FIFTH COMMITTEE APPROVES TWO DRAFTS INVOLVING $16.2 MILLION GROSS EXPENDITURE ON INTERNATIONAL TRIBUNALS FOR FORMER YUGOSLAVIA AND RWANDA

21 December 1995

Press Release
GA/AB/3059/Rev.1*

FIFTH COMMITTEE APPROVES TWO DRAFTS INVOLVING $16.2 MILLION GROSS EXPENDITURE ON INTERNATIONAL TRIBUNALS FOR FORMER YUGOSLAVIA AND RWANDA

19951221 Also Approves Six-Part Text on Pattern of Conferences, Budgetary Implications Relating to Burundi Situation, Follow-up to Women's Conference

The General Assembly would appropriate some $16.2 million gross for the International Tribunals for the former Yugoslavia and Rwanda for the first quarter of 1996, should it adopt two draft texts approved late last night by the Fifth Committee (Administrative and Budgetary) as it discussed the funding of those judicial bodies.

The meeting also approved a six-part draft resolution on the pattern of conferences and budgetary implications in relation to the situation in Burundi and of the follow-up to the Fourth World Conference on Women. In addition, the Committee discussed a draft text that would have the Assembly temporarily exempt Iraq from the provisions of the Charter's Article 19. It then considered the financing of the United Nations Assistance Mission for Rwanda (UNAMIR), 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. It also discussed revised estimates in the second performance report on the 1994-1995 budget.

By the terms of the drafts on the Tribunal, the Assembly would:

-- appropriate $8.6 million gross ($7.6 million net) for the Yugoslavia Tribunal and apportion $4.3 million gross ($3.8 million net) for the period 1 January to 31 March among Member States according to the scale of assessments for 1996;

-- appropriate $7.6 million gross ($7.1 million net) for the Rwanda Tribunal and apportion $3.8 million gross ($3.6 million net) for the same period according to the same scale.

_---------_ * Revised to incorporate sub-head on page 7 and paragraphs inadvertently omitted on page 12.

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The draft text on pattern of conferences would, among other things, have the Assembly request the Secretary-General to develop quickly a cost- accounting system for conference services and would encourage the Secretariat to continue improving the cost effectiveness of document production. It would also ask the Secretary-General to propose to the Assembly's next session how to facilitate developing countries' access to the optical disk system.

Regarding the follow-up to the Beijing Conference, the Fifth Committee decided to inform the Assembly that should it adopt draft resolution A/C.2/50/L.64, an appropriation of not more than $356,600 would be required for the Department for Policy Coordination and Sustainable Development in the proposed 1996-1997 budget. It would cover the costs of the three new professional posts the Secretary-General would establish as from 1 January 1996. Gone is the $240,000 he had sought for the travel and subsistence costs of a 15-member high-level board of eminent persons that would advise him on implementing the Conference's Platform for Action.

As for the budgetary implications relating to the situation in Burundi, the Assembly would be informed that should it adopt draft resolution A/50/L.59, an appropriation of not more than $1.9 million would be required in the 1996-1997 proposed budget's section for peace-keeping and special missions. The sum would be considered in the context of the proposed 1996- 1997 budget.

During discussions on the final appropriations for 1994-1995, the issue of the Working Capital Fund was raised by the United Kingdom's representative, who said it was unacceptable that troop-contributing States had in the past two years covered a Member State's regular budget deficit despite its ability to pay. To ensure that the situation would not continue, he proposed that the Fund's rules be amended to limit the authority for internal borrowing to six- month periods and to restrict the rules on borrowing from peace-keeping accounts to cover the regular budget.

The representatives of Canada, Belgium, France, Spain, Cuba, the Czech Republic, Algeria, the Netherlands, Norway, Kenya, Singapore, India, Indonesia, Malaysia and Uganda made mostly positive comments on the United Kingdom's proposal.

While introducing his draft text, Iraq's representative said he had asked for a vote on the matter after making several efforts to have the issue resolved. The Committee Chairman said the text would be acted on tomorrow.

The Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), C.S.M. Mselle, introduced his Committee's views. The United Nations Controller, Yukio Takasu, introduced the views of the Secretary-General.

