VZCZCXYZ0001
OO RUEHWEB

DE RUCNDT #1346/01 1922034
ZNR UUUUU ZZH
O 112034Z JUL 06
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9573
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY

UNCLAS USUN NEW YORK 001346 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC UUNR UNGA
SUBJECT: UN/MANAGEMENT REFORM: U.S. JOINS CONSENSUS IN JULY 
7 GA ADOPTION OF MANAGEMENT REFORM RESOLUTION 
 
REF: 07/07/06 IO-USUN E-MAILS 
 
¶1. (U) USUN, as instructed (ref e-mails), joined other 
General Assembly members July 7 in adopting by consensus a 
resolution (A/C.5/60/L.67) supporting a number of management 
reform measures recommended by the Secretary-General in his 
report on "Investing in the United Nations for a Stronger 
Organization Worldwide: Detailed Report" (A/60/846). Among 
the new agreed measures were: 
 
- a decision to allow the Secretary-General, on an 
experimental basis, limited budgetary discretion to utilize 
shift up to $20 million per year from savings and 
efficiencies for general temporary assistance to respond to 
evolving needs of the Organization; 
- UN adoption of international public accounting standards; 
- creation of a new post of Chief Information Technology 
Officer to oversee improvements in UN information and 
commmunication technology functions; 
- replacement of the current Integrated Management 
Information System with a new enterprise resource planning 
system; 
- funding for temporary assistance to improve UN procurement 
practices; 
- increase in the Working Capital Fund to $150 million, 
financed from budget surpluses and assessments; 
- full operationalization of the Ethics Office; 
- preparation of a single annual Secretary-General's report 
on the work of the Organization; 
- a request for a comprehensive SYG report to facilitate 
Member State and public acess to UN documentation and 
information; and, 
- a commitment to take action to ensure the operational 
independence of the Office of Internal Oversight Services 
(OIOS). 
 
The budgetary implications of this resolution amount to 
$4,433,100. 
 
¶2.  (U) The GA deferred consideration until the 61st UN 
General Assembly session of additional reforms proposed by 
the Secretary-General on financial management practices, 
including consolidation of UN peacekeeping accounts and 
increases in the peacekeeping reserve fund; modification of 
commitment authority; and establishment of a reserve fund 
within the context of the 2008-2009 regular budget.  The GA 
also delayed action on additional reforms in the areas of 
procurement, human resource management and 
oversight/governance/accountability, pending its receipt and 
detailed analysis of SYG and other reports on these issues, 
including the independent external evaluation of UN audit and 
oversight capabilities being prepared by Price Waterhouse. 
Ambassador Wallace, speaking following the GA vote, voiced 
concern over the lack of agreement on ensuring budgetary 
independence for OIOS, increased measures to achieve 
effective procurement reform, and financing costs associated 
with establishment of a new post of senior information 
technology officer from previously authorized funds.  By 
contrast, the South African delegate, on behalf of the Group 
of 77 and China, also spoke after the GA vote, listing all 
the reforms achieved since world leaders agreed to the 
Outcome Document in September 2005, and the critical role 
played by the G-77 in achieving these objectives. 
 
¶3. (SBU) Of the seven issue-specific addendum reports 
detailing the SYG's specific recommendations outlined in 
"Investing in the UN" (A/60/692), GA members only focused 
discussions leading to the July 7 resolution on proposals 
contained in addenda 1 through 4 (information and 
communication technology, budget implementation, financial 
management practices, and improving reporting mechanisms 
including public access to UN documentation).  Some of the 
draft language, including on ICT, improved reporting and 
public access, and financial management practices, that was 
jointly proposed during negotiations by the U.S., Japan and 
Australia was incorporated in the final document.  However, 
members of the G-77 resisted repeated U.S. efforts to secure 
consensus support for language twice advocated by the 
Advisory Committee on Administrative and Budgetary Questions 
(A/60/7/Add.23, A/60/870) that would have called upon OIOS to 
submit its proposed 2008-2009 budget to the GA without 
Secretariat review, as well as language that would have 
 
SIPDIS 
created new permanent posts in the area of procurement to 
reform and improve current practices.  The G-77, claiming no 
action could be taken until the release of the independent 
external evaluation of audit and oversight capabilities of 
the UN, also opposed U.S. attempts to include language that 
urged the SYG to begin indentifying candidates for the 
Independent Audit Advisory Committee (IAAC).  As a 
consequence, the GA will not address these issues until the 
61st session. 
 
 
¶4. (SBU) Comment: While the atmosphere and dynamics of the 
negotiations that resulted in the July 7 GA adoption of the 
resolution text were less acerbic and combative than the 
bitter disputes surrounding the GA's May 8 adoption of the 
resolution (A/RES/60/260) prompted by the SYG's original 
March 7 "Investing in the UN" report, a resolution the U.S. 
and 49 other Member States opposed, the G-77 again rejected 
any attempts by the U.S. and others to press forward in any 
meaningful way with the management reform agenda.  The G-77 
publicly touted its full support for UN reform while 
continuing privately to resist disruption of the status quo. 
There are few signs on the horizon that the G-77 approach 
will change anytime soon.  End comment. 
BOLTON