Treaties & Conventions

Eritrea - Yemen Arbitration

Documents

AWARD
Phase I: Territorial Sovereignty and Scope of Dispute

CHAPTER I - The Setting up of the Arbitration and the Arguments of the Parties

Introduction

1. This Award is rendered pursuant to an Arbitration Agreement dated 3 October 1996 (the "Arbitration Agreement"), between the Government of the State of Eritrea ("Eritrea") and the Government of the Republic of Yemen ("Yemen") (hereinafter "the Parties").

2. The Arbitration Agreement was preceded by an "Agreement on Principles" done at Paris on 21 May 1996, which was signed by Eritrea and Yemen and witnessed by the Governments of the French Republic, the Federal Democratic Republic of Ethiopia, and the Arab Republic of Egypt. The Parties renounced recourse to force against each other, and undertook to "settle their dispute on questions of territorial sovereignty and of delimitation of maritime boundaries peacefully". They agreed, to that end, to establish an agreement instituting an arbitral tribunal. The Agreement on Principles further provided that

. . . concerning questions of territorial sovereignty, the Tribunal shall decide in accordance with the principles, rules and practices of international law applicable to the matter, and on the basis, in particular, of historic titles.

3. Concurrently with the Agreement on Principles, the Parties issued a brief Joint Statement, emphasizing their desire to settle the dispute, and "to allow the re-establishment and development of a trustful and lasting cooperation between the two countries", contributing to the stability and peace of the region.

4. In conformity with Article 1.1 of the Arbitration Agreement, Eritrea appointed as arbitrators Judge Stephen M. Schwebel and Judge Rosalyn Higgins, and Yemen appointed Dr. Ahmed Sadek El-Kosheri and Mr. Keith Highet. By an exchange of letters dated 30 and 31 December 1996, the Parties agreed to recommend the appointment of Professor Sir Robert Y. Jennings as President of the Arbitral Tribunal (hereinafter the "Tribunal"). The four arbitrators met in London on 14 January 1997, and appointed Sir Robert Y. Jennings President of the Tribunal.

5. Having been duly constituted, the Tribunal held its first meeting on 14 January 1997, at Essex Court Chambers, 24 Lincoln's Inn Fields, London WC1, UK. The Tribunal took note of the meeting of the four arbitrators, and ratified and approved the actions authorized and undertaken thereat. Pursuant to Article 7.2 of the Arbitration Agreement, the Tribunal appointed as Registrar Mr. P.J.H. Jonkman, Secretary-General of the Permanent Court of Arbitration (the "PCA") at The Hague and, as Secretary to the Tribunal, Ms. Bette E. Shifman, First Secretary of the PCA, and fixed the location of the Tribunal's registry at the International Bureau of the PCA.

6. The Tribunal then held a meeting with Mr. Gary Born, Co-Agent of Eritrea, and Mr. Rodman Bundy, Co-Agent of Yemen, at which it notified them of the formation of the Tribunal and discussed with them certain practical matters relating to the arbitration proceedings.

7. Article 2 of the Arbitration Agreement provides that:

1. The Tribunal is requested to provide rulings in accordance with international law, in two stages.

2. The first stage shall result in an award on territorial sovereignty and on the definition of the scope of the dispute between Eritrea and Yemen. The Tribunal shall decide territorial sovereignty in accordance with the principles, rules and practices of international law applicable to the matter, and on the basis, in particular, of historic titles. The Tribunal shall decide on the definition of the scope of the dispute on the basis of the respective positions of the two Parties.

3. The second stage shall result in an award delimiting maritime boundaries. The Tribunal shall decide taking into account the opinion that it will have formed on questions of territorial sovereignty, the United Nations Convention on the Law of the Sea, and any other pertinent factor.

8. Pursuant to the time table set forth in the Arbitration Agreement for the various stages of the arbitration, the Parties submitted their written Memorials concerning territorial sovereignty and the scope of the dispute simultaneously on 1 September 1997 and their Counter-Memorials on 1 December 1997. In accordance with the requirement of Article 7.1 of the Arbitration Agreement that "the Tribunal shall sit in London", the oral proceedings in the first stage of the arbitration were held in London, in the Durbar Conference Room of the Foreign and Commonwealth Office, from 26 January through 6 February 1998, within the time limits for oral proceedings set forth in the Arbitration Agreement. The order of the Parties' presentations was determined by drawing lots, with Eritrea beginning the oral proceedings.

9. At the end of its session of 6 February 1998, the Tribunal, in accordance with Article 8.3 of the Arbitration Agreement, closed the oral phase of the first stage of the arbitration proceedings between Eritrea and Yemen. The closing of the oral proceedings was subject to the undertaking of both Parties to answer in writing, by 23 February 1998, certain questions put to them by the Tribunal at the end of the hearings, including a question concerning the existence of agreements for petroleum exploration and exploitation. It was also subject to the proviso in Article 8.3 of the Arbitration Agreement authorizing the Tribunal to request the Parties' written views on the elucidation of any aspect of the matters before the Tribunal.

10. In its Communication and Order No. 3 of 10 May 1998, the Tribunal invoked this provision, requesting the Parties to provide, by 8 June 1998, written observations on the legal considerations raised by their responses to the Tribunal's earlier questions concerning concessions for petroleum exploration and exploitation and, in particular, on how the petroleum agreements and activities authorized by them might be relevant to the award on territorial sovereignty. The Tribunal further invited the Parties to agree to hold a short oral hearing for the elucidation of these issues.

