GA/9047

GENERAL ASSEMBLY ADOPTS $2.61 BILLION BUDGET FOR 1996-1997, ACTING ON RECOMMENDATIONS OF FIFTH COMMITTEE

23 December 1995


Press Release
GA/9047


GENERAL ASSEMBLY ADOPTS $2.61 BILLION BUDGET FOR 1996-1997, ACTING ON RECOMMENDATIONS OF FIFTH COMMITTEE

19951223 Fiftieth Session Suspended with Adoption of Budget Reports Assembly President Says Year of Celebration Must Be Year of Strengthening UN

Appropriations totalling $2.61 billion for the United Nations regular budget for 1996-1997 were adopted without a vote this morning by the General Assembly, which also adopted income estimates for the same period of $471.4 million. The Assembly also decided that, while expenditures represented a provisional total of $2.71 billion, a projected $104-million level of savings would be achieved, leading to a net expenditure of $2.61 billion.

The Assembly suspended its fiftieth session by adopting without a vote 23 proposals of its Fifth Committee (Administrative and Budgetary). Under the terms of those texts, the Assembly decided to:

-- Set the 1996 appropriations at $1.30 billion, of which $1.29 billion will be assessed to Member States;

-- Approved $2.63 billion for spending in 1994-1995, as adjusted by the Advisory Committee on Administrative and Budgetary Questions (ACABQ);

-- Establish $100 million as the Working Capital Fund's level;

-- Approve $7.1 million for the United Nations Human Rights Verification Mission in Guatemala (MINUGUA) for the period 1 January to 31 March 1996, and authorize $2.3 million monthly for the period beyond, should the Mission be extended beyond that date;

-- Approve expenses of $40.2 million net for the management of the United Nations Joint Staff Pension Fund for 1996-1997, which will be charged directly to the Fund;

-- Note that $19.4 million remained in the contingency fund; and

-- Approve a subvention of $220,000 from the regular budget for 1996 for the United Nations Institute for Disarmament Research.

General Assembly Plenary - 1a - Press Release Ga/9047 100th Meeting (AM) 23 December 1995

In a concluding statement to the meeting, the Assembly President, Diogo Freitas do Amaral (Portugal), said the session had been exhausting, but the work was not yet complete. The year of celebration must also be a year of strengthening. The continued momentum in favour of reform could only benefit the United Nations. "I am hopeful that the spirit of the fiftieth anniversary, that of good will, confidence and faith in the future of the United Nations, will prevail and the opportunity for change is not lost", he said.

Several speakers expressed satisfaction after the budget was adopted. The representative of the United States said that "although this budget is not as lean as my government originally proposed, it is perhaps the most austere ever adopted by the General Assembly". Canada's representative added that the recently created Efficiency Board might be asked to help identify where further savings could be made since the Secretary-General must report back to the Assembly a plan to achieve $100 million in savings.

On the other hand, the representative of Cuba said that the spirit that had imbued the founders of the United Nations had not been reflected in the budget, which was being used to further the hegemonic interest of the major contributor. Some of the measures being proposed would not reform, but eventually destroy, the Organization. Similarly, the representative of the United Kingdom added that the resolution did not give the Secretary-General a blank cheque to fund the deficits of one major contributor through enforced borrowing from peace-keeping accounts. Borrowing from peace-keeping funds to finance the regular budget was not acceptable and the accumulation of more arrears by one Member State could only increase the financial risk to the Organization.

In other actions this morning, the Assembly appropriated and authorized a total of approximately $359.2 million for peace-keeping operations in Africa and the former Yugoslavia for periods ranging from 1995 to the first half of 1996 by adopting four draft texts recommended by its Fifth Committee. The amount was for the United Nations Peace-keeping operations in the former Yugoslavia, United Nations Angola Verification Mission (UNAVEM III), United Nations Observer Mission in Liberia (UNOMIL) and United Nations Assistance Mission for Rwanda (UNAMIR).

