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SECRETARY-GENERAL WOULD BE GIVEN ESTIMATE OF $2.545 BILLION TO PREPARE PROPOSED PROGRAMME BUDGET FOR 2000-2001, BY FIFTH COMMITTEE TEXT

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UNITED-NATIONS

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Dec 19, 1998, 3:00:00 AM12/19/98
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18 December 1998

Press Release
GA/AB/3282


_________________________________________________________________

SECRETARY-GENERAL WOULD BE GIVEN ESTIMATE OF $2.545 BILLION TO PREPARE
PROPOSED PROGRAMME BUDGET FOR 2000-2001, BY FIFTH COMMITTEE TEXT

19981218
_________________________________________________________________

__As Committee Concludes Work for Main Part of Fifty-third Session,
Texts Also Approved on 1998-1999 Programme Budget, International
Tribunals

Member States would give the Secretary-General a preliminary estimate
of $2.545 billion with which to prepare his proposed programme budget
for 2000- 2001, according to a draft resolution on the budget outline
approved this afternoon by the Fifth Committee (Administrative and
Budgetary). The United States and Japan disassociated themselves from
consensus on the text. The meeting began Thursday morning and
continued through Friday evening with suspensions to allow for
consultations, mainly on the outline figure.

The Assembly would decide that the preliminary estimate should include
some $86.2 million for special political missions expected for the
biennium, by other provisions, and that priorities for the upcoming
period should be: international peace and security; promoting economic
growth and sustainable development; development of Africa; promoting
human rights; humanitarian assistance coordination; promoting justice
and international law; disarmament; and drug control and crime
prevention.

For 1999, the Assembly would appropriate $1.261 billion and, of that
amount, assess almost $1.218 billion on Member States, by one of
several other texts approved without a vote as the Committee completed
its work for the main part of the Assembly's fifty-third session.
Also, the programme budget for 1998-1999 would be reduced from some
$2.532 billion to about $2.527 billion, reflecting revised cost
estimates and resolutions adopted by the General Assembly during the
current session.

In other action, the Committee approved draft resolutions on financing
the two International Criminal Tribunals for 1999. For the
International Criminal Tribunal for Rwanda, the Assembly would
appropriate nearly $75.8 million gross and for the International
Tribunal for the Former Yugoslavia, a total of some $102.5 million
gross would be appropriated.

_________________________________________________________________

* The 45th meeting of the Fifth Committee began on Thursday, 17
December, and resumed on Friday, 18 December.

Fifth Committee - 1a - Press Release GA/AB/3282 Resumed 45th Meeting
(AM & PM) 18 December 1998

Under provisions in another text, the Assembly would note a balance of
just over $15.3 million in the contingency fund. A draft resolution on
the Integrated Management Information System (IMIS) would have it
approve an additional appropriation of $3.3 million and request the
Secretary-General to take action to ensure that related activities are
performed efficiently and economically and that adequate and qualified
staff are assigned to operate IMIS in all user departments.

A text on results-based budgeting would have the Assembly decide that
the next programme budget proposal, for 2000-2001, should be submitted
in accordance with existing procedures, but that prototypes for the
proposed technique also be submitted. Meanwhile, the General Assembly
and the Advisory Committee on Administrative and Budgetary Questions
(ACABQ) should continue to receive detailed information on posts and
non-post requirements.

The Committee decided to defer consideration of the Development
Account until the first part of its resumed fifty-third session, and
resume considering pilot projects at its resumed fifty-third session.
It approved a text on guidelines for internal control standards and
another that would have the Assembly approve the Committee's biennial
programme of work. Also, the Committee approved a five-part draft
resolution on the United Nations common system, covering a wide range
of issues related to the conditions of service of United Nations
staff. Further, it also recommended a candidate for the United Nations
Joint Staff Pension Committee.

Statements were made by the representatives of Pakistan, Côte
d'Ivoire, Morocco, New Zealand, Uganda, Japan, United States, Mexico,
Bahamas, Austria (for the European Union), Bangladesh, Indonesia (for
the "Group of 77" developing countries and China), Poland, India,
Algeria, Cuba, China, Kenya, Libya, Cameroon, Russian Federation and
Syria.

Also, the Chairman of the ACABQ, C.S.M. Mselle, introduced that body's
views on several matters.

Closing statements were made by the representative of Indonesia for
the Group of 77 and China; the representative of Austria for the
Western European and Other States Group; Pakistan's representative for
the Asian States Group; the representative of the Russian Federation
for the Eastern European States Group; the representative of Guatemala
for the Latin American and Caribbean States Group; and the
representatives of Egypt, the United States, ("for the group of
groupless countries") and India.

The Committee's Chairman, Movses Abelian (Armenia), in concluding
remarks, hoped that in upcoming sessions, the spirit of compromise
would prevail.

_________________________________________________________________

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to
take action on all its outstanding matters for the main part of the
fifty- third session.

(For background on reports by the Secretary-General and the ACABQ on
the programme budget implications of draft resolution A/53/L.66,
related to the situation in Afghanistan and its implications for
international peace and security, see Press Release GA/AB/3279 of 10
December.)

Appointments to Fill Vacancies

The Committee had before it a note from the Secretary-General
requesting inclusion of an additional sub-item on the General
Assembly's agenda on appointment of a member of the United Nations
Staff Pension Committee (document A/53/235). The Secretary-General
says that Tadanori Inomata (Japan) resigned from the Committee and
that, accordingly, the Assembly will be required to appoint someone to
complete his term, which expires on 31 December 2000.

A letter from the General Assembly President (document
A/C.5/53/1/Add.1) advises that the additional sub-item has been
allocated to the Fifth Committee.

In a related note (document A/C.5/53/46), the Secretary-General
advises that the Government of Japan has nominated Kenshiro Akimoto
(Japan) to fill the vacancy. Attached to the note is the candidate's
curriculum vitae.

United Nations Common System

The Committee had before it draft resolution on the United Nations
common system (document A/C.5/53/L.20) divided into five major parts
and subdivided into specific sections.

Part I of the draft relates to the conditions of service of
professional and higher level staff.

By the terms of the section on the Noblemaire Principle and its
applications, the General Assembly would reaffirm the continued
application of the Noblemaire Principle [by which the level of the
salaries for United Nations common system staff at the Professional
and higher levels are established]. It would take note of the
International Civil Service Commission (ICSC) decision to suspend
total compensation comparisons until 2001 and request the Commission
to undertake a study to identify the highest paid national civil
service in 2001, in a manner consistent with the United States/United
Nations total compensation comparison.

_________________________________________________________________

Fifth Committee - 3 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

Under the section on evolution of the margin, the General Assembly
would take note of the ICSC's intention to explore possible solutions
to imbalances in the United Nations/United States net remuneration
ratios at individual grade levels, and that the margin between net
remuneration of United Nations Professional staff and equivalent
United States staff is 114.8. [The margin is the average percentage
difference between remuneration of United Nations staff from the P-1
to the D-2 levels and their United States federal civil service
equivalents.]

Under its section on the base/floor salary scale, the draft would have
the General Assembly approve a revised base scale annexed to the draft
and also the consequential amendment to the Staff Regulations, also
annexed to the draft.

