FAO 102ND FINANCE COMMITTEE PREVIEW

UNCLAS SECTION 01 OF 05 ROME 001601 SIPDIS FROM FODAG STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK USDA/FAS FOR REICH AND HUGHES ATHENS FOR CLEVERLEY E.O. 12958: N/A TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO SUBJECT: FAO 102ND FINANCE COMMITTEE PREVIEW ¶1. THIS IS AN ACTION REQUEST. ¶2. SUMMARY. THE 102ND SESSION OF THE UN FOOD AND AGRICULTURE ORGANIZATION (FAO) FINANCE COMMITTEE WILL UNCLASSIFIED PAGE 02 ROME 01601 01 OF 05 151122Z MEET MAY 5-9, 2003. IMPORTANT ACTION ITEMS FOR THE U.S. INCLUDE: REPORT ON FOLLOW-UP TO THE EXTERNAL AUDITOR'S RECOMMENDATIONS; A PROPOSAL FOR A SPLIT CURRENCY ASSESSMENT; THE PROGRAM OF WORK AND BUDGET FOR 2004-2005 AND A PROPOSAL TO CHANGE THE METHODOLOGY FOR DETERMINING EQUITABLE GEOGRAPHIC REPRESENTATION OF STAFF. THIS CABLE PREVIEWS AND REQUESTS GUIDANCE ON THE ITEMS FOR WHICH DOCUMENTATION IS CURRENTLY AVAILABLE. END SUMMARY. ¶3. THE 102ND SESSION OF THE FAO FINANCE COMMITTEE (FC) WILL MEET MAY 5-9. THIS CABLE PREVIEWS AND REQUESTS GUIDANCE ON THE ITEMS FOR WHICH DOCUMENTATION IS CURRENTLY AVAILABLE. GUIDANCE REQUIRED FOR CAPITAL BUDGETING (SEE PARA 14); SUMMARY PROGRAM OF WORK AND BUDGET (SEE PARA 19); SPLIT ASSESSMENT (SEE PARA 20) AND GEOGRAPHICAL REPRESENTATION OF STAFF (SEE PARA 26). SEPTEL WILL COVER REMAINING ITEMS AND THE MAY 7 JOINT SESSION OF THE PROGRAM AND FINANCE COMMITTEES. ALL DOCUMENTS CITED ARE AVAILABLE ON THE FAO WEB SITE (WWW.FAO.ORG). ¶4. ITEM 1 AND 2, ADOPTION OF AGENDA AND TIMETABLE, ELECTION OF VICE-CHAIRPERSON. FOR INFORMATION. PART I, FINANCIAL AND BUDGET REPORTS -------------- ¶5. AGENDA ITEM 3, ANNUAL REPORT ON BUDGETARY PERFORMANCE AND PROGRAM AND BUDGETARY TRANSFERS (DOCUMENT 102/3) UNCLASSIFIED PAGE 03 ROME 01601 01 OF 05 151122Z BACKGROUND: THE FC REVIEWS THE REPORT ON BUDGETARY PERFORMANCE FOR 2002 TO ENSURE THAT THE DIRECTOR GENERAL HAS MANAGED THE APPROPRIATIONS SO AS TO ENSURE THAT ADEQUATE FUNDS ARE AVAILABLE TO MEET EXPENDITURES DURING THE BIENNIUM. TRANSFERS FROM ONE CHAPTER TO ANOTHER MUST BE APPROVED BY THE FC. THE 102ND SESSION WILL BE INFORMED OF THE LIKELY MAGNITUDE OF SUCH BUDGET TRANSFERS, BUT THE FORMAL REQUEST FOR TRANSFERS WILL NOT BE SUBMITTED UNTIL THE SEPTEMBER 2003 FC MEETING. FOR DISCUSSION: -- MANAGING APPROPRIATIONS: THE 2002 SPENDING REPRESENTS 50.1 PERCENT OF THE USD 651.8 MILLION APPROPRIATION FOR 2002-03. FULL UTILIZATION OF THE APPROPRIATION IS FORESEEN IN THE