(1) “Convention” means the Convention on the Settlement of Investment Disputes between States and Nationals ofOther States,sub- mitted to Governments by the Executive Directors of the International Bank for Reconstruction and Development on March 18,1965,which entered into force on October 14,1966.

(2) “Centre” means the International Centre for Settlement of Investment Disputes established pursuant to

Article 1

ofthe Convention.

(3) “Secretariat”means the Secretariat of the Centre.

(4) “Contracting State” means a State for which the Convention has entered into force.

(5) “Secretary-General”means the Secretary-General ofthe Centre or his deputy.

(6) “National of another State” means a person who is not, or whom the parties to the proceeding in question have agreed not to treat as,a national of the State party to that proceeding.

The Secretariat of the Centre is hereby authorized to administer, subject to and in accordance with these Rules, proceedings between a State (or a constituent subdivision or agency of a State) and a national of another State,falling within the following categories:

Since the proceedings envisaged by

Article 2

are outside the juris- diction ofthe Centre,none ofthe provisions ofthe Convention shall be applicable to them or to recommendations, awards, or reports which may be rendered therein.

(1) Any agreement providing for conciliation or arbitration pro- ceedings under the Additional Facility in respect of existing or future disputes requires the approval of the Secretary-General. The parties may apply for such approval at any time prior to the institution ofpro- ceedings by submitting to the Secretariat a copy of the agreement con- cluded or proposed to be concluded between them together with other relevant documentation and such additional information as the Secre- tariat may reasonably request.

(2) In the case of an application based on

Article 2(a)

, the Secre- tary-General shall give his approval only if (a) he is satisfied that the requirements of that provision are fulfilled at the time, and (b) both parties give their consent to the jurisdiction ofthe Centre under

Article 25 of the Convention

(in lieu of the Additional Facility) in the event that the jurisdictional requirements ratione personaeofthat Article shall have been met at the time when proceedings are instituted.

(3) In the case of an application based on

Article 2(b)

, the Secre- tary-General shall give his approval only if he is satisfied (a) that the requirements ofthat provision are fulfilled,and (b) that the underlying transaction has features which distinguish it from an ordinary com- mercial transaction.

(4) If in the case of an application based on

Article 2(b)

the juris- dictional requirements ratione personaeofArticle 25 ofthe Convention shall have been met and the Secretary-General is of the opinion that it is likely that a Conciliation Commission or Arbitral Tribunal,as the case may be,will hold that the dispute arises directly out of an investment, he may make his approval of the application conditional upon consent by both parties to submit any dispute in the first instance to the juris- diction of the Centre.

(5) The Secretary-General shall as soon as possible notify the par- ties whether he approves or disapproves the agreement of the parties. He may hold discussions with the parties or invite the parties to a meet- ing with the officials ofthe Secretariat either at the parties’request or at his own initiative.The Secretary-General shall,upon the request of the parties or any of them, keep confidential any or all information fur- nished to him by such parties or party in connection with the provi- sions of this Article.

(6) The Secretary-General shall record his approval ofan agreement pursuant to this Article together with the names and addresses of the parties in a register to be maintained at the Secretariat for that purpose.

The responsibilities of the Secretariat in operating the Additional Facility and the financial provisions regarding its operation shall be as those established by the Administrative and Financial Regulations of the Centre for conciliation and arbitration proceedings under the Con- vention. Accordingly, Regulations 14 through 16, 22 through 30 and 34(1) of the Administrative and Financial Regulations of the Centre shall apply, mutatis mutandis, in respect of fact-finding, conciliation and arbitration proceedings under the Additional Facility.

Fact-finding, conciliation and arbitration proceedings under the Additional Facility shall be conducted in accordance with the respective Fact-finding (Additional Facility), Conciliation (Additional Facility) and Arbitration (Additional Facility) Rules set forth in Schedules A,B and C.