Under the draft's section on treatment of expatriation, the General
Assembly would take note of the ICSC's consideration contained in
paragraphs 104 to 117 of its report [in which the ICSC, in response to
a General Assembly request, discussed consequences of partial phasing
out of expatriate elements of the margin for staff with long service
at one duty station] and request it to develop this study and report
to the fifty-fourth General Assembly session.

Under the section on the common scale of staff assessments, the
General Assembly would take note of the ICSC conclusion that the
current scale of staff assessment should continue and be reviewed in
2000, and of its conclusion on the impact of staff assessment and
local taxes on the levels of pensionable remuneration of General
Service and related categories of staff. It would endorse the ICSC
view that the local practice approach to determining pensionable
remuneration of General Service staff should not be further pursued.

Under dependency allowances, the Assembly would approve an increase of
14.6 per cent in children's allowance -- including for disabled
children -- and in the secondary children's allowance, effective 1
January 1992. It would also take note that dependency allowances
should be reduced by the amount of any direct payment received from a
government in respect of dependents. Further, it would request the
ICSC to examine the methodology, rationale and scope of allowances in
the year 2000.

By the section on post adjustment matters, the Assembly would take
note of ICSC conclusions regarding the operation of the post
adjustment system at the base, and request it to continue to explore
the feasibility of using outside data sources for the next place to
place surveys. It would take note of the ICSC conclusions in
paragraphs 156 and 157 of its report on the Geneva post adjustment,
and further note that, whilse establishing a single post adjustment
for Geneva is technically feasible, the legal implications of such an
approach are beyond the ICSC's mandate.

_________________________________________________________________

Fifth Committee - 4 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

The second part of the draft relates to conditions of service
applicable to both Professional and General Service staff.

Under its section on the education grant, the Assembly would approve
increases in maximum reimbursement levels in seven specific currency
areas, as well as other adjustments contained in paragraph 190 of the
ICSC report. It would note the ICSC's decision to review the
methodology in 2001.

Under its section on recognition of language knowledge, the Assembly
would, recalling its request that the ICSC review the common system
language incentive scheme, note that a number of essential elements
remained to be resolved including the rationale for its recommending
changes, the degree to which such changes will continue to serve as an
incentive for multilingualism and the basis for determining incentive
amounts and transitional measures. The Assembly would also request the
ICSC to submit to the assembly's fifty- fourth session a comprehensive
report covering all the elements raised.

Under the section on hazard pay, the section on standards of travel
and per diem, and the section on Mission Subsistence Allowance, the
draft would have the Assembly take note of the ICSC's decisions.

Part III of the draft resolution relates to the consultative process
and working arrangements of the ICSC. By this part, the Assembly would
emphasize that responsibility for the ICSC's decisions rests solely
with its members, and welcome the progress in promoting a spirit of
constructive cooperation and flexibility towards improving working
relations with the staff bodies. The Assembly would take note of the
Committee's changes to its rules of procedure and other procedural
changes, and that these changes could enable all parties to ensure
their views are reflected in all phases of the consideration of
issues. It would request the ICSC to monitor the implementation of the
revised rules and report to the General Assembly's fifty-seventh
session.

Part IV of the draft would have the Assembly decide to revert to the
following issues, among others, related to the ICSC: its working
methods, including the respective roles of the Commission and its
secretariat, the selection and appointment of members of the
Commission and the role of the Commision in the review process in the
context of its consideration of the Secretary-General's recommendation
for the review of the Commission at the resumed fifty-third session.

Part V of the draft resolution concerns the framework for human
resources management. Under this part, the Assembly would welcome the
ICSC initiative to examine a framework for human resources management.
It would invite the ICSC, as part of the review, to examine reform
initiatives both inside and outside the common system, the
facilitation of inter-agency mobility and the introduction of
specialist pay. The ICSC would be urged to speedily address the
Assembly's request for a study of human resources management and
report thereon to the fifty-fourth Assembly session.

_________________________________________________________________

Fifth Committee - 5 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

Under part VI of the draft, on gender balance in the United Nations
system, the Assembly would note the ICSC's work to assist
organizations to achieve gender balance, and endorse its request to
all organizations under paragraph 291 of its report [where it asked
common system organizations to bring the Beijing Platform for Action
to their managers' attention, to evaluate their recruitment pools to
ensure qualified women were being presented by Member States, and to
engage in human resources planning]. It would take note that the ICSC
would revert to this issue in 2001.

Part VII of the draft is on the Report of the Board of Auditors. By
its terms, the Assembly would request the Board to conduct audits of
the ICSC secretariat on a periodic basis, in accordance with financial
regulation 12.5 of the United Nations Financial Regulations and Rules
and the ICSC's statute.

The Committee also had before it a draft resolution on financing the
International Criminal Tribunal for Former Yugoslavia (document
A/C.5/53/L.22). By the terms of this draft, the General Assembly would
decide to revise the level of appropriation for financing the Tribunal
to a total of some $68.3 million gross (about $61.9 million net) for
the period 1 January to 31 December 1998. It would also decide to
appropriate some 103.4 million gross (about $94.1 million net) for the
period 1 January to 31 December 1999, to include provisions for
revised salaries and other conditions for the Tribunal's members.

It would further decide that the 1999 financing for the Tribunal will
take into account some $3.5 million in unencumbered balance for 1997,
the reduction of $515,300 from the 1998 initial appropriation, and
estimated income of $5,200 set off against the aggregated
appropriation. It would decide to apportion some $49.7 million gross
in accordance with the 1999 regular budget scale of assessments, and
some $49.7 million gross in accordance with the 1999 scale of
assessments for peacekeeping. It would welcome contributions already
made to the Voluntary Fund to support the Tribunal's work, and invite
future contributions.

By other terms, the Assembly would take note of the observations and
recommendations of the Advisory Committee on Administrative and
Budgetary Questions (ACABQ) report, and express concern on the late
submission of the budget proposal for 1999 as well as on the format of
the presentation. It would request the Secretary-General to improve
the presentation of future budget proposals and also to conduct, in
full cooperation with the Presidents of the Tribunals, a review,
without prejudice to the provisions of the Tribunal's statutes and
their independent character, and to report thereon to the relevant
United Nations organs.

The Assembly would express concern at high vacancy rates at the
Tribunal, request all measure be taken to address them and request the
Secretary-General to include information on monthly post incumbency in
future budget proposals. It would reaffirm that gratis personnel
should be phased

_________________________________________________________________

Fifth Committee - 6 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

out in accordance with its relevant resolutions, emphasize that
delegation of authority for human resources management should be in
accord with the Staff Rules and Regulations and emphasize that
recruitment should be in accordance with Article 101.3 of the Charter.
[Article 101.3 states that paramount consideration in employment shall
be securing the highest standards of efficiency, competence and
integrity, and that due regard should be given to recruiting staff on
as wide a geographic basis as possible.]

