This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 05 ROME 001601 
 
SIPDIS 
 
FROM FODAG 
 
STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK 
USDA/FAS FOR REICH AND HUGHES 
ATHENS FOR CLEVERLEY 
 
E.O. 12958:  N/A 
TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO
SUBJECT:  FAO 102ND FINANCE COMMITTEE PREVIEW 
 
¶1.  THIS IS AN ACTION REQUEST. 
 
¶2.  SUMMARY.  THE 102ND SESSION OF THE UN FOOD AND 
AGRICULTURE ORGANIZATION (FAO) FINANCE COMMITTEE WILL 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01601  01 OF 05  151122Z 
MEET MAY 5-9, 2003.  IMPORTANT ACTION ITEMS FOR THE U.S. 
INCLUDE: REPORT ON FOLLOW-UP TO THE EXTERNAL AUDITOR'S 
RECOMMENDATIONS; A PROPOSAL FOR A SPLIT CURRENCY 
ASSESSMENT; THE PROGRAM OF WORK AND BUDGET FOR 2004-2005 
AND A PROPOSAL TO CHANGE THE METHODOLOGY FOR DETERMINING 
EQUITABLE GEOGRAPHIC REPRESENTATION OF STAFF.  THIS CABLE 
PREVIEWS AND REQUESTS GUIDANCE ON THE ITEMS FOR WHICH 
DOCUMENTATION IS CURRENTLY AVAILABLE. END SUMMARY. 
 
¶3.  THE 102ND SESSION OF THE FAO FINANCE COMMITTEE (FC) 
WILL MEET MAY 5-9. THIS CABLE PREVIEWS AND REQUESTS 
GUIDANCE ON THE ITEMS FOR WHICH DOCUMENTATION IS 
CURRENTLY AVAILABLE.  GUIDANCE REQUIRED FOR CAPITAL 
BUDGETING (SEE PARA 14); SUMMARY PROGRAM OF WORK AND 
BUDGET (SEE PARA 19); SPLIT ASSESSMENT (SEE PARA 20) AND 
GEOGRAPHICAL REPRESENTATION OF STAFF (SEE PARA 26). 
SEPTEL WILL COVER REMAINING ITEMS AND THE MAY 7 JOINT 
SESSION OF THE PROGRAM AND FINANCE COMMITTEES.  ALL 
DOCUMENTS CITED ARE AVAILABLE ON THE FAO WEB SITE 
(WWW.FAO.ORG). 
 
¶4.  ITEM 1 AND 2, ADOPTION OF AGENDA AND TIMETABLE, 
ELECTION OF VICE-CHAIRPERSON.  FOR INFORMATION. 
 
PART I, FINANCIAL AND BUDGET REPORTS 
----------------------------------- 
 
¶5.  AGENDA ITEM 3, ANNUAL REPORT ON BUDGETARY PERFORMANCE 
AND PROGRAM AND BUDGETARY TRANSFERS (DOCUMENT 102/3) 
 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01601  01 OF 05  151122Z 
BACKGROUND: THE FC REVIEWS THE REPORT ON BUDGETARY 
PERFORMANCE FOR 2002 TO ENSURE THAT THE DIRECTOR GENERAL 
HAS MANAGED THE APPROPRIATIONS SO AS TO ENSURE THAT 
ADEQUATE FUNDS ARE AVAILABLE TO MEET EXPENDITURES DURING 
THE BIENNIUM.  TRANSFERS FROM ONE CHAPTER TO ANOTHER MUST 
BE APPROVED BY THE FC.  THE 102ND SESSION WILL BE 
INFORMED OF THE LIKELY MAGNITUDE OF SUCH BUDGET 
TRANSFERS, BUT THE FORMAL REQUEST FOR TRANSFERS WILL NOT 
BE SUBMITTED UNTIL THE SEPTEMBER 2003 FC MEETING. 
 
FOR DISCUSSION: 
 
--  MANAGING APPROPRIATIONS: THE 2002 SPENDING REPRESENTS 
50.1 PERCENT OF THE USD 651.8 MILLION APPROPRIATION FOR 
2002-03.  FULL UTILIZATION OF THE APPROPRIATION IS 
FORESEEN IN THE BIENNIUM. 
 
