FIFTH COMMITTEE APPROVES SCALE OF ASSESSMENTS FOR 1998-2000; 1998-1999 BUDGET

22 December 1997

Press Release
GA/AB/3210

FIFTH COMMITTEE APPROVES SCALE OF ASSESSMENTS FOR 1998-2000; 1998-1999 BUDGET

19971222 Approves Nine Draft Texts at Conclusion of Work of Main Segment

The General Assembly would adopt a United Nations scale of assessments for 1998-2000 that would retain the ceiling rate at 25 per cent but lower the floor rate to 0.001 per cent, and appropriate $2.532 billion for the 1998-1999 budget, which incorporates elements of the Secretary-General's reform proposals, by the terms of two of the nine draft texts approved without a vote this afternoon by its Fifth Committee (Administrative and Budgetary).

By the draft resolution on the scale, the Assembly would decide to consider reviewing the scale for the period 1999-2000 at the resumed session, in light of such factors as the status of Member States' contributions to the regular budget.

On the 1998-1999 budget, the Committee approved a draft resolution to have the Assembly appropriate some $2.532 billion, after adjustment for inflation and exchange rates at the end of this year. By the terms of a complementary draft resolution on questions related to the budget, the Assembly would stress that the reform would be implemented with full respect for the United Nations medium-term plan for 1998-2001. It would, among others:

-- Decide to establish the post of Deputy-Secretary-General and approve the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on its salary and emoluments;

-- Decide that the amount of $362,000 saved in the abolition of the High-level Board on Sustainable Development shall be transferred to the development account. That would increase the total for that account to a little more than $13 million;

-- Approve the comments and recommendations of the ACABQ contained in its reports on the proposed budget. This includes the recommendation that the new Department of Disarmament Affairs and the Office of Communications and Public Information should be led by Under-Secretaries-General; and

Fifth Committee - 1a - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

-- Reaffirm that United Nations reform and the reduction of posts must not entail involuntary separation of staff.

By approving a draft resolution on the 1996-1997 budget, the Committee would have the Assembly set final appropriations of some $2.542 billion for the biennium, reflecting a reduction of some $61.2 million from the revised appropriations of about $2.603 billion.

Acting on the review of United Nations efficiency, the Committee approved a draft text that would have the Assembly endorse the Fifth Committee's fifty-third session work programme: 16 items for 1998 and 14 for 1999. By another draft text, the Assembly would approve 30 items for the resumed fifty-second session.

Statements in explanation of position were made by Papua New Guinea, Bangladesh, Pakistan, Russian Federation, Ukraine, Cameroon, Mexico, Brazil, Egypt, Belgium (for the European Union), Syria, India, New Zealand (also for Canada and Australia), Cuba, Saudi Arabia, Panama, United States, Bahamas, Fiji, Cuba, Indonesia, Belgium, Singapore, Bahrain, Uruguay (for the Common Market of the South), Japan, Canada, Estonia (also for Latvia and Lithuania), Kuwait, Trinidad and Tobago, Ghana, Philippines, Libya, United Republic of Tanzania and Republic of Korea.

Closing remarks were made by the representatives of the Philippines, for the Association of South-East Asian Nations (ASEAN); Argentina, for the Group of Latin American and Caribbean States; Belgium, for the European Union and the Group of Western European and Other States; Canada, also for Australia and New Zealand; Cameroon, for African States; United Republic of Tanzania, on behalf of the "Group of 77" developing countries and China; Japan; United States; Paraguay, for the Rio Group; Viet Nam, for Asian States; and Papua New Guinea.

The Committee Chairman, Anwarul Karim Chowdhury (Bangladesh), closed the main part of the Committee's session.

The Committee is scheduled to resume its session in 1998 from 9-27 March, 4-22 May and 31 August-4 September, to consider other items such as the financing of peacekeeping operations.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to conclude the main part of its fifty-second session. The items to be discussed were the budget for the 1996-1997 biennium, scale of assessments for the apportionment of the expenses of the United Nations, proposed budget for the 1998-1999 biennium and review of the efficiency of the Organization's administrative and financial functioning.

1996-1997 Budget

The Committee had before it a draft resolution on the 1996-1997 budget (document A/C.5/52/L.20). By the terms of that draft, the Assembly would resolve that the appropriation for the biennium of some $2.603 billion would be reduced by $61.2 million, to about $2.542 billion.

