FIFTH COMMITTEE TAKES ACTION ON FINANCING OF UNDOF, UNIFIL AND UNIKOM

Press Release
GA/AB/3125

FIFTH COMMITTEE TAKES ACTION ON FINANCING OF UNDOF, UNIFIL AND UNIKOM

The General Assembly would give back to Member States some $17.5 million gross from the unencumbered balances in the accounts of the United Nations Disengagement Observer Force (UNDOF), United Nations Interim Force in Lebanon (UNIFIL) and the United Nations Iraq-Kuwait Observation Mission (UNIKOM), if it adopts three draft decisions on the missions approved this morning without a vote by the Fifth Committee (Administrative and Budgetary).

For Member States that had paid up their dues to the missions, their respective shares in the balance would be applied against some of their future assessments. However, the respective shares of States that owed money to the missions would be used to reduce their arrears.

By those texts, the Assembly would distribute to States:

-- $1.2 million gross ($973,100 net) in UNDOF's account for the period from 1 December 1994 to 30 November 1995;

-- $10.6 million gross ($8.8 million net) in UNIFIL's account for the period from 1 February 1995 to 31 January 1996; and

-- $5.7 million dollars gross ($4.9 million net) in UNIKOM's account for the period from 1 November 1994 to 31 December 1995. Since Kuwait bore two-thirds of the mission's costs, two-thirds of the net unencumbered balance -- $3.3 million -- shall be returned to it.

Statements on the financing of UNDOF and UNIFIL were made by the representatives of Lebanon and the United States, while those of Syria and Iran spoke in explanation of position. The United States also spoke in explanation of position after the approval of the draft on UNIKOM. Also this morning, the Committee considered the United Nations common and pension systems, the financing of the International Criminal Tribunals for the former Yugoslavia and for Rwanda, and the statements of the financial implications of draft texts before the Assembly.

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On the financial implications of draft resolutions, the Committee made a recommendation on how the Assembly should handle costs related to the draft on the situation in Central America. It adopted an oral draft decision informing the Assembly that additional appropriations of $331,300 would be required in the regular budget section for peace-keeping and special missions if it adopted the draft resolution contained in document A/51/L.18. The sum would be considered in the context of the first performance report on the 1996-1997 regular budget, by the terms of the decision.

While it took up the financial implications of a draft text from the Third Committee (Social, Humanitarian and Cultural) on international drug control, the Committee could not reach an agreement on what to recommend to the Assembly. The Committee will continue discussing the matter this afternoon. After some discussions on the subvention from the United Nations to the United Nations Institute for Disarmament Research (UNIDIR), the issue was referred to informal consultations.

Statements on the various financial implications and on the subvention to UNIDIR were made by the representatives of Costa Rica (on behalf of the "Group of 77" developing countries and China), Ireland (on behalf of the European Union), Mexico, United States, Cuba, Colombia and Pakistan.

During the discussions on the financial implications of the draft on international drug control, representatives of Cuba and Mexico asked why the Secretariat had proposed meetings of expert groups to help the Commission on Narcotic Drugs prepare for a proposed special session of the Assembly on efforts to combat illicit drug use and trafficking. Mexico's representative suggested that the amount proposed to fund experts' meetings should be deleted, since they had not been requested by the draft resolution approved by the Third Committee.

The Director of the Programme Planning and Budget Division of the Department of Administration and Management, Jean-Pierre Halbwachs, responded to questions from Committee members on the matter.

Also this morning, the Committee concluded its debate on the common and pension systems. During today's discussions, the representative of Uganda said that the Secretary-General should implement the 4.1 per cent salary increase recommended by the International Civil Service Commission (ICSC).

Statements were also made by the representatives of the United States, Latvia, Colombia and Japan. The Chairman of the ICSC, Bel Hadj Amor, responded to questions Member States had raised during the debates on the common system. The Secretary

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of the United Nations Joint Staff Pension Board, Raymond Gieri also spoke in response to the questions that had been raised during the debates on the pension system.

When the reports on the financing of the International Tribunals were taken up, the United Nations Controller, Yukio Takasu, introduced the Secretary-General's report. The Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), Conrad Mselle, introduced the Advisory Committee's comments on them.

The representative of the Netherlands asked the Secretariat to explain why those reports had been introduced late.

The Committee will meet again at 3 p.m. today to continue its deliberations.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue discussing the United Nations common and pension systems and to take up a number of financial reports, including the financing of the International Tribunals for the Former Yugoslavia and for Rwanda and of the United Nations Angola Verification Mission (UNAVEM III). It is also scheduled to consider the budgetary implications of some draft resolutions before the Assembly.

Financing of Tribunal for Former Yugoslavia

The Secretary-General's report on the financing of the International Criminal Tribunal for the Former Yugoslavia (document A/C.5/51/30) asks for $53.5 million net ($58.9 million gross) for 1997, reflecting an increase of some $18.1 million and 36 posts over $35.4 million net and 337 posts respectively for 1996. The Tribunal also has 55 loaned personnel.

The Hague-based Tribunal consists of the Chambers, with two Trial Chambers and an Appeals Chamber; the Office of the Prosecutor; and the Registry, servicing both the Chambers and the Office of the Prosecutor. The biggest share of the $53.5 million net would go to the Registry, with $34.5 million. The Prosecutor's Office would take $16.7 million, with the Chamber receiving some $2.3 million. Of the 36 extra temporary posts proposed for 1997, 15 (3 Professionals and 12 General Service) would be for the Prosecutor's Office, where they would continue preparing prosecution cases in 1997. Twenty-one posts (1 Professional, 11 General Service and 9 Security Service) would maintain the premises, process data and provide security.

By budget item, about $27.4 million would be spent on temporary posts, according to the report, with $6.5 million allocated for general operating expenses. Included in the general expenses is $2.4 million for renting the Aegon building which houses the Tribunal. Then, about $6.2 million is provided for contractual services, $3.1 million for travel and $1.8 million for judges' salaries and allowances.