The Committee is scheduled to meet again at 11:30 p.m., tomorrow, 21 December, to take action on all outstanding draft texts, approve a budget for 1996 and 1997 and close its regular session.

Performance Report on 1994-1995 Budget

The Secretary-General's second performance report on the 1994-1995 budget (document A/C.5/50/21) presents estimates that show an increase of almost $22 million net over the revised appropriations and estimates of income approved by the General Assembly in December 1994, raising the final 1994-1995 expenditures to $2.64 billion. The net increase is the result of increases of $26.7 million in expenditure and of $4.8 million in income.

The anticipated final level of spending and income for the biennium is based on actual expenditures for the first 18 months, projected requirements for the last six months, changes in inflation and exchange rates and cost-of- living adjustments. Those changes are compared with the assumptions in the first performance report that formed the basis for the revised appropriations and estimate of income for 1994-1995.

C.S.M. MSELLE, Chairman of the ACABQ, said that it welcomed new elements of analysis of financial performance. The performance report on the 1994-1995 budget should have been supported by more information on other expenditures. Supplements to the report on the programmatic aspects would be submitted later for the consideration of the Committee for Programme and Coordination (CPC). The ACABQ expected a $21.9 million net increase to be seen. The projected expenditure would raise the expenditures for the biennium to $2.63 billion gross ($2.2 billion net). The net increase would show the effects of changes in exchange rate and inflation assumptions, which are offset by other items such as variations between actual and assumed vacancy rates and variances between actual salary averages and those assumed in the revised appropriations and increase in income.

Mr. Mselle said the Secretary-General should be told to define clearer criteria for unforeseen and extraordinary expenses, which should not be used to fund posts permanently. The Advisory Committee had been informed that the actual expenditure for the biennium was about $2.3 billion, including some unliquidated obligations. Some of those obligations, worth some $5 million, would be cancelled. The income increase of $5.7 million reflects mainly the adjustment for exchange rates in respect of General Service salaries. The ACABQ recommended a cut of $2.6 million under the expenditure sections for the biennium 1994-1995.

The Fifth Committee Chairman, ERICH VILCHEZ ASHER (Nicaragua), proposed a draft decision that would have the Committee approve $2.63 billion as final expenditures for the 1994-1995, as adjusted by the ACABQ.

WILLIAM GRANT (United States) said the action proposed should be clarified as to whether it would lead to an increase in appropriations or assessments on Member States.

SAM HANSON (Canada) wanted clarification of how the general service vacancy rate was twice what had been budgeted. How many professional posts had been vacant for more than one year? Why was the United Nations losing

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money on revenue-generating items? A breakdown of those activities should be provided. It was strange that the sale of postage stamps was down in the fiftieth anniversary year of the United Nations, and he wanted to know the cash position by the end of the year.

YUKIO TAKASU, United Nations Controller, said that a net appropriations increase would lead to an additional $21.9 million to be assessed on Member States and included in the assessment for 1996. The reason for the increase was due to many factors as the ACABQ Chairman had indicated. There were two major factors. One was currency fluctuations. The exchange rates between the United States dollar versus the Swiss franc, for instance, had moved down and that led to more than a $45 million increase in expenditures. The other was that while the Assembly had provided the commitment authority, it had done so without providing for the necessary appropriations. Efforts had been made to reduce costs but not enough to totally offset those increases and unfunded mandates. According to financial regulations, the supplementary appropriations would be added to next year's assessments.

Regarding the vacancy factor for Professional posts, the global average rate was 6.2 per cent, and 1.6 per cent for General Service. It was lower in New York, being 3.8 per cent average for Professional and 0.5 per cent for General Service staff. That reflected the so-called lapse factor, when a staff member left the United Nations and a new one did not take his or her place. The rates differed from duty station to duty station. The number of posts kept vacant for more than six or 12 months would be provided to the Committee. Regarding public service, as set out in the income section, those included the postage service, sale of publications, garage operations and Visitor Services. The last was always a deficit operation but was useful in promoting the public's understanding of the United Nations. Garage operations and publications were producing income. The sale of United Nations stamps showed a slow increase compared with costs. The matter would be reviewed so as to make the sale of philatelic items really revenue-producing. Cash at the end of the year would be a negative of close to $200 million for the regular budget -- $185 million to $195 million. The regular budget was barely managing, through internal borrowing from the peace-keeping operations.

