SOUTH AFRICA'S DEBT TO UNITED NATIONS SHOULD BE WAIVED, FIFTH COMMITTEE TOLD

6 December 1995

Press Release
GA/AB/3053

SOUTH AFRICA'S DEBT TO UNITED NATIONS SHOULD BE WAIVED, FIFTH COMMITTEE TOLD

19951206 Issue is One of Fairness, Equity, Say Speakers; Committee Also Concludes Discussion of JIU, Common System

The dues that South Africa owed to the United Nations regular and peace- keeping budgets for the period 30 September 1974 to 23 June 1994 should be waived by the General Assembly as a gesture of fairness to that country, the Fifth Committee (Administrative and Budgetary) was told this afternoon by several speakers as it considered the issue of normalizing that State's unpaid assessments. The Committee also concluded its general discussions on the Joint Inspection Unit (JIU) and the United Nations common system.

The Committee was considering the issue of South Africa's debt in order to make technical recommendations on a draft resolution that will be considered by the General Assembly. Before discussion began on South Africa, United Nations Controller Yukio Takasu informed the Committee that, should the Assembly decide to make the dues owed for that period no longer payable, Member States could be assessed $53.9 million for the regular budget and $40.9 million for peace-keeping to cover what South Africa owed. Alternatively, they could waive their respective shares in budgetary surpluses for 1986-1987.

The representative of Côte d'Ivoire, one of the co-sponsors of the draft resolution on the issue, said that the decision to waive those dues should be taken on the basis of fairness and equity, not from the standpoint that the United Nations was facing a financial crisis.

Canada's representative, joining the co-sponsors, said that the issue was unique as South Africa had been excluded from the Assembly's work for 20 years. There should be "no taxation without representation", he said. Member States should bear the consequences of a decision that the Assembly had taken for all of them two decades ago.

South Africa's situation would not become a precedent, Kenya's representative said, adding that he did not foresee a situation in which there would be another apartheid. The Committee was supposed to discuss the technical aspects of a resolution that would be going directly to the Assembly plenary.

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The representative of Mexico said that his Government did not understand why there was now a draft resolution to forgive a Member State's debt to an Organization that was in financial crisis. One way out, he said, would be for the debt to be borne by the more than 90 sponsors of the draft text. How could Mexico, facing its own financial crisis, be asked to clear the well- endowed South Africa's $94.8 million debt, he asked.

Statements on the issue were also made by the representatives of Indonesia, Singapore, Egypt, Marshall Islands, Spain (for the European Union), Thailand, Philippines, Norway, Republic of Korea, United Republic of Tanzania, Hungary and France.

In an earlier discussion on the common system, several Member States called on the Secretary-General to rescind the recent decision to suspend permanent and probationary appointments, especially for young recruits who had joined the Organization through the national examinations. The representatives of Germany, Italy, Spain, Portugal, New Zealand and Canada were among those asking the decision's withdrawal.

Responding to those concerns, Assistant Secretary-General for Human Resources Management, Denis Halliday, said the suspension was not intended to undermine young recruits or the Organization's career system. He was consulting with the Office of Legal Affairs on the issue and would present a compromise solution to the Secretary-General on the young professionals and their concerned Member States.

The Chairman of the International Civil Service Commission (ICSC), Mohsen Bel Hadj Amor, gave further explanations on the Commission's recommendations.

On the JIU, the representative of Brazil, also speaking for the Group of Latin American and Caribbean States, said that the Unit's budgetary and administrative independence, its leadership and its secretariat staffing should be strengthened. Cuba's representative said she did not understand why the United Nations Secretariat would deny the JIU the modest resource increases it sought while proposing many posts for the Office of Internal Oversight Service.

Highly competent inspectors should be elected into the Unit to ensure quality work by the JIU, Poland's representative said. The production of overlapping reports and the duplication of work should be avoided.

The JIU Chairman, Fatih Bouayad-Agha, responded to questions on the Unit's work.

The Committee will meet again at 10 a.m. Thursday, 7 December, to consider some aspects of the proposed 1996-1997 budget.