By other terms of the draft, the Assembly would ask the Advisory Committee on Administrative and Budgetary Questions (ACABQ) to examine the ninth progress report on the Integrated Management Information System (IMIS) and report to its resumed session. Pending a consideration of the reports on the IMIS, the supplementary provision of $3 million for IMIS, provided in the final appropriation for 1996-1997, should not be encumbered without the prior approval of the ACABQ.

Scale of Assessments

By the draft resolution on the scale of assessments for 1998-2000 (document A/C.5/52/L.17), the Assembly would retain a ceiling rate of 25 per cent but reduce the floor rate to 0.001 per cent. It would decide to consider reviewing the scale for the period 1999-2000 during the Committee's resumed session, based on the status of Member States' contributions, among other factors. The Assembly would take note of the intention of the Committee on Contributions to review all elements of the scale.

Proposed 1998-1999 Budget

On the 1998-1999 budget, the Fifth Committee has before it a consolidated report of the Committee (document A/C.5/52/L.19, Parts I and II). Part I specifies the various amounts proposed by the Secretary-General and those approved by the Fifth Committee in the process of considering the budget.

Part II of the consolidated report presents five multi-part draft resolutions on matters related to the budget. The draft resolution on questions related to the proposed budget (document A/C.5/52/L.18) would be inserted into the consolidated report as draft resolution I.

Fifth Committee - 3 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The three-section draft resolution II would in section A have the Assembly adopt total appropriation of $2.532 billion for 1998-1999; approve in section B total income of $363.8 million; resolve in section C that $1.266 billion as the appropriations for 1998, to be partly funded from assessments of $1.191 billion.

The seven-section draft resolution III would, among other things, approve a subvention of $213,000 for the United Nations Institute for Disarmament Research for 1998; approve a gross budget of some $8.2 million for the Joint Inspection Unit (JIU) for the 1998-1999 biennium; a gross budget of $11.5 million for the International Civil Service Commission (ICSC) for the same period; and note that a balance of $18.8 million remains in the contingency fund. Other sections of the draft would approve the supplementary agreement between the United Nations and the Carnegie Foundation on the use of the Peace Palace at The Hague.

Draft resolution IV, on unforeseen and extraordinary expenses, would have the Assembly authorize the Secretary-General to make commitments of up to $5 million a year in the 1998-1999 biennium in relation to the maintenance of international peace and security. It would decide that if a Security Council decision results in the need for the Secretary-General to enter into commitments exceeding $10 million, that matter shall be brought to the Assembly.

Draft resolution V, on the Working Capital Fund, would resolve that the Fund shall be established at the level of $100 million for the 1998-1999 biennium.

Review Of Efficiency of Administrative Functioning

The Committee also had before it two draft decisions on the review of United Nations efficiency (document A/C.5/52/L.15 and L.16). By the first, the Assembly would decide that the Fifth Committee should continue its consideration of 30 agenda items and reports at its resumed fifty-second session.

The text lists those items and reports. They include: financial reports and reports of the Board of Auditors; review of the efficiency of the administrative and financial functioning of the United Nations; programme budget for the 1998-1999 biennium; improving the United Nations financial situation; Joint Inspection Unit; pattern of conferences; financing of the United Nations peacekeeping forces in the Middle East; of the United Nations Angola Verification Mission; and of the activities arising from Security Council resolution 687 (1991): United Nations Iraq-Kuwait Observation Mission.

Other items also listed for consideration at the resumed session are the financing, and in some cases liquidation, of the following special missions

Fifth Committee - 4 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

and peacekeeping operations: United Nations Mission for the Referendum in Western Sahara; United Nations Transitional Authority in Cambodia; and United Nations Protection Force, United Nations Confidence Restoration Operation in Croatia, United Nations Preventive Deployment Force and the United Nations Peace Forces headquarters.

Other missions whose financing would be considered are the United Nations Operation in Somalia II; United Nations Operation in Mozambique; United Nations Peace-keeping Force in Cyprus; United Nations Observer Mission in Georgia; United Nations Mission in Haiti; United Nations Observer Mission in Liberia; United Nations Assistance Mission for Rwanda; United Nations Mission of Observers in Tajikistan; United Nations Mission in Bosnia and Herzegovina; United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium; United Nations Preventive Deployment Force; United Nations Support Mission in Haiti; United Nations Observer Mission in Angola; and Military Observer Group of the United Nations Verification Mission in Guatemala.

