GA/AB/3084

FIFTH COMMITTEE APPROVES FINANCING FOR PEACE-KEEPING OPERATIONS, DEFERS ACTION ON ADMINISTRATIVE REPORTS, APPROVES 13 DRAFTS

The General Assembly would authorize the Secretary-General to commit almost $10 million gross to finance the United Nations Mission for the Referendum in Western Sahara (MINURSO), United Nations Peace Forces in the former Yugoslavia (UNPF) and the United Nations Observer Mission in Liberia (UNOMIL), if it adopts three of the 13 draft texts approved by the Fifth Committee (Administrative and Budgetary).

Regarding a fourth mission, the United Nations Mission in El Salvador (ONUSAL), the Assembly would credit to Member States an unencumbered balance of about $15 million gross in the mission's account. In other action, the Committee approved three draft decisions which took note of and/or deferred to the fifty-first session of the Assembly various reports submitted to the Committee.

The drafts on peace-keeping financing would have the Assembly:

-- authorize up to $6.2 million gross ($5.8 million net) for the period 1 to 31 October to liquidate the Peace Forces and provide common support. The Forces are the United Nations Protection Force (UNPROFOR), the United Nations Confidence Restoration Operation in Croatia (UNCRO), the United Nations Preventive Deployment Force (UNPREDEP) and the United Nations Peace Forces Headquarters;

-- authorize up to $2.6 million gross ($2.5 million net) for MINURSO for 1 to 31 October;

-- authorize the use of the resources available to UNOMIL and, if necessary, the commitment of $1.1 million gross ($1 million net) up to the end of October;

-- appropriate and apportion for ONUSAL $826,000 gross ($745,300 net) for the period 1 December 1994 to 30 April 1995, and $16,300 gross ($17,700 net) for the period 1 to 31 May 1995. The sums had been authorized. Further,

Fifth Committee - 1a - Press Release GA/AB/3084 67th Meeting 13 September 1996

the $14.9 million gross ($13.5 million net) in unencumbered balance would be credited to Member States. Interest and miscellaneous incomes of $256,674 would all be transferred to the Peace-keeping Reserve Fund.

Also at the meeting, the Committee received an update on the United Nations financial situation from the Under-Secretary-General for Administration and Management, Joseph E. Connor. He projected that the combined cash balance in the peace-keeping accounts and the General Fund would be $623 million at the end of 1996 -- with a negative general fund balance of $243 million and a positive sum of $866 million in peace-keeping accounts. The Organization would be owed $2.2 billion at that time. He also spoke of the cost-cutting measures that had been undertaken by the Secretariat to achieve mandated savings of $154 million.

After Mr. Connor's presentation, the representative of Costa Rica, also speaking for the "Group of 77" developing countries and China, said that those States felt that the economy measures should have been considered by the Assembly before they were implemented. While the Assembly had set a vacancy rate of 6.4 per cent for Professionals and General Service staff, the Secretariat had reported achieving rates above that. She later proposed that the Committee take a decision to relevant paragraphs of resolutions 50/230 and 50/231, reaffirming Assembly authority.

Following request for time to consider the proposals, the Committee deferred action pending informal consultations. After a break in the meeting, Costa Rica had proposed action on resolutions 50/214, 50/230 and 50/231 and to request the Secretary-General not to proceed with the abolition, discontinuation or freezing of any post in the context of the 1996-1997 budget before the Assembly's approval. In response to a request by Ireland, on behalf of the European Union, for still more time, the Committee delayed further action pending informal consultations on the matter.

Turning to agenda items on the administrative and budgetary aspects of peace-keeping missions, the review of United Nations efficiency, the scale of assessments, financial statements and auditors' reports, the Committee approved several oral decisions to take note of and/or deferred some reports.

Those decisions related to the 1996-1997 budget include: the Secretary- General's reports on the implementation of the programme budget for the 1996- 1997 biennium; construction projects at Addis Ababa and Bangkok; special representatives and envoys and on unforeseen and extraordinary expenses; four reports on standards of accommodation for air travel; three reports on review of travel and related entitlements on the lump-sum option for travel by air and related entitlement; and granting of technical assistance to least developed and other developing countries that are members of the United Nations Commission on International Trade Law (UNCITRAL); and two related Advisory Committee on Administrative and Budgetary Questions (ACABQ) reports. Consideration of a Joint Inspection Unit (JIU) report on travel in the United Nations: Issues of Efficiency and Cost Savings was also deferred.

Fifth Committee - 1b - Press Release GA/AB/3084 67th Meeting 13 September 1996

Under the scale of assessments, the Committee deferred the Committee on Contributions' report of its 1996 annual session.

Regarding the review of efficiency of the United Nations administrative and financial functioning, the Committee took note of the following: a note by the Secretary-General on the JIU report on managing works of art in the United Nations; and two reports by the Secretary-General -- one on facilities and management, and the other on procedures for implementation of Article VIII, section 29 of the Convention of Privileges and Immunities. It also took note of and deferred the Secretary-General's report and that of the Ad Hoc Intergovernmental Working Group of Experts, on jurisdictional and procedural mechanisms for the proper management of the United Nations resources and funds; the note by the Secretary-General transmitting views of the Panel of External Auditors and Board of Auditors on how oversight functions could be improved; and the Secretary-General's report on the review of efficiency of the United Nations administrative and financial functioning.

Statements were made by the representatives of Canada, Syria, United States, United Kingdom, Uganda, Iran, France, Tunisia, Mexico, Cuba, Algeria, Austria, Indonesia, Belgium and India.

The Director of the Peace-keeping Financing Division of the Department of Administration and Management, Leon Hosang, also spoke.

The Committee is expected to meet again Friday, 13 September, to conclude the fiftieth session.

Report Drafts before Committee

The Fifth Committee (Administrative and Budgetary) met to hear a statement on the United Nations financial situation from the Under-Secretary- General for Administration and Management, Joseph E. Connor. It was also scheduled to consider draft decisions relating to the financing of a number of peace-keeping operation as well as to take-up reports on administrative and budgetary aspects of peace-keeping. Other reports before the Committee relate to such areas inventory controls; 1996-1997 budgetary savings; special representatives, envoys and related positions; United Nations efficiency; and facilities management.