BIENNIUM. -- TRANSFERS: THE FAO IS EXPERIENCING A SHARP DECLINE IN SUPPORT COST EARNINGS AS A RESULT OF THE CONTINUED REDUCTION IN NON-EMERGENCY EXTRA-BUDGETARY PROJECTS. THE SHORTFALL IS ESTIMATED AT USD 6.2 MILLION OVER THE BIENNIUM. TRANSFERS WILL BE NEEDED TO COVER FIXED STAFF COSTS PREVIOUSLY COVERED BY SUPPORT COST INCOME. FODAG COMMENT: THE DOWNWARD TREND OF SUPPORT COST INCOME AND ITS BUDGETARY IMPLICATIONS REQUIRE GREATER MANAGEMENT ATTENTION. ¶6. AGENDA ITEM 4, FAO INTERIM ACCOUNTS AT DECEMBER 31, 2002 (DOC 102/4) UNCLASSIFIED PAGE 04 ROME 01601 01 OF 05 151122Z BACKGROUND AND COMMENT: FOR INFORMATION ONLY ¶7. AGENDA ITEM 5, REPORT ON INVESTMENTS (DOC 102/5) BACKGROUND AND COMMENT: FOR INFORMATION. THE FAO INVESTMENT COMMITTEE MET IN JANUARY 2003 AND DECIDED TO TERMINATE THE SERVICES OF THE LONG-TERM PORTFOLIO MANAGER, FIDUCIARY TRUST INTERNATIONAL BASED ON THE CONTINUING UNDERPERFORMANCE OF THE PORTFOLIO. THE FC WILL BE UPDATED ON THE STATUS OF THE TERMINATION OF THE CONTRACT AND THE NEW TEMPORARY ARRANGEMENTS FOR THE PORTFOLIO. IN ADDITION, THE FIRST RESULTS OF A DETAILED ASSET AND LIABILITY STUDY (REQUESTED IN MAY 2002) WILL BE PRESENTED. ¶8. AGENDA ITEM 6, FINANCIAL HIGHLIGHTS (DOC 102/6) BACKGROUND: THE FINANCIAL HIGHLIGHTS REPORT SHOWS THE FINANCIAL SITUATION BY INCOME AND EXPENDITURE AND REPORTS ON ARREARS. UNCLASSIFIED UNCLASSIFIED PTQ8914 PAGE 01 ROME 01601 02 OF 05 151122Z ACTION IO-00 INFO LOG-00 MFA-00 AID-00 AMAD-00 CIAE-00 INL-00 EAP-00 EB-00 EUR-00 UTED-00 FDRE-01 FOE-00 TEDE-00 INR-00 L-00 DCP-01 NSAE-00 OES-00 OIC-02 CAEX-00 PER-00 IRM-00 SS-00 TEST-00 FMP-00 SAS-00 /004W -------------- 5600CA 151123Z /38 R 151124Z APR 03 FM AMEMBASSY ROME TO SECSTATE WASHDC 9265 USDA FAS WASHDC 2618 USMISSION USUN NEW YORK AMEMBASSY ATHENS UNCLAS SECTION 02 OF 05 ROME 001601 SIPDIS FROM FODAG STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK USDA/FAS FOR REICH AND HUGHES ATHENS FOR CLEVERLEY E.O. 12958: N/A TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO SUBJECT: FAO 102ND FINANCE COMMITTEE PREVIEW FOR DISCUSSION: -- TECHNICAL COOPERATION PROGRAM (TCP) AVAILABLE APPROPRIATION CONTINUES TO INCREASE, INDICATING LONGER UNCLASSIFIED PAGE 02 ROME 01601 02 OF 05 151122Z LAGS IN PROJECT EXECUTION. -- LOSS OF 12.2 MILLION IN LONG-TERM INVESTMENTS. THE GAP BETWEEN THE VALUE OF LONG-TERM INVESTMENTS AND FAO'S SHARE OF STAFF-RELATED LIABILITIES HAS INCREASED. -- AS OF DECEMBER 31, 2002, 43 MEMBERS