WILLIAM GRANT (United States) said his Government opposed the revised estimates which would increase appropriations from $2.608 billion or $26.8 million (gross) overall. The United Nations should absorb the full amount of the $26.8 million increase. In other words, it should maintain the 1994-1995 appropriations at the current approved level of $2.608 billion. Most of the increase was attributable to exchange rates ($45.7 million) and inflation ($7.3 million). In the same way that Governments are often asked to do in their national budget, the Organization should absorb a substantial share of the increase.

By absorbing roughly one-half of those costs, the revised estimates would be straight-lined at the current approved level. Also, there would be no additional (retroactive) assessments on Member States to cover the increase. He asked if the Secretariat had taken a number of actions into

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account to mitigate the effects of continuing exchange rate fluctuations, as had been done successfully by a number of United Nations agencies. For the United States, the 1994-1995 revised estimates was at $2.608 billion. Anything above that level must be absorbed.

The Chairman asked if the United States was therefore objecting to the draft decision.

Mr. GRANT (United States) said he could not support anything that meant an increased assessment.

NICK THORNE (United Kingdom) said he would address the issue of the working capital fund. After widespread consultations with other troop- contributing Member States about the unacceptable practice whereby troop contributors had, in the past two years, effectively covered the deficit of a particular Member State on the regular budget. That situation had continued, despite the ability of the Member State in question to pay, and the fact that it had no dispute about its level of contribution to that budget. It was unacceptable that a debtor State was allowed to increase its arrears year after year with no constraint or penalty. Member States could not accept the continuation of that pattern in the next biennium.

He would propose amendments to the regulations for the Working Capital Fund which were designed to bring clarity to the situation regarding internal borrowing and require the Secretary-General to report on the relevant activities. He then read the following amendments: restrict the authority for internal borrowing to six-month periods -- the special account must be drawn on as a last resort; restrict the existing rule covering the practice of internal borrowing which dates from 1958; and the Secretary-General should publish regularly the details of what the Secretariat owed to troop- contributors. He stressed that there was wide support for those amendments; there was no intention to precipitate a cash crisis in the Organization.

SAM HANSON (Canada) said the practice of internal borrowing had in recent years assumed disquieting proportions. It was disturbing to see that troop-contributors were being penalized two or three times over to cover debtors, particularly one Member State which failed to pay assessed contributions. He welcomed the proposal that would clarify what was being done with the transfer and borrowing of funds, allow more transparency and ensure more control of the relevant Member States.

PETER MADDENS (Belgium) said he supported the proposal of the United Kingdom's representative.

MICHEL OBLIN (France) said internal borrowing from the peace-keeping budget was a way of increasing Member States' deficits. There was need for greater transparency and less confusion regarding internal borrowing. The transfer of funds from the peace-keeping budget to the regular budget introduced confusion. Stressing that the rules of borrowing had lost their meaning, he expressed strong support for the United Kingdom's proposal.

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TOMAS RAMOS (Spain) said he was not yet able to study the proposals but when he did he believed he would support them.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said she had taken note of the proposal and, although she shared the concerns of the troop-contributing countries, the proposal would have little impact on the negligence of the major contributor. However, it would contribute to the difficulties that the Secretary-General faced in managing the Organization in these very difficult times.

IVO SRAMEK (Czech Republic) said he was concerned about internal borrowing from the peace-keeping account. That was not the best way to deal with the financial crisis. He supported the United Kingdom's proposal to keep the level of internal borrowing under control.

LARBI DJACTA (Algeria) said the United Kingdom's proposal was new and would change the procedure of the United Nations, and could even bind the Secretary-General's hands. While sharing the concern of the troop- contributing States, that was not an appropriate formula and the Secretary- General should be given room to manoeuvre to manage the Organization, especially in the current difficult time. He would not support the proposal.

P.A. MENKVELD (Netherlands) said, in response to the United States statement on finalizing the 1994-1995 budget, that a prior biennium's final appropriations had been settled previously. There was still a positive balance for 1992-1993 which exceeded the amount needed for the final 1994-1995 appropriations. He asked if the additional appropriations would be set off against a positive balance from an earlier biennium.

