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PP RUEHWEB

DE RUCNDT #1028/01 3102315
ZNR UUUUU ZZH
P 052315Z NOV 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC PRIORITY 5299
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY

UNCLAS USUN NEW YORK 001028 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ABUD AFIN AORC KUNR UNGA
SUBJECT: UN BUDGET: SECRETARIAT RESPONDS TO MEMBERS' 
CONCERNS ABOUT EFFICIENCY MEASURES 
 
 ¶1. Summary. At the request of the Group of 77 and China, 
Secretariat officials on November 3 appeared before the Fifth 
Committee to answer questions about the Secretary-General's 
plan to identify efficiency savings in preparation for the 
UN's proposed budget for 2010-2011.  The planned 30-minute 
discussion stretched to three hours as delegations repeatedly 
criticized the Secretariat for the savings proposal and its 
failure to inform Member States about it.  According to Mr. 
Kim Won-soo, Deputy Chief of Staff for the Secretary-General, 
program managers were asked to identify savings in their 
program amounting to two percent that would be presented in 
the budget outline for 2010-2011 and such savings would be 
available for reallocation to higher priority activities. 
Amb. Kim noted that the figure of two percent is not a fixed 
requirement, but is instead a target. Several delegations, 
including Egypt, Cuba, and Brazil,  questioned how this could 
be done without negatively affecting implementation of 
existing mandates.  They also suggested that any efficiency 
savings realized should be placed in the Development Account, 
in accordance with relevant resolutions.  Delegates from 
Canada, the United States, Japan, and France (EU) expressed 
support for the Secretary-General's efforts, while other 
delegates used the opportunity to complain about such things 
as recently installed fire doors, reduced air conditioning, 
and the UN's agreements with NATO.  End summary. 
 
 
¶2.  Most questions concerned the perceived two percent budget 
cut and the lack of transparency surrounding the announcement 
to the press before Member States were notified of the 
proposal.  Kim explained that Secretary-General Ban Ki-moon 
told the press of the idea when asked a specific question by 
a member of the media.  The Secretariat did not feel that 
this was a major issue because the process was an internal 
exercise for the purpose of preparing a budget outline that 
will be presented to Member States later this session.  The 
proposal is not for the 2008-2009 budget, but will affect the 
2010-2011 proposed budget.  The Secretary-General has asked 
senior officials to find ways to increase efficiency with the 
goal of completing 100 percent of the mandates with 98 
percent of the resources at their disposal, leaving the 
remaining two percent for allocation to new proposals or 
initiatives.  He also noted that Member States will be asked 
to match the Secretariat's efforts by providing additional 
resources for such new proposals or initiatives.  He 
acknowledged the concern of Member States and added that 
these actions will be completed in a transparent manner. 
 
¶3. Along with delegates from Canada, Japan, and France, the 
United States delegate expressed support for the effort.  The 
United States delegate shared the concern expressed by other 
Members States regarding the lack of communication on this 
matter.  However, the United States delegate stated that the 
Secretary-General had the authority and responsibility to 
seek to identify such efficiencies and present proposals 
based on his efforts to Member States for their consideration 
and action.  The US delegate noted, in response to the 
comments of the G-77 Member States, that there may be other 
established opportunities for reviewing existing mandates for 
this purpose.  However, the US delegate added that in view of 
proposed increase in the regular budget of some 25 percent 
and the global financial crisis, it made sense for the 
Secretary-General to request his managers at this time to 
again review their mandates. 
 
¶4. Delegations were clearly irritated that the press was 
informed about this development before Member States and 
expressed concern about rumors circulating throughout the 
organization.  Most delegations seemed to enter the meeting 
expecting to hear the announcement of a two percent budget 
cut, which could result in an unauthorized realignment of 
priorities throughout the Organization.  Some countries, such 
as Chile, Costa Rica, Cuba, Egypt, and Venezuela questioned 
the fate of the development account and their desire that it 
not be made a low priority issue.  Among other things, they 
asked how the Secretariat came up with the number of 2 
percent; what was meant by the term "efficiency"; and what 
outcomes were expected from this exercise. 
 
¶5. Amb. Kim  explained that this action on the budget was a 
result of several factors:  a request by Member States to 
exercise budget discipline; new demands on the budget; and 
the global financial crisis.  The Deputy Chief of Staff 
responded to the queries of delegations by explaining that 
Member States would have the sole authority to approve any 
proposal presented to them by the Secretariat.  This proposal 
would be comprised of the recommendations of senior executive 
officials on ways to increase efficiency and carry out all of 
the mandates within existing resources.  He explained that 
the Secretariat had not prejudged the responses of the 
officials and could not predict what the proposal would look 
like in its finished state.  Kim ensured Member States that 
 
they would have the last word on the matter and that the 
process would be carried out properly and transparently. 
 
¶6.  While Member States had caught the attention of senior 
Secretariat officials, they also used up conference service 
time complaining about other issues.  For instance, the 
delegate from Singapore brought up the issue of vacant posts 
that Member States had been assessed for.  The Syrian 
delegate inquired about the UN's non-legally binding 
agreement signed with NATO.  The delegate from Guatemala 
wanted to know why the chief of UN Safety and Security was 
still in his position after the Secretary-General accepted 
his resignation following the bombing of the UN compound in 
Algiers.  The Russian delegate criticized the Secretariat for 
reducing air conditioning during the summer in a symbolic 
effort to reduce the UN's carbon footprint.  The delegates 
from Nicaragua and Costa Rica expressed (once again) their 
dislike of the fire doors that were installed to comply with 
local fire codes.  Under Secretary-General for Management 
Angela Kane and UN Controller Jun Yamazaki patiently tried to 
answer these and other questions.   Many questions will be 
answered in writing and delivered at a later date. 
Khalilzad