Financial Situation

In his 1 August report on the financial situation at the United Nations (document A/50/666/Add.1), the Secretary-General forecasts that a combined cash balance of $550 million would be left in the Organization coffers at the end of December. That would be based on a negative $287 million balance for the combined General Fund (the regular budget, the Working Capital Fund and the Special Account) and a positive one of $837 million for peace-keeping missions. That is an overall improvement from an earlier combined estimate of $388 million, but a worse regular budget position.

He warns that even if all anticipated contributions are paid, the combined General Fund will end the year in deficit and have to borrow from peace-keeping accounts to carry out basic United Nations functions. Moreover, the level of peace-keeping assessments is being reduced and will fall further when the Assembly decides to use the credits in those accounts to pay for future assessments. The level of peace-keeping cash balances would thence fall, along with the financial cushion which has allowed the Organization to continue its basic functions despite its unhealthy cash position. Member States should make concerted efforts to continue reducing their arrears.

A total of $827.4 million dues was owed to the regular budget as of 31 July, of which 74 per cent was owed by the States with the largest assessment rate. The dues owed peace-keeping missions and international tribunals totalled $2.2 billion, about half of which was owed by the same States.

Also before the Committee was the report of the High-level Open-ended Working Group on the Financial situation of the United Nations (document A/50/43), which recommends in a draft decision that the Assembly take note of the report and ask the working group to continue its work in the fifty-first session and submit a report to the Assembly through the Fifth Committee.

Fifth Committee - 5 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

The Working Group says that it concluded on 4 June, at its last meeting of the fiftieth session, that it should build on the work it had been doing for the past two sessions.

Financing of United Nations Mission for the Referendum in Western Sahara (MINURSO)

By the terms of the draft on MINURSO (document A/C.5/50/L.73), the Assembly would authorize the Secretary-General to commit up to $2.6 million gross ($2.5 million net) for 1 to 31 October.

Financing of United Nations Mission in El Salvador (ONUSAL)

The draft text on ONUSAL (document A/C.5/50/L.75) would have the General Assembly appropriate and apportion for the Mission $826,000 gross ($745,300 net) for the period 1 December 1994 to 30 April 1995, and $16,300 gross ($17,700 net) for the period 1 to 31 May 1995. Both sets of sums were previously authorized.

Member States that have paid up their dues to the Mission would have their apportionments met from their respective share in $842,300 gross ($763,000 net) from the unencumbered balance of $15.7 million gross ($14.2 million net) related to the period up to 30 November 1994. Those who have not done so would have their respective share in the $842,300 gross ($763,000 net) used to offset their debts to the Mission. The remaining $14.9 million gross ($13.5 million net) in unencumbered balance would be credited to Member States. The remaining interest and miscellaneous income of $256,674 and any surpluses from the eventual liquidation of the remaining obligations in the Mission's account would be transferred to the Peace-keeping Reserve Fund.

Financing of Yugoslavia Missions

The Committee had before it a draft decision on the United Nations combined Peace Forces in the former Yugoslavia (UNPF) (document A/C.5/50/L.74), which would have the General Assembly authorize the Secretary- General to commit $6.2 million gross ($5.8 million net) for the period 1 to 31 October to liquidate those Forces and provide common support. The Forces are the United Nations Protection Force (UNPROFOR), the United Nations Confidence Restoration Operation in Croatia (UNCRO), the United Nations Preventive Deployment Force (UNPREDEP) and the United Nations Peace Forces Headquarters.

Financing of United Nations Observer Mission in Liberia (UNOMIL)

The draft decision on UNOMIL (document A/C.5/50/L.72) would have the Assembly authorize the Secretary-General to use the resources currently available to the Mission and if necessary commit an additional $1.1 million gross ($1 million net) up to the end of October.

Fifth Committee - 6 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

Financial Reports

A report of the Secretary-General responds to some concerns on the implementation of the recommendations of the Board of Auditors on an inventory control system for non-expendable property at Headquarters (document A/C.5/50/51). The four main concerns raised by the Board are as follows: property accountability should be transferred to end-users; correcting the deficiencies and updating inventory records will require a physical inventory of non-expendable property; the value of the cumulative inventory of non-expendable property is unreliable; and the inventory controls and property records for non-expendable property are deficient and unreliable.

On the transfer of accountability, the Secretary-General states his intention to delegate authority to each head of department and office over assets assigned to his unit.

On the creation of a physical inventory of assets, he writes that one was conducted at Headquarters from June to August 1995. The results showed that there were non-expendable items worth some $19.3 million, special items of about $36 million and group inventory items worth about $25.1 million for a total value of $80.4 million. The total of the three categories of property has been recorded in a computerized system and constitutes a central record of the Organization's fixed assets at Headquarters. All property owned by or loaned to the United Nations in serviceable condition have been recorded.

There are three categories of non-expendable property -- non-expendable property valued at $1,500 or more per unit at the time of purchase and having a service life of at least five years, including generators, kitchen equipment, major equipment and vehicles; special items, regarded as attractive, easily removable because of their size, and cost $500 or more, including computers, cameras, televisions, facsimile machines as well as tape recorders; and group inventory items, including furniture and modular work stations.

The Secretary-General states that a computerized system has been developed to make inventory controls and records reliable.

In a consolidated report which, among other things, comments on the inventory control system for non-expendable property at Headquarters (document A/50/985), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) welcomes the Secretary-General's intention to delegate to each head of department and office authority over property assigned to that unit. It also trusts that a comprehensive physical inventory of non-expendable property conducted at Headquarters will be extended to field offices. It states that biennial conduct of physical inventories should be used to ensure the efficient use of programme budgets.

Fifth Committee - 7 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

Administrative Aspects of Peace-keeping

The Committee had before it a report of the Secretary-General on the establishment of a peace-keeping reserve fund (A/48/622). The Fund was set by a General Assembly resolution on 1 January 1993 as a cash flow mechanism to ensure the rapid response of the United Nations to the needs of peace-keeping operations. The Assembly had then decided that the level of the Fund should be $150 million.

According to the report, the Assembly had also resolved at that time to finance the Fund by transferring the balance in the accounts for the United Nations Transition Assistance Group (UNTAG) in Namibia, the United Nations Iran-Iraq Military Observer Group (UNIIMOG) and some balances from the General Fund (the regular budget, the Working Capital Fund and the Special Account).

According to the report, the Reserve Fund has been funded by transfers of $47 million from the UNTAG account and $17.2 from UNIIMOG upon their closure as of 31 December 1992. The Fund also received a voluntary contribution of $400,000 from Switzerland and interest of $400,000.

