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

UNCLAS SECTION 01 OF 08 ROME 004027 
 
SIPDIS 
 
FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME 
 
USDA FOR U/S PENN, U/S BOST, JBUTLER, MCHAMBLISS, LREICH, 
RHUGHES 
STATE FOR IO A/S SILVERBERG, DAS LAGON, DAS MILLER, 
IO/EDA, OES/O, OES/E, E, EB; 
USAID FOR EGAT, DCHA/OFDA, DCHA/FFP 
PASS USTR 
NEW DELHI FOR LEE BRUDVIG 
 
E.O. 12958: N/A 
TAGS: EAGR AORC EAID ETRD SENV KUNR FAO WFP
SUBJECT: REPORT OF THE 33ND FAO CONFERENCE, INCLUDING THE 
CONTIGUOUS 129TH AND 130TH FAO COUNCIL SESSIONS 
 
REF: (A) STATE 209955, (B) ROME 3976, (C) ROME 3980 
 
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Summary 
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¶1.  At the meetings of the Conference and Council of the 
UN Food and Agriculture Organization (FAO), held in Rome 
from 16 to 28 November 2005, member governments discussed 
international anti-hunger, food policy and agricultural 
trade issues, and the key institutional questions of the 
organization's budget, leadership and reform.  Secretary 
of Agriculture Mike Johanns led the U.S. delegation to 
the Conference. Among the significant developments at the 
Conference were: 
 
-- re-election of Jacques Diouf, uncontested candidate 
from Senegal, as Director General (DG) for a third and 
(by his own announcement) final term; 
 
-- approval of a budget appropriation of $765.7 million 
for the 2006-07 biennium -- a 2.2% nominal increase -- 
with the U.S. and Japan voting against the resolution; 
 
-- acceptance of the rationale and general principles of 
the DG's reform proposals, with phased and conditional 
implementation of restructuring for FAO headquarters and 
field offices; 
 
-- agreement on terms of reference and oversight 
mechanisms for the Independent External Evaluation (IEE) 
of FAO, with initiation of work subject to available 
voluntary contributions; 
 
-- election of the American-educated former Iranian 
Permanent Representative, Prof. Mohammad Noori-Naeini, as 
Independent Chair of the FAO Council; 
 
-- election or re-election of members to four FAO 
governing bodies (Council, Program Committee, Finance 
Committee, Committee on Constitutional and Legal Matters) 
and six members to the Executive Board of the World Food 
Program (WFP); and 
 
-- postponement until the November 2006 Council of 
consideration of a potentially contentious measure that 
would, among other things, authorize FAO to accord 
benefits to registered partners (including same-sex 
partners) of FAO employees, if the laws of the country of 
nationality of the FAO employee recognized the 
partnership. 
 
End summary. 
 
-------- 
Overview 
-------- 
 
¶2.  The 33rd biennial ministerial-level meeting of FAO 
member governments --- known as the FAO Conference -- was 
held in Rome from 19 to 26 November 2005.  A 3-day 
preparatory meeting of the organization's 49-member 
executive body, the FAO Council, preceded the Conference. 
An additional Council meeting that included newly elected 
members was held on 28 November, principally to elect new 
members and officers for various governing committees. 
The U.S. delegation included USDA Secretary Mike Johanns, 
U/S J.B. Penn, U/S Eric Bost, and Ambassador Tony Hall. 
Reftel contains the full delegation list.  This cable 
covers highlights of the FAO meetings that were of 
particular relevance and interest to the USG.  The full 
set of meeting documents is available from the Council 
and Conference links on FAO's home page, www.fao.org. 
 
---------------------------- 
Secretary Johanns' Statement 
 
SIPDIS 
---------------------------- 
 
¶3.  In his Conference plenary remarks, Secretary Johanns 
stressed the importance of agriculture in the upcoming 
WTO Ministerial, and the opportunity the Hong Kong 
meeting represents for developing countries to share in 
the benefits of expanded global trade.  He noted 
countries' uneven progress toward the Millennium 
Development Goal for poverty reduction, and pointed to 
the need to fully implement the Monterrey Consensus by 
creating a genuine partnership between developed and 
developing countries.  The Secretary highlighted 
establishment of the Millennium Challenge Account and USG 
commitments to increase its development assistance, with 
special focus on Africa and humanitarian emergencies. 
 
