UNITED NATIONS ON BRINK OF FINANCIAL COLLAPSE BECAUSE OF MEMBERS' FAILURE TO FULFIL OBLIGATIONS

States to Retain Control of Expenditures from Alternative Source of Revenue

The following statement was issued today by the Spokesman for Secretary- General Boutros Boutros-Ghali:

Over the past months, the Secretary-General has repeatedly called the attention of Member States to the very critical financial situation of the United Nations and has encouraged discussions on a number of far-reaching suggestions to alleviate the problem.

"Alternative sources of finance" for the programmes and activities of the United Nations system have been recommended by many commissions and study groups over recent years, the most recent of which was put together by Yale University. During the recent fiftieth anniversary session of the General Assembly, a number of Member States raised such ideas. The Secretary- General's remarks in London should be considered against this background, and in the context of trying to run an Organization effectively and efficiently when he is denied the resources to do so.

If Member States were to agree to an alternative source of revenue, the expenditures would be totally under the control of Member States, as is the case with all current expenditures in the United Nations system. The Secretary-General would not suggest any change in this procedure, which is basic to all intergovernmental organizations comprised of an controlled by sovereign States.

The main point at issue, and which should be the focus of all attention, is that the United Nations stands on the brink of financial collapse because of the failure of Member States to fulfil their legal obligations.