He expressed support for the proposals of the United Kingdom. It would not affect the Secretary-General's room for manoeuvre. If that happened, it would be due to the action of some Member States. He asked what was the feeling of the Secretariat on the issue?

KJERSTI RODSMOEN (Norway) said his country, as a troop-contributing State, shared the concerns of those who had supported the British proposal. The growing problem of troop contributors bearing ever larger financial burdens should be tackled.

PHILIP OWADE (Kenya) said that his country, as a troop-contributor, needed more time to examine the British proposal, particularly on how it would affect operations of the United Nations, before it could take a position.

HO TONG YEN (Singapore) said his country sympathized with troop- contributing States who should be paid their money as soon as possible, especially those who had paid up their dues. Any measure that might lead to a shutting down of the United Nations operations should be considered carefully.

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VIJAY GOKHALE (India) expressed support for the British proposal.

The CHAIRMAN said the proposal would be considered tomorrow in the context of the proposed 1996-1997 budget.

PRAYONO ATIYANTO (Indonesia) said he reserved his right to speak later since he did not have instructions on the matter.

ADNAN ZULKIFLI (Malaysia) expressed concern about the internal borrowing which had prevented troop-contributing States from being reimbursed. He could support the proposal of the United Kingdom.

NESTER ODAGA-JALOMAYO (Uganda) said the issues raised by the Netherlands should be answered by the Secretariat.

Mr. TAKASU, the Controller, said the 1992-1993 account had been different from 1994-1995 as there had been savings at that time, which had then been used to partly cancel the deficit for 1991, with the remainder being credited to Member States. The biennium 1994-1995 was different as the United Nations had spent more than what had been appropriated due to currency fluctuations and unfunded mandates for the United Nations Human Rights Verification Mission in Guatemala (MINUGUA) and the International Civilian Mission to Haiti (MICIVIH). The Secretary-General had been granted commitment authority without appropriations. The sum of $21.9 million was being sought to cover the additional expenditures. If there was no funding, the Secretary- General could not carry out activities for those missions and he would be forced to decide based on how the matter was disposed of.

Mr. MENKVELD (Netherlands) asked the Secretariat to answer questions regarding the United Kingdom's proposal.

Mr. THORNE (United Kingdom) said there should be at least a brief reaction from the Secretariat.

Mr. TAKASU, the Controller, said there were new elements in the United Kingdom's proposals. The Working Capital Fund had been set up to enable the operations of the United Nations to continue. Whenever money was borrowed from peace-keeping operations to support the regular budget, it was reported. If the new proposal was accepted it would tighten discipline and make the Secretariat borrow as an act of last resort. The United Nations intended to continue the inter-fund borrowing as a last resort. It owed about $1 billion to troop-contributing States and it was not envisaged that all of that would be paid in the near future. The United Kingdom's proposal would not completely shut the doors of the Organization.

Financing of UNAMIR

Mr. TAKASU, the Controller, introduced the Secretary-General's report on UNAMIR.

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The Secretary-General's report on the financing of UNAMIR (document A/50/712) requests the Assembly to appropriate $8.6 million gross ($8.4 million net) per month and to assess that amount for the period from 1 January to 30 June 1996 for the maintenance of UNAMIR, subject to the extension of its mandate by the Security Council. For the period from 10 June to 31 December 1995, the Assembly is requested to reduce the appropriation to $96.7 million gross ($94.9 million net) from the prior amount of $110 million gross ($107.6 million net) based on revised cost estimates for the period and subject to the extension of the mandate beyond 8 December. (The Council has granted a final extension of UNAMIR's mandate until 8 March 1996.)

The Secretary-General also requests the Assembly to set off against future assessments on Member States their respective share of $2.9 million gross ($2.6 million net), representing the balance of the assessment of $99.6 million gross ($97.5 million net) already made for the period from 10 June to 8 December 1995. The Assembly is also requested to credit Member States the unencumbered balance of $20.7 million gross ($20.2 million net) for the period from 10 December 1994 to 9 June 1995 against their future assessment relating to any mandate period approved by the Security Council.

