Subject: Re: East Timor/Australia
Date: May 10, 2004 @ 13:42
Author: acroorca2002 ("acroorca2002" <orc@...>)
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> Forwarded article by eminent lawyer.of
> Brendan
>
>
> >Professor Gillian Triggs
> >Director, Institute for Comparative and International Law
> >University of Melbourne.
> >
> >On the 19 April Australia and East Timor will begin four days
> >negotiations upon a permanent boundary between them inthe so called
> >"Timor Gap". This new round of negotiations follows theconclusion by the
> >Howard and Alkatiri governments of two agreements in late2002 and early
> >2003 for resource exploitation of the Timor Sea. Why, so soonafter these
> >apparently successful negotiations, are Australia and EastTimor back at
> >the negotiating table?arrangements.
> >
> >An obvious answer lies in the imbalance in resource sharing
> >Under the first agreement, the Timor Sea Treaty, the oil andgas resources
> >of the Joint Petroleum Development Area (JPDA) in thedisputed area are to
> >be exploited jointly, with 90% of the revenue going to EastTimor and 10%
> >to Australia. The second agreement, the InternationalUnitisation
> >Agreement (IUA), regulates exploitation of the Greater Sunriseoil and gas
> >field, 20% of which straddles the eastern limit of the JPDA. Asoutside the JPDA in
> >approximately 80% of the Greater Sunrise deposits lie
> >the seabed under Australian sovereignty, 80% of the revenueis to go to
> >Australia. Consistently with the Timor Sea Treaty, 90% of therevenues
> >from the 20% of Greater Sunrise that lies within the JPDAbelong to East
> >Timor.agreements there
> >
> >In addition to the revenue sharing provisions of the two
> >are other critical differences between them. While the TimorSea Treaty is
> >legally binding, coming into force on 2 April 2004, the IUA isnot yet in
> >force for Australia and East Timor. More to the point, therevenue dollars
> >to be earned from the JPDA are minor in comparison to thebillions thought
> >likely to be gained from the huge reserves of the GreaterSunrise field.
> >The arithmetic exposes the problem: East Timor's 90% of theexpected
> >$3.2-3.8 billions in revenue from the JPDA is significantly lessthan
> >Australia's 80% of the expected $8.5 billions in revenue fromGreater Sunrise.
> >Greater
> >It is the disparity in prospective revenues from the JPDA and
> >Sunrise that appears to have prompted East Timor both todeny Australian
> >sovereignty over the continental shelf of the Timor Gap and toclaim 100%
> >of the resources of Greater Sunrise. An important provision ofboth the
> >Timor Sea Treaty and the IUA is that the agreements areinterim only,
> >pending the final delimitation of a boundary between theParties. East
> >Timor is therefore free to insist that negotiations shouldcommence to
> >settle a permanent boundary. In lead up to thesenegotiations, East Timor
> >has made it clear that it rejects the boundaries of the JPDA,claiming a
> >far larger area of the seabed encompassing Greater Sunriseto the East and
> >Laminaria to the West and challenging the validity ofboundaries
> >agreed in 1971and 2 between Australia and Indonesia.that East
> >
> >Complicating these legal differences are the undeniable facts
> >Timor is an impoverished nation emerging from civil war andillegal
> >annexation. The UN peacekeeping force is due to leave EastTimor in June
> >2005 and civil governance and legal institutions are yet to befully
> >developed. Revenues from both the Bayu-Undan and GreaterSunrise fields
> >would be of immense value to East Timor as it faces theproblems of
> >independence for a population of fewer than a million almosttotally
> >dependent upon foreign aid.a fog of myths
> >
> >These ethical and legal issues have now combined to create
> >within which negotiations upon a permanent seabedboundary in the Timor
> >Sea are to begin.apparently
> >
> >One of the most persuasive, but misleading, myths lies in the
> >rational argument that the seabed between Australia andEast Timor should
> >be based on a median or equidistant line. State practice- apowerful
> >indicator of customary international law- supports EastTimor's view that
> >overwhelmingly, opposite States sharing a continental shelf,delimit their
> >seabeds using a median line, albeit adjusted to take accountof other
> >factors such as islands. By contrast, international law doesnot require a
> >median line where states do not have a continental shelf incommon. As a
> >matter of geology, Australia is on a continental shelf; EastTimor is not.
> >Australia has consistently maintained its sovereignty over thecontinental
> >shelf up to the Timor Trough a major geological feature 3,000meters deep
> >and about 40 nautical miles from East Timor. Troughs arecommon in the
> >Pacific Basin and the Okinawa Trough between China andJapan similarly
> >impedes negotiations for a final boundary. So too does theAruba Gap
> >between Venezuela and Columbia and the DominicanRepublic. State practice
> >in such disputed areas has been both to ignore thegeological feature and
> >to agree jointly to manage exploitation and share therevenues.
> >agree to a
> >Of mythical proportions is the idea that, were Australia to
> >median line delimitation, East Timor would gain the greaterpart of the
> >oil and gas resources. In fact, the richest of the knownresources lie to
> >the East and West of the present JPDA and lie withinAustralian
> >sovereignty under the 1971 and 1972 Seabed Agreementswith Indonesia.