In addition to those activities, the Secretary-General said, plans are being developed for 1997 for the building of a second courtroom and court facilities to accommodate the two Trial Chambers and the Appeals Chamber. The sum needed for construction would be $2.4 million.

In concluding, the Secretary-General stated that the Assembly may wish to finance half of the $53.5 million net ($58.9 million gross) by charging about $26.7 million to the budget of the United Nations Peace Forces in the former Yugoslavia (UNPF). The other $26.7 million would be assessed according to the 1997 scale of assessments.

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In 1996, the Tribunal entered a new phase in its development as a judicial organ with the beginning of trials, according to the report. So far, 18 indictments involving 75 accused have been confirmed by the Tribunal's judges. On 29 November, the first sentence for a crime against humanity by an international court since the Nuremberg and Tokyo trials was handed down by the Tribunal when it sentenced Drazen Erdemovic to 10 years for his part in the murder of 1,200 unarmed civilians around the city of Srebrenica on 16 July 1995. The Court said that Mr. Erdemovic was responsible for killing 10 to 100 people.

In its related consolidated report on the Tribunals for the former Yugoslavia and for Rwanda (document A/51/7/Add.5), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommends $47.4 million gross ($42.3 million net) for the financing of the former Yugoslavia Tribunal in 1997. The amount's assessment could take into account the Tribunal's $12 million unencumbered balance.

The ACABQ says that the Secretary-General's 1997 budget proposals for both Tribunals are limited to the present establishment as approved for 1996 and the minimum needs for 1997. The Secretary-General will submit revised 1997 budget proposals for the Tribunals, upon the conclusion of the reports of the Office of Internal Oversight Services which were requested by the General Assembly last June. The Assembly had asked for the Office to inspect the Tribunals to identify problems, recommend measures to enhance the efficient use of resources and report to the Assembly's fifty-first session. The reports of the Office are expected to be finalized by the end of December and the revised 1997 Tribunals' budgets would be submitted subsequently, taking into account the Oversight recommendations. The ACABQ asks for the revised estimates submission by 3 February 1997.

The ACABQ says that the Secretary-General has proposed 373 posts (excluding 11 judges) for 1997, showing an increase of 36 posts. Since the Advisory Committee has not pronounced its views on any new posts, it says that proposals on them should be submitted in the revised budget. The ACABQ states it was informed that as of 15 November, there were 63 posts vacant.

Financing of Tribunal for Rwanda

The report of the Secretary-General on the financing of the Rwanda International Tribunal (document A/C.5/51/29) contains the Tribunal's 1997 resource requirements. The amount of resources solely for the period from 1 January to 31 December 1997, amounts to $46.7 million net ($51.4 million gross). It reflects a net increase of $10.2 million and an additional 21 posts over the 1996 appropriation and authorized staffing level.

The Assembly is asked to finance the amount for 1997 of $46.7 million net ($51.4 million gross) after first applying the unencumbered balance of

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1996, subject to information on the availability of funds to be provided prior to a decision being taken by the Assembly.

Pending issuance of the report of the Office of Internal Oversight Services, pursuant to Assembly resolution 50/213 C of 7 June and to ensure the continued operation of the Tribunal without disruption in 1997, the Secretary-General proposes that real resources for 1997 be kept at the 1996 level, to be augmented solely by those additional resources required to meet the immediate and non-deferrable exigencies of the Tribunal.

The Tribunal, with its headquarters in Arusha, United Republic of Tanzania, and its Office of the Prosecutor in Kigali, Rwanda, consists of the following organs: the Chambers, comprising two Trial Chambers; the Office of the Prosecutor; and the Registry, servicing both the Chambers and the Office of the Prosecutor.

Estimated requirements for the 1997 assessed budget of $46.7 million consists of $2.3 million for the Chambers; $19.1 million for the Office of the Prosecutor; and $25.4 million for the Registry. An estimated $2 million would be derived from extrabudgetary resources. Decreases in the costs of the Prosecutor's Office and the Registry from the amounts appropriated in 1996 reflect the discontinuation of requirements of a one-time non-recurrent nature such as those expenses related to construction or the initial provision of furniture and equipment.

The increases reflect the requirements arising from the Tribunal coming into full operational status with a schedule of trials extending for the first time throughout the year, the report states. Most of those exigencies arise within the Registry and take the form of requirements for 21 temporary posts as well as general temporary assistance to provide for critical security functions and court stenographers. The 21 temporary posts relate directly to court management functions, including witness protection, interpreters and audiovisual technicians for the courtrooms, which are considered essential for the smooth processing of the cases scheduled to be tried in 1997. It is proposed to regularize the Victims and Witnesses Unit within the 1997 assessed budget. The Unit was established with extrabudgetary funds in mid-1996 to assist prosecution and defence witnesses.

To date, cash contributions to the Voluntary Fund for the Tribunal amount to $6.4 million from 18 Member States and observers. In addition, a number of Member States have made contributions-in-kind to the Tribunal. However, in view of the delays experienced by the Tribunal in attaining a fully operational phase until early 1996, expenditures from the Fund have been slower than expected.

In its related consolidated report on the Tribunals for the former Yugoslavia and for Rwanda (document A/51/7/Add.5), the ACABQ recommends that

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at the present stage, the Assembly appropriates the amount requested by the Secretary-General -- $46.2 million gross ($41.7 million net) for the Rwanda Tribunal for 1997. The assessment for the amount would take into account the unencumbered balance of $12 million in respect of 1996. The recommendation is made while the ACABQ awaits the report of the Office of Internal Oversight on both Tribunals, as well as the Secretary-General's revised 1997 budgets which will be submitted subsequently, taking full account of the Office's reports.

Throughout the report the ACABQ stresses the importance of the Tribunals' mandates. The Advisory Committee reiterates that the allocation of approved resources should take into account the need to accord high priority to investigation and prosecution. In that connection, with regard to concerns about the staffing of the Rwanda Tribunal, it requests the Secretary-General to provide an up-to-date staffing table for each organizational unit and to report on total deployment of resources among units of the Tribunal.

