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1. Opening address commemorating the successful conclusion

of the 1958 United Nations Conference on International Commercial
Arbitration ............................................................................................. 1
Kofi Annan, Secretary-General, United Nations

2. The making of the Convention .............................................................. 3

Pieter Sanders, Delegate at 1958 Conference; Honorary President,
International Council for Commercial Arbitration

C. From New York (1958) to Geneva (1961) - a veteran’s diary .............. 6

Ottoarndt Glossner, Delegate at 1958 Conference;
Honorary President, German Institution for Arbitration

II. The Value: three assessments ...................................................................... 8

Chaired by Tang Houzhi, Vice-Chairman, China International Economic
and Trade Arbitration Commission

A. Philosophy and objectives of the Convention ....................................... 8

Robert Briner, Chairman, International Court of Arbitration,
International Chamber of Commerce

B. The Convention’s contribution to the globalization of

international commercial arbitration ..................................................... 10
Fali Nariman, President, International Council for Commercial
Arbitration

C. Benefits of membership ......................................................................... 14

Emilio Cárdenas, Ambassador, Argentina

III. The Effect: Enforceability of arbitration agreements

and arbitral decisions ................................................................................... 16
Chaired by Haya Sheika Al Khalifa, Attorney, Bahrain

A. New developments on written form ...................................................... 16

Neil Kaplan, Chairman, Hong Kong International Arbitration Centre

B. Third parties and the arbitration agreement .......................................... 18

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1. Opening address commemorating the successful conclusion of the 1958 United
Nations Conference on International Commercial Arbitration

KOFI ANNAN
Secretary-General of the United Nations

It gives me pleasure to welcome you to this special meeting of the United Nations
Commission on International Trade Law (UNCITRAL) devoted to the New York Convention.

On this day 40 years ago, a diplomatic conference convened by the United Nations in New
York concluded the Convention on the Recognition and Enforcement of Foreign Arbitral
Awards. Today's meeting marks that anniversary and offers an opportunity to review our
experience with the Convention, to take stock of current issues in the field and to consider our
future work.

We are honoured that leading arbitration practitioners and experts are here today to share
with us their views. I would like to welcome two distinguished experts who participated in the
drafting of the Convention as government delegates: Professor Pieter Sanders, of the
Netherlands, and Dr. Ottoarndt Glossner, of the Federal Republic of Germany.

I am also happy to greet Mr. Fali Nariman, President of the International Council for
Commercial Arbitration (ICCA), as well as his colleagues on the Council. The ICCA has
championed the cause of international commercial arbitration for some 35 years, contributing
greatly to the work of UNCITRAL.

Also joining us today are representatives of the International Court of Arbitration of the
International Chamber of Commerce (ICC) in Paris, headed by its Chairman, Dr. Robert Briner.
Indeed, the Symposium today would be incomplete without the ICC, for it was an initiative of
the ICC itself that prompted the United Nations in 1953 to prepare an international treaty on
arbitral awards.

The ICC has become an even closer partner of the United Nations in recent months, as part
of my efforts to enhance ties with the private sector. The ICC understands that business has a
compelling interest in the United Nations work for peace and development, in our technical
standard-setting and in our efforts to harmonize and modernize the rules of international trade.
That is why, earlier this year, the United Nations and ICC issued a statement pledging to work
jointly to expand economic opportunities worldwide and to promote investment in selected least
developed countries.

UNCITRAL, for its part, has a strong tradition of obtaining input from the private sector. In
UNCITRAL's early years, arbitration was not accepted in all parts of the world as an alternative
to the judicial settlement of international commercial disputes. Rather, the practice was often
ignored or approached with reservation or suspicion, which in turn became a hindrance to the

1
development of international trade. The work of UNCITRAL, drawing in part on the expertise of
the private sector, has helped dispel such doubts. Today, international commercial arbitration has
a new prominence.

