$65 MILLION TO BE PAID SOON TO STATES CONTRIBUTING PEACEKEEPING TROOPS AND EQUIPMENT, FIFTH COMMITTEE IS TOLD

3 October 1997

Press Release
GA/AB/3165

$65 MILLION TO BE PAID SOON TO STATES CONTRIBUTING PEACEKEEPING TROOPS AND EQUIPMENT, FIFTH COMMITTEE IS TOLD

19971003 Committee Apprised of UN Financial Situation; Discusses Human Resources Management

The United Nations expected to pay Member States $65 million for peacekeeping troops and equipment in the next few weeks and such reimbursements would reach $270 million by the end of 1997, Under-Secretary- General for Management, Joseph E. Connor, told the Fifth Committee (Administrative and Budgetary) this morning in a speech on the state of United Nations finances.

Since no State would pay significant peacekeeping arrears, he said the Organization would not make special year-end payments for troops and equipment, leaving it with a year-end $907-million debt for such contributions, up from $838 million at the end of 1996.

As the United Nations would face New Year's day 1998 with a $272-million regular budget deficit, it would have to dip into the expected $670-million peacekeeping cash balance to fund regular budget work, he added.

Providing details on how the Organization was doing, he said that, as of 30 September, unpaid dues totalled $2.417 billion for the regular budget, peacekeeping and International Tribunals. The major contributor accounted for 60 per cent of that while the next 14 principal contributors accounted for 28 per cent.

After his speech, Committee members expressed frustration over the Organization's continued financial crisis. While some blamed a flawed scale of assessments, a majority cited lack of payments.

For example, the representative of Belarus blamed the situation partly on an unjust scale of assessments for sharing out United Nations expenses, while the representative of Ecuador said the obvious solution was the complete payment of dues.

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Many countries expressed support for what some termed the "slogan" of "making payments in full, on time and without conditions". The Philippines' representative referred to the need for incentives and disincentives related to the payment of dues.

Latvia's representative said the crisis was caused by a variety of complex reasons such as dramatic fluctuation in the number and size of peacekeeping missions. Referring to the slogan calling on all to pay their dues on time, he said only half a dozen countries had done so as of 30 September.

Speaking under human resources management, India's representative presented an analysis on the Secretary-General's implementation of paragraph 26 of General Assembly resolution 51/226 of 3 April and expressed concern that it affected staff from developing countries disproportionately. [By paragraph 26, the Assembly, among others, decides that persons on short-term appointments filling regular budget posts or extrabudgetary ones of at least one year cannot apply for or be appointed to their current post within six months of the end of their current service.]

Arguing that the resolution's paragraph 27 could permit the circumvention of United Nations recruitment rules, she asked the Secretariat to explain how it intended to prevent such a development. [Paragraph 27 asks the Secretary-General to ensure that those who have served for at least 12 months in peacekeeping or other field missions become eligible for consideration for internal vacancies.]

Many delegates expressed support for India's analysis, asked for swift and written responses to its queries, and expressed concern about the unfair treatment of staff from developing countries.

Thanking the Indian delegation for its analysis, the representative of Canada said the resolution should not become a bone of contention between developing and developed States.

Statements on the Organization's financial situation and on human resources management were also made by the representatives of Mexico, Cuba, France, Egypt, Pakistan, United Republic of Tanzania, Brazil, Syria, Belgium (on behalf of the European Union), Uruguay, Thailand, Côte d'Ivoire, Japan, Indonesia, Portugal and Bolivia.

Delegates from Australia, New Zealand, Nicaragua, Ukraine, Paraguay, United States, Algeria, Ghana, Syria, China, Panama, Saudi Arabia and Costa Rica also spoke.

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The Officer-in-Charge of the Office of Human Resources Management, Ingrid Laux, and Fifth Committee Secretary Joseph Acakpo-Satchivi briefed the Committee.

The Committee is due to meet again at 3 p.m., on Monday, 6 October, to take up administrative and budgetary aspects of peacekeeping financing, during which it would discuss third-party liabilities, procedures for determining reimbursements for contingent-owned equipment and how to pay casualty benefits.

