I. Introduction. 8. I sincerely hope Member States would reflect on the suggestions made in this Report and give their views on implementing them.

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1 I. Introduction 1. Following Rule 20(7) of AALCO s Statutory Rules, I have the honour to place before the Member States, my Report on the implementation of AALCO s Work Programme and its activities since the 41 st Session held in Abuja (Nigeria) in July At the outset, I would like to express my sincere gratitude to Hon ble Senator Kanu G. Agabi, Attorney General and Minister of Justice, Federal Republic of Nigeria, and current President of AALCO for his keen interest in promoting the activities of AALCO. His valuable support and advice has been a source of strength to me. 3. I would like to express, on behalf of AALCO Member States, and my own behalf, our gratitude to the Government of the Republic of Korea for the invitation to hold AALCO s 42 nd Session in Seoul in June Being aware of their enthusiasm and the excellent preparation that is underway, I am confident of the great success of AALCO s 42 nd Session. I believe, it will be another mile stone in the history of AALCO. 4. I take this opportunity to express my gratitude to all AALCO Member States, their High Commissioners, Ambassadors and Liaison Officers in New Delhi for the kind support extended to me in discharging my responsibilities as the Secretary-General. 5. I would be failing in my duty if I do not mention especially the kind and continued support extended to AALCO by the Government of India. India as a host to AALCO s Headquarters, has made significant contribution towards its growth. 6. Among the highlights of this year s report are the steps towards rationalization of the AALCO s Work Programme during its forthcoming annual session. I believe, the experimentation at Seoul will provide an opportunity for in-depth consideration, exchange of views and experiences on selected items on AALCO s agenda and thus make AALCO s annual session more useful and productive. 7. My Report is divided into five parts: Introduction; Activities Undertaken since the 41 st Session; Strengthening the Co-operation with the United Nations and its Agencies; Future Plan and Perspectives of AALCO. 8. I sincerely hope Member States would reflect on the suggestions made in this Report and give their views on implementing them. 1

2 II. Activities undertaken since the 41 st Session. 9. It has been my endeavour to implement AALCO s Work Programme as approved at the 41 st Session. A brief report on the activities undertaken until the writing of this Report is set out below. I shall update this information when I formally place my Report at the Meeting of the Leaders of the Delegations of AALCO Member States at the 42 nd session. A. Preparation of Notes and Comments on selected items on the agenda of the 57 th Session of the General Assembly of the United Nations 10. In pursuance of the AALCO s programme for rendering assistance to Member Governments for their active participation in the work of the Sixth Committee and General Assembly of the United Nations, the Secretariat prepared Notes and Comments on selected items on the agenda of the 57 th Session of the General Assembly. The Document (No.AALCO/UNGA/LVII/2002) contained Notes and Comments on the items which included : Report on the Work of the International Law Commission at its 54 th Session; Report on the Work of the United Nations Commission on International Trade Law at its 35 th Session, Oceans and the Law of the Sea; Establishment of the International Criminal Court, Implementation of the Provisions of the Charter of the United Nations Related to Assistance to Third States Affected by Applications of Sanctions; Measures to Eliminate International Terrorism; An Effective International Legal Instrument against Corruption and the World Summit on Environment and Sustainable Development. This document was circulated to the Diplomatic Missions of AALCO Member States in New Delhi as well as to Permanent Missions in New York. It was also placed for consideration at AALCO s Legal Advisers Meeting in New York. B. AALCO s Legal Advisers Meeting, New York 11. The General Assembly at its 57 th Session adopted a new pattern for the consideration of the Item on co-operation between the United Nations and other regional and international organizations. It scheduled them between November This new procedure taken by the General Committee of the General Assembly has raised a serious problem related to the convening of the Legal Advisers Meeting. In previous years the Item on AALCO s co-operation with the United Nations was discussed between 29/10 to 3/11. Therefore, I had arranged to convene AALCO s Legal Adviser s Meeting on 4 th November, keeping in view that it would facilitate participation of the Members of the International Law Commission in our Meeting. However, the gap of 16 days between AALCO Legal Advisers Meeting and the day on which the item on co-operation between the United Nations and AALCO was to be considered was too long. I had to be in New Delhi on 15 th November for the AALCO s Constitution day since I hold a large reception on that occasion. 2