-- TRANSFERS:  THE FAO IS EXPERIENCING A SHARP DECLINE IN 
SUPPORT COST EARNINGS AS A RESULT OF THE CONTINUED 
REDUCTION IN NON-EMERGENCY EXTRA-BUDGETARY PROJECTS.  THE 
SHORTFALL IS ESTIMATED AT USD 6.2 MILLION OVER THE 
BIENNIUM.  TRANSFERS WILL BE NEEDED TO COVER FIXED STAFF 
COSTS PREVIOUSLY COVERED BY SUPPORT COST INCOME. 
 
FODAG COMMENT:  THE DOWNWARD TREND OF SUPPORT COST INCOME 
AND ITS BUDGETARY IMPLICATIONS REQUIRE GREATER MANAGEMENT 
ATTENTION. 
 
¶6.  AGENDA ITEM 4, FAO INTERIM ACCOUNTS AT DECEMBER 31, 
2002 (DOC 102/4) 
 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01601  01 OF 05  151122Z 
BACKGROUND AND COMMENT: FOR INFORMATION ONLY 
 
¶7.  AGENDA ITEM 5, REPORT ON INVESTMENTS (DOC 102/5) 
 
BACKGROUND AND COMMENT:  FOR INFORMATION.  THE FAO 
INVESTMENT COMMITTEE MET IN JANUARY 2003 AND DECIDED TO 
TERMINATE THE SERVICES OF THE LONG-TERM PORTFOLIO 
MANAGER, FIDUCIARY TRUST INTERNATIONAL BASED ON THE 
CONTINUING UNDERPERFORMANCE OF THE PORTFOLIO.  THE FC 
WILL BE UPDATED ON THE STATUS OF THE TERMINATION OF THE 
CONTRACT AND THE NEW TEMPORARY ARRANGEMENTS FOR THE 
PORTFOLIO.  IN ADDITION, THE FIRST RESULTS OF A DETAILED 
ASSET AND LIABILITY STUDY (REQUESTED IN MAY 2002) WILL BE 
PRESENTED. 
 
¶8.  AGENDA ITEM 6, FINANCIAL HIGHLIGHTS (DOC 102/6) 
 
BACKGROUND: THE FINANCIAL HIGHLIGHTS REPORT SHOWS THE 
FINANCIAL SITUATION BY INCOME AND EXPENDITURE AND REPORTS 
ON ARREARS. 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ8914 
 
PAGE 01        ROME  01601  02 OF 05  151122Z 
ACTION IO-00 
 
INFO  LOG-00   MFA-00   AID-00   AMAD-00  CIAE-00  INL-00   EAP-00 
      EB-00    EUR-00   UTED-00  FDRE-01  FOE-00   TEDE-00  INR-00 
      L-00     DCP-01   NSAE-00  OES-00   OIC-02   CAEX-00  PER-00 
      IRM-00   SS-00    TEST-00  FMP-00   SAS-00     /004W 
                  ------------------5600CA  151123Z /38 
R 151124Z APR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 9265 
USDA FAS WASHDC 2618 
USMISSION USUN NEW YORK 
AMEMBASSY ATHENS 
 
UNCLAS SECTION 02 OF 05 ROME 001601 
 
SIPDIS 
 
FROM FODAG 
 
STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK 
USDA/FAS FOR REICH AND HUGHES 
ATHENS FOR CLEVERLEY 
 
E.O. 12958:  N/A 
TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO
SUBJECT:  FAO 102ND FINANCE COMMITTEE PREVIEW 
 
FOR DISCUSSION: 
 
-- TECHNICAL COOPERATION PROGRAM (TCP) AVAILABLE 
APPROPRIATION CONTINUES TO INCREASE, INDICATING LONGER 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01601  02 OF 05  151122Z 
LAGS IN PROJECT EXECUTION. 
 
-- LOSS OF 12.2 MILLION IN LONG-TERM INVESTMENTS.  THE 
GAP BETWEEN THE VALUE OF LONG-TERM INVESTMENTS AND FAO'S 
SHARE OF STAFF-RELATED LIABILITIES HAS INCREASED. 
 