Fifth Committee Work Programme

The Fifth Committee met this morning to hear a statement on United Nations finances from Under-Secretary-General for Management Joseph E. Connor. The Committee was also expected to begin consideration of human resources management, specifically the implementation of a General Assembly resolution adopted earlier this year concerning recruitment.

Human Resources Management

The Committee has before it a letter to the Secretary-General from the Permanent Representative of the United Republic of Tanzania, on behalf of the "Group of 77" developing countries and China (document A/51/955). Dated 28 July, the letter pertains to the implementation of paragraph 26 of section III B, on recruitment, of Assembly resolution 51/226. [In paragraph 26, the Assembly, among others, decides that persons filling regular budget or extrabudgetary posts on short-term appointments of at least one year cannot apply for or be appointed to their current post within six months of the end of their current service.]

The letter states that the Group of 77 and China endorsed the understanding that the 3 April resolution would not be implemented in a retroactive manner. It was officially recognized in the Fifth Committee that staff holding short-term appointments before 3 April were not subject to the provisions of paragraph 26. In the view of the Group, the understanding applies without exception to all Secretariat staff.

The Group is concerned about information indicating that the Under-Secretary-General for Administration and Management issued instructions to various departments regarding the application of paragraph 26, which do not take into account the Fifth Committee's understanding on the matter, the letter continues. It has also learned that staff holding short-term and/or fixed-term appointments have been asked to leave the Organization by the end of July, ostensibly in pursuance of paragraph 26. It requested an explanation as to how the Secretariat interpreted the use of the term "short-term appointments ... of one year or more" as stated in the resolution, to encompass "fixed-term appointments of less than one year".

The Group also asks for information on the mode of application of paragraph 26; number and nationality of staff on short-term appointments before 3 April 1997; number and nationality of staff asked to leave the Organization in implementing the resolution; number and nationality of staff on short-term appointments recruited after the adoption of the resolution; and number and nationality of staff exempted from the application of paragraph 26, the reasons for such exemptions and the name of the department where he/she works.

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Also before the Committee is the Secretary-General's response (document A/C.5/51/58) to the above letter. In light of established practice and in response to delegates' concerns, he explains in his 11 September letter, the expression "short-term appointments" is understood to refer to staff hired for less than one year without a vacancy announcement and reference to the Appointment and Promotion Board machinery.

After advice from the United Nations Legal Counsel, he continues, he informed the Assembly of his intention to exempt staff serving on peace-keeping support account posts and International Criminal Tribunal posts as of 3 April from application of the provisions in paragraph 26. The Legal Counsel later advised that, according to staff regulation 12.1 and the United Nations Administrative Tribunal's jurisprudence on acquired rights, a limited exception to paragraph 26 should be made for staff on appointments of less than a year who had served against any type of post when, as of 3 April, the recruitment process had reached a stage of commitment or had so advanced as to create for those persons an acquired right to the completion of the process.

The Secretary-General says that several staff members on appointments of less than a year who were not exempted from application of paragraph 26 were separated at the end of their appointment, as required by paragraph 9 of the same section of the resolution. [By paragraph 9, the Assembly requests the Secretary-General to restrict temporary appointments against regular budget posts or extrabudgetary ones of one year or more to temporary needs.]

A table annexed to the Secretary-General's letter provides information by country, sought by the Group of 77. Overall, 163 staff were on short-term appointments of less than one year under the 100 series of Staff Rules before 3 April; 12 of them have been asked to leave the Organization in implementing the resolution; 16 were recruited after the resolution's adoption; and 27 were exempted from the application of paragraph 26.