By the four texts, the Assembly decided to:

-- Appropriate and authorize about $204.9 million gross for UNAVEM III for the periods from 9 February 1995 to 31 March 1996;

-- Authorize $100 million gross ($98.4 million net) for 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 in the former Yugoslavia for the period 1 January to 31 March 1996;

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-- Appropriate some $32.3 million gross ($31.8 million net) for UNAMIR for the period 1 January to 8 March 1996; and

-- Appropriate and authorize about $21.9 gross million for UNOMIL for the first quarter of 1996.

In other actions, the Assembly appropriated $8.6 million gross ($7.6 million net) for the International Criminal Tribunal for the Former Yugoslavia and $7.6 million gross ($7.1 million net) for the International Tribunal for Rwanda for the period 1 January to 31 March. The Assembly also requested the Committee on Contributions to hold a special one-week session in 1996 to receive the views of some Member States on the application of Article 19 of the Charter concerning arrears in contributions to the budget. The Assembly also decided to request the Committee on Contributions to reconsider the inclusion of Turkey in the list of countries falling under paragraph 2 of General Assembly resolution 48/223 B of 23 December 1993. By its exclusion from that list, Turkey's assessment for 1995-1997 had not been adjusted.

The Assembly also decided to assess Palau at 0.01 per cent of the regular budget for 1995, 1996 and 1997 and to place it in group (d) in the composition of Member States for apportioning of peace-keeping dues. (Group (d) countries are classified as economically less developed Member States that are assessed for peace-keeping expenses 10 per cent of their regular budget assessment).

In related action, the Assembly deferred to its first resumed session in 1996 a request by Ukraine to be relocated from group (b) to (c). (Group (c) countries are economically less developed Member States assessed at 20 per cent of their regular budget assessment for peace-keeping.) The Assembly also amended some United Nations financial regulations to make the financial periods for peace-keeping operations begin on 1 July and end on the following 30 June.

The Assembly also decided: to review, at its resumed session no later than March 1996, how the support account is financed; to establish a temporary post of Special Adviser to the Secretary-General; and to extend the 61 temporary posts it had authorized last July for the period 1 February to 31 March 1996.

In a four-part resolution approved on financial statements and the reports of the Board of Auditors, the Assembly decided to, among other things, request the Secretary-General to urgently complete a feasibility study on the procedures for valuing and transferring the costs of assets redeployed from a peace-keeping operation in liquidation to other missions or United Nations bodies. It also decided to request the Secretary-General to submit proposals for establishing an appropriate policy for physically verifying the assets and liabilities of a mission in liquidation before its assets were disposed of and for the financial accounting of the transfers of assets.

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By a four-part resolution on the common system, the Assembly, among other things, requested the International Civil Service Commission (ICSC) to establish in 1996 a single post-adjustment index for staff at Geneva that represented the cost of living of all staff working there. The Assembly also requested the Commission and the executive heads of the United Nations common system to ensure adequate attention to improving non-monetary aspects of conditions of service. The Assembly also adopted an oral draft decision requesting the ACABQ to submit a report on the conditions of service of some members of the ICSC and the Chairman of the ACABQ in the resumed session of the Assembly.

With the adoption of a six-part resolution on the pattern of conferences, the Assembly, among other things, requested the Secretary-General to develop quickly a cost-accounting system for conference services and encourage the Secretariat to continue improving the cost effectiveness of document production. It asked the Secretary-General to propose, at its next session, how to facilitate developing countries' access to the optical disk system.

On the review of United Nations efficiency, the Assembly approved an annexed, 16-item agenda for 1996 and a 13-item list for 1997 for its Fifth Committee. By another draft, it approved a list of 27 agenda items the Committee should continue considering at the resumed session. On the recommendation of the Committee, the Assembly deferred action on unforeseen and extraordinary expenses for 1996-1997 and on some aspects of the review of the United Nations efficiency to the resumed session.

Also this morning, the Assembly decided to retain 42 items for consideration during the fiftieth session, including those relating to the financing of Tribunals and peace-keeping missions, elections of members of the International Court of Justice and the World Food Council, the questions of Palestine, Cyprus, and the Comorian island of Mayotte, and improving the financial situation of the United Nations.

Statements were also made by the representatives of Ukraine and Australia.

