USG FOR ADMINISTRATION AND MANAGEMENT BRIEFS FIFTH COMMITTEE ON ORGANIZATION'S FINANCIAL SITUATION

12 December 1996

Press Release
GA/AB/3127

USG FOR ADMINISTRATION AND MANAGEMENT BRIEFS FIFTH COMMITTEE ON ORGANIZATION'S FINANCIAL SITUATION

19961212 UN Will End 1996 With $715 Million Combined Cash Balance in Regular, Peace-Keeping Budgets

The United Nations would end the year with a $715-million combined cash balance in the regular and peace-keeping budgets, Under-Secretary-General for Administration and Management, Joseph E. Connor, told the Fifth Committee (Administrative and Budgetary) this morning as it discussed the Organization's financial situation. He had projected $692 million previously.

However, he said, that balance would show a $195 million deficit in the regular budget and a surplus of $910 million in the various peace-keeping accounts. Moreover, he said, the Organization would owe Member States $990 million as reimbursements for using their troops and equipment for peace- keeping, compared to the $700 million estimated previously.

Outstanding regular budget dues had dropped to $546 million, while unpaid peace-keeping assessments totalled a little over $1.7 billion, he said. The United States owed about 69 per cent of the arrears to the United Nations regular budget.

Commenting on Mr. Connor's statement, the representative of Canada said Member States that had been pursuing increased efficiency, reform and "belt tightening" should set the example in paying their dues. He asked all States to pay their contributions in full, on time and without conditions.

Adding to that call, Austria's representative said the fact that the $990 million owed to troop contributors was higher than the projected combined cash position should encourage others to pay up.

During the discussions on the financial situation, the representatives of Ukraine, Brazil, Syria and China announced plans to pay further amounts to the Organization.

Statements were also made by the representatives of Poland, France, Indonesia, New Zealand, Bangladesh, South Africa, Ireland, (on behalf of the European Union), Cuba, United Kingdom and Latvia.

The discussions on the estimates were followed by a series of questions on the Efficiency Board from the representative of Cuba. Mr. Connor responded.

Also this morning, the Committee concluded general debates on the financing of the International Criminal Tribunals for the former Yugoslavia and for Rwanda, on the United Nations Support Mission in Haiti (UNSMIH) and on four missions in the former Yugoslavia. They are the United Nations Protection Force in Bosnia and Herzegovina (UNPROFOR), United Nations Confidence Restoration Operation in Croatia (UNCRO), United Nations Preventive Deployment Force (UNPREDEP) and United Nations Peace Forces headquarters.

The representatives of Canada, India and the United States made statements on the Tribunals.

The representatives of Mexico and the United States spoke on UNSMIH, while those of France and the United States spoke on the operations in the former Yugoslavia.

The Committee is scheduled to meet again at 7 p.m. today to consider the first performance report on the 1996-1997 budget and the outline of the proposed 1998-1999 budget.

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Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to consider the United Nations financial situation and hear a statement by the Under-Secretary-General for Administration and Management, Joseph E. Connor on the matter. It was also scheduled to consider the financing of the United Nations Support Mission in Haiti (UNSMIH), United Nations Protection Force in Bosnia and Herzegovina (UNPROFOR), United Nations Confidence Restoration Operation in Croatia (UNCRO), United Nations Preventive Deployment Force (UNPREDEP) and the United Nations Peace Forces headquarters.

Financing of UNSMIH

The Secretary-General's report on UNSMIH (document A/51/191/Add.1) contains the proposed budget for the mission's operation and establishment for the period from 1 July 1996 to 30 June 1997. The Assembly is asked to appropriate $57.2 million gross ($54.8 million net) for UNSMIH's operation for that period, inclusive of $13.4 million remaining from the appropriation for the liquidation of the United Nations Mission in Haiti (UNMIH). It is also requested to assess $24 million gross ($23 million net) for the period from 1 July to 30 November 1996 and to assess $4.7 million gross ($4.5 million net) monthly for the period beyond 30 November 1996, subject to the Security Council's decision to extend the mission. [Note: On 5 December, by resolution 1086 (1996), the Council extended the mandate of UNSMIH until 31 May 1997. With 300 civilian personnel and 500 military troops -- a reduction of 100 in the military strength of the mission.] The cost estimates provide for the authorized strength of 600 contingent personnel, and 300 civilian police, supported by 284 civilian staff and 14 United Nations Volunteers.