It is my hope that such cooperation will continue. The participation of the private sector is
essential: not only during the preparation of texts dealing with the needs of the global business
community, but also once they have been finalized. I would like to take this opportunity to
encourage private sector organizations to be much more active in promoting the legislative
consideration and enactment of such texts.

Let me turn now to the subject of today's discussions, the New York Convention. This
landmark instrument has many virtues. It has nourished respect for binding commitments,
whether they have been entered into by private parties or governments. It has inspired confidence
in the rule of law. And it has helped ensure fair treatment when disputes arise over contractual
rights and obligations. As you know, international trade thrives on the rule of law: without it
parties are often reluctant to enter into cross-border commercial transactions or make
international investments.

For all these reasons, the Convention is one of the most successful treaties in the area of
commercial law, adhered to by 117 States, including the major trading nations. It has served as a
model for many subsequent international legislative texts on arbitration. And it proved to the
world, as early as the 1950s, that the United Nations could be a constructive, leading force in
matters affecting relations among States and among commercial actors on the world scene.

Still, a number of States are yet to become parties to the Convention. As a result, entities
investing or doing business in those States lack the legal certainty afforded by the Convention,
and businesses cannot be confident that commercial obligations can be enforced. This increases
the level of risk, meaning that additional security may be required, that negotiations are likely to
be more complex and protracted, and that transaction costs will rise. Such risks can adversely
affect international trade.

So while we proudly commemorate the Convention and reaffirm our commitment to its
tenets, we must also acknowledge that the ultimate goal of the United Nations with regard to the
Convention has not yet been achieved. There is a need to promote the Convention so that the
gaps in its membership are filled. I hope that this New York Convention Day will be successful
in persuading governments that have not yet joined the Convention to do so as soon as possible.

The General Assembly declared the period 1990 to 1999 to be the "United Nations Decade
of International Law": a decade in which to make a special effort to advance the development
and codification of international law; and in which to raise public awareness about the role of
international law in our daily lives.

This gathering is a significant contribution to the Decade.

You have gathered to reaffirm the commitment of the international community to the New
York Convention, but also to international law as one of the main pillars of the United Nations
global mission. And you have gathered during a remarkable year: a year in which we also mark
the fiftieth anniversary of the Universal Declaration of Human Rights and of the Genocide

2
Convention, and in which efforts to establish an international criminal court are ever so close to
fruition.

In that spirit of progress, but without minimizing the tough work ahead, I offer you my best
wishes for a productive discussion and a pleasant stay at the United Nations Headquarters.

B. The making of the Convention

PIETER SANDERS
Delegate at the 1958 Conference; Honorary President, International Council for Commercial
Arbitration

Celebrating 40 years of the New York Convention 1958 brings us back to its origin. In
1953 the International Chamber of Commerce (ICC) produced a first draft. Therefore the ICC
also has an anniversary, celebrating today the 45th anniversary of its draft. The ICC draft was
presented to the United Nations Economic and Social Council (ECOSOC). It was a draft
Convention on the Recognition and Enforcement of International Arbitral Awards. This notion of
an international arbitral award was at the time too progressive a concept. ECOSOC changed it
into a draft for a Convention for the Recognition and Enforcement of Foreign Arbitral Awards. It
was this ECOSOC draft of 1955 which was submitted to the International Conference which
lasted three weeks from Tuesday, 20 May to Tuesday, 10 June 1958 and was held at the United
Nations Headquarters in New York. The Conference was chaired by the Dutch Permanent
Representative at the United Nations, Willem Schürmann. Oscar Schachter functioned as
Executive Secretary.

At the time of the New York Conference I was 45 years old. Today 40 years later, many of
the delegates at that Conference are no longer with us, but their names are still alive among all of
us who are involved in international arbitration. Some of these names I may mention in this
historical review of the birth of the Convention: Professor Matteucci, who together with
Professor Minoli represented Italy, Professor Holleaux from France, Professor Bülow from
Germany, Professor Wortley from England, Professor Pointet from Switzerland and Mr. Haight
on behalf of the ICC, to mention only a few names.