3 12. Against this background, I convened the Meeting of AALCO s Legal Advisers in New York on 20 th November The Meeting was attended by the Representatives of twenty-four Member States 1, seven Observer States 2 and the WIPO. H.E. Mr. Hans Corell, Under Secretary General and Legal Counsel of the United Nations, Vice- Chairman of the Sixth Committee, Director, Division for Ocean Affairs and Law of the Sea, were Special invitees. The Permanent Observer of AALCO in New York Amb. Bhagwat Singh also attended the Meeting. 13. Hon ble Senator Kanu G. Agabi, S.A.N., Attorney General and Minister of Justice of the Federal Republic of Nigeria, current President of AALCO chaired the Meeting. In his statement, the Chairman said that owing to the commitment and cooperation of the Member States, the 41 st session of AALCO, held in Abuja was a fruitful and successful one. He appreciated my efforts to implement the mandate of the Abuja Session, in particular towards the promotion of co-operation between AALCO and the International Law Commission, Office the United Nations High Commissioner for Human Rights, World Intellectual Property Organization and the International Organization for Migration. He also supported my efforts to seek the membership of the French Speaking African States. 14. Speaking about the role of AALCO, he said that it was the only body exclusively devoted to the discussion of international law matters in the Asian-African region and unlike other forum, it was not encumbered by political questions nor was it vitiated by the formalities of undertaking legally binding commitments. He urged the Member States to identify ways and means of enhancing the effectiveness of AALCO s work. He offered a few suggestions in this regard. One useful task could be to identify topics on international law on a priority basis that could be considered by the Organization. Once this was done specific legal issues could be formulated mandating the Secretariat to undertake research work on such areas. Further, these topics could be structured in a way that they serve as a viable feed back to AALCO s on-going work in the international fora like the United Nations, African Union etc. 15. In my detailed statement, at the outset, I thanked the Chairman for his useful suggestions to strengthen AALCO s role and activities. I extended my warm welcome to H.E. Mr. Hans Corell, Legal Counsel of the United Nations, Vice-Chairman of the Sixth Committee, Director, Division for Ocean Affairs and Law of the Sea, United Nations, and the distinguished Legal Advisers. I said that AALCO s Legal Advisers Meeting in New York during the annual session of the General Assembly has over a period of time assumed great importance and special significance in furthering the activities of AALCO. It provided a forum and an opportunity to hold consultation and exchange of views and experiences on AALCO s Work-Programme and its activities. 1. Botswana, China, Cyprus, Egypt, Ghana, Indonesia, Iraq, Japan, Jordan, Kenya, Nepal, Nigeria, Pakistan, Philippines, Qatar, Republic of Korea, Sierra Leone, Sri Lanka, Sudan, Thailand, Turkey, United Arab Emirates, United Republic of Tanzania and Yemen. 2. Fiji, Iceland, Italy, Mexico, Portugal, Switzerland and United States. 3

4 16. I informed the Legal Advisers that in the last two years AALCO has concluded cooperation agreements, with the WIPO, Office of the United Nations High Commissioner for Human Rights, UNHCR, International Organization for Migration (IOM) and the United Nations University, and there were plans to hold meetings jointly in co-operation with these Organizations to effectively implement the mandate given in Abuja Session. I asked for the guidance of Member States to engage in fruitful efforts with these Organizations. I elaborated upon the current work programme and activities of AALCO. I said that with a view to attract membership from French speaking countries, I was making efforts to introduce French as a working language of AALCO, apart from English and Arabic. I introduced the substantive items for consideration at the Legal Advisers Meeting which included Law of the Sea, International Legal Instrument Against Corruption and Measures to Eliminate International Terrorism and invited views of delegations for substantive discussion. 17. The Chairman then invited the distinguished invitees to address the Meeting. H.E. Mr. Hans Corell, Under Secretary-General and Legal Counsel of United Nations expressed his regret for not being able to participate at the Abuja Session. He said that AALCO has an important role to play in regional cooperation and pointed out that the issues identified by AALCO were much high on the agenda of United Nations as well. He referred to the United Nations on-going work on Terrorism, Corruption and Law of the Sea and hoped that AALCO would actively participate in all the activities of the United Nations. 18. H.E. Judge Gilbert Guillaume, the then President of the International Court of Justice in his message, which was read by me, appreciated AALCO s initiatives in promoting the role of the International Court of Justice and hoped that the close links that have been forged over the years between AALCO and ICJ will be further strengthened. 19. The vice Chairman of the Sixth Committee presented an overview of the work of the Sixth Committee during the 57 th Session of the General Assembly. The Director, Division for Ocean Affairs and Law of the Sea informed of the programme for the commemoration of 20 th Anniversary of the Law of the Sea Convention. She elaborated on the application of the Law of the Sea Convention in the area of environment through the development of mandatory and non-mandatory norms as well as other legal instruments at the international and regional level, which deal with the marine pollution. 20. The Meeting, thereafter considered the matters concerning rationalization of the Work Programme of AALCO. I informed that the next annual session would be held in Seoul, South Korea. Recalling that after assuming my duties, I circulated a document entitled Rationalization of Work Programme of AALCO at the Legal Advisers Meeting in This was discussed at length during the last Legal Advisers Meeting and again at AALCO s 40 th Annual Session held in New Delhi (2001). While appreciating comments from Member Governments supporting my programme, I drew attention to the difficulties in implementing this programme. The main one was that there were about 15 substantive items on the agenda and time available during the annual 4

