MEETING OF UNIDROIT SUB-FINANCE COMMITTEE

UNCLAS ROME 001235 SIPDIS FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME L/PIL FOR HAL BURMAN AND JEFF KOVARS IO/EDA FOR SHARON KOTOK AND IO/S FOR LISA JACOBSON E.O. 12958: N/A TAGS: AORC ABUD UNIDROIT SUBJECT: MEETING OF UNIDROIT SUB-FINANCE COMMITTEE REF: A) STATE 68933 B) ROME 945 ¶1. SUMMARY: THE FINANCE SUB-COMMITTEE OF THE INTERNATIONAL INSTITUTE FOR THE UNIFICATION OF PRIVATE LAW (UNIDROIT) MET ON MARCH 17 TO CONSIDER PRELIMINARY 2004 BUDGET ESTIMATES FOR THE ORGANIZATION. GIVEN THE NUMBER OF QUESTIONS THAT WERE RAISED OVER BUDGET UNCERTAINTIES REGARDING BOTH INCOME AND EXPENDITURES, NO REAL EFFORT WAS MADE TO FIND CONSENSUS. THE SUB- COMMITTEE AGREED TO MEET AGAIN WHEN THE PICTURE BECOMES CLEARER. END SUMMARY. ¶2. U.S. MISSION REP ATTENDED THE 3/17 MEETING. PER REF A) GUIDANCE, U.S. MADE THE FOLLOWING POINTS: OUR BUDGET POLICY FOR ALL INTERNATIONAL ORGANIZATIONS IS ZERO NOMINAL GROWTH; WE RECOGNIZE THE WORK UNIDROIT IS DOING AND CAN SUPPORT A MODEST INCREASE BECAUSE OF THE IMPORTANCE OF THE CAPETOWN CONVENTION DEPOSITARY FUNCTION AND FOR NECESSARY INCREASES IN STAFF EXPENSES; THIS DOES NOT REPRESENT A CHANGE IN U.S. POLICY BUT IS A ONE-TIME RECOGNITION OF THESE HIGH-PRIORITY ITEMS; AND WE WILL NOT SUPPORT AN INCREASE IN THE LEGAL COOPERATION PROGRAM BUT INSTEAD BELIEVE THE PROGRAM SHOULD BE SUPPORTED WITH EXTRA-BUDGETARY CONTRIBUTIONS FROM THOSE COUNTRIES WHO FEEL STRONGLY ABOUT IT. ¶3. CANADA AND GERMANY JOINED THE U.S. IN SUPPORTING A POLICY OF ZNG. SEVERAL QUESTIONS WERE RAISED AND MORE DETAILS REQUESTED REGARDING STAFF SALARIES AND TRAVEL. INCOME UNCERTAINTIES REVOLVE AROUND TWO ISSUES: THE ANNUAL CONTRIBUTION OF THE ITALIAN GOVERNMENT AND THE POSSIBLE ACCESSION OF A NEW MEMBER (PANAMA),WHICH WOULD BRING IN NEW MONIES. THE ITALIAN DELEGATE SAID THE GOI CONTRIBUTION MAY BE RESOLVED AFTER A MEETING BETWEEN UNIDROIT AND THE GOI MINISTRIES OF THE ECONOMY AND FOREIGN AFFAIRS, TO BE SCHEDULED IN THE NEXT FEW WEEKS. THE SYG ADDED THAT MORE SHOULD ALSO BE KNOWN IN THE NEXT SEVERAL WEEKS ABOUT THE ACCESSION OF PANAMA. ¶4. GIVEN THE REQUESTS FOR ADDITIONAL BUDGET DETAILS AND THE UNCERTAINTIES REGARDING CONTRIBUTIONS FROM THE GOI AND PANAMA, THE SUB-COMMITTEE AGREED TO MEET AGAIN PROBABLY IN TWO OR THREE MONTHS RATHER THAN TRYING TO REACH CONSENSUS NOW. HALL NNNN 2003ROME01235 - Classification: UNCLASSIFIED