¶4.  Secretary Johanns emphasized that the developing 
world stands to gain enormously under the Doha Round, and 
that agricultural trade is a critical component in the 
negotiations -- hence the recent U.S. proposal to 
increase market access, reduce trade-distorting domestic 
support, and eliminate export subsidies.  He affirmed the 
U.S. commitment to helping developing countries 
participate in a liberalized trading regime by promoting 
worldwide science-based standards, such as those of the 
Codex Alimentarius Commission and the Internal Plant 
Protection Convention.  He urged that these two bodies 
receive adequate funding under FAO's budget. 
 
¶5.  The Secretary praised FAO's work to combat avian 
influenza.  He expressed concern that the DG's reform 
proposals seem to shift the organization's focus away 
from its traditional standard-setting activities and data 
collection and analysis, where FAO's unique advantage 
lies.  He stressed the need to view reform of FAO in the 
broader context of the Independent External Evaluation, 
and paced with the budget.  He reiterated the importance 
the U.S. attaches to FAO's mission and to the effort to 
bring developing countries into an expanding circle of 
trade and development. 
 
----------------------------------- 
Secretary Johanns' Other Activities 
 
SIPDIS 
----------------------------------- 
 
¶6.  On the margins of the FAO events, Secretary Johanns 
met with DG Diouf and had bilateral meetings with 
counterparts from Australia, Italy, Iraq, Mexico, and the 
European Commission.  He spoke to a gathering of American 
employees of the Rome-based UN agencies, and had the 
opportunity to meet other delegation heads at a reception 
hosted by Ambassador Hall.  The Secretary and Ambassador 
Hall attended an audience for agricultural ministers with 
Pope Benedict XVI.  He met other senior Vatican officials 
during a dinner hosted by the U.S. Ambassador to the Holy 
See.  A press conference organized by the U.S. Mission in 
coordination with Embassy Rome provided a setting for the 
Secretary to convey USG messages to Italian and 
 
SIPDIS 
international media.  One article of note by Associated 
Press, which garnered about 100 headlines in worldwide 
media, quoted Sec. Johanns on the role of economic 
relationships with developing countries in the fight 
against hunger. 
 
--------------------------- 
Ambassador Hall's Statement 
--------------------------- 
 
¶7.   Earlier, during the 129th Council discussion on 
FAO's Program of Work and Budget (PWB), Ambassador Hall 
stressed that the U.S. remains a strong supporter of FAO 
and its mission, while underscoring the U.S. budget 
position of Zero Nominal Growth for the 2006-07 biennium. 
Observing that organizations should focus on those areas 
where they can have the most impact, he emphasized that 
FAO could make the greatest contribution to food security 
through its normative work, including standard-setting 
bodies, comprehensive data on agricultural, forest and 
fishery products, efforts to control pest outbreaks and 
animal diseases, and assistance in recovery from 
disasters.  Having just returned from a visit to 
Guatemala (ref C), he praised FAO's work there. 
 
¶8.  Turning to the budget level for the upcoming 
biennium, the Ambassador said the level should be scaled 
to members' ability to pay.  He noted that 64 members 
were currently in arrears.  He explained that these 
circumstances made a growth budget unrealistic, and 
called on member states to be realistic and focus on 
efficiencies and increased prioritization in projecting 
expenditures and its program of work for the 2006-07 
biennium. 
 
------------------------ 
Other Substantive Issues 
------------------------ 
 
¶9.  FAO and the WTO Negotiations:  On the eve of the 
Council, November 15, DG Diouf chaired a briefing for 
permanent representatives to discuss preparations for the 
WTO ministerial.  He outlined key aspects of FAO's 
support to the negotiations: (1) organization of regional 
workshops on technical issues, (2) launching of a series 
of FAO Trade Policy Technical Notes and Policy Briefs, 
(3) publication of "The State of Agricultural Commodity 
Markets," (4) strengthening of the FAO Liaison Office in 
Geneva, (5) enhancement of the multilingual website on 
agricultural trade (www.fao.org/trade), and (6) ongoing 
trade-related assistance to developing countries on 
compliance, technical standards, and WTO-consistent 
agricultural development and intellectual property 
policies. 
 
