VZCZCXYZ0000
OO RUEHWEB

DE RUCNDT #1075/01 3221757
ZNR UUUUU ZZH
O 171757Z NOV 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5377
INFO RUEHUB/USINT HAVANA PRIORITY 0275

UNCLAS USUN NEW YORK 001075 
 
SIPDIS 
 
DEPARTMENT FOR IO/MPR, WHA/CCA 
 
E.O. 12958: N/A 
TAGS: PREL AORC KUNR CU
SUBJECT: UN FINANCES: UNITED STATES SINGLED OUT FOR UNPAID 
ASSESSMENTS 
 
REF: USUN NEW YORK 993 
 
¶1.  Summary:  In formal session on November 6, UN Controller 
Jun Yamazaki presented a financial update to the General 
Assembly (UNGA) Fifth Committee (Administrative and 
Budgetary).  Despite intervening payments, the UN's financial 
situation remains mixed, and may have to borrow from the 
reserve fund in the next several weeks.  In near unison, 
delegations repeated criticism of the United States for not 
paying "in full, on time, and without conditions."  USDel's 
statement (interrupted by Cuban histrionics) highlighted 
recent payments and promised more on the way.  End Summary. 
 
¶2.  Yamazaki reported on assessments, available cash 
resources, and the UN's outstanding debt to Member States. 
The financial position of the UN remains fragile. This 
report, Improving the Financial Situation of the UN 
(A/63/514), is the Secretariat's documentation of Under 
Secretary-General Angela Kane's oral presentation on October 
28 (reftel).  Since Kane's report, the governments of Angola, 
Jordan, Peru, the United Arab Emirates, and the United States 
have made payments.  End-of-year cash balances are projected 
to be lower this year for the regular budget and peacekeeping 
operations (PKOs), but higher for the international criminal 
tribunals (ICTs) and the Capital Master Plan (CMP).  The USG 
owes 94 percent of the outstanding assessments.  As a result, 
the Secretariat may need to borrow USD 148 million from 
reserve accounts to pay for regular budget activities. 
 
¶3.  The Committee heard 19 reactions from representatives of 
France (on behalf of the EU), Antigua and Barbuda (on behalf 
of the G-77 and China), Mauritius (on behalf of the African 
Group), Mexico (on behalf of the Rio Group), Australia (on 
behalf of CANZ), the Philippines (on behalf of the 
Association of Southeast Asian Nations), Malaysia, Korea, 
Singapore, Cuba, India, Syria, Japan, Venezuela, Nicaragua, 
Pakistan, Russia, Argentina, and the United States.  Of the 
19 statements, 17 were critical of the United States. 
 
¶4.  The representative of Antigua and Barbuda called the 
budget a "grim situation."  Mexican and Singaporean delegates 
emphasized that the financial situation has not changed much 
from previous years.  The Australian representative said it 
was "not particularly positive," while the Filipinos and 
Malaysians called it a "mixed picture." 
 
¶5.  The representative of Antigua and Barbuda praised the 
Member States that have fully paid their assessments for the 
CMP.  The Mauritian delegate welcomed the USD 756 million 
already contributed, and requested others to pay the 
remaining USD 80 million.  The Japanese representative 
highlighted that his government made an early payment. 
 
¶6. The representative of Antigua and Barbuda noted that 
significant levels remain outstanding for PKOs.  The 
Mauritian delegate pointed out that two Member States owe 62 
percent of unpaid peacekeeping assessments.  The 
representative of Australia expressed disappointment with the 
grave PKO budget situation, with USD 2.9 billion outstanding 
and only 31 countries paid in full.  Delegations from the 
Philippines and India also expressed concern, the latter 
calling UN assessments moral obligations.  Kane reported that 
she anticipates that Secretariat debts to reimburse PKO 
contributors to be lower than that in May, and USD 134 
million less than last year. 
 
¶7.  The representative of Antigua and Barbuda highlighted 
that 85 percent of ICT assessments are owed by one Member 
State, but the Mauritian delegate expressed encouragement 
that ICT financial positions remain stable.  The 
representative of India expressed concern that the cash 
position of the regular budget is in a USD 66 million deficit 
due to special political missions and a weak USD. 
 
¶8.  Several delegations spoke out on UN reform.  The 
Australian representative called reform "even more salient" 
during an international financial crisis, and stressed the 
importance of efforts to modernize the UN.  The Japanese 
delegate said the Secretariat should be accountable and 
utilize resources efficiently.  Expressing an entirely 
different perspective, the Nicaraguan representative said "No 
Member State should point the finger at management 
inefficiencies if it has not made its payment on time.  (The 
United States) does not have the right to demand management 
reforms."   The Singaporean delegate said that withholding 
contributions in the name of addressing the inefficiencies of 
the UN is "not the right way to do things." 
 
¶9.  The most persistent theme throughout the meeting was 
criticism of the USG for tardiness in making contributions. 
 
 
In emphasizing the importance of making contributions, nearly 
every delegation repeated the term "in full, on time, and 
without conditions."  Although most hesitated to mention the 
United States by name, others dwelled on the 94 percent of 
arrears owed by "one Member State," "one contributor," or 
"the host country."  Two speakers tried to invoke irony; 
Singapore that less developed countries usually pay their 
assessments on time, and Cuba that the United States provides 
leadership in determining methodologies for assessments. 
The Syrian representative speculated whether the USG is 
deliberately withholding its contribution.  The delegation 
from Venezuela claimed that U.S. arrears show "a lack of 
commitment" and "a sly instrument of pressure, as we have 
seen on other occasions."  The Argentine delegation was the 
only to refrain from commenting on the United States.  In our 
defense, the South Korean representative expressed skepticism 
that the UN would go into the red, assuring the others that 
all Member States would make payments in time. 
 
¶10.  USDel emphasized American commitment to the UN on the 
scale of hundreds or millions of USD, with a recent payment 
exceeding USD 200 million.  Interrupted by a dramatic 
emotional display from the Cuban delegation (during which 
First Secretary Jorge Cumberbatch broke Cuba's nameplate), 
USDel explained the reason for the delay as a difference in 
payment cycles between the USG and the UN.  USDel indicated 
additional payments were planned before the end of the year. 
Khalilzad