ECONOMIC AND SOCIAL COUNCIL SUSPENDS FOUR-WEEK 1998 SUBSTANTIVE SESSION

Press Release
ECOSOC/5797

ECONOMIC AND SOCIAL COUNCIL SUSPENDS FOUR-WEEK 1998 SUBSTANTIVE SESSION

The Economic and Social Council, having discussed the recommendations of the Secretary-General on utilizing development dividend, decided to await the outcome of reviews by intergovernmental bodies on the matter, as it suspended its 1998 substantive session, Friday evening, 31 July.

The consensus decision was taken based on a text presented orally by the representative of Indonesia, on behalf of the "Group of 77" developing countries and China. The representative of Indonesia said, while the developing countries attached great importance to the establishment of a development account, the Secretary-General's report should have been submitted to relevant intergovernmental bodies where its modalities and best possible uses of the development dividend could be considered. The report, he said, should not have been presented to the Council.

While the representatives of both Canada and the United States said they had joined consensus on the Group of 77 text, they appreciated the Secretary- General having brought about the matter to the attention of the Council, as it was the Council's responsibility to maintain an overview of developments in the economic and social sphere of the United Nations.

Unable to reach agreement on the Secretary-General's initiative to seek an advisory opinion from the International Court of Justice on the question of privileges and immunities of the Special Rapporteur on the Independence of Judges and Lawyers of the Commission on Human Rights, the Council decided to resume its session next week to further consider the matter.

The representative of Malaysia said differences that had arisen between Malaysia and the United Nations due to the actions of the United Nations Special Rapporteur were regrettable. However, efforts to find an amicable solution had not been fruitful. The matter would now be resolved by the World Court on the basis of submission which would be made at the appropriate time.

[The advisory opinion from the World Court would address the matter relating to a legal challenge brought against the Special Rapporteur, Dato' Param Cumaraswamy, by several Malaysian companies. Difference between the

United Nations and the Malaysian Government exists on the interpretation of the applicability of the Convention on the Privileges and Immunities of the United Nations to the case of the Special Rapporteur.]

Also this afternoon, the Council decided that the role of employment and work in poverty and education would be the theme of the high-level segment of its 1999 substantive session. It was also agreed that the coordination segment would address implementation and the coordinated follow-up by the United Nations system of initiatives on African development.

In remarks closing the 1998 substantive session, which had begun on 6 July, Council President Juan Somavia (Chile) said the work of the Council during this year had been marked by a series of "firsts" related to its activities and the working methods. Among them, the Council had convened a special high-level meeting with the Bretton Woods institutions in April. The heads of various functional commissions had met with the Council for the first time to exchange experiences, give opinions working methods, and discuss cooperation with the Council. Also, a humanitarian affairs segment had been included in the Council substantive session which had led to the adoption of agreed conclusions on the humanitarian relief system of the United Nations.

In closing, Mr. Somavia said that there was room for satisfaction, but not complacency, since the Council working methods needed further streamlining.

Nitin Desai, Under-Secretary-General for Economic and Social Affairs, also addressed the Council at the close of its session.

The Council will meet again at a date to be announced in the Journal.

Council Work Programme

Meeting Friday, 31 July, in the afternoon to conclude its 1998 substantive session, the Council had before it a report giving an update on the legal challenge brought against the Special Rapporteur on the Independence of Judges and Lawyers of the Commission on Human Rights (document E/1998/94). The report provides background information on legal challenges brought against the Special Rapporteur, Dato' Param Cumaraswamy, by several Malaysian companies. The companies have charges in Malaysian civil court that they were defamed by public statements of the Special Rapporteur and have requested some $12 million in damages.

Despite several communications between the United Nations and the Malaysian Government, a common interpretation of the applicability of the Convention on the Privileges and Immunities of the United Nations to the case of the Special Rapporteur has still not been reached, the report notes. As the Organization and the Government of Malaysia agree that a difference has arisen between them out of the interpretation or application of the Convention, they have agreed

Economic and Social Council - 3 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

that the difference should be referred to the International Court of Justice. An advisory opinion from the World Court has been requested and, pending receipt of that opinion, which shall be accepted as decisive by the parties, the Government of Malaysia is called upon to ensure that all judgments and proceedings in this matter in the Malaysian courts are stayed.

