VZCZCXYZ0014
OO RUEHWEB

DE RUCNDT #0943/01 1301903
ZNR UUUUU ZZH
O 101903Z MAY 06
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8965
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY

UNCLAS USUN NEW YORK 000943 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC UNGA KUNR
SUBJECT: UN REFORM: AMB. BOLTON CALLS FOR REVIEW OF 
CONSENSUS BUDGETING AS G-77 WINS GA VOTE ON MANAGEMENT 
REFORM 
 
REF: USUN 908 
 
¶1. SUMMARY: Despite GA President Eliasson's last-minute 
efforts to devise an alternative to a formal vote on the 
issue, the General Assembly voted 121 to 50 (with 3 
abstentions) on May 8 to adopt the draft resolution on UN 
management reform proposed by the Group of 77 and China that 
was also approved by a vote April 28 in the Fifth Committee 
(reftel). While G-77 Chair Kumalo of South Africa reiterated 
his Group's commitment to UN reform after the vote was held, 
other speakers from Japan, the EU, CANZ, and the U.S. 
criticized the decision to bring the draft resolution forward 
absent consensus.  Ambassador Bolton, reaffirming U.S. 
support for UN management reforms as an integral part of the 
process leading to a more efficient and effective 
Organization, noted the Fifth Committee's consideration of 
the Secretary-General's report on UN management reforms was 
supposed to have been an integral part of the reform process 
launched by world leaders in September 2005 and outlined in 
the World Summit Outcome Document (full text - see para 11). 
However, recent events suggested that the principle of 
consensus decision-making on UN budgetary matters established 
in the mid-1980's now merited close scrutiny and assessment, 
especially given the votes on Fifth Committee issues. A 
practice developed to achieve the broadest possible support 
on budgetary issues no longer was producing consensus.  GA 
President Eliasson, in an unusual separate statement, 
expressed regret that the tradition of consensus for 
decisions on budgetary and administrative matters had been 
ignored.  He called on Members to "move from polarization to 
cooperation" and to establish a climate of trust and 
confidence in carrying forward with the reform agenda.  END 
SUMMARY. 
 
G-77 INCREASE SUPPORT 
IN 121-50-3 VOTE 
--------------------- 
 
¶2.  For the second time in ten days, members of the Group of 
77 and China forced a vote on their version of a draft 
resolution addressing reform initiatives outlined by SYG 
Annan in his March 7 report entitled, "Investing in the 
United nations: for a stronger Organization worldwide."  As 
was the case on April 28 when a similar vote was taken in the 
Fifth Committee, the G-77 prevailed in the General Assembly, 
increasing its vote total from 108 on April 28 to 121 on May 
¶8.  The number of countries voting against the G-77 text, 
including the U.S., Japan, CANZ, and the EU, remained the 
same at 50, as did the states that abstained (Armenia, 
Norway, Uganda). 
 
G-77 CHAIR KUMALO 
REITERATES SUPPORT 
FOR UN REFORM 
------------------ 
 
¶3.  Echoing points made in recent G-77 statements and in his 
April 26 press conference (reported reftel), Group of 77 and 
China Chairman Dumisani Kumalo (South Africa) objected to the 
suggestion that the G-77 opposed UN reform.  The Group 
already had demonstrated its support for a number of major 
changes, including approval of resources for the Human Rights 
Council, funding "from new and predictable resources" for the 
Peacebuilding Support Office, authorization of $100 million 
to proceed with the Capital Master Plan, establishment of the 
Ethics Office, finalization of the whistleblower policy, 
increasing the investigation and auditing capacity of the 
Office of Internal Oversight Services (OIOS), and support for 
the biennium budget requested by the Secretary-General in 
2005, "as opposed to the spending cap."  Kumalo said the G-77 
was not trying to slow down or resist efforts to improve the 
Organization, but such changes could not proceed at the 
expense of amending the oversight role of Member States. 
 
