VZCZCXYZ0009
PP RUEHWEB

DE RUCNDT #0044 0232206
ZNR UUUUU ZZH
P 232206Z JAN 07
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC PRIORITY 1160

UNCLAS USUN NEW YORK 000044 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC AFIN UN
SUBJECT: UN SEEKS CONCURRENCE FROM U.S. TO TRANSFER PART OF 
BALANCE FROM ETHIOPIA/ERITREA BORDER TRUST FUND TO THE 
ERITREA-ETHIOPIA BOUNDARY COMMISSION 
 
 
¶1.  This is an action request.  See para. 4. 
 
¶2.  USUN has faxed to Department (IO/PSC) a note from 
Assistant Secretary General/Controller for Management Warren 
Sach, addressed to Ambassador Wolff, dated January 15, 2007 
notifying us that the United Nations Trust Fund in support of 
the delimitation and demarcation of the Ethiopia/Eritrea 
Border has a balance of approximately $5.4 million remaining 
as of December 31, 2006 and proposes that part of the fund 
balance due to the U.S. Government be transferred to support 
the activities of the Eritrea-Ethiopia Boundary Commission. 
If a response is not received by January 31, 2007 Mr. Sach 
will assume that there is no objection to his proposal.  Text 
of the note follows in para. 3 below. 
 
¶3.  Begin Text: 
 
Dear Mr. Ambassador, 
 
I have the honor to refer to the United Nations Trust Fund in 
support of the delimitation and demarcation of the 
Ethiopia/Eritrea Border, established under Security Council 
resolution 1177 of 26 June 1998, and to which your government 
has been a major contribution since its inception.  The 
expenditures incurred to date amount to US $7.6 million and 
there is a balance of approximately US $5.4 million 
(inclusive of interest) as of 31 December 2006. 
 
The Eritrea-Ethiopia Boundary Commission was established 
pursuant to an agreement dated 12 December 2000 (the 
"December Agreement").  Paragraph 17 of Article 4 of that 
agreement states that "the expenses of the Commission shall 
be borne equally by the two parties."  For the most part, 
this arrangement has facilitated the work of the Commission 
since its inception.  During the past year however, this 
arrangement has faltered and has left the Commission without 
adequate resources to cover its expenses.  As a result of 
this development, I recently received a request from Sir 
Elihu Lauterpacht, President of the Boundary Commission to 
consider making resources from the above-mentioned trust fund 
available to bridge the shortfall. 
 
In view of the prevailing circumstances, and the fact that 
paragraph 17 of Article 4 also states that "to defray its 
expenses, the Commission may accept donations from the United 
Nations Trust Fund established under paragraph 8 of Security 
Council resolution 1177 of 26 June 1998", I am writing to 
seek your concurrence to transfer resources from the trust 
fund to support the activities of the Commission.  The 
Commission's estimate of its expenses, already incurred and 
immediate requirements, as at 27 November 2006 amount to 
$580,000. 
 
Given the current critical funding situation of the 
Commission, I would highly appreciate your response by 31 
January 2007.  If no response is forthcoming by that date, I 
would assume that you have no objection to my proposal to use 
part of the fund balance due to your government to support 
the activities of the Commission. 
 
Once again I take this opportunity to thank the government of 
United States for its continued support of the 
Ethiopia/Eritrea peace process. 
 
Sincerely, 
 
/s/ 
 
Warren Sach 
Assistant Secretary-General 
Controller 
 
End Text 
 
¶4.  Action Requested:  Mission requests instructions be 
provided regarding proposal as noted in text of note in para. 
3 above. 
 
WOLFF