The report seeks a review of the current established level. One option -- recommended in 1993 by an advisory group on the financing of the United Nations -- would be to establish a $400 million revolving fund and finance it through three annual assessments. It also says that Member States' respective shares of the Reserve Fund should be determined quickly.

A subsequent report of the Secretary-General on the Reserve Fund (document A/49/654) states that a balance of $204,353 was available as of 31 October 1994. About $85.7 million was still due to the Reserve Fund, from the General Fund ($82.6 million), from UNTAG ($2.3 million) and UNIIMOG ($894,390). Loans of $64.9 million have been granted to four peace-keeping operations.

In a related report on the Reserve Fund (document A/50/976), the ACABQ says it had received further updates. As of 31 December 1995, the Fund had received a total of $93.3 million, including $89.3 million transferred from some peace-keeping missions and $3.7 million in interest income. The transfers include $47 million from UNTAG, $17.3 million from UNIIMOG and $25 million from the General Fund. Some $60.9 million is still due to the Reserve Fund. That includes $57.6 million from the General Fund, $2.2 million from UNTAG, $903,000 from UNIIMOG and $149,000 in accrued interest.

The ACABQ points out that proposals to raise the Reserve Fund's level have been overtaken by events. Spending for peace-keeping missions from 1 July 1996 to 30 June 1997 is projected at $1.3 billion, down from 1994's $3.5 billion. Monthly mission costs have dropped from $215 million to about

Fifth Committee - 8 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

$100 million. Therefore, there are no longer compelling reasons for establishing a larger revolving fund at $400 million.

The report states that after seeking more information on Member States' shares of the Reserve Fund, the ACABQ was informed that the calculation of their shares, based on the peace-keeping scale of assessments, would be finalized later this year. It expects the Secretary-General to submit the information to the fifty-first session and suggests that the Assembly take a decision on the imputation of interest earned in the Reserve Fund.

The Secretary-General's report on a review of the rates of reimbursement to the Governments of troop-contributing States (A/48/912) states that the standard rates were initially established by the Assembly in 1974 and made effective in 1973. They have been revised on several occasions, with the latest being in 1991. The rates for pay and allowances per person per month for all ranks were revised from $500 in 1973 to $988 in 1991; and for supplementary payment for specialists raised from $150 to $291. The rate of $65 per person per month was reimbursed for personal clothing, gear and equipment issued by governments to their troops. Since the standard rates were revised effective July 1991 and since the overall absorption factor has dropped by 6.2 per cent to 43.1 since 1989, the current rates are reasonable and no adjustment is necessary now. The absorption factor, expressed in percentages, is the portion of expenses of troop-contributing States that are not covered by the reimbursement rates.

In its report on reimbursement rates (document A/50/1012), the ACABQ states that the data from the Secretary-General were outdated since they were based on a survey dating back to 1992-1993 and as the number of troop contributors has risen from 57 to 70. The Secretary-General should therefore be asked to conduct a new survey before the Assembly acts on the rates. The ACABQ recommends that the low response to surveys by troop-contributing States should be addressed by the Assembly in order to obtain more accurate data to help decide on whether to change the reimbursement rates.

The Secretary-General's report on surplus asset storage facilities and mission start-up kits (document A/49/936) states that the creation, since 1991, of several peace-keeping missions for short periods had led to the problem of what to do with the huge volumes of reusable equipment left over from closed operations. Coinciding with the end of the United Nations Transitional Authority in Cambodia (UNTAC) in 1993, the Organization decided to place priority on keeping the assets that could be re-used. In addition to the problem of how to deal with surplus assets, sometimes worth up to $100 million, was the question of supplying new missions on time. Therefore, the establishment of facilities to store surpluses and the creation of a standard supply of materials needed in the initial phases of mission -- mission start- up kits -- were considered.

Fifth Committee - 9 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

The United Nations store in Pisa, Italy, set up to receive assets after the closure of the United Nations Emergency Force (UNEF I) in 1956, is too small for current needs. With the need to respond quickly to new peace- keeping initiatives, it was suggested that the United Nations should be able to field small missions within 48 hours of authorization and that start-up times to achieve operational self-sufficiency should be no more than 10 days for small missions (of up to 500 people), two to three months for medium-sized missions (up to 5,000 personnel) and four to five months for large missions (above 5,000 personnel).

The concept of start-up kits evolved from proposals for a revolving reserve stock, with emphasis on maintaining prompt response to new or expanding peace-keeping missions. Such start-up kits could sustain a mission of up to 100 persons for up to three months, until normal supplies began.

Regarding where to store such kits and surplus assets, the United Nations asked several governments for facilities to augment those at Pisa. The Italian Government offered some at a military site in Brindisi. The base's strategic location relative to United Nations missions in the former Yugoslavia, the Middle East and Africa makes it more valuable. When fully developed, it will cover more than 400,000 square metres and some 45 buildings. The use of the Pisa depot for peace-keeping will stop as of 31 December 1995 and its regular budget resources reallocated as part of the overall requirements for Brindisi. Currently, a small number of international and local staff is needed to manage the operation, to carry out activities related to the United Nations Peace Forces (UNPF) as well as to inspect and register equipment from closed missions. The requirements in the six-month period ending 31 December 1995 were projected at $6.6 million, covering renovations to premises, equipment, supplies and staffing.

The Secretary-General proposes to meet those costs from the budgets of UNPF and other missions and to identify such spending in his performance report to the Assembly. He proposes that the Assembly confirm its acceptance of the premises and approve the creation of the Logistics Base in Brindisi. A memorandum regarding the Base was signed in November 1994 between the United Nations and the Italian Government.

In his report on the surplus asset storage facilities and mission start- up kits at the Logistics Base (document A/50/907), he asks the Assembly to approve the $7.9 million gross ($7.4 million net) cost estimates for the Base for the period 1 July 1996 to 30 June 1997. He also asks it to include in each peace-keeping mission's budget an amount to meet the Base's financing needs for that period.

Since the signing of the memorandum, the Base has been funded on an ad hoc basis and from the budgets of peace-keeping missions, primarily the UNPF.

Fifth Committee - 10 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

The funds were spent on general temporary assistance, premises, transport, communications and other equipment as well as freight charges.