11. Following the exchange of the Parties' written observations, the Tribunal held oral hearings on this matter at the Foreign and Commonwealth Office in London on 6, 7 and 8 July 1998. By agreement of the Parties, Yemen presented its arguments first. In the course of these hearings, the Tribunal posed a series of questions concerning the interpretation of concession evidence, and the Parties were requested to respond thereto in writing within seven days of the end of the oral hearings. On 17 July 1998, both Parties submitted their written responses to the Tribunal's questions. Eritrea indicated at that time that it anticipated a brief delay in submission of the documentary appendix accompanying its submission; this documentary appendix was received by the International Bureau of the PCA on 22 July 1998. On 30 July 1998, the International Bureau received from Yemen a submission entitled "Yemen's Comments on the Documents Introduced by Eritrea after the Final Oral Argument". Eritrea objected to this late filing by Yemen.

12. In the course of the supplementary hearings in July 1998, the Tribunal informed the Parties of its intention to contact the Secretary-General of the Arab League, in order to ascertain the existence, and obtain copies, of any official Arab League reports of visits to any of the islands in dispute, particularly in the 1970s. A letter on behalf of the Tribunal was sent by fax to the Secretary-General of the Arab League on 20 July. His response, dated 28 July, was transmitted by the registry to the Co-Agents and the Members of the Tribunal.

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Arguments of the Parties on Territorial Sovereignty

13. Eritrea bases its claim to territorial sovereignty over these "Red Sea Islands" (hereinafter the "Islands")(1) on a chain of title extending over more than 100 years, and on international law principles of "effective occupation". Eritrea asserts that it inherited title to the Islands in 1993, when the State of Eritrea became legally independent from the State of Ethiopia. Ethiopia had in turn inherited its title from Italy, despite a period of British military occupation of Eritrea as a whole during the Second World War. The Italian title is claimed then to have vested in the State of Ethiopia in 1952-53, as a consequence of Eritrea's federation with, and subsequent annexation by, Ethiopia.

14. Eritrea traces this chain of title through the relevant historical periods, beginning with the Italian colonization of the Eritrean mainland in the latter part of the 19th Century. The parties do not dispute that, prior to Italian colonization, the Ottoman empire was the unchallenged sovereign over both coasts of the Red Sea and over the Islands. Bypassing the Ottomans and dealing directly with local rulers, Italy established outposts in furtherance of its maritime, colonial and commercial interests. Despite Ottoman objections, it proclaimed the Italian colony of Eritrea in 1890. Eritrea contends that in 1892 Great Britain recognized Italian title to the Mohabbakah islands, a group of islands proximate to the Eritrean coast.

15. Eritrea asserts that, without challenging Ottoman sovereignty, Italy also maintained an active presence in other southern Red Sea islands at that time. Italian naval vessels patrolled the surrounding waters in search of pirates, slave traders and arms smugglers, and the colonial administration allegedly issued concessions for commercial exploitation on the Islands. According to Eritrea, there was no Yemeni claim to or presence on or around the Islands during this time. The Imam Yahya, who ultimately founded modern Yemen, occupied a highland region known as the Gebel, and, according to Eritrea, openly acknowledged his lack of sovereignty over the coastal lowlands known as the Tihama. This territorial arrangement was confirmed by the 1911 "Treaty of Da'an", an understanding between the Imam and the Ottoman Empire.

16. Eritrea asserts that the weakening of the Ottoman Empire in the years immediately preceding the First World War fuelled Italian plans to occupy an island group known as the "Zuqar-Hanish Islands". These plans were preempted by a brief period of British military occupation in 1915, which was short-lived and, according to Eritrea, without legal consequences. At the end of the War, Italy purportedly renewed and expanded its commercial and regulatory activities with respect to what Eritrea refers to as the "Zuqar-Hanish and lighthouse islands". These activities are cited by Eritrea as evidence of Italy's intent to acquire sovereignty over the Islands.

17. The question of sovereignty over the Islands formed part of the post-First World War peace process that culminated in the signature of the Treaty of Lausanne in 1923. While certain former territory of the defeated Ottoman empire was divided among local rulers who had supported the victorious Allies, Eritrea contends that none of the Arabian Peninsula leaders who had supported the Allies was in sufficient geographical proximity to the Islands to be considered a plausible recipient. The Imam of Sanaa was not a plausible recipient of the Islands, both because of his alliance with the Ottoman Turks, and because his sovereignty did not extend to the Red Sea coast. Eritrea cites Great Britain's rejection of claims made by the Imam in 1917-1918 to parts of the Tihama, and relies on the Imam 's characterization of these territories as having been "under the sway of his predecessors" as acknowledging that the Imam indeed lacked possession and control at that time.

18. Eritrea traces Great Britain's failure to persuade the remaining Allies to transfer the Islands to Arab rulers selected by Great Britain, or to Great Britain itself, through the unratified 1920 Treaty of Sèvres and the negotiations leading up to the conclusion of the Treaty of Lausanne in 1923. Eritrea relies on Articles 6 and 16 of the Treaty of Lausanne as having left the islands open for Italian occupation. Article 6 established the general rule that, in terms of the Treaty, "islands and islets lying within three miles of the coast are included within the frontier of the coastal State." Eritrea interprets this provision, and subsequent state practice under the treaty of Lausanne, as withholding the islands in question from any Arabian peninsula leader, because none of the Islands are within three miles of the Arabian coast. Eritrea further argues that the Imam could not have been given the disputed islands pursuant to Article 6, because his realm was neither a "state" nor "coastal" at the time the Treaty of Lausanne was signed.

