}

CONFIDENTIAL

achieved in relation to the objectives of the Association;

and it enquires in the first instance into disputes over the

implementation or interpretation of the Convention. If it

fails to reach agreement upon an appropriate solution, the

parties can apply to the Arbitration Court.

17. Since the Council does not usually meet more than the

minimum of once a year, the Association Committee (which is

composed of officials, usually of Ambassadorial rank), also

established under the Convention, prepares the work of the

Council and assures continuity of cooperation.

18. The Association Council is required to submit an annual

report to the Parliamentary Conference of the Association,

composed of an equal number of parliamentarians from the

Associated States and members of the European Parliament,

served by a secretariat staffed on a parity basis. The

Conference may adopt resolutions on matters concerning the

Association, although these have no binding force.

19.

The function of the Arbitration Court which was set up

on a parity basis between the two sides, is to settle any

disputes over the interpretation of the application of the

Convention. The Court acts by a majority vote. Its decisions

are binding on the parties to the dispute. As yet no case has

been brought before the Court.

20.

Generally speaking the provisions governing the Association of Dependent Territories are identical with those governing

CONFIDENTIAL #

/countries

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