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II.5.210 (LINER CODE 1974) CONVENTION ON A CODE OF CONDUCT FOR LINER CONFERENCES, 1974

The Ratification of Maritime Conventions

Chapter I.5.210

CONVENTION ON A CODE OF CONDUCT FOR LINER CONFERENCES, 1974

ADOPTED: Done at Geneva, 6 April 1974
REFERENCE: LINER CODE, 1974
ENTERED INTO FORCE: 6 October 1983
DEPOSITARY: Secretary-General, United Nations
SECRETARY: Secretary-General, United Nations

IMPLEMENTATION

SIGNATURE, RATIFICATION, ACCEPTANCE, APPROVAL AND ACCESSION

Article XLVIII

1. The present Convention shall remain open for signature as from 1 July 1974 until and including 30 June 1975 at United Nations Headquarters and shall thereafter remain open for accession.

2. All States are entitled to become Contracting Parties to the present Convention by:

  • (a) signature subject to and followed by ratification, acceptance or approval;
  • (b) Signature without reservation as to ratification, acceptance or approval; or
  • (c) accession.

3. Ratification, acceptance, approval or accession shall be effected by the deposit of an instrument to this effect with the depositary.

ENTRY INTO FORCE

Article XLIX

1. The present Convention shall enter into force six months after the date on which not less than 24 States, the combined tonnage of which amounts to at least 25 per cent of world tonnage, have become Contracting Parties to it in accordance with article XLVIII. For the purpose of the present article the tonnage shall be deemed to be that contained in Lloyd’s Register of Shipping—Statistical Tables 1973, table 2 “World Fleets—Analysis by Principal Types”, in respect to general cargo (including passenger/cargo) ships and container (fully cellular) ships, exclusive of the United States reserve fleet and the American and Canadian Great Lakes fleets.

2. For each State which thereafter ratifies, accepts, approves or accedes to it, the present Convention shall come into force six months after deposit by such State of the appropriate instrument.

3. Any State which becomes a Contracting Party to the present Convention after the entry into force of an amendment shall, failing an expression of a different intention by that State:

  • (a) Be considered as a Party to the present Convention as amended; and
  • (b) Be considered as a Party to the unamended Convention in relation to any Party to the present Convention not bound by the amendment.

DENUNCIATION

Article L

1. The present Convention may be denounced by any Contracting Party at any time after the expiration of a period of two years from the date on which the Convention has entered into force.

2. Denunciation shall be notified to the depositary in writing, and shall take effect one year, or such longer period as may be specified in the instrument of denunciation, after the date of receipt by the depositary.

AMENDMENTS

Article LI

1. Any Contracting Party may propose one or more amendments to the present Convention by communicating the amendments to the depositary. The depositary shall circulate such amendments among the Contracting Parties, for their acceptance, and among States entitled to become Contracting Parties to the present Convention which are not Contracting Parties for their information.

2. Each proposed amendment circulated in accordance with article LI, paragraph (1) shall be deemed to have been accepted if no Contracting Party communicates an objection thereto to the depositary within 12 months following the date of its circulation by the depositary. If a Contracting Party communicates an objection to the proposed amendment, such amendment shall not be considered as accepted and shall not be put into effect.

3. If no objection has been communicated, the amendment shall enter into force for all Contracting Parties six months after the expiry date of the period of 12 months referred to in article LI, paragraph 2.

REVIEW CONFERENCES

Article LII

1. A Review Conference shall be convened by the depositary five years from the date on which the present Convention comes into force to review the working of the Convention, with particular reference to its implementation, and to consider and adopt appropriate amendments.

2. The depositary shall, four years from the date on which the present Convention comes into force, seek the views of all States entitled to attend the Review Conference and shall, on the basis of the views received, prepare and circulate a draft agenda as well as amendments proposed for consideration by the Conference.

3. Further review conferences shall be similarly convened every five years, or at any time after the first Review Conference, at the request of one-third of the Contracting Parties to the present Convention, unless the first Review Conference decides otherwise.

4. Notwithstanding the provisions of article LII, paragraph 1, if the present Convention has not entered into force five years from the date of the adoption of the Final Act of the United Nations Conference of Plenipotentiaries on a Code of Conduct for Liner Conferences, a Review Conference shall, at the request of one-third of the States entitled to become Contracting Parties to the present Convention, be convened by the Secretary-General of the United Nations, subject to the approval of the General Assembly, in order to review the provisions of the Convention and its annex and to consider and adopt appropriate amendments.

