STANDARDIZED RATES OF DEATH, DISABILITY BENEFIT NEEDED FOR PEACE-KEEPERS, INDIA TELLS FIFTH COMMITTEE

20 March 1996

Press Release
GA/AB/3063

STANDARDIZED RATES OF DEATH, DISABILITY BENEFIT NEEDED FOR PEACE-KEEPERS, INDIA TELLS FIFTH COMMITTEE

19960320 Speakers Say Current System of Death, Disability Benefits Does Not Observe Principle of Equal Treatment of Member States

The standardized rates of death and disability benefits for troops serving in United Nations peace-keeping operations, proposed by the Secretary- General, should be adopted soon, as the General Assembly had already accepted the principle that the equal treatment of Member States must underlie any system of compensation, the representative of India told the Fifth Committee (Administrative and Budgetary) this afternoon.

Speaking as the Committee took up the questions of those benefits and reform of the system of reimbursing Member States for the equipment used in peace-keeping operations, India's representative said the Secretary-General had indicated the inequity of current arrangements, and the proposal of a uniform global insurance scheme to cover all troops should be examined.

The representative of Brazil said the issue of death and disability benefits mechanisms should be carefully examined, as the principle of equal treatment of Member States was not being fully observed. Artificial differences of treatment between those who had selflessly and without regard to nationality put their lives on the line of duty should not be permitted.

Unequal treatment of troops in providing compensation was detrimental to the morale of troops serving the United Nations, Nepal's representative said. "The least the United Nations should do to the brave souls willing to sacrifice their lives for peace would be to give them a sense of pride, which is only possible through equity and equality of treatment", he said.

On the issue of reimbursement for contingent-owned equipment, the representative of Canada, also speaking on behalf of Australia and New Zealand, said the new proposals for reimbursing Member States were "a landmark initiative" and a significant accomplishment. He supported the 1 July implementation date and said he looked forward to a smooth implementation and transition period.

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47th Meeting (PM) 20 March 1996

The representative of Italy, speaking for the European Union, said, regarding loss or damage of equipment due to hostile action and forced abandonment, that the Union could agree to limiting United Nations responsibility to loss and damage of major equipment collectively worth or above $250,000. However, Member States should bear the cost of loss and damage to each item of equipment below that threshold, which should be introduced immediately. The Union would express its views on death and disability benefits at a later date.

The United Nations Controller, Yukio Takasu, introduced the Secretary- General's reports on death and disability benefits and on reimbursement for contingent-owned equipment. Those of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) were introduced by its Chairman, C.S.M. Mselle.

The representatives of Norway, Indonesia, Pakistan, Bangladesh, China, Kenya and Egypt also made statements.

The Committee will meet again at 10 a.m. Tuesday, 26 March, to consider the programme budget implications related to the situation of democracy and human rights in Haiti and the United Nations Human Rights Verification Mission in Guatemala (MINUGUA), and the scale of assessments.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this afternoon to take up the question of the administrative and budgetary aspects of financing peace-keeping operations. Under that agenda item, it would look at death and disability benefits and the reform of the procedure for determining Member States' reimbursements for contingent-owned equipment.

Death and Disability Benefits

The Committee had before it the Secretary-General's report (documents A/49/906 and Corr.1) that proposes options for compensating troops injured or killed while in the service of the United Nations peace-keeping operations. In a 1994 resolution, the Assembly had asked him to suggest options that would treat Member States equally, ensure that beneficiaries were not given less than what was paid by the United Nations, simplify administration and ensure quick settlements.

In response, he recommends the establishment of a United Nations- administered uniform global insurance scheme to cover all troops. It would be financed from sums calculated monthly and paid into a global fund from each peace-keeping budget. The monthly amount would depend on the level of awards approved by the Assembly and the calculation of risk based on experience and other factors. The amount budgeted for the option would depend on the authorized number of troops for a mission. Unused monies would be kept in the fund, carried forward and allowed to grow to a level that would give the Organization protection against catastrophic loss.

According to the report, the scheme would provide fixed sums in cases of death, and lump-sum payments for injuries would be fractions of the standard allowance for death. Awards would be made independent of national schemes or entitlements that beneficiaries may qualify for. Action could be initiated in the field based on accident reports, board of inquiry reports and probes. The submission of a claim from an injured party or his/her government would not be needed, and supporting documents would be found in the mission area. Benefits could be paid either through a national authority or directly to the beneficiary. It should preferably be given directly to the injured party or his/her beneficiary, in the event of death, to ensure that the compensation matches what was paid by the United Nations. National authorities should be used to disburse sums only when a beneficiary has not been designated or if national law or custom prevents the United Nations from completing the award.