My review of the Convention’s history will deal in particular with what, during the
Conference, was called the “Dutch proposal”. It was conceived during the first week-end of the
Conference. I spent that week-end at the house of my father-in-law in a suburb of New York. I
can still see myself sitting in the garden with my small portable type-writer on my knees. It was
there, sitting in the sun, that the "Dutch proposal" was conceived. Upon return to New York on
Monday, 26 May, this draft was presented to the Conference.

At the meeting of Tuesday, 27 May, this proposal was welcomed by many of the delegates.
The meeting decided that the Dutch proposal would be the basis for further discussions. I will not
go into details of these discussions and the amendments made. I will only mention that the
Conference, initially, preferred not to deal in the Convention with the arbitration agreement, as
the Dutch proposal did. Preference was first given to a separate Protocol, as we knew from the
Geneva Protocol on Arbitration Clauses (Geneva, 1923) (the 1923 Geneva Protocol).

3
Nevertheless, at a very late stage of the Conference, a provision on the arbitration agreement was
inserted in the Convention, the present article II.

Was the Dutch proposal really, as Professor Matteucci called it, "a very bold innovation"?
At the time, I regarded it rather as a logical follow-up of the Geneva Convention on the
Execution of Foreign Arbitral Awards (Geneva, 1927) (the 1927 Geneva Convention), taking
into account the experience gained since then in the increased use of arbitration for the solution
of international business disputes.

The main elements of the "Dutch proposal" were, first of all, the elimination of the double
exequatur, one in the country where the award was made and another one in the country of
enforcement of the award. Under the 1927 Geneva Convention we always requested both. It is
logical to require an exequatur only in the country where enforcement of the award is sought and
not also in the country where the award was made, but no enforcement is sought. Another
element of the proposal was to restrict the grounds for refusal of recognition and enforcement as
much as possible and to switch the burden of proof of the existence of one or more of these
grounds to the party against whom the enforcement was sought. This again stands to reason.

However, nothing is perfect in this world. After 40 years of practice with the Convention
its text could certainly be improved. For example, one could consider the introduction of uniform
rules for the procedure of enforcement. In this respect, the Convention only contains the
requirement that the award and arbitration agreement shall be supplied to the court (article IV)
and that no more onerous conditions or higher fees should be imposed than when enforcement of
a domestic award is sought (article III).

For the rest, the procedure is left to national arbitration law. There does not exist a central
jurisdiction for the enforcement of New York Convention awards as in recent years has been
suggested by several authors. At the Conference of 1958 this idea was not even discussed.

I do not propose an amendment of the Convention. It seems rather unrealistic that a

consensus may be reached by the 117 States. Neither would I recommend an additional Protocol
which some of these States might be willing to agree upon. This would create a situation of two
categories of New York Convention States.

Rather, I would recommend relying on harmonisation of the Convention’s application and

interpretation on those issues on which the Convention falls back on national arbitration law. I
refer, in particular, to the fifth ground for refusal of enforcement contained in article V(1): the
award has been set aside in the country where the award was made under the arbitration law of
that country. Falling back on national arbitration laws apparently cannot be avoided. In my
Lectures for the Hague Academy in 1975, I compared international arbitration with a young bird.
It rises in the air, but from time to time it falls back on its nest. In my opinion this still applies
today.

Harmonisation of national arbitration law is indeed taking place. In particular,

harmonisation has gained momentum since the appearance in 1985 of UNCITRAL's Model Law
on International Commercial Arbitration (the Model Law), now adopted by some 28 States, of
which some 10 did so for domestic arbitration as well. The Model Law virtually repeats the
grounds of article V of the Convention, not only for enforcement (article 36) but also for setting

4
aside (article 34). We did not foresee this effect of the Convention in 1958.