19. Article 16 of the Treaty of Lausanne contained an express Turkish renunciation of all rights and title to former Ottoman territories and islands, and provided that their future was to be "settled by the parties concerned." Eritrea argues that because Article 16 did not transfer the Islands to any particular state, and did not specify any particular procedure for conveying ownership of the Islands, their ultimate disposition was left to general international law standards for territorial acquisition - conquest, effective occupation, and location within the territorial sea. Eritrea claims to find further support for this in subsequent state practice interpreting Article 16.

20. Eritrea asserts that by the end of the 1920s, Italy had acquired sovereignty over the disputed islands by effective occupation, and that neither the 1927 conversations between Great Britain and Italy, which came to be known as the "Rome Conversations", nor the aborted 1929 Lighthouse Convention were contra-indications. This effective occupation consisted, inter alia, of the construction in 1929 of a lighthouse on South West Haycock Island, which Eritrea claims led Great Britain to repeat acknowledgments of Italian sovereignty over the Mohabbakahs, previously made in 1892 and 1917. Eritrea finds further support for effective Italian occupation during this period in the dispatch of an expedition to the Zuqar-Hanish islands and their subsequent occupation by Italian troops. Eritrea asserts that in the period 1930-1940 Italy exercised sovereign rights over the Islands through the colonial government in Eritrea. Eritrea cites, inter alia, the granting of fishing licenses with respect to the surrounding waters, the granting of a license for the construction of a fish processing plant on Greater Hanish, and the reconstruction and maintenance of an abandoned British lighthouse on Centre Peak Island. These satisfy, in Eritrea's view, the corpus occupandi requirement of effective occupation and, accompanied as they were by the requisite sovereign intent (animus occupandi), constitute the acquisition of sovereignty by effective occupation.

21. Eritrea further asserts that Yemen did not protest or question Italy's activities on the Islands during this time. Great Britain, however, sought assurances that Italian activities did not constitute a claim of sovereignty. Eritrea characterizes Italy's responses that the question of sovereignty was "in abeyance" or "in reserve" as a refusal to give such assurances. According to Eritrea, this formula was understood by both Italy and Great Britain as preserving Italy's legal rights while allowing Great Britain to withhold diplomatic recognition of those rights. Tensions between the two states on this and other matters led to conclusion of the 1938 Anglo-Italian Agreement, which Eritrea claims is probative of Italian and British views at that time. It is said to reflect, among other things, the parties' understanding that the Islands were not appurtenant to the Arabian Peninsula, and that Italy and Great Britain were the only two powers with a cognizable interest in them.

22. The 1938 Anglo-Italian Agreement also contained an express undertaking on the part of both Italy and Great Britain with respect to the former Ottoman Red Sea islands, that neither would "establish its sovereignty" or "erect fortifications or defences". This constituted, in Eritrea's view, not a relinquishment of existing rights, but simply a covenant regarding future conduct. Eritrea argues that, at the time of the Anglo-Italian Agreement, Italy's sovereignty over the Islands had already been established as a matter of law, and it remained unaffected by the agreement. Eritrea further asserts that in December of 1938, Italy formally confirmed its existing territorial sovereignty over the Islands by promulgating decree number 1446 of 1938, specifically confirming that the Islands had been, and continued to be, part of the territory of the Eritrean Commissariato of Dankalia.

23. Eritrea characterizes the eleven-year British occupation of Eritrea that commenced in 1941 in the wake of the Second World War as congruent with the law of belligerent occupation. Eritrea's territorial boundaries remained unchanged, and the territory of "all Italian colonies and dependencies" surrendered to the Allies in the 1943 Armistice "indisputably included", in Eritrea's view, the Islands. The 1947 Treaty of Peace provided for disposition of Italy' s African territories by the Allied Powers, which was accomplished in 1952 by the transfer to Ethiopia, with which Eritrea was then federated, of "all former Italian territorial possessions in Eritrea". This marked, in Eritrea's view, the passing to Ethiopia of sovereign title to the Islands.

24. Eritrea claims that the drafting history of the 1952 Eritrean Constitution confirms the inclusion of the disputed islands within the definition of Eritrean territory. This is, according to Eritrea, the only plausible interpretation of the phrase "Eritrea, including the islands" in the definition of the territory of Eritrea, and it is said to be supported by advice given to Ethiopia at the time by its legal adviser, John Spencer. Eritrea claims that this was further reinforced by similar language in subsequent constitutional and legislative provisions, in particular, the 1952 Imperial Decree federating Eritrea into the Ethiopian Empire, and the 1955 Ethiopian Constitution.

25. Another basis for Ethiopian sovereignty put forward by Eritrea is the inclusion of the Islands within Ethiopia's territorial sea. Eritrea relies on the rule of international customary and conventional law that every island is entitled to its own territorial sea, measured in accordance with the same principles as those applicable to the mainland. In Eritrea's view, a chain of islands linked to the mainland with gaps no wider than twelve miles falls entirely within the coastal state's territorial sea and therefore under its territorial sovereignty. Thus, measuring from the Mohabbakah islands, which Eritrea asserts were indisputably Ethiopian, Ethiopia's 1953 declaration of a 12-mile territorial sea encompassed the Zuqar-Hanish islands.