The ACABQ, in its report on the Brindisi Base (document A/50/985), recommends that the Assembly approve the $7.9 million gross for the Base to be prorated among individual peace-keeping budgets. However, any additional appropriation required should be justified by the Secretary-General in the context of the performance reports of the relevant peace-keeping missions. The $7.9 million gross estimates are based on a total of 16 international and 17 local staff and include provisions for mission subsistence allowance for international staff. The ACABQ asks the Secretary-General to review the staff levels and report in his next budget for the Base. It says it understands that once a budget and staff structure are approved, the payment of mission subsistence allowance will stop.

The report states that the ACABQ does not oppose the Secretary-General's proposal to establish 33 posts as core staff, changing an ad hoc arrangement in which the base was run with up to 38 staff funded from general temporary assistance.

With the Brindisi Base playing a pivotal role in receiving and deploying assets to and from field missions, the maintenance of a comprehensive central inventory for all operations will be critical, the Secretary-General states in his report on the management of peace-keeping assets: policy, technique and accounting issues (document A/50/965). Although each mission will be responsible for its own assets inventory, the Base will provide oversight under the supervision of the Field Administration and Logistics Division of the Department of Peace-keeping Operations. Mission inventories will be electronically linked to a master inventory at the Base. Such a master inventory must, among other things, have a cataloguing system that incorporates a combined classification and identification process that will help achieve a common "supply language". The Secretariat is considering the introduction of a common supply language within peace-keeping missions, based on the Codification System of the North Atlantic Treaty Organization (NATO), which is currently used by some 74 countries. The NATO system is being tried for six months by the Secretariat.

The Secretary-General adds that, when missions are closed, assets that are not immediately required elsewhere will be reserved at the Base.

It is recommended that assets bought for peace-keeping missions should be accounted for through detailed records valued at their initial purchase prices. They should be transferred to the Base and field missions funded through assessments at the same price, with no additional cost to Member States. Redeployments to and from activities funded voluntarily would be charged at depreciated rates. The Secretary-General asks the Assembly to endorse those proposals.

Fifth Committee - 11 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

The ACABQ concurs with that proposal in its consolidated report on, among other issues, the management of peace-keeping assets (document A/50/985). Its recommends that the results of the six-month trial of the NATO Codification System should be reported to the Assembly before a decision is taken to permanently use it. A comprehensive analysis of possible alternatives to the development of a new codification system should also be provided.

1996-1997 Budget

In his report on the measures to save $154 million from the 1996-1997 budget (document A/C.5/50/57/Add.1), the Secretary-General identifies, in a budget format, an additional $14.1 million in cuts needed to trim the budget to $2.61 billion, as mandated by the General Assembly. His 28 March report had identified savings of $140 million of the required $154 million. The additional $14.1 million savings identified in the present report are linked to the higher than anticipated vacancies of $8.6 million, which will be sustained through the biennium.

The higher vacancy rates experienced by the end of July (900 total, 466 Professional and 434 General Service) reflect the effect of both the 1995 and the 1996 early separation programmes, according to the Secretary-General. Further vacancies would be realized through attrition; strict enforcement of retirement age; recruitment freeze; lateral redeployment of staff; and, if necessary, the lay-off of personnel.

By expenditure items, the largest cuts proposed are from posts ($79.1 million), staff costs ($13.5 million), contractual services ($6.1 million), general operating expenses ($5 million) and travel ($3.8 million).

The largest cuts are proposed in the budget sections for the Department of Administration and Management ($46.4 million), peace-keeping and special missions ($10.8 million), Department of Public Information ($8.2 million), United Nations Conference on Trade and Development (UNCTAD) ($7.7 million) and the regular programme of technical cooperation ($7.4 million).

Meanwhile, says the Secretary-General, the reviews initiated to improve efficiency and performance have identified over 400 initiatives for improving efficiency. Some of them have been implemented and are expected to mitigate the effects of budget cuts.

After approving the 1996-1997 budget, the Assembly adopted resolutions entailing additional mandated activities, according to the Secretary-General. It then asked him in June to submit a report by 1 September with proposals on how to absorb those costs. While there are no signs that the budget is being overspent due to the new mandates, he will be in a better position to make proposals in the context of the first performance report.

Fifth Committee - 12 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

The Secretary-General's report on construction of additional conference facilities at Addis Ababa and Bangkok (document A/C.5/50/17) updates information on the work at the Economic Commission for Africa (ECA) at Addis Ababa, and on a project to expand it at the Economic and Social Commission for Asia and the Pacific (ESCAP) at Bangkok.

Approved by the Assembly in 1984, the Ethiopian construction project was originally estimated at $73.5 million in November 1984 exchange rates, later adjusted to $107.6 million in November 1990 exchange rates. Major civil works were completed at the end of September 1995 and the project was expected to be completed in January 1996 and handed over in April. Although there is currently no basis to anticipate the project's costs to rise, it cannot be totally discounted.

The Bangkok project, the report states, had consumed $67.5 million as of 31 July 1995. The new conference centre's construction began in May 1989 and was completed in the first quarter of 1993. The centre was inaugurated in April 1993 and its maintenance guarantee period ended on 21 March 1994.

The Secretary-General's report on the strengthening of the external oversight bodies such as the Joint Inspection Unit (JIU) and the Board of Auditors (document A/49/633) reiterates that he had established an Office for Internal Oversight Services. Other initiatives are under way in the context of the Secretariat restructuring and the setting-up of a transparent system of accountability and responsibility. The selection of Inspectors for the JIU might be improved greatly if regional groups, in deciding upon countries to be asked to propose candidates for the JIU, reached agreements so that the number of States selected to propose candidates equalled the number of Inspectors to be appointed from a regional group. The report adds that the Administrative Committee on Coordination (ACC) had decided to review the consultation procedures at the inter-agency level relating to nominations for membership of the JIU, the International Civil Service Commission (ICSC) and other bodies. It also considered how United Nations system organizations could interact more substantively with the JIU. The Assembly might wish to revert to those issues at its next session.

In a report on special representatives, envoys and related positions (document A/50/72), the Secretary-General says that, as of 31 July, there were 32 such officials placed in three categories. They cost $1.3 million in 1995. The categories are:

-- 16 special representatives and other high positions in peace-keeping or other missions authorized by the Security Council. The group includes five Under-Secretaries-General and 11 Assistant Secretaries-General;

Fifth Committee - 13 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

-- 11 envoys and other representatives who help the Secretary-General exercise his good offices functions. Included are eight Under-Secretaries- General, one Assistant Secretary-General and two Directors;

-- 5 other special high-level positions, including special advisers to the Secretary-General. Four Under-Secretaries-General and one Assistant Secretary-General.