-- AS OF DECEMBER 31, 2002, 43 MEMBERS HAD ARREARS 
SUFFICIENT TO JEOPARDIZE THEIR RIGHT TO VOTE.  TOTAL 
ARREARS WERE USD 56.5 MILLION, OR 17.45 PERCENT OF THE 
CURRENT ASSESSMENTS.  WHILE MORE MEMBERS HAVE PAID IN 
FULL, THE AMOUNT OF ARREARS (EXCLUDING U.S.) CONTINUES TO 
INCREASE SLIGHTLY COMPARED TO PREVIOUS YEARS. 
 
OVERSIGHT MATTERS 
----------------- 
 
¶9.  AGENDA ITEM 7, 2002 ANNUAL ACTIVITY REPORT OF THE 
OFFICE OF THE INSPECTOR GENERAL (DOC 102/7) 
 
BACKGROUND AND COMMENT:  FOR INFORMATION, BUT OF 
PARTICULARLY INTEREST GIVEN CRITICAL REPORT OF THE 
EXTERNAL AUDITOR IN 2002.  THE REPORT NOTES THAT THE 
EXTERNAL AUDITOR SPECIFICALLY RECOMMENDED THAT ANOTHER 
REVIEW OF THE INTERNAL CONTROLS OVER THE USE OF THE FAO'S 
RESOURCES SHOULD BE CONDUCTED.  AN EXPERT CONSULTANT WAS 
CONTRACTED TO ASSIST IN DEVELOPING NEW RISK ASSESSMENT 
METHODOLOGY.  (SEE ALSO FOLLOW-UP TO REPORT OF THE 
EXTERNAL AUDITOR).   THIS DOCUMENT OTHERWISE PROVIDES A 
LISTING OF THE ACTIVITIES OF THE OFFICE OF THE INSPECTOR 
GENERAL.  THE OIL-FOR-FOOD PROGRAM CONTINUES TO BE AN 
AREA OF MAJOR AUDIT ATTENTION AND A TOP PRIORITY FOR THE 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01601  02 OF 05  151122Z 
ORGANIZATION.  OTHER AUDITS CONDUCTED ON: FIELD 
OPERATIONS IN AFGHANISTAN, LETTERS OF AGREEMENT, AUTHOR'S 
CONTRACTS AND "TELEFOOD." 
 
¶10.  AGENDA ITEM 8, PROGRESS REPORT ON IMPLEMENTATION OF 
THE EXTERNAL AUDITOR'S RECOMMENDATIONS (DOC 102/8) 
 
NOT YET AVAILABLE. 
 
¶11.  AGENDA ITEM 9, PROGRAM OF WORK OF THE EXTERNAL 
AUDITOR (DOC 102/9) 
 
BACKGROUND AND COMMENT: THE EXTERNAL AUDITOR WILL EXAMINE 
FAO'S TECHNICAL COOPERATION PROGRAM.  MISSION SUPPORTS 
THIS CHOICE. 
 
¶12.  AGENDA ITEM 10, APPOINTMENT OF THE INSPECTOR GENERAL 
(DOC 102/10) 
 
NOT YET AVAILABLE. 
 
¶13.  UN JOINT INSPECTION UNIT (JIU) REPORTS (SEE WEB 
SITE). 
 
BACKGROUND AND COMMENT: FOR INFORMATION.  THE JIU REPORTS 
ARE ALSO MADE AVAILABLE TO COUNCIL FOR COMMENT. 
 
III. FINANCIAL POLICY MATTERS 
----------------------------- 
 
¶14.  AGENDA ITEM 12, CAPITAL BUDGETING (DOC 102/12) 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01601  02 OF 05  151122Z 
 
BACKGROUND:  THE FC AT ITS LAST SESSION REQUESTED FURTHER 
INFORMATION ON CAPITAL BUDGETING FOR FINANCING ONE-TIME 
CAPITAL ITEMS. 
 
DEPARTMENT GUIDANCE REQUESTED ON PROPOSAL TO INTRODUCE A 
LIMITED FORM OF CAPITAL BUDGETING IN 2004-2005. 
 