Statements on Financial Situation

JOSEPH E. CONNOR, Under-Secretary-General for Management, told the Committee that, since his last address some months ago, Secretary-General Kofi Annan had unveiled his reform plan and the Vice-Chairman of Time-Warner, Ted Turner, had pledged $1 billion over 10 years to United Nations humanitarian work. But, neither development could alleviate the Organization's financial situation caused by late and non-payment of dues. At the end of September, unpaid dues totalled $2.417 billion for the regular budget, peacekeeping and the International Tribunals. The major contributor accounted for 60 per cent of that, while the next 14 principal contributors accounted for 28 per cent, with most of the amount owed by two States. In monetary terms, unpaid regular budget dues were $649 million at 30 September, $382 million for 1997 and $267 million for prior years. The largest contributor owed 77 per cent of those arrears, two Member States among the next 14 principal contributors owed

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9 per cent, while all other debtors owed 14 per cent. Continuing high levels of unpaid dues were undermining the Organization's financial stability and liquidity.

Turning to his expectations for the regular budget, Under-Secretary- General Connor said the United Nations had so far received $972 million in dues, comprising dues for 1997 and prior years. Of the total, $803 million was paid by the 15 largest contributors, with $169 million by others. Further, as of 30 September, the United Nations had collected amounts equivalent to 88 per cent of 1997 dues. As for the rest of the year, he expected to collect $1.15 billion compared to $1.2 billion in 1996. The 1997 estimate of cash collection was $50 million less than earlier forecast, while expenditures were $20 million more than previously estimated. Accordingly, the United Nations cash balances at the end of 1997 would be $70 million less than an earlier forecast. The Organization would end the year with a $272- million deficit after beginning it with one of $197 million. The negative cash position at the end of 1997 would persist for five months in 1998.

Regarding peacekeeping cash, Mr. Connor said the balances in those accounts totalled $745 million at the end of September. Beginning 1997 with $874 million in peacekeeping accounts, the Organization would end the year with a $670-million balance. At their peak in April 1997, such balances stood at $999 million.

He said the United Nations had paid $155 million for troops and equipment in the last few months and would disburse another $65 million in the next few weeks. Total reimbursements for 1997 would reach $270 million. Since no State had expressed its intention to pay a significant amount of arrears, no special year-end payments for troops and equipment was expected. The year would end with $907 million owed to troop and equipment contributors, up from $838 million at the end of 1996.

For 1998, he forecast a level of activity lower than 1997's, hovering at about $1 billion, with requirements for troops and equipment ranging from $220 million to $250 million. With reimbursements only of similar amounts expected in 1998, no significant reduction in debts owed troop and equipment contributors was foreseen by that year's end. That forecast did not include a Member State's plan to pay a substantial amount, but at an uncertain date due to the necessity of legislation.

The combined cash amounts in the regular and peacekeeping budgets would be $398 million by 31 December, about half the amount in 1995, he said. Again, the Organization would have to borrow from peacekeeping accounts to finance the regular budget.

ALYAKSANDR SYCHOU (Belarus) said that excessive expansion of United Nations activities over the last decade, combined with unjust apportionment practices, were the main causes of the Organization's incessant financial

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crises. On the Secretary-General's reform proposals, he supported the recommendations to reduce administrative expenses by one third. However, he had doubts about establishing a revolving credit fund through voluntary contributions and other suggested means of financing. His concern stemmed from the fact that such a fund presupposed the introduction of a system of fines and incentives during its utilization. Such a practice could result in Member States paying their contributions more than once.

The only real way to emerge from the present crisis was for apportionment to be based on the principle of solvency of States, he said. The Organization's present system of financing was not sufficient to settle the problems it faced. He hoped the Assembly would adopt a new scale of assessments.

Despite his country's economic difficulties, it had transferred $0.5 million to the Organization's regular budget during the first half of 1997, he continued. His Government was also considering paying off its arrears in the amount of $5 million by the end of the year. His country's arrears were not only due to financial difficulties during its transition period, but also to an unjust apportionment system. Measures were needed to settle the arrears of countries like his.

Belarus was ready to cooperate in the endeavour to derive a new scale of assessments to apportion the Organization's expenses, he said. Such a new scale should solve the problems of those countries which suffered from discrepancy between their rates of assessment and their real solvency.