The option would meet the Assembly's four criteria. Awards would be paid in a one-time basis, for which the Secretary-General suggests $50,000 for service-incurred death. He says the Assembly may feel that the amount could be more generous. Awards for permanent disabilities would be fractions of a death award and depend on the degree of injury. For example, the loss of an

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arm from the shoulder would fetch 60 per cent of an agreed allowance; a hand, 54 per cent; a leg from above the knee, 40 per cent; loss of hearing, 35 per cent; and of sight in one eye, 24 per cent.

Other options described in the report are: the current arrangements with a reasonable minimum levels of awards; a system of compensation with standardized reimbursement rates for death and injury; the current policy used for military observers, whereby awards are limited to twice the annual salary excluding allowances, or $50,000, whichever is greater; and the current reimbursement arrangements as based on national laws but subject to a ceiling set by Member States. According to the Secretary-General, those options neither meet the Assembly's criteria nor treat the troops of all Member States equally.

The current system consumes a lot of time in tracing supporting documents, and there is no limit on what governments can claim since payments are determined only by national regulations, the report adds. It also results in unequal treatment of troops, and there is no way of proving that beneficiaries get the equivalent of what was paid by the United Nations.

In its report on death and disability benefits (document A/50/684) that reviews the current system and other options, the Advisory Committee on Administrative and Budgetary Questions (ACABQ) identifies issues on which the Assembly should provide further guidance, including whether payments should take the form of an allowance, a reimbursement or an award, and if they should be made to Member States or individuals directly. The Assembly should also suggest the sums to be paid by the United Nations and whether an insurance scheme should be established. It is necessary to have an understanding and agreement on the precise legal status of contingent personnel and of the nature of their legal, administrative and operational relationship with the Organization and their government. Also, the Fifth Committee may wish to seek legal guidance on the matter. The question of whether some awards should be paid at one universal rate regardless of national practice and/or origin remains to be clarified.

Based on the decisions the Assembly would take on the issues, the Secretary-General should be requested to draft and submit to it, through the Advisory Committee, a detailed proposal, the ACABQ report continues. It should contain draft procedures for implementation and the administrative, legal and financial implications. The proposal should consider the comments of the ACABQ and the Fifth Committee. Meanwhile, the ACABQ recommends that steps should be taken to improve the management of the current system so as to handle outstanding claims quickly. For example, there is a need for accurate and readily accessible data and a clear indication of the steps taken from the time a claim is filed to the time it is paid.

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The ACABQ recalls that it had previously asked the Secretary-General to consider the possibility of replacing the present system with insurance schemes. The request has not been addressed.

On the issue of a maximum award of $50,000, it says that that would provide savings, compared to current practice, which indicates that an average $104,134 was paid in respect of 159 claims relating to death (minimum of $10,308, maximum of $663,116).

Reimbursement for Contingent-Owned Equipment

General Assembly resolution 49/233 of 23 December 1994 authorized the Secretary-General to reform the procedure to determine reimbursement to Member States for contingent-owned equipment provided to peace-keeping missions. It invited him to look at alternatives similar to the established procedures for compensating Member States for military personnel. The Secretariat, therefore, undertook a first phase of the project -- Phase I -- to identify items of contingent-owned equipment for consideration as major or minor equipment by the Phase II working group. Under Phase II, a working group of technical and financial experts from Member States identified standards for major and minor equipment and consumables which could be reimbursed.

Under Phase III, a fixed scale was to be developed identifying annual reimbursement rates for each of the system authorized by the Phase II working group and the development of a single flat rate reimbursing all other equipment and consumables. Phase IV was planned as a stage during which the revised reimbursement procedure would be implemented at Headquarters and field missions. A periodic review and update of Phases II and III standards, to be completed on a triennial basis, was proposed for Phase V. The reports of the Phase II working group (document A/C.5/49/66) and Phase III working group (A/C.5/49/70) are before the Committee.

The Secretary-General's report on reform of the procedure for determining Member States' reimbursement for contingent-owned equipment (document A/50/807) summarizes the working groups' proposals and elaborates the Secretary-General's views. According to the report, the working groups recommended that reimbursement to troop-contributing countries be based either on a "wet lease" (whereby such countries would provide major equipment and maintain them), or a "dry lease" (whereby they would provide major equipment, with the United Nations assuming responsibility for maintaining them).

