'The Chairman of the Arbitral Tribunal

• subsequent to the Fourth Order of 7 May 2004 which had invited the Parties to inform the Arbitral Tribunal on the present status of the conciliation procedure

• having received the letter of Claimants' counsel dated 19 May 2004 which indicated that the nominated Conciliators are expected to present their recommendations to the Parties no later than by 31 October 2004, and which letter suggested that the present Arbitral Tribunal should suspend the arbitral proceedings accordingly

issues the following Order:

1. The Chairman has not heard from Respondent. However, he has reason to assume that Respondent does agree to keep the present arbitral proceedings suspended during the presently ongoing conciliation proceedings.

2. The Arbitral Tribunal therefore confirms that the arbitral proceedings are kept suspended until 31 October 2004, or any earlier notification by any one of the Parties requesting the continuation of the present arbitral proceedings, whichever event first occurs.

3. Assuming that the conciliation phase will be concluded by 31 October 2004 (possibly either by an amicable overall agreement/settlement between the Parties, or else by the recommendations submitted by the Conciliators, in the sense of the letter of Claimants' counsel dated 19 May 2004), the Tribunal expects to be informed by the Parties, or any one of them, on further steps to be taken in the framework of the present arbitral proceedings.

Departing on the assumption that the Conciliators may submit their recommendation by Sunday 31 October, it would appear reasonable to give the Parties some days for considering any such recommendation and to thereafter inform the Arbitral Tribunal on any requests for the continuation of the present arbitral proceedings. Allowing such time for reflection, the Arbitral Tribunal, therefore, expects to be informed by either one of the Parties, or by the Parties jointly, on (or before) Monday 15 November 2004.

4. Should the conciliation not bring about an amicable settlement/resolution of the dispute, this Tribunal will stand prepared to adjudicate any remaining issues in a carefully and expeditiously structured arbitral process.

5. In fact, the arbitral process, if it should take place, could significantly benefit from the presently pending conciliation procedure, in that-during the conciliation procedure-the key issues on which the Parties disagree and were unable to "cross the bridge" would most likely come out in a clear fashion, allowing the Parties then to focus on these key issues in any resulting arbitration.

For the time being, however, the Chairman, on behalf of the Tribunal, wishes the Parties the best possible success during the conciliation phase, and the hope is expressed that the Parties will be able to discuss all pending issues in a good spirit.'