¶15.  AGENDA ITEM 13, REVIEW OF PROJECT PROPOSAL TO 
CONFIRM COMPLIANCE WITH FAO'S MANDATE (DOC 102/13). 
 
BACKGROUND: FOR INFORMATION.  THE FC ASKED TO BE INFORMED 
OF THE MEANS FOR ENSURING THAT PROJECTS FUNDED FROM 
VOLUNTARY CONTRIBUTIONS MET THE ORGANIZATION'S CRITERIA 
FOR ACCEPTANCE OF SUCH CONTRIBUTIONS. 
 
¶16.  AGENDA ITEM 14, PROPOSAL TO ESTABLISH A SPECIAL FUND 
FOR EMERGENCY AND REHABILITATION ACTIVITIES (DOC 102/14) 
 
BACKGROUND: THE DG MAY AUTHORIZE THE CREATION OF TRUST 
FUND ACCOUNTS ON HIS OWN AUTHORITY.  THE PROPOSAL TO 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ8913 
 
PAGE 01        ROME  01601  03 OF 05  151123Z 
ACTION IO-00 
 
INFO  LOG-00   MFA-00   AID-00   AMAD-00  CIAE-00  INL-00   EAP-00 
      EB-00    EUR-00   UTED-00  FDRE-01  FOE-00   TEDE-00  INR-00 
      L-00     DCP-01   NSAE-00  OES-00   OIC-02   CAEX-00  IRM-00 
      SS-00    TEST-00  FMP-00   SAS-00     /004W 
                  ------------------5600D8  151123Z /38 
R 151124Z APR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 9266 
USDA FAS WASHDC 2619 
USMISSION USUN NEW YORK 
AMEMBASSY ATHENS 
 
UNCLAS SECTION 03 OF 05 ROME 001601 
 
SIPDIS 
 
FROM FODAG 
 
STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK 
USDA/FAS FOR REICH AND HUGHES 
ATHENS FOR CLEVERLEY 
 
E.O. 12958:  N/A 
TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO
SUBJECT:  FAO 102ND FINANCE COMMITTEE PREVIEW 
 
CREATE A SPECIAL TRUST FUND FOR EMERGENCIES AND 
REHABILITATION ACTIVITIES IS PROVIDED FOR FC INFORMATION. 
THE TRUST FUND WOULD PROVIDE "SEED MONEY" TO RAPIDLY 
INITIATE EMERGENCY OPERATIONS AND PROVIDING ADVANCE 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01601  03 OF 05  151123Z 
FUNDING WHEN A DONOR'S COMMITMENT HAS BEEN OBTAINED FOR 
PROCUREMENT OF INPUTS. 
 
DISCUSSION: 
 
- THE SPECIAL FUND WILL HAVE A TARGET LEVEL OF USD 2 
MILLION AND BE UNDER THE AUTHORITY OF THE ASSISTANT 
DIRECTOR GENERAL FOR TECHNICAL COOPERATION 
 
-- THE FUNDING IS TO COME FROM, INTER ALIA, DIRECT 
CONTRIBUTIONS FROM DONORS; RETENTION/TRANSFER OF FUND 
BALANCES AS AUTHORIZED BY DONORS; TRANSFER OF A SHARE OF 
FUNDS FROM THE DIRECT OPERATING COST RECOVERY ACCOUNT. 
 
¶17.  AGENDA ITEM 15, INNOVATIVE MODELS FOR LEVERAGING 
RESOURCES IN SUPPORT OF THE FIELD PROGRAM (DOC 102/15) 
 
DOCUMENT NOT YET AVAILABLE. 
 
¶18.  AGENDA ITEM 16, INFORMATION NOTE ON THE COST OF THE 
WORLD FOOD SUMMIT FIVE YEARS LATER. 
 
DOCUMENT NOT YET AVAILABLE. 
 