MARTA PEÑA (Mexico) expressed regret regarding the fact that it was not possible for the United Nations to pay what it owed some Member States. While the Secretariat was not responsible for that development, she had to place those regrets on record. The financial situations had no link with the scale of assessments, but were due to the lack of payment by Member States of their contractual contributions derived by their membership, in accordance with the Charter.

Given some statements about the need for some arrangements that must be entered into before the arrears of some States were paid, she said, the only arrangements acceptable to her delegation would be the actual payment of those arrears. Only the payment of the arrears owed by those States would resolve the financial situation of the Organization.

DULCE MARIA BUERGO RODRIGUEZ (Cuba) noted the Organization's deficit with concern and said it appeared the situation would remain critical for next year. The Organization's financial condition could impact negatively on the fulfillment of its mandates. All payments must be made fully and without conditions to ensure fulfillment of United Nations priority programmes.

Her country had just contributed about $1.2 million to the Organization, she said, despite its difficult economic situation, which was compounded by

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the imposition of an unjust trade blockade. It had required enormous effort to make that contribution. Her country was committed to the Organization and would make every effort to meet its own responsibilities.

The Organization's current financial situation was in no way related to the scale of assessments, she continued. She hoped that the negotiations on the development of the scale would take that interpretation into account.

SAMUEL HANSON (Canada) said that among the Organization's rules was the provision that Member States must discharge their obligations to the Organization. Apportionment was the responsibility of the Assembly; when that had been decided, Member States were bound to pay their apportionments. Canada had no arrearages, and he wished that more countries were in that position.

MARY JO ARAGON (Philippines) said according to the presentation, the financial crisis of the United Nations had not improved. Mandated activities might be adversely affected by that fact. The high-level open-ended working group to consider improving the Organization's financial situation had been, after three years of discussion, unable to recommend concrete actions.

The Secretary-General's proposed credit fund might grant the Organization temporary relief, but how would it enable Member States to pay their dues? she asked. The scale was not the problem. The solution to the current crisis was for Member States to honour their obligations in full, on time, and without conditions. It was time for the Assembly to consider incentive and disincentive measures. JANIE LETROT (France) asked Under-Secretary-General Connor to explain whether the Organization would pay Member States reimbursements due for 1997 obligations and not for earlier years. He should also clarify other information that he had submitted to the Committee.

AMR NOUR (Egypt) expressed regret that the United Nations finances had not improved significantly because some Member States, such as the largest contributor, had not paid their arrears to the Organization. Egypt was proud to be one of the select few States that had paid up their dues as of last Tuesday, 30 September. The Under-Secretary-General should clarify how reimbursements due Member States would be made.

Mr. CONNOR said the Secretariat always paid the oldest bills first and would continue to do so. This year, it would pay an amount that was about equal to the obligations of 1997. The Secretariat would pay for the oldest debts first, Mission by Mission, as always. Further debts related to contingent-owned equipment, troop costs and death and disability payments.

AMJAD HUSSAIN B. SIAL (Pakistan) said he was satisfied with the Secretary-General's intention to make payments that would at least match 1997 obligations.

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MUHAMMAD YUSSUF (United Republic of Tanzania) said the situation of United Nations finances was grave and should not be allowed to continue unchecked. "Something must be done", he said, and asked for information regarding troop contributors.

HENRIQUE R. VALLE (Brazil) said that in addition to the payment of $2 million last month for regular budget dues, his country would be paying $10.4 million to the Organization. Those contributions would be a significant step towards Brazil's liquidation of its regular and peacekeeping dues. Further efforts were also anticipated.

TAMMAM SULAIMAN (Syria) expressed his concern that the Organization's crisis had not been solved. All countries should pay their dues. His Government had made the second payment of its arrears and hoped that in the coming years all its arrears would be liquidated. It was noteworthy that most of the developing countries had paid their dues and arrears. How could that be reconciled with the non-payment by super-Powers?

There was no relation between reform proposals and the current financial crisis, he said. The Organization's financial health depended on all countries paying their arrears. Reform measures should not be an alternative to the payment of arrears.