Harmonisation of the application and interpretation of the Convention can also be furthered
by the publication of court decisions on the Convention. As the Convention became more and
more widely adhered to and court decisions started to appear, it became apparent that a
compilation of national court decisions on the Convention would be useful. Such a publication
would reveal different interpretations and, by making them public, might lead to some
harmonisation. In addition, publication of these national court decisions might also be useful for
the choice of the place of arbitration in an international arbitration.

In 1976, I was present at the United Nations again, this time as consultant to UNCITRAL
for the drafting of its today well known UNCITRAL Arbitration Rules. I approached the United
Nations asking whether they would be prepared to start such a publication. A publication of
Court decisions on the Convention, although not replacing a central jurisdiction, would be at
least a kind of alternative. However, this was not envisaged.

This was one of the reasons, maybe even the main reason, why in 1976 I started on behalf
of ICCA with the Yearbooks of ICCA. By now, in the 22 Volumes that have appeared since
1976, 728 court decisions on the Convention, coming from 42 countries, have been published in
extract form. Times have changed. Today the United Nations may be complimented for its recent
initiative to publish CLOUT, an abbreviation of Case Law on UNCITRAL Texts, including, inter
alia, its Model Law. Harmonisation of court decisions on the Convention is also envisaged in
the well known Treatise of Van den Berg, originally a dissertation at my University, the Erasmus
University of Rotterdam. The full title of this work is The New York Arbitration Convention of
1958. Towards a Uniform Judicial Interpretation. A second edition will soon appear and I expect
it will reveal that indeed some harmonisation has been achieved.

It is time to conclude my introduction on the birth of the New York Convention. I recalled
some memories of the Conference of 1958 and added some views on the future which, in my
opinion, lies in harmonisation. Looking back on 40 years, the Convention has been a great
success and, as a whole, works satisfactorily. The business world is grateful to the United
Nations for having provided it with this instrument in a world where arbitration is more and more
resorted to for the solution of international commercial disputes. To end in a language, once
common to all civilised nations: Vivat, Floreat et Crescat New York Convention 1958.

C. From New York (1958) to Geneva (1961) - a veteran’s diary

OTTOARNDT GLOSSNER
Delegate at 1958 Conference
Honorary President, German Institution for Arbitration

I wish to focus on the human factor, on those involved in the Conventions.

Lord Tangley (Sir Edwin Herbert), a world renowned English solicitor and my immediate
predecessor as president of the International Chamber of Commerce (ICC) Commission on
International Arbitration, and Frédéric Eisemann, Secretary General of the ICC Court of
Arbitration and Secretary of the ICC Commission, both were members of the ICC delegation in
New York.

5
 In the aftermath of the war, Frédéric Eisemann had recognized early on that the League of
Nations’ Protocol on Arbitration Clauses and the Convention on the Execution of Foreign
Arbitral Awards, both of Geneva of the 1920s, did not sufficiently free international arbitration
of the legal strings. As a man of vision he requested a denationalized, international arbitration
award, but finally accepted with grace that the world was not ready to go beyond the concept of a
foreign arbitration award.

Today, 40 years later, in the age of the borderless internet, the world is challenged again to
accept a denationalized arbitration award.

Ambassador Schurmann, as the elected chairman of the conference, had to shoulder the
Herculean task, after five years of preparation, of presenting for signature a Convention within
three weeks by orchestrating some 50 delegations, most of them diplomats accredited to the
United Nations like himself and not particularly conversant in matters of arbitration on the one
side and a very small group of highly sophisticated experts of arbitration on the other. He was at
his best when he had to curtail delegates’ rhetoric, which he did often, but gently, as if he were
conferring a decoration.

Ambassador Schurmann combined his skills of a brilliant diplomat with the comprehensive
knowledge of an outstanding expert and fellow-countryman, Pieter Sanders who, well-known for
his Cartesian shrewdness of mind, experienced in the practice of an all-round jurist and
arbitrator, became his ideal partner. They handled the agenda with pragmatism and
unspectacularly with considerable success.