Scale of Assessments

In its report of its annual session (document A/50/11/Add.2), held from 10 to 28 June, the Committee on Contributions makes two recommendations pursuant to General Assembly resolutions 50/207 B regarding exemptions under Article 19 of the Charter and 50/471 concerning the phasing out by 50 per cent of the effects of the scheme of limits. (Article 19 provides that a Member State shall have no vote in the Assembly if the amounts of its arrears to the United Nations equals or exceeds two years of its dues. The scheme of limits is a mechanism used to limit fluctuations in a Member State's rate of assessment).

The Committee recommends to the Assembly that the Comoros be permitted to vote through the Assembly's fifty-first session and that this waiver be subject to review before any further extension. The Committee agreed that the Comoros faced circumstances beyond its control, related to the invasion of that country in 1995, which contributed to its failure to pay the amount necessary to avoid the application of Article 19. Regarding the scheme of limits, the Committee found no basis to conclude that Turkey's assessment rate should be adjusted during the period 1995-1997. Turkey did not meet one of three criteria -- that the Member State was benefitting from the scheme of limits for the period 1992-1994.

Review of Administrative and Financial Functioning

In its 1994 report (document A/49/16) on the review of the efficiency of the administrative and financial functioning of the United Nations, the Committee for Programme and Coordination (CPC) had endorsed the measures to be taken by the Secretariat to establish a transparent and effective system of accountability and responsibility by 12 January 1995. The Committee had recommended that future proposals should be submitted to the Assembly through the CPC and the ACABQ. It welcomed the Secretary-General's intention to produce an organizational chart. Committee members also welcomed the expressed intention to keep staff and their respective representatives involved at all stages of the reform process.

The Secretary-General's report on jurisdictional and procedural mechanisms for the proper management of resources and funds of the United Nations (document A/49/98 and Corr.1 and Add.1 and 2) presents the views of 12

Fifth Committee - 14 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

Member States on the issue. At its forty-eighth session, the Assembly decided to establish an Ad Hoc Intergovernmental Working Group of Experts to study the establishment of a new jurisdictional and procedural mechanism to address alleged cases of fraud in the United Nations. The report presents the views of Argentina, China, Colombia, France, India, Netherlands, Panama, Sweden, Brazil and Burkino Faso.

In another report, the Secretary-General transmits to the Assembly the views of the Board of Auditors on improving oversight functions within the United Nations (document A/49/471 and Corr.1). It states that the Board has been able to work within its mandate and has encountered few difficulties in pursuing its inquiries or in fulfilling its responsibilities. Therefore, it concludes that, its dual mandate -- to express an opinion on the financial statements and to make observations with respect to the efficiency of the financial procedures, the accounting system, the internal financial controls - - should remain unchanged.

Regarding its structure and composition, the reports calls for the retention of the current Board of three members. It states that it has gradually expanded its coverage of management issues. It has access to fully qualified staff whenever they are required. However, given the increasing numbers of requests from the General Assembly, the Board expressed concern about the adequacy of the financial provisions made for its work. It considers that its budget should be put on at least the same basis as that of the Office of Internal Oversight Services as set out in General Assembly resolution 48/218 B.

Regarding cases of fraud or presumptive fraud, the report states that the Board intends to intensify its scrutiny of the cases of fraud or presumptive fraud. On the question of implementation of the Board's recommendations, the report states that it is an area that needs better attention in the future. Remedial action taken by the administrations should also include invoking the provisions of Financial Rule 114.1 on personnel responsibility, wherever necessary, in order to act as an effective deterrent against the persistent violations of the Financial Rules and relevant administrative instructions. The ACABQ should also develop its role, in line with its mandate, to hold the senior managers directly accountable for inadequacies and deficiencies in the implementation of the recommendations, on the basis of the follow-up reports of the Board.

In its 1995 report, the Committee for Programme and Coordination (CPC) (document A/50/16) states that the Assembly had requested it to express its views on the roles and coverage of the subsidiary bodies responsible for coordination, administrative questions and budgetary matters, including the ACABQ, the Board of Auditors, the JIU and the CPC. That was to be done with a view to improving the effectiveness of their oversight and coordination mechanisms. In that connection, the Committee had recognized the need to pay

Fifth Committee - 15 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

more attention to its coordinating role, which should be based on substantive issues.

To that end, the Committee considered that it required a more detailed insight into the efforts of the ACC and the relevant departments of the United Nations. It also considered that there should be careful preparation of joint CPC/ACC meetings. Those meetings were seen as a unique forum for in-depth and concrete exchanges of views on coordination issues. Dialogue should be encouraged through in-depth discussions, as opposed to orally delivered prepared statements. Committee members stressed the need for the Secretariat to provide it regularly with complete and relevant documentation, including the decisions and resolutions adopted by the Assembly and the Economic and Social Council.

The Secretary-General's report on facilities management (document A/50/676) contains the historical background and an inventory of individual properties and buildings owned and occupied by the United Nations at principal duty stations worldwide. The information is intended to facilitate the development of long-term major maintenance and integrated global facilities management. The historical survey covers two basic aspects of the properties: the conditions by which the Organization established its operations in the host country at the present site and a historical and physical description of the sites and buildings at each location. The buildings and office sites include those located in New York, Vienna, Geneva, Nairobi and the sites of the economic commissions in Bangkok, Santiago and Addis Ababa -- the majority of which are owned. Others are leased or rented.

A note by the Secretary-General on managing works of art in the United Nations (document A/50/742) states that the responsibility for those works of art should remain within the Office of Conference and Support Services and should be shared by the Archives and the Building Management Services within the Commercial and Building Services Division. A complete inventory is being compiled of all gifts presented to the Organization. The note also states that Member States are responsible for the installation, maintenance and insurance of their gifts.

In his report on procedures for the implementation of article VIII, section 29, of the 1946 Convention on Privileges and Immunities of the United Nations (document A/C.5/49/65) the Secretary-General reports on provisions for appropriate means of dispute settlement in respect of disputes arising out of contracts or other disputes of a private law character to which the United Nations is a party. He also reports on provisions for settling disputes involving any official of the Organization, who by reason of his official position enjoys immunity that has not been waived by the Secretary-General.

