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FM USMISSION UNVIE VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 0036
INFO RUEHVI/AMEMBASSY VIENNA 1472
RUEHXX/GENEVA IO MISSIONS COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 1756
RUEHBS/AMEMBASSY BRUSSELS 0314
RUEHRN/USMISSION UN ROME 0064
RUEHSW/AMEMBASSY BERN 0213
RUEHBY/AMEMBASSY CANBERRA 0752
RUEHLO/AMEMBASSY LONDON 1282
RUEHOT/AMEMBASSY OTTAWA 0763
RUEHFR/AMEMBASSY PARIS 1140

UNCLAS SECTION 01 OF 02 UNVIE VIENNA 000423 
 
DEPT FOR IO/T, EB/IFT/ODF AND L/PIL 
EMBASSIES FOR ECON/POL 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EIND EAID UNIDO UNDP UNEP AORC KUNR KGHG
SUBJECT: UNIDO Formally Invites U.S. to December General Conference 
 
REF:  A) SECSTATE 84998 B) UNVIE VIENNA 0622 
 C) UNVIE VIENNA 0199 D) Amadeo-Huskey Email 8/26 
 
¶1. Summary.  Attending the UN Industrial Development Organization 
(UNIDO) 2009 bi-annual General Conference as an official observer, 
while demonstrating U.S. interest in learning more about the 
organization's work, is procedurally straightforward, involving a 
simple registration form and a nameplate in the observer section of 
the hall.  UNIDO officials we spoke to were pleased to convey the 
requested administrative information but were also eager to provide 
background information on the organization's governance improvement 
and substantive objectives.  In light of our renewed dedication to 
multilateral diplomacy and seeking to engage with member states in a 
variety of venues, UNVIE recommends we consider sending 
working-level observers (UNVIE action officers) to the 2009 General 
Conference to observe and report, but we should also seek continued 
opportunities for more senior level engagement with UNIDO 
leadership, even as we reiterate that the U.S. is unlikely to rejoin 
any time soon.  Ambassador Davies will do so in an introductory call 
with DG Yumkella later this fall.  End summary. 
 
--------------------------- 
General Conference Dynamics 
--------------------------- 
 
¶2. Per Ref a action request, UNVIE officers met with UNIDO officials 
to better understand the process related to UNIDO's general 
conferences.  According to Barbara Singer, External Relations 
Officer with the Policymaking Organs Secretariat, UNIDO convenes its 
general conferences every two years.  Its 13th General Conference is 
scheduled to run from December 7-11, 2009.  Singer reported that the 
theme of this year's conference is "Greening Industry for Global 
Recovery and Growth," and that the conference would consist of three 
simultaneous events: a Plenary, a Main Committee, and Roundtables. 
 
 
¶3. The Plenary officially opens the conference, explained Singer, 
and is devoted to traditional "general debate" (i.e., delegations 
need not only speak on the official theme).  Singer reported that 
some heads of state, predominately from developing countries, attend 
the Plenary and many countries send ministerial-level 
representation.  Singer noted that in order to better focus this 
year's conference, UNIDO has introduced two forums to the 
proceedings, one on "Global Economic Slowdown: the Impact on 
Manufacturing," and the other on "Global Economic Recovery: Seizing 
Opportunities for Greening Industries."  Singer confirmed that CNN's 
Todd Benjamin will host the event and many experts have been invited 
to attend, including Jeffrey Sachs. 
 
¶4.  Running simultaneously to the Plenary is the Main Committee, 
where delegations raise and negotiate draft resolutions.  Lastly, 
added Singer, throughout the week roundtables are held, the topics 
of which are regionally focused; for example, bio-fuels in Africa, 
and investment in "green" business in the Middle East. 
 
¶5.  Singer provided UNVIE with a formal letter from UNIDO Director 
General Yumkella, inviting A/S Brimmer to attend the event (Ref d). 
According to Singer, U.S. "registration" as an observer is 
straightforward; the U.S. will receive a note verbale which will 
explain the registration process and request the names of U.S. 
participants, in writing, by October 30.  The U.S. would be seated 
with other observers to UNIDO, including the Holy See, Palestine, 
and Malta.  The U.S., as an observer, could speak on any issue "of 
direct concern."  Such requests to speak are brought to the Chairman 
of the Plenary or President of the Main Committee. 
 