In addition, the ACABQ emphasizes that cost-cutting measures introduced at Headquarters to achieve savings in the regular budget should not apply to the special accounts of both Tribunals without specific authorization by the General Assembly. The Advisory Committee also believes that the resources appropriated and authorized for the Tribunals should be administered with flexibility consistent with the United Nations Financial Regulations and Rules.

Turning to the loaned personnel working for the Tribunals -- on the former Yugoslavia and on Rwanda -- the ACABQ notes that donors are charged 13 per cent support costs in respect of those personnel. It recalls having said that the 13 per cent charge was a policy issue that should be addressed by the General Assembly. Due to the late issuance of the Secretary-General's report on gratis personnel, the ACABQ was not able to complete its consideration of the matter before the end of 1996. It will resume considering gratis personnel in February/March 1997 and then make recommendations on the issue as it affects the Tribunals.

Drafts for Action

The draft decision on the financing of the United Nations Disengagement Observer Force (UNDOF) (document A/C.5/51/L.14) would have the Assembly decide on what to do with an unencumbered balance of $1.2 million gross ($973,100 net) in the mission's account for the period from 1 December 1994 to 30 November 1995. For Member States that had paid up their dues to the mission, their respective shares in that balance would be used to set off some of their future assessments. However, the respective shares of Member States that owed money to the mission would be used to reduce their arrears.

The draft decision on the financing of the United Nations Interim Force in Lebanon (UNIFIL) (document A/C.5/51/L.15) would have the Assembly decide to

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treat in the same way the unencumbered balance of some $10.6 million gross ($8.8 million net) in the mission's account for the period from 1 February 1995 to 31 January 1996.

By a draft decision on financing of the United Nations Iraq-Kuwait Observation Mission (UNIKOM) (document A/C.5/51/L.16), the Assembly would decide that for Member States that have fulfilled their financial obligations to the mission, there shall be set off against their future apportionments their respective share in the unencumbered balance of $2.4 million gross ($1.6 million net). That amount represents one third of the unencumbered balance of $5.7 million dollars gross ($4.9 million net) for the period from 1 November 1994 to 31 December 1995. It also takes into consideration the voluntary contributions from the Government of Kuwait of the two-thirds share of the cost of the Observation Mission.

The draft text would also have the Assembly decide that 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 obligations. The Assembly would be asked further to decide that two thirds of the net unencumbered balance of $4.9 million dollars, equivalent to $3.3 million dollars, shall be returned to the Government of Kuwait.

By other terms of the text, the Assembly would request the Secretary- General to take immediate action to recover the overpayment of an estimated $844,000 relating to mission subsistence allowance. The Secretary-General would be asked to report to the Assembly, no later than 31 May 1997, on the results of the actions taken for its recovery, as well as on the comprehensive review of the Organization's policies on compensatory time off and mission subsistence allowance.

Financial Implications of Assembly Drafts

Statements on programme budget implications are submitted to the Fifth Committee under the Assembly's rules of procedure which provide that the Assembly shall not vote on any resolution with financial implications until the Committee has had a chance to state the proposal's effects on the United Nations budget.

The Secretary-General's statement on the budget implications of the draft resolution on the situation in Central America: procedures for establishing peace, democracy and development (document A/C.5/51/32) indicates that the adoption of that text would create the need for additional appropriations of $331,300 in the 1996-1997 budget's section for peace-keeping and special missions.

The Secretary-General explains that, should the Assembly adopt the draft, he would support the implementation of the comprehensive peace

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agreements in Central America. That means he will provide substantive support and political guidance to the Mission for the Verification of the Agreements on Human Rights and of Compliance with the Commitments of the Comprehensive Agreement on Human Rights in Guatemala (MINUGUA) and the United Nations Office of Verification in El Salvador (ONUV). He will also help the support group for Nicaragua (Canada, Mexico, Netherlands, Spain and Sweden), which is helping the nation's efforts towards national reconciliation, economic recovery and social development.

Those activities, he says, will require the continuation of three temporary posts (one P-5, one P-4 and one General Service) which will cost $331,300. Since no provision has been made in the 1996-1997 budget for the amount, he does not anticipate the requirements to be absorbed within the budget section on peace-keeping and special missions. Further, since the work sought by the draft is extraordinary and relates to the maintenance of peace and security, it should be dealt with outside the procedures for the contingency fund. An additional appropriation of $331,000 will be required.

According to the Assembly resolution (411213) on the contingency fund, additional needs for such extraordinary expenses as those for maintaining peace and security shall not be covered by the fund. The Secretary-General should however, try to absorb them through savings from the budget without hampering the delivery of programs or without prejudice to the use of the contingency fund.

A note by the Secretary-General transmits a request for a $213,000 subvention from the United Nations regular budget to the United Nations Institute for Disarmament Research (UNIDIR) (document A/C.5/51/33). The note explains why the Board is seeking a reduced subvention even though the original United Nations budget proposed by the Secretary-General had allocated a $440,000 subvention for UNIDIR for 1996 and 1997. It says that in the light of the Assembly's request for $154 million savings from the United Nations budget, the UNIDIR Board had agreed to cut the Institute's subvention for 1997 to $213,000, reflecting a $7,000 reduction from the customary annual sum of $220,000. Should the Assembly approve the Board's recommendation, no additional appropriation would be required to finance that sum.

Reporting on the Institute's financial situation in accordance with an Assembly resolution, the Board states that UNIDIR earned $1.3 million in 1996, and spent some $1.2 million. The income came mainly from voluntary contributions of $1 million and a subvention of $213,000. Available funds at the end of 1996 are estimated at $181,300. Total requirements for 1997 are estimated at $949,000, according to the report.