Mario Matteucci, director of the League of Nations Institute for the Unification of Private
Law in Rome and an academic of highest international standing, had teamed up with Eugenio
Minoli, an all-round legal wizard and one-time adviser to the Holy See, who opened new
horizons for a modern approach to arbitration in Italy by way of legislation and jurisdiction.

Benjamin Wortley, Professor of Commercial Law and Niel Pearson, a legal practitioner of
sorts, both domiciled in Manchester, England, were known for their immense efficiency in
formulating the most curiously sounding proposals into palatable English. On a more personal
vein, I shall never forget when Ben Wortley, at the beginning of a morning session, after a long
night’s debate, claimed to feel somewhat dull in his head, yet presented immediately thereafter a
brilliant solution to the problem that had arisen the day before.

Conseiller d’Etat Georges Holleaux, a French academic in the best sense of the word, the
very picture of the elegant Senior French Legal Officer, who was joined by René Arnaud, a true
product of one of the French elite schools, a practitioner-economist, and the co-founder of the
ICC in 1918, were the most appropriately chosen delegates to take the responsibility for an
impeccable French version of the Convention. They were both partisans for a renouveau in
France in international arbitration which later, through their efforts and those of Jean Robert,
materialized in legislation and jurisdiction.

Arthur Bülow, the authority on the law of civil procedure in the Federal Ministry of Justice
in Bonn and later its Permanent Secretary, had requested me to become a member of the German
delegation to New York as representative of the Federation of German Industries. This turned

6
out to be a perfect match between legislator and legal practice. Although not always agreeing on
the detail, we worked together happily on the grand scale in the long days and, in view of the
time constraints, sometimes long into the night.

Martin Domke, Vice-President of the American Arbitration Association, conversant in the

legal world on both sides of the Atlantic, had to face the United States reluctance to accept
international arbitration. It was he who familiarized American trade and commerce with the
practice of international arbitration, so much so that in the end the US Government ratified the
Convention relatively early, in 1970 and opened thereby the gates for legislation and jurisdiction
in international arbitration in the United States. Martin and I had a special relationship as he - in
his young days - was assistant professor to Ernst Heymann, my wife’s grandfather.

His Excellency, the Very Reverend Monsignor James Griffith, who represented the Holy
See, was seated next to the German delegation. He was a shining example of the multicultural
virtues of the Vatican. In his clerical garb as a high officer of the Church, a lean figure of a Pio
Dodicesimo stature, he sought and received from the German delegation, in a good neighbourly
way, occasional advice by silent consent or congenial nods on matters of principle and
formulation. At the end of the negotiations, he assured us that the Convention, as a means of
bringing peace into the world of trade and commerce, would be ratified by the Vatican however
late, which happened en effet in 1975.

Simultaneous with the initiative of ECOSOC in New York, Frédéric Eisemann had seized
the Economic Commission for Europe (ECE) in Geneva to begin work for a European
Convention on International Arbitration in order to overcome the virtual speechlessness
throughout a sharply divided Europe - between the European Union in statu nascendi and the
Soviet block. After 10 June, 1958 the Governments decided to go on with the Geneva
negotiations to directly address details of arbitration procedure. With the winds of the Cold War
blowing in the European theatre, an atmosphere of mutual distrust lay heavily upon the
negotiations, which led, at certain stages, to a virtual standstill in the activities of the delegations.
It was then the unforgettable achievement of Lazare Kopelmanas, Secretary of the Conference,
to steer the negotiations into quiet waters by reaching for what was feasible in the circumstances.
The situation produced some curious results, such as the nomination of arbitrators in a
“Nominating Committee”, an East-West revolving body, which I had the honour to preside over
for 30 years. Immediately after the signature of the Geneva Convention in 1961, the Western
European Nations hastily convened a Conference in Paris in 1962 which, under the “Paris
Agreement”, retracted part of the nominating mechanism.

