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Viewing cable 06USUNNEWYORK908, UN REFORM: G-77 WINS FIFTH COMMITTEE VOTE IN

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Reference ID Created Released Classification Origin
06USUNNEWYORK908 2006-05-03 20:40 2011-08-26 00:00 UNCLASSIFIED USUN New York
VZCZCXYZ0002
PP RUEHWEB

DE RUCNDT #0908/01 1232040
ZNR UUUUU ZZH
P 032040Z MAY 06
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC PRIORITY 8902
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY
UNCLAS USUN NEW YORK 000908 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KUNR UNGA
SUBJECT: UN REFORM: G-77 WINS FIFTH COMMITTEE VOTE IN 
SHOWDOWN OVER MANAGEMENT REFORM MEASURES 
 
1.  SUMMARY/COMMENT: The Fifth Committee, meeting in formal 
session April 28, voted 108 to 50, with 3 abstentions, to 
support adoption of a draft resolution introduced April 21 by 
the G-77 and China that attempts to impeded ongoing 
Secretary-General efforts to pursue management reform in the 
 
SIPDIS 
UN.  The U.S., joined by 49 other states who collectively are 
assessed 86.692 per cent of the regular UN budget, opposed 
adoption of the draft text.  The language in the G-77 
resolution (A/C.5/60/L.37; available on www.ods.un.org) 
provides no positive expressions of support for management 
improvements or for the SYG's initiatives.  By repeatedly 
reaffirming the existing rules, regulations, and resolutions 
on budget and administration, the text sends a clear signal 
that new approaches cannot be considered, thus denying the UN 
the ability to benefit from modern management practices.  The 
discretion of the SYG and other UN officials to ensure 
fairness of treatment is effectively removed, and proposed 
efficiencies are stymied.  The SYG's proposals to achieve 
greater transparency are watered down to suggestions on ways 
to disseminate information that already is widely available. 
The text repeatedly reaffirms and reasserts the primacy of 
the General Assembly in deciding on all aspects of the UN's 
management and administration, thereby signaling that the SYG 
has limited flexibility to manage the Organization. 
 
2.  SUMMARY/COMMENT (continued): Perhaps most importantly, 
the Fifth Committee's April 28th vote contravenes a 
long-standing Committee practice, established in Resolution 
41/213 (1986), to seek the "broadest possible agreement" for 
Committee decisions on budgetary matters.  The G-77's 
insistence on bringing its draft resolution before the Fifth 
Committee absent consensus may be indicative of more 
contentious times ahead as Members begin to consider whether 
to grant the UN additional spending authority beyond the $950 
million approved in December 2005 (A/60/246). It appears the 
G-77 is preparing to face down those linking progress on UN 
reform to the provision of finances needed to run the UN. 
END SUMMARY/COMMENT. 
 
 
RUN-UP TO THE VOTE 
------------------ 
 
2.  After several weeks of lengthy and contentious 
negotiations in the Fifth Committee that began April 12 on a 
coordinator's draft resolution incorporating language 
proposals from all delegations dealing with the 
Secretary-General's March 7 report (A/60/692), the Group of 
 
SIPDIS 
77 and China provoked a crisis April 19 by introducing its 
own draft resolution (A/C.5/60/L.37) that took issue with 
several key SYG proposals on UN efficiency, the future role 
of the Deputy Secretary-General, and governance issues.  The 
Group's proposal modified or eliminated more positive 
language proposed by the U.S., EU, and others.   Repeated EU, 
Japanese, CANZ, and U.S. attempts to resume consideration of 
the coordinator's draft were rejected by the South African 
delegate representing the G-77, who insisted on negotiations 
based solely on the Group's text.  The Group's threats to put 
its text before the Fifth Committee for formal adoption, 
despite the absence of consensus, prompted renewed 
negotiations April 26.  While several minimal language 
changes to the G-77 text were achieved, consensus on the 
SYG's proposals concerning improved efficiency in budget 
planning and implementation (Proposal #16), improved 
interaction between the Secretariat and Member States 
(Proposal #20), and reform of key governance structures 
(Proposal # 21), could not be reached. In addition, 
paragraphs elsewhere in the G-77 text would have the effect 
of postponing the Secretary-General's initiatives to pursue 
outsourcing and install a freedom of information regime in 
the UN. Also of concern was a paragraph calling on the 
Secretary-General to present proposals for increasing the 
 
SIPDIS 
representation of "developing countries" in the staff of the 
UN. 
 