5 session is only four days. The organizational, budget, financial and administrative matters take half a day or sometimes a day. The rest of the three days are very little to have a real in-depth study of the substantive items. I referred to my discussions with the Delegation of the Republic of Korea which visited New Delhi to discuss the matters concerning preparation for the Seoul Session. The Government of Republic of Korea, as a Host to the 42 nd Session is very keen that the 42 nd Session of the AALCO should have a historical success. It should be well-managed and provide opportunities for substantive discussions, exchange of views and experiences of the Member States on selected key issues of current relevance. Keeping in view the time constraints during the annual session, I put forward two proposals with regard to the consideration of agenda items at the forth-coming session in Seoul. The first one was to split the agenda items for consideration into two separate meetings. That however would involve simultaneous interpretation and need lot of financial support to meet interpretation cost. The other proposal was to divide the agenda items into two categories i.e., items to be deliberated upon which were of current importance and others of monitoring and reporting character. I emphasized that among the items on the AALCO s agenda, items related to humanitarian issues, such as Status and Treatment of Refugees, Legal protection of Migrant Workers, Trafficking in Women and Children, Deportation of Palestinians, Human Rights and International Terrorism deserve more focused attention, as they were of great concern to AALCO Member States. International law on some of those issues was still evolving and AALCO could play an important role at this stage. I proposed to stick to the second proposal and asked for the comments from the Member States. 21. During the course of the meeting, the representatives of Japan, Indonesia, China, Egypt, Republic of Korea, the Philippines, Turkey, Kenya, Nigeria, and Sierra Leone made useful comments. There was wide support to my proposal. It was suggested that a Note should be sent to the Member Governments so that they were well informed and prepared in regard to the agenda items to be considered for detailed discussion during the Seoul Session. 3 C. Consideration of the proposal on the Rationalization of the Agenda Items for AALCO s 42 nd Session at the Liaison Officers 280 th Meeting in New Delhi 22. At the 280 th Meeting of the Liaison Officers held on the 5 th March, 2003, a Note prepared jointly by the Secretariat and the Delegation of Republic of Korea, which again came from Seoul was placed for consideration. 23. The Note contained suggestions to enhance the effectiveness of the Session. It was felt that the 42 nd Session of AALCO should provide Member Governments with opportunities for substantive discussions on selected key issues of current relevance, and the ways and means of enhancing the effectiveness of the Session in close cooperation with the Secretariat. It noted that there are currently 15 items on the AALCO s agenda for the 42 nd Session and it would hardly be possible to give detailed consideration to 3. Verbatim record of the Legal Adviser s Meeting in New York is set out in Document No.AALCO/XLII/Seoul/2003/S.15 5

6 every agenda item during the 5-day programe. It referred to my suggestion made at AALCO s Legal Advisors Meeting held in New York on 20 November 2002, that it would be ideal to select nine items for detailed and focused deliberations which include: (i) Matters relating to work of the International Law Commission; (ii) Deportation of Palestinians and other Israeli Practices among them the Massive Immigration and Settlement of Jews in all Occupied Territories in Violation of International Law particularly the Fourth Geneva Convention of 1949; (iii) International Terrorism;* (iv) Human Rights in Islam; (v) The Establishment of Co-operation against Trafficking in Women and Children; (vi) The International Criminal Court: Recent Developments; (vii) Environment and Sustainable Development; (viii) An Effective International Legal Instrument Against Corruption; and (ix) WTO as a Framework Agreement and Code of Conduct for the World Trade. 24. As regards the remaining items, it was suggested that pursuant to decisions taken at AALCO s 41 st Session, the Secretariat will prepare documents on all the items and also highlight the recent developments in the Report of the Secretary-General in respect of those items which will not be considered for deliberations at the 42 nd session. The Minutes of the Liaison Officers 280 th Meeting has been sent to the Member Governments. 25. The Secretariat has prepared 15 documents on substantive items which include: Report on matters relating to the work of the International Law Commission at its Fifty-fourth Session, (AALCO/XLII/Seoul/2003/S.1); The Law of the Sea, (AALCO/XLII/Seoul/2003/S.2); Status and Treatment of Refugees, (AALCO/XLII/Seoul/2003/S.3); Deportation of Palestinians and other Israeli Practices Among them the Massive Immigration and Settlement of Jews in All Occupied Territories in Violation of International Law particularly the Fourth Geneva Convention of 1949, (AALCO/XLII/Seoul/2003/S.4); Legal Protection of Migrant Workers, (AALCO/XLII/Seoul/2003/S.5); Extra-territorial Application of National Legtislation: Sanctions Imposed Against Third Parties, (AALCO/XLII/SEOUL/2003/S.6); Jurisdictional Immunities of States and Their Property, (AALCO/XLII/Seoul/2003/S.7); International Terrorism, (AALCO/XLII/SEOUL/2003/S.8); Establishing Co-operation against Trafficking in Women and Children, (AALCO/XLII/Seoul/2003/S.9);The International Criminal Court: Recent Developments, (AALCO/XLII/Seoul/2003/S.10); Environment and Sustainable Development, (AALCO/XLII/Seoul/2003/S.11); An Effective International Legal Instrument Against Corruption, (AALCO/XLII/SEOUL/2003/S.12); Progress Report concerning the Legislative * Replaced later on by the item: Jurisdictional Immunities of States and Their Property as explained in para 26 of my report. 6

