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Lucia A Keegan  10/11/2006 09:51:59 AM  From  DB/Inbox:  Lucia A Keegan

Cable 
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UNCLAS        PARIS 06614

SIPDIS
cxparis:
    ACTION: UNESCO
    INFO:   POL ECON AMBU AMB AMBO DCM SCI

DISSEMINATION: UNESCOX
CHARGE: PROG

APPROVED: DCM: AKOSS
DRAFTED: SCI: NCOOPER
CLEARED: NONE

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PP RUEHC RUEHGV RUCNDT
DE RUEHFR #6614/01 2771505
ZNR UUUUU ZZH
P 041505Z OCT 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 1963
RUEHGV/USMISSION GENEVA PRIORITY 2500
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0915

UNCLAS SECTION 01 OF 02 PARIS 006614 
 
SIPDIS 
 
FROM USMISSION UNESCO 
 
STATE FOR IO/UNESCO KELLY SIEKMAN, IO/S LISA SPRATT 
 
E.O. 12958:  N/A 
TAGS: UNESCO AORC EAID
SUBJECT:  UNESCO REFORM: F/A EXPERTS MEETING HIGHLIGHTS  BRASILIA 
OFFICE, UPCOMING BUDGET DEBATE 
 
REFS: A) PARIS 2961  B) PARIS 03450 
 
¶1.  Summary and INTRODUCTION:  At the September 27-29 meeting of 
UNESCO's Financial and Administrative (f/A) experts' group, the U.S, 
delegation: raised questions on the legal risks posed by the 
Brasilia office, underlining the Executive board's fiduciary 
responsibilities and urging that Brasilia remain on the agenda of 
the Board; supported draft decisions devised by the Geneva Group of 
donor nations on extrabudgetary funds and a new evaluation strategy 
that will promote transparency and program coherence; and obtained 
additional information on the new merit-based promotion scheme 
including assurances that it would be used only in very rare 
circumstances.  The meeting was also an opportunity to gauge the 
plans of other donor member states on the budget ceiling (2008-9). 
 
¶2.  The F/A experts' group is comprised of 12 outside experts from 
capitals charged with "examining from a strictly technical point of 
view the administrative and financial aspects of the decisions and 
issues that the Executive Board refers to it."  The U.S. was 
represented at the F/A experts' group by IO/S Lisa Spratt.  Because 
decisions taken at the F/A experts' group set the tone for 
subsequent debate at the Executive Board, U.S. membership in the 
experts' group continues to be an important tool to advance our 
reform agenda at UNESCO.  It is perhaps for this reason that during 
a recent meeting of the Bureau of the Executive Board, the Brazilian 
delegation questioned whether the F/A experts' group should continue 
to exist.  END SUMMARY AND INTRODUCTION 
 
BRASILIA OFFICE 
¶3.  The Secretariat's presentation on this issue focused on efforts 
to re-orient the programs of the office.  The U.S. intervention 
raised questions about ongoing transition plans, management 
shortcomings and outstanding legal risks, stressing the fiduciary 
responsibility of the member states of UNESCO's Executive Board and 
the need to keep the issue on the agenda of the Board.  South 
Africa's intervention was to the point:  "Are these problems behind 
us?"  India and Colombia intervened to support Brazil's assertion 
that the problems with the Brasilia office are symptomatic of larger 
problems of  management of UNESCO field offices (a point later 
refuted by the Secretariat); India tried to have the issue put off 
so that it is not raised at the Executive Board until  Spring 2008 
(179th Executive Board).  Brazil, as an observer, stressed the costs 
entailed by continuing surveillance of the Brasilia office and asked 
for an accounting of these costs.  Japan intervened, but only to ask 
for clarification on a technical point.  The UK, the other Group I 
representative on the F/A experts' group, did not intervene. 
¶4.  In response to U.S. questioning, the Secretariat acknowledged 
that UNESCO's antenna offices in Brazil do not enjoy diplomatic 
immunity, absent an agreement with the Brazilian government.  The 
legal advisor reported that the issue of whether UNESCO's claim to 
diplomatic immunity in the civil suit brought by the Brazilian 
government is still pending before the Brazilian supreme court.  The 
Secretariat said that UNESCO is still transitioning work with the 
 
SIPDIS 
Brazilian Ministry of Health.  Progress on this transition strategy 
is going slower than expected, as there is concern on the impact on 
the Ministry of Health.  They now expect the transition to be 
completed by mid-2009, given commitments made to the Brazilian 
government. 
¶5.  The decision adopted by the F/A experts' group calls for the 
Director General to "report back to it promptly on any significant 
new developments, but in all circumstances not later than its 177th 
session (fall 2007)." The issue will come before the Combined 
meeting of the P/X and F/A commissions on October 7. 
Strategies on Evaluation And Extrabudgetary Funds Key to Reform 
¶6.  The F/A experts Group approved a revised draft decision that 
will strengthen UNESCO's evaluation function.  The draft decision 
mandates the use of the evaluation function as a strategic tool, 
calling for evaluations that are broader in scope as well as closer 
links between evaluations undertaken and the implementation of the 
new Medium-term Strategy (2008-13).  (Note:  This draft decision was 
devised by a Geneva Group drafting group hosted by the U.S. 
delegation.  End note).  The importance of the evaluation function 
in increasing transparency at UNESCO is highlighted by the fact that 
India (at the suggestion of Brazil) tabled language asking the 
Director General to specify the amount of money to be spent on 
evaluations in the next budget (comment:  with the intention, we 
suspect, of taking aim at this expenditure.  End Comment). 
 