-------------------------- 
Officials Enthusiastically 
Sell UNIDO 
-------------------------- 
 
On Substance... 
------------- 
¶6.  UNVIE clearly conveyed to UNIDO officials that our General 
Conference inquiries were simply informational in nature. 
Nevertheless, they enthusiastically provided further background 
information on the organization's situation.  For example, 
emphasizing UNIDO's strategic re-prioritization of goals into three 
main areas, poverty reduction, trade capacity building, and energy 
and the environment, Agerico Lacanlale, Director of Strategic 
 
UNVIE VIEN 00000423  002 OF 002 
 
 
Planning and Coordination, stressed that the organization was 
focused on development in the global economy and was targeting the 
growth of infrastructure and industry standards in post-conflict 
countries (Refs b and c).  Lacanlale stressed that UNIDO programs 
were aimed at promoting small- and medium-sized enterprises.  UNIDO 
officials sought to portray the organization as a streamlined 
economic development assistance agency, focused on achieving real 
results on the ground.  For example, noted Lacanlale, a UNIDO 
program (with USAID assistance) in Ethiopia assisted female 
entrepreneurs in building a leather handbag industry, from design, 
to production, to marketing. According to Lacanlale, some of these 
handbags are now sold in designer shops in the U.S.  Another UNIDO 
program Lacanlale described involved the refurbishment of used 
computers in Uganda and working with Microsoft to establish business 
information centers in the African countryside.  Lacanlale added 
that UNIDO also provided assistance at the national level; for 
example, UNIDO assists countries in complying with WTO requirements 
to meet international food quality standards in order to export food 
products. 
 
¶7.  Morgan Bazilian, the DG's Special Advisor on Climate Change, 
promoted UNIDO's increasing role in the area of energy development 
and climate change.  DG Yumkella, as chair of the UN Energy and the 
UN Secretary General's (SYG) Task Force on Climate Change, is 
playing an ever-increasing role in the UN's response to these 
related issues, noted Bazilian.  Bazilian added that UNIDO was 
focused on deepening the relationship between industrial development 
and sustainable energy development. 
 
And Governance 
-------------- 
 
¶8.  Yoshi Uramoto, Director of Program Coordination, provided an 
update on the finance and governance issues which had been one of 
the catalysts for U.S. withdrawal from the organization in 1996.  In 
the intervening 13 years, Uramoto reported, UNIDO staff had been 
more than halved, from 1400 to 600 persons.  He pointed to a recent 
United Kingdom (UK) assistance agency DFID report on UN management 
practices which identified UNIDO as one of the best-managed UN 
agencies, ranking it number 6 out of 28.  Further, related Uramoto, 
the organization has clearly moved away from "old think" state 
economic philosophy to promotion of a market economy orientation. 
In fact, Uramoto added, DFID also ranked UNIDO as the second-best UN 
agency in working with the private sector.  Lacanlale noted that 
UNIDO was selected to host a UN-wide meeting in April 2010 focused 
on management and inter-agency coherence, evidence that UNIDO was 
actually becoming a model of management for other UN agencies. 
 
------- 
Comment 
------- 
 
¶9.  UNVIE attended the 12th General Conference in 2007, but 
unofficially, and was not listed as an attendee and was not 
recognized as an observer.  In light of reports of UNIDO's greatly 
improved management situation, as well as its updated promotion of 
competitive and sustainable industry, UNVIE recommends we consider 
officially attending the December 2009 General Conference.  UNVIE 
believes UNVIE working-level participation at the conference would 
be an appropriate first step but would also ensure that we are 
keeping our options open with regard to any future UNIDO-specific 
engagement. An added bonus is that UNVIE participation as an 
observer would demonstrate the overall priority the U.S. places on 
multilateral institutions and our interest in engaging with and 
learning more from these organizations.  At the same we should also 
seek continued opportunities for more senior level engagement with 
UNIDO leadership, even as we reiterate that the U.S. is unlikely to 
rejoin anytime soon.  Ambassador Davies will do so in an 
introductory call with DG Yumkella later this fall. 
 
DAVIES