Also during the resumed session, the Committee would continue its consideration of administrative and budgetary aspects of the financing of the United Nations peacekeeping operations; report of the Secretary-General on the activities of the Office of Internal Oversight Services; human resources management; and appointment of members and alternate members of the United Nations Staff Pension Committee.

By the provisions of the second draft decision, the Assembly would approve the Fifth Committee's programme of work for 1998-1999, annexed to the text, with 16 items for 1998 and 14 for 1999.

Action on 1996-1997 Budget

ANWARUL KARIM CHOWDHURY (Bangladesh), Committee Chairman, proposed that the Committee approve, by consensus, the draft resolution on the programme budget for the 1996-1997 biennium.

The Committee approved, without a vote, the draft resolution on the 1996-1997 budget, thus concluding its consideration of the matter.

Action on Proposed 1998-1999 Budget

CARLOS RIVA (Argentina), who had conducted informal consultations on the proposed 1998-1999 budget, introduced the draft text on questions related to the budget and asked for a five-to-10 minute suspension of the meeting to remove some of the errors in the budget documents. Stating that there had been non-stop consultations on the budget, he asked Member States to propose the technical and oral revisions that would clean up the text and make it conform with agreements reached in the Committee's informal consultations.

Fifth Committee - 5 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

After the oral technical revisions, the Committee took up the draft text on questions related to the 1998-1999 budget (document A/C.5/52/L.18).

Speaking before action, the representative of Papua New Guinea said he would not like to reopen the issue of the draft, especially regarding its part III, section 1B -- General Assembly affairs and conference services -- paragraph 12, on the understanding that the format approved would enhance the work of the Decolonization Unit. (By the terms of paragraph 12, the Assembly decides that the unit proposed for technical aspects of servicing meetings of the Trusteeship Council, the Fourth Committee of the General Assembly and the Special Committee on decolonization shall comprise one Political Affairs Officer at the P-5 level, one at the P-3 level and two General Service staff.)

Mr. CHOWDHURY (Bangladesh), Committee Chairman, proposed that the Committee should decide what to do with the bracketed paragraph 28 under section 2B -- Disarmament. (By that paragraph, the Assembly decides that the new Department for Disarmament Affairs will be headed by an Assistant Secretary-General.)

He then proposed that the paragraph be replaced with "decides that the new Department would be headed by an Under-Secretary-General".

The representative of Pakistan said changing the post to an Under-Secretary-General would be superfluous and a departure from standard procedure. He would not agree with the change.

The representative of the Russian Federation said it was difficult to reach a consensus on the ranking of the head of the new Department. He was not ready to establish a post at the Under-Secretary-General level to head that Department. He could not join the consensus and would need to seek instructions from his capital.

The representative of Ukraine said the only consensus he could join was to delete paragraph 28.

The representative of Cameroon said that the Secretary-General had proposed that the Department be headed by an Under-Secretary-General. It had been agreed during consultations that the level of the post be lowered. Deleting the paragraph would only allow the Secretary-General to keep the head of the Department at the Under-Secretary-General level.

The representative of Mexico said she had proposed language on the establishment of the post. The Assembly was the only body to establish or abolish posts. If the wording on the post was not included in the text, it was uncertain that the interpretation would be that the Department would be headed by an Under-Secretary-General.

Fifth Committee - 6 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

Mr. CHOWDHURY, Committee Chairman, said the confusion had arisen because the Assembly had the prerogative on deciding on posts. He draw the Committee's attention to page 5, paragraph 2, in which the comments and recommendations of the ACABQ were approved, subject to the provision of the current draft. Any changes that resulted from the recommendations of the ACABQ would be reflected. Since those recommendations had been approved as a group, paragraph 28 might be deleted.

WARREN SACH, Director, Programme Planning and Budget Division, Office of Programme Planning, Budget and Accounts, said that in its report on the item, the ACABQ had indicated that it had no objection to the Secretary-General's proposal that the Department of Disarmament Affairs be headed by an Under- Secretary-General. There would be full legal authority for the establishment of the post, and the specific text on the post was not required.