PETER MADDENS (Belgium), speaking for the European Union, said he regretted the continued deterioration of the Organization's financial situation. Collectively, the Union was one of the biggest financial, troop- and equipment-contributing parties. He thanked Mr. Connor for his presentation on amounts due for troops, as well as on other debt-related matters.

BERNARDO GREIVER (Uruguay) said with plans to make reimbursements equal to $270 million, he sought information about the prospects for the United Nations paying down all of its debt to Member States, which was more than $1 billion.

ANUSON CHINVANNO (Thailand) said Member States' failure to pay their dues frustrated United Nations reforms and were the root cause of some of the inefficiencies in the Organization. All Member States should pay their dues in full, on time and without strings attached. Thailand was among the 28 States that had paid up their regular budget dues on time. Despite its currency crisis it was also paying up its peacekeeping dues. While some Member States could not pay their dues for circumstances beyond their control, he did not feel that the current financial crisis was caused by the scale of assessments. Changing it would not improve the cash flow, if Member States did not assume their responsibilities.

The new scale of assessments to be determined by the Assembly this year should be based on agreed components and on the principle of capacity to pay and other fair objectives.

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MANLAN AHOUNOU (Côte d'Ivoire) asked whether steps had been taken regarding debtor countries and what such steps had led to. The efforts of small countries to pay up their dues should be better appreciated by the Secretariat. He asked whether Ted Turner's donations would be directed at specific programmes or used to pay some debt.

KAZUO WATANABE (Japan) said all Member States must meet their obligations, including paying their financial contributions in full, on time and without conditions. The Organization's current crisis had nothing to do with its scale of assessments. It was, instead, linked to the fact that certain Member States had not to date paid their contributions. He fully agreed with those who had expressed concern about the future of the Organization. Dialogue should continue in the current session.

PRAYONO ATIYANTO (Indonesia) said he shared the concern of many of his colleagues about the Organization's financial crisis. The crisis amounted to a crisis of payment by Member States. He fully shared views expressed by earlier speakers that it was imperative for contributors -- including the largest contributor -- to fulfil their financial obligations in full, on time and without conditions. Special consideration should be given to the situation of developing countries. His country would always try its best to fulfil its obligations despite the difficulties it faced.

FABIAN PALIZ (Ecuador) said that like a number of speakers, he viewed the current payment crisis with grave concern. The only and obvious solution was the complete payment of dues. The present crisis was in no way related to the scale of assessments.

REGINA EMERSON (Portugal) said she went along with "the slogan" that Member States must pay in full, on time and without conditions. Troop contributors must be reimbursed.

Some delegations had said the current crisis was not connected with the scale of assessments, she said. In some instances, the two were not connected. While some Member States had chosen not to pay their dues for political reasons, others had been unable to pay because the methodology used in the scale had not allowed rapid adjustment to reflect changes in economic conditions. How could it be explained that 96 Member States had not paid their contributions as of 30 September? she asked. If the scale was an accurate measure, why had they not paid? If political reasons were the cause, that too merited careful consideration.

MARTHA V. MONTANO-DURAN (Bolivia) expressed regret over the non-payment of assessed contributions by Member States. For its part, Bolivia had paid its dues for 1997, in clear support of the United Nations work.

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ULDIS BLUKIS (Latvia) asked the Under-Secretary-General to make further clarifications on the amounts that would be reimbursed for contingent-owned equipment and troop costs. It would not be helpful to blame the financial crisis on a single cause, as it was due to a variety of complex reasons. One of them was the rapid growth and then rapid drop in the number and size of United Nations peacekeeping operations. As to the sloganeering call on all Member States to pay their dues on time, he said that only half-a-dozen countries had done so as of 30 September. Similarly, many countries had still not paid their assessments in full. Despite repeated calls that payments not be tied to conditions, few States actually abided by that; they seemed to call for some sort of conditions, from time to time.

Lieutenant Commander TIMOTHY MAHER (Australia) said that since his country usually paid its dues on time, the Under-Secretary-General should explain why it was not included among those who had done so.

