting of the panel shall form part of the costs to be shared by the signatories in accordance with the Special Agreement.

(d) Vacancies on the panel shall be filled by appointment made by the unanimous agreement of the members of the Committee. If the vacancy is not so filled within two months of the date when it arises, the appointment shall be made by decision of the Committee taken in the same manner mentioned in Article V (c) of the Agreement in respect of the matters listed in sub-paragraphs (i) to (xiv) of that paragraph. Vacancies in the office of the chairman of the panel shall be filled by the panel by designation of one of its members in accordance with the procedure set out in paragraph (c) of this Article. A member of the panel appointed to replace a member or designated to replace a chairman whose term of office has not expired shall hold office for the remainder of his predecessor's term.

(e) In appointing the members of the panel the Committee shall seek to ensure that its composition is drawn from the various principal legal systems as they are represented among the signatories.

ARTICLE 4

(a) The party wishing to submit a legal dispute to arbitration shall provide each party and the Committee with a document which contains the following items:

(i) A list of the parties against which the case is brought;

(ii) A statement which fully describes the dispute being submitted for arbitration, the reasons why each party is required to particiate in the arbitration, and the relief being requested;

(iii) A statement which sets forth why the subject matter of the dispute comes within the jurisdiction of a tribunal to be constituted under this Supplementary Agreement, and why the relief being requested can be granted by such tribunal if it finds in the petitioner's favor;

(iv) A statement explaining why the petitioner has been unable to achieve a settlement of the dispute by negotiation or other means short of arbitration; (v) The name of the individual designated by the petitioner to serve as a member of the tribunal.

(b) Within 21 days from the date copies of the document described in paragraph (a) of this Article have been received by all the parties against which the case is brought, the respondents' side shall designate an individual to serve as a member of the tribunal.

(c) In the event of failure by the respondents' side to make such a designation, the chairman of the panel within ten days following a request by the applicant's side which shall not be made before the expiration of the 21 day period aforesaid, shall make a designation from among the experts whose names were submitted to the Committee pursuant to Article 3(a) of this Supplementary Agreement.

(d) Within 15 days after such designation the two members of the tribunal shall agree on a third individual selected from the panel constituted in accordance with Article 3 of this Supplementary Agreement, who shall serve as the president of the tribunal. In the event of failure to reach agreement within such period of time, the chairman of the panel, within ten days after a request from one of the sides, shall designate a member of the panel other than himself to serve as president of the tribunal.

(e) The tribunal shall commence its function as soon as the president is selected.

(f) Should a vacancy occur in the tribunal for reasons which the president or the remaining members of the tribunal decide are beyond the control of the parties, or are compatible with the proper conduct of the arbitration proceedings, the vacancy shall be filled in accordance with the following provisions:

(i) Should the vacancy occur as a result of the withdrawal of a member appointed by a side to the dispute, then that side shall select a replacement within ten days after the vacancy occurs.

(ii) Should the vacancy occur as a result of the withdrawal of the president of the tribunal or of another member of the tribunal appointed by the chairman, a replacement shall be selected from the panel in the manner described in paragraph (d) or (c) respectively of this Article.

(g) Except as prescribed in this Article, vacancies occuring in the tribunal shall not be filled.

(h) If a vacancy is not filled, the remaining members of the tribunal shall have the power, upon the request of one side, to continue the proceedings and give the tribunal's final decision.

ARTICLE 5

(a) The time and place of the sittings of the tribunal shall be determined by the tribunal.

(b) The proceedings shall be held in private and all material presented to the tribunal shall be treated as confidential, except that the parties to the Agreement whose designated signatories are parties to the dispute shall have the right to be present and shall have access to material presented. When the Committee is a party to the proceedings, all parties to the Agreement and all signatories shall have the right to be present and shall have access to material presented, except where the tribunal shall in exceptional circumstances decide otherwise.

(c) The proceedings shall commence with the presentation of the petitioner's case containing its arguments, related facts supported by evidence and the principles of law relied upon. The petitioner's case shall be followed by the respondent's counter-case. The petitioner may submit a reply to the respondent's

counter-case. Additional pleadings shall be submitted only if the tribunal determines they are necessary.

(d) The proceedings shall be conducted in writing, and each side shall have the right to submit written evidence in support of its allegations of fact and law. However, oral arguments and testimony may be given if the tribunal considers it appropriate.

(e) The tribunal may hear and determine counter-claims arising directly out of the subject matter of the dispute provided the counter-claims are within its jurisdiction as defined in Article 2 of this Supplementary Agreement.

(f) At any time during the proceedings, the tribunal may terminate the proceedings if it decides the dispute is beyond its jurisdiction as defined in Article 2 of this Supplementary Agreement.

(g) The tribunal's deliberations shall be secret and its rulings and decisions must be supported by at least two members.

(h) The tribunal shall support its decision by a written opinion. A member dissenting from the decision may submit a separate written opinion.