¶7.  The F/A experts' Group also approved a new plan on the 
management and programming of extrabudgetary funds that was mandated 
by the 174th (spring 2006) meeting of the Executive Board, based on 
an initiative pressed by the Geneva Group of donor nations 
(reftels).  This new plan sets guidelines for more transparency in 
the management of extrabudgetary resources - including ensuring that 
management costs are borne by the donors - and for the harmonization 
of these resources with the priorities set in UNESCO's program and 
budget.  This is important, given the fact that the extrabudgetary 
resources that UNESCO receives each year nearly total its regular 
budget. 
¶8.  The debate on human resources policy was an opportunity for the 
U.S. to press the need for consultation with the International Civil 
Service Commission on any merit-based promotion scheme.  In 
response, The Secretariat made clear that the scheme would only be 
used in rare cases to recognize outstanding achievement, and that 
any such promotion would be subject to review by a panel.  This 
agenda item was an opportunity for other member states, notably 
Russia, to underline that the current policies to encourage internal 
recruitment disadvantage under-represented member states.  Others, 
especially the UK, stressed the need to evaluate the results of 
staff training schemes. 
Budget Ceiling: Playing it Close to the Vest 
¶9.  On the agenda item relating to the program and budget, the focus 
of attention for the group was the Ceiling for the new budget 
(2008-9).  The member states that intervened played it very close to 
the vest.  The UK said that it is far too early to discuss a budget 
ceiling, expressing the hope that the new Medium-Term Strategy would 
bring far-reaching changes; the UK stressed the need to focus on 
MDGs, to reduce the number of sub-activities, and to encourage 
results-based programming.  The U.S. emphasized the need for 
continued program prioritization to be undertaken prior to 
discussions of budget level.  Russia expressed sympathy for the 
interventions of The UK and the U.S.; he said that it might be time 
to discuss "an approach, rather than figures", proposing an 
"adjusted ZNG".  He also commented that after two biennia of ZNG, it 
is probably not feasible to continue at this level.  Slovenia voiced 
support for the interventions of the US and the UK, as did Colombia. 
Japan also said that it is too early to set a budget ceiling, given 
that the strategic planning exercise is still in its early stages. 
(Note:  in a luncheon with U.S. participants in the F/A experts' 
group meeting, the Japanese delegation said that ZNG is the GOJ 
policy for international organizations, but said that exceptions to 
the ZNG policy can be made when well justified.  End Note.) 
¶10. (Note:  at a meeting of the Geneva Group of donor nations that 
preceded the Executive Board, member states intervened as follows: 
The Netherlands "zero growth with a little adjustment"; France 
"option 2, a 3-4 percent increase"; Italy "not ready to take a 
position"; Switzerland "usually supports zero real growth for all UN 
institutions"; Sweden "no decision on budget"; Spain "Zero real 
growth, will follow consensus".  Canada confided privately that it 
had received instructions for ZNG.  End Note.) 
A Role For UNESCO in African Immigration 
¶11.  This agenda item - an attempt by the African Group to get 
UNESCO to deal with the problem of illegal migration from 
sub-Saharan Africa - illustrates the F/A experts' role as 
gatekeeper, even on policy issues to be considered by the full 
Executive Board. According to the Senegalese DCM who presented the 
agenda item, many African youth are immigrating illegally because 
their educations don't equip them to find jobs in their own 
countries; the African Group would like UNESCO to use its 
competences in the areas of education and Social and Human Sciences 
to stem the tide of migration and enable youth to remain in their 
home countries.  (Note:  the Senegalese DCM also confided to the 
Mission that a goal is to counter the appeal of Islamic extremism. 
End Note.) The original draft decision proposed by the African group 
called on UNESCO to organize a youth conference in Western Africa 
aimed at seeking solutions, and for the establishment of a fund to 
address this problem, financed via a 1 euro tax on cash transfers 
from African laborers in France to their families.  The skepticism 
of the ADG for Africa was very clear in his presentation.  He noted 
that that the proposal for a conference needed further study, that 
UNESCO could not levy a tax, and that there is a UN group currently 
developing proposals on the immigration issue.  Member states 
intervening on this issue agreed, particularly on the issue of the 
tax. 
¶12.  The F/A experts' group concluded with a drafting session that 
resulted in a draft decision that was much less ambitious than the 
original text, excising any reference to a tax. The new draft 
decision -- which will be forwarded to the Program and Financial 
Commissions of the Executive Board -- invites UNESCO to study how it 
can address the problem via technical and vocational education 
programs, in consultation with other concerned institutions.  It 
also suggests highlighting the issue at the Youth Forum to be 
convened at the fall 2007 General Conference. 
Oliver