Assembly Work Programme

The General Assembly met this morning to consider the reports of the Fifth Committee (Administrative and Budgetary) on the proposed 1996-1997 programme budget, the 1994-1995 budget, financing of several peace-keeping operations and of the International Tribunals for the former Yugoslavia and Rwanda. The Assembly would also consider Committee reports on the pattern of conferences, scale of assessments, United Nations common system, administrative and budgetary aspects of peace-keeping operations, financial statements and report of the Board of Auditors, and administrative and financial functioning of the Organization.

The Committee's consolidated report on the proposed 1996-1997 budget (document A/50/842) contains five draft resolutions. Part I had the various amounts proposed and approved in the budgetary process. Part II of the consolidated report presents five multi-part draft resolutions on matters relating to the budget. By the provisions of section A of the four-section draft resolution I, the Assembly would reiterate that, when formulating the proposed budget, the Secretary-General must fully respect the priorities established by the Assembly and ensure that resources are strictly used for the purposes approved. In section B of the draft text, the Assembly would, among other things, note that the Secretary-General intends to pursue further efficiency gains on an ongoing basis and that gains of about $100 million in 1996 and 1997 would be a reasonable expectation. It would decide that savings in the 1996-1997 proposed budget will not affect the full implementation of mandated activities.

The provisions of section C of draft resolution I would, among other things, have the Assembly decide -- regarding section 7B on Africa critical economic situation, recovery and development -- to create a separate identifiable budget section for implementing activities related to the programme of the medium-term plan. The Secretary-General would be requested to designate a deputy secretary of the Fifth Committee no later than the start of the first resumed fiftieth session. The draft would have the Assembly agree to establish the six Professional posts for the Office of the Internal Oversight Services and one post to follow up on the Global Conference on the Sustainable Development of Small Island Developing States.

The provisions of section D would have the Assembly decide that the sums in expenditure sections represent a provisional total of $2,712,265,200, that the projected $103,991,200 level of savings would be achieved, that the level of expenditure provided for in 1996-1997 is $2,608,274,000, which would be the basis of assessing Member States.

The three-section draft resolution II would, in section A, have the Assembly approve total appropriations of $2.61 billion for 1996-1997; approve,

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in section B, income estimates totalling $480.9 million; appropriate, in section C, $1.30 billion for 1996 to be funded partly from an assessment of $1.29 billion.

The Assembly would decide that the $2.61 billion appropriations would be used for the following purposes

Part I: Overall Policy-Making, Direction and Coordination

1. Overall policy-making, direction and coordination: $40,348,200

Part II: Political Affairs

2. Political Affairs: $60,989,500

3. Peace-keeping operations and special missions: $102,868,200

4. Outer space affairs: $4,705,500

Part III: International Justice and Law

5. International Court of Justice: $21,339,600

6. Legal activities: $31,605,400

Part IV: International Cooperation for Development

7A. Department for Policy Coordination and Sustainable Development: $44,318,700

7B. Africa: critical economic situation, recovery and development: $4,305,100

8. Department of Economic and Social Information and Policy Analysis: $48,612,100

9. Department for Development Support and Management Services: $26,556,000

10A. United Nations Conference on Trade and Development (UNCTAD): $121,925,300

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10B International Trade Centre UNCTAD/General Agreement on Tariffs and Trade (GATT): $21,642,000

11. United Nations Environment Programme (UNEP): $9,512,200

12. United Nations Centre for Human Settlements (Habitat): $13,059,600

13. Crime control: $5,254,600

14. International drug control: $17,344,100

Part V: Regional Cooperation for Development

15. Economic Commission for Africa (ECA): $87,845,600

16. Economic and Social Commission for Asia and the Pacific (ESCAP): $66,379,300

17. Economic Commission for Europe (ECE): $52,883,100

18. Economic Commission for Latin America and the Caribbean (ECLAC): $88,327,200

19. Economic and Social Commission for Western Asia (ESCWA): $37,791,200

20. Regular programme of technical cooperation: $44,814,700

Part VI: Human Rights and Humanitarian Affairs

21. Human rights: $52,987,600

22. Office of the United Nations High Commissioner for Refugees (UNHCR): $54,318,500

23. United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA): $22,643,000

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24. Department of Humanitarian Affairs: $21,039,300