The report of Advisory Committee on Administrative and Budgetary Questions (ACABQ) on UNMIH and UNSMIH (document A/51/444) recommends that the Assembly approves the establishment of a special account for UNSMIH. Based on its proposal that the Assembly reduce the appropriation of UNSMIH's liquidation, the Advisory Committee recommends that $57.2 million gross ($54.8 million net) be appropriated for the period from 1 July 1996 to 30 June 1997, inclusive of the increased amount of $14.7 million gross ($14.3 million net) remaining from the appropriation the Assembly had provided for UNMIH's liquidation. The ACABQ recommends that the Assembly approve the other proposals made by the Secretary-General.

The ACABQ also recommends that the Secretary-General simplify the UNSMIH structure and rationalize and streamline its civilian personnel component, with a view to reducing the staff and implementing the mission's tasks at the lowest possible cost to Member States.

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Financing of Former Yugoslavia Missions

The Secretary-General's report on the financing of UNPROFOR, UNCRO, UNPREDEP and the United Nations Peace Forces headquarters (document A/51/701) relays the financial performance of the missions for the period from 1 January to 30 June.

In terms of funding, the Secretary-General asks the Assembly to appropriate and assess some $50.3 million gross ($47 million net) for the period from 1 July 1996 to 30 June 1997. The amount would include $1.2 million for the support account for peace-keeping operations. The $50.3 million gross would also include amounts totalling some $38.4 million gross which had been authorized by the Assembly on three separate occasions.

The Secretary-General then asks the Assembly to appropriate $240.6 million gross (and a reduced net sum of $236.4 million) for the period from 1 January to 30 June. Almost all of that amount had been authorized in three phases by the Assembly. He requests the Assembly to assess $151.1 million gross ($148.4 million net) for the period from 1 January to 30 June as an addition to the $89.5 million gross ($87.9 million net) it had assessed previously.

Then, the Secretary-General asks the Assembly to determine what to do with an unencumbered balance of $112 million gross ($115.2 million net) for the period ending 30 June.

Furthermore, he requests it to review the amounts budgeted for reimbursing States for the use of their equipment in peace-keeping missions. The United Nations, he says, owes about $664.9 million for contingent-owned equipment. With $347.1 million currently obligated for reimbursements, an additional $317.7 million appropriation would be needed for contingent-owned equipment. The additional appropriation will be requested when the actual amounts owed to all 30 troop-contributing States were determined.

Statements on United Nations Financial Situation

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management said that as of the end of November there were unpaid assessments of more than $2.4 billion, consisting of $700 million for the regular budget and $1.7 billion for peace-keeping. That was about $300 million less than what he had projected at his last briefing to the Committee in October, he noted. Payments received in the first days of December had further reduced the arrears to just under $2.3 billion.

Regarding the regular budget's current cash position, the Under- Secretary-General said that the negative position of the combined General Fund -- including the regular budget and the reserves -- had grown to $178 million.

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While outstanding regular budget dues, as of 30 November, totalled $697 million, payments at the beginning of this month had lowered that figure to $546 million: $393 million for 1996 assessments and $153 million for prior years. The United States owed about 69 per cent of arrears to the United Nations.

Making projections of regular budget cash flow, he said that the Secretariat had anticipated getting payments of approximately $300 million in the final quarter of 1996. Based on more recent information, it expected to get just over $200 million in that period. He recalled that the United States had told the Secretariat that it would pay some $213 million by the end of 1996. While $150 million of that had been paid, the Secretariat had been told that it would not receive the remaining $63 million this year. In addition, other payments from other Member States previously estimated to total over $29 million were no longer expected before 1997. The combined General Fund would end the year with a negative balance of $195 million, compared to the earlier estimated $103 million.