IV.  BUDGETARY MATTERS 
---------------------- 
 
¶19.  SUMMARY PROGRAM OF WORK AND BUDGET (SPWB) 2004-05 
(DOC CL 124/3) 
 
BACKGROUND: THE FC IS REQUESTED TO EXAMINE THE "FINANCIAL 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01601  03 OF 05  151123Z 
ASPECTS" OF THE SPWB, INCLUDING COST INCREASES, IMPACT OF 
EXCHANGE RATES, ETC. 
 
DISCUSSION: 
 
-- THE SPWB PROVIDES ZERO REAL GROWTH (ZRG) AND REAL 
GROWTH (RG) SCENARIOS. 
 
-- THE ZRG BUDGET REPRESENTS A NET INCREASE OF 5.2 
PERCENT OVER THE CURRENT ASSESSMENT. 
 
-- THE RG BUDGET REPRESENTS A NET INCREASE OF 11 PERCENT 
OVER THE CURRENT ASSESSMENT. 
 
-- THE SPWB NOTES THAT UNFUNDED LIABILITIES FOR AFTER 
SERVICE MEDICAL CARE, IF NOT ATTENDED TO SHORTLY "WILL 
HAVE A SEVERE DEBILITATING EFFECT ON THE FINANCES OF FAO 
IN COMING YEARS."  FAO MEMBERS ARE ASKED TO ACCOMMODATE 
THIS BY INCREASING ASSESSED CONTRIBUTIONS BY AN 
ADDITIONAL USD 14.1 MILLION (A FURTHER 2.2 PERCENT.) 
 
-- THE SPWB ALSO NOTES THAT, AT RECENT EXCHANGE RATES, 
THE BUDGET EXPRESSED IN USD WOULD BE APPROXIMATELY USD 56 
MILLION MORE.  HOWEVER, THE INTRODUCTION TO THE SPWB 
EXPRESSES THE DG'S EXPECATION THAT THE FC WILL RESOLVE 
THIS QUESTION BY AOPTING A SPLIT CURRENCY ASSESSMENT. 
 
DEPARTMENT UIDANCE REQUESTED ON FINANCIAL ASPECTS OF THE 
SPB, INCLUDING OVERALL BUDGET LEVEL. 
 
¶20.  SPLIT ASESSMENTS (DOCS 102/18 AND 102/INF/18) 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01601  03 OF 05  151123Z 
 
BACKGROUD: THE FC HAS HAD THIS ITEM UNDER CONSIDERATION 
SNCE ITS 95TH SESSION IN 2000.  FAO MANAGEMENT APPERS 
TO BE CONVINCED THAT A SPLIT ASSESSMENT SCHEM IS THE 
BEST WAY TO MINIMIZE THE IMPACT OF EXCHAGE RATE 
EXPOSURE.  THE FC WILL BE REQUESTED TO EDORSE THE 
PROPOSALS TO IMPLEMENT SPLIT ASSESSMENTWITH A VIEW TO 
HAVING THE FAO BASIC TEXTS AMENDE AT THE NOVEMBER 2003 
FAO CONFERENCE. 
 
DEPARTMNT GUIDANCE REQUESTED. 
 
¶21.  AGENDA ITEM 19, SCAE OF CONTRIBUTIONS 2004-05 (DOC 
102/19) 
 
BACKGOUND AND COMMENT:  FOR INFORMATION.  AN ISSUE OF 
MPORTANCE TO CERTAIN MIDDLE-INCOME COUNTRIES (REPULIC 
OF KOREA, CHINA, ARGENTINA) WHOSE ASSESSMENT INCREASED 
AS A RESULT OF THE NEW SCALE. 
 
¶22. AGENDA ITEMS 20, 21, 22, BUDGET FOR THE EUROPEAN 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ8916 
 
PAGE 01        ROME  01601  04 OF 05  151123Z 
ACTION IO-00 
 
INFO  LOG-00   MFA-00   AID-00   AMAD-00  CIAE-00  INL-00   EAP-00 
      EB-00    EUR-00   UTED-00  FDRE-01  FOE-00   TEDE-00  INR-00 
      L-00     DCP-01   NSAE-00  OES-00   OIC-02   CAEX-00  IRM-00 
      SS-00    TEST-00  FMP-00   SAS-00     /004W 
                  ------------------5600EC  151123Z /38 
R 151124Z APR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 9267 
USDA FAS WASHDC 2620 
USMISSION USUN NEW YORK 
AMEMBASSY ATHENS 
 
