DIPLOMATIC INDEBTEDNESS IN NEW YORK DOWN $9.5 MILLION SINCE 1996, BUT $3.6 MILLION STILL OWED, HOST COUNTRY COMMITTEE TOLD

18 February 1998

Press Release
HQ/582

DIPLOMATIC INDEBTEDNESS IN NEW YORK DOWN $9.5 MILLION SINCE 1996, BUT $3.6 MILLION STILL OWED, HOST COUNTRY COMMITTEE TOLD

19980218 United States Representative, Observer for Switzerland, Address Committee on Extent of Diplomatic Debt in Host Cities

While total diplomatic indebtedness in New York City had dropped by some $9.5 million since the beginning of 1996, $3.6 million was still currently owed, the bulk of it by nine missions, the representative of the United States said this morning. She was addressing the Committee on Relations with the Host Country as it considered the question of diplomatic debt.

The host country's representative noted that the Committee's aggressive leadership in dealing with the problem, combined with the direct involvement of the Secretariat, had resulted in a decrease of the amounts owed in New York. Nevertheless, the negative impact of the debt problem on large diplomatic communities in New York, Geneva and other host cities remained a matter of concern.

At present, indebtedness by 19 permanent missions and United Nations staff totalled $3.6 million, the bulk of which was owed by nine missions, she said. The remaining diplomatic debt and that of some United Nations staff members totalled $463,088.

The total indebtedness in New York was approximately $13 million at the beginning of 1996, she told the Committee. By November last year, it had dropped to some $2.5 million but had since increased by about $1 million. Nevertheless, more than $1.3 million in debts had been cleared during 1997.

While acknowledging that some of the Governments involved were experiencing political and economic disruptions, she said it was becoming increasingly difficult to persuade creditors not to seek relief through legal means and to accept the good offices of the United States Mission to collect the funds owed. The United States also had a clear obligation to protect the interests of its citizens and creditors. It therefore worked with all the parties in an attempt to resolve the matter.

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Addressing the question of staff debt, she noted the existence of a few cases where court-ordered family support had not been paid and expressed the hope that the few remaining cases would be resolved. The Committee's working group on diplomatic indebtedness offered great promise for resolving the problem of diplomatic debt.

The Observer for Switzerland told the Committee that the diplomatic community in Geneva owed a debt of some $7 million Swiss francs. Of that amount, half was owed by two missions, 30 per cent was owed by six missions, and smaller amounts were owed by another 15 missions. In some cases, the indebtedness was the result of internal problems in the countries concerned, but in other cases it was less understandable, he said.

The Chairman of the Committee, Sotirios Zackheos (Cyprus), said the issue of indebtedness was an important one that touched on the image of the diplomatic community. The members of the Committee must strive to resolve the problem.

Also this morning, the Chairman announced a health fair for the diplomatic community, to be held in Conference Room 4 at 10 a.m. on 24 February, at which prospective health insurance providers would present information on their services. He also announced that the Committee's Bureau had begun consultations on the Committee's membership and composition, as mandated by the General Assembly last year, but had not yet formulated any recommendations on the matter.

The Committee on Relations with the Host Country will meet again at a date to be announced in the Journal.

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