Turning to peace-keeping cash flow, he said that, as of 30 November, unpaid assessments totalled a little over $1.7 billion. The combined peace- keeping cash position at 31 December would total $910 million. It showed an increase of $115 million over what had been anticipated and would cover the expected shortfall in the regular budget. As for payments to troop providers, payments totalling $299 million had been made and an additional $51 million would be paid by the end of December. Upon receipt of the payments expected from the Russian Federation, the Secretariat would make a $200-million special year-end payment to troop and equipment providers.

He said the amount owed to States at the end of 1996 for troop and equipment costs was $990 million. The increase from an earlier estimate of $700 million reflected mainly two factors. The first was the $75 million shortfall in the special payment the Secretariat had hoped to make. The second was the reassessment of the liability for contingent-owned equipment, mostly for UNPROFOR.

On the combined cash position, he forecast that the combined General Fund would have a deficit of $195 million while the peace-keeping accounts should have a positive balance of $910 million. The Organization's combined cash position would thus be $715 million, compared with the earlier estimate of $692 million.

In concluding, the Under-Secretary-General said that Organization would resort to borrowing from peace-keeping accounts to maintain its basic operations in 1997. The continuing financial crisis undermined reform efforts and distracted the Secretariat from implementing the Member States' programmes and priorities.

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ANATOLI ZLENKO (Ukraine) said the information provided by the Under- Secretary-General for Administration and Management clearly proved that the Organization's financial situation remained very critical and that the aggregate arrears on contributions of Member States continued to be extremely high. The practice of borrowing from the peace-keeping operation accounts continued. The financial problems were unresolved in spite of the outstanding attempts of the Assembly's high-level working group on the financial situation.

Ukraine was deeply convinced that the inability of some Member States to meet their financial obligations was a direct result of their overassessment, he said. The Organization must eliminate the existing irregularities in the scale of assessments in order to overcome the financial crisis. In that connection, it was important not to lose a golden opportunity to have a comprehensive package of measures required to resolve the financial crisis by adopting the parameters of a new scale at this session of the General Assembly.

Despite its economic and financial difficulties, his Government would honour its financial obligations. In a few days, it would contribute up to $20 million to the Organization. First steps would also be taken to make payments to the peace-keeping budgets. Next year, his country's real payments would be increased. The exact amounts would be announced in January 1997.

HENRIQUE VALLE (Brazil) said budgetary constraints in his country had prevented his Government from being prompt in payments of its assessments. However, Brazil was fully committed to the Organization. Fulfilling its obligations to the regular budget continued to be a high priority. This morning he had been authorized by his Government to inform the Committee and the Under-Secretary-General for Department of Administration and Management that Brazil would pay $10 million to the regular budget. He was satisfied that Brazil would continue to maintain its commitment to the United Nations.

JAN JAREMCZUK (Poland) asked the Under-Secretary-General to explain a difference of some $100 million he had found in relation to one of the charts the official had used in his presentation.

JANIE LETROT (France) asked for additional information regarding the projections for the end of the year. She asked why the surplus expected in the peace-keeping budgets would not be used to reimburse troop and equipment contributing States. She also asked whether the $115 million improvement in the cash flow for peace-keeping operations was due to the lack of reimbursements to Member States and called for explanations of the differences in the amounts outstanding.

TAMMAM SULAIMAN (Syria) said that his Government had decided on how to pay up its arrears to the peace-keeping budgets in accordance to a five-year

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payment plan, which was to have started in 1997. But, the Syrian Government had decided to pay the first instalment starting this year. The Government would send an explanatory note to the Secretariat to explain its decisions. The payment of the arrears did not cover the United Nations Disengagement Observer Force (UNDOF) or the United Nations Interim Force in Lebanon (UNIFIL), as the position of the Syrian Government on those Forces was well- known.