3.  Tensions were raised further on April 26, when Ambassador 
Kumalo of South Africa made the following points in a press 
conference at the UN: 
 
-- just because the U.S., UK and Japan pay more money than 
other member states, the UN is not a private corporation in 
which they are entitled to a greater say; 
 
-- the spending cap imposed during the December 2005 debate 
over the budget is a sword hanging over us right now that we 
(i.e., the G-77) will fight; 
 
-- the UK, EU and U.S. are the ones putting this Organization 
in a crisis, but they are trying to blame the crisis on us. 
Just because they have more money, they are trying to force 
us to give up our rights as UN members, or they will withhold 
money; 
 
 
 
-- we are not opposed to reform, but the UN is not based on 
who has money and who does not.  It's like a shake-down; 
 
-- we haven't called for a vote; we've called for consensus. 
It's up to those who don't want to lend consensus to tell us 
what they want; 
 
-- we are being forced to give up our rights under the 
Charter, or face not having an Organization. 
 
4.  On April 27, G-77 Ambassador Kumalo introduced his 
Group's text (A/C.5/60/L.37/Rev.1) in a formal meeting of the 
Fifth Committee, seeking the Committee adoption without a 
vote in accordance with the rules of procedures of the 
General Assembly.  Ambassador Bolton, Austrian PermRep 
Pfanzelter (on behalf of the EU), Japanese Ambassador Ozawa, 
and New Zealand PermRep Banks (on behalf of CANZ) all 
protested that the G-77 text did not enjoy consensus support. 
 Ambassador Pfanzelter, speaking on behalf of the EU, 
indicated that 46 countries, including the U.S., Japan, and 
CANZ, had endorsed a letter addressed to GA President 
Eliasson (full text - see para 11) underscoring that the G-77 
draft resolution lacked consensus and expressing a readiness 
to work to achieve a mutually agreeable text. 
 
5.  Also on April 27, the Secretary-General sent a letter to 
GA President Eliasson (full text - see para 12) suggesting 
that the proposals on improving interaction between the 
Secretariat and Member States (Proposal #20) and reforming 
 
SIPDIS 
governance structures (Proposal #21) be "set aside" to 
facilitate agreement on other elements of the draft 
resolution.  The SYG's proposal prompted renewed discussion 
among Fifth Committee members during the evening of April 27 
much of the day on April 28.  Despite this major concession 
from the Secretary-General, the G-77 was still not willing to 
back away from its position.  Instead, Ambassador Kumalo 
provoked additional objections when he proposed language to 
prohibit any possible mention or consideration of governance 
proposals in any future document or UN forum, effectively 
rejecting the SYG's efforts at compromise. 
 
THE VOTE 
-------- 
 
6.  EU Chair Pfanzelter and G-77 Chair Kumalo engaged without 
success in last-minute informal negotiations throughout the 
day on April 28 in an attempt to reach consensus.  Early in 
the evening, when it became apparent that language agreeable 
to all parties, including the U.S., could not be finalized, 
Kumalo reiterated his request, first pronounced April 26, for 
Fifth Committee adoption by consensus of the draft G-77 text. 
 EU Chair Pfanzelter, supported by the U.S., Japan, CANZ, and 
other signatories of the EU letter to GA President Eliasson, 
requested a recorded vote.  The result:  108 members voted to 
adopt the G-77 draft resolution; 3 states abstained (Armenia, 
Norway, Uganda); and, 50 states opposed (U.S., Japan, 
Germany, UK, France, Italy, Canada, Spain, Republic of Korea, 
Netherlands, Australia, Switzerland, Belgium, Sweden, 
Austria, Denmark, Finland, Greece, Portugal, Israel, Poland, 
Turkey, Ireland, New Zealand, Czech Republic, Hungary, 
Slovenia, Luxembourg, Romania, Slovakia, Cyprus, Ukraine, 
Croatia, Iceland, Lithuania, Serbia and Montenegro, Bulgaria, 
Latvia, Malta, Estonia, Former Yugoslav Republic of 
Macedonia, Albania, Andorra, Liechtenstein, Bosnia and 
Herzegovina, Georgia, Monaco, San Marino, Palau, and Republic 
of Moldova). 
 
7.  Ambassador Bolton gave an explanation of the U.S. 
position (full text in para. 13) before the vote, as did many 
other speakers.  Bolton voiced respect for the tenacity with 
which the Group of 77 and China argued their position. 
Bolton also said he respected the good faith in which the 
parties conducted negotiations in an effort to reach 
consensus, as well as the fact that G-77 members stuck to 
their position.  However, he also noted that, "absent 
top-to-bottom management reform, the United Nations will 
continue to be ill-equipped to meet the current demands that 
we, as Member States, place upon the Organization."  The 
United States, he said, was committed to pursuing necessary 
management reforms to ensure that the United Nations remains 
an effective, efficient, transparent and accountable 
Organization.  Ambassador Bolton then read the text of the 
letter sent April 27 to GA President Eliasson and listed the 
names of the 46 states that had signed it.  Bolton further 
indicated the U.S. would vote against the G-77 text. 
 