The report states that the working groups had recommended that minor equipment and consumables not directly related to major equipment be reimbursed for self-sustainment costs based on troop strength. (Self- sustainment costs relate to minor equipment items, consumables and services provided by troop-contributing countries to provide for their troops' requirements in a mission area. It includes such services as catering,

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communications, and medical services.) Performance factors were also recommended to ensure that troop-contributing countries performed as required by their mandates. The working groups recommended related reimbursement rates. Reimbursement would be based on the procedures currently being used to reimburse monthly troop costs, which take into account the Organization's financial and cash-flow situation.

The Secretary-General supports the leasing and self-sustainment concepts, the report states. They would provide flexibility both to troop-contributing countries and to the United Nations, as the Organization would not be restricted to countries that can fully support themselves. The proposal would also reduce the bureaucratic process by eliminating the current lengthy survey procedures. Troop-contributing countries would become responsible for asset management. Acceptance by the General Assembly of such concepts should not add costs to peace-keeping budgets, the report sates. While some savings are likely, it is not possible to quantify them in the absence of implementing experience.

The Secretary-General recommends that the Assembly consider approving the following principles, as recommended by the working groups: the wet and dry lease concepts and associated rates; the self-sustainment concept for reimbursing minor equipment and consumables and services, and the associated rates; policy concerning preparation costs; the transportation policy for deployment/redeployment, including loss and damage incurred during shipment, except inland transportation; the transportation policy concerning resupply of contingents; and the policy for reimbursing ammunition.

The report also recommends the following proposals for approval by the Assembly: the inclusion of an insurance factor for loss or damage due to no-fault incidents -- such as normal wear and tear, vehicle accidents or theft; a mission-approved hostility factor applicable to self-sustainment rates and the spare parts element of the wet lease; and loss or damage incurred due to wilful misconduct or negligence should not be placed on the United Nations. Other proposals include: those relating to loss or damage of contingent-owned equipment, except that it would not apply to special equipment; the proposed standards and verification procedures related to major equipment under the leasing concept; and the proposed standards related to minor equipment and services provided under the self-sustainment concept.

The report further recommends that the Assembly approve neither the proposal for reimbursement for inland transportation, nor the proposal that the United Nations be responsible for compensating all loss and damage to major equipment due to hostile action or forced abandonment whose collective value equals or exceeds $250,000. Should the Assembly decide to approve such compensation whose unit value equals or exceeds $250,000, the Secretary- General recommends acceptance of such liability only if fixed and reasonable

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limits on the sums payable by the United Nations, per peace-keeping mission and per contributing State, were established.

The report also requests that the Assembly not approve the proposal that, in the event of the United Nations not meeting its full liability under the lease system, total responsibility for loss or damage due to no-fault incidents to contingent-owned equipment and supplies would revert to the Organization. However, it is asked to approve one environmental/operational mission-specific factor not exceeding 5 per cent of the reimbursement rates for minor equipment and of the leasing costs for major equipment.

The Secretary-General believes that the proposed reforms will improve the method of reimbursing troop-contributing countries for their participation in peace-keeping. He also believes that the reforms would be more economical to the Organization and would reduce unnecessary bureaucracy. Furthermore, the introduction of a simplified planning and budgeting process would benefit not only the Organization, but also the Member States by providing more transparency and thereby encouraging greater participation in peace-keeping. Should the Assembly approve the proposals, the Secretary-General will develop policies and procedures while allowing time to brief Member States and peace- keeping missions. He intends to implement the new arrangements on 1 July.

In its report on the matter (document A/50/887), the ACABQ addressed the question of inland transportation of equipment. It noted that the Secretary- General's report had maintained its policy of non-reimbursement for inland transportation under the new arrangements for contingent-owned equipment. The ACABQ states that there was no basis for the Secretary-General to conclude that the proposal had the potential to add substantial costs to the annual peace-keeping budgets.

The compensation to troop-contributing countries for expenses incurred for inland transportation of major equipment beyond the first 800 kilometres along the consignment route, from the home location of the equipment to the point of embarkation, would be a one-time payment of an amount equal to 0.25 per cent of the monthly wet lease rates for major equipment for each additional complete 800 kilometres. The ACABQ points out that that formulation does not appear to reflect the concept of "equity among compact and widely dispersed countries, whatever their economic circumstances".