ERNST SUCHARIPA (Austria) expressed concern about the serious financial situation in spite of the efforts of the Secretary-General and the Secretariat to improve the cash situation. The clearest impression of the gravity of the situation was the indication that the $990 million owed to troop-contributing States was higher than the projected combined cash position for the end of the years. Such a picture should encourage others to pay up their dues.

PRAYONO ATIYANTO (Indonesia) said he had taken note that the briefing was the last for 1996. It was a reflection of all the consultative efforts made by Member States and the Secretariat during the year. The conclusion that there was no improvement in the Organization's financial situation and that there was continued borrowing from the peace-keeping budgets was of concern. That information would be communicated to his capital.

He welcomed Austria's observation regarding the concerns of troop- contributing States. That situation must receive serious attention from Member States and from the Secretariat. They must continue to try their best to improve the Organization's financial situation. He called on the major contributor to fulfil its obligation in full, on time and without condition. Special consideration should be given to developing countries which faced difficult economic situations.

DENISE ALMAO (New Zealand) said she was deeply disappointed that the cash flow situation had not improved. The Russian Federation, Ukraine and Brazil must be commended for honouring their commitments. Their efforts were laudable. Through their efforts, the Secretariat could make some amounts available to the troop-contributing States. The continued borrowing from the peace-keeping accounts was cause for concern. That situation was still very grave.

SYED RAFIQUL ALOM (Bangladesh) requested clarification on some of the charts presented by Mr. Connor. For chart 1 (unpaid assessments), he asked about the total amounts quoted. Also of interest were the Member States which were the major defaulters, in addition to the United States. For chart 8 (the amounts of the cash in the regular budget), he noted the improvement in the cash flow situation by about $3 million and asked what was the reason for the reverse cash flow at the end of 1996. With regard to chart 10 (the peace- keeping cash situation), he asked about the increase of $115 million cited. For chart 11 (peace-keeping payments), he asked whether there was any

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possibility that the outstanding payments to troop-contributing States could be increased since there had been an increase in the cash position of peace- keeping budgets.

SAM HANSON (Canada) said he regretted that the news was not better. He was pleased at the announcement of payments made today. All Member States were obligated to pay their contributions in full, on time and without conditions. Those Member States that had been pursuing increased efficiency, reform and "belt tightening" were obligated to set the example in payment of their assessments, he added.

PETER SOAL (South Africa) said he shared the disappointment that the situation had not improved significantly since last year despite the efforts of the Under-Secretary-General, the Secretariat and the high-level working group on the United Nations financial situation. Those in arrears should pay their dues as soon as they could. Further information as to who owed the largest amounts of money to the various peace-keeping budgets should be provided.

PATRICK KELLY (Ireland), speaking for the European Union, said that the situation had not improved significantly since the end of 1995. The Union was concerned that almost $1 billion would be owed by the end of the year to troop-contributing States, similar to the position last year. He thanked Member States that had announced plans to clear their arrears. Others should follow their examples and pay up their dues. Urgent action should be taken in the new year to resolve the current financial crisis.

NORMA GOICOCHEA ESTENOZ (Cuba) supported the views expressed by some previous speakers. Cuba was doing everything possible to reduce its debts to the United Nations and welcomed the announcements made by Ukraine, Syria and Brazil as well as the contributions the Russian Federation would make to the United Nations. Account should be taken of the special difficult situation of the developing countries. Their conditions should be differentiated from that of countries that were withholding assessments for political reasons. The scale of assessments should not be blamed for the financial crisis. She asked Mr. Connor to explain how the crisis would hamper the current reform efforts in the United Nations.

NICHOLAS K THORNE (United Kingdom) joined others in expressing regret that the early optimism shown regarding the clash flow situation by the end of the year had not been fulfilled. That would again lead the Organization into borrowing from peace-keeping budgets to maintain its regular budget activities, at the expense of troop-contributing States. He would like to receive more information on the reassessment of the payments for contingent- owned equipment for UNPROFOR. There should be information in percentages as to which nations were the major debtors to the peace-keeping accounts.