It would note with concern that a number of Tribunal workload
indicators are inaccurate, inflated and unjustifiable, request the
Secretary-General to ensure these indicators are monitored and checked
for accuracy and consistency, and also request him to include a
section in future budget proposals on the implementation of oversight
body recommendations. The Assembly would further request that he
maintain an accounting inventory of furniture and equipment acquired
since the Tribunal's establishment, and that he provide information on
items for which replacement or additional proposals are made, in the
format used in peacekeeping budget proposals, in the next financing
report.

By other terms in the draft, the Assembly would request the Secretary-
General to take all necessary actions to ensure the Tribunal is
administered efficiently and with maximum economy, but also stress the
need to provide it with resources adequate to fulfil its mandate and
respond effectively to new challenges. It would approve the budgetary
recommendations of the ACABQ, and note that the General Assembly has
approved a revised salary and revised conditions of service for
members of the Tribunal, resulting in additional requirements of
$219,700 net for 1999.

By the terms of a draft resolution on financing the International
Criminal Tribunal for Rwanda (document A/C.5/53/L.23), the Assembly
would request the Secretary-General to conduct the review of the two
Tribunals that the ACABQ had recommended. That should be done with a
view to evaluating their operation and functioning, in full
cooperation with the Presidents of the Tribunals and without prejudice
to the Tribunals' Statutes or their independent characters.

For financing the Tribunal in 1999, the Assembly would decide to
appropriate some $75.3 million gross (about $68.5 million net), which
would include provision for revised conditions of service for Tribunal
members, according to the text. It would set off against that amount
reductions from initial 1998 appropriations and an unencumbered
balance as at 31 December 1997. The Assembly would thus decide to
assess some $64.2 million for 1999 -- half according to the scale of
assessments used for the 1999 regular budget, and half according to
the scale used for peacekeeping operations for 1999.

By other terms, the Assembly would express concern about high vacancy
rates in both Professional and General Service categories, and request
the

_________________________________________________________________

Fifth Committee - 7 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

Secretary-General to take all necessary measures to address those.
Noting with concern that gratis personnel had been accepted in 1998,
it would reaffirm that such staff shall be phased out by the end of
1998.

Review of Efficiency

By a draft decision on guidelines for internal control standards
(document A/C.5/53/L.30), the Assembly would decide to take note of
the Secretary-General's report on these guidelines. It would endorse
the related observations of the ACABQ, and request the
Secretary-General to report to it at its fifty-fourth session, via the
Board of Auditors and the ACABQ, taking into account the Guidelines
for Internal Control Standards approved by the International
Organization of Supreme Audit Institutions as appropriate.

Also before the Committee was a draft resolution on results-based
budgeting (document A/C.5/53/L.35), by which the Assembly would decide
that the proposed programme budget for 2000-2001 should be prepared
and submitted according to existing budgetary procedures and
processes. The Secretary- General would be requested to submit
prototype fascicles for that budget.

By other provisions, the Assembly would request the Secretary-General
to submit to it, through the ACABQ, for consideration at its
fifty-fourth session, a report on the proposal for results-based
budgeting. The report should include, among other things, the
following elements: justification for the change, a comparison of the
two budgetary procedures, and identification of the weakness in the
present procedure and in the Administration that hindered their
implementation, as well as identification of measures needed to
improve the current budgetary procedure. The Joint Inspection Unit
would be requested to prepare a study by August 1999 of the experience
of United Nations system bodies that are using a results-based
budgeting approach.

Emphasizing that Member States should continue to be fully involved in
the budgetary process, the Assembly would decide that detailed
information on posts and non-post requirements should continue to be
provided to it and to the ACABQ, by other terms. Recognizing the
international, multilateral character of the Organization and
emphasizing that quantitative anticipated results should not be the
sole justification for resource requirements, the Assembly would
stress Member States' role in analysing resource allocation to all
sections of the budget.

1998-1999 Programme Budget

By a draft decision on the Development Account (document
A/C.5/53/L.34), the General Assembly would defer consideration of the
Development Account until the first part of its resumed fifty-third
session.

Another draft decision on review of efficiency (document
A/C.5/53/L.31) would have the Assembly decide to resume considering
the question of the pilot

_________________________________________________________________

Fifth Committee - 8 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

projects on budgetary practices and procedures at its resumed
fifty-third session, and request that the Secretary-General then
submit to it the additional information requested by the ACABQ.

A draft resolution on the first performance report on the programme
budget for 1998-1999 (document A/C.5/53/L.36) would have the Assembly
approve a net decrease of $48.2 million in appropriations for
1998-1999 and a net decrease of some $4.6 million in income estimates
in the same period, to be apportioned among expenditures and income
sections as indicated in the Secretary-General's report. It would
reiterate the need for the Secretary- General to ensure that resources
are utilized strictly for the purposes approved by the Assembly.

Also by the draft, the Assembly would reaffirm that it alone has the
authority to establish and abolish posts in the regular budget, and
request the Secretary-General to immediately intensify recruitment
efforts to reduce the number of vacancies. It would decide that the
vacancy rate for posts in Professional and higher categories should
not be more than 5 per cent at the end of the current biennium, and
that the Secretary-General should provide an explanation when those
rates are higher. It would regret the tendency towards excessive use
of consultants and ask that the Secretary-General, in presenting
budget performance reports, separately reflect the impact of average
vacancy rates in salaries and common staff costs for each budget
section.

By other provisions, the Secretary-General would be requested to
enhance the Office of the President of the General Assembly, and the
Assembly would decide that its President shall have full authority to
use funds provided in the budget for that Office for accomplishing
official responsibilities.

The General Assembly would take note of the procedures to be followed
in the proposed programme budget regarding activities of country
special rapporteurs whose mandates had expired in 1997 and that there
were no individual mandates included in the proposed programme budget
for the biennium 1998-1999. It would reaffirm that, in accordance with
resolution 52/220, no funds directly related to those non-mandated
activities could be committed pending consideration of the report on
the relationship between the treatment of perennial activities and the
use of the contingency fund. It would regret that the required report
was not considered before 1998 activities related to country special
rapporteurs were implemented.

In his report on recosting of outstanding statements of programme
budget implications and revised estimates (document A/C.5/53/49), the
Secretary- General says that items which had not been included in the
first performance report had now been recosted, changing overall
requirements for sections of the programme budget. Those changes are
as follows:

_________________________________________________________________

Fifth Committee - 9 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

Section Difference in thousands

1A Overall policy-making, direction $ 5.5 and coordination 3.
Peacekeeping operations and special missions 182.9 22. Human Rights
2.1 27. Administrative services 10.9 32. Staff assessment 15.8

The Fifth Committee may wish to note the recosting and reflect the
related adjustments in the revised appropriation for the biennium
1998-1999 to be recommended to the General Assembly, the report
states.

Also before the Committee was the draft report of the Fifth Committee
(document A/C.5/53/L.27), containing draft texts by which the
1998-1999 programme budget would be decreased by a little over $5.6
million, to reflect the Secretary-General's revised estimates and the
programme budget implications of resolutions adopted by the Assembly
on the recommendation of other of its Committees. Accordingly, the
budget level that the Assembly approved in 1997 for the current
biennium, of some $2.532 billion, would be adjusted to just under
$2.527 billion. By another text in the same report, the Assembly would
appropriate some $1.261 billion for 1999. Of that amount, almost
$1.218 billion would be assessed on Member States.