The report states that provision has been made in all commercial contracts by the United Nations for arbitration in the case of disputes,

Fifth Committee - 16 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

controversies or claims arising from contracts within and outside the United States. The overwhelming majority of commercial agreements that have been entered into by the United Nations have been performed without the occurrence of any serious difficulty. However, with the dramatic increase in peace- keeping operations, the Organization was expected to face an increasing number of commercial disputes that might lead to arbitration proceedings.

Disputes of a private law character, including third party claims for personal injury (outside of peace-keeping missions) consists of claims submitted by persons for injuries incurred on United Nations premises or caused by vehicles owned by the Organization or operated by its personnel for official purposes. Such claims have been rare and have to date been settled amicably through negotiations. However, there has been a marked increase in the number of third party claims that have been submitted to the United Nations Operation in Somalia (UNOSOM II). The question on how to assess and handle such claims for personal injury or death and or property loss or damage arising from "enforcement actions" of UNOSOM II is currently under study by the Secretariat.

The Secretary-General considers it inappropriate to use public funds on claims of third party litigation and arbitration based on political or policy- oriented grievances against the United Nations arising from Security Council or the Assembly actions or decisions, or claims from disappointed job applicants, according to the report. In the case of specific privileges and immunities set out in the General Convention which grants all internationally recruited staff members such privileges, the Secretary-General has discretionary authority under section 20 of that Convention to consider whether the immunity of any United Nations official would impede the course of justice and whether it can be waived without prejudice to the interest of the Organization. One area in which immunity is waived by the Secretary-General is domestic dispute cases.

United Nations Financial Situation

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, said that the combined General Fund was in a negative position and its deficit had grown to $84 million at the end of August even though 88 Member States had paid up their dues. Unpaid dues to the regular budget were $773 million, $408 million was for 1996 and $365 million related to prior years. About 73 per cent of the dues was owed by the United States. Some $79 million had been paid by the United States out of some $155 million that was expected from that country. About $80 million was withheld pending certification by the United States Secretary of State that the United Nations was not exceeding its budget of $2.61 billion. That certification had been made in late August and the United Nations was paid some $40 million of that amount. The remaining $40 million had not been included in the projections up to the end of the year.

Fifth Committee - 17 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

As a result of the payment of the $40 million in August, the General Fund cash position at the end of 1996 was now projected to be a deficit of $243 million, rather than the negative $287 million that had been forecast at the end of July. Should the United States pay the other half of the $80 million, that projection would be a negative of $203 million.

As for peace-keeping cash flow, Mr. Connor said that as of 31 August, unpaid assessments were $2.1 billion. It was anticipated that the combined peace-keeping cash position would end the year at a total of $866 million, an increase of $29 million from what had been forecast in July. The new forecast reflected an assumption that payments to troop-contributing States will be $350 million in 1996. Some $279 million of that sum had been disbursed by the end of August. A special year-end payment to Member States of $275 million for troop costs was still forecast. That would depend on the receipt of $400 million expected from the Russian Federation in 1996. That country had reaffirmed that it would pay that amount this year. The total outstanding amounts owed for troops and equipment would be about $700 million at the end of the year.

The Under-Secretary-General added that the combined cash position for the peace-keeping budgets and the General Fund would be $623 million, consisting of a negative balance of $243 million and a positive amount of $866 million in peace-keeping accounts. To date, the dues owed to the Organization would be $2.2 billion at the end of the year.

Turning to other matters, Mr. Connor said that the Secretariat was making efforts to ensure that the United Nations did not spend more than $2.61 billion. That was being done by identifying $98 million while the budget was being prepared last year and by finding another $154 million and reporting it to the General Assembly in document A/C.5/50/57/Add.1. An additional $204 million would be eliminated in the budget outline for 1998-1999. All those achievements were being made without reference to the additional unfunded mandates of some $120 million approved by the Assembly since the adoption of the 1996-1997 budget. Many posts had to be frozen to achieve the savings that had been necessitated. The number of staff had been cut by 1,000, down 11 per cent from 1994-1995. One hundred posts had been eliminated in the proposed budget for the biennium. By July, 900 other posts had been vacated, with most of the staff being separated voluntarily. Today, the number of Secretariat staff had dropped to about 9,000. Subject to Assembly approval, the 1988-1999 biennium would experience some more reductions in occupied posts by about 500 or 5 per cent.

SAM HANSON (Canada) expressed concern that the level of internal borrowing from the peace-keeping account to finance the regular budget remained unacceptably high. Despite the fact that the present level of borrowing mentioned in Mr. Connor's statement represented an improvement in the situation from that of the end of 1995, borrowing still seemed perilously

Fifth Committee - 18 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

close to the receipts of assessments expected at the beginning of this biennium. He asked if the Secretary-General was confident that he could repay those funds.

TAMMAM SULAIMAN (Syria) said that all States should bear their financial responsibilities to the Organization in accordance with the rates of assessment established by the Assembly. That position was endorsed by the "Group of 77" developing countries and China, the Non-Aligned Movement countries and the high-level working group on the Organization's financial situation. The Syrian Government had decided to pay all its arrears assessed for peace-keeping operations. The arrears would be paid over a six-year period, except arrears for the United Nations Interim Force in Lebanon (UNIFIL) and the United Nations Disengagement Observer Force (UNDOF). The reasons for non-payment of contributions regarding UNIFIL and UNDOF was based on Syria's belief that the aggressor State should be responsible for those costs.

NICK THORNE (United Kingdom) said he shared the concerns expressed by Canada regarding "cross-borrowing" from the peace-keeping account. He asked Mr. Connor to inform the Committee how the peace-keeping account would be repaid and how the Secretariat would repay what was owed to troop-contributing States as well as what funds were being "raided to keep the regular budget going".

NAZARETH INCERA (Costa Rica), also speaking for the Group of 77 and China, said that the Group felt that the report on economy measures should have been considered by the Assembly before it was implemented by the Secretariat. If the measures contained did not conform with mandates, it was up to the Assembly to decide what to do. The Assembly had asked for cuts of $154 million through efficiencies and cost-cutting. It had set a vacancy rate of 6.4 per cent for Professionals and General Service staff. The Assembly had asked the Secretariat for a report with proposals on how to implement its decisions on the budget cuts. The report stated that the vacancy rates would be raised to about 9 per cent and 7 per cent for Professional and General Service staff respectively.

