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Annex II

                                                      ARBITRATION


              1.    In the event of a dispute being submitted for arbitration pursuant to
              article 16, paragraph 2, of this Convention, a party or parties shall notify
              the secretariat    of the subject matter of arbitration and indicate, in
              particular, the articles of this Convention whose interpretation or
              application    is at issue.     The secrétariat shall forward the        information
              received to all Parties to this        Convention.
              2.    The arbitral    tribunal   shall consist    of three members.      Both the claimant
              party or parties and the other party or parties to the dispute shall appoint
              an arbitrator,    and the two arbitrators      so appointed    shall designate by common
              agreement   the third arbitrator, who shall be the president           of the arbitral
              tribunal.    The latter shall not be a national of one of the parties to the
              dispute, nor have his or her usual place of residence            in the territory     of one
              of these parties, nor be employed by any of them, nor have dealt with the case
              in any other    capacity.

              3.    if the president of the arbitral tribunal has not been designated within
              two months of the appointment of the second arbitrator, the Executive
              Secretary   of the Economic Commission       for Europe shall, at the request of
              either party to the dispute, designate the president within a further
              two-month   period.
              4.    If one of the parties to the dispute does not appoint an arbitrator
              within two months of the receipt of the request, the other party may so inform
              the Executive Secretary of the Economic Commission for Europe, who shall
              designate the president      of the arbitral tribunal within a further          two-month
              period.    Upon designation,     the president of the arbitral tribunal         shall
              request   the party which has not appointed an arbitrator to do so within two
              months.    If it fails to do so within that period, the president shall so
              inform the Executive Secretary of the Economic Commission             for Europe, who
              shall make this appointment       within a further two-month      period.

              5.    The arbitral tribunal shall render its decision           in accordance with
              international law and the provisions of this Convention.

              6.    Any arbitral tribunal      constituted under the provisions set out in this
              annex shall draw up its own rules of procedure.

              7.    The decisions of the arbitral tribunal, both on procedure             and on
              substance, shall be taken by majority vote of its members.

              8.    The tribunal may take all appropriate measures           to establish the facts.

              9.    The parties    to the dispute shall facilitate the work of the arbitral
              tribunal and, in particular, using all means at their disposal,              shall:

                     (a)  Provide   it with all relevant documents, facilities and           information;

                     (b)  Enable   it, where necessary,     to call witnesses or experts and receive
              their evidence.



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