VZCZCXRO8053
RR RUEHRN
DE RUEHRN #0054/01 2461636
ZNR UUUUU ZZH
R 031636Z SEP 09
FM USMISSION UN ROME
TO RUEHC/SECSTATE WASHDC 1141
RUEHRC/USDA FAS WASHDC
RUEHC/USAID WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHGV/USMISSION GENEVA 0283
RUEHUNV/USMISSION UNVIE VIENNA 0052
RHEHAAA/NSC WASHINGTON DC
INFO RUEHRN/USMISSION UN ROME 1215

UNCLAS SECTION 01 OF 02 UN ROME 000054 
 
SENSITIVE 
SIPDIS 
 
NSC FOR CHRIS PRATT 
USDA FOR RIEMENSCHNEIDER AND DOUVELIS 
 
E.O. 12958: N/A 
TAGS: FAO EFIN AORC EAGR EAID KUNR UN
SUBJECT: RECOMMENDED STRATEGY  ON FAO DRAFT BUDGET 
 
REF: A. (A)  USMISSION UN ROME 0052 
     ¶B. (B)  STATE 84087 
 
¶1. (U)  This message is sensitive but unclassified.  Please 
handle accordingly. 
 
 
 
¶2.  (SBU)    Summary:  The FAO Director General distributed on 
September 1 a revised draft Program of Work and Budget (PWB) for 
the 2010-11 biennium that proposes a significant 7.1 percent 
increase over the current biennium in the regular budget ("net 
budgetary appropriation").  Only half of the $38 million cost of 
implementing the Immediate Plan of Action (IPA) reform package 
over the next two years is included, with the remainder funded 
through "voluntary contributions."  The Mission suggests a 
two-pronged approach to encourage other member countries to 
support a zero nominal growth budget, which includes all IPA 
costs, at the September 18 Special Session of the Finance 
Committee, the September 28 - October 2 Council and the November 
Conference that will ultimately approve the budget.  Our 
recommendation involves a combination of Mission advocacy in 
Rome coupled with demarches to selected countries.   End Summary. 
 
 
 
Rome Advocacy 
 
-------------------- 
 
 
 
¶3.  (SBU)    Coming on the heels of a 17.5 percent increase in 
the current biennial budget, the 7.1 percent proposed increase 
is unacceptable to a number of delegations, including Canada, 
Mexico,  Australia and New Zealand,  who, like us, strongly 
support zero nominal growth (ZNG) with the inclusion of the 
entire cost of IPA implementation in the regular budget.   These 
countries share our concern that the draft budget reflects 
little or no reduction in costs expected from implementation of 
the IPA reform effort over the next two years (ref A).  Such a 
large budget increase is also inappropriate given that FAO 
management has yet to implement the vast bulk of its reform 
plan, has sought to slow the pace and water down the substance 
of many key reforms, and proposes the large majority of its 
budget increase for staff costs (far above the rate of 
inflation).  These views are shared widely among those who pay 
most of FAO's bills.  The Deputy DG told Charge that he believes 
there is now widespread support for including all IPA costs in 
the regular budget and expects all such costs will be included 
in the final budget. 
 
 
 
¶4.  (SBU)   The Mexican Ambassador reports that in GRULAC only 
Argentina and Brazil strongly support the budget proposal, and 
he thinks that demarches to both countries might well alter 
their positions as these delegations are known to operate absent 
instructions.   The Japanese Deputy Permanent Representative 
told Charge on September 3 that Japan is leaning toward support 
for zero nominal growth but no decision will be made for several 
weeks because of the recent election.   He also noted that many 
members of the Asia Group, including India and some other G-77 
members in the region, might well support ZNG for the next 
biennium on the grounds that the FAO received a large increase 
of 17.5 percent in the current biennium. 
 
 
 
¶5.  (SBU)   The Swedish Ambassador, representing the EU 
Presidency, told Charge that the EU is firm in insisting that 
all IPA costs be included in the regular budget, but no 
coordinated position on the budget will be decided until a 
September 21 meeting in Brussels, the week after the September 
18 Special Session of the Finance Committee (France, Germany, 
and Denmark represent Europe on the 11-member Finance 
Committee).  In a separate meeting, the departing British Deputy 
Permanent Representative told the Charge that he believed the 
EU, with strong support from the UK, would support the draft 
biennial budget with the inclusion of all the IPA costs in the 
regular budget, resulting in an increase of some 9 percent. 
 
 
 
¶6.  (SBU) With other delegations now starting to return to Rome 
 
UN ROME 00000054  002 OF 002 
 
 
after the traditional August vacation period, we will be meeting 
with representatives from all the regional groups to encourage 
adoption of a ZNG budget and will report the results. 
 
 
 
Recommended Demarche 
 
---------------------------------- 
 
 
 
¶7.  (SBU)   As many Rome-based delegations operate with little 
or no instruction from their capitals, coupled with the fact 
that most of the smaller countries with limited staff routinely 
rely on the Secretariat to provide summaries of important issues 
such as the budget, we believe it important that the Mission's 
advocacy be complemented by demarches delivered in select 
capitals to encourage support for a ZNG budget that includes all 
costs of IPA implementation.    Mission suggests that demarches 
be delivered to the following countries which likely will be the 
most influential in the upcoming budget deliberations: 
 
 
 
-GRULAC:  Brazil, Argentina, Dominican Republic (G-77 Chair), 
Panama (Finance Committee member); 
 
 
 
- European Regional Group:  Germany, France, UK, Denmark, 
Sweden, Norway, Finland, Italy, Spain, Switzerland, Russia, 
Hungary, Czech Republic; 
 
 
 
-Near East:  Jordan (G-77 Vice-Chair), Kuwait (co-chair), Egypt, 
Iraq, Saudi Arabia 
 
 
 
-Africa:  South Africa, Nigeria, Ethiopia, Tanzania, Burkina 
Faso, Senegal, Zambia, Cameroon (Finance Committee member), 
Uganda (Finance Committee member); and 
 
 
 
-Asia:  Japan, China, India, Pakistan, Malaysia, Indonesia, 
Thailand 
 
 
 
¶8.  (SBU) In particular, it will be important to reach capitals 
prior to expected regional group meetings where collective 
positions will be hammered out, from which individual deviation 
becomes more difficult.  The European position is particularly 
important in this regard, as will be the expected regional 
meetings of the Near East (the Arab League foreign ministers 
normally meet in Cairo ahead of the UNGA), and the African 
Union.  Combined, these groups comprise more than half of the 
FAO membership, and typically vote en bloc, once regional 
positions are agreed.  Support for our position on ZNG would 
also ideally be included on the agendas of bilateral meetings on 
the margins of the UNGA later this month, as well as the 
September 14-15 post-L'Aquila experts meeting in DC. 
GLOVER