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Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to consider the question of normalizing the situation concerning South Africa's unpaid United Nations dues and the programme budget implications of a draft resolution on establishing peace and fashioning freedom, democracy and development in Central America. It is scheduled to conclude its debate on the Joint Inspection Unit (JIU) and the United Nations common system.

The Committee had before it a 4 December letter from the General Assembly President to the Fifth Committee Chairman (document A/C.5/50/1/Add.1), transmitting the plenary's decision to allocate to the Fifth Committee the agenda item on admitting the World Tourism Organization into the United Nations Joint Staff Pension Fund. It also transmits the plenary decision that, because of the political importance of the agenda item on the normalization of the situation concerning South Africa, the Fifth Committee should provide the plenary with technical observations on a related draft resolution, A/50/L.44, by 12 December.

The item's inclusion was first requested in a letter from South Africa dated 15 September (document A/50/231 and Add.1). An explanatory memorandum annexed to that letter noted that on 3 October 1994, South Africa paid $11 million to the United Nations Secretariat, its entire assessed contribution to both the regular and peace-keeping budgets from 23 June 1994, the date on which it resumed its seat in the General Assembly. However, there is a substantial amount due from South Africa as arrears that were accumulated during the apartheid era, during which time the representatives of the apartheid regime were excluded from participation in the General Assembly.

"The democratically elected Government, which took office over a year ago, remains confronted with an untenable situation: owing to the assistance of the United Nations the scourge of apartheid has been eradicated and the people of South Africa liberated", the letter states. "Yet, South Africa continues to be held liable for the arrears accumulated during the apartheid era." The letter concludes that South Africa's Government is confident that the Assembly would resolve the matter.

Under the terms of a draft resolution attached as an appendix to the request, the Assembly would decide that, owing to unique and exceptional circumstances, South Africa's unpaid assessments accruing up to 23 June 1994 for the regular and the peace-keeping budgets of the United Nations would be considered no longer due and payable.

The Secretary-General's statement on the programme budget implications of draft resolution A/50/L.17/Rev.1 on establishing peace and fashioning freedom, democracy and development in Central America (document A/C.5/50/36) states that should the text be adopted, an additional appropriation of

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$320,300 would be required in the section for peace-keeping and special missions of the proposed 1996-1997 budget. The sum would pay mostly for salary and common staff costs of two Professional and one General Service (other level) staff for 12 months in 1996.

According to the statement, should the General Assembly adopt the draft, the Secretary-General would take part in the negotiations between the Guatemalan Government and the Unidad Revolucionaria Nacional Guatemalteca. He would support the implementation of agreements that have already been reached by, among other things, supporting and guiding politically the United Nations Mission for the Verification of Human Rights and of Compliance with the Commitments of the Comprehensive Agreement on Human Rights in Guatemala (MINUGUA) with regard to monitoring and verification functions. The Secretary-General would also support the Mission of the United Nations in El Salvador (MINUSAL) in carrying out its verification and good offices functions and devise modalities to provide observers for the Nicaraguan electoral process in 1996.

Since those activities are of an extraordinary nature relating to maintaining peace and security, the Secretary-General says, they should be dealt with outside the procedures related to the contingency fund. (According to the provisions on the fund, revised estimates arising from the effect of extraordinary expenses, such as those related to maintaining peace and security, shall not be covered by the fund. The Secretary-General shall however try to absorb them through savings from the budget without causing any negative impact on programme delivery or without prejudice to the use of the contingency fund.)

The budget implication statement is being submitted to the Fifth Committee under rule 153 of the Assembly's rules of procedure which provides that the Assembly shall not vote on any resolution that could cost money until the Fifth Committee has had a chance to state the proposal's effects on the United Nations budget estimates.

Also before the Committee were the 1994 and 1995 JIU annual reports (documents A/49/34 and A/50/34) and those on a range of issues. They include the following: the JIU 1995 work programme, its preliminary work programme for 1996 and beyond and an addendum to that programme (document A/50/140 and Add.1), the Secretary-General's report on implementing JIU recommendations (document A/49/632); and the JIU reports and comments by the Administrative Committee on Coordination (ACC) on national execution of projects (document A/50/113 and Add.1), on the United Nations system support for science and technology for development in Africa and in Asia and the Pacific (documents A/50/125 and Add.1 and A/50/721).

