FIFTH COMMITTEE RECOMMENDS $18.8 MILLION FOR DISENGAGEMENT FORCE ON SYRIAN GOLAN HEIGHTS

29 November 1995

Press Release
GA/AB/3049

FIFTH COMMITTEE RECOMMENDS $18.8 MILLION FOR DISENGAGEMENT FORCE ON SYRIAN GOLAN HEIGHTS

19951129 Also Concludes Discussion of United Nations Financial Situation

The General Assembly would authorize up to approximately $18.8 million gross ($18.2 million net) for United Nations Disengagement Force (UNDOF) on the Syrian Golan Heights for the period 1 December 1995 to 30 June 1996, under the terms of a draft resolution approved without a vote by the Fifth Committee (Administrative and Budgetary) this afternoon.

Also this afternoon, the Committee considered the financing of the United Nations Protection Force (UNPROFOR), the United Nations Confidence Restoration Operation in Croatia (UNCRO), the United Nations Preventive Deployment Force (UNPREDEP), the United Nations Peace Forces headquarters and the United Nations Mission in Haiti (UNMIH). It concluded its discussion on improving the United Nations financial situation.

By the terms of the draft text, the authorization would be at a rate of not to exceed $2.7 million gross ($2.6 million net) monthly up to 30 June 1996. The sums would be apportioned among Member States on an ad hoc basis. The Assembly would set off against the apportionment of Member States' respective share in an unencumbered balance of $805,000 gross ($891,000 net) for the period 1 December 1993 to 30 November 1994. The Assembly would also appropriate for UNDOF $16.1 million gross ($15.6 million net), previously authorized and apportioned, for the period 1 June to 30 November 1995.

The Security Council yesterday renewed UNDOF's mandate for another six months, until 31 May 1996, by unanimously adopting resolution 1024 (1995). The UNDOF was set up in 1974 to supervise the cease-fire called for by the May 1974 Agreement on Disengagement between Israeli and Syrian forces.

The representative of Latvia introduced the draft resolution. The representative of the Netherlands made a statement and the representative of Iran explained its position after the text's approval.

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Regarding financing for UNMIH, the representative of Spain, speaking for the European Union, recalled the past statement of the United States' that it would not pay more than 25 per cent of the costs of UNMIH and other missions. The United States was legally bound by the Charter to bear about 31 per cent of UNMIH's costs, as determined by the General Assembly, he said. The representatives of Japan and Norway associated themselves with that view.

The representatives of the Russian Federation and the United Kingdom also made statements.

The reports on the peace-keeping missions were introduced by the United Nations Controller, Yukio Takasu.

Addressing the Organization's financial situation, Under-Secretary- General for Administration and Management, Joseph E. Connor, said that unpaid dues had reached $2.7 billion as of 15 November. Of that, approximately $645.5 million was owed to the regular budget and some $2.04 billion to peace- keeping accounts. About 64 per cent of the unpaid regular budget dues and 42 per cent of peace-keeping were owed by one major contributor. The General Fund would have a $225 million deficit and the money owed States for troop costs and equipment could exceed $1 billion at year's end.

The representative of Cameroon said Member States' capacity to pay and the special situation of the underdeveloped countries should be considered when adjusting factors used to determine the scale of assessments. Any changes to the scale should be handled with caution, especially regarding the situation of African countries.

The representatives of Mexico, Cuba, Brazil, Spain (for the European Union), Tunisia and New Zealand, also spoke on the financial situation, as did the Committee Secretary.

The Committee will meet again at 10 a.m. Thursday, 30 November, to take up a report of the Economic and Social Council, and continue or conclude discussion of the United Nations common system and the reports of the Joint Inspection Unit.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to consider the financing of the United Nations Protection Force (UNPROFOR), the United Nations Confidence Restoration Operation in Croatia (UNCRO), the United Nations Preventive Deployment Force (UNPREDEP), and the United Nations Peace Forces headquarters; and of the United Nations Mission in Haiti (UNMIH). It would also act on a draft resolution relating to the United Nations Disengagement Force (UNDOF) and conclude its discussion on how to improve the United Nations financial situation.

Peace-keeping Financing

A report of the Secretary-General on the financing of UNPROFOR, UNCRO, UNPREDEP and the United Nations Peace Forces headquarters (document A/50/696) contains the financial performance report of UNPROFOR for the period from 1 October 1994 to 31 March 1995. That mandate period preceded the Security Council's decisions of last March, to establish three separate missions in the former Yugoslavia. They are the UNCRO, UNPROFOR in Bosnia and Herzegovina and UNPREDEP in the former Yugoslav Republic of Macedonia.

Of the $927.8 million gross ($922 million net) appropriated in 1994 by the General Assembly for the period, spending was at $848.9 million gross ($842.9 million net), leaving an unencumbered balance of $78.8 million gross ($79.1 million net). Voluntary contributions in kind of $5 million were also received.