DECLARATIONS AND RESERVATIONS

(Unless otherwise indicated, the declarations and reservations were made upon definitive signature, ratification, accession, acceptance or approval.)

Belgium

Upon signature:

Under Belgian law, the Convention must be approved by the legislative chambers before it can be ratified.

In due course, the Belgian Government will submit this Convention to the legislative chambers for ratification, with the express reservation that its implementation should not be contrary to the commitments undertaken by Belgium under the Treaty of Rome establishing the European Economic Community and the OECD Code of Liberalisation of invisible trade, and taking into account any reservations it may deem fit to make to the provisions of this Convention.

Upon ratification:

I. Reservations:

1. For the purposes of the Code of Conduct, the term “national shipping line” may, in the case of a State member of the European Economic Community, include any vessel-operating shipping line established on the territory of that member State, in accordance with the Treaty establishing the European Economic Community.

2. (a) Without prejudice to paragraph (b) of this reservation, Article 2 of the Code of Conduct shall not be applied in conference trades between States members of the Community and, on a reciprocal basis, between these States and other OECD countries which are parties to the Code;

(b) Point (a) shall not affect the opportunities for participation as third country shipping lines in such trades, in accordance with the principles reflected in Article 2 of the Code, of the shipping lines of a developing country which are recognized as national shipping lines under the Code and which are:

  • (i) already members of a conference serving these trades, or
  • (ii) admitted to such a conference under Article 1(3) of the Code.

3. Articles 3 and 14(9) of the Code of Conduct shall not be applied in conference trades between the States members of the Community and, on a reciprocal basis, between these States and other OECD countries which are parties to the Code.

4. In Trades to which Article 3 of the Code of Conduct applies, the last sentence of that Article is interpreted as meaning that:

  • (a) the two groups of national shipping lines will coordinate their positions before voting on matters concerning the trade between their two countries;
  • (b) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.

II. Declarations:

1. In accordance with the Resolution on non-conference shipping lines adopted by the Conference of Plenipotentiaries, as reproduced in annex II–2 to this convention, the Government of the Kingdom of Belgium shall not prevent non-conference shipping lines from operating, provided that they compete with the conferences on a commercial basis, respecting the principle of fair competition. This government confirms its intention to abide by the said Resolution.

2. The Government of the Kingdom of Belgium declares that it will implement the Convention and its annexes in accordance with the basic concepts and considerations herein stated and, in so doing, is not precluded by the Convention from taking appropriate steps in the event that another contracting party adopts measures or practices that prevent fair competition on a commercial basis in its liner trades.

Brazil

Upon signature:

In accordance with SUNAMAM’s resolutions Nos. 3393, of 12/30/1972, and 4173, of 12/21/1972, which set up and structured the “Bureau de Estudos de Fretes Internacionais da SUNAMAM”, and by which the “Superintendêcia Nacional de Marinha Mercante (SUNAMAM)” has the authority to reject any proposal on freight rates put forward by Liner Conferences, the contents of article XIV, paragraph 6, of that Convention do not conform to Brazilian Law.

Bulgaria

The Government of the People’s Republic of Bulgaria considers that the definition of liner conference does not include joint bilateral lines operating on the basis of inter-governmental agreements.

With regard to the text of point 2 of the annex to resolution I, adopted on 6 April 1974, the Government of the People’s Republic of Bulgaria considers that the provisions of the Convention on a Code of Conduct for Liner Conferences do not cover the activities of non-conference shipping lines.

China

The joint shipping services established between the People’s Republic of China and any other country through consultations and on a basis that the parties concerned may deem appropriate, are totally different from liner conferences in nature, and the provisions of the United Nations Convention on a Code of Conduct for Liner Conferences shall not be applicable thereto.

On 6 June 1997, the Government of China made the following declaration:

1. (A) Without prejudice to paragraph 1(B) of this reservation, Article 2 of the Convention shall not be applied in conference trades, on a reciprocal basis, between the Hong Kong Special Administrative Region and any State which has made a reservation disapplying Article 2 in respect of its trade with the People’s Republic of China.

