REPORT OF UNIDROIT 56TH GENERAL ASSEMBLY

UNCLAS ROME 006012 SIPDIS L/PIL FOR HAL BURMAN AND JEFF KOVARS; IO/EDA IO/S FOR LISA JACOBSON FROM FODAG E.O. 12958: N/A TAGS: AORC ABUD IT UNIDROIT SUBJECT: REPORT OF UNIDROIT 56TH GENERAL ASSEMBLY REFTEL: ROME 5491 ¶1. SUMMARY. THE INTERNATIONAL INSTITUTE FOR THE UNIFICATION OF INTERNATIONAL PRIVATE LAW (UNIDROIT) 56TH GENERAL ASSEMBLY MEETING DECEMBER 6, 2002 AND APPROVED A UNCLASSIFIED PAGE 02 ROME 06012 170743Z BUDGET FOR ORDINARY EXPENDITURE OF EURO 1,802,550.00 FOR ¶2003. THE U.S. SHARE IS EURO 110,000.00. THE ASSEMBLY ALSO HEARD AN UPDATE ON EC MEMBERSHIP IN UNIDROIT AND A REPORT FROM THE REPRESENTATIVE OF ITALY CONCERNING ITALY'S REDUCTION IN FUNDING FOR UNIDROIT. END SUMMARY. ¶2. THE 56TH SESSION OF THE UNIDROIT GENERAL ASSEMBLY MET DECEMBER 6, 2002 IN ROME. AUSTRALIAN AMBASSADOR MURRAY COBAIN WAS ELECTED CHAIRMAN OF THE ASSEMBLY. UNIDROIT SECRETARY GENERAL HERBERT KRONKE PROVIDED UPDATES ON SIPDIS UNIDROIT PROJECTS IN THE AREAS OF PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS, TRANSNATIONAL CIVIL PROCEDURES, MODEL LAW ON DISCLOSURE AND FRANCHISING AND TAKING OF SECURITIES AND SECURITIZATION. HE WELCOMED THE RECENT SECONDMENT OF A NEW STAFF MEMBER (FUNDED BY THE GERMAN BANKING FEDERATION) TO WORK ON THE CAPITAL MARKETS PROJECT. KRONKE NOTED THAT WORK ON THE SECOND AND THIRD PROTOCOL TO THE RECENTLY AGREED CONVENTION ON MOBILE ASSETS WAS ADVANCING. HE ALSO EXPLAINED THE (HERETO UNMET) STAFFING AND RESOURCE IMPLICATIONS OF UNIDROIT'S NEW OBLIGATIONS AS THE DEPOSITARY TO THE RECENTLY APPROVED CAPETOWN CONVENTION AND AIRCRAFT PROTOCOL. ¶3. AT THE REQUEST OF THE U.S. DELEGATE, KRONKE UPDATED MEMBERS ON THE QUESTION OF EC MEMBERSHIP IN THE COMMISSION. HE NOTED THAT SINCE EC ACCESSION TO THE HAGUE CONFERENCES WAS "IN THE WORKS," HE EXPECTED EC ACCESSION TO UNIDROIT TO BE "CONCLUDED UNDER THE ITALIAN PRESIDENCY." ¶4. THE ASSEMBLY APPROVED THE FINAL ADJUSTMENTS TO THE UNCLASSIFIED PAGE 03 ROME 06012 170743Z BUDGET AND APPROVAL OF THE ACCOUNTS FOR THE 2001 FINANCE YEAR, AND ADJUSTMENTS TO THE BUDGET FOR THE 2002 FINANCIAL YEAR. THE ASSEMBLY TOOK NOTE OF THE ARREARS IN CONTRIBUTIONS OF MEMBER STATES, AND A PROGRESS REPORT ON THE PROPOSAL TO PROJECT THE INSTITUTE'S FINANCIAL NEEDS ON A THREE-YEAR BASIS AND PROPOSAL TO MODIFY THE SYSTEM OF DETERMINING THE CONTRIBUTION OF THE ITALIAN GOVERNMENT. ¶5. THE ITALIAN DELEGATE STATED THAT THE RECENT ANNOUNCEMENT THAT THE GOVERNMENT OF ITALY WOULD LOWER ITS PAYMENT TO UNIDROIT WAS A RESULT OF THE FACT THAT UNIDROIT HAD HISTORICALLY BEEN "INCORRECTLY CLASSIFIED" AS A NATIONAL INSTITUTE (RATHER THAN AN INTERNATIONAL ORGANIZATION). IN THE PAST THIS HAD BEEN EFFECTIVE IN FACILITATING PAYMENT; NOW IT WAS AN ALBATROSS, AS THE GOVERNMENT'S AUSTERITY PACKAGE COVERED ALL DOMESTIC ORGANIZATIONS. THE DELEGATE SAID THAT EFFORTS WERE BEING MADE TO CORRECT THE CLASSIFICATION. U.S.DEL EXPRESSED GRATITUDE FOR THE SUPPORT OF THE ITALIAN GOVERNMENT AND UNDERLINED THE IMPORTANCE OF ITALY MOVING TO A MORE PREDICTABLE SYSTEM OF CONTRIBUTIONS FOR UNIDROIT. ¶6. THE ASSEMBLY AGREED TO AN ORDINARY BUDGET OF EURO 1,802,550.00 FOR 2003. THE U.S. SHARE IS EURO 110,000.00 IT WAS AGREED THAT EURO 10,500 WOULD BE ALLOCATED TO CHAPTER 11 (PROGRAM OF LEGAL ASSISTANCE TO DEVELOPING COUNTRIES) FROM SAVINGS FOUND ELSEWHERE IN THE BUDGET IN VIEW OF THE IMPORTANCE THAT MANY MEMBERS ATTACHED TO THE PROGRAM. THE FINANCE COMMITTEE SUB-COMMITTEE (U.S. IS A MEMBER) WILL MET IN LATE FEBRUARY-EARLY MARCH 2003 TO UNCLASSIFIED PAGE 04 ROME 06012 170743Z DISCUSS THE CURRENT IMPLICATIONS OF THE 42ND GENERAL ASSEMBLY'S DECISION (1989) THAT 1 PERCENT OF COUNTRY'S CONTRIBUTIONS (EXCEPT FOR ITALY) BE PROVIDED TO CHAPTER ¶11. HALL UNCLASSIFIED > 2002ROME06012 - Classification: UNCLASSIFIED