¶4.  In addition to governance issues, Kumalo said the G-77 
draft resolution text differed from other previous versions 
in its emphasis on equitable geographical representation in 
the recruitment of Secretariat staff, particularly at senior 
levels, and in increasing procurement opportunities for 
developing countries.  G-77 efforts to press for these 
objectives did not detract from the Secretary-General's 
reform initiatives.  To suggest that these requests would 
delay the SYG's proposals, or halt the reform exercise, was 
false.  The Group was not delaying reform by asking that 
Member States receive assurances that the provisions of 
Assembly resolutions be respected and effective internal 
controls be implemented.  Kumalo said the G-77 rejected the 
suggestion that a small but representative group of Member 
States could replace the role now played by all Members in 
overseeing the management of the UN.  The UN Charter 
guaranteed the sovereign equality of every Member to exercise 
 
 
 
oversight responsibilities and pronounce on UN activities and 
programs. 
 
EU, CANZ, JAPAN JOIN 
AMB. BOLTON IN SUPPORTING 
UN MANAGEMENT REFORM AND 
CONDEMNING BREACH OF 
CONSENSUS PRINCIPLE 
------------------------- 
 
¶5.  Speaking before the vote, Japanese PermRep Oshima 
reiterated his government's support for the 
Secretary-General's commitment to reform the Organization so 
 
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that it could better respond to current needs.  Oshima noted 
the SYG could implement some measures without further GA 
legislative action, and he urged him to proceed.  Expressing 
appreciation to those who had made repeated efforts to 
preserve the consensus practice, Oshima said it would have 
been preferable for the Fifth Committee to have reported back 
to the General Assembly on those areas that enjoyed agreement 
among all delegations, as well as those issues that were not 
agreed.  Oshima voiced regret that a vote was being taken, 
given the numerous attempts to broker a consensus agreement. 
 
¶6.  Ambassador Gerhard Pfanzelter (Austria), speaking on 
behalf of the EU, underscored the importance EU members 
attached to management reform, which was vital for 
strengthening the UN.  He welcomed the SYG's March 7 Report, 
Investing in the UN, and encourage the SYG to continue his 
reform efforts.  Pfanzelter said EU members hoped to receive 
more detailed explanations of the SYG's proposals.  He also 
urged the Secretary-General to take action in those areas 
where no additional GA decisions were required.  Pfanzelter 
said the EU opposed adoption of the G-77 draft resolution 
because it did not reflect crucial concerns about budget 
planning and improved interaction between the Secretariat and 
Member States.  He voiced serious concern over the collapse 
of the consensus principle on Fifth Committee matters, and 
said it was necessary to restore the long-standing working 
methods of the Committee in order to re-establish a climate 
of trust and cooperation among all Members.  Only by engaging 
in consensus-based decision-making could Member States 
succeed in making the UN a stronger institution. 
 
¶7.  Ambassador Bolton said the United States strongly 
supported a UN sharply focused on addressing the challenges 
of today's world in efficient and effective ways.  He noted 
that the Fifth Committee's consideration of the SYG's Report 
on UN management reforms was supposed to have been an 
important part of the process begun by world leaders in 
September 2005 and reflected in the World Summit Outcome 
Document that would lead to an improved UN.  Bolton said that 
unfortunately, the April 28 vote in the Fifth Committee and 
the vote being conducted on May 8 raised deep concerns about 
the breach of the consensus decision-making principle that 
had been the practice of the Fifth Committee for nearly two 
decades. 
 
¶8.  Recalling the history of the consensus practice, Bolton 
said it had developed because in the mid-1980's, the U.S. was 
repeatedly and overwhelmingly outvoted in the Fifth Committee 
on important budget questions.  Consensus-based 
decision-making on budgetary issues was a practice adopted to 
correct this problem to reflect the opinions of all UN 
members.  Bolton noted that during the past 20 years, there 
were doubts as to whether the consensus budgeting approach 
was working to fulfill the intentions that led to its 
creation in the first place.  He said the current situation, 
and the vote being taken on May 8, raised that question 
again.  Bolton said many elements related to governance of 
the UN now needed to come under scrutiny, as the SYG and 
others had suggested.  While the U.S. maintained its view on 
consensus decision-making on budget matters, it was now time 
to carefully evaluate how that process actually was working, 
as was appropriate after nearly 20 years. 
 
