With a view to settling maritime disputes through arbitration, it is
necessary to set up an arbitral body within a relevant social organization. It
is hereby decided as follows:

    1. There shall be established within the China Council for the Promotion
of Internatinnal Trade a Maritime Arbitration Commission (Note (1)) to settle:

    a. disputes over the remuneration for salvage services rendered by
sea-going vessles to each other or by a sea-going vessel to a river craft or
vice versa;

    b. disputes arising from collisions between sea-going vessels or between
see-going vessels and river craft or from damages caused by sea-going vessels
to harbour structures or installations;

    c. disputes arising from chartering sea-going vessels, agency services
rendered to sea-going vessels, carriage by sea in virtue of contracts of
affreightment, bills of lading or other shipping documents, as well as
disputes arising from marine insurance.

    2. The Maritime Arbitration Commission takes cognizance of maritime
disputes in accordance with the relevant contracts, agreements and/or other
documents concluded between the disputing parties either prior or subsequent
to the occurrence of disputes.

    The Maritime Arbitration Commission may endeavour to settle through
mediation any dispute of which it has taken cognizance.

    3. The Maritime Arbitration Commission shall be composed of 21-31 members
to be selected and appointed by the China Council for the Promotion of
International Trade for a term of two years from among persons having special
knowledge in navigation, sea transportation, foreign trade, insurance and law.

    4. The Maritime Arbitration Commission shall elect a Chairman and 1-3
Vice-Chairmen from among its members.

    5. When a dispute is submitted for arbitration, the disputing parties
shall each choose an arbitrator from among the members of the Maritime
Arbitration Commission. The arbitrators so chosen shall jointly select from
among the members of the Maritime Arbitration Commission a presiding
arbitrator to form, in association with the arbitrators, an Arbitration
Tribunal to act in a body. The disputing parties may also jointly choose from
among the members of the Maritime Arbitration Commission a sole arbitrator to
form by himself a Tribunal to act singly.

    The disputing parties shall choose the arbitrators within the time fixed
by the Maritime Arbitration Commission or agreed upon between the parties, and
the arbitrators so chosen shall also select the presiding arbitrator within
the time fixed by the Maritime Arbitration Commission. If one of the parties
fails to choose an arbitrator within the prescribed time limit, the Chairman
of the Maritime Arbitration Commission shall then, upon the request of the
other party, appoint the arbitrator for the former party. If the arbitrators
so chosen or appointed cannot agree upon the choice of the presiding
arbitrator within the prescribed time limit, the Chairman of the Maritime
Arbitration Commission shall then select a presiding arbitrator for them.

    6. Either of the parties in dispute may authorize the Maritime Arbitration
Commission to choose for him an arbitrator who shall, jointly with the
arbitrator chosen by the other party, select a presiding arbitrator to form,
in association with the arbitrators, an Arbitration Tribunal to act in a body.
If, by mutual agreement, both parties jointly delegate the choice of
arbitrators to the Maritime Arbitration Commission, the Chairman of the
Maritime Arbitration Commission, may appoint a sole arbitrator to form by
himself a Tribunal to act singly.

    7. The disputing parties may appoint attorneys to protect their interests
during the proceedings of a case before the Maritime Arbitration Commission.

   Such attorneys may be citizens of the People’s Republic of China or foreign
citizens.

    8. In cases within the cognizance of the Maritime Arbitration Commission,
the Chairman of the Maritime Arbitration Commission may make decisions in
respect of measures of security and determine the amount and form of the
security for the claim.

    Upon the request of one of the parties, the People’s Court of the People’s
Republic of China shall enforce the decision referred to in the preceding
paragraph in accordance with the law.

    9. The Maritime Arbitration Commission may collect an arbitration fee not
exceeding two per cent of the amount of the claim.

    10. The award handed down by the Maritime Arbitration Commission is final
and neither party shall bring an appeal for revision before a court of law or
any other organization.

    11. The award by the Maritime Arbitration Commission shall be executed by
the parties themselves within the time fixed by the award. In case an award is
not executed after the expiration of the fixed time, the People’s Court of the
People’s Republic of China shall, upon the request of one of the parties,
enforce it in accordance with the law.

    (1) Concerning the scope of cases to be taken cognizance of by the
Maritime Arbitration Commission, new provisions have been formulated by the
Notice of the General Office of the State Council which is issued on September
2, 1982. On June 21, 1988, the State Council renamed the Maritime Arbitration
Commission as the China Maritime Arbitration Commission, and agreed that the
rules of arbitration procedure shall be amended. – The Editor