VZCZCXYZ0025
OO RUEHWEB

DE RUCNDT #0984 3032221
ZNR UUUUU ZZH
O 292221Z OCT 08
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC IMMEDIATE 5201

UNCLAS USUN NEW YORK 000984 
 
SIPDIS 
 
DEPARTMENT FOR IO 
 
E.O. 12958: N/A 
TAGS: PREL ORCA
SUBJECT: UNGA:  FIFTH COMMITTEE DISCUSSES SCALES OF 
ASSESSMENTS, ARREARS 
 
 ¶1.  On October 6 and 7, the Fifth Committee held formal 
discussions on agenda item 122: "Scale of Assessments for the 
Apportionment of the Expenses of the United Nations."  Member 
States considered the annual Report of the Committee on 
Contributions (A/63/11), which reflects the Committee,s 
broad discussion of all of the elements of the scale 
methodology.  Notably, the Committee on Contributions report 
recommends granting temporary exemptions from loss-of-vote 
under Article 19 of the UN Charter to the seven Member States 
who could not pay their assessments due to "reasons beyond 
their control."  The Fifth Committee also considered the 
Secretary-General's Report on Multi-Year Payment Plans for 
the seven countries in arrears (A/63/68), which details the 
voluntary payment plans and schedules of Liberia, Sao Tome 
and Principe, and Tajikistan, each with significant arrears. 
 
¶2.  During formal discussions, developing countries called 
for continued adherence to the "capacity to pay" principle 
and an end to the 22 percent ceiling on assessments, citing 
the ceiling as a distorting factor of the "capacity-to-pay" 
concept.  After formal introductions, Member States moved 
into informal discussions where the Committee approved a 
draft resolution to grant the Article 19 exemption and 
preserve voting rights for seven countries. 
 
¶3.  In the debate on methodology, nearly every Member State 
advocated preserving the status quo.  Antigua and Barbuda, 
speaking on behalf of the G-77 and China, reaffirmed 
"capacity to pay" as a "fundamental principle" that "should 
not be altered in any way."  Angola, on behalf of the African 
Group, cited the current oil, food and financial crises in 
support of the G-77 position.  Russia jumped on the 
bandwagon, denying any need for major methodological changes. 
 Mexico stated the methodology may only need some 
"fine-tuning." 
 
¶4.  As expected, Antigua and Barbuda, speaking on behalf of 
the G-77 and China, also criticized the existing 22 percent 
ceiling as a "unilateral move by one Member State" that 
distorts other Member States, assessments.  Iran also called 
for abandonment of the ceiling, claiming that it was a 
"political compromise" that is "detrimental to other Member 
States."  Venezuela condemned the ceiling as "unilaterally" 
imposed by the country that pays the least in real terms, 
which is being subsidized by all the other Member States. 
 
¶5.  Positive interventions came from France, on behalf of the 
European Union, and Japan.  France advocated timely payments 
for those able, and multi-year payment plans for those in 
difficulty.  Japan vaunted its payment record despite 
financial difficulties, and called for a better methodology. 
 
¶6.  Article 19:  With no contention, the Fifth Committee 
approved a draft resolution in informal discussions extending 
voting rights to the following seven Member States who could 
not make required payments due to "reasons beyond the 
control" of the Member:  Central African Republic, Comoros, 
Guinea-Bissau, Liberia, Sao Tome and Principe, Somalia and 
Tajikistan.  However, France did express that it will pursue 
a more reserved policy when granting future exemptions from 
Article 19, which stipulates loss-of-vote due to deadbeats. 
UNGA subsequently passed this resolution by consensus. 
 
¶7.  Multi-year payment plans:  Member States commended 
Liberia, Sao Tome and Principe, and Tajikistan for continuing 
to implement their respective a multi-year payment strategies 
to alleviate arrearages.  There were no new requests for 
payment plans over the last year.  These requests are made on 
a voluntary basis. 
Khalilzad