The Secretary-General's statement of budget implications on international action to combat drug abuse and illicit production and trafficking (document A/C.5/51/36) informs the Assembly that additional

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expenses of $976,500 would arise in 1997, if it adopts a draft resolution on that subject from the Third Committee (Social, Humanitarian and Cultural). The amount, which would fall under the budget's section on international drug control, would fund a June 1998 special session of the Assembly on combating illicit drugs and the preparatory work that would set the stage for the session.

Since $372,100 could be met by redeploying regular budget resources and $313,900 would come from extrabudgetary resources, the Secretary-General states, the balance of $290,500 would be subject to the procedures of the contingency fund. The total substantive requirements of $528,600 for 1998 would be included in the proposed budget for 1998-1999, which would be submitted next year.

The contingency fund is established to accommodate additional expenditures emanating from mandates that are not included in a budget. Under the procedures of the fund, if those costs exceed what is left in the fund, they can be met only by redeploying resources from low-priority areas or by modifying existing work. [The fund currently stands at about $19.4 million.]

Should the draft text be adopted, the Secretary-General explains, a special session of the Assembly on the fight against illicit drugs would be held for three days in June 1998. The Commission on Narcotic Drugs would act as the preparatory body for the session.

According to the statement on the financial implications of the draft resolution on the elaboration of an International Convention to Combat Desertification (document A/C.5/51/39), the requests made by the text would either be absorbed within the calendar of meetings for 1997 or dealt with under the proposed 1998-1999 budget. To be absorbed within the calendar would be the first session of the Conference of the Parties to the Convention which, according to the draft text, would be held in Rome from 29 September to 10 October 1997. The funding of the Convention's secretariat would be considered under the 1998-1999 budget.

Financing of UNAVEM

In a financial performance report for UNAVEM III (document A/51/494) for the period from 9 February to 31 December 1995, the Secretary-General asks the Assembly to distribute to Member States an unencumbered balance of $20.8 million gross ($20.6 million net) for that period.

He says that the balance emerged after the mission spent $220.2 million gross ($216.9 million net) of its appropriation of $250.8 million gross ($247.3 million net). The amounts exclude about $9.8 million, rolled over from the period ending December 1995 to that beginning 1 January 1996, with the concurrence of the ACABQ.

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A 7 November addendum to the Secretary-General's report on UNAVEM III (document A/51/494/Add.2) revises the mission's costs for the period from 1 July 1996 to 30 June 1997, to $314.7 million gross ($308.6 million net) from the $329.7 million gross ($323.3 million net) contained in an earlier addendum of 4 November (document A/51/494/Add.1). The new estimates are based on a decision, in relation to Security Council resolution 1075 (1996), to withdraw 650 personnel by the end of December.

The latest addendum asks the Assembly to appropriate and assess $152.7 million gross ($149.7 million net) for UNAVEM for the period from 1 July 1996 to 30 June 1997. The amount, which would include $4.1 million for the support account for peace-keeping missions, would be an addition to the $170.1 million gross ($167 million net) appropriated last June for the period from 1 July to 31 December. It seeks the assessment of the $152.7 million gross ($149.7 million net) at a monthly rate of about $25.5 million gross ($25 million net), beginning 1 January 1997, should the Council extend the UNAVEM mandate beyond today, 11 December.

After reviewing those proposals, the ACABQ recommends, in its report on UNAVEM III (document A/51/700 and Corr.1), that the Assembly appropriate some $138 million gross ($135 million) for the period from 1 July 1996 to 30 June 1997. It recommends the amount be assessed at a monthly rate of about $23 million gross ($22.5 million net) beginning 1 January 1997, should the Council extend the UNAVEM mandate. The Assembly's action would take total UNAVEM appropriations for the period from 1 July 1996 to 30 June 1997 to $308.1 million gross ($302 million net).

As for the period from 9 February to 31 December 1995, the ACABQ agrees that the Assembly should distribute to Member States, the unencumbered balance of $20.8 million gross ($20.6 million net) in the mission's account.

Annexed to the report are the names, work and monthly remunerations of eight consultants hired by the mission in the period ending 31 December 1995 at a total cost of $136,700. Their pay ranged from $2,827 to $4,900. About $40,000 was spent on their travel.

Statements on United Nations Common and Pension Systems

HAROLD ACEMAH (Uganda) said the Fifth Committee should not second guess the International Civil Service Commission (ICSC) on technical questions within the Commission's competence. The attempt to challenge the base salary proposals for Professional and higher categories would undercut the meaningful application of the Noblemaire principle and further erode the foundation upon which an independent and impartial international civil service was established. The current conditions of service had made that service vulnerable and, as a result, some Member States had resorted to using supplementary payments. It had also led to the use of loaned personnel.

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Failure to provide remunerations which fully considered the conditions of service of the best-paid national service would further expose staff to pressure and make it harder for the Secretary-General to retain the highest quality of staff, he stressed. The margin methodology used by the ICSC was appropriate and technically well-based. There were no technically valid reasons not to adopt the ICSC's recommendation to restore the desirable mid- point of 115 of the margin range of 110-120. [Note: The margin is the percentage difference by which United Nations wages exceed the United States federal civil service pay. The 115 point means United Nations wages should be 15 per cent above those of the United States civil service.] Uganda would support the recommendations of the ICSC.

Turning to the application of the Noblemaire principle, the representative said that the ICSC had studied its application in order to ensure the competitiveness of the United Nations common system. It had found that the salaries of the Organisation for Economic Cooperation and Development (OECD) and related entities exceeded those of the United Nations by some 50 per cent, while those of the World Bank were 40 per cent above those of the United Nations. One national civil service had net remuneration levels that were 10 per cent above those of the United States, with which United Nations salaries were compared. Were it not for some national sensitivities, the comparator civil service would have been changed. With such a background, the granting of a 4.1 per cent salary increase would be the least that could be done to ensure that the Noblemaire principle was respected. The Secretary- General should implement the ICSC recommendations.