7 Activities of the United Nations and Other International Organizations in the field of International Trade Law, (AALCO/XLII/Seoul/2003/S.13); WTO as a Framework agreement and Code of Conduct for World Trade, (AALCO/XLII/Seoul/2003/S.14); Verbatim record of the Meeting of the Legal Advisers of the AALC Member States at New York, 20 th November, 2002, (AALCO/XLII/Seoul/2003/S.15); Three sets of each of these documents have been sent to the Member Governments. 26. Since there was hardly any progress on the negotiations concerning the International Convention to combat terrorism in the Working Group established by Sixth Committee during the 57 th Session of the General Assembly of the United Nations, the item on International Terrorism listed for substantive deliberations at AALCO s 42 nd session has been replaced by the item Jurisdictional Immunities of States and Their Property. Furthermore, the Ad Hoc Committee on Jurisdictional Immunity of States and Their Property established by the General Assembly at its 57 th Session, completed its work on 28 February Given the advanced stage of work in this topic, we found it useful to discuss the recommendations of the Report of that Ad Hoc Committee at AALCO s 42 nd session. 27. Accordingly, recent developments in respect of those items which would not be taken up for deliberations at AALCO s 42 nd Session are as follows: (i) Law of the Sea 28. The item on Law of the Sea was included in agenda of AALCO in 1970 upon a reference made by the Government of Indonesia. With the coming into force of the UNCLOS, AALCO oriented its programme focusing on issues related to the implementation of the Convention and monitoring the work of the Institutions established within its framework. The documents prepared by the Secretariat for AALCO s annual sessions contained overviews of the Meetings of States Parties, works of the International Seabed Authority, International Tribunal of the Law of the Sea, and the Commission on the Limits of the Continental Shelf. In addition, the Secretariat also followed the discussions held at the meetings of the United Nations. Informal Consultative process established by the General Assembly by its resolution 54/33. The Document on Law of the Sea prepared for the 42 nd session is on the similar pattern. 29. As regards recent developments, Ocean and Law of the Sea issues were considered at the World Summit on Sustainable Development held in Johannesburg from 26 August to 4 September The Plan of Implementation adopted by the Summit stressed the need for effective co-ordination and co-operation between relevant bodies and action at all levels focusing among others, on the implementation of UNCLOS and the programme envisaged in Chapter 17 of Agenda 21 for achieving sustainable development of oceans and coastal areas. 7

8 30. The General Assembly at its 57 th session commemorated the Twentieth Anniversary of the adoption of the United Nations Convention on the Law of the Sea. It was recognized that the Convention was a constitution for the oceans and has made significant contribution by providing a comprehensive framework to regulate all aspects of the uses and resources of the World s seas and oceans. The General Assembly adopted a comprehensive resolution(a/57/141), which inter alia emphasized the universal and united character of the Convention and its fundamental importance for the maintenance and strengthening of international peace and security as well as for the sustainable development of the oceans and seas. It called upon all States that have not done so, in order to achieve the goal of universal participation, to become parties to the Convention and the Agreement Relating to the Implementation of Part XI of the Convention. Besides taking note with appreciation the work of the Institutions established by the Commission and the Organizations of the United Nations system engaged in ocean related matters, it welcomed the Plan of Action adopted at the World Summit on Environment and Development. It decided to establish a regular process under the United Nations for the global reporting and assessment of the state of the marine environment, including socio-economic aspects, both current and foreseeable, building on existing regional assessments. While reaffirming its decision to undertake an annual review and evaluation of the implementation of the Convention and other developments relating to the ocean affairs and the Law of the Sea, it decided to continue with the consultative process for the next three years, in accordance with its resolution 54/33, with a further review of its effectiveness and utility at the sixtieth session. (ii) Legal Protection of Migrant Workers 31. The item entitled Legal Protection of Migrant Workers was included in the agenda of AALCO s 35 th Session (Manila, 1996) upon a reference made by the Government of the Philippines. Since then the item has been regularly placed on the agenda of the AALCO at its successive sessions. 32. In the year 2000 an impetus was given to the work on this topic when the International Organization for Migration (IOM) and AALCO entered into a Co-operation Agreement on the 6 th of October One of the tangible outcomes of that Agreement was the organization of a one day Special Meeting in conjunction with the 40 th session of AALCO to discuss some legal problems and issues related to migration. Among the issues considered was that while domestic measures related to migrant workers as adopted by States of Origin and States of Destination/Employment may be effective, cooperation through bilateral and multilateral agreements can serve to establish an important framework for collaboration among these States. Resolution SP/1 Special Meeting on Some Legal Aspects of Migration adopted on 24 June 2001 at the 40 th Session of AALCO (New Delhi HQ) inter alia directed the Secretariat to explore the feasibility of drafting a Model Agreement for Co-operation among Member States on issues related to Migrant Workers and requested the Secretary-General to consider the possibility of convening an open-ended working group for in-depth consideration of these issues. 8