(B) Paragraph 1(A) above shall not affect the opportunity of shipping lines of a developing country for participation as third shipping lines in such trades in accordance with the principles reflected in Article 2 of the Convention, or the shipping lines of a developing country which are recognised as national shipping lines under the Convention and which are:

  • (a) already members of a conference serving these trades; or
  • (b) admitted to such a conference under Article 1(3) of the Convention.

2. In trades where Article 2 of the Convention applies, shipping lines incorporated in the Hong Kong Special Administrative Region will, subject to reciprocity, allow participation in redistribution by lines from any country which has agreed to allow participation by lines of the People’s Republic of China in redistribution in respect of its trades.

3. Article 3 and Article 14(9) of the Convention shall not be applied in conference trades, on a reciprocal basis, between the Hong Kong Special Administrative Region and any State which has made a reservation disapplying Article 3 and Article 14(9) in respect of its trade with the People’s Republic of China.

4. In trade to which Article 3 of the Convention applies, the last sentence of that article is interpreted as meaning that:

  • (A) the two groups of national shipping lines will coordinate their position before voting on matters concerning the trade between their two countries; and
  • (B) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.

5. In accordance with the Declaration of the Government of the People’s Republic of China and the United Kingdom of Great Britain and Northern Ireland on the question of Hong Kong signed on 19 December 1984, the People’s Republic of China will resume the exercise of sovereignty over Hong Kong with effect from 1 July 1997. Hong Kong will, with effect from that date, become a Special Administrative Region of the People’s Republic of China and will enjoy a high degree of autonomy, except in foreign and defence affairs which are the responsibility of the Central People’s Government of the People’s Republic of China.

Cuba

Reservation:

The Republic of Cuba enters a reservation concerning the provisions of article II, paragraph 17, of the Convention, to the effect that Cuba will not apply said paragraph to goods carried by joint liner services for the carriage of any cargo, established in accordance with inter-governmental agreements, regardless of their origin, their destination or the use for which they are intended.

Declaration:

With regard to the definitions in the first paragraph of part one, chapter I, the Republic of Cuba does not accept the inclusion in the concept of “Liner conference or conference” of joint liner services for the carriage of any type of cargo, established in accordance with inter-governmental agreements.

Czechoslovakia

Upon signature:

The provisions of the Code of Conduct do not apply to joint line services established on the basis of inter-governmental agreements for serving the bilateral trade;

Eventual one-sided regulation of the activity of non-conference lines by legislation of individual States would be considered incompatible on the part of the Czechoslovak Socialist Republic, with the main aims and principles of the Convention and would not be recognized as valid.

Denmark

Reservations:

1. For the purposes of the Code of Conduct, the term “national shipping line” may, in the case of a State member of the European Economic Community, include any vessel-operating shipping line established on the territory of that member State, in accordance with the Treaty establishing the European Economic Community.

2. (a) Without prejudice to paragraph (b) of this reservation, Article II of the Code of Conduct shall not be applied in conference trades between States members of the Community and, on a reciprocal basis, between these States and other OECD countries which are parties to the Code;

(b) Point (a) shall not affect the opportunities for participation as third country shipping lines in such trades, in accordance with the principles reflected in Article II of the Code, of the shipping lines of a developing country which are recognized as national shipping lines under the Code and which are:

  • (i) already members of a conference serving these trades; or
  • (ii) admitted to such a conference under Article 1(3) of the X Code.

3. Article III and XIV (9) of the Code of Conduct shall not be applied in conference trades between the States members of the Community and, on a reciprocal basis, between these States and other OECD countries which are parties to the Code.

4. In trades to which Article III of the Code of Conduct applies, the last sentence of that Article is interpreted as meaning that:

  • (a) the two groups of national shipping lines will co-ordinate their positions before voting on matters concerning the trade between their two countries.
  • (b) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.

Declarations:

The Government of Denmark considers that the United Nations Convention on a Code of Conduct for Liner Conferences affords the shipping lines of developing countries extended opportunities to participate in the conference system and is drafted so as to regulate conferences and their activities in open trades (i.e., when opportunities to compete exist). This Government also considers that it is essential for the functioning of the Code and conferences subject thereto that opportunities for fair competition on a commercial basis by non-conference shipping lines continue to exist and that shippers are not denied an option in the choice between conference shipping lines and non-conference shipping lines, subject to loyalty arrangements where they exist. These basic concepts are reflected in a number of provisions of the Code itself, including its objectives and principles, and they are expressly set out in Resolution No. 2 on non-conference shipping lines adopted by the United Nations Conference of Plenipotentiaries.