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CHEN YUE (China) expressed concern over the lack of improvement on the financial situation of the Organization. She welcomed the efforts of the Russian Federation, Ukraine, Brazil and Syria to reduce their arrears. China was one of the 97 countries that had paid up their regular budget dues on time and in full. It had paid its dues at the beginning of the year. But in the second half of the year, it had not been able to pay some of its peace-keeping dues on time. It expected to pay the $5 million that was outstanding as its peace-keeping assessments. All Member States should pay up their dues on time, in full and without conditions.

ULDIS BLUKIS (Latvia) said "each chart is worth many words" in relation to the charts used by the Under-Secretary-General to illustrate his presentation. He expressed support for Ukraine's view on the issue of the scale of assessments. He asked whether the Under-Secretary-General could make forecasts for 1997 in addition to those for 1996.

MR. CONNOR said he was pleased that Ukraine would pay $20 million which had been included in the forecasts. The $10 million Brazil intended to pay was not included in the forecasts. As for the $358 million deficit in the regular budget as of 30 November, he said, "I wish that was a mistake, but it is not. Unfortunately, it is not an error". The amount of the deficit had forced the Secretariat to borrow from the peace-keeping budgets. While there was a slight improvement in the combined cash position, the debts owed by the United Nations were growing also. The Organization had to hold the cash balances to pay its bills and tolerate an increased level of United Nations debt, mainly to Member States. The shortfall in the Russian Federation's generous contributions had made the Secretariat reduce what it paid to troop- contributing States. The increase in debts to Member States had grown to $990 million, mainly due to the reassessment of the amounts due for contingent-owned equipment used in UNPROFOR.

He said that the bulk of the receipts that had been expected for December was $300 million of which $200 million had been received. The shortfall had been caused by the reductions of payments by the United States and four other countries. The seemingly improved fiscal picture was partly due to the fact that the Secretariat was slowing down the payment of its bills: that was not an improvement. The percentage of what was owed to the peace-keeping budget could be deduced by referring to the monthly reports on the status of contributions. The United States portion of the debts to peace- keeping was about 53.5 to 54 per cent. Russia accounted for about 15.5 per cent.

The current financial crisis diverted the attention of the Secretariat, he said. The United Nations lost interest discounts and spent more time on how to cope with the situation rather than doing something more creative. An example of the diversions was that the Secretariat, having signed separation contracts with staff last year, had to delay implementation of those

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separations until January or February, when it could find the cash to pay off the staff involved. Two or three months of extra service after signing the separation contracts was not helpful.

MS. GOICOCHEA ESTENOZ (Cuba) said regarding her specific question on chart 15 (impact on the financial situation), the answer given could have been more illustrative. The voluntary separation of staff could not be considered a reform measure. To perceive it as such reflected a difference in approach. The Secretariat should issue the information on the Organization's financial situation as an official document or as addenda.

Turning to agenda item 116 (the 1996-1997 programme budget), she asked a number of procedural questions regarding the timing for posing follow-up questions to Mr. Connor on the Efficiency Board. Her questions would relate to the responses already provided to the Committee by Mr. Connor in writing on Friday in response to matters raised by delegations earlier in the session. The exchange on those issues should be done in a formal meeting. She asked if she could proceed during the meeting or whether Mr. Connor would return to the Committee on another day before the end of the current regular session.

NGONI FRANCIS SENGWE (Zimbabwe) noted that the Committee did not have any other time. It had deadlines to meet.

MR. CONNOR, Under-Secretary-General for Administration and Management, agreed to respond to the questions during the meeting. He said the information presented this morning would be included in a formal paper as an addendum. On the Efficiency Board, he said although he had not received the questions in advance, he would respond to the queries of the representative of Cuba now.

MS. GOICOCHEA ESTENOZ (Cuba) asked a number of follow-up questions on the written replies given by Mr. Connor on the Efficiency Board. She asked for more information on the following: the composition of the secretariat of the Efficiency Board; what was planned for the Board's future work; how much time was envisaged for the continuation of the Board's work; and what were the guidelines for the future work.