(i) The tribunal may adopt additional rules of procedure consistent with those established by this Supplementary Agreement which are necessary for the proceedings.

ARTICLE 6

(a) If one side fails to present its case, the other side may call upon the tribunal to accept its case and to give a decision in its favor. Before doing so, the tribunal shall satisfy itself that it has jurisdiction and that the case is wellfounded in fact and in law.

(b) Before giving the decision, the tribunal shall grant a period of grace to the side which has failed to present its case, unless it is satisfied that the party in default does not intend to present its case.

ARTICLE T

Any signatory, group of signatories, or the Committee, which considers that it has a substantial interest in the decision of the case may petition the tribunal for permission to become a party to the case. If the tribunal determines that the petitioner has a substantial interest in the decision of the case, it shall grant the petition.

ARTICLE 8

Either at the request of a party, or upon its own initiative, the tribunal may appoint such experts as it deems necessary to assist it.

ARTICLE 9

Each of the signatories and the Committee shall provide all information determined by the tribunal, either at the request of a party to the case or upon its own initiative, to be required for the proper handling and determination of the dispute.

ARTICLE 10

During the course of its consideration of the case, the tribunal shall have power, pending the final decision, to make recommendations to the parties with a view to the protection of their respective rights.

ARTICLE 11

(a) The decision of the tribunal shall be based on interpretation of the Agreement, the Special Agreement and this Supplementary Agreement in accordance with generally accepted principles of law.

(b) Should the parties reach an agreement during the proceedings, the agreement shall be recorded in the form of a decision of the tribunal given by the consent of the parties.

(c) The decision of the tribunal shall be binding on all the parties to the dispute and shall be carried out by them in good faith. However, if, in a case in which the Committee is a party, the tribunal decides that a decision of the Committee is null and void as not being authorized by or in compliance with the Agreement and the Special Agreement, the decision of the tribunal shall be binding on all signatories.

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ARTICLE 12

Unless the tribunal determines otherwise because of the particular circumstances of the case, the expenses of the tribunal, including the remuneration of the members of the tribunal, shall be borne in equal shares by each side. Where a side consists of more than one party, the share of that side shall be apportioned by the tribunal among the parties on that side.

ARTICLE 13

This Supplementary Agreement shall enter into force when it has been signed by all signatories to the Special Agreement in respect of which the Special Agreement is in favor. Thereafter, pursuant to Article 14 of the Special Agreement, it shall enter into force for other signatories on the day on which the Special Agreement enters into force for them. It shall be in force as long as the Special Agreement continues in force.

AUGUST 18, 1966.

MR. JAMES J. MCCORMACK,

Chairman and Chief Executive Officer,
Communications Satellite Corp.,

1900 L Street, NW.,

Washington, D.C.

DEAR MR. MCCORMACK: Mr. John Johnson's letter of June 28, 1966, informed us of a question raised by foreign members of the Interim Communications Satellite Committee (ICSC) about the United States Government's position on the relationship between the Government and the Communications Satellite Corporation as manager for the International Telecommunications Satellite Consortium (INTELSAT). Mr. Johnson asked to be supplied the views of the United States Government for presentation to the Interim Committee at its July 27 meeting. Assistant Secretary Solomon sent you a statement of these views in his letter of July 26. That statement said in part that "since the last meeting my Government has established internal procedures which it is confident will avoid, in the future, any delay or adverse effect with reference to this committee's determinations." We were pleased to receive Mr. Johnson's letter of August 2 reporting that the statement was well received by all members of the Committee.

The procedures referred to in the statement, which have been discussed with you on an informal basis, have now been agreed to among the Department of State, the Director of Telecommunications Management and the Federal Communications Commission. They will impose on the Corporation certain obligations with respect to its role as United States representative to the ICSC. It is our belief that their implementation will successfully carry out the United States Government's constitutional and statutory responsibilities, including those under the Communications Satellite Act of 1962, without needlessly inhibiting Comsat's freedom of action at meetings of the ICSC and without interference with Comsat's corporate responsibilities. We are also hopeful that in this manner we can avoid a implication, such as plagued you in connection with the TRW contract case, that ICSC decisions are subject to subsequent unilateral United States Government review. The procedures may be summarized as follows:

(1) Comsat shall circulate copies of proposed agenda for meetings of the ICSC to the Department of State, the Director of Telecommunications Management, and the Federal Communications Commission at least four weeks before the matters on the agenda are to be considered by the ICSC. Amendments to agenda shall be circulated as soon as possible.

(2) The Department will inform Comsat of those items on which prior United States Government instructions to Comsat are required, and Comsat shall not take action on such agenda items until it receives United States Government instructions. As to such items, Comsat shall furnish pertinent documentation as soon as possible.

(3) On important matters Comsat should advise the Department of State. the Director of telecommunications Management, and the Federal Communications Commission of the position it desires to take well before the time such matters are placed on the agenda and as soon as meaningful consideration can