By another text in the draft report, the Assembly would note a balance
of just over $15.3 million in the contingency fund.

A draft resolution in the report pertaining to the Integrated
Management Information System (IMIS) (document A/C.5/53/L.32) would
have the Assembly approve an additional appropriation of $3.3 million,
while also requesting that the Secretary-General take action to ensure
that related activities are performed efficiently and economically and
that adequate and qualified staff are assigned to implement and
operate IMIS in all user departments.

Under other terms, the Assembly would defer consideration of the
Secretary-General's tenth progress report, the report of the
independent experts and the related report of the ACABQ to its resumed
fifty-third session, and request the Secretary-General to submit an
addendum to his report, taking into consideration the report of the
Office of Internal Oversight Services.

The document also contains a series of drafts by which the Assembly
would:

-- approve a subvention of $213,000 for the United Nations Institute
for Disarmament Research for 1999;

_________________________________________________________________

Fifth Committee - 10 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

-- decide to defer consideration of reports on the relationship
between the treatment of perennial activities in the programme budget
and the use of the contingency fund;

-- take note of the Secretary-General's report on a cost-benefit
analysis on conference facilities at the Palais Wilson in Geneva;

-- take note of his report on net budgeting and endorse the
observations of the ACABQ;

-- take note of the report on financial arrangements for the
International Court of Justice's dining room, understanding that the
United Nations does not subsidize that operation;

-- take note of the Secretary-General's report on the consolidation of
technical secretariat servicing of intergovernmental bodies, and
revert to the matter as appropriate; and

-- take note of the Secretary-General's report on conference
facilities at Addis Ababa and Bangkok and endorse the ACABQ's
recommendations in paragraph 5 of its report.

Review of Efficiency

A draft decision on the Fifth Committee's biennial programme of work
(document A/C.5/53/L.29) would have the Assembly approve that
programme for the biennium 1999-2000.

According to an annex to the text, the Committee's agenda for 1999
would contain the following items: review of efficiency; programme
budget for 1998-1999; proposed programme budget for 2000-2001;
improving the financial situation of the United Nations; Joint
Inspection Unit; pattern of conferences; scale of assessments for
apportioning the Organization's expenses among Member States; common
system; activities of the Office of Internal Oversight Services;
financing United Nations peacekeeping operations; administrative and
budgetary aspects of peacekeeping operations; report of the Economic
and Social Council; and appointments to fill vacancies in subsidiary
organs and other appointments.

The 16 items to be taken up in 2000 are: financial reports and reports
of the Board of Auditors; review of efficiency; programme budget for
2000-2001; programme planning; improving the United Nations financial
situation; administrative and budgetary coordination of the United
Nations with the specialized agencies and the International Atomic
Energy Agency; pattern of conferences; scale of assessments; human
resources management; common system; pension system; activities of the
Office of Internal Oversight Services; financing United Nations
peacekeeping operations; administrative and budgetary aspects of the
financing of United Nations peacekeeping operations;

_________________________________________________________________

Fifth Committee - 11 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

report of the Economic and Social Council; and appointments to fill
vacancies in subsidiary organs and other appointments.

A draft decision on review of efficiency (document A/C.5/53/L.28)
would have the General Assembly decide that the Fifth Committee should
continue considering 35 agenda items and reports. Those are: financial
reports and reports of the Board of Auditors; review of efficiency;
programme budget for 1998-1999; improving the United Nations financial
situation; pattern of conferences; scale of assessments; human
resources management; financing of the International Tribunals for The
former Yugoslavia and for Rwanda; administrative and budgetary aspects
of peacekeeping operations; the activities of the Office of Internal
Oversight Services; review of the implementation of General Assembly
resolution 48/218B [by which the Oversight Office was established];
and the Joint Inspection Unit (JIU).

Also, the Committee would continue considering the financing and
liquidation costs of United Nations peacekeeping operations. These
are: United Nations peacekeeping forces in the Middle East; activities
arising from Security Council resolution 687 (1991); the United
Nations Angola Verification Mission and the United Nations Observer
Mission in Angola; the United Nations Mission for the Referendum in
Western Sahara; the United Nations Operation in Somalia; the United
Nations Operation in Mozambique; the United Nations Mission in the
Central African Republic; the United Nations Observer Mission in
Sierra Leone; the United Nations Mission in Liberia; and the United
Nations Assistance Mission for Rwanda.

It would also consider the financing of: the United Nations Mission in
Haiti, the United Nations Support Mission in Haiti, the United Nations
Transition Mission in Haiti and the United Nations Civilian Police
Mission in Haiti; the Military Observer Group of the United Nations
Verification Mission in Guatemala; the United Nations Observer Mission
in Georgia; the United Nations Mission of Observers in Tajikistan; the
United Nations Transitional Authority in Cambodia; the United Nations
Peacekeeping Force in Cyprus; the United Nations Protection Force, the
United Nations Confidence Restoration Operation in Croatia, the United
Nations Preventive Deployment Force and the United Nations Peace Force
headquarters; the United Nations Mission in Bosnia and Herzegovina;
the United Nations Transitional Administration for Eastern Slavonia,
Baranja and Western Sirmium; and the United Nations Preventive
Deployment Force.

Statements

NESTOR ODAGA-JALOMAYO (Uganda) said that it was more important that
the Committee spend time on the remaining unresolved issue this
morning, rather than on those already resolved. He proposed that the
formal meeting be adjourned so that the Committee could focus on the
unresolved item and then adopt everything in one formal meeting,
rather than address some matters now and the remainder later.

_________________________________________________________________

Fifth Committee - 12 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

SHARON BRENNEN-HAYLOCK (Bahamas) recalled that the Committee, when it
had finished the final round of informal consultations yesterday
evening, had decided that a small group representative of regional
groups and those Member States not part of regional groups would meet
to discuss the unresolved item. This morning the small group was to
meet again to provide its members with the responses to its
consultations from the larger groups. The formal meeting could
continue while this small group met. A number of delegations were not
really involved in negotiations on the unresolved issue, and they
could complete the Committee's work on items where consensus already
existed.

Mr. ODAGA-JALOMAYO (Uganda) said that the informal group had been
formed to facilitate discussion. Those not taking part in it might
still have a great interest in the unresolved item. Uganda had such
interest. He proposed again that the meeting be adjourned pending
resolution of the unresolved item.

WEN CHIN POWLES (New Zealand) said that she stood ready to continue
the formal meeting. It was a simple way to use time effectively, given
the short time still available for the Committee's activities.

HUMAYUN KABIR (Bangladesh) said he would be very reluctant for the
Committee to have formal and informal consultations at the same time.

Mrs. BRENNEN-HAYLOCK (Bahamas) said she would join the consensus on
whatever the Committee decided, but that the simultaneous meeting
would involve the eight people who had met last night, representing
regional groups and those unrepresented in regional groups. They would
simply be reporting what had arisen from the larger groups' internal
discussions. After that, those representatives would go back to their
larger groups to report.