Part VII: Public Information

25. Public Information: $137,658,000

Part VIII: Common Support Services

26. Administration and Management: $960,885,100

Part IX: Jointly Financed Activities and Special Expenditures

27. Jointly financed administrative activities: $28,915,000

28. Special expenses: $41,701,700

Part X: Office of Internal Oversight Services

29. Office of Internal Oversight Services: $15,716,500

Part XI: Capital Expenditures

30. Technological innovations: $21,999,600

31. Construction, alteration, improvement and major maintenance: $31,585,400

Part XII: Staff Assessment

32. Staff Assessment: $369,080,100

Part XIII: International Seabed Authority

33. International Seabed Authority: $1,308,200

Total Estimates of Expenditure

Total estimates: $2,712,265,200

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Estimates of Income

1. Income from staff assessment: $384,306,000

2. General income: $86,209,200

3. Services to the public: $886,500

Total Estimates of Income

Total estimates: $471,401,000

Total Net Expenditure

Total: $2,608,274,000

The eight-section draft resolution III would, in section I, have the Assembly approve $7.1 million for the United Nations Human Rights Verification Mission in Guatemala (MINUGUA) for the period 1 January to 31 March 1996 and authorize up to $2.3 million monthly should the Security Council extend the mission's mandate beyond 31 March 1996. The Assembly would endorse, in section II, the recommendations of the ACABQ and approve a temporary Under-Secretary-General post as requested by the Secretary-General; take note, in section III, of the Secretary-General's report and the ACABQ recommendations on the Integrated Management Information System project; request the Secretary-General, in section IV, to address the questions on the conditions of service of the members of the International Court of Justice as raised by the ACABQ.

Section V of draft resolution III would have the Assembly approve a subvention of $220,000 from the regular budget for the United Nations Institute for Disarmament Research (UNIDIR). Section VI of the draft would have the Assembly request the ACABQ to report to the resumed session on the conditions of service for full-time member of the International Civil Service Commission (ICSC) and the Chairman of the ACABQ. By the terms of section VII, the Assembly would approve expenses totalling $40.2 million net for 1996-1997 and an increase in expenses of $835,500 net for 1994-1995, for the administration of the fund. By section VIII, the Assembly would note that a balance of $19.4 million remains in the contingency fund.

Action on draft resolution IV, on unforeseen and extraordinary expenses for 1996-1997, was deferred by the Committee to the resumed session.

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Draft resolution V would have the Assembly establish the Working Capital Fund for 1996-1997 at $100 million, from which the Secretary-General could borrow sums necessary to fund budgetary appropriations pending the receipt of contributions.

1994-1995 Budget

By the draft resolution on the 1994-1995 budget (document A/50/841), the Assembly would adjust the appropriations for that biennium by about $24.2 million, raising the total to $2.63 billion.

Financing of UNAVEM

The report on the financing of the United Nations Angola Verification Mission (UNAVEM III) (document A/50/845), transmitting a draft text that would appropriate $34.9 million gross ($36.2 million net) for the Mission for the period 9 February 1995 to 31 December 1995 in addition to $150 million gross ($148 million net) previously appropriated and the $65.9 million gross ($63.1 million net) previously authorized. It would then decide, as an ad hoc arrangement, to apportion $34.9 million gross ($36.2 million net) among Member States.

By other terms of the draft text, the Assembly would appropriate and apportion $36.7 million gross ($36.1 million net) for the Mission for the period 1 January to 8 February 1996. Beyond that date, the Assembly would authorize $28.2 million gross ($27.7 million net) monthly until 30 June 1996 and assess $76.2 million gross ($74.9 million net), should the Council extend the Mission's mandate beyond 8 February 1996.

Financing of Operations in Former Yugoslavia

The Assembly had before it a Fifth Committee report on 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 (document A/50/796/Add.1). The report transmits a draft text that would authorize the Secretary-General to commit $100 million gross ($98.4 million net) for the period 1 January to 31 March 1996 and assess, on an ad hoc arrangement, $89.5 million gross ($87.9 million net) for that period.