GA PRESIDENT ELIASSON 
APPEALS FOR COOPERATION, 
NOT POLARIZATION 
------------------------ 
 
¶9.  Following the interventions by individual Members, GA 
President Eliasson delivered prepared remarks in which he 
noted that draft resolutions recommended by vote are not the 
normal practice of the Fifth Committee.   Eliasson 
characterized the GA's May 8 vote as a "deviation from a long 
standing practice of the Fifth Committee" which he called a 
"hallmark of the work of the Committee."  Eliasson said the 
tradition of consensus for decisions on budgetary and 
administrative matters served to safeguard the long-term 
interests of the UN as well as all Member States.  Although 
 
 
 
the consensus principle was not being respected with the May 
8 vote, Eliasson appealed to all Members to move forward and 
join forces in fulfilling the tasks outlined by world leaders 
during the September 2005 Summit.  He said it was "essential 
that we restore the consensus mode of decision-making in the 
Fifth Committee" and work for the broadest possible agreement 
on all reform issues.  Eliasson suggested that progress could 
be achieved on three tracks: follow-on Secretariat reports 
concerning Management Reform that were expected in the coming 
weeks, the ongoing mandate review, and the report on 
governance and oversight structures that would assist the GA 
in discharging its oversight responsibilities. 
 
¶10.  Eliasson suggested that Member States were "facing a 
test of multilateralism."  He said it was imperative that 
Members cooperate and work together to make the UN stronger 
and better equipped to deal with current global priorities. 
A climate of trust and confidence must be established to 
encourage a constructive and forward-looking discussion of 
the best ways to strengthen the UN.  Eliasson called on 
Members to "move from polarization to cooperation" in order 
to achieve concrete results in Secretariat and management 
reforms in the coming months. 
 
TEXT OF AMBASSADOR 
BOLTON'S STATEMENT 
------------------ 
 
¶11. Remarks delivered in the General Assembly May 8 by 
Ambassador Bolton: 
 
Begin text: 
 
Thank you, Mr. President. 
 
The United States on April 28 gave a statement in the Fifth 
Committee explaining its vote on this item.  That position 
still stands.  Since others have taken the floor on the 
occasion of today's vote, I would like to make several 
additional points also. 
 
The United States strongly supports a United Nations that is 
sharply focused on addressing the challenges of today's world 
in efficient and effective ways. 
 
The Fifth Committee's consideration of the 
Secretary-General,s report on UN management reform was 
 
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supposed to have been an important part of the process 
leading to a more efficient and effective organization, a 
process that our leaders started last year with their 
historic consensus agreement on the World Summit Outcome 
document. 
 
Unfortunately, the vote on management reforms in the Fifth 
Committee, as well as the vote called for today in the 
General Assembly, raises deep concerns about the breach of 
the consensus decision-making principle that has been the 
practice of the Fifth Committee for nearly two decades. 
 
Let me just review for a minute, Mr. President, how that 
practice developed.  From the perspective of the United 
States, it developed because in the mid-1980,s, the United 
States was repeatedly and overwhelmingly outvoted in the 
Fifth Committee on important budget questions.  And the 
consequence was that the United States Congress withheld 
substantial contributions from the U.S. assessed 
contributions.  So that the practice of consensus-based 
decision-making in this Organization on budgetary matters was 
intended to reflect clearly the opinions of all UN members. 
 
Now during the past 20 years and indeed, as early as the late 
1980s and early 1990s, there were doubts whether the 
consensus budgetary approach was working to fulfill the 
intentions that had led to its creation in the first place. 
And, in fact, the current situation as reflected in today's 
vote raises that question again. 
 
The result of consensus-based decision-making in the Fifth 
Committee is often the same as in today's vote.  So that we 
are asked, whether in Congress or elsewhere, what is the real 
distribution of opinion in the United Nations on budget 
questions, we can fairly say that it is reflected in today's 
vote.  So one might well then ask, what is gained by the 
consensus process? 
 
We believe that many comfortable elements of the governance 
of this Organization now need to come under scrutiny as the 
Secretary-General and others have suggested.  We maintain our 
 
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view on consensus decision-making on budget matters, but we 
are carefully evaluating how it actually works, as is 
appropriate after 20 years. 
 
 
 
 
Thank you, Mr. President. 
 
End text. 
 
BOLTON