HAD ARREARS SUFFICIENT TO JEOPARDIZE THEIR RIGHT TO VOTE. TOTAL ARREARS WERE USD 56.5 MILLION, OR 17.45 PERCENT OF THE CURRENT ASSESSMENTS. WHILE MORE MEMBERS HAVE PAID IN FULL, THE AMOUNT OF ARREARS (EXCLUDING U.S.) CONTINUES TO INCREASE SLIGHTLY COMPARED TO PREVIOUS YEARS. OVERSIGHT MATTERS -------------- ¶9. AGENDA ITEM 7, 2002 ANNUAL ACTIVITY REPORT OF THE OFFICE OF THE INSPECTOR GENERAL (DOC 102/7) BACKGROUND AND COMMENT: FOR INFORMATION, BUT OF PARTICULARLY INTEREST GIVEN CRITICAL REPORT OF THE EXTERNAL AUDITOR IN 2002. THE REPORT NOTES THAT THE EXTERNAL AUDITOR SPECIFICALLY RECOMMENDED THAT ANOTHER REVIEW OF THE INTERNAL CONTROLS OVER THE USE OF THE FAO'S RESOURCES SHOULD BE CONDUCTED. AN EXPERT CONSULTANT WAS CONTRACTED TO ASSIST IN DEVELOPING NEW RISK ASSESSMENT METHODOLOGY. (SEE ALSO FOLLOW-UP TO REPORT OF THE EXTERNAL AUDITOR). THIS DOCUMENT OTHERWISE PROVIDES A LISTING OF THE ACTIVITIES OF THE OFFICE OF THE INSPECTOR GENERAL. THE OIL-FOR-FOOD PROGRAM CONTINUES TO BE AN AREA OF MAJOR AUDIT ATTENTION AND A TOP PRIORITY FOR THE UNCLASSIFIED PAGE 03 ROME 01601 02 OF 05 151122Z ORGANIZATION. OTHER AUDITS CONDUCTED ON: FIELD OPERATIONS IN AFGHANISTAN, LETTERS OF AGREEMENT, AUTHOR'S CONTRACTS AND "TELEFOOD." ¶10. AGENDA ITEM 8, PROGRESS REPORT ON IMPLEMENTATION OF THE EXTERNAL AUDITOR'S RECOMMENDATIONS (DOC 102/8) NOT YET AVAILABLE. ¶11. AGENDA ITEM 9, PROGRAM OF WORK OF THE EXTERNAL AUDITOR (DOC 102/9) BACKGROUND AND COMMENT: THE EXTERNAL AUDITOR WILL EXAMINE FAO'S TECHNICAL COOPERATION PROGRAM. MISSION SUPPORTS THIS CHOICE. ¶12. AGENDA ITEM 10, APPOINTMENT OF THE INSPECTOR GENERAL (DOC 102/10) NOT YET AVAILABLE. ¶13. UN JOINT INSPECTION UNIT (JIU) REPORTS (SEE WEB SITE). BACKGROUND AND COMMENT: FOR INFORMATION. THE JIU REPORTS ARE ALSO MADE AVAILABLE TO COUNCIL FOR COMMENT. III. FINANCIAL POLICY MATTERS -------------- ¶14. AGENDA ITEM 12, CAPITAL BUDGETING (DOC 102/12) UNCLASSIFIED PAGE 04 ROME 01601 02 OF 05 151122Z BACKGROUND: THE FC AT ITS LAST SESSION REQUESTED FURTHER INFORMATION ON CAPITAL BUDGETING FOR FINANCING ONE-TIME CAPITAL ITEMS. DEPARTMENT GUIDANCE REQUESTED ON PROPOSAL TO INTRODUCE A LIMITED FORM OF CAPITAL BUDGETING IN 2004-2005. ¶15. AGENDA ITEM 13, REVIEW OF PROJECT PROPOSAL TO CONFIRM COMPLIANCE WITH FAO'S MANDATE (DOC 102/13). BACKGROUND: FOR INFORMATION. THE FC ASKED TO BE INFORMED OF THE MEANS FOR ENSURING THAT PROJECTS FUNDED FROM VOLUNTARY CONTRIBUTIONS MET THE ORGANIZATION'S CRITERIA