This Government considers furthermore, that any regulations or other measures adopted by a contracting party to the United Nations Convention with the aim or effect of eliminating such opportunities for competition by non-conference shipping lines would be inconsistent with the above-mentioned basic concepts and would bring about a radical change in the circumstances in which conferences subject to the Code are envisaged as operating. Nothing in the Convention obliges other contracting parties to accept either the validity of such regulations or measures, or situations where conferences, by virtue of such regulations or measures, acquire effective monopoly in trades subject to the Code.

The Government of Denmark declares that it will implement the Convention in accordance with the basic concepts and considerations herein stated and, in so doing, is not precluded by the Convention from taking appropriate steps in the event that another contracting party adopts measures or practices that prevent fair competition on a commercial basis in its liner trades.

Finland

Reservations:

“1. Articles II, III and XIV (9) of the Code of Conduct shall, on a reciprocal basis, not be applied in conference trades between Finland and other OECD countries which are parties to the Code.

2. In trades to which Article III of the Code of Conduct applies, the last sentence of that Article is interpreted as meaning that:

  • (a) the two groups of national shipping lines will coordinate their positions before voting on matters concerning the trade between their two countries;
  • (b) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.”

Declarations:

“A. The Government of Finland considers that the United Nations Convention on a Code of Conduct for Liner Conferences affords the shipping lines of developing countries extended opportunities to participate in the conference system and is drafted so as to regulate conferences and their activities in open trades (i.e. when opportunities to compete exist). This Government also considers that it is essential for the functioning of the Code and conferences subject thereto that opportunities for fair competition on a commercial basis by non-conference shipping lines continue to exist and that shippers are not denied an option in the choice between conference shipping lines and non-conference shipping lines, subject to loyalty arrangements where they exist. These basic concepts are reflected in a number of provisions of the Code itself, including its objectives and principles, and they are expressly set out in Resolution No. 2 on non-conference shipping lines adopted by the United Nations Conference of Plenipotentiaries.

B. This Government considers furthermore that any regulations or other measures adopted by a contracting party to the UN Convention with the aim or effect of eliminating such opportunities for competition by non-conference shipping lines would be inconsistent with the above-mentioned basic concepts and would bring about a radical change in the circumstances in which conferences subject to the Code are envisaged as operating. Nothing in the Convention obliges other contracting parties to accept either the validity of such regulations or measures or situations where conferences, by virtue of such regulations or measures, acquire effective monopoly in trades subject to the Code.

C. The Government of Finland declares that it will implement the Convention in accordance with the basic concepts and considerations herein stated and, in so doing is not precluded by the Convention from taking appropriate steps in the event that another contracting party adopts measures or practices that prevent fair competition on a commercial basis in its liner trades.”

France

Declaration made upon signature:

Under the French Constitution, approval of the Convention is subject to authorization by Parliament.

It is understood that this approval is conditional upon compliance with the commitments undertaken by France under the Treaty of Rome establishing the European Economic Community and the Code of Liberalisation of invisible trade of the Organisation for Economic Co-operation and Development, taking into account any reservations which the French Government may deem fit to make to the provisions of this Convention.

Reservations made upon approval:

[Same reservations, identical in essence, as those made by Denmark.]

Germany

Upon signature:

The Convention under the law of the Federal Republic of Germany, requires the approval of the legislative bodies for ratification. At the appropriate time, the Federal Republic of Germany will implement the Convention in conformity with its obligations under the Treaty of Rome establishing the European Economic Community as well as under the OECD Code of Liberalisation of Current Invisible Operations.

Upon ratification:

Declarations:

1. For the purposes of the Code of Conduct, the term “national shipping line” may, in the case of a Member State of the European Economic Community, include any vessel operating shipping line established on the territory of such Member State in accordance with the EEC Treaty.

2. (a) Without prejudice to paragraph (b) [hereinafter], article II of the Code of Conduct shall not be applied in conference trades between the Member States of the European Economic Community or, on the basis of reciprocity, between such States and other OECD countries which are parties to the Code.