¶10.  International Conference on Agrarian Reform and 
Rural Development (ICARRD):  The Council supported the 
holding of ICARRD in Porto Alegre, Brazil, in March 2006. 
Themes that emerged from the discussion included greater 
south-south sharing of experiences, learning from both 
failed and successful experiences, and the importance of 
good governance and other factors, especially markets for 
high value products, the availability of finance, and 
programs designed to benefit women.  The U.S. delegation 
stressed: (a) secure property rights and access to 
finance, (b) supportive policy frameworks, (c) applied 
science and technology, (d) robust domestic markets and 
international trade opportunities, (e) enhanced human 
capital, and (f) protections for the vulnerable.  Brazil 
is contributing $450,000 to support ICARRD. 
 
¶11.  Avian Influenza:  A presentation highlighting FAO's 
response to the threat of avian influenza (AI) attracted 
great interest and expressions of support for FAO's 
pivotal role in combating AI.  See ref B for details. 
 
¶12.  Special Event on Gender Equality:  A special round 
table on gender was convened to raise awareness of the 
importance of gender equality in access to productive 
resources.  The briefing highlighted that gender 
inequality is impeding the attainment of Millennium 
Development Goal 1, especially in agricultural 
production, access to land and microcredit.  FAO's Gender 
and Development Plan of Action (GAD PoA) aims to work 
with countries to achieve equality through improved 
access to adequate nutrition and food, natural resources, 
markets, credit, and technology, and support of agrarian 
reform.  In his intervention, U/S Bost congratulated FAO 
on its implementation of the GAD PoA report for 2002- 
2007, and commended the organization for an active and 
productive gender and development program. 
 
¶13.  Special Event on Water for Agriculture in Africa, 
the Near East and Small Island Developing States (SIDS): 
A special round table was convened to review action taken 
to improve water management for agriculture and identify 
priorities for action in the short and medium term.  It 
consisted largely of statements by developing-country 
delegates, with little meaningful discussion.  DG Diouf's 
call for investment in large irrigation schemes at the 
opening was not echoed in most subsequent interventions. 
 
¶14.  Awards:  Among the honorees were an American FAO 
field officer who worked in Cambodia, two Wall Street 
Journal reporters, and the Agreement on the International 
Dolphin Conservation Program (AIDCP).  Ambassador Hall 
took the floor to acknowledge the accomplishments of the 
awardees, making special note of the success of the AIDCP 
in sharply reducing dolphin mortality in tuna fisheries. 
 
¶15.  Keynote:  Rev. David Beckmann, President of "Bread 
for the World," a U.S. grassroots citizen movement, 
delivered the McDougall Memorial Lecture on the first day 
of the Conference.  Beckmann spoke about building 
political will and developing a global alliance to end 
hunger. 
¶16.  Anniversary Declaration:  The Conference adopted a 
declaration marking the 60th Anniversary of FAO.  The 
text was based on a draft prepared by the Secretariat in 
October, and further refined through negotiations among 
permreps before and during the Conference.  The 
declaration calls on FAO "to redouble its efforts to 
translate the vision of its founders into further actions 
to ensure humanity's freedom from poverty and hunger...." 
 
¶17.  Triennial Comprehensive Policy Review (TCPR) 
Resolution:  Switzerland and the UK, later joined by 
Brazil, Belgium, Canada, Dominican Republic, Germany, the 
Netherlands, New Zealand and Norway as cosponsors, gained 
approval for a resolution that requests FAO to take 
appropriate actions to implement UNGA Resolution 59/250 
(which calls for strengthening of the operational 
activities for development of the UN System, particularly 
at the country level). 
 