> >boundary
> >Another myth is that the 1972 Seabed Agreement settling the
> >between Indonesia and Australia is invalid at internationallaw. Not only
> >was this boundary negotiated in good faith but also it wasentirely
> >consistent with a decision of the International Court of Justicejust 3
> >years earlier in 1969. In the North Sea Continental ShelfCases the Court
> >found that states have sovereign rights over their continentalshelf as
> >the "natural prolongation of the land territory" and that"equidistance'
> >was not a principle of international law. Rather, a continentalshelf was
> >to be delineated on the basis of "equitable" principles. Theseideas are
> >echoed by the 1982 UN Convention on the Law of the Seawhich provides that
> >delimitation of the continental shelf is to be based oninternational law
> >to achieve an equitable solution.exploitation rights
> >
> >It is also a myth that East Timor can claim exclusive
> >to all of Greater Sunrise without affecting Indonesia'sinterests.
> >Indonesian seabed rights are necessarily prejudicedbecause of the
> >proximity of the Greater Sunrise reserve to the 1972 SeabedBoundary. In
> >the improbable event that Australia were to accede to EastTimor's demands
> >by moving the eastern and western limits of the JPDA toinclude Greater
> >Sunrise and Laminaria, full sovereignty over these resourceswould also
> >undermine the 1972 boundaries. To do so requires theinclusion and consent
> >of Indonesia; consent that is unlikely to be forthcoming.upon which the
> >
> >Yet another misleading argument is that the coordinates
> >1972 Seabed Boundary was agreed, and upon which theJPDA was subsequently
> >negotiated, are invalid. To the contrary, the equidistant linesare
> >consistent with international law, having been drawn to takeaccount of
> >Indonesia's archipelagic status. A challenge to these lines iswithout
> >legal foundation.prior to its
> >
> >
> >It is argued that East Timor is not bound by treaties made
> >full statehood, whether by Portugal as the AdministeringAuthority, by
> >Indonesia or by the United Nations peacekeeping authority.Like many myths
> >this is a half truth. International practice on decolonisationhas been to
> >adopt a "clean slate' approach under which a new state maydecide in its
> >national interests whether to be bound by prior treaties. Theconcept of a
> >"clean slate" does not apply to boundary treaties establishingfrontiers
> >or maritime limits. The 1972 Seabed Boundary and thecoordinates
> >established by it are of over 30 years standing, were agreedin good faith
> >and adopt recognised principles of international law.should be resolved
> >
> >It is also a myth that disputes over seabed boundaries
> >by an international judicial tribunal. Australia amended theterms of its
> >acceptance of the compulsory jurisdiction of the InternationalCourt of
> >Justice and the International Tribunal on the Law of the Sea toexclude
> >disputes concerning delimitation of maritime zones. Whilethe timing of
> >the amendment 8 weeks before the independence of EastTimor is
> >questionable on ethical grounds, international law permits astate to
> >decide for itself whether it will submit its disputes tocompulsory
> >resolution by a court. Australian policy is that boundaries withimposed by a court.
> >neighbouring states should be negotiated rather than
> >Indeed, Australia has an enviable record of negotiatingcreative boundary
> >agreements with Papua New Guinea, New Caledonia andIndonesia. It is also
> >legally relevant that the 1982 UN Convention on the Law ofthe Sea
> >specifically encourages states to seek negotiated resolutionsto boundary
> >issues. The Timor Sea Treaty and the IUA are entirely withinthe spirit
> >and letter of recognised international law in enabling the jointclaims.
> >development of resources that are subject to conflicting
> >Sovereign rights
> >A final myth concerns the nature of a seabed boundary.
> >over the continental shelf do not convey territorial sovereignty;only the
> >right of exclusive development of seabed resources. It ispossible for
> >neighbouring states to agree upon a different regime togovern the
> >superjacent waters of the Exclusive Economic Zone orterritorial sea. This
> >has been achieved in a 1997 Treaty between Indonesia andAustralia and
> >could well be employed in discussions with East Timor.(Cth) 2004,
> >
> >With the Senate's approval under the IUA Enablement Act
> >Australia is now able to ratify the IUA. Prime Minister Alkatirihas by
> >contrast repeatedly stated that East Timor's Parliament willnot do so. It
> >was strategically unwise of Australia to have ratified the TimorSea
> >Treaty without first ensuring that the IUA was also in force.The two
> >agreements should have been more effectively linked. Asmatters stand,
> >East Timor has the right to a 90% share in revenues from theJPDA but can,
> >at the same time, block investment in the development of theGreater
> >Sunrise deposits, to the significant disadvantage of bothstates. In
> >short, East Timor and Australia will benefit from ratification ofthe IUA
> >financially and through the opportunities to work fruitfullytogether on
> >joint resource management.tribunals
> >
> >While Australia has abundant natural resources, international
> >have found that it is not the job of international law to"refashion
> >nature". Nor does equity necessarily require equality. Fromthe point of
> >view of East Timor these are hard laws. It is will be forAustralia and
> >East Timor to resolve their differences on a permanentseabed boundary
> >both in good faith and upon a clear understanding of theinternational
> >rule of law.