FOR ACCEPTANCE OF SUCH CONTRIBUTIONS. ¶16. AGENDA ITEM 14, PROPOSAL TO ESTABLISH A SPECIAL FUND FOR EMERGENCY AND REHABILITATION ACTIVITIES (DOC 102/14) BACKGROUND: THE DG MAY AUTHORIZE THE CREATION OF TRUST FUND ACCOUNTS ON HIS OWN AUTHORITY. THE PROPOSAL TO UNCLASSIFIED UNCLASSIFIED PTQ8913 PAGE 01 ROME 01601 03 OF 05 151123Z ACTION IO-00 INFO LOG-00 MFA-00 AID-00 AMAD-00 CIAE-00 INL-00 EAP-00 EB-00 EUR-00 UTED-00 FDRE-01 FOE-00 TEDE-00 INR-00 L-00 DCP-01 NSAE-00 OES-00 OIC-02 CAEX-00 IRM-00 SS-00 TEST-00 FMP-00 SAS-00 /004W -------------- 5600D8 151123Z /38 R 151124Z APR 03 FM AMEMBASSY ROME TO SECSTATE WASHDC 9266 USDA FAS WASHDC 2619 USMISSION USUN NEW YORK AMEMBASSY ATHENS UNCLAS SECTION 03 OF 05 ROME 001601 SIPDIS FROM FODAG STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK USDA/FAS FOR REICH AND HUGHES ATHENS FOR CLEVERLEY E.O. 12958: N/A TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO SUBJECT: FAO 102ND FINANCE COMMITTEE PREVIEW CREATE A SPECIAL TRUST FUND FOR EMERGENCIES AND REHABILITATION ACTIVITIES IS PROVIDED FOR FC INFORMATION. THE TRUST FUND WOULD PROVIDE "SEED MONEY" TO RAPIDLY INITIATE EMERGENCY OPERATIONS AND PROVIDING ADVANCE UNCLASSIFIED PAGE 02 ROME 01601 03 OF 05 151123Z FUNDING WHEN A DONOR'S COMMITMENT HAS BEEN OBTAINED FOR PROCUREMENT OF INPUTS. DISCUSSION: - THE SPECIAL FUND WILL HAVE A TARGET LEVEL OF USD 2 MILLION AND BE UNDER THE AUTHORITY OF THE ASSISTANT DIRECTOR GENERAL FOR TECHNICAL COOPERATION -- THE FUNDING IS TO COME FROM, INTER ALIA, DIRECT CONTRIBUTIONS FROM DONORS; RETENTION/TRANSFER OF FUND BALANCES AS AUTHORIZED BY DONORS; TRANSFER OF A SHARE OF FUNDS FROM THE DIRECT OPERATING COST RECOVERY ACCOUNT. ¶17. AGENDA ITEM 15, INNOVATIVE MODELS FOR LEVERAGING RESOURCES IN SUPPORT OF THE FIELD PROGRAM (DOC 102/15) DOCUMENT NOT YET AVAILABLE. ¶18. AGENDA ITEM 16, INFORMATION NOTE ON THE COST OF THE WORLD FOOD SUMMIT FIVE YEARS LATER. DOCUMENT NOT YET AVAILABLE. IV. BUDGETARY MATTERS -------------- ¶19. SUMMARY PROGRAM OF WORK AND BUDGET (SPWB) 2004-05 (DOC CL 124/3) BACKGROUND: THE FC IS REQUESTED TO EXAMINE THE "FINANCIAL UNCLASSIFIED PAGE 03 ROME 01601 03 OF 05 151123Z ASPECTS" OF THE SPWB, INCLUDING COST INCREASES, IMPACT OF EXCHANGE RATES, ETC. DISCUSSION: -- THE SPWB PROVIDES ZERO REAL GROWTH (ZRG) AND REAL GROWTH (RG) SCENARIOS. -- THE ZRG BUDGET REPRESENTS A NET INCREASE OF 5.2 PERCENT OVER THE CURRENT ASSESSMENT. -- THE RG BUDGET REPRESENTS A NET INCREASE OF 11 