----------------------------------- 
Re-election of the Director General 
----------------------------------- 
 
¶18.  DG Jacques Diouf, the sole candidate, sought a third 
term of office.  He was re-elected in a secret ballot 
with 137 votes in favor, 9 against, and 19 abstentions. 
During remarks after his re-election, the DG made it 
known that this would be his final term. 
 
¶19.  Comment:  Many present interpreted the significant 
number of negative votes and abstentions as a signal of 
dissatisfaction, primarily from OECD countries, with the 
candidate's leadership and with his quest for re-election 
in violation of the spirit (if not the letter) of the DG 
term limits that were adopted by the previous Conference 
but that do not take effect until 2006.  End comment. 
 
------------- 
Reform of FAO 
------------- 
 
¶20.  The DG's reform proposals emerged as one of the most 
difficult and time-consuming issues on the Conference 
agenda.  The DG's proposals had been presented to members 
in a series of three documents released since September. 
Many members welcomed the spirit of these proposals and 
some of the common-sense efficiency and streamlining 
measures they contained.  Among the more thoughtful 
members, however, there was concern that some of the 
measures required a more careful deliberative process 
involving the FAO governing bodies, that some had 
significant budget implications, and that some would 
prejudge the findings of the Independent External 
Evaluation. 
 
¶21.  Nevertheless, the DG remained insistent that his 
reforms be adopted as a single package, and he worked 
openly through surrogates among the G-77 countries to 
polarize the discussion.  Most developed countries 
advocated a phased approach that would defer the most 
sweeping and costly reforms until interim results from 
the IEE would be available.  The Nordics took a stance 
that was more favorable to the DG, in part because they 
felt they instigated the latter's proposals during a 
Stockholm ministerial meeting with Diouf in the summer of 
¶2005. 
 
¶22.  To work through the impasse, the Independent Chair 
of the Council headed a working group that met for long 
hours late into the night.  The U.S. delegation sought to 
craft a face-saving compromise whereby the DG's reforms 
would be accepted in principle, but the sweeping 
restructuring of FAO Headquarters and the creation of 
numerous new subregional posts would be deferred pending 
results of pilot studies and the IEE.  The intransigence 
of leading G-77 delegates prolonged the debate, but 
consensus was finally reached on a resolution that, inter 
alia: 
 
-- welcomed the DG's reform initiatives; 
 
-- noted that reforms could be initiated regardless of 
budget level, and the DG's intention to seek 
extrabudgetary support to meet part of the transition 
costs; 
 
-- looked forward to the IEE results; 
 
-- expressed general support for the rationale and 
guiding principles of the DG proposals; 
 
-- supported streamlining business processes; 
 
-- endorsed a new Program of Work and Budget (PWB) 
chapter structure; 
 
-- requested as a first stage the implementation of 
decentralization proposals in one region (presumably 
Africa) and the creation of one subregional office in 
another region, with a future Council to decide on 
further implementation; 
 
-- authorized a first stage in implementation of 
headquarters restructuring, but without an increase in 
the number of departments; and 
 
-- asked the DG to consult with members about the 
possible need for an extraordinary Council session in 
June-July 2006. 
 
-------------------------------------- 
Program of Work and Budget for 2006-07 
-------------------------------------- 
 
¶23.  Setting the budget level for the coming biennium was 
the other major contentious issue before the Conference. 
Initially, delegates had staked out a range of positions, 
with nearly all G-77 countries calling for a Real Growth 
budget.  Many OECD countries advocated a scenario between 
Zero Nominal Growth (ZNG) and Real Growth.  The USG 
stressed that only ZNG was a realistic scenario, given 
members' difficulties in meeting current assessments, as 
evidenced by pervasive late payments and mounting 
arrears.  Japan made a strong plea for a less-than-ZNG 
budget. 
 