The report of the Secretary-General on utilization of the development dividend (document E/1998/81) presented proposals for the use of the development dividend following the establishment of the development account, which had been recommended by the Secretary-General as part of his overall package of United Nations reform. The report addresses the use of funds available under a new section 34 of the programme budget for the biennium 1998-1999.

The report, the Secretary-General notes, had been prepared for presentation to the relevant intergovernmental bodies by 31 July. The proposals are drawn up within the $13 million appropriation to maximize their impact. Also, they draw upon and contribute to the relevant priorities and subprogrammes established in the mid-term plan for the period 1998-2001.

Statements

Council President JUAN SOMAVIA (Chile) recalled that the Council had decided to suspend its work this morning in order to hold informal consultations on the note of the Secretary-General concerning the privileges and immunities of the Special Rapporteur on the Independence of Judges and Lawyers of the Commission on Human Rights (document E/1998/94).

Vice-President of the Council ANWARUL KARIM CHOWDHURY (Bangladesh) said that the informal consultations just concluded had reached agreement on three elements. In view of need for consultations, both at Headquarters and with capitals, it was not possible to take a decision on the Secretary-General's recommendation contained in that report. The issue of referring the matter to the International Court of Justice and the question of requesting the Malaysian Government to stay proceedings should be handled at the same time. The shortened draft resolution on the matter circulated this afternoon should be translated in all languages and made available to all delegations, in order that they might meet in the latter part of next week to take a decision.

HASMY AGAM (Malaysia) expressed his delegations' deep regrets at the difference that had arisen between Malaysia and the United Nations due to the action of the Special Rapporteur on the Independence of Lawyers and Judges, Dato' Param Cumaraswamy, a national of Malaysia. He had been appointed Special Rapporteur of the Commission on Human Rights on 2 April 1994.

His delegation had taken note of the Secretary-General's note of 30 July and of his decision to proceed to seek an advisory opinion from the International Court of Justice through the Economic and Social Council. Since

Economic and Social Council - 4 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

the matter might be referred to the World Court, his delegation would not make any substantive comment on it. Malaysia would formally submit its position on that issue at the appropriate time.

To set the record straight, however, on the Secretary-General's note, he said that with reference to the last part of paragraph 7 of the note, Malaysian Foreign Minister Abdullah Ahyad Badawi had "refused" to amend the draft certificate which he had proposed to file in Court. He had been unable to do so given the difference in interpretation by Malaysia regarding the extent of Dato' Param Cumaraswamy's immunity.

Regarding paragraph 14 of the note, it was not quite correct to say that the Government of Malaysia had insisted that in order to negotiate a settlement, the Secretary-General's Special Envoy, Yves Fortier, had to return to Kuala Lumpur. While the Malaysian Government had requested a visit by Mr. Fortier to Kuala Lumpur to assist in resolving the issue, it had been decided to send an official to New York to further explore the possibility of a settlement with the United Nations. That offer had been acceptable to the Secretary-General. It was only when the Secretary-General had further suggested the dispatch of his Special Representative to Kuala Lumpur in order to expedite the process of reaching a settlement that the Malaysian Government readily agreed to receive Mr. Fortier from 25 to 28 July.

With respect to paragraph 15, it was not factual to state that the Government of Malaysia was not going to participate in settling this matter. While it was true that it would not participate in preparing a joint submission to the current session of the Council, it had participated in every way possible -- given the legal constraints -- to try to resolve the issue and had cooperated with the United Nations towards that end. Malaysia was ready to send a senior legal official to New York in a further attempt to reach a settlement.

He said his delegation, nevertheless, expressed its deepest thanks and appreciation to the Secretary-General for the efforts he had made towards finding an amicable solution, as well as to Mr. Fortier for his energetic efforts in that regard. His efforts, unfortunately, had not led to a fruitful outcome. Notwithstanding the differences that had arisen between the United Nations and Malaysia, Malaysia would continue to strongly support for the activities of the United Nations. The resolution of the differences would be left to the Judges of the World Court on the basis of submissions which would be made to the Court at the appropriate time.

The PRESIDENT concluded the consideration of that topic, and asked whether the Council had reached a consensus on the item concerning utilization of the development dividend (document E/1998/81).