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Other reports include those on communication for development programmes in the United Nations system (documents A/50/126-E/1995/20 and A/50/126/Add.1); sharing responsibilities in peace-keeping (document A/50/571); relationship between humanitarian assistance and peace-keeping operations (document A/50/572); relationship agreements between the United Nations and the specialized agencies on strengthening the common system of salaries, allowances and conditions of service (document E/1993/119 and Add.1); and the United Nations system common premises and services in the field (document A/49/629).

The Committee would also consider reports on accountability, management improvement and oversight in the United Nations system (document A/50/503 and Add.1); management in the United Nations: work in progress (document A/50/507); the advancement of women in the United Nations system (document A/50/509); efficiency and cost effectiveness in United Nations travel (document A/50/692); management of its buildings and the Secretary-General's comments on that report (documents A/49/560 and A/50/753); efforts to restructure the regional dimension of United Nations economic and social activities (document A/49/423); and managing works of art in the Organization (document A/50/742). The Committee would also consider reports on the Office of Internal Oversight Services and JIU comments. (For background, see Press Releases GA/AB/3045, of 21 November and GA/AB/3048, of 28 November.)

On the common system of salaries, allowances and conditions of service, the Committee had before it the 1995 report of the International Civil Service Commission (ICSC) (document A/50/30) and a statement by the Secretary-General on the administrative and financial implications of the Commission's decisions and recommendations (document A/C.5/50/24 and Corr.1). Also before the Committee were ACC statements (documents A/C.5/50/11 and A/C.5/50/29) and comments by the Coordinating Committee for International Staff Unions and Associations of the United Nations System (CCISUA) (document A/C.5/50/5) and by the Federation of International Civil Servants Associations (FICSA) (document A/C.5/50/24).

On staff remuneration at Professional and higher categories, the ICSC asks the General Assembly to reaffirm the continued applicability of the Noblemaire principle. It also recommends that the 115 desirable mid-point of the United Nations/United States net remuneration margin should be restored in 1996. To make the margin 15 per cent higher than the United States federal civil service remuneration, it recommends an increase in the base/floor salary scale, equivalent to 3.1 per cent, effective 1 March 1996, and an increase in post adjustment indices by 5.1 per cent, as of 1 July 1996. (For background, see Press Release GA/AB/3043, of 20 November.)

(The Noblemaire principle provides that salaries of staff at the Professional and higher categories in the United Nations system shall be set by reference to the highest paid national civil service. For that, the United

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States federal civil service has been used as the comparator. The margin is the average percentage difference between United Nations staff pay in New York and that of United States civil service in Washington. Base floor salary scale is a universally applicable scale for staff at the Professional and higher categories and reflects the minimum net sums received by United Nations staff around the world. Post adjustment index measures staff living conditions in a given location compared with costs in New York at a specific date. Post adjustment is a supplement to base pay and is calculated as a percentage of net base pay.)

Statements on JIU

MARCIO FAGUNDES (Brazil), also speaking for the Group of Latin American and Caribbean States, said the Fifth Committee had before it more than 20 documents from the JIU. Analysis of such a voluminous documentation required time and adequate expertise. Future reports should be listed under relevant agenda items to facilitate their substantive consideration and bolster their impact.

He expressed support for the Unit's opinion on the need for staff support and for attention to be given to the question of its budgetary independence. The Group supported the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) in its report on the proposed programme budget for the biennium. [In that report the ACABQ had recommended that the Secretary-General's budget proposal for the JIU in 1996-1997 should be considered in the light of a General Assembly resolution calling on the Unit to put more emphasis on inspection and evaluation. It requested the Secretary-General and the Unit to study and to report to the Assembly on how the Unit could enhance its inspection and evaluation of specific activities, such as peace-keeping, humanitarian assistance, operational activities for development and technical and financial matters. The need to strengthen the external oversight control mechanisms should also be considered. In that regard, the JIU had informed the ACABQ of its concern about the adequacy of staff resources submitted in the Secretary-General's budget proposal. The Advisory Committee had recommended that the Secretary-General should report on the steps taken and arrangements made to consider providing the Unit with extrabudgetary resources and support for specific activities.]