Nonetheless, the Conventions, in particular the New York Convention, in these years
became a solid vehicle for international arbitration throughout the world. Virtually all delegates
through the long negotiations, notwithstanding their differences, moved from mutual respect to
friendly and long-lasting relationships. A splendid proof is the birth of the International Council
for Commercial Arbitration (ICCA).

In referring to some of the people involved, I intended to praise them all, up to the last
office hand, for their extraordinary performance in working towards the achievement of this
Convention, which in its kind turned out to become a success story of our times.

***

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12
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13
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17
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18
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27
e tS
a n i c
r i o f
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t d i o e G u s
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t h d o v i
t p l n
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a f
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t k f
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l
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t o l
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t t cnv p wC w e l s h a
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i n see
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s
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28
yed s i l
o d h .
t s
t r
u e eemno i a a l r I C n m o m i
h a i
t
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r ,
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e
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e m r l f. h p o men r p

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o
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p e o f g es
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e ,
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s s s l efa g i t
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u
t e r m s h ed
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h w Toi o w i
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c b
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tpo v m r u c t e dd
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d e e s t T s t
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g e a dec
n m a ,
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s C n o l
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s o h
t i i
nraw hd

29
tm
a e h a I e h
t T c t e w e S u
t Cci o i
r n y h w
h k t e . sn v a n d d r l u U r r p e e a a n
wsI s
a f h d i n o,
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a a i m t e p h
t m n yew r i t
f
fn
o n s b f u d C u p
p h h s c
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r h
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f r f k x e b v
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nm
o a w e t a d a h ,c
r o o o
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l o e v s n e w
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i i s s
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r sec t a l v o
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c r
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k l o h
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c HTh n
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36
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42
i t n
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t
d a i h h c n e n l i x

I respectfully submit that with these measures the Convention will remain a success during
Draft a Model Law on the enforcement of foreign awards outside the Convention as
Draft a Model Law on implementing the Convention with respect to the procedure
n s t w T0 t i
t i v t
n o
i o
l o c
r e
t
u e
l n S .1 er
d dwe e s
i a f
i e
yta o
c n e i ae t
s v d n m d
e
t
i y the o
i l s
t o
t h
s o
h i
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s
n c o t c
i u i
l e r
p a m e
u i n T n t
r o n b ,
) .
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s (
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p h n o s
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a l e I c r t f d n s
p t yi
e o Cio wre l
l V y
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r o t n n t
s w v C
a v r u r
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b a me c n r r a n e
p a

contemplated by article VII(1) of the Convention.

h a r o f r r
o m s l m w oer s e e
t o
c nl
a o h
t
eh u fal f e e a c d m n c l Cn
c
n t s s
d o r n otr
t a
t e u
l n
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a e i d
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r wiz t h
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l a o en a t s
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t e dTf
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e
r a i
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e aco aha o
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i v i fe ,c sto
h n a i f e n ;n i

for enforcement of convention awards;

s w c a r t i t r o t n r o d n
u a r
t o n mUs u t a
n o o . o r e u o o i
t

43
o
i e nbi f
n d r
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i s i
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the next 40 years.

D. Considering the advisability of preparing an additional Convention, complementary to

the New York Convention

WERNER MELIS
Chairman, Presiding Council
International Arbitration Court, Austrian Economic Chamber

The New York Convention reflects the realities of international arbitration of the 1950s. It
is still a surprisingly modern instrument. I fully join the previous speakers who have expressed
the opinion that the Convention should not be amended. It is still up-to-date and is applied
world-wide. An amendment would do nothing more than create confusion.

However, the world of international arbitration has changed since the creation of the
Convention. I should think that it would be useful to envisage, therefore, an additional
convention complementary to the Convention which would deal with issues which have arisen in
the practice of international arbitration during the last 40 years.

The following issues, inter alia, deserve consideration.