PRAYONO ATIYANTO (Indonesia) recalled that prior to the adjournment of the morning meeting, the Council President had mentioned that there would be

Economic and Social Council - 5 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

informal consultations on that question. In fact, there had been no such informal meeting, which raised some questions about the deliberation of that question.

Mr. Atiyanto, then speaking on behalf of the "Group of 77" developing countries and China, said that the Group of 77 had attached great importance to the issue of the development account. They were committed to the account's establishment and felt that there was a need for a thorough discussion on the modalities and best possible uses of such an account. The Group was very concerned about the deliberations on that issue, and held a strong view that the Economic and Social Council had not taken action on the matter. It also regretted that the report, as requested by the General Assembly, was submitted to the Council rather than to the relevant intergovernmental bodies.

He proposed that the Council take a decision on a draft text by which the Council, recalling General Assembly regulations and rules governing programme planning of the United Nations, looks forward to the outcome of the considerations of the Secretary-General's report on the utilization of the development account under section 34 of the United Nations regular budget, by the relevant intergovernmental bodies.

AMJAD HUSSAIN SIAL (Pakistan) fully associated itself with the statement made by the Chairman of the Group of 77 and China. Pakistan attached great importance to the development account and looked forward to its early utilization. Certain regulations and rules had to be followed, however, in order to avoid confusion.

The development account had been created by the General Assembly and was, therefore, subject to the regulations and rules governing programme planning. Funds for the biennium 1998-1999 would be considered by the relevant intergovernmental bodies, in accordance with existing regulations and rules, prior to its consideration by the Fifth Committee (Administrative and Budgetary).

HANS-PETER GLANZER (Austria) said that his delegation needed consultation on the recommendation made by the representative of Indonesia. Since it was not possible to take a decision on the draft text, the meeting should be suspended.

A discussion followed on the question of when to take action on the proposal by the representative of Indonesia.

AMANY FAHMY (Egypt) said that the issue had no legislative basis to be before the Economic and Social Council, which was now faced with a problem that should not have been created at all. While there was merit in postponing a decision, the Fifth Committee, which would convene on 17 August, could take it up then. It was not clear why the Council had received a report on a matter absolutely out of its mandate. The situation violated the Charter and resolutions identifying the Council's role.

Economic and Social Council - 6 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

She said that the proposal by the Group of 77 had been drafted in an attempt to reach consensus. However, if the Council did not take a decision now, there was no pressing need to discuss it again next week, in the light of the upcoming Fifth Committee meeting.

Mr. SIAL (Pakistan) said that given that the Council had discussed the substance of that report and that the Group of 77 had only made procedural suggestions, the subject should be discussed in the Second Committee (Economic and Financial) and the Fifth Committee.

MIRTHA MARIA HORMILLA CASTRO (Cuba) reiterated the need for transparent and broad consultations on all of the issues before the Council. Unfortunately, those consultations had not taken place in a timely manner, and hence the current circumstances existed. Clearly, there was no consensus on action to be taken, but there was a proposal to briefly suspend the meeting.

Mr. GLANZER (Austria) agreed on the need to suspend the meeting for five or 10 minutes.

IGOR PANEVKIN (Russian Federation) said a decision should be taken next week in order to allow more time for consultations.

ABDERRAHMANE MEROUANE (Algeria) said he supported the position expressed by the representative of Indonesia, and endorsed the positions of the representatives of Egypt, Cuba and Pakistan. The meeting should be suspended to make it possible to consider the proposal made by the Group of 77. Without a suspension, his delegation would suggest that consideration of the proposal be deferred until next week.

The PRESIDENT suspended the meeting for 15 minutes. Following the brief suspension of the meeting, Mr. GLANZER (Austria), speaking on behalf of the European Union, said that the Union could accept the draft text presented by Indonesia.

The text, which had been presented orally by Indonesia, was approved by the Council unanimously.

ROSS HYNES (Canada) said he had joined consensus on the text. Indeed, the Council had taken action on the development account, which went beyond a mere noting of the report. The Secretary-General had courteously submitted the note to the Council to "bring it up to speed" on his thinking. The Council had returned that courtesy. It had been appropriate for the Secretary-General to bring the matter to the attention of the Council, as it had a responsibility to maintain an overview of developments in the economic and social sphere of the United Nations. The Council was a relevant body in that connection, and it was inappropriate to state that the Secretary-General was committing a violation of the Charter by submitting that item to the Council.