UNCLAS SECTION 04 OF 05 ROME 001601 
 
SIPDIS 
 
FROM FODAG 
 
STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK 
USDA/FAS FOR REICH AND HUGHES 
ATHENS FOR CLEVERLEY 
 
E.O. 12958:  N/A 
TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO
SUBJECT:  FAO 102ND FINANCE COMMITTEE PREVIEW 
 
COMMISSION FOR CONTROL OF FOOD AND MOUTH DISEASE; FOR THE 
REGIONAL ANIMAL PRODUCTION AND HEALTH COMMISSION FOR ASIA 
AND THE PACIFIC; AND FOR THE DESERT LOCUST COMMISSION. 
(DOCS 102/20, 21, 22). 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01601  04 OF 05  151123Z 
 
BACKGROUND: FOR REVIEW AND COMMENT. 
 
¶V.  HUMAN RESOURCES MANAGEMENT 
 
¶23.  AGENDA ITEM 23, PROGRESS REPORT ON HUMAN RESOURCES 
MANAGEMENT (DOC 102/23) 
 
BACKGROUND: FOR INFORMATION. 
 
¶24.  AGENDA ITEM 24, STATISTICS OF PERSONNEL SERVICES 
(DOC 102/24) 
 
BACKGROUND: FOR INFORMATION. SOME SNAPSHOTS: BETWEEN 1994 
AND 2002 PROFESSIONAL STAFF REDUCED BY 26 PERCENT; 
GENERAL SERVICE BY 39 PERCENT.  THE DECREASE IN PROJECT 
STAFF (71 PERCENT) REFLECTS SIGNIFICANT REDUCTION OF 
FIELD PROJECT OPERATIONS.  AVERAGE AGE AND LENGTH OF 
SERVICE FOR (NON-SENIOR) P POSITIONS HAS REMAINED FAIRLY 
CONSTANT OVER THE LAST DECADE: 42 YEARS ON APPOINTMENT, 
52 YEARS ON SEPARATION.  SEVENTY-NINE PERCENT OF FAO 
SENIOR STAFF AND 40 PERCENT OF FAO PROFESSIONAL STAFF 
WILL HAVE REACHED THE MANDATORY RETIREMENT AGE BY 2012. 
THE NUMBER OF WOMEN AT HEADQUARTERS HAS INCREASED FROM 21 
TO 29 PERCENT SINCE 1995.  ABOUT 60 PERCENT OF FAO STAFF 
WORK AT HEADQUARTERS; THE REST ARE IN THE FIELD OFFICES. 
 
¶25.  ANNUAL REPORTS OF THE ICSC AND UN JOINT STAFF 
PENSION BOARD TO THE GENERAL ASSEMBLY AND SUMMARY OF THE 
DECISIONS TAKEN (DOC 102/25) 
 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01601  04 OF 05  151123Z 
BACKGROUND: FOR INFORMATION: UNGA-APPROVED CHANGES WHICH 
IMPACT SALARY SCALES, PENSIONABLE REMUNERATION.  ALSO 
CHANGES TO GENERAL SERVICE AND OTHER LOCALLY RECRUITED 
CATEGORIES AND INCREASE IN EDUCATION GRANT. 
 
VI.  ORGANIZATIONAL MATTERS 
--------------------------- 
 
¶26.  AGENDA ITEM 26, METHODOLOGY FOR DETERMINATION OF 
EQUITABLE GEOGRAPHIC DISTRIBUTION (CL DOC 124/15) 
 
BACKGROUND:  INITIALLY A REQUEST BY THE LATIN AMERICAN 
GROUP AT THE LAST CONFERENCE TO EXAMINE OTHER 
METHODOLOGIES.  THE FAO HAS NOW PREPARED TWO ALTERNATIVES 
FOR THE FC TO CONSIDER. 
 
-- UNDER BOTH OPTIONS A BASE NUMBER OF POSTS (RATHER THAN 
THE POSTS FILLED AT ANY GIVEN TIME) WOULD BE USED FOR 
CALCULATIONS.  (THIS IS SIMILAR WITH UN METHODOLOGY). 
 