¶24.  Discussions on the budget took place in a working 
group chaired by the Armenian permrep.  Sometime after 
midnight on Thanksgiving Night the group reached a 
conclusion that appeared acceptable to all members except 
the U.S. and Japan, viz., a total budgetary appropriation 
of $765.7 million.  This represented a 2.2% expenditure 
increase over the current biennium.  Of the $16.6 million 
in increased expenditure, $10.6 million would be budgeted 
for security costs that were accommodated in the 2004-05 
budget, but which the Secretariat claimed could not be 
absorbed in 2006-07.  Under this scenario the Secretariat 
claimed total programs would decrease by $38.6 million. 
With the addition of $14.1 million for amortization of 
after-service medical coverage (ASMC) and minus 
$6 million in anticipated miscellaneous income, the total 
assessments to member states would be $773.8 million, a 
nominal increase of 2.6%. 
 
¶25.  The U.S. and Japan had offered to support up to 
$2.8 million in additional security costs for the 2006-07 
biennium, as the Secretariat indicated this was the 
amount it might not be able to absorb in the 2004-05 
biennium.  Other member states were not swayed, and the 
budget resolution was brought to a vote during the final 
Conference session on November 26.  The resolution passed 
with 117 members voting in favor, 2 voting against (U.S. 
and Japan), and 1 abstention (Argentina). 
 
------------------------------------- 
Independent External Evaluation (IEE) 
------------------------------------- 
 
¶26.  The Council (and subsequently the Conference) 
endorsed the report of the Intersessional Working Group 
(ISWG) that had been making preparations for the IEE 
since January 2005.  The ISWG had concluded that "all 
members have become further convinced that a fully 
independent, impartial and professional IEE can make a 
unique contribution in building a more effective FAO." 
In accepting the ISWG report, the Council: 
 
-- urged all members to contribute funds for the IEE; 
 
-- decided that the IEE be initiated as soon as possible, 
subject to availability of funds, in order that the 
evaluation report could be completed in time for the 
November 2007 Council and Conference; 
 
-- adopted the ISWG's recommendations regarding (1) terms 
of reference for a Council Committee (CC) to oversee the 
entire evaluation process, (2) terms of reference for the 
IEE, and (3) definition of an appropriate supporting role 
of the Secretariat; 
 
-- recognized that the Inception Report will provide an 
occasion to refine the terms of reference and budget; and 
 
-- appointed Brazilian Ambassador Flavio Perri (who 
chaired the ISWG) as chairperson for the CC that would 
oversee the IEE process. 
 
¶27.  Comment:  The ISWG has been noteworthy for the 
degree of consensus and buy-in achieved among all members 
on the need for an IEE and on a process to carry it out. 
That consensus held together during the Council and 
Conference, but was severely tested during discussions of 
the DG's reform proposals, when most OECD countries 
affirmed that the IEE should come before a major 
reorganization, while the G-77 generally wanted to give 
the DG a green light for restructuring FAO, with the IEE 
to provide insights later on.  The resolution on reform 
that was finally approved by the Conference (paras 20-22 
above) sought to bridge these different views.  An 
important early task for the CC therefore will be to 
decide how the IEE terms of reference should be amended 
or adapted so as to provide interim IEE input to the 
governing bodies on aspects of the DG's reforms that will 
soon be underway.  The other major concern for the CC 
will be to raise the necessary funds to launch the IEE 
promptly.  Initial USG contributions to the IEE process 
amounting to $250,000 have been approved and were 
announced.  The total IEE cost is estimated at $4.3 
million.  End comment. 
 
------------------------------------ 
Independent Chair of the FAO Council 
------------------------------------ 
 
¶28.  The other major election during the Conference was 
that for the Independent Chair of the Council.  There 
were two candidates: 
 
-- Ambassador Mohammad Noori-Naieni (Iran), a well-known, 
well-liked and respected permrep with a Ph.D. from 
Cornell and over a decade of experience in Rome with FAO, 
WFP and IFAD; and 
 
-- Prof. Roelof Rabbinge (Netherlands), a respected 
academic and agricultural expert from a country that has 
been a major voluntary contributor to FAO's work, but an 
individual who had limited previous experience with the 
organization or the permrep community in Rome. 
 
In the end, Noori squeaked by with 78 votes, compared to 
Rabbinge's 77 votes. 
 