(b) Paragraph (a) [above] shall not affect the opportunities for participation as third-country shipping lines in such trades, in accordance with the principles laid down in such trades, in accordance with the principles laid down in article II of the Code, of the shipping lines of a developing country which are recognized as national shipping lines under the Code and which are:

  • (i) already members of a conference serving these trades; or
  • (ii) admitted to such a conference under article I (3) of the Code.

3. Articles III and XIV (9) of the Code of Conduct shall not be applied in conference trades between Member States of the Community or, on a reciprocal basis, between such States and the other OECD countries which are parties to the Code.

4. In trades to which article III of the Code of Conduct applies, the last sentence of that article is interpreted as meaning that:

  • (a) The two groups of national shipping lines will coordinate their positions before voting on matters concerning the trade between their two countries;
  • (b) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.

5. The Government of the Federal Republic of Germany will not prevent non-conference shipping lines from operating as long as they compete with conferences on a commercial basis while adhering to the principle of fair competition, in accordance with the resolution on non-conference lines adopted by the Conference of Plenipotentiaries. It confirms its intention to act in accordance with the said resolution.

6. The Government of the Federal Republic of Germany declared that the said Convention shall also apply to Berlin (West) with effect from the date on which it enters into force for the FDR.

India

In confirmation of paragraph (2) of the statement filed by the Representative of India on behalf of the Group of 77 on 8 April 1974 at the United Nations Conference of Plenipotentiaries on a Code of Conduct for Liner Conferences, it is the understanding of the Government of India that the inter-governmental shipping services established in accordance with inter-governmental agreements fall outside the purview of the Conferences regardless of the origin of the cargo, their destination or the use for which they are intended.

Iraq

The accession shall in no way signify recognition of Israel or entry into any relation therewith.

Italy

(A) Reservation:

1. In application of the Code of Conduct, the concept of a “national shipping line” may, in the case of a member State of the European Community, include all shipping companies established on the territory of that member State in accordance with the treaty setting up the European Economic Community.

2. (a) Without prejudice to the text of paragraph (b) of this reservation, article II of the Code of Conduct shall not be applied in trade carried by a conference between the member States of the Community and, on a reciprocal basis, between those States and the other OECD countries parties to the Code.

(b) The text of paragraph (a) shall not affect the opportunities for shipping lines of developing countries, as third-country shipping lines, to take part in such trade in accordance with the principles set out in article II of the Code, provided they have been recognized as national shipping lines under the terms of the Code and:

  • (i) are already members of a conference carrying such trade, or
  • (ii) have been accepted for membership of such a conference under the provisions of article I(3) of the Code.

3. Article III and article XIV(9) of the Code of Conduct shall not be applied in trade carried out by a conference between the member States of the Community and, on a reciprocal basis, between those countries and the other OECD countries parties to the Code.

4. In any trade to which article III of the Code of Conduct applies, the last sentence of the article is taken to mean that:

  • (a) The two groups of national shipping lines shall coordinate their positions before voting on matters relating to trade between their two countries;
  • (b) The sentence shall be applied solely to matters defined in a conference agreement as requiring the consent of the two groups of national shipping lines concerned and not to all matters covered by the conference agreement.

(B) Declaration

The Government of the Republic of Italy

—will not prevent non-conference lines from operating as long as they compete with conferences on a commercial basis while adhering to the principle of fair competition, in accordance with Resolution on non-conference lines adopted by the Conference of Plenipotentiaries:

—confirms its intention of acting in accordance with the said Resolution.

In connection with the above-mentioned declaration, it is recalled that the Resolution referred to therein reads as follows:

  • “Non-conference shipping lines
  • 1. Nothing in that Convention shall be construed so as to deny shippers an option in the choice between conference shipping lines and non-conference shipping lines subject to any loyalty arrangements where they exist;
  • 2. Non-conference shipping lines competing with a conference should adhere to the principle of fair competition on a commercial basis;
  • 3. In the interest of sound development of liner shipping service, non-conference shipping lines should not be prevented from operating as long as they comply with the requirements of paragraph 2 above.”

Kuwait

Understanding:

The accession to the Convention does not mean in any way a recognition of Israel by the Government of Kuwait.

Netherlands

[Same declarations, identical in essence, as those made by the Federal Republic of Germany upon ratification.]

Norway

[Same declarations and reservations, identical in essence, as those made by Denmark.]