The representative of Brazil said the coordinator of the budget was to have reviewed the changes in the text and then inform the Committee of the negotiations.

Mr. RIVA (Argentina), coordinator of the informal consultations on the text, said that since delegations had introduced amendments and errors, he would not delay the Committee further. He expressed thanks to all those who had provided the hundreds of hand-written amendments; the errors that had arisen had been the product of the fast pace at which the Committee had worked. The proposed budget should be approved by consensus.

The representative of Egypt said he would go along with the understanding regarding the post for the Department of Disarmament Affairs and wished to clarify that the same applied to the post of Under-Secretary-General for public information.

Mr. SACH, Director of Programme Planning and Budget Division, said that it did.

The Committee then approved, without a vote, the draft resolution on questions relating to the proposed programme budget for the 1998-1999 biennium.

Speaking after the action, the representative of Belgium, speaking for the European Union, said he would speak in explanation of position during the plenary session.

The representative of Syria expressed appreciation to the people and Government of Switzerland for their offer to house the headquarters of the High Commissioner for Human Rights in the Wilson Palais. The Assembly had not been able to discuss the Secretary-General's report on the matter in the context of the proposed 1998-1999 budget, owing to a lack of information

Fifth Committee - 7 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

requested by the ACABQ. Hence, the matter should be discussed and concluded in the early part of the Committee's resumed session, to facilitate the High Commissioner's work. The Syrian delegation had great respect and appreciation for the new High Commissioner, Mary Robinson, and wished her success in the exercise of her responsibilities.

The representative of India said the Secretariat should check the language in a sentence in Annex III, which seemed unclear, and correct any mistakes that might arise.

The representative of New Zealand, speaking also for Canada and Australia, said the draft had formalized most of the restructuring to be undertaken in line with the United Nations reform and helped establish the development account. Negotiations had shown some shortcoming in the budgetary process. The need to reduce add-ons to appropriations should be resisted. Too little information on the output of programmes had been provided. The negotiation process would not be complete without the inclusion of a net regular budget, which should in future come in outline documents. Net budgeting should be encouraged for some parts of the budget.

The representative of Japan said he welcomed the total level of appropriations for the budget of some $2.532 billion but noted that the amount was an increase of $10 million, compared with the level approved in the budget outline, after taking account of inflation and exchange rate fluctuations. Net budgeting should be encouraged for activities such as those for the JIU and the ICSC.

He welcomed the appropriation for the development account and noted the draft resolution's call on the Secretary-General to report on how the amount in the section would be treated. Since no one knew how long the current strength of the United States dollar would last, and given the fact that no provisions had been made in 1999 for special and peacekeeping missions, such matters should be kept in mind in considering the revised appropriation at a later stage.

The representative of Cuba said that while she had joined the consensus, she had some remaining concerns. The net budgeting approach should be kept under review, particularly its impact on the activities of the JIU and ICSC. Similarly, she had serious reservations about the request for resources for section 22, Office of the United Nations High Commissioner for Refugees (UNHCR), for which there were requests for resources for activities which had not been mandated. Also, she had reservations about the fact that in section 1B, General Assembly affairs and conference services, not all the secretariats of the Assembly's Main Committees were included. There should have been consistent treatment of all Committee secretariats. Further, she said the Organization's budgetary procedures should be followed.

Fifth Committee - 8 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The representative of Pakistan said he deeply appreciated the work of the Committee Chairman during its arduous and intense negotiations on the budget. Paragraph 32, regarding the filling of vacant posts, should be applied uniformly to section 3, peacekeeping operation and special missions.

The representative of Mexico said she trusted that the agreements reached in the resolution would be implemented by the Secretariat if it was supported by payment by Member States of their financial commitments in time and in full. She endorsed the Cuban delegation's comments on Committee secretariats.

The representative of Saudi Arabia said he joined the consensus on the proposed budget for 1998-1999 and thanked the Chairman, the United Nations Controller and the Secretariat staff for their efforts to reach consensus. Some requests for information had not been met, and these should be provided in the first part of the resumed session.

The representative of Panama thanked the representative of Argentina for his work in coordinating the consultations, and the Chairman as well.

The representative of the United States congratulated the Committee members for approving the budget that would enable the Secretary-General to implement mandates. He thanked all those involved in the process of approving the budget.