In its discussions, the ACABQ had pointed out several of its concerns regarding the adequacy of the justification presented by the Secretary-General and the scope of applicability of the proposals on reimbursement for inland transportation. The Assembly may wish to take these into account when it considers the recommendations of the Phase III working group.

The ACABQ had sought clarification on the recommendation concerning the assumption by the United Nations of total responsibility for loss or damage

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under the lease system. The question of liability was related mainly to the United Nations not being able to perform its obligations under the lease system, and that it was not the intention of the working group to make the Organization assume full liability for loss or damage due solely to its inability to pay monthly reimbursement on a timely basis. That issue is addressed in an amendment to draft contribution agreement as follows: "In the event that the UN or the troop-contributing country does not meet its full obligations under the lease system, either party may refer the matter to the mechanism for settlement of disputes set out in Article 11 of the contribution agreement ..." The ACABQ recommends acceptance of this understanding.

The ACABQ also sought clarification on the issue of loss or damage to major equipment due to hostile action or forced abandonment. It recommends that consideration be given to the recognition of potential risk of aggregate loss for equipment whose individual value was less than $250,000, by including in the lease rates an additional factor to compensate Member States for potential damage or loss as a result of such circumstances. The Advisory Committee recommends further that the Secretary-General be asked to make proposals (after appropriate consultations with Member States) on the percentage to be used as a risk factor. The ACABQ states that the issue should not be considered an impediment to adopting the proposed system, subject to the recommendations of the Advisory Committee as accepted by the Assembly.

Regarding the implementation of the new procedures, beginning 1 July 1996, the ACABQ states that as many existing peace-keeping missions as possible should be converted to it as soon as possible. On the proposed periodic reviews of Phases II and III standards, the ACABQ expresses the belief that too-frequent reviews of rates for contingent-owned equipment may lead to constant changes in rates, which could confuse accounting and billing procedures. After the initial review scheduled for 1998, the issue of the frequency of reviews would be re-examined, it states.

Statements on Death, Disability Benefits, Reimbursement for Equipment

YUKIO TAKASU, United Nations Controller, introduced the Secretary- General's reports.

C.S.M. MSELLE, Chairman of the ACABQ, introduced his Committee's reports. He said that on the procedure for determining reimbursement for contingent-owned equipment, the General Assembly could approve the proposals in which the Secretary-General agreed to the suggestions of the working groups. He recalled the ACABQ report as saying that the Secretary-General had accepted the recommendations of the working groups on such issues as leasing and self-sustainment concepts, preparation of equipment, upon deployment and redeployment, standards for major equipment, as well as for self-sustainment,

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deployment of ammunition and adoption of a revised model services agreement, as well as on most sub-issues regarding transportation of equipment.

However, he continued, at the time of preparing the Secretary-General's report, differences existed on issues such as inland transportation, liability of the United Nations under the lease system, loss or damage of equipment and "mission factors", such as environmental and operational conditions impacting on equipment life and maintenance costs. On the question of reimbursement for inland transportation, the ACABQ had pointed out several of its concerns regarding the adequacy of the justification presented by the Secretary-General and the scope of applicability of those proposals. The General Assembly might take those into account when it considered the recommendations of the Phase III working group. The outstanding issues should not be seen as impediment of the new procedures suggested. Member States should take part in the procedure, and the Secretary-General should monitor its implementation when introduced.

LORENZO FERRARIN (Italy), also speaking for the European Union, said that the Union supported most parts of the Secretary-General's proposals and the comments of the ACABQ. While sharing the thrust of the reports, the Union was confident that the approach would lead to concrete results. The introduction of the "lease" concept would be a significant element of reforming the reimbursement procedure for contingent-owned equipment.

He said the Union would prefer to maintain the present practice of not reimbursing the inland transport costs of equipment from the point where it was based to the point of embarkation. Changing that practice could affect proposals designed to streamline and standardize existing procedures. It could also create difficulties for the United Nations regarding claims verification and validation.

He said, regarding responsibility for loss or damage due to no-fault incident to contingent-owned equipment, the Union welcomed the proposal outlined in paragraph 11 of the ACABQ report for settling disputes. On loss or damage due to hostile action and forced abandonment, the Union could agree to the recommendations to limit United Nations responsibility for loss and damage of major equipment to those cases with collective value equal or exceeding $250,000. The threshold element should be introduced immediately. Member States should be responsible for loss and damage due to hostile actions for each item of equipment below the threshold.