ERLING SKJONSBERG (Norway) supported the statements made by the
representatives of the Bahamas and New Zealand.

MOVSES ABELIAN (Armenia), Committee Chairman, pointed out that Rule
116 of the General Assembly Rules of Procedures only allowed for two
speakers in favour and two against a motion to adjourn a debate, and
then the Committee must decide.

Mr. ODAGA-JALOMAYO (Uganda) thanked the Chairman for drawing the
Committee's attention to the relevant Rule of Procedure. He had not
anticipated that his proposal would go to a vote. His idea was that it
would just be the best use of time. One very important item had not
yet been agreed upon. It would be more useful to engage in
consultations to resolve that pending issue, rather than spend time on
what had already been agreed to.

The CHAIRMAN said each Member State had an opinion and was free to
express it. However, the Committee had a responsibility to follow the
General Assembly Rules of Procedure.

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Fifth Committee - 13 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

AHMED DARWISH (Egypt) said the Committee should not spend time
discussing the proposed adjournment, as there were important matters
pending that still needed to be resolved. He was flexible, but if a
formal meeting would expedite the issuance of documents for the
meeting of the General Assembly, he would support its continuation.

The CHAIRMAN drew the Committee's attention to the items for
consideration by the Committee, as listed in the Journal. He proposed
that the formal meeting continue until the first six matters listed
had been dealt

with. The other listed items would be left until the Committee could
take action on all remaining items.

Mr. ODAGA-JALOMAYO (Uganda) said it was not his intention to halt the
work of the Committee. His proposal did not mean he had a preference
for a particular item. He asked what the hurry was to adopt those
matters which were already agreed upon. He would not subscribe to
selecting items for consideration. Rather he wanted to go to informal
consultations to approve all remaining matters in one go.

The CHAIRMAN explained that taking some action would facilitate the
work of the General Assembly, which had indicated it would finish this
part of its fifty-third session today. His proposal was only aimed at
facilitating the work of the Committee.

JAN JAREMCZUK (Poland) said he supported the Chairman's proposal.

NARARETH INCERA (Costa Rica) said she supported the proposal from the
representative of Uganda.

Mr. DARWISH (Egypt) appealed to his colleague from Uganda to avoid a
vote on the issue. That was not necessary and more important issues
were decided in the Committee by consensus. He hoped that Uganda's
representative would agree to have the formal meeting to facilitate
the work of the Committee.

ADAM ADAWA (Kenya) asked who had suggested a vote on the proposals.
The representative of Uganda had only asked that the remaining issue
before the Committee be resolved, which could be done in 40 minutes.
He asked why things were being proposed that were against the wishes
of the majority of the Committee.

The CHAIRMAN explained that he had not called for a vote. Rather a
decision was required by Rule 116 of the Rules of Procedure. He
proposed the meeting be suspended for 10 minutes to discuss what
action the Committee would take.

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Fifth Committee - 14 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

Upon the meeting's resumption, the CHAIRMAN announced that late last
night, Prayono Atiyanto (Indonesia) had become the father of a baby
girl.

PRAYONO ATIYANTO (Indonesia) said that after a long and difficult
delivery, his daughter had been born healthy. He and his wife greatly
appreciated the support Committee members had offered. He hoped his
daughter would grow to be healthy and contribute to the international
community. He hoped she would be as good as the representative of
Austria, as tough as the representative of Cuba, and as patient as the
representative of New Zealand. He hoped Committee members would be her
extended family.

NICK THORNE (United Kingdom) said he was sure the new baby would be a
formidable force in twenty years' time. He then suggested, based on
the informal discussion during the suspension, that the meeting be
suspended for one hour.

The meeting was suspended.

Upon resumption of the meeting, the CHAIRMAN, said that during the
suspension, informal consultations had continued. He invited the
coordinator, Mrs. Brennen-Haylock (Bahamas), to advise the Committee
on the status of those consultations.

Mrs. BRENNEN-HAYLOCK (Bahamas) said that, at this stage, she had
nothing concrete to report except that the representative group would
need more time to continue discussions so as to have something to
report shortly on the proposed draft resolution on the budget outline.
The atmosphere in the representative group discussions was productive
and, if it so continued, she would have something positive to report
shortly.

Mr. ATIYANTO (Indonesia), speaking for the "Group of 77" developing
countries and China, expressed his appreciation to the coordinator of
the informal consultations. As she had mentioned, the atmosphere in
the small informal consultative group was good but the consultations
needed to continue. It was also critical to understand that the
process could not continue indefinitely. As all were aware, time was
of the essence. The Group fully understood the need to proceed on the
issue. The Committee also needed to be pragmatic and realistic. He did
not hesitate to say that the Group possessed the full spirit of
consensus, but pragmatism was also required. At a certain point
consultations needed to stop, but he did not know how they would stop.
No pressure should be put on any Member State or group of Member
States. This must be a collective effort, if the spirit of consensus
was to be pursued. However, there was a limit.

MUHAMMAD YUSUF MSHAMBA (United Republic of Tanzania) said he echoed
the sentiments of frustration expressed by the chairman of the Group
of 77 and China. His statement had been pertinent and the Committee
should take it into consideration. Discussions could not continue
without any specific time

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Fifth Committee - 15 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

frame. The Committee's work had to be finished today, and the General
Assembly had to finish its work today.

He asked the Secretariat what would happen if the Committee could not
reach agreement on the budget outline. The Secretary-General could
perhaps go ahead and prepare a budget anyway. He asked the Secretariat
to enlighten the Committee on the consequences of no draft
recommendation to the General Assembly on the budget outline.

THOMAS SCHLESINGER (Austria) said that prior to resolution 41/213,
proposed programme budgets had been prepared without a budget outline.
The introduction of the outline had ended a crisis which had been
perceived as a real threat to the Organization. The Organization's
"wise persons" had consulted on the matter for a year and eventually
come up with the idea of the outline. The Assembly had then adopted
that concept via resolution 41/213. If the Committee failed to come up
with a budget outline, it would mark a dramatic departure from that
resolution. The Committee should not contemplate that move. The
outline was too important; failure to approve it would put the
functioning of the United Nations at risk.

ZHANG WANHAI (China) said the outline was necessary. He hoped all
Member States would adhere to the provisions of resolution 41/213. The
Committee's decision should be in accordance with that text. Time was
of the essence; a decision should be taken today.

Mr. DARWISH (Egypt) said he was pleased to hear from the coordinator
that progress was being made on the item. The Committee should strive
to achieve a budget outline, based on the broadest possible agreement,
and in line with the provisions of resolution 41/213.

JEAN-PIERRE HALBWACHS, United Nations Controller, said he hoped the
Assembly would guide the Secretary-General through a budget outline.
He then explained that according to financial resolution 3.4, if the
outline was not adopted, the Secretary-General would submit his
proposed programme budget for the following period, but there would be
no contingency fund.

Mr. ATIYANTO (Indonesia) asked to hear the views of the Chairman of
the ACABQ.