Mr. CHOWDHURY (Bangladesh), Committee Chairman, also thanked Mr. Riva of Argentina for his work of shepherding the budget to a consensus "in full and on time", and support extended by the Secretariat. He recalled paragraph 94 of the draft resolution and asked members to present ideas for improving the work of the Committee.

The Committee then took up the consolidated report of the Fifth Committee on the 1998-1999 budget and related matters (document A/C.5/52/L.19 Parts I and II).

The Committee had earlier approved draft resolution I contained in the report, as the separate draft resolution on questions relating to the proposed budget (document A/C.5/52/L.18).

The Committee approved, without a vote, draft resolutions II (on budget appropriations for 1998-1999); III (on special subjects, such as the United Nations Institute for Disarmament Research, JIU and ICSC); IV (unforseen and extraordinary expenses for 1998-1999); and V (working capital fund).

Speaking after the action, the representatives of Egypt and Papua New Guinea made technical corrections and suggested amendments.

Fifth Committee - 9 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

Mr. SACH, Director of Programme Planning and Budget Division, clarified the posts in question.

The representative of Brazil asked for clarification on the post for radio producer in section 26, Communications and public information.

The representative of Bahamas made a correction.

Mr. SACH said that the record would reflect the correction made by the Bahamas' representative. Regularization of that position was indeed approved by the text.

The representative of Saudi Arabia asked for clarification on net budgeting as it related to the JIU and ICSC. He asked whether the proceeds from the Unit and ICSC would be treated as miscellaneous income.

Mr. SACH, Director of Programme Planning and Budget Division, said such moneys had been treated as miscellaneous income for some time. The money received from the organizations taking part in the work of the ICSC and JIU would be held and there would be no surplus that would be returned to Member States.

Action on Scale of Assessments

Mr. CHOWDHURY, Committee Chairman, introduced the draft resolution on the Organization's scale of assessments, on behalf of Besley Maycock (Barbados), who had conducted informal consultations on the matter but was presently out of the country. He announced technical corrections to the text and draw attention to the provisional list of contributors' percentages under the new scale which had been distributed.

Speaking before action, the representative of Fiji noted that his country was not included in the list.

The representative of the United States said his delegation would address the plenary on the draft as a whole. Regarding section C of the draft, the Committee on Contributions should undertake a full review of elements for future scales. Among other matters, it should review were reducing the scale period to three years, annual calculation of the scale, application of different progressive gradients to countries below the world income per capita and the implications of using gross domestic product rather than gross national product.

The representative of Cuba suggested a technical amendment. On section C, she asked the Committee on Contributions to include among the elements it would review the need to maintain currency exchange rates, possibility of eliminating the ceiling, changing the gradient adjustment formula and debt

Fifth Committee - 10 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

adjustment so that debt stock was maintained. She had serious reservations about section D. She had accepted the paragraph on the understanding that consideration would be given on whether or not the scale should be reviewed. (By the provisions of Section D, the Assembly decided to consider reviewing the scale for the years 1999-2000 during its resumed session, in light of all relevant factors, including the periodic reports of the Secretary-General on the status of contributors.)

The representative of Indonesia said United Nations expenses should continue to be apportioned according to the principle of capacity to pay, and the low per capita income allowance should remain for the developing countries. The debt relief adjustment, based on debt stock, should be applied in calculating the scale of assessments, taking into account the serious economic and financial situation of developing countries, which faced high external debt. Indonesia would continue supporting the United Nations despite its current financial distress that had slashed the value of its currency in relation to the United States dollar by more than 50 per cent, since the beginning of 1997.

The representative of Belgium, speaking for the European Union and Czech Republic, Hungary, Lithuania, Poland and Romania, said the scale was moving towards a better reflection of the situation in the international economy. The provision for debt adjustment as written in the draft resolution was a matter of disappointment. He was happy with the lowered floor rate of 0.001 per cent. But one could ask whether the outcome of the scale negotiations was the most equitable one possible.

The Committee seemed to be abdicating its responsibility of providing guidance to the Committee on Contributions, an expert body, he said. Shortening the statistical base period to three years should remain a priority for that Committee of experts. There should be an in-depth study of annual calculations of the scale of assessments. The subject of the scale was sensitive and was a delicate mix between equity and national interests.