The Group commended the Unit for its efforts to improve its work programme and stressed the need to concentrate efforts on the actual follow-up and implementation of its recommendations as approved by legislative organs, he said. It shared the Unit's view that the main issues for consideration were the strengthening of the Unit's secretariat, the selection of inspectors, the Unit's budgetary and administrative independence and its leadership. It

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was crucial to allocate enough time and attention to the deliberations on measures to strengthen external oversight bodies, including the JIU, as mandated by the Assembly. The resumed session of the Committee offered a good opportunity for that purpose.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said her delegation had expressed its views through the Chairman of the Group of Latin American and Caribbean States and reserved the right to discuss the reports under the relevant agenda items. The JIU had made efforts to improve its activities, as recognized by several delegations. Member States had to ask whether they had had time to read the JIU reports and work on its recommendations. The JIU had still not met the expectations of Member States as it was not exercising all the powers in its statute. However, it should not go beyond the limit of its mandate or its recommendations would not be well-received.

There should be greater coordination between the JIU and the Office of Internal Oversight Services, she said. The separate functions and attributions of the external and the internal oversight should be maintained. The JIU and the Board of Auditors had been mandated to comment on the reports of the Oversight Office. She said she did not understand why the Secretariat would deny the JIU the modest increase in resources it wanted while providing many posts for the Oversight Office.

ADRZCJ CHUDY (Poland) said the production of overlapping reports and the duplication of work should be avoided. Highly competent inspectors should be elected to the Unit to ensure quality work by the JIU.

FATIH BOUAYAD AGHA, JIU Chairman, said the Unit was not and could not become a super unit with super inspectors capable of super action. Neither was it a sterile bureaucracy. It was an instrument for use by Member States to ensure control of waste and of mismanagement. Hence, the Unit was not popular; if it were, it would mean that it was not doing its job.

Responding to a number of questions and comments made by Member States, he said Japan's question as to why the Unit had not been included in the proposed 1996-1997 budget had been ignored by the Secretariat. Information requested on the Unit's standards and guidelines would be provided as soon as it was prepared. The Unit would try to examine the question of leadership. It was waiting for more information from the Secretariat before continuing its investigation of management-staff relations.

The system-wide investigation of geographical representation of staff, he continued, was a complex one and would be completed in time for the Assembly's fifty-first session. The card access system to Headquarters premises was being investigated by the Oversight Office. The study of

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appointments, placement and promotion would be submitted to the Fifth Committee at its resumed session. The report on science and technology in Latin America had to be postponed because of lack of staff.

Statements on Common System

ANDREA KIENLE (Germany) expressed support for the statements made at earlier Committee meetings by the representatives of the Republic of Korea and Japan on the Secretary-General's recent decision to suspend permanent and probationary appointments. That decision should be withdrawn as soon as possible as it would neither ameliorate the cash-flow situation nor create a sound management culture or trust in the personnel management of the Organization.

RENATE ARCHINI (Italy), expressing support for Germany's statement and previous statements on the matter by the Republic of Korea and Japan, said a decision to suspend the granting of permanent appointments for young people who had been recruited through national examinations was a cause for concern. The Secretary-General should reconsider that decision or make an exception for those young staff members in order to honour the Organization's obligations to them and to their Member States.

DENISE ALMAO (New Zealand), associating herself with previous statements, said it was unacceptable that there should be a breach of contractual arrangements with those staff members. She looked forward to a withdrawal of the decision.

RAFAEL MUNOZ (Spain) also supported Germany's statement on the suspension of permanent and probationary appointments and previous statements on the matter. He expressed the hope that the decision would be rescinded.

REGINA EMERSON (Portugal) said the Secretary-General should respect the Organization's commitments to the young staff members and their Member States and reverse the decision to suspend probationary and permanent appointments. The question of the ratio of permanent and fixed-term contracts should be discussed at a later date.

SAM HANSON (Canada), expressing support for the statements made, said entry level recruitment was the oxygen of any organization, and asked for the suspension of the decision.