Economic and Social Council - 7 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

Ms. FAHMY (Egypt) said that the complete title of the rules and regulations governing programme planning should be inserted into the text.

MARKARIM WIBISONO (Indonesia) expressed his appreciation on behalf of the Group of 77 and China that the Council had reached consensus on that very difficult and sensitive question. The Second and Fifth Committees should arrive at a timely and well considered decision on the report, which would be submitted to the General Assembly.

SETH WINNICK (United States) said his Government could broadly support the comments made by the representative of Canada, and it was appropriate that the Secretary-General presented the report on the development account to the Economic and Social Council for its attention.

Mr. SIAL (Pakistan) appreciated the adoption of that decision by consensus, and clarified some grammatical omissions in the text.

The Council VICE-PRESIDENT then informed the Council of a decision reached during informal consultations this morning on the themes for the various segments of the substantive 1999 session, as follows: the high-level segment theme would be the role of employment and work in poverty and education, and the empowerment and advancement of women; and the theme for the coordination segment would be implementation and coordinated follow-up by the United Nations system of initiatives on African development.

While he said he believed there was consensus on those themes, a formal decision could be taken at next week's meeting.

Closing Remarks

The PRESIDENT of the Council said this year had been marked by a series of "firsts" in the activities and the working methods of the Council. Among them were: the convening of a special high-level meeting with the Bretton Woods institutions in April; the convening of a unique session dedicated to the coordinated and integrated follow-up to United Nations summits and conferences; the chairpersons of the various functional commissions had met for the first time as a group to exchange experiences and give opinions to the bureau of the Council with respect to their working methods and their relationship with the Council; and, for the first time, there had been an exchanging of views between the bureaux of various functional commissions of the Council.

Highlighting other achievements, he said that the Council, for the first time, had held a humanitarian affairs segment with the participation of members of the Executive Committee for Humanitarian Affairs, members of the Inter-Agency Standing Committee, and a number of resident and humanitarian coordinators. Important agreements were adopted unanimously at the conclusion of that segment.

Economic and Social Council - 8 - Press Release ECOSOC/5797 48th Meeting (PM) 31 July 1998

He said the Council had also decided to decrease the number of members of the Commission on Science and Technology. It combined the mandates of two subsidiary bodies into one new entity, the Commission on Energy and Natural Resources for Development. In addition, the Council had agreed on a set of specific recommendations with regard to the work methods of its functional commissions. It had also made an in-depth review of regional commissions and welcomed reform measures undertaken by those bodies in their function as the Organization's outposts. Highlighting achievements, he said that there was room for satisfaction, but not complacency, since work methods still needed further streamlining.

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, said that, while there was still some work to be done in coordinating the work of the Council's subsidiary bodies, the Secretariat was fully committed to assisting in strengthening the work of the Economic and Social Council as the body of the United Nations on social and economic issues.

Mr. WIBISONO (Indonesia), on behalf of the Group of 77 and China, welcomed the efficiency and scheduling of every segment. He noted that this would be the last substantive session for its current President, as he was learning to assume new and important duties as head of the International Labour Organization (ILO) in Geneva. It was hoped that the work of the ILO would be as well coordinated as the Council had been under his leadership.

ERNST SUCHARIPA (Austria), on behalf of the European Union, said progress had been made in revitalization the Economic and Social Council, but there was still a considerable way to go. There was room for improvement in streamlining the agenda of the general segment with the aim of bringing the Council's review of the work of its subsidiary bodies, particularly its functional commissions, more in line with its managerial and oversight functions. The quality, as well as the timely availability of reports, was crucial for fulfilling that oversight and guidance function.

Mr. WINNICK (United States) said that the high-level segment on market access had proven far more productive than his delegation had anticipated. The ministerial communiqué adopted at the close of the segment was impressive. Such an approach should be supported in the future. The first humanitarian segment was also a notable achievement, while this year's general segment was an improvement over previous years. The Economic and Social Council had acted less as a rubber stamp and more like a deliberative body.

HIDEKI ITO (Japan) said this year's session was one of the best organized the Council had ever held, and that it should be the model for the future.

* *** *