She asked further, what was the nationality of two members of the Board; what were the dates for the beginning of the contracts of some staff hired to work with the Board; what were the professional backgrounds of Board members, other staff and interns employed to assist the Board's work; had the 13 per cent support costs been paid for staff on loan and by which Governments; who had contributed to the amount of $27,000 that had been made available for the Board's work; what travel had been undertaken in connection with the Board's work and which countries had been visited; and how had the Board integrated its travel experience with its recommendations.

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In addition, the representative asked Mr. Connor what were the Board's objectives in terms of its projects; was the emphasis on savings or on programme implementation; how did the Secretariat see the connection between the Board's proposals and the Assembly's work; and what progress, if any, had been made on the inclusion of the results of the Efficiency Board in the next biennium's budget. She stressed the importance of receiving more information on the issues raised to ensure transparency on the matter and to ensure progress in a number of agenda items before the Fifth Committee.

MR. CONNOR, Under-Secretary-General for Administration and Management, said he regretted that the 16 pages of answers he had submitted were not sufficient. Responding to the questions posed by the Cuban representative, he said the Efficiency Board consisted of seven persons, four of whom were Under- Secretaries-General, and also included a retired ambassador and two working ambassadors. The Board's work had been supported by nationals from a number of countries which he had listed.

The term "secretariat" could not be used to refer to the support personnel, he continued. The professional background of the participants on the Board had been supplied. The Under-Secretaries-General all had experience in management; several of them had professional experience in development work while another also had a background in management as well as political and peace-keeping affairs. The guidelines for the Board were very general and included that it should make efforts to improve the Organization's efficiency and effectiveness in areas such as cost and output.

He said he did not have the exact dates on which the contracts of various persons had been signed. Some had already left. The issue of the choice of the Executive Director had been answered in the paper he had circulated. Her Government had been the first to respond to the Secretariat's request for assistance, but there had been a steady stream of experts in the field of management who had come from countries which had already pursued such efficiency programmes. Three such persons, from Australia, New Zealand and South Korea had already left or would be leaving soon. A deputy minister from Singapore had also assisted in the Board's work as well as a staff member from the United Kingdom's cabinet office. A Colombian national was currently on board.

There would be need for more help for the second phase of the Board's work in areas such as cost-cutting of travel and other activities, he said. The travel to the United Kingdom to study that Government's efficiency exercise and travel to the World Bank and to Ottawa had been made by United Nations staff members. No other trips were scheduled for the moment. Regarding the 13 per cent support costs charged on the services contributed by Governments, he said that would be taken from the monies that those countries had contributed.

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He referred to the amount of $27,000 that had been earmarked so far and said the trust fund for the Efficiency Board had been adequate to pay the 13 per cent support costs. Voluntary contributions had been received in response to requests to Member States from the Secretariat. The field work for the second phase of the Board's work should be completed by the end of this month. It was expected that the Board's second report would be presented to the Secretary-General by the end of February. The Secretary-General was expected to participate in a discussion on the areas the Board would have reviewed.

MS. GOICOCHEA ESTENOZ (Cuba) asked the Secretary of the Fifth Committee to provide delegations with the replies that had been given by the Secretariat to the questions that had been asked on previous occasions. Only four of the 16 pages of the Secretariat's reply to previous questions from Member States had been related to the Efficiency Board. Yes, replies had been given to Member States, but they had not been precise. Her questions had not been answered before and they had not been answered today, either. The issues she had raised should be taken up under the agenda item on the 1996-1997 regular budget. The Secretariat's replies should be circulated to familiarize delegations with them. She would send her additional questions in writing to Mr. Connor and other delegations.

Financing of Tribunals for Former Yugoslavia and Rwanda

The Acting Chairman of the Committee, SYED RAFIQUL ALOM (Bangladesh), said that since no Member States had indicated an intention to make statements on the International Tribunals, the agenda items on them would be concluded and referred for informal consultations.