9 33. Pursuant to that mandate a draft model Agreement was prepared by the AALCO Secretariat in consultation with the IOM. The text of the draft Model Agreement was circulated to all Member States in English as well as in Arabic, with a view to seeking comments and suggestions during the 41 Session held in Abuja (Nigeria). 34. Resolution 41/S 5 adopted at the 41 st Session while appreciating the efforts of the Secretariat in the preparation of the draft Model Regional Co-operation Agreement between States of Origin and States of Destination/Employment within AALCO Member States in collaboration with the IOM inter alia requested Member States to provide the Secretariat with their comments and suggestions on the draft Model Regional Cooperation Agreement. It also requested the Secretary General to explore the possibility of convening a meeting in collaboration with the IOM for in-depth consideration of the Draft Model Agreement, in light of views expressed at the 41 st Session as well as comments and suggestions received subsequently from the Member States. 35. Soon after the 41 st Session I went to Geneva to attend the 54 th Session of the ILC in August During my visit, I had the opportunity to meet the Director General of IOM and discuss the possibility of organizing a meeting jointly in implementing the mandate of the Abuja Session to facilitate consideration of the Draft Model Agreement. It has been proposed to convene such a meeting in co-operation with IOM during the year (iii) Status and Treatment of Refugees 36. This item was placed on the agenda of AALCO upon a reference made by the Government of the Arab Republic of Egypt in Since then it had been discussed at various sessions and inter-sessional meetings. AALCO has been working closely with the UNHCR for almost 40 years. One of the notable achievements of such co-operative arrangements between the two Organizations has been the adoption of the Bangkok Principles on Status and Treatment of Refugees in 1966 and its Revised Text in The relationship between the two Organizations was formalized with the signing of Memorandum of Understanding on 23 May At AALCO s 41 st Session in Abuja, the resolution adopted at that Session directed the Secretariat to prepare studies and researches on this item with the assistance of UNHCR and to explore the possibility of convening a workshop in co-operation with UNHCR for in-depth consideration of related issues. 38. As a follow-up, consultations have been held with the Officials of the UNHCR both in Geneva and in New Delhi. It has been agreed that UNHCR and AALCO would jointly convene a meeting in September 2003, in New Delhi. Among the topics for consideration, the focus primarily would be on issues concerning International Protection, Secondary movement, International co-operation and Burden Sharing. 9

10 (iv) International Terrorism 39. This item was placed on the agenda of the AALCO s 40 th session (New Delhi, 2001) upon a reference made by the Government of India. The explanatory note submitted by the Government of India stressed that the consideration of this item at the AALCO would be timely and useful in the context of on-going negotiations in the Adhoc Committee of the United Nations concerning the elaboration of a comprehensive international convention against international terrorism. 40. The resolution adopted at the 41 st session in Abuja (2002) directed the Secretariat to monitor and report on the progress in the negotiations related to the drafting of a comprehensive international convention to combat terrorism as well as the work of the Counter Terrorism Committee for consideration at the 42 nd session. 41. The document prepared for the 42 nd session (Seoul, 2003) contains the summary of deliberations on the comprehensive convention on terrorism at the seventh session of the Ad Hoc Committee and also the developments before the Counter Terrorism Committee during the 57 th session of the General Assembly. (v) Extraterritorial Application of National Legislation: Sanctions Imposed Against Third Parties 42. The item Extra-territorial Application of National Legislation: Sanctions Imposed Against Third Parties was placed on the agenda of the 36 th Session of the AALCO following upon a reference made by the Government of the Islamic Republic of Iran. Accordingly, a preliminary study was prepared by the Secretariat, for consideration at the 36 th Session held in Tehran in1997. With a view to carry out an in-depth discussion on the issues relating to extraterritorial measures affecting third parties, AALCO convened a Seminar on this item in co-operation with the Government of the Islamic Republic of Iran, at Tehran, in January The Secretariat has been monitoring related developments and provided updates on this matter for consideration at AALCO s annual sessions. 43. As regards future work on this item, it has been the view that Member States should consider sharing their experiences on issues relating to Extraterritorial Application of National Laws. This view has found endorsement in the repeated request made at the annual sessions of the Organization, wherein AALCO Member States have been urged to provide relevant information and material relating to national legislation on this topic. So far the Secretariat has received only the response from Government of Japan on the item. The Secretariat wishes to renew its request and hopes more such information would be forthcoming from other Member States. 10