BEL HADJ AMOR, Chairman of the ICSC, said that the United States civil service was no longer a monolithic system that could be adequately reflected in its General Schedule of pay levels. The service had more than 100 separate pay systems, many of which had rates 30 to 40 per cent higher than the General Schedule. Those systems were established to counter the Schedule's recruitment and retention problems arising from its lack of competitiveness in

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the United States labour market. The Federal Employees' Comparability Act of 1990 had been intended to solve the problem. If it had been implemented, the comparator's recruitment problems would have been reduced. Net remuneration comparisons with the higher salaries legislated under the Act would have reduced related problems in the United Nations common system. As the Act had not been implemented, the comparator's General Schedule of pay levels remained uncompetitive. Salaries in that Schedule enabled the comparator to normally recruit staff from the lowest quartile of the labour market.

Regarding the Noblemaire principle, he said the ICSC had reached a consensus position and it was important to concentrate on the recommendations or decisions of the ICSC that reflected that position. The Commission had gathered relevant data and reported to the General Assembly on the issue of identifying the best-paid national civil service. The chapter was closed on the studies on that matter although the ICSC would continue to monitor the German/United States total compensation relationships.

Regarding the recommendation to restore the net remuneration to the desirable mid-point of 115 in 1996, he said the Assembly, in resolution 40/244 of 18 December 1985, had approved the range of 110 to 120, with a mid-point of 115. That mid-point had remained over the years and had been confirmed by the Assembly in successive resolutions. An increase in the New York post adjustment, due in November, would not lead to related increases at other duty stations. The November increase would only apply in New York. The post adjustment system required constant review. The ICSC would report to the Assembly on the findings of the working group on the operation of the post adjustment system.

He said the ICSC was not convinced of generalized recruitment problems. However, it had not been able to show whether the United Nations could in fact recruit the brightest and the best as required by the Charter. Productivity gains should go hand in hand with improvements in conditions of service. More should be done to enhance it in the United Nations system, and the ICSC had made its contribution on the matter through its policy recommendations. No one should assume that improved salary levels would be counter-productive or run counter to management reforms. The next review of the methodology for establishing the remuneration for General Service and related categories was scheduled for 1997.

DENIS HALLIDAY, Assistant Secretary-General for Human Resources Management, addressing the issue of recruitment and retention of staff in the common system, referred to a 1994 study providing an analysis of experience for 1989 to 1993 provided to the ICSC. That study had looked at: turnover of staff by voluntary departures; the qualifications for United Nations vacancies; the number of applicants declining offers of appointments; and the rate at which the organizations were hiring staff above the mid-point of their respective salary scales.

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He said the data showed: 736 voluntary departures in nine organizations; more than 950 vacancies in eight organizations; 234 appointments above the mid-point of the scale in seven organizations; and 83 offers refused in five organizations. It was clear that increasingly the compensation did not attract the best and the brightest from the Organisation for Economic Cooperation and Development (OECD) countries and other countries which had competitive salary scales, he said.

One conclusion drawn from the study was that the United Nations common system had a greater turnover than the United States federal civil service, he continued. One third of all departures were voluntary, with 89 per cent of those cases of resignations and non-acceptance of contract renewal. Resignations and non-acceptance of contract renewal and early retirements occurred on average after six years of service. Voluntary departures were most critical at the P-4 level and above, particularly by nationals from the Western European and other Group and in the administrative, technical, scientific and medical areas. On average there were 44 applications for each vacant post and only 3.3 candidates were qualified for each vacancy, according to the study. Also, there were serious recruitment problems for numerous occupational groups and for some nationalities in other international organizations, such as the World Bank.

Regarding special salary rates, he said the United States federal service had resorted to special pay rates. By 1989, some 11.5 per cent (150,000) of all federal civil servants (1.4 million) were paid at those special rates. An argument could be made, in terms of the Noblemaire principle, for comparing United Nations remuneration for each relevant occupational group directly with those federal civil servants paid at the highest special rate in United States Government agencies, such as the Federal Reserve Board and the General Accounting Office. If those United States special pay rates were compared to those of the United Nations, the United Nations equivalent pay level would be way below some of those bodies.

Turning to the issue of permanent contracts for probationary contract holders, he said the issue would have an impact on the Organization's future, since it affected young staff members. Any action taken that would undermine those young recruits was of concern. The Secretariat had underestimated the reactions to the suspensions regarding the young probationary contract holders. The suspension was not intended to undermine them or the Organization's career system. The Organization must have a core of permanent contracts, which would allow it to be well managed over a long period. However, the granting of permanent contracts was one of the few advantages the Organization offered among other international organizations, and which set it apart from many other international organizations such as the World Bank and the OECD.

