6. The objects to be exhibited from the Cairo Museum shall be furnished by the Government of the Arab Republic of Egypt, as a loan, solely for the purpose of the exhibitions. The Government of the United States, for its part, undertakes, consistent with the laws of the United States (a) to respect the rights of the Cairo Museum and the Government of the Arab Republic of Egypt in the objects to be exhibited and (b) to protect these objects against any form of sequestration, seizure, or any form of judicial process affecting the rights of the Cairo Museum or the Government of the Arab Republic of Egypt, whether on the part of another government or an individual or an organization. The law enforcement agencies in the United States will be responsible for taking appropriate measures for the physical security and protection of the objects, from the time of their arrival in the United States until the time of their departure from the United States under the Technical Agreement between the Brooklyn Museum and the Cairo Museum. It is understood, however, that the Government of the Arab Republic of Egypt will look exclusively to the insurance referred to in paragraph 8 below to satisfy any financial responsibility arising from loss or damage in connection with the exhibitions in the United States.

7. It is envisaged that the Government of the Arab Republic of Egypt shall not be charged by the Brooklyn Museum or the other participating museums with any expenses or have any financial obligations of any sort toward them in connection with the exhibitions. The Government of the Arab Republic of Egypt and the Cairo Museum shall not be subject to any customs duties, taxes, or other charges by the Government of the United States in connection with the entry or departure of objects in the exhibitions.

8. The Technical Agreement between the Cairo Museum and the Brooklyn Museum is expected to provide for the insurance of the objects from the time of departure of the objects from the Cairo Museum to the time of their arrival at the next agreed upon exhibition site outside the United States. Insurance is expected to be provided at no cost to the Government of the Arab Republic of Egypt or the Cairo Museum, and appropriate certification of such coverage is expected to be provided to the Government of the Arab Republic of Egypt by the Brooklyn Museum before removal of the objects from the Cairo Museum.

9. Further particulars relating to the holding of the exhibitions such as those relating to packing, unpacking and transport of the objects to be exhibited, the participation of representatives of the Cairo Museum, the production of any representation or copy of any of the objects to be exhibited, together with any other matters, may be the subject of provisions to be made between the Cairo Museum and the Brooklyn Museum.

TIAS 9351.

§1

Chapter 13

PEACEFUL SETTLEMENT OF DISPUTES

Negotiation; Inquiry; Conciliation; Mediation;
Good Offices

United Nations

Section 503 of the Foreign Relations Authorization Act, Fiscal Year 1978 (Public Law 95-105, August 15, 1977, 91 Stat. 844, 858), required the United States to make a major effort toward reform and restructuring of the United Nations system, to present a program for such reform to the United Nations Special Committee on the Charter of the United Nations and on the Strengthening of the Role of the Organization, and to report to the Speaker of the House of Representatives and to the Chairman of the Senate Committee on Foreign Relations upon recommendations by the United States for these purposes. The report submitted by President Carter included, under the heading "peace, security and international law," the establishment of more effective United Nations machinery for peaceful settlement of disputes with greater use of the International Court of Justice, and strengthening both the United Nations' peacekeeping capabilities and the Organization's role in disarmament.

The report observed that United Nations member states had been reluctant to submit disputes to third parties, despite existence of ample machinery for that purpose, and postulated that creation of additional machinery for arbitration, conciliation, or mediation was not likely to induce greater use of third party services. It outlined steps which the United States was, nevertheless, prepared to take, in order to promote greater use of existing procedures and mechanisms for peaceful settlement of disputes. Excerpts follow:

ESTABLISHING MORE EFFECTIVE U.N. MACHINERY FOR THE PEACEFUL SETTLEMENT OF DISPUTES

We shall examine with other member states, particularly the permanent members of the Security Council, opportunities for strengthening the role of the Security Council in the peaceful settlement of disputes. We will explore the possibilities for greater use of informal meetings or subcommittees of the Council for the purpose of following up on Council resolutions. As part of such effort we favor holding annual private meetings at the foreign minister

level for the purpose of reviewing the state of world peace and security in the light of reports prepared by the Secretary-General. We shall continue to treat the establishment of factfinding missions as a procedural matter not subject to veto, so long as mandates are clear and nonprejudicial. We are prepared to examine with the other permanent members of the Security Council the possibility of a formal, joint voluntary statement to this effect. In this connection, it will be our policy to use technology available to us from aircraft reconnaissance to share with the Council pertinent factual information when the parties to a dispute agree.