PERCENT OVER THE CURRENT ASSESSMENT. -- THE SPWB NOTES THAT UNFUNDED LIABILITIES FOR AFTER SERVICE MEDICAL CARE, IF NOT ATTENDED TO SHORTLY "WILL HAVE A SEVERE DEBILITATING EFFECT ON THE FINANCES OF FAO IN COMING YEARS." FAO MEMBERS ARE ASKED TO ACCOMMODATE THIS BY INCREASING ASSESSED CONTRIBUTIONS BY AN ADDITIONAL USD 14.1 MILLION (A FURTHER 2.2 PERCENT.) -- THE SPWB ALSO NOTES THAT, AT RECENT EXCHANGE RATES, THE BUDGET EXPRESSED IN USD WOULD BE APPROXIMATELY USD 56 MILLION MORE. HOWEVER, THE INTRODUCTION TO THE SPWB EXPRESSES THE DG'S EXPECATION THAT THE FC WILL RESOLVE THIS QUESTION BY AOPTING A SPLIT CURRENCY ASSESSMENT. DEPARTMENT UIDANCE REQUESTED ON FINANCIAL ASPECTS OF THE SPB, INCLUDING OVERALL BUDGET LEVEL. ¶20. SPLIT ASESSMENTS (DOCS 102/18 AND 102/INF/18) UNCLASSIFIED PAGE 04 ROME 01601 03 OF 05 151123Z BACKGROUD: THE FC HAS HAD THIS ITEM UNDER CONSIDERATION SNCE ITS 95TH SESSION IN 2000. FAO MANAGEMENT APPERS TO BE CONVINCED THAT A SPLIT ASSESSMENT SCHEM IS THE BEST WAY TO MINIMIZE THE IMPACT OF EXCHAGE RATE EXPOSURE. THE FC WILL BE REQUESTED TO EDORSE THE PROPOSALS TO IMPLEMENT SPLIT ASSESSMENTWITH A VIEW TO HAVING THE FAO BASIC TEXTS AMENDE AT THE NOVEMBER 2003 FAO CONFERENCE. DEPARTMNT GUIDANCE REQUESTED. ¶21. AGENDA ITEM 19, SCAE OF CONTRIBUTIONS 2004-05 (DOC 102/19) BACKGOUND AND COMMENT: FOR INFORMATION. AN ISSUE OF MPORTANCE TO CERTAIN MIDDLE-INCOME COUNTRIES (REPULIC OF KOREA, CHINA, ARGENTINA) WHOSE ASSESSMENT INCREASED AS A RESULT OF THE NEW SCALE. ¶22. AGENDA ITEMS 20, 21, 22, BUDGET FOR THE EUROPEAN UNCLASSIFIED UNCLASSIFIED PTQ8916 PAGE 01 ROME 01601 04 OF 05 151123Z ACTION IO-00 INFO LOG-00 MFA-00 AID-00 AMAD-00 CIAE-00 INL-00 EAP-00 EB-00 EUR-00 UTED-00 FDRE-01 FOE-00 TEDE-00 INR-00 L-00 DCP-01 NSAE-00 OES-00 OIC-02 CAEX-00 IRM-00 SS-00 TEST-00 FMP-00 SAS-00 /004W -------------- 5600EC 151123Z /38 R 151124Z APR 03 FM AMEMBASSY ROME TO SECSTATE WASHDC 9267 USDA FAS WASHDC 2620 USMISSION USUN NEW YORK AMEMBASSY ATHENS UNCLAS SECTION 04 OF 05 ROME 001601 SIPDIS FROM FODAG STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK USDA/FAS FOR REICH AND HUGHES ATHENS FOR CLEVERLEY E.O. 12958: N/A TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO SUBJECT: FAO 102ND FINANCE COMMITTEE PREVIEW COMMISSION FOR CONTROL OF FOOD AND MOUTH DISEASE; FOR THE REGIONAL ANIMAL PRODUCTION AND HEALTH COMMISSION FOR ASIA AND THE PACIFIC; AND FOR THE DESERT LOCUST COMMISSION. (DOCS 102/20, 21, 22). UNCLASSIFIED