Mr. MSELLE, the ACABQ Chairman, said that the Advisory Committee had been informed that the revised cost estimates for June to December 1995 had included two additional posts. The number of D-1s would increase from two to four. The Committee did not object to the two new posts. The Secretary- General's request for a reduced $96.6 million gross should be approved. The ACABQ had recommended that $32.3 million gross ($31.8 million net) should be appropriated and assessed for UNAMIR through 8 March 1996.

The ACABQ had decided to ask the Secretary-General to recommend how to dispose of UNAMIR's assets.

ELISABETH KORNFEIND (Austria), speaking for her colleague Maria Rotheiser, who would conduct informal consultations on the question, called for suggestions on bilateral bases.

PATRICIA HOLLAND (United Kingdom) asked for Mr. Mselle's comments in writing.

Financing of UN Peace Forces in former Yugoslavia

Mr. TAKASU, the Controller, introduced the Secretary-General's report on the United Nations peace forces. The financial authority for the forces would end at the end of the month, he said. He reviewed for the Committee some of the Security Council actions on the missions.

The Secretary-General's report on the financing of UNPROFOR, UNCRO, UNPREDEP, and the United Nations Peace Forces in the former Yugoslavia (document A/50/696/Add.3) asks the General Assembly to authorize him to commit

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$89.5 million gross ($87.9 million net) monthly from 1 January to 31 March 1996 and assess $89.5 million gross ($87.9 million net) for one month.

The sums would be to maintain UNPREDEP, to liquidate UNPROFOR and UNCRO, and for the new missions in Croatia and Bosnia and Herzegovina that would be authorized by the Security Council for the three-month period.

The total resources of $4.79 billion gross ($4.76 billion net) was appropriated or authorized for those operations from 12 January 1992 to 31 December 1995.

Mr. MSELLE, the ACABQ Chairman, said that the Advisory Committee had felt that the amounts the Secretary-General sought for the first quarter of 1996 were tentative estimates at best. The ACABQ had recommended that the Secretary-General should review the staffing requirements, taking into consideration ongoing changes and with a view to rationalizing all requests for staff. It had also recommended that the Assembly authorize the Secretary- General to commit $100 million for 1 January to 31 March 1996. The Secretary- General had asked for $89.5 million gross to be assessed for one month. The ACABQ had recommend that, should the amount be insufficient, the Secretary- General could seek additional assessments.

Mr. OBLIN (France) said there seemed to be discrepancies between the requests for assessments of about $89.5 million for one month as contained in the Secretary-General's report and the assessment of a similar amount being sought for three months. That should be clarified.

Mr. TAKASU, the Controller, said that the Secretary-General's report had sought commitment authority for three months of about $268 million and that one month be assessed as there were unencumbered balances in the missions' accounts.

ERIK HAMMARSKJOLD (Sweden) called for bilateral comments on proceeding with the issue.

KLAUS STEIN (Germany) said the issues raised by France had not been cleared up. There was a discrepancy between the assessment sought in the report and that in a draft decision circulated by the Fifth Committee Chairman, which had sought assessments for the three months.

Mr. TAKASU, the Controller, said that the report had sought assessment for only one month. The Secretary-General had proposed commitment authority of about $89.5 million monthly for three months and the assessment of only one month's $89.5 million. The ACABQ had recommended $100 million instead of about $268 million the Secretary-General had sought.

Ms. HOLLAND (United Kingdom) said Member States could decide what to grant as commitments and as assessments. She was satisfied with the draft decision as it stood. The Committee could decide whatever figure to approve.

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Financing International Tribunal for former Yugoslavia

The Committee Chairman, Mr. VILCHEZ ASHER (Nicaragua), introduced the draft resolution A/C.5/50/L.16 on the International Criminal Tribunal for the former Yugoslavia.