26. The 35-year period between 1953 and Eritrean independence in 1991 is characterized by Eritrea as one of extensive exercise of Ethiopian sovereignty over the Islands. This allegedly included continuous, unchallenged naval patrols, which became increasingly systematic as the Eritrean Liberation Movement gathered strength. In addition, following transfer of the administration of the lighthouses to Asmara by the British Board of Trade in 1967, Ethiopia is said to have further consolidated its sovereignty by requiring foreign workers on the lighthouse islands to carry passports and similar documents, overseeing and regulating the dispatch of all provisions to the lighthouse islands, being involved in all employment decisions affecting lighthouse workers, approving all inspection and repair visits to the lighthouse islands, and tightly controlling radio transmissions to and from the lighthouse islands. Other alleged acts of Ethiopian sovereignty put forward by Eritrea include the exercise of criminal jurisdiction over acts committed on the Islands, regulation of oil exploration activities on and around the Islands, and an inspection by then President Mengistu and a group of high-ranking Ethiopian military and naval personnel during the late 1980s, for which Eritrea has submitted videotape evidence.

27. Eritrea claims that throughout the 1970s the two Yemeni states and their regional allies acknowledged Ethiopian control over the Islands by their statements and actions. It alleges that, until the early 1970s, neither North Yemen nor South Yemen had displayed any interest in the Islands. Regional interest in the Islands is said to have been sparked by false reports of an Israeli presence there in 1973. According to Eritrea, the presumption on the part of Yemen, its neighbouring states and the Arab media that Ethiopia had leased the Islands to Israel constituted an acknowledgment of Ethiopian sovereignty. In support, Eritrea claims that the Arab states not only condemned Ethiopia for having made Ethiopian islands available to Israel, but also looked ultimately to Ethiopia for permission to visit the Islands in order to investigate the allegations of Israeli military activity.

28. Eritrea contends that the final years before Eritrean independence were marked by aerial surveillance and continuous naval patrols by Ethiopian forces.

29. Eritrea claims that, after winning its independence in 1991, it acquired sovereign title to the Islands and exercised sovereign authority over them. Eritrea asserts that, as they have been throughout recent history, Eritrean fishermen are dependent upon the Islands for their livelihood. Eritrean administrative regulations are said strictly to control fishing around the Islands, prescribing licensing and other requirements for fishing in the surrounding waters. Eritrea further contends that its vessels police foreign fishing vessels in Eritrean territorial waters, and routinely patrol the waters around the Islands in order to enforce fishing regulations, seizing vessels that fail to comply. It asserts that Yemen did not maintain any official presence in the Islands, and that it was only in 1995 that Eritrean naval patrols discovered a small Yemeni military and civilian contingent purportedly engaged in work on a tourist resort on Greater Hanish Island. This led, in December 1995, to hostilities that ended with Eritrean forces occupying Greater Hanish Island, and Yemeni forces occupying Zuqar.

30. With respect to territorial sovereignty, Eritrea seeks from the Tribunal an award declaring "that Eritrea possesses territorial sovereignty over each of the "islands, rocks and low-tide elevations" specified by Eritrea in its written pleadings, "as to which Yemen claims sovereignty."

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31. Yemen, in turn, bases its claim to the Islands on "original, historic, or traditional Yemeni title". Yemen puts particular emphasis on the stipulation in Article 2.2 of the Arbitration Agreement, that "[t]he Tribunal shall decide territorial sovereignty in accordance with the principles, rules and practices of international law applicable to the matter, and on the basis, in particular, of historic titles." This title can, according to Yemen, be traced to the Bilad el-Yemen, or realm of Yemen, which is said to have existed as early as the 6th Century AD. Yemen advances, in support of this claim, map evidence,(2) declarations by the Imam of Yemen, and what it refers to as "the attitude of third States over a long period".

32. Yemen contends that its incorporation into the Ottoman Empire, from 1538 to circa 1635, and again from 1872 to the Ottoman defeat in 1918, did not deprive it of historic title to its territory. Yemen asserts that the creation of the Ottoman vilayet of Yemen as a separate territorial and administrative unit constituted Ottoman recognition of Yemen's separate identity. It relies on the work of 17th, 18th and 19th Century cartographers who allegedly depicted Yemen as a separate, identifiable territorial entity. Further map evidence is adduced in support of Yemen's contention that the Islands form part of that territory.

33. In further support of its assertions that Yemen maintained historic title to the Islands, Yemen retraces the drafting history of its 1934 Treaty with Great Britain, citing several exchanges of correspondence in which the Imam insisted, in one form or another, on his rights to the "Islands of the Yemen". Yemen cites Great Britain's rejection of the Imam's proposal to attach to the treaty a secret appendix concerning the Islands, on the grounds that the Islands, as former Ottoman possessions, were to be dealt with pursuant to Article 16 of the Treaty of Lausanne.

34. Yemen argues that this did not constitute a denial of traditional Yemeni title, and puts forward documents that it claims support the characterization of British official opinion in the period 1933 to 1937 as being reluctant to challenge Yemeni title. Yemen further contends that the Treaty of Lausanne had no effect on Yemeni title, because Yemen was not a party to the Treaty, and because Turkey's renunciation of rights could not prejudice the interests of third parties. Yemen takes the view that the effect of Article 16 was not to make the Islands terra nullius, but rather, territory "the title to which was undetermined." Yemen argues in addition that Article 16 has, in any event, ceased to have effect between "the parties concerned", because of their own conduct, and that of third states, in recognizing, or failing to make reservations concerning, Yemen's sovereignty in respect of the Islands.