The means of communication have drastically changed in the last 40 years. The definition
of “agreement in writing” in article II(1) of the Convention was already out of fashion a few
years later, as reflected in article I(2)(a) of the European Convention on International
Commercial Arbitration (Geneva, 1961). However, article 7 of the UNCITRAL Model Law
contains a definition which is still up-to-date and satisfactory. Therefore, it would be advisable to
provide in the new convention a definition of “agreement in writing” on the basis of an extensive
interpretation of the definition in the Model Law and in any case make it clear that the term “in
writing” covers all means of communication which can be evidenced by text, as in article 178 of
the Swiss Private International Law, 1987.

Secondly, the Convention deals only with the recognition and enforcement of awards, that
is, final and binding decisions. This definition does not cover, for instance, settlement
agreements, although many arbitral proceedings are terminated by settlements. In order to
overcome this difficulty, some arbitration rules of arbitration centres, like article 20 of the Rules
of Arbitration and Conciliation of the International Arbitration Centre of the Austrian Federal
Economic Chamber (Vienna Rules), provide that the parties can require that an award be issued
concerning the content of any settlement reached between them. The new convention could
contain a similar provision or simply provide that settlements fall into the same category as
awards.

Also, a series of international arbitral centres have provisions in their institutional rules
similar to article 26 of the UNCITRAL Arbitration Rules, which gives arbitrators the right to
order interim measures of protection. The problem is that only very few jurisdictions will
enforce such interim measures ordered by a tribunal within the limits of their jurisdiction. This
means that, even in these countries, interim measures ordered against parties having their place
of business outside their jurisdiction would not be enforced by a State court.

44
 I follow Mr. Veeder’s view that the new convention should contain a provision that the
courts of the contracting parties would enforce interim measures ordered by a tribunal sitting in
the territory of a contracting party.

As Mr. Paulsson has correctly pointed out, the Convention deals exclusively with the
enforcement of foreign arbitral awards and not with the grounds for the setting aside of an award
in the country where it had been made. This has sometimes led to surprising annulments. It
would be desirable, therefore, to give judges the power to disregard minor violations of
procedure which have no bearing on the award in enforcement proceedings. Also here, the
Model Law offers a good solution in article 34, which lists and therefore limits the grounds for
the setting aside of an award.

As long as the above-mentioned problem continues to exist, namely that arbitral awards are
set aside in the country where they have been made on merely local grounds which are
inconsistent with internationally recognized legal reference standards, the question arises
whether such awards which have been set aside will be enforced in third countries. There are
now a few cases where courts have enforced arbitral awards which have been annulled by a court
in the country where they have been made.

Here again, it would be useful to have in the new convention a provision which gives the
courts the right to enforce arbitral awards that have been annulled in another country under
specific conditions, such as is contained in article IX of the European Convention on
International Commercial Arbitration.

As an administrator of international arbitrations, I am always surprised to see how many

arbitration clauses are pathological, to an extent that there is a great risk that a court might
consider them invalid. In my experience, almost 50% of the clauses submitted before our Centre
are to a certain degree defective. As it is probably an impossible task to persuade the parties to
write clean arbitration clauses, the new convention should contain solutions which remedy this
problem.

Here, again the European Convention on International Commercial Arbitration contains a

useful provision. Article V, for instance, provides that a party which intends to raise a plea as to
an arbitrator’s jurisdiction shall do so not later than the delivery of its statement of claim or
defence relating to the substance of the dispute. A provision similar to this would be useful for
the new convention.

Additionally, article IV of the European Convention on International Commercial

Arbitration contains useful provisions to remedy defective arbitration clauses. It is possible for a
party wishing to begin arbitral proceedings to make their application to the President of the
Competent Chamber of Commerce or a Special Committee to “establish directly or by reference
to the rules and statutes of a permanent arbitral institution the rules of procedure to be followed
by the arbitrator(s) [...]” (article IV(4)(d)).