C.S.M. MSELLE, ACABQ Chairman, said that if the Committee failed to
approve an outline, the status of resolution 41/213 would be in
jeopardy. The Secretary-General, as Chief Administrative Officer, was
required to propose a budget and present it to the General Assembly.
That proposed budget would be based on the Secretary-General's own
judgement as to what resources were required to implement the mandates
entrusted to him by the General Assembly. The Secretary-General would
submit a budget proposal at a level he determined, and the General
Assembly would then decide whether the level proposed was more or less
what should be accepted. Failing to adopt an outline would mean

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Fifth Committee - 16 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

reverting to the situation prior to 1986, and it was not appropriate
at the present time to contemplate the consequences of such a move.

The CHAIRMAN suggested that the meeting be suspended to allow
"informal informal" consultations to continue. While he was unable to
propose a time for the meeting to resume, he hoped it would be soon.
He suggested that at 3 p.m. the entire Committee return to informal
consultations.

Mr. ATIYANTO (Indonesia), for the Group of 77 and China, asked about
the timing of the "informal informal" consultations. The Group also
needed time for consultations. The CHAIRMAN asked the coordinator of
the informal consultations to make a statement about the continuation
of informal consultations.

Mrs. BRENNEN-HAYLOCK (Bahamas) suggested that the small informal group
adjourn to the back of the room upon suspension of the meeting. It
should be finished by 1:45 p.m., so that the Chairman of the Group of
77 and other representatives could report back to their groups.

The CHAIRMAN proposed that the small group informal consultations
continue at the suspension of the meeting, and that the Committee
would meet informally at 3 p.m.

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Fifth Committee - 17 - Press Release GA/AB/3282 45th Meeting (AM) 17
December 1998

The meeting resumed the following day, Friday, 18 December, at 3 p.m.

Appointments to Fill Vacancies

MOVSES ABELIAN (Armenia), Committee Chairman, advised the Committee of
the nomination of Kenshiro Akimoto (Japan) to fill the unexpired
portion of the term of office of Tadanori Inomata (Japan) on the
United Nations Staff Pension Fund.

The Committee decided by acclamation to recommend Mr. Akimoto to the
General Assembly for the position.

Action on Texts

The Committee turned its attention to the programme budget
implications of resolution A/53/L.66, related to the situation in
Afghanistan and its implications for international peace and security.

The representative of Pakistan thanked the Secretariat for forwarding
replies to many of his questions. He was still of the view that some
of the answers were not satisfactory. There was hardly any
justification for the extensive budget increases. He had also asked
for the issuance of a corrigendum on errors and omissions, and he
hoped it would be issued soon. He would not, however, stand in the way
of consensus.

The CHAIRMAN then proposed that the Committee recommend the following
draft decision to the General Assembly:

"Should the General Assembly adopt draft resolution A/53/L.66, an
additional appropriation of $5,896,200 would be required under section
3 of the programme budget for the biennium 1998-1999. An additional
appropriation of $412,100 would also be required under section 32,
Staff assessment, offset by the same amount under section 1, Income
from staff assessment."

The Committee approved that draft without a vote.

The Committee then turned to a draft resolution on the common system,
submitted by its Vice-Chairman, MANLAN AHOUNOU (Côte d'Ivoire). He
said it would not be intellectually honest if he failed to report the
considerable input of the Secretariat and the International Civil
Service Commission (ICSC), without which it would not have been born.

The representative of Morocco said that there had been agreement in
informal consultations that introduction of the draft would include a
statement which he had not heard.

The Committee suspended to allow its to consult with the
Vice-Chairman.

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(PM) 18 December 1998

Upon the meeting's resumption, the CHAIRMAN said the Committee would
return to the item later in the meeting.

The Committee then considered the draft resolution on financing the
International Criminal Tribunal for the Former Yugoslavia (document
A/C.5/53/L.22).

WEN CHIN POWLES (New Zealand) introduced the text. She said the
agreement reached on the level of funding for 1999 should not be
considered a precedent for future action on funding the Tribunals and
peacekeeping operations.

Without a vote, the Committee approved that draft.

It next turned to the draft resolution on financing the International
Criminal Tribunal for Rwanda (document A/C.5/52/L.23).

Ms. POWLES (New Zealand) introduced that text and said that her
earlier comments related to the Rwanda Tribunal as well.

The representative of Uganda drew attention to a technical error in
the text.

The Committee then approved the draft without a vote.

The representative of Japan said that the work of both Tribunals was
of great importance, but those bodies should not prepare and use
budgets as they liked. Many problems had been identified, such as high
vacancy rates and large unencumbered balances, indicating that there
was no accountability in the budgetary process. In light of such
"easy-going" tendencies, something should be done on the two
Tribunals' management. Future budget proposals should reflect greater
accountability.

The representative of the United States said the United States had
joined consensus because of the importance of the Tribunal's work, but
elements of the draft did not satisfactorily address its concerns, for
example the paragraph that took note with appreciation of the work of
the Tribunal. Much still needed to be done to address the issues
raised by the Office of Internal Oversight Services and other
management concerns. The Tribunal management must address itself to
improvement. She hoped the review recommended in the draft would
contribute to improvements.

She said that nothing in the resolution should be seen as an
endorsement of the idea that the two Tribunals should have separate
Prosecutors. The matter was in the purview of the Security Council.
The United States was also not comfortable with the transfer of seven
Hague-based staff from the establishment of the Rwanda Tribunal to the
establishment of the Former

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Fifth Committee - 19 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

Yugoslavia Tribunal. That should not be viewed as in any way reducing
the Prosecutor's role in managing the Rwanda Tribunal.

The Committee then took up the draft resolution on guidelines for
internal control standards (document A/C.5/53/L.30), submitted by its
Chairman.

The Committee approved the draft without a vote.

It then took up the draft on results-based budgeting (document
A/C.5/53/L.35), also submitted by its Chairman.

The Committee also approved that draft without a vote.

The representative of the United States, speaking in explanation of
position, said that the resolution was not all she had hoped for. She
noted that the Secretary-General would be producing results-based
prototypes for the next budget and that the ACABQ would comment on
them. The United States had long supported results-based budgeting and
believed that it was already possible within the existing rules. The
Secretary-General should go ahead and establish a mechanism that was
more focused on results. The United States looked forward to the
continued evolution of the matter.

The representative of Mexico said he was looking forward with interest
to the prototypes -- he would have more to say about results-based
budgeting when they were available.

The representative of New Zealand said she would be making a
statement, also on behalf of Canada and Australia, this evening at the
General Assembly plenary.

The representative of Pakistan said he looked forward to the requested
Secretary-General's reports, and agreed that the ACABQ had been
invited to comment on the prototypes the draft requested. He also
looked forward to a comprehensive and analytical report from the ACABQ
which would facilitate consideration of the issue. He then proposed a
minor amendment to the draft.

The Committee approved the amendment.

The Committee then turned to the draft decision on the impact of the
implementation of pilot projects on budgetary practices and procedures
(document A/C.5/53/L.31), submitted by its Vice Chairman, SHARON
BRENNEN- HAYLOCK (Bahamas), which it approved without a vote.

The Committee then considered a draft resolution on the Integrated
Management Information System (IMIS) (document A/C.5/53/L.32), also
submitted by Mrs. BRENNEN-HAYLOCK (Bahamas), and also approved without
a vote.