35. Another ground put forward in support of Yemen's claim that its original title extends to the Islands is "the principle of natural or geographical unity". Yemen argues that this doctrine is a corollary of the concept of traditional title, and that it operates in conjunction with evidence of the exercise of acts of jurisdiction or manifestations of state sovereignty. Yemen cites case law of the International Court of Justice and arbitral decisions in support of the premise that once the sovereignty of an entity or natural unity as a whole has been shown to exist, it may be deemed, in the absence of any evidence to the contrary, to extend to all parts of that entity or unity. According to Yemen, there is a "concordance of expert opinion evidence on the character of the islands as an entity or natural unity", including British admiralty charts, the Red Sea and Gulf of Aden Pilot, produced by the United Kingdom Hydrographic Office, and the Encyclopedia Britannica.

36. Yemen relies on various categories of evidence of sovereignty, which it asserts may serve to confirm and supplement the evidence of traditional or historic title, as well as constituting independent sources of title. These include economic and social links between the Islands and the Yemeni mainland, the exercise of sovereignty in the form of acts of jurisdiction, recognition of Yemen's title by third states, and confirmation of Yemeni title by expert opinion evidence.

37. Yemen cites case law and commentary in support of its contention that, within the appropriate geographical context, the private activities of individual persons constitute relevant evidence of historic title to territory. Yemen's analysis of these facts and activities begins with the names "Hanish" and "Zuqar," which, it asserts, have Arabic roots. Yemen also notes the presence on the Yemeni coast of inhabitants with names derived from the word "Hanish", and a family history, as fishermen, intertwined with that of the Islands. Yemen points out that, during the disturbances of 1995, two members of such a family were taken prisoner by Eritrean forces while fishing near Greater Hanish Island. Yemen also alleges the existence of anchorages and settlements on the Islands bearing distinctly Yemeni Arabic names. Yemen claims that, for generations, Yemeni fishermen have enjoyed virtually exclusive use of the Islands, even establishing, in contrast to Eritrean fishermen, permanent and semi-permanent residence there.

38. Yemen further asserts that the Islands are home to a number of Yemeni holy sites and shrines, including the tombs of several venerated holy men. It points to a shrine used primarily by fishermen, who have developed a tradition of leaving unused provisions in the tomb to sustain their fellow fishermen.

39. In addition, Yemen points out that the Islands fall within the jurisdiction of a traditional system of resolving disputes between fishermen, in which a kind of arbitrator may "ride the circuit" along the coast and among the Islands, in order to insure access to justice for those fishermen who are unable to travel.

40. Yemen emphasizes the economic links between the Islands and the Yemeni fishermen who rely for their livelihood on them and their surrounding waters, and who sell their catch almost exclusively on the Yemeni mainland. Yemen contrasts this with the situation of the Eritrean fishermen, pointing out that, because of the difficulty of hygienic transport of fish to the interior of Eritrea (including the capital of Asmara), Eritrea lacks a fish-eating tradition. According to Yemen, most Eritrean fishermen find a better market for their wares on the Yemeni coast. Yemen asserts that for centuries, the long-standing, intensive and virtually exclusive use of the Islands by Yemeni fishermen did not meet with interference from other states.

41. Yemen provides an historical review of alleged Yemeni acts of administration and control, which are said to supplement and confirm Yemen's historic title to the Islands, as well as forming independent, mutually reinforcing sources of that title. The earliest of these acts, a mission sent to Jabal Zuqar by the King of Yemen in 1429 to investigate smuggling, predates Ottoman rule. In the Ottoman period, Yemen asserts that the Islands were considered part of the vilayet of Yemen, and that the Ottoman administration handled, inter alia, tax, security, and maritime matters relating to the Islands. Yemen cites an 1881 lighthouse concession by the Ottoman authorities to a private French company, for the construction of lighthouses throughout the empire, which included some of the islands in the vilayet of Yemen. Yemen also cites 19th Century Ottoman maps and annual reports, which place the Islands within the vilayet of Yemen.

42. Yemen emphasizes that the post-Ottoman British presence on the Islands was intermittent, and that Great Britain never claimed sovereignty over them. Following establishment of the Yemen Arab Republic in 1962, its Government allegedly asserted legislative jurisdiction over the Islands on at least two occasions. Yemen claims that its navy conducted exercises on and around the Islands, and that its armed forces played a key role in confirming the absence of Israeli troops on the Islands in 1973. In Yemen's rendition of the events surrounding the 1973 incident, the Islands are consistently characterized as Yemeni, rather than Ethiopian.

43. Yemen cites a number of examples of the issuance of licenses to foreign entities wishing to engage in scientific, tourist and commercial activities in and around the Islands, and of the granting of permits for anchorage. Yemen presents evidence concerning the authorization given to a German company by the Yemeni Ministry of Culture and Tourism and the Yemen General Investment Authority in 1995 for the construction of a luxury hotel and diving centre on Greater Hanish Island. Yemen further asserts that it exercised jurisdiction over the Islands in respect of fishing, environmental protection, the installation and maintenance of geodetic stations, and the construction and administration of lighthouses, including the publication of relevant Notices to Mariners. Yemen has placed in evidence elaborate chronological surveys, covering a variety of time periods, of alleged Yemeni activities "in and around the Hanish Group".

