AGREEMENT BETWEEN AUSTRALIA AND THE REPUBLIC OF NAURU FOR THE SETTLEMENT OF THE CASE IN THE INTERNATIONAL COURT OF JUSTICE CONCERNING CERTAIN PHOSPHATE LANDS IN NAURU

(Nauru, 10 August 1993)

ENTRY INTO FORCE: 20 AUGUST 1993

AUSTRALIA AND THE REPUBLIC OFNAURU, 

WISHING to strengthen the existing friendly relations between the two countries, and 

WISHING to settle amicably the application brought by the Republic of Nauru against Australia in the International Court of Justice, 

HAVE AGREED as follows: 

Article 1

(1) Australia agrees that, in an effort to assist the Republic of Nauru in its preparations for its post-phosphate future, it shall pay the Republic of Nauru a cash settlement of one hundred and seven million dollars ($A107 million) as follows: 

(a) The sum of ten million dollars ($A10 million) on or before 31 August 1993. 

(b) The sum of thirty million dollars ($A30 million) as soon as it may lawfully be paid and not later than 31 December 1993. 

(c) The sum of seventeen million dollars ($A17 million) on 31 August 1994. 

(d) An amount of fifty million dollars ($A50 million) to be paid at an annual rate of $2.5 million dollars, maintained in real terms by reference to the Australian Bureau of Statistics' non-farm GDP deflator, for twenty years commencing in the financial year 1993-94. 

The above payments are made without prejudice to Australia's long-standing position that it bears no responsibility for the rehabilitation of the phosphate lands worked out before 1 July 1967. 

(2) At the end of the 20 year period referred to in paragraph (1)(d) the Republic of Nauru shall continue to receive development co-operation assistance from Australia at a mutually agreed level. 

Article 2

In consequence of the undertakings by Australia in Article 1, the parties agree that they shall take the action necessary to discontinue the present proceedings brought by the Republic of Nauru against Australia in the International Court of Justice. 

Article 3

The Republic of Nauru agrees that it shall make no claim whatsoever, whether in the International Court of Justice or otherwise, against all or any of Australia, the United Kingdom of Great Britain and Northern Ireland and New Zealand, their servants or agents arising out of or concerning the administration of Nauru during the period of the Mandate or Trusteeship or the termination of that administration, as well as any matter pertaining to phosphate mining, including matters pertaining to the British Phosphate Commissioners, their assets or the winding up thereof. 

Article 4

This Agreement shall enter into force on the date on which the parties have notified each other that the constitutional requirements of each party for the entry into force of this Agreement have been complied with. 

DONE in two originals at Nauru this 10th day of August 1993. 

FOR AUSTRALIA

[Signed:] 
(Paul Keating)
PRIME MINISTER
	FOR THE REPUBLIC OF NAURU

[Signed:] 
(Michael Somare)
PRESIDENT

MEMORANDUM OF UNDERSTANDING

This Memorandum, signed by the parties to the Agreement between Australia and the Republic of Nauru for the Settlement of the Case in the International Court of Justice concerning Certain Phosphate Lands in Nauru, records the understandings of the parties in relation to the following matters contained in the agreement: 

1. Concerning Article 1(1)(d): 

The amount of $50 million to be paid at an annual amount rate of $A2.5 million dollars for twenty years commencing in the financial year 1993-94 and maintained in real terms by reference to the Australian Bureau of Statistics' non-farm GDP deflator, will be paid in accordance with a Rehabilitation and Development Co-operation Agreement to be concluded between the two parties, the Republic of Nauru and Australia. It is understood that any dispute occurring between the parties in relation to this paragraph of the Agreement will be settled in the terms of a dispute settlement clause contained within the Rehabilitation and Development Co-operation Agreement. 

2. Concerning Article 2: 

Both parties agree that upon the entry into force of the Agreement pursuant to Article 4, the parties will jointly deliver a letter of discontinuance to the Registrar of the International Court of Justice in the following form: 

CERTAIN PHOSPHATE LANDS IN NAURU

(Nauru v Australia)

Your Excellency 

This is to notify the Court that in consequence of having reached a settlement, the Republic of Nauru and the Commonwealth of Australia pursuant to Article 88 of the Rules of Court have agreed to discontinue the proceedings in the case Certain Phosphate Lands in Nauru (Nauru v Australia). 

Please accept, Sir, the assurances of our highest consideration. 

Yours sincerely 

V.S. Mani Gavan Griffith 
Leo Keke 
Co-Agents Agent 

REPUBLIC OF NAURU COMMONWEALTH OF AUSTRALIA

This letter will be held in escrow until the Agreement comes into force. 

SIGNED in two originals, at Nauru on 10th August, 1993. 

FOR AUSTRALIA

[Signed:]
Paul Keating
PRIME MINISTER
	FOR THE REPUBLIC OF NAURU

[Signed:] 
Bernard Dowiyogo
PRESIDENT