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Fifth Committee - 20 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

The representative of Austria, speaking in explanation of position on
behalf of the European Union, said that the Union strongly believed
that IMIS was important. Having studied the outcome of the independent
expert review, the Union shared the experts' opinion that the level of
investment was reasonable. The successful implementation of IMIS would
depend on the provision of the necessary funding, particularly for
implementation in field offices. Not to provide such funding would be
unwise, and would risk undermining the considerable investment already
made.

The Union had joined the consensus, but it believed that the Committee
should revert to the issue as a matter of priority.

The meeting was then suspended for 10 minutes.

When the meeting resumed, the Committee reverted to consideration of
the draft resolution on the United Nations common system postponed
earlier in the meeting.

Mr. AHOUNOU (Côte d'Ivoire), Committee Vice-Chairman, spoke on the
draft. He said it was the understanding of the Committee that all
activities of the ICSC related to human resources management should be
programmed in such a manner that the Commission would derive the
maximum benefit from such activities.

The Committee then approved the draft resolution without a vote.

The Committee next turned to a draft resolution on the Development
Account (document A/C.5/53/L.34), submitted on behalf of the Chairman
by HUMAYUN KABIR (Bangladesh), who said that informal consultations
had been held, but Member States needed more time to discuss the
issue, so they had chosen to recommend deferral.

The Committee approved the draft without a vote.

The representative of Austria, speaking in explanation of position for
the European Union, said the Union had supported the concept of the
Development Account from the outset and was prepared to see savings
derived from efficiency gains used for development activities. The
Union did not consider that a budget reduction exercise. It should not
affect the proper implementation of mandated activities, and should be
sustainable over time. He endorsed the Secretary-General's most recent
proposals approved by the ACABQ.

The Union found it a great pity that other delegations, particulary
those from developing countries, who would benefit from the
Development Account, could not agree on the Secretary-General's
proposal, he said. It was unfortunate that the Committee had to resort
to the simply procedural draft resolution just adopted, which
postponed any substantive decision.

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Fifth Committee - 21 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

He said he hoped that future discussions would be more fruitful.
Nothing in that procedural draft resolution undermined the
Secretary-General's long-standing responsibility to identify and
implement efficiency measures within the Organization, something which
could not be submitted for prior approval from the General Assembly.
He hoped that future discussion would lead to agreement on the
modalities for the transfer of resources released by internally
generated efficiency measures to the Development Account for the
benefit of those who needed them most.

The representative of Indonesia, speaking on behalf of the "Group of
77" developing countries and China, said that the Group deeply
regretted that the Fifth Committee had failed to take a substantive
decision. The resources appropriated under the relevant budget section
should be used for new projects for developing countries. The
guidelines the Group had previously suggested should be employed to
determine projects to be funded.

It was the strong wish of the Group that consideration of the item
should be given priority in the Committee's resumed session. That
would permit progress to be achieved, while taking fully into account
the views of developing countries who would be the sole beneficiaries
of the Development Account.

The representative of Japan said that he, too, was disappointed with
the lack of a substantive draft, particularly as Japan had been one of
the initiators of the Development Account. He was saddened by the
decision, but believed it was the only thing that could be done at
this stage. Japan would like to reflect again on the item next year.
This year, he had often repeated one sentence -- "It is too late". He
would try to find a new sentence for next year.

The representative of Poland aligned himself with the statement made
for the Union.

The representative of Uganda said the issue had been of great
importance to his delegation, and he was disappointed, once again,
that the Assembly could not take a substantive decision on the matter.
He hoped that when it resumed considering the matter, a decision would
be taken so the money could be put into use. Regarding the European
Union's statement, he said that while it had given the impression that
developing countries had been unwilling to negotiate for a substantive
decision, that did not accurately portray what had occurred.

The representative of the United States said her delegation was
disappointed that the Committee was again unable to decide on the
modalities or use of the amount in the Account. The Secretary-General
had the authority and responsibility to ensure that mandates were
implemented in the most efficient manner. He should continue to pursue
efforts to increase efficiency. She hoped the matter would be resolved
soon.

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Fifth Committee - 22 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

The representative of India associated himself with the statement made
by Uganda's representative.

The representative of Algeria regretted that the Committee had been
unable to take a decision of substance. He deplored the statement made
by the Union: developed and developing countries equally shared
responsibility for the fact that the Committee had not been able to
come up with a decision. Developing countries had approved the
Secretary-General's proposal to create the Account, and the Union's
remarks were inappropriate.

The representative of Cuba said negotiations on the item had been
lengthy, and she regretted that a substantive decision had not been
taken. She hoped the matter would be addressed as a priority in the
resumed session, and a decision taken, particularly regarding the use
of the $13 million already in the Account. She agreed with comments
made about the collective responsibility of the failure to reach a
decision on the matter.

The representative of China agreed with those comments as well.

The representative of Indonesia, speaking for the Group of 77 and
China, deeply regretted that the statement just delivered by the
representative of Austria for the Union did not reflect the process in
which the matter had been considered.

The representative of Kenya expressed regret that the issue had not
been finalized. He fully associated himself with the statements made
by the Group of 77 and the supplementary statements by its members.
Members must respect each other -- all States bore equal
responsibility.

The Committee next took up the report of the Secretary-General on the
recosting of outstanding statements of programme budget implications
and revised estimates (document A/C.5/53/49).

C.S.M. MSELLE, Chairman of the ACABQ, orally presented that body's
report on the matter.

He said that the Secretary-General had advised that the effect of
recosting of expenditure not included in the performance report,
arising under several sections, had led to a reduction of $195,500.
The Fifth Committee might wish to note that recosting and to reflect
the adjustment in the appropriations for the biennium 1998-1999.

The CHAIRMAN of the Fifth Committee then proposed the Fifth Committee
recommend that the General Assembly take note of the report of the
Secretary- General on the recosting of outstanding statements and
decide that the recosting and the related adjustments should be
reflected in the revised appropriations for the biennium 1998-1999.

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Fifth Committee - 23 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

The Committee decided to do so.

The Committee then turned its attention to the report of the
Secretary- General on the contingency fund: consolidated statement of
programme budget implications and revised estimates (document
A/C.5/53/48).

Mr. MSELLE, ACABQ Chairman, orally introduced that body's report on
the subject. He said that the ACABQ recommended an additional
appropriation, so the balance of the fund would become $15,307,800.

The Fifth Committee Chairman then proposed that the Fifth Committee
recommend that the General Assembly take note of the report of the
Secretary- General on the contingency fund and note that a balance of
$15,307,800 would remain in the contingency fund.

It was so decided.

Turning then to the first performance report for the biennium
1998-1999, the Chairman introduced the related draft resolution
(contained in document A/C.5/53/L.36) on behalf of the Vice-Chairman,
Mrs. BRENNEN-HAYLOCK, who had coordinated discussion.

The Committee approved the draft without a vote.

Next taking up the draft report of the Fifth Committee (document
A/C.5/53/L.27), the Chairman said that the various parts of draft
resolution I contained in the report had been adopted at previous
meetings.