In an addendum (document A/50/696/Add.1), the Secretary-General requests the Assembly to authorize and assess $115.4 million gross ($113.9 million net) monthly should the Security Council decide to continue the combined forces beyond 30 November 1995, when their mandates expire. He also asks it to set off against Member States' future assessments their respective share in the unencumbered balance of $203 million gross ($203.9 million net) for the period ending 30 November 1995.

The Secretary-General requests the Assembly to approve $757.4 million gross ($748.9 million net) to maintain the forces, excluding the rapid reaction capacity, for the period 1 July to 31 December 1995. The revisions would pay for a continent personnel strength that would drop from 39,165 in July to 22,097 in December. Approval is also sought for $132.9 million gross ($132.9 million net) as the revised overall level of resources needed to reinforce UNPROFOR with a rapid reaction capacity for that period. That capacity, based on a troop strength of 8,500, was meant to reinforce UNPROFOR, reduce its vulnerability and enhance its ability to carry out its mandate.

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If it accepts the Secretary-General's requests, the Assembly would appropriate $100 million gross ($99.6 million net) previously authorized and assessed to reinforce UNPROFOR with a rapid reaction capacity for the period 1 July to 30 November.

Another addendum (A/50/696/Add.2), which contains the performance report for the three missions for the period 1 April to 30 June 1995, asks the Assembly to set off that period's unencumbered balance of $33.7 million gross ($34.1 million net) against Member States' future assessments. The balance accrued after the spending of $370.5 million gross ($367.1 million net) out of the $404.2 million gross ($401.1 million net) appropriated for the period. Most of the savings leading to the unencumbered balances are due to the non- deployment of additional military personnel and higher vacancy rates for civilian staff than originally estimated.

In a performance report on the financing of UNMIH (document A/50/363/Add.1), the Secretary-General proposes that the Assembly set off against the Member States' future assessment for the Mission, their respective share in an unencumbered balance of $18 million gross ($17.3 million net) for the period 1 February to 31 July 1995.

The balance resulted from the spending of $133.5 million gross ($132.3 million net) of about $151.6 million gross ($149.6 million net) made available for that period. Savings were realized mainly from slower rotation and deployment of military personnel, civilian police and United Nations Volunteers and the reduced deployment of international staff.

In another report on UNMIH's financing (document A/50/363 and Corr.1), the Secretary-General asks the Assembly to appropriate $152 million gross ($149 million net) for the period 1 August 1995 to 29 February 1996. The Advisory Committee on Administrative and Budgetary Questions (ACABQ) states in its report (document A/50/488) that it approves the Secretary-General's request, pending its review of UNMIH's performance report for the period 1 February to 31 July 1995. (For background on the financing of UNMIH, see Press Release GA/AB/3023 of 18 October.)

Also before the Committee was a draft resolution to finance UNDOF (document A/C.5/50/L.5), which would have the Assembly authorize $2.7 million gross ($2.6 million net) monthly for the period beyond 30 November, subject to the renewal of UNDOF's mandate. Adopting resolution 1024 (1995) of 28 November, the Security Council renewed the mandate for another six months, until 31 May 1996. The UNDOF was set up in 1974 to supervise the cease-fire called for by the May 1974 Agreement on Disengagement between Israeli and Syrian forces.

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The draft text would also have the Assembly apportion the authorized amounts, as an ad hoc arrangement. It would then set off against Member States'apportionment their respective share in an unencumbered balance of $805,000 gross ($891,000 net) for the period 1 December 1993 to 30 November 1994.

Improving Organization's Financial Situation

The Committee had before it a note by the Secretary-General, transmitting a 1993 report prepared by an Independent Advisory Group on United Nations Financing, sponsored by the Ford Foundation, under the co-chairmanship of Shijuro Ogata and Paul Volcker. The Group makes recommendations for improving Member States' payment of dues to the regular and peace-keeping budgets, including the charging of interest on late payments. It recommends unifying peace-keeping budgets; they should be financed by single annual assessments.

The Secretary-General agrees with a number of the Group's recommendations, but expresses reservations on others, such as the changes in the period of payment of dues. He also disagrees with the proposal that the Organization should not be authorized to borrow. (For background on the United Nations financial situation, see Press Release GA/AB/3029, of 31 October.)