By that draft resolution (document A/C.5/50/L.16), the Assembly would decide to appropriate to the Tribunal's Special Account an amount of $8.6 million gross ($7.6 million net) for the period from 1 January to 31 March 1996 to allow the Tribunal to continue its activities through 31 March. It would decide, as an ad hoc and exceptional arrangement, that Member States would waive their respective shares in the remaining credits arising from previous UNPROFOR budgets in the total amount of $4.3 million gross ($3.8 million net). By that decision, they would accept an equivalent increase in the assessments for a future budget period of UNPROFOR in the same amount, to be transferred to the Tribunal's Special Account from UNPROFOR's Special Account. The Assembly would decide further to apportion that amount ($4.3 million) for the period from 1 January to 31 march 1996 among Member States, in accordance with the 1996 scale of assessments.

The Committee approved the draft resolution, without a vote.

Financing of International Tribunal for Rwanda

The Chairman, Mr. VILCHEZ ASHER (Nicaragua), introduced the draft resolution (A/C.5/50.L.17) on the International Tribunal for Rwanda.

By the provisions of the draft text, the Assembly would decide to appropriate to the Tribunal's Special Account an amount of $7.6 million gross ($7.1 million net) for the period from 1 January to 31 March 1996. It would also decide, as an ad hoc and exceptional arrangement, that Member States would waive their respective shares in the credits arising from previous UNAMIR budgets in the total amount of $3.8 million gross ($3.5 million net). By that decision, they would accept an equivalent increase in the assessments for the future budget period of UNAMIR in the same amount, to be transferred to the Tribunal's Special Account from UNAMIR's Special Account. The Assembly would decide further to apportion the same amount ($3.8 million) for the period from 1 January to 31 March 1996 among Member States, in accordance with the 1996 scale of assessments.

The Fifth Committee approved the draft resolution without a vote.

Pattern of Conferences

Mr. STEIN (Germany), who chaired the informal consultations on the pattern of conferences, introduced the draft resolution (A/C.5/50/L.12).

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Draft Resolution and Action Taken

By Part A of the six-part draft resolution on pattern of conferences, the Assembly would approve the draft 1996-1997 calendar of conferences and meetings of the United Nations. It would express concern about the underutilization of conference facilities at duty stations outside Headquarters and emphasize the need to make the most effective use of such facilities. The Assembly would decide that the Headquarters rule of convening conferences and meetings at headquarters duty stations whenever possible shall be adhered to by all bodies, particularly those whose headquarters are underutilized. It would invite the Economic and Social Council to continue to consider the biennialization of meetings of its subsidiary bodies.

Part B of the draft text would have the Assembly decide that the current entitlement to meeting records of the United Nations Administrative Tribunal, First Committee, Committee on the Exercise of the Inalienable Rights of the Palestinian People and Executive Committee of the Programme of the United Nations High Commissioner for Refugees (UNHCR) be continued.

Under Part C of the draft text, the Assembly would endorse the ACABQ recommendation that the Joint Inspection Unit be requested to conduct a comprehensive survey of the role publications play in implementing mandates of intergovernmental bodies. The Assembly would request the Secretary-General to enforce the existing page limits for all documents originating in the Secretariat, and to ensure that documentation is available in accordance with the six-week rule for the distribution of documents, simultaneously in the Organizations six official languages. The draft text would encourage members of intergovernmental bodies to consider the possibility of requesting oral reports, and to request consolidated reports on related topics under a single item or sub-item.

Part D of the draft resolution would request the Secretary-General to develop a cost-accounting system for conference services, and would encourage the Secretariat to continue its efforts to improve the cost effectiveness of document production. The Secretary-General would also be requested to present proposals at the Assembly's next session on facilitating access by developing countries to the optical disk system and to ensure that the new technologies in conference services are introduced in all official languages.

By Part E of the draft text, the Assembly would emphasize the need for strict compliance with the resolutions and rules establishing language arrangements for the different United Nations bodies and organs. It would stress the need to continue to ensure the availability of the necessary resources to guarantee the timely translation of documents into the Organization's different official and working languages and their simultaneous distribution in those languages. The Secretary-General would be requested to undertake a thorough review of the terminology and technical methods used in translation into Arabic.

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Under Part F of the draft text, the Assembly would express its appreciation to the Secretary-General and the Secretariat for their prompt actions to improve the facilities for bilateral meetings and contacts between Member States for the fiftieth anniversary and request the Secretary-General to continue to provide such arrangements for subsequent Assembly sessions.