WEN CHIN POWLES (New Zealand) said she greeted the statement by the Under-Secretary-General with despair. True partnership between the Member States and the Secretariat was vital. For that to develop, States should meet their obligations. States owing money to the Organization should make greater efforts to pay up their dues.

MANUEL MONTERREY (Nicaragua) reiterated the point made by earlier speakers that underdeveloped countries were trying to honour their obligations. The scale of assessments had nothing to do with the financial crisis faced by the United Nations.

IHOR V. HUMENNY (Ukraine) said his country was doing its utmost to pay its arrears to the Organization. In September, his country had contributed substantially to reduce its arrears, as indicated in Mr. Connor's materials currently before the Committee.

The Organization's financial crisis was connected with deeper problems, he said. The current Assembly session could perhaps resolve some of them. Organizational reform and a new scale of assessments might be implemented. Delegations must make every effort to reach consensus on the scale and the revised budget.

GENARO VICENTE PAPPALARDO (Paraguay) said his country had on 17 September made its payment to the regular budget for 1997.

Mr. CONNOR said that Member States were reminded of their obligations through a variety of means, including notes, telephone calls and formal written requests. In late October and early November 1996, a limited number of Member States were formally advised that they were approaching the level of arrearage that would result in sanctions under Article 19 of the Charter. While the Secretariat should not serve as a "bill collecting agency", it did

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endeavour to notify Member States of their obligations.

The amount contributed by Mr. Turner would not offset assessed contributions, he said. In response to a delegation's questions, he said that occasionally a bank did add charges to remittances, but that the Secretariat ignored such charges in determining who had paid. The Secretariat was committed to a $270 million pay-out in 1997 to troop and equipment contributors. He added that Australia was extremely prompt in making its payments; it was only the most recent peacekeeping assessments which had not yet been paid in full.

Statements on Human Resources Management

SAVITRI KUNADI (India) said that the Secretary-General's letter of 11 September had stated that "several staff members on appointments of less than one year who were not exempted ... were separated at the end of their appointment...". It had been noted that there had been 163 staff as of 3 April. About 27 of those had been exempted from the effects of paragraph 26, with another 12 separated, thereby leaving a total of 124 staff members.

About 67 per cent of the staff asked to leave were from developing countries, she said. She asked whether the contracts of the 124 staff members were valid on 8 September or whether they were among those who were not in support accounts posts, including those for the International Tribunals. Would the Secretary-General separate those 124 staff members once their current contracts expired? she asked. Did he intend not to regularize the balance of staff members who were mainly from developing countries, which represented 76 per cent of the affected nationalities?

In his letter of 3 May to the Assembly President, she said, the Secretary-General had sought to apply the provisions of paragraph 26 prospectively. The reason was that staff who had been recruited against support accounts posts had been recruited according to the rules, given the fact that those posts prior to the adoption of resolution 50/221 of 7 June 1996 were available only for less than one year. Those staff members had been strictly speaking, not the so-called "back-door" recruits. To that, the Assembly had confirmed that resolution 51/226 of 3 April should be applied prospectively. The clear intention of the Assembly was that staff affected by paragraph 26, who were hired for less than one year on 3 April, should be given a fair chance to apply for their posts and considered for regular appointments, including by invoking paragraph 27 of the text. [Paragraph 27, among other things, asks the Secretary-General to ensure that those who have served for at least 12 months in peacekeeping or other field missions become eligible for consideration for internal Secretariat vacancies.] The Secretariat should explain whether the 124 staff had been precluded from such consideration and, if so, the basis for doing so.

Further, resolution 51/226 had emphasized that, henceforth, the

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Organization should hire staff only according to the recruitment rules. However, it seemed that the term "persons serving in peacekeeping..." in

paragraph 27 was being interpreted by the Office of Human Resources Management (OHRM) as those who had served continuously in missions for 12 months or more. It did not apply to those serving in peacekeeping appointments at Headquarters, thereby discriminating on the basis of the location of a post. If the provisions of that paragraph were to be applied in future, the Secretariat should say how many staff were serving in peacekeeping and other field missions as of 3 April, including their nationalities. It should also state how many staff had been initially hired for Headquarters' assignments and then transferred to missions. Such information would help explain whether the discrimination based on the location of the post was justified. The views of the Legal Counsel should be sought. Paragraph 27 seemed to permit the recruitment of staff through initial mission appointments into Secretariat posts as internal candidates, circumventing established recruitment rules. The Secretariat should state how such circumvention would be prevented.