Peru

The Government of Peru does not regard itself as being bound by the provisions of chapter II, article II, paragraph 4, of the Convention.

Portugal

Declarations

1. The Government of Portugal considers that the United Nations Convention on a Code of Conduct for Liner Conferences affords the shipping lines of developing countries extended opportunities to participate in the conference system and is drafted so as to regulate conferences and their activities in open trades. The Government also considers that it is essential for the functioning of the Code and conferences subject thereto that opportunities for fair competition on a commercial basis by non-conference shipping lines continue to exist and that shippers are not denied an option in the choice between conference shipping lines and non-conference shipping lines, subject to loyalty arrangements where they exist. These basic concepts are reflected in a number of provisions of the Code itself, including its objectives and principles, and they are expressly set out in Resolution No. 2 on non-conference shipping lines adopted by the United Nations Conference of Plenipotentiaries.

2. The Government considers furthermore that any regulations or other measures adopted by a Contracting Party to the Convention with the aim or effect of eliminating such opportunities for competition by non-conference shipping lines would be inconsistent with the above-mentioned basic concepts and would bring about a radical change in the circumstances in which conferences subject to the Code are envisaged as operating. Nothing in the Convention obliges other Contracting Parties to accept either the validity of such regulations or measures or situations where conferences, by virtue of such regulations or measures, acquire effective monopoly in trades subject to the Code.

3. The Government of Portugal declares that it will implement the Convention in accordance with the basic concepts and considerations herein stated and, in so doing, is not precluded by the Convention from taking appropriate steps in the event that another Contracting Party adopts measures or practices that prevent fair competition on a commercial basis in its liner trades.

Reservations

2 1. In application of the Code of Conduct, the term “national shipping line” may, in the case of a Member State of the European Community, include any vessel-operating shipping line established on the territory of such Member State in accordance with the EEC Treaty.

2. (a) Without prejudice to paragraph (b) of this reservation, Article 2 of the Code of Conduct shall not be applied in conference trades between the Member States of the Community and, on a reciprocal basis, between such States and the other OECD countries which are parties to the Code.

(b) The text of paragraph (a) shall not affect the opportunities for participation as third country shipping lines in such trades, in accordance with the principles reflected in Article 2 of the Code, of the shipping lines of a developing country which are recognized as national shipping lines under the Code and which are:

  • (i) already members of a conference serving these trades; or
  • (ii) admitted to such a conference under Article 1(3) of the Code.

3. Articles 3 and 14(9) of the Code of Conduct shall not be applied in conference trades between the Member States of the Community and, on a reciprocal basis, between such States and the other OECD countries which are parties to the Code.

4. In trades to which Article 3 of the Code of Conduct applies, the last sentence of that Article is interpreted as meaning that:

(a) the two groups of national shipping lines will co-ordinate their positions before voting on matters concerning the trade between their two countries;

(b) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.

Spain

Reservations

1. For the purpose of implementing the Code of Conduct, the concept of “a national shipping line” may, in the case of a State Member of the European Economic Community, include any vessel-operating shipping line established in the territory of that State, in accordance with the Treaty establishing the European Economic Community.

2(a) Without prejudice to the text of (b) below, article 2 of the Code of Conduct shall not apply in conference trades between State members of the Community and, on the basis of reciprocity, between these States and other Organisations for the Economic Cooperation and Development (OECD) countries which are parties to the Code.

(b) The text of (a) above shall not affect the opportunities for participations in such trades, as third-country shipping lines, in accordance with the principles set out in article 2 of the Code by the shipping lines of a developing country which are recognised as national; shipping lines under the Code and which are:

  • (i) Members of a conference which ensures such trades, or
  • (ii) Admitted to membership of that conference under article 1, paragraph 3, of that Code.

3. Article 3 and article 14, paragraph 9, of the Code shall not apply in conference trades between States Members of the Community and, on the basis of reciprocity, between these States and other OECD countries which are parties to the Code.

4. In trades to which article 3 of the Code applies, the final sentence of that article shall be interpreted as follows:

  • (a) The two groups of national shipping lines shall coordinate their positions prior to voting on issues relating to trade between their two countries.
  • (b) This sentence shall apply solely to issues which, under the conference agreement, require the consent of the two groups of national shipping lines concerned, and not to all issues dealt with in the conference agreement.