The representative of Singapore asked the Committee on Contributions to ensure that the methodology did not depart from the principle of low per capita income. Addressing the discontinuity at threshold related to the low per capita income should not include a surcharge on other countries.

The representative of Bahrain expressed support for the statement by the representative of Singapore. Discontinuity at the threshold should not be addressed by applying what would amount to surcharges on other countries.

The representative of Bahamas, expressing appreciation to the coordinator and to the Chairman for their efforts, associated herself with the comments made by the representative of Singapore.

Fifth Committee - 11 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The representative of Uruguay, speaking for countries of the Common Market of the South (Mercosur) and those associated with it (Argentina, Brazil, Paraguay, Uruguay, Bolivia and Chile), expressed concern that the contributions assessed to one of its member were moving further from its capacity to pay. The current scale system should be amended. States crossing the threshold of average world per capita income for the first time should not have the surcharge imposed immediately. Currency exchange rates should be kept under review. The scale must be in line with States' actual economic realities.

The representative of (Japan) said that the citizens of each Member State should feel that the financing of the Organization was shared in a responsible manner. Governments would be unable to retain the support of their citizens unless they could assure them that fairness was used in deriving the United Nations scale. The current scale did not result in a fair apportionment. On the low per capita income adjustment, he said that Member States with large economies and low per capita incomes would not pay their fair share. The scale sometimes did not reflect countries' real capacity to pay.

Each Member State's share in financing the Organization should correspond with its status within the United Nations, he said, in keeping with the concept of the responsibility to pay. For example, permanent members of the Security Council played important roles in the Organization. At the creation of the United Nations, those permanent members had paid over 70 per cent of the Organization's bills; now the amount was below 40 per cent. The largest contributor wished to lower the ceiling, while Japan's percentage points in the scale continued to rise.

Every Member State should pay at least a minimum share in the Organization, he said. The decision to reduce that minimum to some $10,000 per annum should be carefully considered. The gradient should be reduced to 75 per cent, and possibly further. The scheme of limits should be phased out in three years. While the scale which the Committee was about to approve was not fully fair, Japan would support the consensus. His delegation understood that the Assembly would be adopting a three-year scale, not just for one year. In principle, the financing of the Organization should not rely on one Member State; lowering the ceiling represented a further imbalance. He hoped the Committee on Contributions would undertake a comprehensive review of each element in the scale's methodology.

(The scheme of limits is a mechanism to slow down the rate by which Member States' dues can vary between two successive scales. Countries assessable incomes are reduced by the proportion by which their per capita income falls below the world average, the threshold, multiplied by a percentage figure called the "gradient".)

Fifth Committee - 12 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The representative of Canada said he was pleased to join the consensus on the draft resolution on the scale of assessments. But the methodology underlying the scale, which was complex and even arcane, called for simplification. The scale must take into consideration the great diversity in the wealth of the various countries in the United Nations. The Committee on Contributions should consider elements proposed by some Member States, such as a cut in the statistical base period to three years. It should address the discontinuity in relation to the adjustments for low per capita income, examine debt burden adjustments and the implications of the elimination of the ceiling rate. Each Member State was obliged to pay its dues in full, on time and without conditions. Adjustments to the scale should neither be prejudged nor presumed.

The representative of Estonia, also speaking for Latvia and Lithuania, aligned himself with the statement by the European Union and commented on the phasing out of the scheme of limits.

The representative of Australia associated himself with the substance of the remarks by Canada's representative.

The representative of China said the Secretariat should make corrections to the Chinese version of the draft text, which had omissions, such as in section D. Responding to the statement by Japan's representative, he said the Committee on Contributions could not be asked to make political decisions without the specific mandate of the Assembly on such matters as the responsibility to pay. China's status as a permanent member of the Security Council was not bought with money. Rather, it was a tribute to its efforts to resist aggression in the Second World War. It lost more than 27 million people in that war. Those who launched wars of aggression had a greater responsibility in that regard. Last week, for instance, China marked the anniversary of the Nanking massacre. It would not accept the concept of the responsibility to pay as proposed.

The representative of Latvia expressed support for the statement made by the European Union to the Committee on Contributions. The discontinuity in low per capita income adjustment had cropped up as an unintended consequence of other decisions. The Committee on Contributions should work in a way that would minimize such consequences in the future. In seeking ways to improve the Fifth Committee's work in the resumed session, the Committee should exploit the depth of experience that enabled Mr. Maycock of Barbados to guide negotiations to produce a new text.