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Noting that numerous approaches had been made to his office by Member States on the issue, he said the decision was not an abdication of the Organization's commitment to long-term goals. Management was consulting with the Office of Legal Affairs on the issue and would present a compromise solution to the Secretary-General with regard to the cases of the young professionals and the concerned Member States. He expressed the hope that in the near future there would be some policy proposals on the issue of the ratio of permanent to fixed-term contracts.

Normalization of Situation Concerning South Africa

YUKIO TAKASU, United Nations Controller, said South Africa had total unpaid assessed contributions for the regular budget of $51.9 million for the period 30 September 1974 to 31 December 1993. The prorated portion of its total 1994 assessment of $4.2 million for the period 1 January 1994 through 23 June 1994 was to be about $2 million. Any decision to make the dues owed for the period through 23 June 1994 no longer payable would waive a total of $53.9 million.

He said that outstanding contributions for previous bienniums represented funds owed against approved budgets, which had already been spent. When Member States did not pay those dues in full, the cash needed for such expenditures had had to be borrowed from the Working Capital Fund and the Special Account, sources of permanent reserves, after suspending some financial regulations. In response to the higher levels of unpaid dues and the depletion of cash, the General Assembly had decided to suspend financial regulations in order to retain budgetary surpluses at the end of bienniums. The net sum kept in that fashion was now about $122.2 million, all of which would be returned to Member States when finances improved.

Should the Assembly approve the draft resolution and waive South Africa's unpaid dues for the regular budget for the period from 30 September 1974 to 23 June 1994, Member States would be waiving their rights to their respective shares of the $53.9 million of the surpluses for the 1986-1987 biennium, he said. Regarding the Working Capital Fund, he said South Africa had paid $160,000 of its $410,000 assessment for that Fund. To maintain it at the authorized level of $100 million, South Africa would have to pay the $250,000 it owed. The draft text would not affect the country's liability to contribute its full share to that Fund.

For peace-keeping budgets, South Africa owed total dues of $35.6 million for the period 30 September 1974 to 31 December 1993, he said. The prorated portion for the period through 23 June 1994 would be some $5.3 million. If the country's peace-keeping dues for the periods before 23 June 1994 were no longer payable, some $40.9 million would be permanently waived. Should the Assembly approve the draft text to waive the payment of those dues, without specifying how to offset them, Member States would either be assessed

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$40.9 million or permanently waive their rights to their respective shares of the total surpluses already retained.

PRAYONO ATIYANTO (Indonesia) called for further guidance on the matter.

MANUEL TELLO (Mexico) said that he had informed his Government of the depth of the problem of the current financial crisis. The Government did not seem to understand the gravity of the situation. Yet, while there was a grave financial situation, there was now a draft resolution to forgive the debt of one Member State. That resolution was also directed towards the non- application of Article 19 of the Charter. The Secretariat had also sought approval for a salary raise of almost 10 per cent. All of those were very confusing for his Government.

How could the United Nations propose a resolution to waive the debt of a well-endowed country while the Organization was facing a crisis, he asked. That country had the resources to have produced and destroyed nuclear weapons. How could it now be seeking the non-application of Article 19? If the Article was suspended in that case, it should not be restricted to just one case, but applied to all varieties of countries. Mexico could not accept applying Article 19 to some countries and not applying it to others.

The information contained in the statement from the Controller should be regarded as official rather than informal, he said. A recent United Nations report had stated that South Africa owed more than $100 million. Its debt was dropping and had fallen to only about $94.8 million recently. The Committee should allow six to eight months to lapse and then perhaps South Africa's debt would disappear.

One way out would be for the debt to be borne by the 91 sponsors of the draft resolution, he continued. If that were the case, he would have no objection. He expressed surprise that the resolution was also sponsored by the largest debtor to the United Nations. He needed instructions from his capital before proceeding to a consensus. It would be a bad start for the next 50 years for the United Nations to write off debt, envisage not applying Article 19 and increase pay at the wrong time. Mexico was itself facing a financial crisis, having deferred obligations of more than $30 billion. He asked who would assume South Africa's debt, the sponsors of the text or all Member States?

