I. Commitments of the Participants: 1.1 The Participants decide to entrust an industrial structure, named Arianespace, with the execution of the Ariane launcher production phase provided for in Articles I and V of the Ariane Arrangement. 1.2 The Participants agree that the objective of this production phase will be to meet the launch requirements of the world market subject only to: (a) the proviso that it is carried out for peaceful purposes in conformity with the obligations under the Convention and with the Articles of the Treaty on Principles governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies, signed in 1967; and (b) to the provisions of paragraph 3.6 below. 1.3 The Participants agree to entrust Arianespace, a Limited Company (Société Anonyme) under French Law with the manufacture, marketing and launch of the Ariane launchers from J.10 onwards. 1.4 (a) The Participants declare that the Ariane launcher will be used for the Agency's activities in conformity with the provisions of Article VIII.1 of the ESA Convention. (b) The Participants agree to take the Ariane launcher into account when defining and executing their national programmes and to grant preference to its utilisation except where such use compared to the use of other launchers or space transport facilities available at the envisaged time is unreasonably disadvantageous with regard to cost, reliability or mission compatibility. (c) The Participants will endeavour to support the use of the Ariane launcher within the framework of the international programmes in which they participate and shall consult together to that end. 1.5 (a) In respect of contracts concluded from 1 July 1983 onwards and relating to launches due to take place subsequent to 1 July 1986, a pricing policy taking account of international competition will be applicable to all the users of the launcher. The Participants agree to consult with Arianespace from 1982 onwards with a view to defining and adopting not later than 1 July 1983 the means of achieving this objective. (b) The prices applicable to contracts concluded prior to 1 July 1983 or to launches scheduled to take place before 1 July 1986 are set out in a scale contained in Annex 1 to this Declaration. The prices will be adjusted in the light of economic and monetary conditions. (c) As far as Arianespace is concerned, the prices shown in the scale referred to above constitute recommended prices in respect of launches that are not covered by paragraphs 1.4(a) and 1.4(b) above. Even if the prices invoiced differ from the recommended prices, the financial consequences shall be borne by Arianespace alone. 1.6 In the case of sales to a non-member State or to a customer that does not come under the authority of an ESA Member States: (a) The Participants agree to set up a Committee with responsability for determining whether a projected launch sale constitutes use that runs counter to the provisions of paragraph 1.2(a) above. This Committee shall comprise one representative of each participating Government. The members of the Committee shall be kept informed by the Director General of the Agency of projected sales of Arianespace launches to non-member States and to customers that come under the authority of such States. The Committee shall be convened as follows: one-third of the members may request a meeting on the ground that the use of a launcher would run counter to the provisions of paragraph 1.2(a) above. This request must be made not more than four weeks after the members of the Committee have been informed of the proposed contract. The Committee must then be convened within two weeks. Within four weeks at the most, it may decide to prohibit the sale on the grounds that it is incompatible with the provisions of paragraph 1.2(a), doing so by a two-thirds majority of its members, representing at least 15% of the contributions to the development programme. Such decisions to prohibit a sale shall be binding on Arianespace. The French Government, in the exercise of the competences that France holds by virtue of the Treaty on Principles governing the Activities of States in the Exploration and Use of Outer Space, signed on 27 January 1967, undertakes to take the necessary steps to ensure the proper implementation of the prohibition decisions taken by the Committee. (b) Without prejudice to the obligations devolving upon it under this Declaration, any participating State shall retain the right to declare that for reasons of its own it does not associate itself with a particular launch. (c) If a participating State considers that the sale of a launch is not compatible with its adherence to this Declaration it must, after such consultations as it may deem necessary, inform the Director General of the Agency. If, after the informing of Arianespace by the Director General, the sale goes through, the participating State concerned may immediately suspend its adherence to this Declaration in respect of the sale in question, on condition that it formally notifies the Agency and the other Participants thereof within one month and that it respects the commitments it has entered into with regard to other sales. Following such suspension, the State shall keep available the national industrial facilities used for the production of the launcher and shall not oppose their use. Should the State concerned object to making available, for the purposes of the launching in question, equipment and sub-systems manufactured by its national industry, it shall be bound, within the framework of its powers, to authorize and facilitate the transfer of the manufacture of the relevant supplies to the industries of the other participating States, and may not under any circumstances oppose the manufacture of the supplies in question by the industries of the other participating States. 1.7 The Participants undertake to make available to Arianespace, when required for the purposes of the production or launch of Ariane: – free of charge, the facilities, equipment and tooling acquired within the framework of the Ariane development and promotion phases and of which the Agency is the owner on behalf of the Participants; – under financial conditions limited to the costs incurred on that account, the facilities owned by certain Participants and which have been used for the Ariane development programme, with the exception of the Guiana Space Centre to which the specific provisions of Article 1.9 shall apply; – free of charge, the intellectual property rights belonging to them and deriving from the development and promotion phases of the Ariane programme; Arianespace shall have access free of charge to the technical information in their possession, resulting from the said phases. 1.8 The Participants will do their utmost to provide Arianespace with the assistance required with regard to industrial quality surveillance and price surveys. 1.9 The participating states undertake, for their part, to contribute to the funding of the Guiana Space Centre in accordance with procedures to be defined and note that a separate Agreement should be concluded in this respect between the Member States of the Agency. 1.10 If, in connection with an export sale, it proves desirable to lay down special arrangements regarding guarantees and export financing, the Participants shall consult together to determine how such a request can be met on the basis of the principle of equitable distribution of the risk and the funding, pro rata to the participation in the production. 1.11 The Participants agree that they will consult together on the steps to be taken if technical or financial difficulties arise which call into question the future of Arianespace or that of Ariane production.