-- IN ADDITION, FAO PROPOSES TO INCREASE BY 341 THE 
NUMBER OF POSTS THAT WOULD BE COUNTED UNDER GEOGRAPHICAL 
DISTRIBUTION WHILE STILL EXCLUDING POSTS FUNDED FROM 
VOLUNTARY CONTRIBUTIONS, LANGUAGE STAFF AND THE DIRECTOR 
GENERAL. (COMMENT: IT IS UNCLEAR WHY THE POSTS WERE 
FORMERLY NOT COUNTED.  END COMMENT) 
 
-- THE "WEIGHTING" SYSTEM WHEREBY POINTS ARE GIVEN FOR 
HIGHER LEVEL POSITIONS WOULD BE ALTERED TO BE COMPARABLE 
WITH THAT OF THE UN AND UNESCO. THIS WOULD SIGNIFICANTLY 
REDUCE THE WEIGHT GIVEN TO HIGHER-RANKING POSITIONS (E.G. 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01601  04 OF 05  151123Z 
15 POINTS FOR THE DDG IN THE OLD SYSTEM WOULD BECOME ONLY 
4.3 POINTS IN THE NEW SYSTEM). 
 
COMMENT: THE FIRST OPTION INCREASES THE NUMBER OF 
"UNDERREPRESENTED COUNTRIES" SLIGHTLY.  THE SECOND OPTION 
(WHICH FACTORS IN POPULATION SIZE) DRAMATICALLY REDUCES 
THE NUMBER OF "OVER-REPRESENTED" COUNTRIES.  BOTH OPTIONS 
WOULD APPEAR TO BE DETRIMENTAL TO U.S. EFFORTS TO IMPROVE 
REPRESENTATION (WITH THE SECOND BEING ESPECIALLY SO, AS 
THE NUMBER OF OVERREPRESENTED COUNTRIES WOULD BE REDUCED 
FROM 77 TO 12), DESPITE THE FACT THAT THE NEW SYSTEM 
MIGHT ALSO MOVE THE U.S. CLOSER TO "EQUITABLE" 
REPRESENTATION. 
 
GUIDANCE REQUESTED:  USDEL CONSIDERS BOTH OPTIONS 
PROBLEMATIC FROM THE PERSPECTIVE OF U.S. REPRESENTATION. 
 
¶27.  AGENDA ITEM 27, PROGRESS REPORT ON THE ORACLE 
PROJECT (DOC 102/27) 
 
BACKGROUND: FOR INFORMATION 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ8918 
 
PAGE 01        ROME  01601  05 OF 05  151123Z 
ACTION IO-00 
 
INFO  LOG-00   MFA-00   AID-00   AMAD-00  CIAE-00  INL-00   EAP-00 
      EB-00    EUR-00   UTED-00  FDRE-01  FOE-00   TEDE-00  INR-00 
      L-00     DCP-01   NSAE-00  OES-00   OIC-02   CAEX-00  IRM-00 
      SS-00    TEST-00  FMP-00   SAS-00     /004W 
                  ------------------5600F4  151123Z /38 
R 151124Z APR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 9268 
USDA FAS WASHDC 2621 
USMISSION USUN NEW YORK 
AMEMBASSY ATHENS 
 
UNCLAS SECTION 05 OF 05 ROME 001601 
 
SIPDIS 
 
FROM FODAG 
 
STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK 
USDA/FAS FOR REICH AND HUGHES 
ATHENS FOR CLEVERLEY 
 
E.O. 12958:  N/A 
TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO
SUBJECT:  FAO 102ND FINANCE COMMITTEE PREVIEW 
 
VII.  OTHER MATTERS 
------------------- 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01601  05 OF 05  151123Z 
¶28.  WORKING METHODS OF FINANCE COMMITTEE, DATE  AND 
PLACE OF 103RD SESSION, ANY OTHER MATTERS.    TAMLYN 
 
                       UNCLASSIFIED 
 
> 
 2003ROME01601 - Classification: UNCLASSIFIED