11 44. Based on the views expressed at AALCO s annual Sessions, it may be reiterated that the promulgation and application of laws with extraterritorial effects impinges on sovereignty of other States, the legitimate interests of entities and persons under their jurisdiction and the freedom of trade and navigation. Similar concerns have been expressed in many international and regional fora, such as the United Nations General Assembly, Group of 77, Organization of Islamic Conference, the Inter American Juridical Committee, and the European Economic Community and the recently concluded XIII session of the Non-Aligned Movement. 45. The United Nations General Assembly at its 57 th Session, adopted on 16 th October 2002, Resolution 57/5 entitled Elimination of unilateral extraterritorial coercive economic measures as a means of political and economic compulsion. The Assembly expressed grave concern over the continued application of unilateral extraterritorial coercive measures whose effects have an impact on the sovereignty of other States and the legitimate interests of their entities and individuals in violation of the norms of international law and the purposes and principles of the United Nations. Such measures had a negative impact on trade and financial and economic and posed serious obstacles to the freedom of trade and the free flow of capital at the regional and international levels. The Assembly stressed that prompt elimination of such measures would be consistent with the purposes and principles embodied in the Charter of the United Nations and the relevant provisions of the Agreement on the World Trade Organization. It reiterated its call for the repeal of unilateral extraterritorial laws that impose coercive economic measures contrary to international law on corporations and nationals of other States. The Assembly again called upon all States not to recognize or apply unilateral extraterritorial coercive economic measures imposed by any State, which are contrary to recognized principles of international law. (vi) International Trade law 46. With a view to keep Member States informed about the recent developments in the field of international trade law, it has been the practice of the Secretariat to prepare a detailed report focusing on the legislative activities of international and intergovernmental bodies. In accordance with this practice the Secretariat has prepared the document for the 42 nd Session of AALCO. A brief summary on recent developments is given below. (a) Report of the Work Done by the United Nations Commission on International Trade Law at Its Thirty-Fifth Session 47. The thirty-fifth session of the UNCITRAL was held in New York from 17 to 28 June On the subject of International Commercial Conciliation, it may be recalled that a Model Law on International Commercial Conciliation was drafted over three sessions of the Working Group being the thirty-third, thirty-fourth and thirty-fifth 11

12 sessions. At its 35th session, the Commission, on the basis of the work done by the Working Group, considered the draft Model Law. The draft Model Law together with the draft Guide to Enactment of the Model Law was circulated for Members consideration and adoption. The Commission, after consideration of the text of the draft Model Law as revised by the drafting group, adopted the Model Law on International Commercial Conciliation at its 705 th meeting, on 24 June Apart from this, the Commission also considered Working Groups report on Insolvency Law, Security Interests, Transport Law, Arbitration, Electronic Commerce, Privately Financed Infrastructure Projects, and discussed about the enlargement of the Membership of the Commission. (b) United Nations Conference on Trade And Development (UNCTAD) 49. The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 to promote international cooperation in trade and development and the economic development of developing countries. It is composed of 187 member States. Its institutional set-up comprises the Conference, the Trade and Development Board (TDB) and a number of subsidiary bodies serviced by a permanent Secretariat. The analytical work of the UNCTAD is largely carried out within the following three subsidiary bodies, viz;- (a) (b) (c) Commission on Trade in Goods and Services, and Commodities; Commission on Investment, Technology and Related Financial Issues; and Commission on Enterprise, Business Facilitation and Development. 50. Besides the mandate conferred upon by the UNCTAD sessions, the work of the Commission is directed towards examining trade issues that are of special concern to the developing and least-developed countries. In recent years, UNCTAD s work has been streamlined to address WTO related trade and developmental issues like: - capacity building; technical assistance, technology transfer, special and differential treatment, electronic commerce, and impact of WTO Agreements on the developmental requirements of developing countries. The work of the three Commissions is largely carried out in Expert Group Meetings convened to discuss topics identified by the Commission. The outcome of the Expert Group Meeting is in the form of the Chairpersons Summary, which is submitted to the respective Commissions. Upon receipt of this report, the Commission may determine on how to pursue the topic further. 51. It may be noted that the current work of UNCTAD, contains elements related to the WTO s Doha Mandate as well as other long-term aspects like foreign direct investments, competition policy, intellectual property rights, environmental standards in international trade, etc. In light of the accumulated expertise of UNCTAD on trade and development issues, the AALCO could consider active engagement and cooperation between the two organizations. 12

13 52. The following modes of cooperation between AALCO and UNCTAD could be envisaged. In the context of the forthcoming Fifth WTO Ministerial Conference scheduled to be held in Mexico in 2003, AALCO and UNCTAD could organize a joint preparatory conference for AALCO Member States. AALCO could provide a valuable forum for regional seminars/workshops organized within the mandate of UNCTAD Capacity-building and training programmes for officials from AALCO Member States could be held jointly with UNCTAD on issues relating to inter alia dispute settlement procedures; protection of traditional knowledge; electronic commerce; multilateral framework for investments and competition policy; and role of environmental standards in international trade. (c) International Institute for the Unification of Private Law (UNIDROIT) 53. The International Institute for the Unification of Private Law (UNIDROIT) is an independent intergovernmental organization with its seat in Rome. Its purpose is to study needs and methods for modernizing, harmonizing and coordinating private and in particular commercial law as between States and groups of States. 54. UNIDROIT has over the years prepared 70 studies and drafts. Many of these have resulted in adoption of international instruments at diplomatic conferences convened by UNIDROIT among them include: 1964 Convention Relating to a Uniform Law on the International Sale of Goods; 1970 International Convention on the Travel Contract, 1988 UNIDROIT Convention on International Financial Leasing; 1995 UNIDROIT Convention on Stolen or Illegally Exported Cultural Objects; and 2001 Convention on International Interests in Mobile Equipment. 55. It may be recalled that the UNIDROIT Convention on International Interests in Mobile Equipment and a Protocol on Matters Specific to Aircraft Equipment were opened for signature on 16 November 2001 at a Diplomatic Conference, held in Cape Town, South Africa. The essential purpose of the Convention is to provide for the constitution and effects of a new international interest in mobile equipment, defined so as to embrace not only classic security interests but also what is increasingly recognized as their functional equivalent namely the lessor s interest under a leasing agreement. The efficacy of the international interest is conditional upon its registration in an International Registry to be established under the Convention. The latter is intended to be supplemented by separate Protocols for each of the different categories of equipment encompassed by its sphere of application, the first of which is the Aircraft Protocol. 56. Currently UNIDROIT is working on the preparation of draft Protocols which would cover the categories of railway rolling stock and Space assets. In the area of 13