Statement on United Nations Protection Force

YUKIO TAKASU, United Nations Controller, said that the mandate would end Thursday, 30 November, for the three operations in the former Yugoslavia and the Peace Forces headquarters. He reviewed some of the developments in the area since the last mandate extension, including the agreement reached among the parties in Dayton, Ohio. Now, the main task of UNPROFOR would be to transfer operations to an implementation force in the former Yugoslavia. The Secretary-General had called for a two-month mandate extension for UNPROFOR, enough time to execute the transfer of responsibility to the implementation force. He had also called for the extension of the mandate of UNPREDEP for 12 months. The Security Council was seized of the issues related to those missions. Since the financial authority for UNPROFOR ended tomorrow, he said the Fifth Committee should help extend it by committing and assessing approximately $115.3 million gross for December 1995.

Statements on Haiti

Mr. TAKASU, United Nations Controller, introducing the performance report on the United Nations Mission in Haiti (UNMIH), said that on 18 October he had introduced the budget estimates for UNMIH until the end of the present mandate in February 1996. Since the performance report on UNMIH was not yet available, the Committee had extended the commitment authority for the Mission

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until the end of November. The Secretariat had now prepared the performance report covering the period to the end of July 1995. In that report, the Secretary-General had reported an unencumbered balance of $18 million gross for the period 1 February to 31 July 1995 because of underspending in many areas of that budget. Since the commitment authority ended Thursday, 30 November, the Secretary-General had requested the Committee to take urgent action on the matter.

ARTURO LACLAUSTRA (Spain), speaking on behalf of the European Union, recalled a statement made by the United States on 18 October, the last occasion that UNMIH financing was considered. In that statement the United States had indicated that its Government would not pay more than 25 per cent of the costs for the financing of UNMIH or any other peace-keeping operation, because it was prohibited by national legislation. However, it had pointed out that its Government intended to join in the consensus for approving the draft resolutions for financing such operations.

The European Union's position on the matter was that Member States, in signing the Charter, had assumed certain financial obligations. That position had been endorsed by the United Nations Legal Counsel, who had said that the United States Government would be legally obligated under Article 17 to pay at the existing rate determined by the Assembly -- 31 per cent of the expenses for such operations as UNMIH.

The President of the European Union had said that unilateral decisions adopted by any Member State contradicting the fulfilment of its financial obligations to the Organization were not acceptable, he said. In conclusion, therefore, the European Union considered that in approving a resolution on financing of peace-keeping operations, Member States were accepting and committing themselves to the fulfilment of their financial obligations in the amount established in the Assembly's resolutions. He called on Member States to pay their arrears and meet the financial obligations to the Organization in full, on time and without conditions.

VLADIMIR KUZNETSOV (Russian Federation) asked whether the Fifth Committee would receive a written or oral report from the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the Secretary-General's proposals on UNMIH. The ACABQ's views would be useful in guiding the Committee's adoption of a resolution on the item.

PATRICIA HOLLAND (United Kingdom) said she had wanted to ask the same question as the Russian Federation's delegate. She looked forward to receiving the ACABQ's views in informal consultations.

DAG BRISEID (Norway) associated himself with the statement by Spain, who was speaking on behalf of the 15 member States of the European Union.

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FUMIAKI TOYA (Japan) also associated himself with Spain's statement.

Action on Disengagement Observer Force

ULDIS BLUKIS (Latvia) introduced and reviewed some of the contents of the draft resolution on financing UNDOF.

P.A. MENKVELD (Netherlands) said that there were differences in some versions of the draft text. The original document approved by the Fifth Committee should be adopted.

The Committee adopted the draft resolution without a vote.

Speaking in explanation of position, the representative of Iran said that his delegation would have abstained if there had been a vote on the draft.

Statements on Improving United Nations Financial Situation

MANUEL TELLO (Mexico) expressed regret that a large sum of money was still owed to the United Nations. The high level of unpaid dues owed by one Member State, totalling an amount similar to the annual United Nations regular budget, was a cause of concern. Member States should bear United Nations costs, as called for by the Charter.

He did not agree with the views expressed that the financial situation could be improved by redistributing the burden among Member States. He did not understand why some of the initiatives being made condoned past debts. Such measures would not improve the Organization's financial situation. Member States were obliged to meet their Charter commitments and support the activities legislated by the Assembly. Mexico would support reforms that would strengthen the Organization, but the means must exist for those reforms to be carried out. The failure to pay dues was similar to placing a sanction on the countries that contributed troops to peace-keeping operations, since they could not be reimbursed on time.

A solution must be found to the problem, he said. Despite its crisis, his Government had made an extraordinary effort to pay its contributions to the regular budget in full before the beginning of the current session. It had paid more than 80 per cent of its dues for activities to maintain international peace. It would also continue to work in the high-level working group on the financial situation of the United Nations.

JEAN KOE NTONGA (Cameroon) said that without adequate financial means the United Nations could not carry out its tasks in the social, cultural and economic fields and in peace-keeping. More than 100 Member States were in

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arrears to the United Nations. There were two major reasons causing non- payment: political factors; and economic problems and lack of liquidity.