HO TONG YEN (Singapore) said his country had co-sponsored the draft text and sought some clarifications from Mr. Takasu regarding the period the waiver would apply to.

HISHAM ELZIMAITY (Egypt), one of the co-sponsors, said he was ready to adopt the draft text to redress a situation that had ended last year, happily. It should be adopted.

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ESPEN RONNEBERG (Marshall Islands), a co-sponsor, said the arrears of the apartheid regime should be considered uncollectible. It should not be a precedent that would be selectively applied in future.

ARTURO LACLAUSTRA (Spain), speaking on behalf of the 15-member States of the European Union, said that the informal paper served as the basis for the Committee's technical observations. The substantive matter would be taken up directly in plenary. There were legitimate questions from Member States which should be answered. The Union would take part in the informal consultations due tomorrow on the matter.

ANUSON CHINVANNO (Thailand) asked why the amounts would be offset against budgetary surpluses from 1986 and 1987.

MARY JO B. ARAGON (Philippines) said her Government had decided to join in co-sponsoring draft resolution L.44 that would go before the General Assembly.

NARCISSE MALAN (Côte d'Ivoire), a co-sponsor, said that the problems raised and the comments by Mexico were not consistent with the logic used to establish the Organization. Up to 1994, South Africa had not taken part in the Organization. It would be a proper gesture to waive those debts. The decision should be made for reasons of fairness and equity, not from the standpoint of the current financial crisis.

TRUGGVE GJESDAL (Norway) said he supported the technical options for waiving South Africa's unpaid contributions. It should be possible to convey to the Assembly the gist of the Committee's technical observations made today.

SOONG CHUL SHIN (Republic of Korea) said his Government had decided to co-sponsor the draft resolution.

Mr. TAKASU, United Nations Controller, said the document he had submitted on the matter was an informal note. When the Assembly's plenary decided to submit a draft resolution on the normalization of the situation concerning South Africa, it requested the Fifth Committee to provide technical advice on the matter. In turn, the Fifth Committee's bureau requested the Secretariat to provide an informal note. The note contained official accurate data. Different amounts on South Africa's debt were quoted in other official documents. Such figures were a result of the fact that the amount stated in today's informal note was limited to a certain period -- up to 30 June 1994.

Regarding the treatment of budgetary surpluses, he said such surpluses had to be credited to Member States. However, in view of the high level of outstanding contributions, the Assembly had suspended Member States' applications for that surplus, even though it still belonged to them. On the choice of the 1986-1987 biennium, it was chosen because that biennium was

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stated in the draft resolution. To realize the amount to cover the debt owed by South Africa, the period with the equivalent amount of surplus was chosen, which was the 1986-1987 biennium.

Mr. TELLO (Mexico) welcomed the fact that South Africa's debt would be assumed by the co-sponsors of the draft resolution. The informal note had been requested so that Member States could find out how much they were giving up if the draft resolution was adopted. According to the note, Member States would be permanently waiving their rights to their respective shares of the surplus of $53.9 million for the 1986-1987 biennium. What was the procedure for Member States to waive their rights permanently to funds which would be accredited to them? he asked. Were they expected to send a note to the Secretary-General?

DAUDI MWAKAWAGO (United Republic of Tanzania), speaking as a co-sponsor, said the issue of waiving South Africa's debt was a matter of principle. Regarding the link made by Mexico between co-sponsorship and the settling of the debt, he said such a position was unprecedented. In that connection, he asked to see the relevant regulation. It was the first time that he had heard that if a Member State co-sponsored a resolution that it would be responsible for payment.

SAM HANSON (Canada) said the monies referred to were expenses of the Organization. At the time of apportionment of Member States contributions no distinction was made between Member States. He was concerned about any statement that tried to confine the responsibility only to co-sponsors of the draft resolution.