14 franchising, following the publication of the Guide to International Master Franchise Arrangements, the Governing Council decided in 1998 that the franchising Study Group commence work on the preparation of a draft model law on disclosure in franchising. This draft was finalized by the Study Group in 2000 and was submitted for consideration by a Committee of governmental experts. The draft is currently being considered by the Governing Council of UNIDROIT. Other topics currently considered by UNIDROIT include: preparation of Principles and Rules of Transnational Civil Procedure and Transactions on transnational and connected capital markets (d) Hague Conference on Private International Law 57. The Hague Conference on Private International Law ( Conference ) is an intergovernmental organization, the purpose of which is to work for the progressive unification of the rules of private international law. The principal method used to achieve the purpose of the Conference consists in the negotiation and drafting of multilateral treaties or Conventions in the different fields of private international law. From 1951 to 1999,the Conference adopted 34 international conventions. 58. The work programme for the period includes issues relating to: Jurisdiction and foreign judgments in civil and commercial matters; Indirectly held securities; Electronic Commerce; General Affairs and Policy of the Conference; 1980 Hague Child Abduction Convention; 1993 Hague Inter- country Adoption Convention; 1956/58 and 1973 Hague Maintenance Obligations Conventions and the New York Convention of 20 June 1956 on the Recovery Abroad of Maintenance. 59. One of the notable achievements in the year 2002 is the adoption of the Hague Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary. The Convention was adopted on 13 December 2002, and is now open for signature and ratification by the 62 Member States of the Hague Conference, as well as by all other States. For the financial markets, the exposures involved in cross-border securities transactions are extremely large with securities worth hundreds of billions of dollars, Euros and Yen cross borders every day as collateral all around the globe. The new Hague Securities Convention resolves this conflict of laws issue on a global level and makes clear what steps need to be taken in order to assure in advance what law governs securities transaction to the benefit of market participants and the financial system as a whole. Another topic actively pursued by the Hague Conference is the preparation of a Convention on Jurisdiction, Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters. It may be recalled that a preliminary draft Convention on the topic was adopted by a Special Commission in October The proposed convention would be submitted to a Special Commission during the first half of 2003 and followed by a Diplomatic Conference which would be held, if possible, by the end of

15 D. AALCO s Representation at International Meetings (i) 54 th Session of the International Law Commission (ILC) 60. I attended the second part of the 54 th session of ILC. In my address, at the outset, I recalled AALCO s traditional and long-standing ties with the ILC. I pointed out that one of the primary objectives of AALCO, as envisaged in its Statutes is to examine questions that are under consideration by the ILC and to arrange for the views of the Member States to be placed before the Commission. This mandate has over the years helped forge closer bonds between the two Organizations. In fact, it has now become customary for the Commission and AALCO to be represented at the each other s annual sessions. 61. Presenting an overview of AALCO s 41 st Session, I said that as many as 15 substantive items were considered in the course of the session. One such important item included the Work of the ILC at its 53 rd Session. I said that the items currently on the agenda of the ILC were all of immense interest to AALCO Member States. I apprised the Commission of the views expressed by AALCO Member States on the items on ILC s agenda. 62. Referring to the item on State Responsibility, I stated that the AALCO delegates welcomed the completion and adoption of the draft articles by the Commission on the topic. A majority of the delegates acknowledged that the draft articles were balanced and a fair reflection of customary international law. A view however was that the draft articles as adopted emphasized codification rather than introducing progressive elements of international law. While codification admittedly had the advantage of rendering the draft articles more acceptable to States, the elements of progressive development like the notion of serious breach of obligations under peremptory norms of international law and the invocation of responsibility by a State other than the injured State had the potential to invite further debate among States. Overall, the delegates felt that the draft articles were the best that could be obtained after almost 50 years of hard work. I conveyed to the Commission on behalf of AALCO Member States our appreciation for the contributions of all the Special Rapporteurs in shaping the draft articles. 63. Turning to the draft articles on Prevention of Transboundary Harm from Hazardous Activities, I complimented the Commission and the Special Rapporteur Dr. P.S. Rao and his predecessors for the successful completion of the work on this topic. The draft articles were considered as a significant step forward in the field of international environmental law and could serve as a practical guide for the elaboration of international legal instruments dealing with specific aspects of environmental protection. More particularly, the principles concerning public participation, non-discrimination, and settlement of disputes in the draft articles were in the nature of progressive development 15