STRENGTHENING U.N. PEACEKEEPING CAPABILITIES

We believe that further efforts should be made to strengthen the United Nations peacekeeping capabilities, for example, by the creation of a U.N. Peacekeeping Reserve composed of national contingents trained in peacekeeping functions.

We are also prepared upon request from the Secretary-General to assist with the airlift of troops and equipment required for establishing a U.N. peacekeeping force authorized by the Security Council.

In order to be in a position to respond quickly to a request for assistance from the Secretary-General, I am proposing that the Department of Defense initiate whatever contingency planning may be necessary.

In order to make a U.N. Peacekeeping Reserve a more effective force, we shall explore with other U.N. members arrangements for the training of earmarked contingents as well as personnel of U.N. observer missions by the United Nations.

We shall examine with the United Nations ways to upgrade the technical equipment available to observer missions and peacekeeping forces and to enhance their observation and communications capabilities through modern technology.

We shall explore the possibility of establishing a Special Peacekeeping Fund to help cover the initial costs of peacekeeping operations authorized by the Security Council. The Fund might be in the order of $100 million, to be constituted over a reasonable period of time through such means as might be agreed upon.

Dept. of State, Reform and Restructuring of the U.N. System, Selected Docs. No. 8 (1978), pp. 7-8; Sen. Comm. Print, Proposals for United Nations Reform, 95th Cong., 2d sess. (1978), pp. 3-4.

The President's report was accompanied by a detailed analysis by the Secretary of State of specific issues of congressional concern set out in section 503 of Public Law 95-105, ante, together with the Department of State's recommendations for future courses of action. In regard to the subjects covered by the excerpts quoted, ante, the Secretary's report stated, in part:

ESTABLISHING MORE EFFECTIVE U.N. MACHINERY FOR THE PEACEFUL SETTLEMENT OF DISPUTES

Pursuant to Article 33 [of the Charter], a member state which is a party to a dispute, the continuance of which is likely to endanger the maintenance of peace and security, is called upon, as a matter of legal obligation, to seek a solution through the wide range of methods specified in the Article-negotiation, inquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means.

As has been the case with regard to most of its fields of activity, the United Nations has been called upon to perform its peaceful settlement functions under conditions vastly different from those envisaged when the Charter was drafted. In the years of its existence the organization has had to function in an unsettled, often divided, and even revolutionary world. It is not surprising-though disappointing that the record of the United Nations in peaceful settlement and accommodation has fallen short of the hopes originally entertained for it.

In fact, while states which are party to a dispute will often, although not always, engage in negotiations in an effort to seek a solution, resort by states to institutionalized third-party dispute settlement procedures is fairly rare. This state of affairs períodically generates initiatives for institutional reforms and proposals for new machinery and procedures. Although certain increases in efficiency and decreases in costs might well be possible in existing machinery for the peaceful settlement of disputes, it would seem most doubtful that such reforms or even the establishment of new institutions would by themselves persuade parties to a dispute to have more frequent recourse to third-party dispute settlement.

This is not to say that increased efficiency in existing machinery should not be sought. On the contrary, if the benefits are demonstrable, we are prepared to support appropriate reform. However, the establishment of entirely new machinery whose use would depend on the initiative of member states parties to a dispute would, at this time, probably have the effect of simply increasing the size and expense of international bureaucracies without adding significantly to the use made of available services for settlement of disputes.

The Permanent Court of Arbitration, for example, offers a variety of services readily available to states, including the publication of a current list of distinguished arbitrators whose assistance can be solicited at any time, either singly or in whatever combinations are acceptable to the parties concerned.

The 1975 Report of the Secretary-General to the General Assembly on Peaceful Settlement of International Disputes lists a number of institutions and procedures established under U.N. auspices, including the Revised General Act for the Pacific Settlement of International Disputes, the Panel for Inquiry and Conciliation, the Peace Observation Commission, and the Register of Experts for Fact Finding. These institutions and procedures have been little, if ever, utilized.