On the other hand, he added, the United Nations would be responsible for each major piece of equipment above that threshold and those whose collective value exceeded the threshold of $250,000. Reimbursement for extreme environmental and intensified operational conditions could be combined into only one factor not exceeding a percentage of the reimbursement rates for minor equipment and for leasing costs for major ones. Arrangements for

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reimbursements for special equipment should be based on data from the Member State involved and the Secretariat.

TRYGGVE GJESDAL (Norway) said that the arrangement for reimbursement to Member States for contingent-owned equipment had functioned poorly for many years. A recent document presented to the high-level working group on the financial situation indicated that the Organization now owed Member States in excess of $600 million in reimbursement for equipment. However, recent progress made in improvements in reimbursement procedures was very encouraging, particularly the agreement reached on the wet and dry lease arrangements and the self-sustainment approach. He expressed the hope that the introduction of the new reimbursement system to be agreed on by the Assembly would not be delayed by staff cutbacks.

Regarding reimbursement for inland transportation of equipment to the port of embarkation, he said such an arrangement would ensure equity among compact and widely dispersed countries. A possible compromise could be sought on the matter based on the same principles for reimbursement that would apply from the port of embarkation to the mission area. He supported the ACABQ's recommendation that the issue of liability of the United Nations for loss or damage of equipment be dealt with through the recourse mechanism for settlement of disputes set out in the new contribution agreement.

On the issue of compensation for loss or damage to major equipment due to hostile action or forced abandonment, he said he believed that the compensation should be further differentiated beyond the recommendation of the ACABQ. Under a wet lease arrangement, any loss would be identical to that suffered under a dry lease. When dealing with damage to major equipment under a wet lease, the contingent in question would have to be compensated for repair costs that would not arise under a dry lease.

He said that, in the context of the establishment of environmental and operational factors, extreme conditions experienced in several operations merited retaining both factors and that their application should be predetermined in the contribution agreement in each case. The issue of third party liability of the United Nations had not been addressed by the Secretary- General or the ACABQ, he said. He found it unfortunate that the proposals did not confirm that third party liability would remain with the United Nations under the new arrangements. "If, as we believe, there is no doubt as to the United Nations third party liability, we see no objection to confirming it explicitly in the new system we adopt, including in the new contribution agreement."

NALIN SURIE (India) said that the report of the working groups on contingent-owned equipment had presented a comprehensive package of reforms. The Secretary-General had endorsed most of them, but he had not accepted two, the first on reimbursements of inland transportation, and the second on the

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loss or damage to major equipment due to hostile action or forced abandonment. The Secretary-General had not given any basis or empirical data to support his position.

He supported the view of the working groups on those matters and also backed their recommendation for additional compensation for environmental and operational factors. The two were not directly related to one another. Their consolidation, as proposed by the Secretary-General, would not be logical. The recommendations of the working groups should be adopted in total.

On the issue of uniform compensation for death and disability, he said that the forty-ninth session of the General Assembly had accepted that the principle of equal treatment of Member States must be the basis of any system of compensation. The Non-Aligned Movement Summit, too, had accepted that principle. He appealed to all delegations to adopt a constructive attitude on the matter. The system of compensation featuring standardized rates of payment for death and disability would ensure simplicity and speed of administration. As proposed by the Secretary-General, it should be adopted soon. The uniform global insurance scheme to cover all troops should be examined.

SAM HANSON (Canada), also speaking on behalf of Australia and New Zealand, said the new proposal for reimbursement was "a landmark initiative". The current budgetary and reimbursement system for peace-keeping operations was cumbersome and bureaucratic and had led to increasing frustration on the part of the Secretariat and the troop-contributing countries with regard to the processing of claims and the timely receipt of reimbursements. The new system promised to simplify and improve the financial management of peace- keeping operations, particularly from a budgetary and reimbursement perspective. From the perspective of the Department of Peace-keeping Operations, the new system would enhance the budgetary process through the application of the standard costs developed for personnel and equipment.

He endorsed the ACABQ's recommendations on inland transportation, liability, loss and damage, and mission factors. However, there were several issues highlighted in the ACABQ's report which might require further analysis. However, they were not impediments to the implementation of the proposed system. They could be resolved in the course of the fine-tuning that would take place during the first year of implementation. He expressed support for the implementation of the new system from 1 July. It was a significant accomplishment in which all concerned could take pride. He looked forward to a smooth implementation and transition period, he said.