SAM HANSON (Canada) said, as coordinator of the impending informal consultations on the Rwanda Tribunal, that a draft resolution was being circulated in the conference room. It envisioned the appropriation of what the Secretary-General had asked for. Since some delegations had already expressed different views on the amount to be appropriated, others should direct their attention to that matter and be prepared to address it in the informal meetings.

VIJAY GOKHALE (India) called attention to paragraph 16 of the report of the ACABQ on the Tribunals. [Note: In that paragraph, the ACABQ had stated that both Tribunals were using loaned personnel, with donors being charged 13 per cent support costs in respect of those personnel. In a previous report, the ACABQ had asked for the 13 per cent charge to be addressed by the Assembly.] As to the 13 per cent charged to donors of the gratis officers, India's representative said that until a decision was taken on the issue of gratis personnel, there should be no change in the Tribunals' charging of 13 per cent support costs.

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WILLIAM GRANT (United States) said he had some concerns regarding some aspects of both war crimes Tribunals, pending Assembly action on the revised estimates that would be submitted in the light of related recommendations of the Office of Internal Oversight Services. He would raise questions in the informal consultations on those issues. The matter raised by the representative of India was of concern to his country, since the United States was one of the donors of gratis personnel to the Tribunals. Further decisions should not be taken on the issue until it had been studied.

YUKIO TAKASU, United Nations Controller, said that the Secretary-General had applied uniform policies before accepting the gratis officers provided to the Tribunals. The policies required that voluntary contributions to the United Nations should not have led to costs for the United Nations. As a result, the support costs were charged in relation to the officers. The timing indicated by the ACABQ as to when the Oversight report and the revised budgets would be available was somewhat unrealistic. The Secretariat wanted the Secretary-General to be authorized to maintain the Tribunals and to be given the funds to pay for some expenses that could not wait until the revised estimates, which would reflect the views of the Oversight Office, were ready. The costs that had to be accommodated included the rental of premises and the expansion of courts.

Statements on Financing of UNSMIH

MR. TAKASU re-introduced the Secretary-General's report on the financing of UNSMIH as he had done at an earlier meeting. At the beginning of November, he said the Assembly had taken only partial action to fund UNSMIH when it assessed some $28.7 million gross, pending action by the Security Council on the mission. Since then, the Council had extended the mission with a reduced force strength, leading to cost savings of over $1 million. The Assembly should authorize $27.4 million for the mission and assess it at a monthly rate of $4.6 million gross.

MARTA PENA (Mexico) said, as coordinator of the informal consultations on the matter, that a draft decision was available in the room. If there were no problems with it, it should be approved subsequently. Delegations that had difficulties with the text should talk to her in the next 24 hours to enable quick action on it.

MR. GRANT (United States) proposed an amendment to the draft text. It read: "request the Secretary-General to take all necessary actions to address Office of Internal Oversight Services, Board of Auditors and ACABQ recommendations and findings with respect to UNMIH and UNSMIH". He explained that his delegation had asked some questions on the problems cited in the reports of those bodies and about the corrective actions being taken by the Secretary-General. Even though most of the findings related to UNMIH, they would be relevant to UNSMIH because they related to systemic matters such as

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procurement. The Secretary-General should address the comments of those audit and oversight bodies.

Statements on Financing of Former Yugoslavia Missions

MR. TAKASU introduced the report of the Secretary-General reviewing some of its contents and recommendations on the liquidation of some of the missions.

The agenda item was referred to "informal informal" consultations.

LUCIEN SCOTTI (France) asked whether the item would be taken up in "informal informal" consultations before being discussed later in informal meetings of the Committee.

The Acting Chairman, MR. ALOM (Bangladesh), said that the Committee would first hold "informal informal" consultations and later proceed to informal meetings on the question.

MR. GRANT (United States) said he would present a proposal on those missions containing almost the same language he had suggested on UNSMIH. He would submit the proposals in writing to the coordinator of the Committee's informal consultations.

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