The Statement of the Chinese Delegation on Financial Issues of the Exploitation Regulations at the Council Meeting of the First Part of the 25th Session of the International Seabed Authority

谢谢主席女士，

　　首先，请允许我祝贺您当选为本届理事会主席，中国代表团将全力支持您的工作。相信在您的领导下，本次会议一定会取得丰硕成果，获得圆满成功。

　　借此机会，我要感谢上任理事会主席奥立夫· 迈克尔巴特斯阁下。他不仅主持了第24届理事会会议，还主持了上周四、五举行的财务问题非正式工作组会。中国代表团感谢他刚刚就工作组会情况所作的报告，并愿就开发规章所涉财务问题发表如下看法：

Thank you, Madam President.

First of all, please allow me to congratulate you on your election as the President of the Council. You are assured of the full support of the Chinese delegation. I believe that under your leadership, this meeting will be surely fruitful and successful.

I would like to take this opportunity to thank the past President, H.E Olav Myklebust. He presided over not only the Council meetings of the 24th Session, but also the open-ended informal working group in respect of financial model held last Thursday and Friday. The Chinese delegation is also grateful for the report he has just made on the working group and wishes to express the following views on the financial issues of the Exploitation Regulations:

　　一、惠益分享是“区域”内资源开发整体制度设计不可或缺的重要内容。我们高兴地看到，报告中特别提及，开发规章缴费机制包括两方面：一是承包者需向海管局缴纳多少费用，二是缴纳的费用如何由海管局进行分配。这正是中国代表团一贯秉持的观点，即惠益分享与缴费机制密不可分，两者本质上都是对“区域”内活动产生收益的处置和再分配。惠益分享作为人类共同继承财产原则的重要内容，理应在开发规章中加以规定。中方切实希望今后的财务问题研讨会可对惠益分享问题进行专题研讨。

1. Benefit sharing is an integral part of the overall system governing the exploitation of the resources in the Area. We are pleased to see that the report specifically references that financial aspects of a payment mechanism can be grouped into two categories: (1) what a contractor will pay to the Authority; (2) how such money received will be distributed by the Authority. This is exactly the long held position of the Chinese delegation, namely, benefit sharing and payment mechanism are inseparable, and both of them are essentially the disposition and redistribution of the benefits derived from activities in the Area. As part of the important contents of the principle of the common heritage of mankind, it is appropriate for the issue of benefit sharing to be addressed by the Exploitation Regulations. China sincerely hopes that the future meetings with respect to financial matters would conduct special studies and discussions on the issue of benefit sharing.

　　二、缴费机制不宜将特许使用权使用费与盈利分享相结合的制度排除在外。《联合国海洋法公约》相关执行协定明确规定，缴费机制“应该考虑采用特许权使用费制度或结合特许权使用费与盈利分享的制度”。目前各方已就特许权使用费制度开展了研究和讨论，但并未考虑特许权使用费与盈利分享相结合的制度。有观点认为，混合缴费模式存在沉重繁重的行政费用以及不易实施等弊端。中方认为，在未对混合缴费模式进行深入研究的情况下，任何结论都缺乏实证支持。中方重申，希按照执行协定的要求，对特许权使用费与盈利分享相结合的缴费方式进行研究，并在此基础上讨论采用何种缴费机制。

2. The payment mechanism should not exclude the combination of a royalty and profit-sharing system. The Implementing Agreement to UNCLOS provides that “[c]onsideration should be given to the adoption of a royalty system or a combination of a royalty and profit-sharing system.” At present, the parties have conducted study and discussion on the royalty system, but have not considered the system of combining royalty with profit-sharing. There is a view that the hybrid payment model would entail major administrative costs as well as practical challenges in implementation. However, China believes that without deep study on the hybrid payment model itself any conclusion in this regard would lack empirical support. We reiterated that as required by the Implementing Agreement the payment mechanism of a combination of a royalty and profit-sharing system should be studied, and only after this further discussion as to what payment mechanism to be adopted could be reasonably conducted.