The representative of Turkey said she had different interpretations and views on the subject of the scale and the table of assessments. The draft text's provisions on the scale elements and criteria seemed, for instance, to have been contradicted by the assessment figures proposed for her country.

Fifth Committee - 13 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The representative of Kuwait said he supported the statements made by the representatives of Singapore, Bahrain and the Bahamas. The informal consultations had been characterized by an attempt to introduce political matters into the technical discussion of the scale's elements. That process had delayed the agreements and should not be repeated.

The representative of Saudi Arabia said he supported the statements made by the representatives of Singapore, Kuwait and Bahrain. The principle of low per capita adjustment should be maintained. A progressive surtax should not be imposed on countries with high per capita income.

The representative of New Zealand said she fully supported the views expressed by the representative of Australia.

The representative of India said that the draft resolution indicated that the Committee on Contributions would review the scale's methodology. He did not agree that purchasing power parity should be reviewed. Introduction of such concepts would only distort the consensus reached.

The representative of Trinidad and Tobago said that he had been pleased to be associated with the negotiations that had led to the formulation of a balanced scale. The draft before the Committee had been successful despite the unprecedented fact that at the beginning of the session there were eight proposed scales. With regard to section C of the resolution, the truncated version that was before the Committee had been the result of time constraints. It should not be an approach to be used in future scale negotiations. (By the provisions of Section C, the Assembly, among others, takes note of the intention of the Committee on Contributions to review all elements of the scale methodology.)

The representative of Ghana stressed that the intention should not be to identify a particular period but to get what would be right and proper for all Member States. The Committee on Contributions should consider the debt burden adjustment based on debt stock.

The representative of Mexico expressed the hope that the Committee on Contributions would consider various possible base periods for determining the scale for 2001-2003. The balance that emerged from the discussions on the scale methodology should be maintained.

The representative of the Philippines asked the Committee on Contributions to ensure that the interests of the developing countries were taken into account in reviewing the methodology. Debt burden should be considered in the context of debt stock. The length of the base period should be considered in the context of the abolition of the scheme of limits.

The representative of Libya said the Committee on Contributions should retain the capacity to pay as the basic principle for calculating the scale.

Fifth Committee - 14 - Press Release GA/AB/3210 46th Meeting (AM) 22 December 1997

The specific difficult economic conditions outside the control of Member States should also be considered. He supported the statements by the representatives of Singapore, Bahrain and Saudi Arabia on the issue of discontinuity in relation to the low per capita income adjustment.

Mr. CHOWDHURY (Bangladesh), Committee Chairman, proposed that the Committee approve the draft resolution on the scale of assessments, as orally amended.

The Committee approved, without a vote, the text on the scale of assessments.

Explanation of Position

Speaking after the action, the representative of Ukraine said that the text had been the result of long negotiations. The assessments of a large number of Member States were now more in line with their real capacity to pay. The new scale provided his country the opportunity to significantly reduce its arrears. Ukraine would be making a payment of over $20 million in the next few days.

The representative of United Republic of Tanzania, speaking on behalf of the "Group of 77" developing countries and China, thanked the coordinator and the Chairman. The Group of 77 and China joined the consensus with great pride. He urged all Member States to pay their contributions in full, on time and without conditions.

The representative of the Republic of Korea, congratulating the Committee Chairman, coordinator and Secretariat, said while he had reservations concerning the scheme of limits, he had joined the consensus. The Organization's successful functioning depended on Member States making their assessed payments. He had reservations about section D of the draft; the discussion on the scale should not be reopened.

The representative of the Russian Federation expressed thanks to his colleagues and the Secretariat staff that had enabled the Committee to reach the stage where it could adopt a consensus draft resolution on such a sensitive matter.

Action on Review of United Nations Efficiency

The Committee Chairman, Mr. CHOWDHURY (Bangladesh), introduced two draft decisions on review of the United Nations efficiency

The Committee approved, without a vote, the draft decision on items for the resumed session (document A/C.5/52/L.15).

Another draft, on the Committee's work programme for 1998-1999 (document A/C.5/52/L.16), was also approved without a vote.

* *** *