Financing of UNOMIL

The Assembly had before it a report from the Fifth Committee on the financing of the United Nations Observer Mission in Liberia (UNOMIL) (document A/50/846), transmitting a draft text that would appropriate $9.8 million gross ($9.6 million net) to maintain the Mission for the period 1 to 31 January

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1996. It would also decide, as an ad hoc arrangement, to apportion the same amount among Member States. For Member States that have fulfilled their financial obligations to the Mission, their respective share in the unencumbered balance of $226,890 gross ($224,900 net) for the period from 23 October 1994 to 30 June 1995 would be set off against the apportionment. For Member States that have not fulfilled their financial obligations to the Mission, their share of the unencumbered balance shall be set off against their outstanding contributions.

By other terms of the text, the Assembly would authorize the Secretary- General to enter into commitments up to $12.2 million gross ($11.8 million net) for the maintenance of the Mission from 1 February to 31 March 1996, subject to the extension of the Mission's mandate by the Security Council, and that that amount be apportioned among Member States.

Financing of UNAMIR

The Assembly had before it a report from the Fifth Committee on the financing of the United Nations Assistance Mission for Rwanda (UNAMIR) (document A/50/848), transmitting a draft text that would have the Assembly appropriate $32.3 million gross ($31.8 million net) for the operation of the Mission for the period from 1 January to 8 March 1996. It would decide, as an ad hoc arrangement, to apportion the same amount for the period 1 January to 31 March 1996 among Member States.

Financing of International Tribunal for Former Yugoslavia

The Assembly had before it a report of the Fifth Committee on the financing of the International Criminal Tribunal for the Former Yugoslavia (document A/50/849), transmitting a draft text that would appropriate $8.6 million gross ($7.6 million net) for the 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.

Financing of International Criminal Tribunal for Rwanda

The Assembly had before it a Fifth Committee report on the International Tribunal for Rwanda (document A/50/852), transmitting a draft text that would appropriate $7.6 million gross ($7.1 million net) for the Tribunal and apportion $3.8 million gross ($3.6 million net) for the same period according to the same scale.

Financial Statements and Reports of Board of Auditors

The Committee report on the financial statements and reports of the Board of Auditors (document A/50/839), transmitting a four-part draft text

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that would, in part A, have the Assembly reiterate its request to the executive heads of United Nations organizations to submit reports on the measures they have taken or would take in response to the Board's recommendations. By the terms of the text, the Assembly would request the Office of the United Nations High Commissioner for Refugees (UNHCR) and all other entities that depend on voluntary contributions as their main source of income to provide, upon request, more precise and transparent information on their cash situations in their reports to the Assembly.

By provisions in part B, the Assembly would request the UNHCR to urgently implement the recommendations of the Board of Auditors and to urgently introduce procedures to enhance its efficiency in implementing the recommendations.

In part C, the text would have the Assembly request the Secretary- General to urgently complete a feasibility study on the procedures for valuing and transferring the costs of assets redeployed from a peace-keeping operation in liquidation to other missions or United Nations bodies. He would also be requested to study the most cost-effective ways of liquidating peace-keeping operations, and to submit proposals for a policy for physically verifying the assets and liabilities of a mission in liquidation before its assets are disposed of and its liabilities changed. He should also propose standard procedures for transferring assets and policy for the financial accounting of such transfers for consistent application in peace-keeping missions.

By the terms of part D, the draft text would request the United Nations Institute for Training and Research (UNITAR) to submit reports on the measures it has or proposes to take in response to the Board's recommendations for 1994.

Pattern of Conferences

The Assembly had before it a Fifth Committee report on pattern of conferences (document A/50/837) containing a five-part draft resolution. By part A, 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 meetings at headquarters duty stations shall be adhered to by all bodies. It would invite the Economic and Social Council to continue to consider the biennialization of meetings of its subsidiary bodies.

By part B of the draft text, the Assembly would decide to continue 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).

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By the provisions of 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 the six-week rule for the distribution of documents simultaneously in the Organization's six official languages is observed. The draft text would encourage members of intergovernmental bodies to consider the possibility of requesting oral reports.

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 and simultaneous distribution of documents into the Organization's different official and working languages. The Secretary-General would be requested to undertake a thorough review of the terminology and technical methods used in translation into Arabic.

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.