44. Yemen contends that from 1887 to 1989, at least six states confirmed, by their conduct or otherwise, Yemen's title to the Islands. Yemen points out that upon conclusion of the Anglo-Italian Agreement of 1938, which Eritrea characterizes as being limited to future conduct, the Italian Government informed the Imam of Yemen that, pursuant to the agreement, Italy had undertaken not to extend its sovereignty on or to fortify the "Hanish Island group," and that it had, in the negotiations, "kept in mind . . . above all Yemen's interests". Yemen claims to find further acknowledgment of Yemeni rights in British practice and "internal thinking," as reflected in Foreign Office and Colonial Office documents of the 1930s and 1940s. French recognition of Yemeni title is said to include a request for permission to conduct military manoeuvres in the Southern Red Sea in 1975, and for a French oceanographic vessel to conduct activities near the Islands in 1976.

45. Yemen attributes similar evidentiary value to German conduct and publications, and to official maps published by the United States Army and Central Intelligence Agency, as recently as 1993. Yemen offers evidence of what it terms "revealing changes in Ethiopian cartography" in support of its contention that Ethiopia did not claim title to the Islands. It relies particularly on Ethiopian maps from 1978, 1982, 1984 and 1985, on which all or some of the Islands appear, by their colouring, to be allocated to Yemen.

46. Yemen also puts forward cartographic evidence on which it relies as official and unofficial expert evidence of Yemeni title to the Islands. Such evidence serves, according to Yemen, as proof of geographical facts and the state of geographical knowledge at a particular period. Yemen supplements this cartographic evidence with the published works of historians and other professionals.

47. Yemen gives an historical review of this evidence, beginning with 17th and 18th Century maps depicting the independent Bilad el-Yemen. Yemen asserts that while some 18th Century maps fail to depict the Islands accurately, the more accurate of these attribute them to Yemen. Yemen places great emphasis on writings and maps reflecting the first-hand impressions of Carsten Niebuhr, a Danish scientist and explorer who visited the Red Sea coast from 1761-1764. Niebuhr's works suggest political affiliation and other links between the Islands and the Yemeni mainland.

48. Yemen further submits in evidence a large number of 19th and 20th Century maps, of varied origin, the colouring of which appears to attribute all or some of the Islands to Yemen. At the same time, it did not deny that certain Yemeni maps attribute the Islands to Ethiopia or Eritrea; or at least not to Yemen.

49. In addition to proffering cartographic and other evidence in support of its assertions of historic title to the Islands, Yemen argues that, until the events of December 1995, Ethiopian and Eritrean conduct was consistent with Yemeni sovereignty. Yemen alleges that as recently as November 1995, Eritrea acknowledged in an official communique to the President of Yemen that the Islands had " . . . been ignored and abandoned for many years since colonial times, including the eras of Haile Selassie and Mengistu, and during the long war of liberation."

50. Yemen insists that, during the Ottoman period, the Islands were consistently administered as part of the vilayet of Yemen, and that title never passed to Italy during the period of Italian colonization of the Eritrean mainland. Yemen cites several occasions on which, in its view, Italy had declined to claim sovereignty. These include exchanges between the British and Italian Governments in the late 1920s and 1930s and culminated in the 1938 Anglo-Italian Agreement which amounts, in Yemen's view, to a definitive agreement by both parties not to establish sovereignty over islands with respect to which Turkey had renounced sovereignty by Article 16 of the Treaty of Lausanne. Yemen interprets Italian decree number 1446 of December 20, 1938 not as a confirmation of existing territorial sovereignty but rather as a mere "internal decree providing for the administration of the islands to be undertaken from the Assab department of Eritrea."

51. Yemen argues further that the phrase "the territory of Eritrea including the islands" in the 1952 UN-drafted Eritrean Constitution does not refer to the disputed islands, because the official Report of the United Nations Commission for Eritrea, prepared in 1950, indicates Yemeni title to the Islands, by depicting them in the same colour as the Yemeni mainland on UN maps accompanying the Report. Yemen contests all Eritrean allegations of Ethiopian acts of sovereignty or administration, and asserts that Ethiopian conduct, particularly its publication of official maps on which the Islands were the same colour as the Yemeni mainland, constituted recognition of Yemeni sovereignty over the Islands.

52. According to Yemen, while Yemeni fishermen historically fished around the Islands and used them for temporary residence, Yemen exercised a wide array of state activities on and around them. These activities are alleged to have included, during the 1970s, the consideration of requests by foreign nationals to carry out marine and scientific research on the islands, periodic visits of Yemeni military officials to Greater Hanish and Jabal Zuqar, and related patrols on and around these islands. Yemen also claims to have protested the conduct of low-level military flights by France over the Hanish islands, as well as Ethiopia's arrest of Yemeni fishermen in the vicinity of the Islands, and further asserts that it investigated a number of lost or damaged foreign vessels around Greater Hanish and Jabal Zuqar.

53. With respect to the 1980s and 1990s, Yemen alleges that various Yemeni air force and naval reconnaissance missions were conducted over and around the Islands. Yemen also asserts that it granted licenses allowing nationals of third states to visit the certain islands for scientific purposes and tourism, and that some of these visitors were accompanied by Yemeni officials. In 1988, Yemen is said to have embarked on a project to upgrade and build a series of lighthouses, accompanied by Notices to Mariners, on Centre Peak Island, Jabal al-Tayr, Lesser Hanish Island, Abu Ali, Jabal Zuqar and Greater Hanish Island. Yemen also claims to have erected geodetic stations on Greater Hanish and Jabal Zuqar and authorized construction of a landing strip on Greater Hanish, which was used frequently in the early 1990s. Yemen also contends that, during this period, it continued its patrols of the islands, arresting foreign fishermen and confiscating vessels found operating in waters around the islands without a Yemeni license.