LINDA SHENWICK (United States) said she had a few questions regarding the Secretary-General's response. The original letter from the Group of 77 had described only those individuals who were regularly recruited. The Secretary-General's letter omitted that provision, but she would assume that was simply an editorial revision. Not all individuals occupying the posts in question had been regularly recruited. In several instances, employees had worked continuously for 12 months. Other employees had been transferred to consultancy status without a break in service.

A person was either a staff member or consultant, she said. The same position should not be filled by the same person at different times under different categories. Further anomalies had probably also been brought to the Legal Adviser's attention. If so, she trusted that additional information would be forthcoming. The Secretary-General's letter should only apply to regularly recruited employees.

Whether employees requested changes in contracts to avoid a break in service or management had proposed such offers, was irrelevant, she said. The benefit of not having to take a break in service had not been applied to all employees. Regarding the Secretary-General's statement in his letter that exemptions were granted to several individuals owing to a shortage of candidates, she asked the legal basis for granting those exemptions.

The matter at hand was not an issue of developed versus developing countries, she said. It was, rather, a matter of ensuring fairness in recruitment policies. Non-financial incentives should be developed further to attract people to work at hardship locations in the field. For example, those who had worked in field missions for 12 months could apply for candidature. She hoped other non-financial inducements would be developed.

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DJAMEL MOKTEFI (Algeria) reiterated his delegation's concern regarding the Secretariat's interpretation of how to implement resolution 51/226. The Legal Counsel had called for exemptions for some staff who had been hired for

less than one year. Consequently, he had asked for necessary exemptions to be granted and their acquired rights given them to enable the Organization to avoid paying money due to adjudications by the United Nations Administrative Tribunal.

After reading the Secretary-General's response, he said he wanted more clarification on the selective application of resolution 51/226, which mostly affected those from developing countries.

Ms. BUERGO RODRIGUEZ (Cuba) associated her delegation with the statement by India and its statistics. She regretted the Secretariat's interpretation in the implementation of paragraph 26 of resolution 51/226. The purpose indicated by the Secretary-General in granting exemptions to staff in support account posts and those with the International Tribunals deviated from the Committee's purpose in approving that paragraph. The Secretariat should explain its actions. The advice of the Office of Legal Affairs on how to implement the resolution should be sought and the criteria used to provide exemptions explained. Of the 27 exemptions granted, only six were for staff from developing countries, implying that the provisions had been applied in a discriminatory manner.

The Secretary-General's justifications for the exemptions were not satisfactory, she said. The functions of the exempted support account staff found in the Office of Conference and Support Services should be explained. The dates by which affected staff members were asked to leave the Organization should be revealed. Of the 12 staff asked to leave the Organization, seven were from developing countries, which was discriminatory and regrettable. She asked for further information on all matters related to the issue, which should be kept open as an agenda item. The points raised by the Indian delegation should be addressed.

HENRY HANSON-HALL (Ghana) reminded the Committee that during its meeting on 21 May, in response to questions regarding paragraph 27 of resolution 51/226, it had been informed that the paragraph could be interpreted as being restricted to field staff only. His apprehension at that time had been confirmed by the Secretary-General's letter. He supported the requests for information made by the representatives of India, Algeria and Cuba. The application of exemptions should be reviewed seriously and a proper analysis of paragraphs 26 and 27 undertaken.

Mr. SULAIMAN (Syria) said that during informal consultations, the Secretary-General should have indicated that the resolution would be applied retroactively; such information could then have been discussed. The resolution should not now be implemented retroactively. Disparities in

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exemptions granted, as well as the reasons for those exemptions, should be addressed.