The President of the Competent Chamber of Commerce or a Special Committee may

determine an arbitral institution when the parties have agreed to submit their disputes to a
permanent arbitral institution without pre-determining the institution (article IV(5)), or to refer

45
the parties, when the parties have not specified the mode of arbitration in their arbitration
agreement (institutional or ad hoc), to a permanent arbitral institution or to request the parties to
appoint their arbitrators.

The President of the Austrian Federal Economic Chamber, in his capacity of President of
the Competent Chamber of Commerce, has received in Vienna a series of applications under this
article and has been able to remedy pathological clauses under article IV.

The European Convention on International Commercial Arbitration has a typical East/West

arbitration background. I think, however, that it would be very useful to have similar provisions
adapted for world-wide use in the new convention.

In the course of preparing and drafting a new complementary convention to the New York
Convention, additional issues may present themselves. Of course, the new convention should be
flexible enough to adopt those changes as needed. The most important thing to keep in mind,
however, is that the work should begin as quickly as possible at UNCITRAL.

E. Possible issues for an annex to the UNCITRAL Model Law

GAVAN GRIFFITH
Attorney; former Solicitor-General, Australia

Those of us who signed off the text of the Model Law adopted at Vienna on 21 June, 1985
appreciated that it was premised upon the principles of party and of State autonomy. We
accepted the capacity of the parties otherwise to agree. And, as a model law, each enacting State
was to be free to adapt and modify its terms. Further, the Model Law was never intended to
stand as a code. Rather it was to operate within the framework of applicable domestic laws,
which we expected would support, and even enhance, the substantive operation of the Model
Law.
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.

In the 13 years since the adoption of the Model Law some States have chosen to enact it
verbatim, sometimes augmented by mandatory or optional provisions. Some States have had
difficulty in accepting that the interests of commonality of approach justified the abandonment of
their domestic laws applicable to international arbitration. Some States have gone to the other
extreme, and enacted the Model Law as their domestic, as well as international, commercial
arbitration regimes. In the context of its own success, we may now admit that our Model Law
usefully may be revisited by the Commission. The issue is how to enhance, and to make more
effective, its purpose of providing a truly international model law for international arbitration.
The aim must be one of "improvement". So long as supplementary articles are complementary to
the basic text, the advantage of a model law over a convention is that additional optional articles
are as capable of being carried into domestic law by those States who already have applied the

46
Model Law as those who have yet to pick it up. Hence, the mechanism of Model Law usefully
avoids the chaos of successive treaty regimes, as, for example, is the case with the competing
terms of the Hague, the Hague Visby and the Hamburg Rules. As to the subject of further
articles and subjects for inclusion in an Annex, there are some obvious issues for consideration,
some foreseen in 1985, and some identified since.

Arbitrability and Parties

Although Lord Mustill recently repeated his 1985 position that UNCITRAL does not have
power to deal with arbitrability, it is suggested that there is scope for the Model Law to address
this issue. It may be useful to define further the matters which, subject to the public policy of
domestic law, may be arbitrated, for example, disputes involving matters falling in the area of
anti-trust or restraint of trade, or matters pertaining to intellectual property.

For the moment, the Model Law is silent as to the identity of parties. There should be
scope for further definition of who may be parties to an international arbitration. For example,
non-government organizations (NGOs) are specifically embraced by the recently promulgated
Rules of the Permanent Court of Arbitration, which themselves were based on the Model Law.

Definition of arbitration agreement

UNCITRAL may now more clearly be said to have been unduly cautious in requiring
signed or written exchanges for a valid submission. With the wisdom of hindsight, the
Commission itself should have been ready to follow the suggestions by its present Secretary,
made in 1985, in anticipation of the development of more fluid mechanisms for the completion
of agreements, including terms for arbitration. Various State laws might be used as a source for
broader definitions of what constitutes an agreement. There is a strong case for a more
expansive definition of agreement in writing. Indeed, for consideration whether writing should
always be required. The practices of electronic commerce should be directly and usefully
embraced.

Confidentiality
d
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47
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48
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