United Nations Common System

The report on the common system (document A/50/844) contains a four-part draft text. By part I of the draft, the Assembly would decide to defer its consideration of conditions of service of Professional and higher categories of staff to its resumed fiftieth session and requests the ICSC to review its recommendations and conclusions. The Assembly would request the organizations concerned to collect data to substantiate problems concerning recruitment and retention and request the Commission to make recommendations regarding the conditions for the application of special occupation rates.

On post adjustment matters, the draft resolution would request the Commission to establish in 1996 a single post adjustment index for staff at the Geneva duty station. It would also request the Commission to address the concerns raised by the Fifth Committee regarding the operation of the post

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adjustment system.

Part II of the draft text would have the Assembly request the Commission, as part of its review of the methodology for setting salaries for General Service and locally recruited staff to resolve, to the extent possible, inconsistencies between this methodology and the one which is applied to the Professional staff, by examining the question of overlap in remuneration between the two categories.

By part III of the draft text on the work programme, the Assembly would request the Commission and the executive heads of the United Nations common system to ensure that adequate attention is given to all aspects of human resources management, including the improvement of non-monetary aspects of conditions of service. By part IV on the functioning of the Commission, the Assembly would reaffirm the validity of the Commission's Statute, particularly article 6 on the independence and impartiality of its members.

The Assembly would also call on the Coordinating Committee for International Staff Unions and Associations and the Federation of International Civil Servants Associations to resume participation in the Commission's work.

Administrative and Budgetary Aspects of Peace-keeping

The Assembly had before it a Fifth Committee report on the relocation of Ukraine in the grouping for peace-keeping assessments (document A/50/851), transmitting a draft text that would have the Assembly defer consideration on the matter to the first resumed session.

Scale of Assessments

The Assembly had before it a Committee report on the scale of assessments (document A/50/843), transmitting three draft texts. By the first text the Assembly would request the Committee on Contributions to hold a special one-week session in 1996 to hear the views of some Member States on the application of Article 19 of the Charter concerning arrears in the payment of contributions to the United Nations. The States are Azerbaijan, Comoros, Georgia, Kyrgyzstan, Latvia, Liberia, Sao Tome and Principe, Tajikistan and Turkmenistan. The Assembly would then consider the report of that Committee in its resumed session.

The second draft would have the Assembly assess Palau at 0.01 per cent of the regular budget for 1995, 1996 and 1997. Palau was admitted to the United Nations in December 1994.

The third text would have the Assembly request the Committee on Contributions to reconsider the inclusion of Turkey in the list of countries falling under paragraph 2 of General Assembly resolution 48/223 B of 23 December 1993. By its exclusion from that list, Turkey's assessment rate for

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the years 1995-1997 has not been adjusted.

Action of Draft Resolutions and Decisions

PETER MADDENS (Belgium), Committee Rapporteur, reporting on its work said that all its reports had been adopted by consensus. He announced some amendments to the figures in the report on the 1996-1997 proposed budget,

In the draft report on the 1996-1997 programme budget (document A/C.5/50/L.29 Part 1) the revisions are as follows:

-- Page 13: Income from staff assessment should be $384,306,000

-- page 14: Total, income from staff assessment should be $382,679,100; and Total income sections should be $471,401,700.

In Part II of the report, the revisions to draft resolution II on the 1996-1997 proposed budget are as follows:

-- page 8: Income from staff assessment should be $384,306,000; and Total, income sections should be $471,401,000.

-- page 9, paragraph 1, line 4, should read "$24,160,900, being the increase in revised appropriations for 1994-1995"; paragraph 1 (b), first line, should read "$1,285,696,850, being the assessment on Member States..." Paragraph 2, line 4 should read "total amount of $197,885,900, consisting of $192,153,000, being half of the estimated staff assessment income...".