BINOD BISTA (Nepal) said that the unequal treatment of troops in providing death and disability compensation was detrimental to the morale of troops serving the United Nations. It might also affect the measure of coordination needed in complex operations. Due to the rapidly changing nature

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of peace-keeping missions, it was all the more essential to bring about stronger cohesiveness in peace-keeping units based on equality and mutual respect. "The least the United Nations should do to the brave souls willing to sacrifice their lives for peace would be to give them a sense of pride, which is only possible through equity and equality of treatment."

He expressed appreciation for the Secretary-General's report on death and disability benefits. He agreed with the ACABQ that the Secretary-General be asked to present detailed proposals, together with draft procedures on implementation, on the administrative, financial and legal implications of those issues. Such a proposal was necessary to reach an informed decision on the question.

PRAYONO ATIYANO (Indonesia), addressing the issue of death and disability benefits, stressed that the Secretary-General should continue his efforts to improve the current arrangement in full compliance with the recent Assembly resolution on the matter. He agreed with the observations made by the ACABQ on the Secretary-General's proposed options two, which concern compensation system featuring standardized rates of reimbursement for death and disability, and three, concerning uniform global insurance. He welcomed further discussion on the two options. Pending the introduction of a new system, steps should be taken to improve the outstanding claims expeditiously, he said.

MARCIO FAGUNDES (Brazil) said that the issue of death and disability benefits mechanisms should be carefully examined, as the principle of equal treatment of Member States was not being fully observed. Artificial differences of treatment among those who, selflessly and without regard to their nationality, had put their lives on the line of duty should not be permitted. A new system of reimbursements for contingent-owned equipment should also be devised. He agreed that the United Nations should reimburse the costs of inland transportation of equipment, as suggested by the working groups on contingent-owned equipment.

ABDUL WAHAB (Pakistan) supported the views of India, Indonesia, Nepal and Brazil. The safety of United Nations personnel was important. He, therefore, welcomed the finalization of a convention on their safety and protection. Also, Member States should take further steps along those lines, whenever present measures were not adequate. Irrespective of nationality, all troops performed the same tasks and were equally dear to their countries. Therefore, death and disability benefits should be applied on the basis of equality.

SAYED RAFIQUL ALOM (Bangladesh) said his country was one of the major troop-contributing States of the United Nations. He agreed with most of the recommendations of the working groups, with some reservations. He accepted the recommendations of the working groups and the Secretary-General on self- sustainment, subject to some conditions. Provisions should be made for some support services to be attained from the United Nations or other countries, especially when a troop-contributing State was one of the least developed countries. If not, the ability of those States to take part in peace-keeping missions might be limited. He would be ready to discuss the issue of compensation for the loss of equipment under hostile action or forced abandonment. Also, the principle of equal treatment of Member States should

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be maintained regarding death and disability benefits.

ZHANG WANHAI (China) said he agreed with the views of India, Indonesia and Brazil. He asked for a clarification on the contents of the table in Annex II of the Secretary-General's report on death and disability benefits, which contained a comparison of actual amounts claimed by troop-contributing countries. He asked whether the standard rates quoted therein were actual compensation rates.

Mr. TAKASU, United Nations Controller, responding to the question, said the table indicated the amounts that would be required if the Secretary- General's proposals were accepted. Those amounts were what the Organization would pay. The current procedure did not have a ceiling or standard rating. Therefore, in some cases, the Organization would have to pay high rates. The new proposal would establish a standard rate of $50,000 per case, to a total estimated cost of $5.9 million. The second column of Annex II contained the amounts submitted by Member States. In some cases, the amounts were very high. The advantage of the Secretary-General's proposal was to establish a standard rate.

Mr. ZHANG (China) said he would like to emphasize that the most important principle in General Assembly resolution 49/233 was the question of equity -- equal treatment of all Member States. Although national procedures relevant to the issue were different, all Member States were contributing to United Nations peace efforts and, hence, they should all receive equal treatment. The principle should be emphasized in any formula agreed on.

PHILIP OWADE (Kenya) said, as a troop-contributing country, the issue of death and disability benefits was extremely important. The new system should take account of equal treatment of Member States. The old system was discriminatory in effect, even though not in intent. Expressing support for earlier statements on the matter, he said he supported option two, concerning standardized rates of reimbursement for death and disability, but was willing to participate in further discussions on it.

MOHAMED FATAH (Egypt) expressed support for the views of India, Indonesia and Brazil on the death and disability benefits.

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