He said the United Nations should not borrow money from commercial banks. The Organization should work on adjusting some of the factors that determined the scale of assessments. Capacity to pay and the special situation of the underdeveloped countries should be taken into consideration. Any change in the present scale should be approached with caution, especially regarding the situation of African countries. Member States should bear the expenses of the United Nations on time, as apportioned by the General Assembly. For its part, his country had eliminated almost all of its debt to the Organization.

ANA SILVIA RODRIGUEZ (Cuba) said the Organization's financial stability would determine its capacity to carry out its mandates and she was concerned about its precarious financial situation. The delay in payment by Member States was the main cause of the financial situation, but it was necessary to make a clear distinction between the problems faced by Member States. Some, particularly developing countries, had to decide whether to make their payments or look after the economic and social needs of the population. In general, they did attempt to fulfil their commitments to the Organization.

At the same time, it was irritating to see the largest contributor withholding payment, she said. That policy of financial blackmail was not acceptable. That Member State was seeking to impose its national legislation on an international organization. At the same time, it benefited greatly from the Organization and made enormous profits, especially from contracts. The "so-called crisis" it had created was merely a euphemism for the wish of that Member State to control the Organization's work and reform it to its own whims.

Permanent members of the Security Council had a special responsibility for financing peace-keeping operations, she said. It was time to review the practice of the Security Council, by which all Member States paid for the decisions of a small group of States, even if they disagreed with the decisions. The Council must take into account the financial situation of Member States when it made decisions on peace-keeping. In that respect, it was essential to transform the Council.

HENRIQUE VALLE (Brazil) said the root cause of the present financial situation was the failure of some Member States to meet their financial obligations to the Organization. The essence of the problem was a cash-flow shortage. The means of correction had already been identified and that had nothing to do with the methodology of the scale of assessments. His country had met its financial obligations to the regular budget and had paid the bulk of its contributions to the peace-keeping budgets. In that connection, he urged all Member States, especially the major contributors, to do likewise.

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"The accumulation of $3.3 billion in outstanding contributions simply cannot go on", he said. Some basic principles were important regarding a solution to the financial crisis. There was no substitute for payment in full, on time and without conditions. That must be at the centre of any solution to the financial situation. Also, the special situation of developing countries and the economic difficulties that affected their capacity to pay should always be considered. They should not be perceived as withholding assessed contributions.

Therefore, Member States should not support the adoption of measures aimed at shifting the Organization's financial burden to developing countries, he continued. The existing rules that governed the apportionment of peace- keeping operations should be maintained and institutionalized. The permanent members of the Security Council had a special responsibility for peace-keeping financing.

RAFAEL MUNOZ (Spain), also speaking for the European Union, welcomed the Russian Federation's decision to clear all of its arrears to the United Nations in seven years, despite its economic difficulties. That showed a real commitment to fiscal responsibility, which should be an example to others with similar problems.

AMMAR AMARI (Tunisia) said that his country had paid all its contributions to the regular budget. As for peace-keeping, it was paying about $208,000, two thirds of what it owed. The remaining one third would be paid up in the beginning of 1996, after the legislative deliberations on the Tunisian budget.

DENISE ALMAO (New Zealand) recalled that some cash conservation measures had been announced by the Secretary-General, with the possibility of further steps to be undertaken. She asked whether the Secretariat planned to keep delegations informed about the financial situation, in addition to its monthly reports on the status of contributions.

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, said that unpaid assessments had reached $2.7 billion, as of 15 November. Of that, $645.5 million was owed to the regular budget and some $2.04 billion to peace-keeping accounts. About 64 per cent of the unpaid regular budget dues and 42 per cent of peace-keeping was owed by one major contributor. There would be an unprecedentedly large deficit of some $225 million in the General Fund at the end of 1995.

With regard to the peace-keeping accounts, he said that, as a result of loans made to cover the regular budget deficit, only $630 million remained as a usable cash base for peace-keeping missions until the end of the year.

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Those cash resources would be needed to sustain the operations into 1996. The requirements for peace-keeping were estimated at about $600 million for the first quarter of 1996 and that must be met largely from cash in hand.

He said that situation prevailed mainly because such missions as UNPROFOR, the United Nations Assistance Mission for Rwanda (UNAMIR) and UNMIH had accumulated balances totalling more than $200 million, which would be credited to Member States. In turn, that would cut the level of new assessments and, consequently, reduce the cash inflow for future mandate periods. In light of that, the capacity to borrow from peace-keeping for the regular budget would be severely limited. Meanwhile, the sums owed to States for troop costs and equipment could exceed $1 billion at the end of 1995.

JOSEPH SATCHIVI, Committee Secretary, responding to the representative of New Zealand, said that the agenda item on the status of the Organization's financial situation would be left open for discussion until the end of the current session, September 1996.

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