BEL HADJ AMOR, the Chairman of the ICSC, said that the Commission would welcome the participation of staff in the work of the Commission. The ICSC would consider a suggestion by the Coordinating Committee for International Staff Unions and Associations (CCISUA) for the establishment of a tripartite working group composed of members of the ICSC, the United Nations administration and of the Coordinating Committee. Both the CCISUA and the Federation of International Civil Servants Associations (FICSA) should take part in the ICSC's discussions on the matter.

Regarding the questions of the base/floor salary and the margin, the ICSC Chairman said that increases recommended by the Commission were intended to "move in lock-step with the comparator increases in Washington, D.C." The current base/floor scale recommended for 1 March 1997 was no exception. The ICSC recommendations also addressed other issues raised by the General Assembly, such as the competitiveness of the United Nations common system. It had found that the common system was at a competitive disadvantage, leading to recommendations of real pay increases. As for the 3.1 per cent across-the- board salary raises proposed, the competitiveness of the common system salary levels had become an even more important issue at a time when United Nations organizations were being asked to do more with fewer staff. He then explained some of the factors that the ICSC had considered in making its recommendations

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regarding the margin between the United Nations and United States civil service salaries. While the introduction of special occupational pay rates would address some of the recruitment and retention problems faced by United Nations organizations, those entities had not shown enthusiasm for that approach.

Addressing the questions about the overlap between the Professional and General Service salaries, the ICSC Chairman said that they would be considered by the Commission next year. On the mobility and hardship allowances, he said that the ICSC held the view that a mechanism was essential for keeping them current. An adjustment mechanism should be transparent and easily understood. On the inclusion of bonuses and awards in the net remuneration comparisons, he said that such an action was necessary where large proportions of the comparator's staff received annual cash payments. Non-inclusion of such payments would have distorted net remuneration comparisons.

RAYMOND GIERI, Secretary of the United Nations Joint Staff Pension Board, welcomed the support of Member States for the Fund's supplementary budget requests for the 1996-1997 biennium. Early approval of those additional resources, chargeable to the Fund, was essential. He also welcomed Member States support for the cooperation between the ICSC and the Pension Board on the methodology for the pensionable remuneration of all staff, including the introduction of a common scale of staff assessment for pensionable remuneration purposes. He hoped that the continued application of the current provisions of the special index for pensioners as agreed to by the two bodies would also receive the Committee's support. Appealing for early approval of those recommendations, he said that deferring such decisions would make it more difficult to move forward on the scheduled reviews of other issues.

It was desirable for the administration of the International Tribunal of the Law of the Sea to have an early decision on the admission of that organization to membership in the Fund, effective 1 January 1997, he said. He appealed further for a decision this year on the Pension Board's recommendations for two changes in the pension adjustment system. They related to long-standing issues of importance to staff residing in developing countries which have experienced significant changes in the relationship between the local currency and the United States dollar.

Member States concerns about reviews in progress on the entitlement to survivors' benefits for spouses and former spouses, as well as about possible amendments to the Fund's regulations providing suspension of pension benefits when retirees were employed for periods of less than six months, would be brought to the attention of the Pension Board and its Standing Committee, he said.

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Referring to the proposed agreement between the Government of the Russian Federation and the Pension Board, he said it would not be appropriate to comment on the views expressed in the Committee on the legal and financial obligations of the Russian Federation with respect to former participants who were citizens of Ukraine, Belarus and of the other States which had been part of the former Soviet Union. Differences of views among the States concerned over the disposition of those monies could not be resolved by the Fund's secretariat or by the Board. The Member States must resolve their differences regarding the payment of the monies necessary to provide some assistance to the former participants in the Fund. If those matters could not be resolved by the States concerned there could be no solution, either step by step or comprehensive, now or in the future.

JAMES BOND (United States) referring to the ICSC's recommendations for the common system, reiterated his delegation's position that had the remuneration margin [between the remuneration of the common system's professional salaries and the United States federal civil service] been computed using the approved methodology, the net remuneration margin would have been 114.

ULDIS BLUKIS (Latvia) said it was not clear that Mr. Gieri had answered the question he had posed on the pension benefits of permanent residents of his country who were affected by the problems of the transfer agreements between the Russian Federation and the Pension Board.

AURELIO IRAGORRI (Colombia) said the Committee must take a decision during the current session on the issues that had financial implications, such as the ICSC's recommendations. The Directors of the various organizations of the common system could not be told that the Fifth Committee had postponed such decisions again. Failure of some organizations to comply with the current guidelines of the common system reflected the need for a resolution on the matter. Member States should devote time during the current session to the problems of the common system. The reform of the common system must be initiated by the Assembly with the cooperation of the Directors of the various organizations.

HIDEKI GODA (Japan) said that the Assembly had a responsibility towards the common system and a decision should be taken on the conditions of service at the end of the year. He wanted to hear the views of the ICSC Chairman on the statement by the United States.

MR. AMOR, ICSC Chairman, said he agreed with the United States representative that if the former methodology had been used, the remuneration margin would be 114 or close to 115.

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Statements on Financing of International Tribunals

YUKIO TAKASU, United Nations Controller, introduced the Secretary- General's report on the Tribunals for the former Yugoslavia and for Rwanda, seeking maintenance resources for them for 1997. The Secretariat would issue as early as possible in 1997, the revised budgets of the Tribunals, after considering the reports of the Office of Internal Oversight Services on the matter. Early 1997 would be a busy period for the financial staff of the Secretariat who would be involved in preparing the proposed 1998-1999 budget, he added.

C. S. M. MSELLE, Chairman of the ACABQ, introduced and reviewed the report of the Advisory Committee.

PAUL MENKVELD (Netherlands) said that since the Assembly had asked the Secretariat to submit the initial budget reports no later than 1 November, the reasons for their late issuance should have been explained by the Secretariat's representatives.