54. With respect to territorial sovereignty, Yemen seeks from the Tribunal an award declaring "that the Republic of Yemen possesses territorial sovereignty over all of the islands comprising the Hanish Group of islands . . . as defined in chapters 2 and 5 of Yemen's Memorial."

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Arguments of the Parties on the Relevance of Petroleum Agreements and Activities

55. In response to specific questions from the Tribunal, which were dealt with in supplemental written pleadings, at resumed oral hearings in July 1998, and in post- hearing written submissions, both Parties have presented evidence of offshore concession activity in the Red Sea. Yemen contends that its record of granting offshore concessions over the last fifty years reinforces and complements a consistent pattern of evidence indicating Yemeni title to the islands. As the granting of oil concessions serves to confirm and maintain an existing Yemeni title, rather than furnishing evidence of effective occupation, it need not, in Yemen's view, be supported by evidence of express claims. This is said to be congruent with Yemen's assertions of historic title.

56. In evidence of what it terms "longstanding and peaceful administration of its petroleum resources" on and around the Islands, Yemen has submitted agreements and maps concerning concession blocks granted or offered since 1974. One of these concession blocks (Tomen) encompasses some of the Islands, in this case, the "Hanish Group", while another (Adair) is bounded by a line that cuts through Greater Hanish. Yemen further relies on a 1991 hydrocarbon study of the Red Sea and Gulf of Eden regions carried out by the United Nations Development Program (UNDP) and the World Bank. As this study enjoyed the participation of the governments concerned, particularly Ethiopia and successive Yemeni governments, Yemen relies on it as a useful overview of petroleum activities undertaken by the two states from the early 1950s.

57. Yemen relies on both case law (in particular the Eastern Greenland case(3)) and scholarly writing in support of its assertion that the granting of exploration permits and concessions constitutes evidence of title, addressing such evidentiary categories as: the attitude of the grantor state, its grant and regulation of the operation of the concession, ancillary government-approved operations, and the attitude of the concessionaire and of international agencies. In addition, Yemen derives from the absence of protests evidence of Ethiopian and Eritrean acquiescence.

58. Yemen invokes the presumption that a state granting an oil concession does so in respect of areas over which it has title or sovereign rights. The activity of offering and granting concessions with respect to blocks that encompass or approach the Islands constitutes, in Yemen's view, a clear manifestation of Yemeni sovereignty over the Islands. Yemen cites, in addition, express reservations, in the relevant agreements, of Yemeni title to the concession areas. In addition to demonstrating Yemen's attitude regarding title, the granting of these economic concessions to private companies is said to constitute evidence of the exercise of sovereignty in respect of the territory concerned. Yemen finds additional evidence of the exercise of sovereignty in Yemen's monitoring and regulation of the operations undertaken by the various concessionaires and the granting of permits for ancillary operations such as seismic reconnaissance.

59. Yemen further argues that a company will not enter into a concession with a state for the development of petroleum resources unless it is persuaded that the area covered by the concession, and the underlying resources, in fact belong to that state. Furthermore, the reservations of Yemeni title in the concession agreements submitted by Yemen are said to constitute express recognition by the concessionaires of Yemeni title to the blocks concerned. The UNDP/World Bank study constitutes, in Yemen's view, recognition of Yemeni title by these international agencies, as well as expert evidence to the same effect.

60. Yemen also proffers the UNDP/World Bank study as evidence of Ethiopian acquiescence. Because the study was prepared in collaboration with, and ultimately distributed to, all concerned governments, Ethiopia can, in Yemen's view, be held to have had notice of the existence and scope of Yemeni concessions implicating the Islands, without issuing any protests. Yemen relies further on other maps and reports published in the professional petroleum literature, of which it asserts Ethiopia and Eritrea should have been aware.

61. Finally, Yemen asserts that Ethiopian and Eritrean petroleum activities did not encompass or touch upon the Islands, and therefore provide no support for a claim of sovereignty. Despite this, Yemen alleges that it consistently made timely protests with respect to those Ethiopian concessions that, in Yemen's view, encroached in any manner upon its territorial sea, continental shelf and exclusive economic zone.

62. Eritrea, in turn, proffers evidence of offshore petroleum activities, conducted primarily by Ethiopia, at a time at which, it alleges, "Ethiopia's title was already established". Eritrea cites oil-exploration related activities "on the islands" as confirming Ethiopia's pre-existing claim to sovereignty, which could not, in its view, be divested by Yemen's unilateral grants of offshore mineral concessions. Eritrea also argues that, in the absence of any physical manifestation of control either on islands or in their territorial waters, the mere granting of concessions by Yemen would not suffice to establish title through effective occupation, "even if the islands had been previously unowned."@

63. According to Eritrea, the concession evidence put forward by Yemen is irrelevant, because it represents unilateral attempts by Yemen to establish permanent rights to the seabed, in violation of customary international law and the United Nations Convention on the Law of the Sea (the "Law of the Sea Convention"). Yemen's concession agreements are further said to be irrelevant because they were entered into only after the present dispute arose, were not accompanied by Yemeni government activities, and did not pertain to the territory in dispute. Eritrea also questions the factual accuracy of Yemen's allegations concerning concession agreements, pointing to Yemen's failure to submit in evidence copies of certain of these agreements.