Until the Secretary-General's reports were considered, the Secretariat should implement all mandated programmes in full, she continued. The Secretariat should explain the basis for the staff reductions it was proposing. She asked for explanation as to why some particular cost savings were to be reached through downsizing. The ACABQ had stated that staff cuts to save $104 million had not been specifically sought by the Assembly. The vacancy rates would have an impact on the implementation of mandated programmes. The exercise of any staff cuts should be considered by the Assembly prior to implementation.

Fifth Committee - 19 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

She cited other parts of the report of the ACABQ on the plan of the Secretariat to carry out buy-outs. The Group of 77 attached great importance to the fact that staff reductions should not take the vacancy rates beyond the mandated rate of 6.4 per cent. The Group was concerned that letters were being sent to some staff, telling them that their contracts would be terminated. The Secretariat should say how many staff had been affected that way. There should be a breakdown by nationalities, impact on programmes and other criteria. The Secretariat had not been authorized by the Assembly to raise the vacancy rate beyond 6.4 per cent. The Group would decide what further action to take based on the response it received.

NESTER ODAGA-JALOMAYO (Uganda) expressed support for those views. He would like to receive some more information before making more detailed comments. He cited President Yoweri Museveni as having stated that the increase in the mandates of the United Nations was not being matched by the resources it was being given. Uganda had met all its obligations to the United Nations even though it was one of the poorest countries in the world. "Our account is now in the black." Other Member States should pay up their dues without conditions, in accordance with the Charter and the United Nations financial rules and regulations.

HERBERT GELBER (United States) said his country was preparing to pay $185 million for peace-keeping missions and the second tranche of $40 million, out of $80 million, for which certification had been necessary. He praised Susan Mills, who was retiring from the United Nations, for her work.

MORTEZA MIRMOHAMMAD (Iran) associated his delegation with the statement of Costa Rica. He added that the Secretary-General should not proceed to abolish or freeze any post in the context of the budget prior to the Assembly's approval.

Mr. CONNOR, Under-Secretary-General for Department of Administration and Management, thanked Syria and Uganda for their statements regarding the payments of the assessed contributions. Regarding the concerns of Canada, he said he was sure that the Secretariat would comply with the repayment requirements of monies borrowed from the peace-keeping account. However, the power to correct the situation lay in the hands of Member States.

Mr. Connor then provided details of the action taken by the Secretariat in response to the mandates in the resolutions adopted on the budget in December 1995. Achieving a vacancy rate of 6.4 per cent would not have yielded the mandated $154 million savings. Cost reductions were first incorporated in the Secretariat's March report and confirmed in the August report. Both reports tracked personnel and non-personnel costs. The Secretariat had moved expeditiously to fulfil the requirements mandated by the Assembly. If action had not been taken so quickly, a vacancy rate of 25 per cent would have had to be pursued to achieve the mandated savings.

Fifth Committee - 20 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

As a result of the redeployment exercise, approximately 40 staff members were sent letters in recent days which stated that efforts were continuing to find posts for them but failing that, they would be separated from the Organization. Regarding requests for data on staff separations and redeployment, it was already being prepared for the ACABQ and would be provided to Member States. An update on what was owed to troop-contributing countries would be prepared, as requested. However, the details of contingent-owned equipment costs would be provided at a later date because of the time needed to compile it. About $700 million was owed for troops and contingent-owned equipment.

Ms. INCERA (Costa Rica), speaking for the Group of 77 and China, said Mr. Connor should submit the information requested to the first formal meeting of the Assembly's fifty-first session. Fifth Committee members could not support Secretariat action that was contrary to the Assembly's mandates. The Assembly had not adopted a resolution to increase the vacancy rate above 6.4 per cent. Delegations were deeply concerned about the action taken by the Secretariat in interpreting the mandate regarding budgetary reductions.

She requested that the Committee take a decision reiterating resolution 50/230, paragraphs 3 and 5, and resolution 50/231, paragraphs 3 and 4, and state that no decision could be taken until the Assembly analysed the Secretariat's report on the savings that had been effected.

[In resolution 50/230 of 7 June -- on progress on the programme budget for the biennium 1996-1997 -- operative paragraph 3 requests the Secretary- General to ensure that, until he submits his report to the Assembly containing proposals for achieving budget savings as called for in resolution 50/214, all mandated programmes and activities are implemented in full. By operative paragraph 5 the Secretary-General was requested to ensure productivity gains will not have a negative impact on his obligations under Article 101 of the Charter to recruit staff on as wide a geographical basis as possible.

By resolution 50/231 of 7 June on possible means of absorption of the cost of new mandates within the programme budget for 1996-1997, the Assembly in operative paragraph 3 reiterated that the authority of the Secretary- General to implement any proposal to change mandated programmes and activities was subject to the Assembly's prior approval. In operative paragraph 4, the Secretary-General was requested to submit a report to the Assembly no later than 1 September containing proposals on possible means of absorption in the programme budget for the biennium 1996-1997, including in the area of staff costs where savings might arise from the implementation of the early separation programme during the biennium.]

ERICH VILCHEZ ASHER (Nicaragua), Committee Chairman, said that Costa Rica had made two proposals. The first proposal was that the Secretariat should submit a report to the Fifth Committee early in the fifty-first session

Fifth Committee - 21 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

in response to questions asked on budgetary matters. The second proposal would request the Committee to take a decision reiterating paragraphs 3 and 5 of resolution 50/230 -- and paragraphs 3 and 4 of resolution 50/231 and decide that no action could be taken until the Assembly analysed the report on the savings achieved.

The Chairman then asked if Committee had any objection to reiterating the two resolutions.

PATRICK KELLY (Ireland) said such decisions should be taken under agenda item 116 -- the programme budget for the 1996-1997 biennium. He requested time for the European Union delegations to consider the proposals.

WILLIAM GRANT (United States) said he could not take a decision on the proposals "even after a short break". He would have to consult further on the matter. He cautioned about isolating or highlighting particular paragraphs of Assembly resolutions after they had been negotiated. "It would give us some discomfort."

Mr. VILCHEZ ASHER, Committee Chairman, deferred the decision on the proposals to the end of the meeting.

LUCIEN SCOTTI (France) endorsed what Ireland had said. He said he was not sure whether the agenda item being discussed -- the financial situation of the United Nations -- was the appropriate subject under which to take a decision on the implementation of the budget. It would not be appropriate to isolate some paragraphs of General Assembly resolutions and take action on them. He said he could not take action without consultations with other delegations.