MR. TAKASU said that the delay was due to the fact that when the Assembly discussed the reports on the Tribunals, it had also asked for Oversight Office reports on those Tribunals. Even though the Oversight Office had been asked many months ago to submit its report, its investigation had taken place only recently. Therefore, the Secretariat decided to submit the current documents without waiting for the reports of the Oversight Office. The Oversight report would not be ready this year and the Secretariat had to submit estimates before the end of the year.

Action on Financing UNDOF and UNIFIL

ULDIS BLUKIS (Latvia) introduced the draft decisions on the UNDOF and UNIFIL. The Secretariat had been expected to explain certain issues that had been raised by the ACABQ on the funding of those missions, he said.

[Note: In its report on the missions, the ACABQ had drawn attention to something common to UNDOF and UNIFIL. It stated that since their inception, both of them had received military observers from the United Nations Truce Supervision Organization (UNTSO). While the observers reported to the UNDOF and UNIFIL Force Commanders, their administrative expenses were charged to UNTSO. The $19.2 million cost of maintaining 81 observers in UNDOF in 1996-1997 was reflected neither in the UNDOF budget nor in the performance report. Similarly, the $12.6 million cost of 57 observers in UNIFIL was found neither in the mission's budget nor performance report. The ACABQ, therefore, stated that the UNDOF and UNIFIL budgets were understated by those amounts, which were charged to the United Nations regular budget allocation for UNTSO. It asked the Secretary-General to propose how to deal with the situation.]

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LEON HOSANG, Director of the Peace-keeping Financing Division of the Department of Administration and Management, said that the Secretariat's proposals on how to handle that matter would depend on the review of the missions mandates by the Security Council.

HASSAN NAJEM (Lebanon) said that the Council had no relation to the submission of proposals in response to the ACABQ's recommendations. Paragraph 9 of the ACABQ report was understood by Lebanon as having requested technical measures only. The Secretary-General should explain the measures he would take regarding the financial procedures taken in the Organization. As for the transfer of UNTSO's regular budget resources to fund its temporary activities with UNDOF and UNIFIL, he reiterated that the Council had nothing to do with the requests of the ACABQ.

WILLIAM GRANT (United States) had recalled that he previously expressed concern regarding the Oversight Office's findings about UNDOF's employment and procurement practices. The Secretariat should inform the Committee on the progress being made in efforts to correct the Office's findings. The UNDOF management should abide by procurement rules and should not punish staff for criticizing some management practices.

The texts on UNDOF and UNIFIL were approved without a vote.

Explanations of Position

TAMMAM SULAIMAN (Syria) said that the discussion of the item had been scheduled for next Tuesday, 17 December. He had been surprised to find that it was to be discussed this morning. In future, Member States should be informed about any changes to the schedule and about would be considered by the Committee.

On the two draft texts on UNDOF and UNIFIL, he said that had the draft decision been submitted to vote, Syria would have voted against them. That was in line with his country's position that expenditures for those forces should be borne by the aggressor party, Israel, whose aggressive practices had necessitated them.

MORTEZA MIR MOHAMAD (Iran) said that the party responsible should pay for the missions. He would have abstained if a vote had been taken.

Action on UNIKOM

The Acting Chairman of the Committee, KLAUS-DIETER STEIN (Germany) introduced the draft decision on UNIKOM and proposed its approval.

The text was approved without a vote.

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Explanation of Position

MR. GRANT (United States) expressed concerned regarding the overpayment of mission subsistence allowances in UNIKOM. The Secretariat should continue its efforts to recover the overpayments.

Action on PBIs: Situation in Central America

MR. MSELLE, the ACABQ Chairman, introduced the views of the Advisory Committee on the financial implication of the draft resolution contained in document A/51/L.18 on the situation in Central America. The ACABQ recommended that the Fifth Committee inform the Assembly that should it adopt the text, an additional $331,300 would be required. The sum should be considered in the context of the first performance report for the 1996-1997 budget.

EDWARD KELLER (United States) said he was surprised that the Committee was being asked for funding for those same posts once again. He asked whether the Secretariat had anticipated that the positions would be wrapped up in 1996, when the work in Guatemala would end and for how long that in El Salvador would be maintained. The current request should be seen in the view of other large requests for other mandates that would be forthcoming on the MINUGUA and the International Civilian Mission to Haiti (MICIVIH).

NAZARETH INCERA (Costa Rica), speaking for the "Group of 77" developing countries and China, said that the established procedure in resolution 41/213 should be applied. She supported the recommendations of the ACABQ.

PATRICK KELLY (Ireland), speaking on behalf of the European Union, said he would go along with the ACABQ's comments on the matter.

MARTA PENA (Mexico) also agreed with the ACABQ's comments on the matter.

MR. TAKASU, United Nations Controller, said the programme budget implications had been submitted in response to the draft resolution on the situation in Central America on which the Assembly was about to take action. If it were to be adopted, the Secretary-General must have the minimum number of staff to implement the resolution. The Secretary-General was convinced that the peace process in Central America required continued support. The timing of filling the posts was in response to a specific resolution of the Assembly and was valid for 1997. The Secretariat had been had been operating on an annual basis for the provision of posts.

The Committee Chairman, NGONI FRANCIS SENGWE (Zimbabwe), based on the ACABQ's recommendations, proposed that the Committee inform the Assembly of the following concerning the financial implications of draft resolution on the situation in Central America: should the Assembly adopt draft resolution contained in document A/51/L.18, an additional appropriation of $331,300 would

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be required under section 3 (Peace-keeping operations and special missions) of the 1996-1997 programme budget. An additional appropriation of $60,600 would also be required under section 32 (staff assessment) offset by the same amount under section 1 (income from staff assessment). The appropriation would be considered by the Assembly in the context of the first performance report of the 1996-1997 programme budget.

MR. KELLER (United States) said the request should be taken up in the context of the additional requests for other missions, such as MINUGUA and MICIVIH. He asked that the consideration of the item be delayed until he had consulted with his capital.

