Christmas Island Agreement Act 1958

The Head Office of the Commission shall be at Melbourne in the State of Victoria, Australia, or at such other place as is agreed upon by the said Governments jointly.

Article 3

1. The Government of Australia will, for the purposes of the working of the said property, grant to the Commission full licence and authority to cut timber and to get all phosphates and other minerals in on and from Christmas Island and all powers necessary or proper for the enjoyment of that licence.

2. The title to all phosphates and other minerals produced and to timber cut on Christmas Island on or after the date on which this Agreement comes into force and, in addition to the ships and other property vested in the Commission immediately prior to that date, to all assets acquired by or on behalf of the said Governments on or after that date in connection with the working of the said property shall be vested in the Commission.

Article 4

In the exercise of its responsibility under Article 2 of this agreement to manage and control on behalf of the said Governments the working of the said property, the Commission shall employ the British Phosphate Commissioners as Managing Agents on such terms as may be agreed upon between the Commission and the British Phosphate Commissioners and approved by the said Governments.

Article 5

The Commission shall—

(a) subject to the provisions of sub‑paragraph (b) of this Article, ensure that, so far as is practicable, phosphate obtained from Christmas Island shall be disposed of in Australia and New Zealand in conjunction with phosphate supplied by the British Phosphate Commissioners from Nauru and Ocean Island and other sources in such a manner as to give the lowest possible average c.i.f. cost for phosphate supplied to Australia and New Zealand;

(b) fix the f.o.b. price of phosphate supplied to Australia and New Zealand on a basis which will cover working expenses, depreciation, the administration expenses of the Commission (including the remuneration of the Commissioners), interest on moneys provided by the said Governments under the Christmas Island Agreement 1949 or under this Agreement, or borrowed under the Christmas Island Agreement 1949 or under Article 7 of this Agreement, contributions to any sinking fund for the redemption of such moneys, and the payment of the amounts referred to in Article 6 of this Agreement, the amounts payable by the Commission under Article 9 of this Agreement, and such other charges as the said Governments may agree upon;

(c) subject to the provisions of sub‑paragraph (d) of this Article, refrain from supplying any phosphate to or for shipment to any country or place other than Australia or New Zealand except with the unanimous approval of the Commissioners;

(d) continue to supply to Malaya as much as possible of Malaya’s requirements of ground phosphate (phosphate dust) up to thirty thousand (30,000) tons per annum or such greater quantity as the Commissioners may unanimously approve;

(e) carry out and perform all the acts, promises and obligations in connexion with the working of the said property which the said Governments have undertaken to carry out or perform under and by virtue of the Agreement dated the thirty‑first day of December, 1948, between the Christmas Island Phosphate Company Limited of the one part and Her Majesty’s Government of the Commonwealth of Australia and Her Majesty’s Government in New Zealand of the other part;

(f) keep proper books and accounts and other records in relation to the working of the said property, the records so kept to include full particulars of all the phosphate and other minerals extracted or obtained and all the timber cut in on and from Christmas Island;

(g) as soon as possible after the end of the Commission’s financial year, which shall run from the first day of July to the thirtieth day of June in each year, prepare and furnish to each of the said Governments, in respect of that financial year, a report of its activities and a financial statement duly audited by auditors approved by the said Governments; and (h) do such other things as are incidental to the things which it is expressly authorized to do and which are necessary or expedient for carrying out its functions.

Article 6

1. For the purpose of recouping the expenses incurred by the said Governments or by either of them in connection with the placing of Christmas Island under the authority of the Commonwealth of Australia, together with interest thereon at such rate as the said Governments may from time to time jointly determine, the said Governments may from time to time jointly determine an amount to be paid to them by the Commission in respect of each ton of phosphate exported from Christmas Island, and shall direct the time at which and the manner in which those payments are to be made by the Commission.

2. Unless and until otherwise agreed by the said Governments, the amount to be paid in accordance with the last preceding paragraph in respect of each ton of phosphate exported from Christmas Island shall be eight shillings (8/‑) sterling.

3. After the expenses referred to in paragraph 1 of this Article together with interest thereon as provided in that paragraph have been recouped, the Commission shall create a special fund (in this Article called “the fund”) for the purpose of accumulating moneys to meet the cost of discharging the obligations towards inhabitants of the Island which fall upon the Government of Australia as a consequence of the cessation of the phosphate industry and such other residual liabilities as the two Governments agree in accordance with paragraph 7 of this Article fall upon the Government of Australia as a consequence of that cessation.

4. The Commission shall transfer to the fund annually an amount calculated at such rate per ton of phosphate exported from Christmas Island as the said Governments from time to time jointly determine.

5. Unless and until otherwise agreed by the said Governments, the amount to be paid by the Commission to the fund shall be calculated at the same rate per ton as was applicable under paragraphs 1 and 2 of this Article immediately before the final payment was made by way of recoupment of the expenses referred to in paragraph 1 of this Article, together with interest thereon as provided in that paragraph.

6. Moneys standing to the credit of the fund shall be invested in securities approved by the said Governments and interest earned from the investment of the moneys shall form part of the fund.

7. Immediately prior to the Commission ceasing to function, the two Governments shall consult for the purpose of assessing what part of the fund should be applied to meeting the cost of discharging the obligations towards inhabitants of the Island which fall upon the Government of Australia as a consequence of the cessation of the phosphate industry and such other residual liabilities as the two Governments agree fall upon the Government of Australia as a consequence of that cessation.