The Assembly adopted, without a vote, the following:

-- draft resolution on the financial reports and audited financial statements and reports of the Board of Auditors;

-- two draft decisions on the Committee's programme of work;

-- A draft resolution on the final budget appropriation for 1994 and 1995;

-- A draft resolution on the pattern of conferences;

One draft resolution on the application of Article 19 of the Charter concerning arrears on contributions to the United Nations, and two draft decisions on Palau's and Turkey's assessments, respectively;

-- A draft resolution on the United Nations common system;

-- Three draft resolutions on the financing of UNOMIL, UNAMIR, and UNAVEM III, and one draft decision on UNCRO, UNPREDEP, and United Nations

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Peace Forces headquarters, UNOMIL, and UNAMIR; and a decision on the financing of UNAVEM III;

-- A draft resolution on the financing of the International Criminal Tribunal for the former Yugoslavia;

In explanation of position regarding the Committee's report on the relocation of Ukraine in the groupings for peace-keeping assessments, IGOR GOUMENNY (Ukraine), said since the question of his country's relocation had not been resolved to its satisfaction, the title of the report and the title of the decision should be changed. The agenda item on Ukraine had not been given sufficient attention by the Committee. Had it been comprehensively considered, a more substantial solution would have been reached. He expressed the hope that the problem would be resolved at the resumed session.

The Assembly then adopted, without a vote, the draft decision on the relocation of Ukraine.

Three other draft decisions on assessment on Palau peace-keeping budgets; amendments to the financial regulations to change the budget cycle of peace-keeping operations; and the support account for peace-keeping were adopted by the Assembly without a vote.

The Assembly adopted, without a vote, the draft resolution on the financing of the International Tribunal for Rwanda.

Action on 1996-1997 Proposed Budget

The Assembly adopted the five draft resolutions on question relating to the 1996-1997 programme budget; appropriations for the biennium; questions relating to such items as MINUGUA and the conditions of service and compensation for Secretariat officials; unforeseen and extraordinary expenses for the 1996-1997 biennium; and the working capital fund for 1996-1997 were adopted without a vote.

Speaking in explanation of position, NORMA GOICOCHEA ESTENOZ (Cuba) said the budget was of particular importance not only to the Organization but also to the international community. Corporate ideas seemed to be taking over in the running of the United Nations. As a result, it would become more difficult for the United Nations to work towards achieving the goals set in the Charter.

The budget process was being changed and the priorities set by the Assembly were not respected, she said. There were efforts to eliminate the role of the Committee on Programme and Coordination (CPC). Some of the changes made to the budget and to its budgetary process were intended to placate the major contributor which was also the major debtor to the United Nations. Efforts were being made to encourage the contributor to pay its dues. The spirit that had imbued the founders of the United Nations had not

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been reflected in the budget, which was being used to further the hegemonic interest of the major contributor. Some of the measures being proposed would not reform but destroy the Organization.

Cuba had joined the consensus in the hope that the budget would help improve the cash flow of the United Nations, she continued. She looked forward to seeing where the projected savings would be made in the budget. The right to development had not received the priority it deserved and there should be further consideration of the budget. Member States should carefully consider the actions they took as some of them, such as the budget just adopted, might jeopardize the Organization.

SAM HANSON (Canada) said he was pleased with the innovation that had been mandated in one of the budget resolutions, which had set a limit on expenditures and a projected level of savings that was to be achieved. The Committee had discussed the establishment of the Efficiency Board, to which the search for savings could be entrusted. Increased efficiency should be a matter of concern to all delegations. The borrowing of funds for the regular budget from special accounts had gone beyond the intents that had been envisaged originally. Proposals the United Kingdom had made on the Working Capital Fund should be considered. Further improvements should be made to the budgetary process; a strategic planning approach could be the basis for the preparation of future budgets.

On the establishment of the total level of expenditures, he said that the real problem was about the level of contributions that were actually paid up after expenditures were assessed among Member States. Over $392 million, or 35 per cent of assessments, were still outstanding. No delegation had ever proposed a 35 per cent cut in the United Nations programmes, but some countries had imposed limits on the amounts of money they paid. All members should fulfil their obligations.

STEPHEN GOMERSALL (United Kingdom) said the "resolution does not give the Secretary-General a blank cheque to fund the deficits of one major contributor through enforced borrowing from peace-keeping accounts". If the agreement on the budget meant that it would be fully funded, the United Nations would be in a better shape than it currently was. However, agreeing on the budget did not guarantee that its amounts would be honoured by all Member States and the regular budget programmes could automatically be completed. That was the real issue that should be addressed as there could be no assumption that in the next two years, all troop contributors would be prepared to fund the deficit in the regular budget by involuntarily lending to the Organization as they had in the past.