The Committee approved the draft resolution without a vote.

Proposed 1996-1997 Budget

In a statement on programme budget implications of draft resolution A/50/L.59 on the situation in Burundi (document A/C.5/50/48), the Secretary- General states that additional resources of $1.9 million would be required for 1996 under section 3, peace-keeping and special mission, of the proposed 1996-1997 budget, if the General Assembly adopts the draft text.

He adds that the activities relating to the situation in Burundi are of an extraordinary nature and should be dealt with outside the procedures related to the contingency fund. [Relevant provisions of the fund state that revised estimates arising from the impact of extraordinary expenses, including those relating to the maintenance of peace and security, shall not be covered by the contingency fund. The Secretary-General should nevertheless make efforts to absorb those expenditures, to the extent possible, through savings from the budget, without harming programme delivery or without prejudice to the use of the contingency fund.]

The Secretary-General explains that if the Assembly adopts the draft, the good offices mission of the Special Representative of the Secretary-General would continue to try in 1996 to seek support for effective national reconciliation in Burundi. The staffing needs of the office of the Special Representative and his support staff would continue to consist, apart from the Special Representative (at the Assistant Secretary-General level), of one Political Adviser on constitution and election law, one Political Affairs Officer, an Administrative Officer, and four General Service staff. In addition, 16 local level posts would be required. The additional funds needed are to pay for those resources.

Mr. MSELLE, Chairman of the ACABQ, in his oral presentation on the programme budget implications on the situation in Burundi, reviewed the reasons for the United Nations good offices mission in that country. Initially, financial provision for the mission had been made under unforeseen and extraordinary expenses. Subsequently, the finances were drawn from the regular budget. The present request for financing was now being requested from the proposed 1996-1997 regular budget. The Advisory Committee had reviewed the estimates and had commented on such issues as the subsistence allowance for international staff attached to the mission, the requests for a post of political adviser and for consultants for political advisory services and the high estimates for transport operations. It had also requested information on the trust fund, which was not reflected in the Secretary- General's report.

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He said the Advisory Committee had recommended an additional appropriation of $1.9 million under section three of the 1996-1997 proposed budget.

Action Taken on Draft Decision

Mr. VILCHEZ ASHER (Nicaragua), Committee Chairman, then read out the draft decision noting that should the Assembly adopt the draft resolution on the situation in Burundi, an appropriation not exceeding $1.9 million would be required under section 3 of the proposed 1996-1997 programme budget.

The Committee approved the draft decision without a vote.

Scale of Assessments, Iraqi Introduction of Draft

The Committee also had before it a draft resolution on the scale of assessments (document A/C.5/50/L.8). Sponsored by Iraq, the draft would have the Assembly decide, as a special and temporary arrangement, that its accumulated arrears had been due to conditions beyond its control and that it would be inappropriate to apply Article 19 of the Charter to that country until the sanctions imposed on it by the Security Council were fully or partially lifted.

Article 19 provides that a Member State shall have no vote in the Assembly if the amount of its arrears to the United Nations regular budget equals or exceeds two years of its dues.

SAEED HASAN (Iraq) introduced the draft resolution, stating that his country had been under economic sanctions that had been imposed by the Security Council since August 1990, and which had made it difficult for Iraq to pay its dues to the United Nations. It had done so in local currency in the last three years. But, since 1993, an international organization had shifted its activities out of Iraq and refused to accept payment in Iraqi currency. It was impossible for Iraq to pay in its currency as that was no longer accepted nor was Iraq allowed to pay from its assets.

In 1995, he continued, Iraq asked the Committee on Contributions that the Charter's Article 19 not be applied to it, but that Committee could not decide on the matter. Accordingly, Iraq had written to the President of the Assembly for the matter to be considered. The President had transferred the matter to the Fifth Committee, which had held informal consultations and could not reach an agreement. That had forced Iraq to ask for a vote on the draft resolution which contained three paragraphs. It was not a political text that he was placing before the Committee. Some extremist views on sanctions had been expressed but the sanctions should be reconsidered. Iraq would try to reach a fair solution of the matter.

The Committee Chairman said the Committee would take action on the matter tomorrow night.

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