Mr. TELLO (Mexico) said his country had cordial relations with South Africa, but the issue of waiving its debts meant that a precedent was being established for the first time in 50 years. Mexico was not a co-sponsor of the draft resolution because, until yesterday, it did not know what it would cost Member States. Now they knew. He did not have the authorization to join as a co-sponsor and give up financial gains. Even though the draft text stated that a precedent was not being set, all Member States knew that was the case. Mexico was not in a position to co-sponsor a draft of that kind, since it undoubtedly set a precedent that could be invoked by any Member States in the future.

AMMAR AMARI (Tunisia), the Acting Chairman, said the Committee was not taking action on the draft. It had been submitted to the Committee for technical observations. Those observations would be sent to the Assembly for its consideration.

Mr. TAKASU, United Nations Controller, said the basis for the Secretariat's reference to the waiving of Member States' rights to their respective shares of the $53.9 million was done in relation to paragraph one

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of the draft resolution, which made specific reference to the budgetary surplus for 1987. There was only one way to reduce the budgetary surplus and that was to return to Member States their share.

Mr. TELLO (Mexico) said that when there were surpluses in the United Nations budget, the Secretary-General sent written notification to Member States. In response, Mexico had asked the Secretary General to have its share of those amounts allocated to future payments by Mexico or that the amounts be assigned to his country's debts to the Organization. Would each Member State be requested to make the decision regarding the waiving of repayment of budgetary surpluses? he asked.

Mr. TAKASU, United Nations Controller, repeated that when there was a surplus it was returned to Member States. However, over the years the Assembly had decided to suspend that rule, in light of the Organization's serious financial situation. He repeated his statements regarding the surplus in relation to the proposal as stated in the draft resolution. He had given the amount that Member States would receive if the surplus were to be returned. He added that Annex I of the Secretariat's informal note was just an indication of what Member States would receive.

Mr. TELLO (Mexico) said that for the regular budget, the indicative sums would not require a communication to the Secretary-General about the waiver of those amounts. What would happen to the amounts related to the peace-keeping special accounts? he asked.

ISTVAN NATHON (Hungary) said that by choosing the period in question in which surpluses had been accumulated, the Secretariat was indeed introducing an element of discrimination among Member States.

MICHEL OBLIN (France) said that the matter was very complicated. He was ready to hold discussions that would lead to a harmonious solution. The issue of formalizing the waiving of money owed was important for many States. When money was waived some internal formalities had to be considered, as the question would be regarded as new assessments in some countries and should be supported by formal reports.

Mr. HANSON (Canada) said that his delegation had decided to co-sponsor the draft because of its unique nature. South Africa had been excluded from the Assembly's work for 20 years and there should be "no taxation without representation". The Committee was dealing with the consequences of a decision that the Assembly had taken for all Member States and they should all bear them.

PHILIP OWADE (Kenya), one of the co-sponsors of the draft, said that the situation was unique and should not be a precedent. He did not foresee a situation in which there would be another apartheid or where a country would

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be suspended from the Assembly's work. He had, therefore, joined in sponsoring the resolution before the Assembly. The Committee was supposed to discuss the technical aspects of the resolution.

Mr. TAKASU, United Nations Controller, said that his paper had included the likely amounts that States would offset in relation to waiving South Africa's unpaid dues. They were largely indicative. The most recent budgetary surplus would be used, as there was no other one that would be used.

Mr. AMARI (Tunisia), the Acting Chairman of the Committee, proposed that the Committee decide to authorize its Chairman to relay the technical advice contained in the Secretariat's informal note.

Mr. TELLO (Mexico) said he wanted time to consult his Government on whether it was ready for the waiver. He needed at least 48 hours. He had noted the Controller's emphasis that the document he had presented was not an official document, but an indicative one. In an annex to it, assigned amounts to be offset against surplus included some States that no longer existed. The Ukrainian Soviet Socialist Republic and the Union of Soviet Socialist Republics, for instance.

Mr. LACLAUSTRA (Spain), also speaking for the European Union, said that the exchange of views was a good framework for informal consultations on the matter, which would allow the Committee to formulate its technical observations on the substantive matter.

Mr. AMARI (Tunisia) the Acting Chairman, said that the issue would be submitted to informal consultations. It would be taken up next week so as to submit a decision to the Assembly. The question of admitting the World Tourism Organization to the United Nations Joint Staff Pension Fund would be discussed next week, he said.

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