¶29.  Comment:  Clearly, Noori's Iranian nationality gave 
many members pause, but many of those who voted against 
him as signal of distaste for the current regime in 
Tehran did not appear displeased that he won.  This was a 
situation where one candidate's personal charisma and 
knowledge of the organization counteracted his 
nationality.  After the election, Noori sought to 
reassure members by reiterating that he would be an 
Independent Chair who would indeed be independent from 
the Secretariat and from his own government.  U.S. 
delegates have been able to work well with Noori in the 
past, and expect that he will be an effective consensus- 
builder in his new role.  End comment. 
 
--------------------------- 
Other Institutional Matters 
--------------------------- 
 
¶30.  Committee elections:  The Conference elected chairs 
and members of several governing bodies and committees: 
-- Program Committee: UK (Chair), Afghanistan, Australia, 
Canada, Dominican Republic, India, Jamaica, Libya, 
Nigeria, Philippines, and South Africa. 
 
-- Finance Committee: Pakistan (Chair), Cote d'Ivoire, 
Denmark, Germany, Italy, Japan, Paraguay, Peru, Qatar, 
Italy, USA, and Zimbabwe. 
 
-- Committee on Constitutional and Legal Matters (CCLM): 
Belgium, Czech Republic, Gabon, Guatemala, Philippines, 
Syria, USA. 
 
-- World Food Program Executive Board (6 of 36 members 
selected): Algeria, Austria, Colombia, Slovenia, 
Switzerland, and Tanzania. 
 
¶31.  The Council also took action on two matters deferred 
from the June 2005 Council: 
 
-- Personal status for Purposes of Staff Entitlement: 
The CCLM had recommended that the Council ask the DG to 
adopt an administrative directive consistent with the 
policy of the UN in New York that determines personal 
status for the purpose of staff entitlement by reference 
to the law of nationality of the staff member concerned. 
This would, inter alia, allow same-sex partners of some 
FAO employees to receive staff benefits as spouses.  When 
it became evident in preliminary discussions that this 
measure would be controversial, the Independent Chair of 
the Council decided to defer the matter.  The Council 
requested the CCLM to review further some aspects of the 
proposal and report back to it at its regular Session in 
November 2006.  The Secretariat has advised that it 
expects the International Labor Organization (ILO) 
Administrative Tribunal to consider this issue in the 
context of FAO's existing regulations prior to November 
2006, in which case further Council action might not be 
required. 
 
-- Agreement between FAO and the World Intellectual 
Property Organization (WIPO):  The Council approved the 
revised and shortened draft agreement submitted by the 
WIPO Secretariat.  The USG had questioned an earlier 
draft that was perceived to have mischaracterized the 
nature of intellectual property in the agricultural 
context.  In its revised form the agreement will help 
reinforce links between FAO's work on intellectual 
property (i.e., in plant genetic resources) and the 
expertise available at WIPO. 
 
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Comment 
------- 
 
¶32.  The November 2005 FAO Council and Conference 
broached a number of contentious and difficult issues. 
Even if the outcome was not fully consonant with USG 
objectives or desires in every case, the discussions and 
votes allowed the U.S. and like-minded member states to 
lay down clear markers as the organization moves into a 
new biennium: 
 
-- On FAO leadership, the Director General gained his re- 
election, but the significant number of no votes and 
abstentions made it clear that many of the top donors 
were dissatisfied and their support cannot be taken for 
granted. 
 
-- On the budget, the conservative stance of a number of 
OECD Group countries underscored concerns of contributors 
about continued budgetary discipline and the need to 
address mounting arrears. 
 
-- On FAO reform, the consensus resolution that emerged 
accepted concepts and features of the DG's proposals in a 
phased and incremental approach, while reaffirming 
members' prerogatives to scrutinize major restructuring 
of the headquarters and field posts. 
-- On the IEE, the need for a comprehensive evaluation 
was broadly affirmed, and the importance of IEE findings 
in steering future reforms of FAO explicitly recognized. 
¶33.  Setting FAO on the path to reform has been time- 
consuming and difficult, but the process is now well 
underway.  As one of the prime movers behind the IEE, the 
U.S. has been able to exercise a leadership role in 
reform.  Further leadership and deft management will be 
required to keep the process on track. 
 
CLEVERLEY