64. Eritrea argues that, under both the Law of the Sea Convention and customary international law, mineral rights to the seabed can neither be acquired nor lost through the unilateral appropriation of one competing claimant. Pending agreement with the opposite coastal state, Yemen was, in Eritrea's view, entitled only to issue concessions on a provisional basis. If the alleged concessions could not effectively confer the very mineral rights with which they purported to deal, they could not indirectly settle the question of sovereignty over the Islands. According to Eritrea, petroleum concessions are relevant only where they demonstrate the existence of a mutually recognized de facto boundary line. There had, in this case, been no attempt by Yemen to reach mutual agreement with Ethiopia or Eritrea.

65. Eritrea contends that the provisional character of any concessions issued by Yemen is derived not only from Article 87(3) of the Law of the Sea Convention, which permits the provisional granting of concessions, provided this does not prejudice a final delimitation, but also from Yemen's own continental shelf legislation, adopted in 1977, which provides that "pending agreement on the demarcation of the marine boundaries, the limits of territorial sea, the contiguous zone, the exclusive economic zone . . . shall not be extended to more than the median or equidistance line."

66. Eritrea further asserts that Yemen's offshore concessions were issued after 1973, with full knowledge of Ethiopia's sovereignty claims to the Islands. This is claimed not only to have implications for the delimitation of the surrounding seabed, but to limit as well the evidentiary value of Yemen's concession evidence in resolving the question of sovereignty.

67. Thus Eritrea argues that the post-1973 grant of concessions by Yemen reflects attempts to manufacture contacts with the disputed islands. This is further supported, in Eritrea's view, by the lack of any related Yemeni state activity pertaining specifically to the territory in dispute. According to Eritrea, concessions can be brought to bear on the question of territorial acquisition in two ways. The first is exemplified by the deep sea fishing concession granted by Italy to the Cannata company in the 1930s, which led inter alia to construction of a commercial fishing station on Greater Hanish Island. According to Eritrea, the Cannata concession was accompanied by the direct involvement of state officials, including Italian troops stationed on the island.

68. Another way in which concessions may be relevant to territorial acquisition is that reflected in the Eastern Greenland case. Eastern Greenland does not, in Eritrea's reading, necessarily require the physical presence of a particular state official, but rather activities by individuals who, while not themselves employees of the state, act under colour of state law. Eritrea cites doctrine in support of its position that the concession activity of private individuals is relevant only when it involves some kind of real assertion of authority, since "the exercise or display must be genuine and not a mere paper claim dressed up as an act of sovereignty." Eritrea argues that the scope of Yemeni and private activity with respect to petroleum concessions "does not approach the quality and significance of Ethiopia's long-standing pattern of governmental activities on and around the disputed islands." Eritrea further asserts that the few concession agreements actually placed in evidence by Yemen ultimately bear little or no relationship to the islands in dispute.

69. In addition, Eritrea characterizes much of Yemen's petroleum activity as pertaining to "marine scientific research," rather than economic exploitation. Article 241 of the Law of the Sea Convention expressly precludes marine scientific research activities from constituting the legal basis for any claim to any part of the marine environment or its resources.

70. Eritrea argues that its failure to protest Yemeni concessions does not amount to acquiescence, particularly in light of military and political upheaval in Ethiopia during the relevant period. Eritrea has submitted evidence aimed at demonstrating that the 1991 UNDP/World Bank report relied on by Yemen as evidence of notice to Ethiopia may never have been received by Ethiopia, embroiled as it then was in the fall of the Mengistu regime and the end of the civil war. And even if it had been ultimately received, Eritrea posits that in 1991, knowing it would soon lose its entire coastline to the soon-to-be independent Eritrea, Ethiopia would have had no reason to protest Yemeni concessions.

71. Even if it had had actual notice of some or all of Yemen's concessions, Eritrea contends that it was entitled to rely on their being provisional under Article 87(3) of the Law of the Sea Convention and under Yemen's own 1977 continental shelf legislation.

72. Finally, at the oral hearings in London in July 1998, Eritrea produced evidence of a 1989 Ethiopian concession agreement which, in its view, included at least some of the Islands, notably Greater Hanish, on which Eritrea relies as evidence of related activities which are said to have taken place on Greater Hanish Island, including the placement of beacons. Moreover, it has introduced evidence of publication in 1985 of a series of maps, one of which is entitled "Petroleum Potential of Ethiopia" and purports to encompass a block of the Red Sea that includes the Hanish islands.

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Notes - Chapter I

1. The identification of the specific islands or island groups in dispute between the Parties has been entrusted to the Tribunal by Article 2 of the Arbitration Agreement (see para. 7, above), and is dealt with in the part of this Award dealing with the scope of the dispute. References to "the Islands" in this Award are to those Islands that the Tribunal finds are subject to conflicting claims by the Parties. The geographic area in which these islands are found is indicated on the map opposite page 1.

2. Although Eritrea has also submitted cartographic evidence showing the Islands to be Ethiopian, Eritrean or, in any event, not Yemeni, it places relatively little weight on this type of evidence. Eritrea takes the position that maps do not constitute direct evidence of sovereignty or of a chain of title, thereby relegating them to a limited role in resolving these types of disputes.

3. Legal Status of Eastern Greenland (Den. v. Nor.), 1933 P.C.I.J. (Ser. A/B) No. 53.