Draft resolution II in the report was approved without a vote.

The Committee then approved draft decision I in the report -- on
financial arrangements associated with the dining room at the
International Court of Justice -- without a vote. In the same manner,
it approved draft decision II -- on the relationship between the
treatment of perennial activities in the programme budget and the use
of the contingency fund -- and draft decision III -- on the
development account.

The Committee next took up the draft resolution on the proposed
programme budget outline for 2000-2001 (document A/C.5/53/L.33),
submitted by the representative of the Bahamas, the Committee's
Vice-Chairman.

[By terms of the draft, the Assembly would invite the
Secretary-General to prepare his proposed programme budget for
2000-2001 on the basis of a total preliminary estimate of $2.545
billion at revised 1998-1999 rates. That estimate would include some
provision for political missions expected to be extended or approved
during the course of the biennium. The Assembly would decide that the
anticipated reduction of $19.8 million related to compensating
economies would not be included in the budget outline, and recognize
that

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Fifth Committee - 24 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

efforts to achieve efficient utilization of resources was an ongoing
process and should not adversely affect the implementation of mandated
programmes and activities.]

The representative of the United States said her delegation could not
join agreement on the amount of $2.545 billion for 2000-2001, and
would speak further during the General Assembly's plenary session.

The representative of Japan said many governments, including his own,
were committed to streamlining their administrative structures. The
United Nations, whose expenses were borne by Member States, could not
be isolated from that general international trend. Unless the
Organization was viewed as being as efficient as possible, his
Government would find it difficult to persuade its citizens to support
it. Japan was of the view that the Organization had not yet been
streamlined to the maximum.

Shouldering one fifth of the United Nations expenses, Japan was
convinced that it was possible to reduce the budget amount, and
prepare a programme budget for the next biennium at the same level as
the budget for 1998-1999. The budget figure of $2.545 billion had been
the result of intensive negotiations, but was still too high. Japan
could not support the consensus. A programme budget proposal to be
based on that figure would not be acceptable to his delegation.
However, in view of the fact that today was the last day of the main
part of the Assembly's fifty-third session, and that the budget
outline was only one step in the process of preparing and approving a
budget, his delegation would not block the draft from being approved
without a vote.

The representative of Indonesia, speaking on behalf of the Group of 77
and China, said the agreed level of the preliminary estimate that the
Committee would like to approve by consensus did not, in any way,
satisfy the Group of 77 and China. The Group believed in the validity
and technical justification of the preliminary estimate proposed in
the report of the ACABQ of $2,568.8 million. Demonstrating its
constructive spirit and responsibility, the Group had agreed to join
the consensus on a preliminary estimate of the outline of $2,545
million, at revised 1998-1999 rates, and to allow the Fifth Committee
to approve the draft without a vote.

The Group also agreed to join the consensus that the contingency fund
be set a 0.75 per cent, and the affirmation of the budgetary procedure
in accordance with General Assembly resolution 41/213.

The representative of Austria, speaking on behalf of the European
Union, said the Union reserved its right to state its position in the
plenary.

The representative of Uganda said the Group of 77 had settled for a
position very far from what it had proposed. His understanding was
that the issue before the Committee was the preliminary estimate to
guide the

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Fifth Committee - 25 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

Secretary-General in preparing his budget proposal. Only when
negotiating the final budget would the Committee get into detail. When
the Secretary-General prepared his proposed budget, he would be using
$2.545 million, and then whatever was agreed upon at that time would
determine the final level of the budget.

The representative of Libya drew attention to an error in paragraph 10
of the Arabic text of the draft.

The representative of Pakistan drew attention to two errors.

The CHAIRMAN proposed an oral amendment to address one of the
representative of Pakistan's concerns in the language of paragraph 2
of the draft.

Mr. MSELLE, Chairman of the ACABQ, also drew attention to two further
typographical errors in the text.

The representative of Poland also drew attention to a typographical
error.

The representative of Cameroon said Cameroon continued to be concerned
at the downward trend of means available to the Organization to cope
with its obligations. Additionally, the priorities reaffirmed in the
draft should be taken into account by the Secretary-General, in
particular when he made his budget proposal. Cameroon would be severe
in defending African priorities. Programme managers must clearly
demonstrate that they recognized Africa as a priority when developing
their budget proposals. With regard to the United Nations Information
Centres, everything must be done to ensure that the Centres in Africa
were no longer treated as poor relatives.

The Committee then approved the draft, without a vote.

The representative of Mexico said the gravity of the financial crisis
and the drastic decline in oil prices had strongly impacted his
country's economy. His Government had had to carry out significant
budget reductions, and in 1999 those would be even more severe. He was
therefore dissatisfied with the proposed increase for the budget for
2000-2001. He decisively supported incorporating special missions in
the outline, but the amount that had been included had not been
justified in light of past experience. He had not heard convincing
arguments on the need for the level of those resources. Also, the
outline was not consistent with the seriousness of the international
financial crisis.

Despite those reservations, his delegation had joined the consensus,
as it attached the greatest priority to the work of the Organization.
Committed to the principles of the United Nations Charter, Mexico had
always said the Organization should be given the resources it required
to carry out its

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Fifth Committee - 26 - Press Release GA/AB/3282 Resumed 45th Meeting
(PM) 18 December 1998

mandates. Further, his delegation had always sought to participate in
consensus. His country would continue to be a responsible backer for
the Organization.

The representative of Cuba said her delegation would make an
explanation of position in the plenary. Regarding the modalities used
for negotiating the draft, Cuba was pleased by the way it had been
represented, but in the future, it would not be in favour of the
procedures that had been used. All paragraphs of all draft resolutions
should be negotiated by all Member States.

The CHAIRMAN said he had tried three times to conduct negotiations
with all Member States, but delegations had not wanted to do so.

The representative of Japan said he understood that the draft
resolution had been approved without a vote, not by consensus.

The CHAIRMAN confirmed that.

The representative of the Russian Federation said he hoped the climate
of trust and willingness to make concessions would prevail in future
years. His delegation had joined the draft resolution based on the
importance of ensuring broadest possible agreement on such an
important matter. He believed that, in preparing the draft budget for
the next two-year period, the Secretary-General would be guided by the
need to enhance the Organization's efficiency to ensure zero budget
growth without negatively impacting mandated programmes and
activities.

The representative of Syria said his delegation had not directly
participated in the informal consultations on the matter, but his
position had been expressed by the representative of Indonesia,
speaking for the Group of 77 and China. He associated himself with the
statement made by that representative, as well as other members of the
Group, Cuba in particular. He drew attention to a technical error in
the Arabic language text.

The representative of Indonesia thanked Committee members for their
constructive and serious spirit during negotiations.

Next, the Committee took up the draft decision regarding its biennial
programme of work (document A/C.5/53/L.29), approving that text
without a vote.

The CHAIRMAN said the first part of the Assembly's resumed session
would be held from 8 to 26 March 1999 and the second part from 10 to
28 May 1999. The Committee then took up the draft decision on
remaining items (document A/C.5/53/L.28), approving the text without a
vote.

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