8.  Austrian PermRep Pfanzelter, on behalf of the EU, 
expressed regret that his last-minute negotiations with G-77 
Chair Kumalo had failed to produce an acceptable text. 
Pfanzelter voiced concern that the long-standing tradition of 
the Fifth Committee to act on consensus documents was being 
 
 
violated.  Pfanzelter said he stood ready to continue 
discussions in an attempt to bridge existing differences, but 
that "it's unfortunate this is not acceptable for the G-77. 
We deplore that."  Japanese PermRep Oshima also expressed 
concerns that the consensus principle was being violated. 
Oshima said there were no winners in the vote, "and if there 
are losers, it is reform of the Organization.  It (the vote) 
is likely to be interpreted as rejection, or at best 
deferral, of these necessary reforms."  Speakers from the UK, 
New Zealand, Germany, Belgium, Slovakia, and the Netherlands 
echoed similar themes, including expressions of concern that 
the debate had become so polarized. 
 
9.  Following the vote, G-77 Chair Kumalo reiterated his 
Group's support for UN reform and for making the UN a better 
Organization, but only through an inclusive approach that 
involved all members.  "We in the Group of 77 and China 
believe in the right of every Member State to have an equal 
say in the decision-making of this Organization ... This 
right for us is not dependent on the financial contributions 
of Member States to the budget of the Organization."  That 
was why the Group had been so vocal in seeking to protect the 
nature of the Organization, particularly the oversight role 
of the General Assembly.  Brazilian PermRep Sardenberg said 
his government remained committed to management reform that 
would improve the UN's performance in areas including 
development, peace, security, and human rights.  Egyptian 
PermRep Abdelaziz said the goal of all delegations should be 
to create a more credible, efficient and effective United 
Nations.  He said that Member States needed to work 
constructively and in cooperation with others, regardless of 
their level of development and regardless of how much they 
contributed to the Organization. 
 
NEXT STEPS 
---------- 
 
10.  The resolution adopted by the Fifth Committee on April 
28 now will be sent to the General Assembly for its 
consideration and final action.  The GA President's Office 
has advised USUN privately that no action is contemplated 
until after PGA Eliasson returns to New York, likely the week 
of May 8. 
 
LETTER TO GA PRESIDENT 
---------------------- 
 
11.  Text of April 27, 2006 Letter Sent by 46 Signatory 
Countries to GA President Eliasson: 
 
Begin text: 
 
Excellency, 
 
We wish to bring to your attention an urgent problem that has 
arisen in the context of management reform.  You are well 
aware of the background to our negotiations on the 
Secretary-General's report, "Investing in the United Nations: 
 
SIPDIS 
for a stronger Organization worldwide," and the difficult 
path they have pursued.  You know the depth of feeling on the 
issues and the many efforts that have been made to find 
agreement. 
 
There is now a resolution tabled by the Group of 77 and China 
in the Fifth Committee which the Group of 77 and China 
believes could be the basis for consensus.  We have to 
underline that this draft resolution is not acceptable to us. 
 By convention, those who propose resolutions in the Fifth 
Committee do so when they believe conditions for adoption 
without dispute have been established.  This is not the case 
now. 
 
We stand ready to work for true consensus on a mutually 
agreeable text.  We are prepared to conclude our discussions 
in the Fifth Committee by reporting back to you that we were 
unable to reach a consensus.  Forcing a decision on a 
non-consensual resolution would trigger a vote.  This would 
leave us no alternative but to vote against the Group of 77 
and China draft resolution.  We are concerned that a vote 
under these circumstances could entail consideration 
disadvantages for the United Nations, for this proposal and 
for the budget process. 
 
Therefore, we hope that you could continue to assist us in 
taking this forward in a way which permits us to find 
consensus on this important issue. 
 
(Signatories - Permanent Representatives of: Albania, 
Andorra, Australia, Austria, Belgium, Bosnia and Herzegovina, 
Bulgaria,  Canada Croatia, Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Iceland, 
Ireland, Israel, Italy, Japan, Latvia, Liechtenstein, 
 
 
Lithuania, Luxembourg, Malta, Monaco, Netherlands, New 
Zealand, Poland, Portugal, Republic of Korea, Romania, San 
Marino, Serbia and Montenegro, Slovakia, Slovenia, Spain, 
Sweden, Switzerland, Former Yugoslav Republic of Macedonia, 
Turkey, UK, U.S.) 
 