He said after some consultations with other troop-contributing States, he had submitted modest amendments to the draft resolution on the Working Capital Fund. The amendments would have made more transparent the conditions under which the Secretariat borrowed money from peace-keeping accounts. It would have made clear who was responsible for the deficits in the regular

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budget, how much troop contributors were owed at any time and if their reimbursements had been diverted by the Secretariat for regular budget purposes. The United Kingdom and others would continue to seek those and other improvements in the Fifth Committee's resumed session.

Some delegations might believe that the Working Capital Fund resolution had authorized the Secretary-General in a general way to borrow from peace- keeping accounts to stave off a cash crisis. However, the resolution on the Fund had set some specific conditions. First, borrowing might be made only as a last resort: the first should be to seek payment from those in arrears and those who paid later in the financial year. The second condition was that borrowings should not prejudice the programmes for which the peace-keeping funds were contributed. Neither condition was fulfilled. Borrowing from peace-keeping funds to finance the regular budget was not acceptable. The accumulation of more arrears by one Member State whose legislature was not willing to commit itself to honouring those debts could only increase the financial risk to the Organization and its creditors. The responsibility for the cash-flow crisis lay with those who did not pay their dues and not with those who did. The United Kingdom would not assume any obligation to pay for their deficit or the blame for the consequences. The Secretariat was obliged to seek the Assembly's approval, including that of troop contributors, if it wished to continue such borrowing from now on.

DAVID BIRENBAUM (United States) said that his delegation had mixed feeling about the budget for 1996-1997. It was higher than what it would have recommended. For that reason, the United States could not fully support it. However, the budget was below the level of expenditures for 1994 and 1995 and a true "no growth" budget. That was an unprecedented, and a sharp and welcome departure from business as usual.

Negotiations over the budget had been long and hard, with the United States having made far-reaching recommendations to eliminate waste, reduce spending on low priorities and improve management practices, he said. The budget was for $2.61 billion, a figure below that of the previous two years. The Secretariat had proposed a budget of $2.83 billion, with an increase of $200 million attributable, not to programme growth, but to inflation and other mandatory cost increases.

While the United States did not endorse the budget level approved, it was not blocking consensus adoption. That was because the agreement had acknowledged the need to reduce low priority spending as a central part of the United Nations budget process. Under the budget agreement, the Secretary- General must report back to the Assembly a plan to achieve about $100 million in savings to stay within the $2.61 billion level, an amount above which the United Nations could not spend. Savings would require that many cost increases be absorbed, not simply added on. The budget's spending ceiling must be a true ceiling, not a target. The Secretariat must have the discipline to live within the budget approved.

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Also, the 9 per cent pay increase for Professional staff recommended by the ICSC had not been accepted and funds to implement it were not included in the budget, he added. Instead, the recommendations would be returned to the Commission with instructions that it reconsider them, using a more accurate methodology. Also, the budget resolution included some significant reform measures such as a comprehensive review to increase the outsourcing of services. It had also strengthened the Office for Internal Oversight Services.

The United States would work closely with other delegations and the Secretariat to implement the programme reductions made necessary by the budget, he continued. Despite some concerns, the United States was convinced that the budget levels could be achieved without harming priority goals. Although the budget was not perfect, it was a major downpayment on a reformed United Nations. "Although this budget is not as lean as my government originally proposed, it is perhaps the most austere ever adopted by the General Assembly." If the United Nations was to be effective for the next century, it must accelerate its reforms.

Those who founded the United Nations a half century ago had not been motivated by a desire to create the world's best paid international bureaucracy; they did not, in establishing the Economic and Social Council, envision a panel with 150 subsidiary bodies; they did not fashion this great forum so that the same tired issues could be debated year after year, "filling libraries with reports too heavy to lift and too dull to read".

RICHARD ROWE (Australia) said his delegation had been the main coordinator of the negotiations on the 1996-1997 budget and welcomed its adoption without a vote. The budget was an important contribution to the Organization's work but further improvements were necessary in the budgetary process. He supported the proposals by the United Kingdom, which would be taken up again next year.

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For information media. Not an official record.