The Source

The General Assembly,  
Recalling its resolutions 523 (VI) of 12 January 1952 and 626 (VII) of 21 December 1952,  
Bearing in mind its resolution 1314 (XIII) of 12 December 1958, by which it established the 
Commission on Permanent Sovereignty over Natural Resources and instructed it to conduct a full 
survey of the status of permanent sovereignty over natural wealth and resources as a basic constituent 
of the right to self-determination, with recommendations, where necessary, for its strengthening, and 
decided further that, in the conduct of the full survey of the status of the permanent sovereignty of 
peoples and nations over their natural wealth and resources, due regard should be paid to the rights 
and duties of States under international law and to the importance of encouraging international co
operation in the economic development of developing countries,  
Bearing in mind its resolution 1515 (XV) of 15 December 1960, in which it recommended that the 
sovereign right of every State to dispose of its wealth and its natural resources should be respected,  
Considering that any measure in this respect must be based on the recognition of the inalienable right 
of all States freely to dispose of their natural wealth and resources in accordance with their national 
interests, and on respect for the economic independence of States,  
Considering that nothing in paragraph 4 below in any way prejudices the position of any Member State 
on any aspect of the question of the rights and obligations of successor States and Governments in 
respect of property acquired before the accession to complete sovereignty of countries formerly under 
colonial rule,  
Noting that the subject of succession of States and Governments is being examined as a matter of 
priority by the International Law Commission,  
Considering that it is desirable to promote international co-operation for the economic development of 
developing countries, and that economic and financial agreements between the developed and the 
developing countries must be based on the principles of equality and of the right of peoples and 
nations to self-determination,  
Considering that the provision of economic and technical assistance, loans and increased foreign 
investment must not be subject to conditions which conflict with the interests of the recipient State,  
Considering the benefits to be derived from exchanges of technical and scientific information likely to 
promote the development and use of such resources and wealth, and the important part which the 
United Nations and other international organizations are called upon to play in that connection,  
Attaching particular importance to the question of promoting the economic development of developing 
countries and securing their economic independence,  
Noting that the creation and strengthening of the inalienable sovereignty of States over their natural 
wealth and resources reinforces their economic independence,  
Desiring that there should be further consideration by the United Nations of the subject of permanent 
sovereignty over natural resources in the spirit of international co-operation in the field of economic 
development, particularly that of the developing countries,  
I 
Declares that:  
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 1. The right of peoples and nations to permanent sovereignty over their natural wealth and resources 
must be exercised in the interest of their national development and of the well-being of the people of 
the State concerned.  
2. The exploration, development and disposition of such resources, as well as the import of the foreign 
capital required for these purposes, should be in conformity with the rules and conditions which the 
peoples and nations freely consider to be necessary or desirable with regard to the authorization, 
restriction or prohibition of such activities.  
3. In cases where authorization is granted, the capital imported and the earnings on that capital shall 
be governed by the terms thereof, by the national legislation in force, and by international law. The 
profits derived must be shared in the proportions freely agreed upon, in each case, between the 
investors and the recipient State, due care being taken to ensure that there is no impairment, for any 
reason, of that State's sovereignty over its natural wealth and resources.  
4. Nationalization, expropriation or requisitioning shall be based on grounds or reasons of public utility, 
security or the national interest which are recognized as overriding purely individual or private 
interests, both domestic and foreign. In such cases the owner shall be paid appropriate compensation, 
in accordance with the rules in force in the State taking such measures in the exercise of its 
sovereignty and in accordance with international law. In any case where the question of compensation 
gives rise to a controversy, the national jurisdiction of the State taking such measures shall be 
exhausted. However, upon agreement by sovereign States and other parties concerned, settlement of 
the dispute should be made through arbitration or international adjudication.  
5. The free and beneficial exercise of the sovereignty of peoples and nations over their natural 
resources must be furthered by the mutual respect of States based on their sovereign equality.  
6. International co-operation for the economic development of developing countries, whether in the 
form of public or private capital investments, exchange of goods and services, technical assistance, or 
exchange of scientific information, shall be such as to further their independent national development 
and shall be based upon respect for their sovereignty over their natural wealth and resources.  
7. Violation of the rights of peoples and nations to sovereignty over their natural wealth and resources 
is contrary to the spirit and principles of the Charter of the United Nations and hinders the 
development of international co-operation and the maintenance of peace.  
8. Foreign investment agreements freely entered into by or between sovereign States shall be 
observed in good faith; States and international organizations shall strictly and conscientiously respect 
the sovereignty of peoples and nations over their natural wealth and resources in accordance with the 
Charter and the principles set forth in the present resolution.