End text. 
 
SECRETARY-GENERAL'S LETTER TO FIFTH COMMITTEE CHAIRMAN 
 
SIPDIS 
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12.  Text of April 27, 2006 Letter from SYG Annan to Fifth 
Committee Chair Ashe: 
 
Begin text: 
 
Dear Mr. Chairman, 
 
Over the last several days, I had the opportunity to discuss 
with Member States my report on "Investing in the United 
Nations: for a stronger Organization worldwide." 
 
It is apparent that there are some concerns related to 
proposals 20 and 21.  While my sole purpose was to propose 
more efficient working methods for the intergovernmental 
process, I recognize that these two proposals have provoked 
concern and resistance. 
 
Certainly they should not be allowed to stand in the way of 
consensus or lead to a departure from the valuable and 
well-established practice of avoiding divisive votes on 
budgetary matters.  Neither should they be an impediment to 
achieving progress on other aspects of reform.  Accordingly, 
the Committee may wish to set aside proposals 20 and 21. 
 
With this contentious issue set aside, I would urge the 
Committee to proceed quickly to an agreed resolution adopted 
by consensus that allows the programme of work on the 
management reforms to continue without delay. 
 
Please accept, Mr. Chairman, the assurances of my highest 
consideration. 
 
Kofi A. Annan 
 
End text. 
 
U.S. EXPLANATION OF VOTE 
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13.  Text of Ambassador Bolton's April 28 remarks: 
 
Begin text: 
 
Thank you, Mr. Chairman. 
 
First, I would like to say, on behalf of the United States, 
that even though we disagreed with the L.37 text, that we 
respect the position taken by the G-77 and China.  We respect 
the tenacity with which they argued for their position.  We 
respect the good faith in which they conducted negotiations 
in an effort to reach consensus.  And we respect the fact 
that they stuck to their position.  It is an honorable thing 
to do. 
 
Mr. Chairman, during the course of our discussions this week, 
a number of countries drafted a letter to the President of 
the General Assembly, Ambassador Eliasson.  I would like to 
read that letter, dated April 27: 
 
Excellency, 
 
We wish to bring to your attention an urgent problem that has 
arisen in the context of management and reform.  You are well 
aware of the background to our negotiation on the 
Secretary-General's report, "Investing in the United Nations: 
 
SIPDIS 
for a stronger Organization worldwide," and the difficult 
path they have pursued.  You know the depth of the feeling of 
the issues and the many efforts that have been made to find 
agreement. 
 
There is now a resolution tabled by the Group of 77 and China 
in the Fifth Committee, which the Group of 77 and China 
believes could be the basis for consensus.  We have to 
underline that this draft resolution is not acceptable to us. 
 By convention, those who propose resolutions in the Fifth 
Committee do so when they believe conditions for adoption 
without dispute have been established.  That is not the case 
now. 
 
We stand ready to work for true consensus on a mutually 
agreeable text.  We are prepared to conclude our discussions 
 
 
in the Fifth Committee by reporting back to you that we were 
unable to reach a consensus.  Forcing a decision on a 
non-consensual resolution would trigger a vote.  This would 
leave us no alternative but to vote against the Group of 77 
and China's draft resolution. 
 
We are concerned that a vote under these circumstances could 
entail considerable disadvantages for the United Nations, for 
this proposal and for the budget process.  Therefore, we hope 
that you could continue to assist us in taking this forward 
in a way which permits us to find consensus on this important 
issue. 
 
The letter, Mr. Chairman, was signed by the representatives 
of the following governments: 
Albania, Andorra, Australia, Austria, Belgium, Bosnia and 
Herzegovina, Bulgaria, Canada, Croatia, Cyprus, the Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, 
Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, the 
Netherlands, New Zealand, Poland, Portugal, Republic of 
Korea, Romania, San Marino, Serbia and Montenegro, Slovak 
Republic, Slovenia, Spain, Sweden, Switzerland, the Former 
Yugoslav Republic of Macedonia, Turkey, the United Kingdom, 
and the United States. 
 
Mr. Chairman, absent top to bottom management reform, the 
United Nations will continue to be ill-equipped to meet the 
current demands that we, as Member States, place upon the 
Organization.  The United States is committee to pursuing 
necessary management reforms to ensure that the United 
Nations remains an effective, efficient, transparent, and 
accountable Organization.  As such, the United States is 
joined by many other states in voting "no" against the 
resolution tabled by the Group of 77 and China. 
 
Thank you, Mr. Chairman. 
 
End text. 
 
BOLTON