MS. PENA (Mexico) said that in accordance with the rules and procedures, the Assembly Plenary had to take a decision and the Fifth Committee had to report on the financial implications of the draft resolution. Therefore, what procedure would be followed at the present time? she asked. She was unsure when the plenary was scheduled to take a decision on the text being considered. What would be the impact of the obstacles to the Fifth Committee's decision on the plenary decision? If the Fifth Committee's work could not be coordinated with the plenary, the plenary would not be able to take a decision on that draft and on others.

MR. KELLY (Ireland) said there was no conflict between the ACABQ's proposals and that of the United States at this stage. The question of appropriations would be taken in the context of the first performance report. There was no conflict in the United States' position and the draft decision orally stated by the Chairman.

MR. SENGWE (Zimbabwe), Committee Chairman, welcomed the clarification given by the representative of Ireland. It had cleared the air on the action to be taken. The plenary was awaiting the Fifth Committee's decision and it would meet tomorrow to take action on draft resolutions of the Third Committee (Social, Humanitarian and Cultural). He asked if the Committee would proceed to approve the draft decision he had proposed.

MR. KELLER (United States) said although he did not intend to delay the Committee's work, he would prefer that the item be postponed to some time in the immediate future.

MR. SENGWE (Zimbabwe), Committee Chairman, said he hoped that the representative of the United States would recognize the dilemma that the Committee faced. A delay in its action would delay the Plenary's work and the Fifth Committee's. He pleaded with the United States to rethink its position.

MR. KELLER (United States) said if it was the Chairman's wish to proceed in spite of his delegation's concerns, he would have to state his opposition to the financial implications involved in the draft resolution in question.

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MR. SENGWE (Zimbabwe), Committee Chairman, proposed that a decision be taken. He asked if there were other objections.

The Committee then approved the draft decision on the financial implications of the draft resolution on the situation in Central America.

Statements on PBIs: UNIDIR

MR. MSELLE, the Chairman of the ACABQ, introduced the Advisory Committee's report on a subvention to UNIDIR resulting from the recommendations of Institute's Board of Trustees on that body's 1997 work programme. He said the subvention had already been included in the 1996-1997 budget. He was therefore recommending that the Committee approve the subvention.

MR. KELLER (United States) said last year the Committee had received some guidance on the funding of institutes that were not directly related to the regular budget. Such funding should not be given to outside bodies. If the Assembly were to provide funding to UNIDIR, the expenses should be administered by the Secretariat. The Fifth Committee should begin to address the issue of such funding. It should start to wean UNIDIR off the regular budget and remove it altogether.

However, in a spirit of compromise, he proposed that the subvention be reduced by 50 per cent to $106,500. The subvention also should be cut by an equivalent amount in the 1998 budget and funding should stop the next year. That would give the Institute time to plan for the decrease in its budget. Such a decision was in line with a decision already proposed on the mater and would be fair to all concerned.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said she supported the subvention for the Institute. There had already been a reduction of the Institute's funding. Since it was not clear on what basis the United States had proposed the additional reduction, she could not support that proposal. The Committee should support the ACABQ's recommendations.

MR. SENGWE (Zimbabwe), Committee Chairman, then presented the proposal's made by the United States and by Cuba.

MS. PENA (Mexico) said she agreed with the ACABQ's comments.

MR. SENGWE (Zimbabwe), Committee Chairman, said the ACABQ had stated clearly that the funds were already budgeted. He therefore proposed that the Committee approve the ACABQ's proposals although he understood the United States' position.

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MR. KELLER (United States) proposed that the item should be discussed in informal consultations where he could explain his position in more detail. He intended to address the policy issue, raised every year, of funding for a body which was outside the Secretariat's financial control. He appealed to the Chairman to take his views into account, noting that his views had been disregarded on the decision on the programme budget implications of the draft on the situation in Central America.

MS. RODRIGUEZ (Cuba) opposed discussing the item in informal consultations. She said the United States delegate should give the specific reasons why he was asking for a 50 per cent reduction and explain how the reduction would correspond to the Institute's needs.

MR. SENGWE (Zimbabwe), Committee Chairman, agreed that there should be informal consultations to resolve the issue because of the objections raised by the United States.

The Committee decided to have informal consultations on the UNIDIR's subvention.

Statements on PBIs: Assembly's Special Session on Drugs

MR. MSELLE, Chairman of the ACABQ, introduced the views of the Advisory Committee on the financial implications of the draft resolution on action against drug abuse and trafficking, which would invite the Commission on Narcotic Drugs to prepare a special session of the Assembly as early as possible on that matter, including the possibility of establishing working groups. In his statement on the financial implications of the draft, the Secretary-General had proposed the holding in 1997 of six expert group meetings to prepare substantive materials and reports for the special session. The ACABQ had noted that the expert groups had not been requested by the draft resolution. The Advisory Committee had not been able to confirm the extent to which information on the expert groups had been communicated to the Commission on Narcotic Drugs, and the Economic and Social Council.

Furthermore, he continued, the structure of the preparatory process, including the expert groups, seemed to be too elaborate. It should be streamlined to achieve economies. The status of the expert groups should be clarified by the Assembly before the beginning of the preparatory process. The ACABQ therefore recommended that should the Assembly adopt the relevant draft, an additional $976,500 would be needed in 1997 in the budget section for international drug control. Of that, $372,100 could be met by redeploying existing regular budget resources and $313,900 from extrabudgetary resources. The balance of $290,500 would be subject to the guidelines for using the contingency fund.

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Ms. PENA (Mexico) said she agreed with many of the ACABQ's recommendations, especially on the excessive costs in the statement of budget implications. For instance, it included the costs of expert group meetings that had not be sought by the Third Committee. The Fifth Committee should report to the Assembly that should the text be adopted, the costs for implementing the resolution would come to $447,000 after the deletion of the costs of the expert groups. There could be further amendments to the proposed sums that would be required.