Declaration

(A) The Government of Spain considers that the United Nations Convention on a Code of Conduct for Liner Conferences provides the shipping lines of developing countries with ample opportunities to participate in the liner conference system, and that it has been drafted in such a manner as to regulate conferences and their activities within a system of free trade (where there are opportunities for non-conference shipping lines).

This Government also deems it essential to the functioning of the Code and of the conferences whose regulation is referred to that there should continue to be opportunities for fair competition on a commercial basis for non-conference shipping lines, and that shippers should not be denied the option in the choice between conference shipping lines and non-conference shipping lines, subject to any loyalty arrangements where they exist. These basis concepts are reflected in several provisions of the Code itself, including its objectives and principles, and are expressly set out in resolution No. 2, concerning non-conference shipping lines, adopted by the United Nations Conference of Plenipotentiaries.

(B) This Government further believes that any regulation or other measures adopted by a Contracting Party to the United Nations Convention and having the purpose or effect of eliminating such opportunities for competition for non-conference shipping lines would be incompatible with the basic concepts mentioned above, and would effect a radical change in the circumstances under which conferences subject to the Code are envisaged as operative. Nothing in this Convention requires other Contracting Parties to accept either the validity of such regulations, or measures or situations whereby conferences, through such regulations measures, would, in practice, acquire a mononpoly on trades subject to the Code.

(C) The Government of Spain declares that it will implement the Convention in accordance with the basic concepts and conclusions stipulated herein and that, accordingly, the Convention shall not prevent it from taking appropriate steps in the event that another Contracting Party adopts measures or practices which impede fair competition on a commercial basis in liner shipping service.

Sweden

Reservations and Declarations:

[Same declarations and reservations, identical in essence, as those made by Denmark.]

Union of Soviet Socialist Republics

The Government of the Union of Soviet Socialist Republics considers that the provisions of the Convention on a Code of Conduct for Liner Conferences do not apply to joint shipping lines established on the basis of intergovernmental agreements to serve bilateral trade between the countries concerned.

United Kingdom of Great Britain and Northern Ireland

I. In relation to the United Kingdom of Great Britain and Northern Ireland and to Gibraltar:

[Same reservations, identical in essence, as those made by Denmark.]

II. In relation to Hong Kong:

1. (a) Without prejudice to paragraph (b) of this reservation, Article II of the Code of Conduct shall not be applied in conference trades, on a reciprocal basis, between Hong Kong and any State which has made a reservation disapplying Article II in respect of its trade with the United Kingdom.

(b) Point (a) above shall not affect the opportunity for participation as a third country shipping lines in such trades in accordance with the principles reflected in Article II of the Code, of the shipping lines of a developing country which are recognized as national shipping lines under the Code and which are:

  • (i) already members of a conference serving these trades; or
  • (ii) admitted to such a conference under Article I (3) of the Code.

2. In trades where Article II of the Code applies, Hong Kong shipping lines will, subject to reciprocity, allow participation in redistribution by lines from any country which has agreed to allow participation by United Kingdom lines in redistribution in respect of any of its trades.

3. Article III and Article XIV (9) of the Code shall not be applied in conference trades, on a reciprocal basis, between Hong Kong and any State which has made a reservation disapplying Article III and Article XIV (9) in respect of its trades with the United Kingdom.

4. In trades to which Article III of the Code applies, the last sentence of that article is interpreted as meaning that:

  • (i) the two groups of national shipping lines will co-ordinate their position before voting on matters concerning the trade between their two countries; and
  • (ii) this sentence applies solely to matters which the conference agreement identifies as requiring the assent of both groups of national shipping lines concerned, and not to all matters covered by the conference agreement.”

[Same declarations, identical in essence, as those made by Denmark.]

Declaration

On 10 June 1997 The United Kingdom of Great Britain and Northern Ireland made the following declaration:

In accordance with the Declaration of the Government of the People’s Republic of China and the United Kingdom of Great Britain and Northern Ireland on the question of Hong Kong signed on 19 December 1984, the People’s Republic of China will resume the exercise of sovereignty over Hong Kong with effect from 1 July 1997. Hong Kong will, with effect from that date, become a Special Administrative Region of the People’s Republic of China and will enjoy a high degree of autonomy, except in foreign and defence affairs which are the responsibility of the Central People’s Government of the People’s Republic of China.

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