16 of international law. As State practice on these matters vary from region to region, it may take time before universal standards could be developed. 64. I drew attention to the resolution adopted at the 41 st session of AALCO in which AALCO Member States were inter alia urged to communicate their responses to the questions set forth by the ILC on the topics of Reservations to Treaties and Diplomatic Protection. 65. I said that it was a matter of pride that AALCO was one of the inter-governmental organizations having cooperative relationship with the ILC and assured that it would be my endeavour to further intensify the working relationship between the two Organizations. I observed that AALCO as an inter-governmental body with membership of 45 States from the continents of Asia and Africa, was uniquely placed to serve the States of this region in examining and formulating their responses to newly emerging challenges of international law. The expanding scope and variety of issues on its workprogramme was indicative of the willingness of AALCO to keep up with these increased responsibilities. Against this backdrop, I stressed that the relationship between AALCO and ILC should be further intensified. Owing to paucity of time, in-depth consideration of important legal aspects becomes impossible at annual session, I therefore reiterated my proposal, which I had made last year, concerning the feasibility of the ILC and AALCO jointly organizing a seminar or workshop focusing on one of the topics that was presently at the formative stage within the Commission or any other topic proposed under its longterm Programme. 66. After my statement, comments were made by the Members of the Commission. The Chairman welcomed the initiative taken by AALCO to strengthen the co-operation between the two Organizations. Prof. Momtaz considered AALCO s study on ILC as well documented and suggested that it should be circulated to all the Members of the Commission. Amb. Yamada drew attention to the item on Jurisdictional Immunities of States and their Property and reiterated his proposal to convene a seminar jointly by AALCO and ILC in conjunction with AALCO s Legal Adviser s Meeting in New York. He suggested that ILC s Special Rapporteur on this topic could be invited to address that Meeting. He offered his assistance in organizing that meeting. Madam Xue Hanqin stated that AALCO as the only Inter-governmental organization in the Asian-African region engaged in legal matters could promote participation of Asian and African States in the ILC s work. She supported the proposals of Prof. Momtaz and Amb. Yamada. 67. Prof. Simma stated that AALCO was unique in the sense that it was the only inter-governmental Organization established with the sole purpose of development of international law. He felt that AALCO s work should be better known. In order to attract the participation from States from French speaking countries, AALCO should prepare studies especially devoted to francophone African States. He supported the proposal to convene a joint Seminar on ILC matters along with AALCO s Legal Adviser s Meeting. Other members of the ILC who spoke on the occasion included Dr. P.S. Rao and Prof. Allain Pellet. 16

17 (ii) 35 th Session of UNCITRAL 68. The thirty-fifth session of the UNCITRAL was held in New York from 17 to 28 June AALCO was represented at that session by Dr. Ahmed Jassim Al-Gaa tri, Deputy Secretary-General. In his statement, Dr Al-Gaa tri recalled the close relation between AALCO and UNCITRAL. He said that AALCO was keenly following the ongoing work of the Commission relating to Arbitration and Electronic Commerce. As regards the enlargement of the membership of the Commission, he referred to the suggestions of the AALCO Member States, that such expansion should accommodate both the interest of the various countries in the new international economic order and the position which the concerned countries occupy in the international plane. (iii) African Union Ministerial Conference 69. It may be recalled that at AALCO s 41 st Session I proposed for inclusion of an item An Effective International Legal Instrument Against Corruption in the agenda of the Session. In the course of the discussion, there was wide support to this initiative and a suggestion was made that the Secretariat should follow the work of the African Union which was also engaged in similar work. Pursuant to that suggestion, Amb. Dr. Ali Reza Deihim, Deputy Secretary-General was deputed to represent AALCO at the Expert level meeting and Ministerial Conference convened by the African Union in Addis Ababa from 16 to 19 September Following the presentation of the Report of the Expert s Meeting on the Draft African Union Convention on Combating Corruption, the Ministerial Conference considered the draft text of the Convention, article by article. The Ministers approved amendments to provisions of certain articles and adopted the draft text. Dr. Deihim presented a detailed Report on the outcome of the Conference at the 279 th Meeting of the Liaison Officers held on 20 th December (iv) United Nations Ad Hoc Committee on the Elaboration of the United Nations Convention against Corruption 70. It may be recalled the General Assembly by its resolution 55/61 of 4 December 2000, established an Ad Hoc Committee for the negotiation of an effective international legal instrument against corruption. The Draft Terms of Reference for the Negotiation of the Convention was prepared by an Inter-governmental Open-ended Expert Group which met in Vienna from 30 July to 3 August By its resolution 56/260, the General Assembly decided that the Ad Hoc Committee should negotiate a broad and effective convention, which subject to its final determination of its title, should be referred to as the United Nations Convention against corruption. 71. The Ad Hoc Committee, has met in Vienna five times so far. At the first three sessions, AALCO was represented by its Permanent Observer in Vienna, Amb. Ki Nemoto and Deputy Permanent Observer Madam Christine Nemoto. Since the 17