152 



21. What are your views of the American deep seabed 

 raining industry's actions and reactions in the latest round of 

 negotiations? 



— Have their suggestions and input been considered and 

 have they been constructive? 



A. We have endeavored to consider the views of all 

 interest groups in developing our approach to the Law of the 

 Sea negotiations. The ocean mining industry has been very 

 constructive in calling our attention to obstacles to invest- 

 ment in the present text and the proposed solutions. Some 

 of our difficulties with the present text, however, are much 

 broader than those of concern to any one affected group. The 

 precedents created by the treaty's institutional arrangements 

 and its political principles are of particular concern as 

 they may adversely affect our ability to protect our overall 

 national interests. 



22. A number of people representing the deep sea mining 

 industry appear to be troubled by the concept of the Enterprise 

 as the operating organ of the International Seabed authority. 

 They are convinced that only through competition will the 

 minerals of the seabed be made available to mankind in the 

 most economical and efficient manner and in abundance. To 

 them the consequences of the regulator being a competitor are 

 obvious, as they feel there is a natural tendency to favor 

 "your own", and an international bureaucracy like the one 

 envisioned by treaty negotiators would not be immune from 



such an inclination. In this connection, the current treaty 

 negotiating text calls for extensive privileges and immunities 

 for the Enterprise as against private parties. Is this kind 

 of competition in our national interest? 



A. The effect of the Enterprise and its advantages on 



the ability of U.S. companies to participate competitively in 



ocean mining is being analyzed in the review. At a minimum, 