MR. IRAGORRI (Colombia) said that draft resolution had established two different things. It had stated that the Commission on Narcotic Drugs should consider setting up working groups to prepare for the special session. The Commission always operated with working groups that dealt with various subjects but without the need for expert groups that had nothing to do with the Commission. Rather, they had been proposed by individual Governments. He supported the view of the ACABQ that the basis for the experts groups was not clear. Since the expert groups were an invention, the budget implications of their work should be deleted as the groups lacked legislative mandate.

NORMA GOICOCHEA ESTENOZ (Cuba) expressed regret that the Secretariat had included in the programme budget implications, elements that departed from the decisions of the Third Committee. She wondered whether the expert group meetings would proceed as an intergovernmental process. She asked why the Secretariat was proposing such meetings. She also asked whether the Secretariat would postpone two of the scheduled meetings of expert groups that were related to the review of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, concluded in Vienna in 1988.

LINDA SHENWICK (United States) agreed with the views expressed by Mexico and Colombia. The issue of the expert bodies should be referred back to the Third Committee, which should consider the views of the ACABQ in its deliberations. After that, the Fifth Committee could then resume its discussions on the question.

MR. SENGWE (Zimbabwe), the Committee Chairman, said that the Third Committee had adjourned for the session.

JEAN-PIERRE HALBWACHS, Director, Programme Planning and Budget Division, said the Commission on Narcotic Drugs would be the preparatory body for the special session. Since it would not have enough time to conduct its work before the session, the Secretariat felt that ad hoc expert groups should be created to help the Commission with its work.

In response to Cuba, he said that there were 12 working groups, and there was a limit to the number of working groups that would be maintained.

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MS. PENA (Mexico) said that the Third Committee had finished its work for 1996 and was waiting for the Plenary to adopt its reports. It was also waiting for the Fifth Committee's decisions on the programme budget implications. So, the Fifth Committee should act as quickly as possible. She asked whether the provisions for the meetings of experts groups, worth about $529,500, included conference-servicing costs. She wanted to know the total costs of the holding of such expert group meetings. She was not referring to the open-ended working groups, which should be dealt with by the Commission on Narcotic Drugs. She wanted an answer from the Secretariat to enable her to make a suggestion for the Committee's approval.

MS. GOICOCHEA (Cuba) expressed support for the comments by the representative of Mexico. She said she was astounded by the statement by the Director of the Budget Division regarding the need for the Committee to suggest how to absorb the cost of the programme budget implications. What would be the use of the $19-million balance in the contingency fund then? she asked. Since it had noted that the time available to the Commission on Narcotic Drugs was not sufficient, she asked why the Secretariat had not simply suggested the extension of the time granted to the Commission's meetings, instead of proposing the establishment of the expert groups.

MR. IRAGORRI (Colombia) said the Secretariat should say why it could not extend the time available to the Commission on Narcotic Drugs.

MR. HALBWACHS said that the $529,000 did not include provisions for conference services. As to the issue of the absorption of costs raised by Cuba's representative, he explained the contents of the programme budget implications. The issue of extending the session of the Commission would have to be considered by the Secretariat before making further proposals.

LAMJAD SIAL (Pakistan) said he supported the Chairman's proposal to go into informal consultations and reach a decision this afternoon.

MS. GOICOCHEA (Cuba) queried the Committee's organization of work for the afternoon in light of the proposals for informal consultations.

MR. IRAGORRI (Colombia) said he looked forward to a decision being made on the matter this afternoon since the Assembly would meet tomorrow.

MS. PENA (Mexico) said the question of the programme budget implications must be decided on in a formal meeting. She would not go into informal consultations since she was concerned about the timing for a formal meeting to take a decision.

MR. SENGWE (Zimbabwe), Committee Chairman, said he had proposed informal consultations to expedite the process. The scheduled programme of work would proceed this afternoon. The Committee would meet formally at 3 p.m.

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MS. GOICOCHEA (Cuba) said the issue must be decided in a formal meeting. She insisted that there be a decision on the matter. She then asked under what agenda item would the Committee hear a statement by a United States senator.

MR. SENGWE (Zimbabwe), Committee Chairman, said a decision had to be made on the programme budget implications being discussed.

MS. PENA (Mexico) proposed a compromise to the financial implications by eliminating the expert group meetings and the related costs. The Committee would then consider $447.000.

MR. SENGWE (Zimbabwe), Committee Chairman, said Mexico's proposal would reduce the programme budget implications to $447,000.

MR. KELLY (Ireland) requested clarification on the figure proposed by Mexico. He asked if it would replace the amount of $976,500 proposed by the ACABQ Chairman.

MR. HALBWACHS, Director of the Budget Division, said Mexico's proposal would reduce the amount of $447,000. The actual requirement from the regular budget would be $222,100.

FUMIAKI TOYA (Japan) requested the figure to be repeated.

MR. KELLER (United States) said there would be a surplus rather than a reduction of the contingency fund of $222,100 since the Director of the Budget Division had said he would redeploy resources from the regular budget which would no longer take place.

MS. PENA (Mexico) said she did not understand the Secretariat's calculations. She was proposing that the Committee eliminate everything related to the expert group meetings. In that case, the contingency fund might not be needed.

MR. SENGWE (Zimbabwe), Committee Chairman, said since there was an agreement in principle on the reduced amount, a revised text for the draft decision would be prepared for this afternoon's meeting.

The Committee decided to take up the programme budget implications this afternoon.

MR. SENGWE (Zimbabwe), Committee Chairman, responding to Cuba on the work programme, said the United States senator would address the 1998-1999 budget outline.

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MR. SIAL (Pakistan) said he had supported the proposals for informal consultations but he was unsure what the decisions had been.

Ms. GOICOCHEA (Cuba) said she was concerned about the precedent of the statement to be made on the budget outline. The Committee should try to abide by its approved work programme. The Committee had always been addressed by distinguished figures from Member States. However, it was important to abide by the work programme. Those views had to be expressed because of the precedent the decision might set for the Committee's work.

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