Ms. SHENWICK (United States) asked about the United Nations obligations to a staff member hired on a short-term basis, pending the establishment of a permanent post. Was there an obligation to the staff member when his or her contract ended? The number of gratis personnel exempted from being appointed to positions due to the application of paragraph 26 should be provided by the Secretariat.

Mr. HANSON (Canada) said the implementation of the resolution should not be a bone of contention between developing and developed countries. He thanked the Indian delegation for its analysis on the implications of the resolution. The legal implications should be further addressed.

LIU YANGUO (China) said he agreed with the questions raised by the Indian delegation and the concerns expressed by the Cuban representative. The principle of equitable geographical representation and the representation of States should be considered when managing the human resources of the Organization. The implementation of paragraph 26 involved the views of Member States, and the Secretariat should answer the questions asked by delegations.

JOSE ANTONIO MARCONDES DE CARVALHO (Brazil) asked the Fifth Committee secretariat to indicate when members would meet again to hear the responses to their questions.

JUDITH CARDOZE (Panama) expressed support for the questions raised in the analysis provided by India. She should be answered in writing.

Ms. PEÑA (Mexico) said she only wanted to echo the concerns raised by the delegations regarding the Secretary-General's letter. She was surprised that the Secretary-General was not trying to recognize the agreements reached in adopting resolution 51/226. She looked forward to responses to the analysis by India, which should be aired in a formal, open and public meeting.

AHMED FARID (Saudi Arabia) said he fully supported the statement made by the representative of India, and he eagerly awaited the information requested.

Mr. YUSSUF (United Republic of Tanzania), for the Group of 77 and China, expressed appreciation for the Secretary-General's response. He associated his delegation with the statement made by the representative of India and hoped the Secretariat would seriously consider the questions posed therein. He appealed to the Secretariat to respond to the letter from the Group of 77 and China in written form.

INGRID LAUX, Officer-in-Charge, Office of Human Resources Management,

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thanked the representative of India for her careful analysis of recruitment policies. Written response would be provided to the Committee. In order to have a thorough response, one or two weeks would be necessary for preparation of that response.

Statements on Other Matters

Ms. BUERGO RODRIGUEZ (Cuba) said she had noted efforts to submit the information requested. But the information should not be submitted so late as to make it hard to deliberate on the issue. She then asked when the large number of reports about gratis personnel requested by the Committee would be submitted for discussion.

Ms. SHENWICK (United States) called attention to computers and telephones in a nearby room which should be put to proper use.

Ms. NAZARETH INCERA (Costa Rica) expressed regret at her absence when a garage administration official had responded to her questions but had avoided answering the question she had asked. The question, she repeated, was the legislative basis of levying parking fines on United Nations diplomats. As to the official's statement that cars parked in "No Parking" areas were fined, she said such vehicles bore "A" licence plates and belonged to Secretariat officials.

Mr. SIAL (Pakistan) said that no official had expressed problems with the submission of reports on gratis personnel during the negotiations on such personnel. Expressions of difficulties were only made by the United Nations Controller when the draft resolution on gratis personnel was to be adopted. His statement did not take precedence over the Assembly's resolution and the issue of gratis personnel should be one of the priorities of the Committee at its current session. The reports should be submitted on time.

Mr. SULAIMAN (Syria) said that the problems with the garage were getting worse. He had received notices about fines and parking spaces, yet there was no legal basis for such fines. He supported the requests by the representatives of Cuba and Pakistan for information on gratis personnel.

Ms. PEÑA (Mexico) said she supported the concerns regarding the reports on gratis personnel. Delegations had committed to taking a decision by consensus on the issue; delayed reports could delay the Committee's work.

As coordinator of the negotiations on the logistics base at Brindisi, Italy, she drew attention to draft documents available in the Conference Room. Informal consultations would be resumed on Monday.

JOSEPH ACAKPO-SATCHIVI, the Fifth Committee's Secretary, said he had informed the Organization's Controller of the Committee's concern about the

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six reports on gratis personnel. He expected an answer on the matter early next week, after which the Committee could revise its work schedule as necessary.

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