Ms. INCERA (Costa Rica) said that her proposal could be taken up when the Committee began discussing the budget. She said she had brought up the matter to take advantage of Mr. Connor's presence.

AMMAR AMARI (Tunisia) supported Costa Rica's views. The two resolutions in question had been adopted by consensus. But he said he would go along with whatever the Chairman's decision.

Mr. ODAGA-JALOMAYO (Uganda) said that the issues had been mixed up by the way the Committee had been briefed on the financial situation in a statement that had gone on to refer to the cuts being made in the budget. The officials of the Secretariat should remain in the room until Costa Rica's proposal was taken up later.

On the statement by the Under-Secretary-General, he said that the Assembly had clearly stated the manner in which the cost savings were to be achieved. The working relations between the Fifth Committee and the twenty- seventh floor, which seemed to ignore the Assembly guidelines, should be improved. When the Secretariat went ahead and did what it wanted to do despite the Committee's decisions, it affected relations between the Secretariat and the Committee. It was wrong for the Secretariat to ignore the views of the Committee, especially when clear guidelines had been provided on how to prune the budget. If that attitude did not change, "we will leave the room and the Secretariat may be talking to the Secretariat".

Fifth Committee - 22 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

MARTA PENA (Mexico) said there was no reason for the Committee not to reiterate resolutions that had been adopted only a few months ago. She did not need instructions on what to do and was ready to take action when the issue of the budget cuts came up.

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said that the Secretariat's action, pushing the vacancy rate beyond the 6.4 per cent mandated by the Assembly, showed a lack of respect for the Assembly and its decisions. The Assembly had engaged in night-long, lengthy and delicate negotiations before determining those rates and taking other decision on the budget. The Secretariat should be more careful in how it implemented the instructions it received from the Assembly. Cuba would not have Member States decide one thing only to have the Secretariat proceed to do something else.

Mr. THORNE (United Kingdom) said that since the budget was 70 per cent staff-driven, personnel would have to be reduced to trim it. The British delegation would not be in position to reiterate certain parts of resolutions that had been adopted previously by the Assembly.

DJAMEL MOKTEFI (Algeria), endorsing Costa Rica's statement, said the adoption of such decisions was appropriate and timely and would warn the parties concerned not to drift away from certain principles. The Committee should recall the Assembly's powers and principles in the matter under discussion.

Mr. ODAGA-JALAMAYO (Uganda) said he shared the view that the Secretary- General should act on the instruction of the Member States; he should not be acting on his own instructions.

The Committee then decided to take up the matter under agenda item 116 - - programme budget for the 1996-1997 biennium.

Financial Situation of United Nations

ERNST SCHARIPA (Austria), Chairman of the Assembly's High-level Working Group on the Financial Situation of the United Nations presented the working group's report.

Fifth Committee - 23 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

AMMAR AMARI (Tunisia), a Committee Vice-Chairman, praised the efforts of the two Co-Chairmen of the Working Group on what they had accomplished.

PRAYONO ATIYANTO (Indonesia) welcomed the report but expressed regret that the working group could not make concrete recommendations regarding the Organization's financial difficulties. However, he was confident that it would arrive at balanced conclusions during the fifty-first session.

The Committee took note of the report of the High-level Working Group and decided to transmit it to the Assembly's fifty-first session.

Action on Reports on Administrative and Budgetary Aspects of Financing Peace-keeping Operation

PETER MADDENS (Belgium), who had conducted informal consultations on the agenda items, proposed that the reports should be deferred to the next session. The Committee had not considered them because of their complexity and the shortage of time.

Mr. VILCHEZ ASHER (Nicaragua), Chairman of the Committee, proceeded to orally introduce three draft decisions to defer consideration of the reports to the fifty-first session.

Draft decision I would have the Assembly take note of and defer to the next session the Secretary-General's reports on the management of peace- keeping assets; assets storage facilities and mission start-up kits (A/49/36); management of peace-keeping assets (A/50/965); inventory control system for non-expendable property at Headquarters (A/C.5/50/51) and the related report of the ACABQ (A/50/985); and management of peace-keeping assets: storage facilities at Brindisi (A/50/907).

VIJAY GOKHALE (India) said the fact that the Assembly was taking note of those report should not be construed to be mean that it was approving any of the Secretary-General's proposals they contained.

Mr. MADDENS (Belgium) said that that had been the understanding during the informal consultations on the reports.

LEON HOSANG, Director of the Peace-keeping Financing Division of the Department of Administration and Management, said that the Secretariat would oblige. Brindisi would be funded on its current basis until the Assembly took a decision.

The Chairman of the Committee read out the second and third draft decisions and proposed that they should be adopted.

Fifth Committee - 24 - Press Release GA/AB/3084 67th Meeting (PM) 13 September 1996

Draft decision 2 would have the Assembly take note of and defer the Secretary-General's reports on the peace-keeping Reserve Fund operation and related reports from the ACABQ.

Draft decision 3 would have the Assembly take note of and defer the Secretary-General's report on rates of reimbursement to troop-contributing States and the related report of the ACABQ.

The three draft decisions were all approved without a vote.

Programme Budget of 1996-1997 Biennium

Mr. VILCHEZ ASHER (Nicaragua) Committee Chairman, said the consultations on Costa Rica's proposals had been unsuccessful. Costa Rica had asked to read an amended proposal.

Ms. INCERA (Costa Rica), speaking for the Group of 77 and China, read the following draft proposal: That the Assembly reaffirm resolutions 50/214, 50/230 and 50/231 related to the 1996-1997 programme budget and request the Secretary-General not to proceed with the abolition, discontinuation or freezing of any post in the context of the 1996-1997 programme budget prior to the Assembly's approval.

Mr. KELLY (Ireland) welcomed the amended proposal. However he said the European Union delegations required more time to consider the proposal. He requested the Secretariat to prepare the text and distribute it to delegations. Since the matter was being considered by the ACABQ at present, he would like to obtain that body's position before taking a decision.

Mr. HANSON (Canada) said he had the same preoccupations with the proposal as Ireland had. He did not want the Committee to take any action that would infringe on the Secretary-General's role as the Organization's Chief Executive Officer. He asked if action such as abolition and freezing of posts fell within the authority of the Secretary-General.

Mr. VILCHEZ ASHER (Nicaragua) Committee Chairman, suggested that a decision on the proposal be deferred until tomorrow's meeting, following informal consultations on the matter.

* *** *

United Nations