PAGE 02 ROME 01601 04 OF 05 151123Z BACKGROUND: FOR REVIEW AND COMMENT. ¶V. HUMAN RESOURCES MANAGEMENT ¶23. AGENDA ITEM 23, PROGRESS REPORT ON HUMAN RESOURCES MANAGEMENT (DOC 102/23) BACKGROUND: FOR INFORMATION. ¶24. AGENDA ITEM 24, STATISTICS OF PERSONNEL SERVICES (DOC 102/24) BACKGROUND: FOR INFORMATION. SOME SNAPSHOTS: BETWEEN 1994 AND 2002 PROFESSIONAL STAFF REDUCED BY 26 PERCENT; GENERAL SERVICE BY 39 PERCENT. THE DECREASE IN PROJECT STAFF (71 PERCENT) REFLECTS SIGNIFICANT REDUCTION OF FIELD PROJECT OPERATIONS. AVERAGE AGE AND LENGTH OF SERVICE FOR (NON-SENIOR) P POSITIONS HAS REMAINED FAIRLY CONSTANT OVER THE LAST DECADE: 42 YEARS ON APPOINTMENT, 52 YEARS ON SEPARATION. SEVENTY-NINE PERCENT OF FAO SENIOR STAFF AND 40 PERCENT OF FAO PROFESSIONAL STAFF WILL HAVE REACHED THE MANDATORY RETIREMENT AGE BY 2012. THE NUMBER OF WOMEN AT HEADQUARTERS HAS INCREASED FROM 21 TO 29 PERCENT SINCE 1995. ABOUT 60 PERCENT OF FAO STAFF WORK AT HEADQUARTERS; THE REST ARE IN THE FIELD OFFICES. ¶25. ANNUAL REPORTS OF THE ICSC AND UN JOINT STAFF PENSION BOARD TO THE GENERAL ASSEMBLY AND SUMMARY OF THE DECISIONS TAKEN (DOC 102/25) UNCLASSIFIED PAGE 03 ROME 01601 04 OF 05 151123Z BACKGROUND: FOR INFORMATION: UNGA-APPROVED CHANGES WHICH IMPACT SALARY SCALES, PENSIONABLE REMUNERATION. ALSO CHANGES TO GENERAL SERVICE AND OTHER LOCALLY RECRUITED CATEGORIES AND INCREASE IN EDUCATION GRANT. VI. ORGANIZATIONAL MATTERS -------------- ¶26. AGENDA ITEM 26, METHODOLOGY FOR DETERMINATION OF EQUITABLE GEOGRAPHIC DISTRIBUTION (CL DOC 124/15) BACKGROUND: INITIALLY A REQUEST BY THE LATIN AMERICAN GROUP AT THE LAST CONFERENCE TO EXAMINE OTHER METHODOLOGIES. THE FAO HAS NOW PREPARED TWO ALTERNATIVES FOR THE FC TO CONSIDER. -- UNDER BOTH OPTIONS A BASE NUMBER OF POSTS (RATHER THAN THE POSTS FILLED AT ANY GIVEN TIME) WOULD BE USED FOR CALCULATIONS. (THIS IS SIMILAR WITH UN METHODOLOGY). -- IN ADDITION, FAO PROPOSES TO INCREASE BY 341 THE NUMBER OF POSTS THAT WOULD BE COUNTED UNDER GEOGRAPHICAL DISTRIBUTION WHILE STILL EXCLUDING POSTS FUNDED FROM VOLUNTARY CONTRIBUTIONS, LANGUAGE STAFF AND THE DIRECTOR GENERAL. (COMMENT: IT IS UNCLEAR WHY THE POSTS WERE FORMERLY NOT COUNTED. END COMMENT) -- THE "WEIGHTING" SYSTEM WHEREBY POINTS ARE GIVEN FOR HIGHER LEVEL POSITIONS WOULD BE ALTERED TO BE COMPARABLE WITH THAT OF THE UN AND UNESCO. THIS WOULD SIGNIFICANTLY REDUCE THE WEIGHT GIVEN TO HIGHER-RANKING POSITIONS (E.G. UNCLASSIFIED PAGE 04 ROME 01601 04 OF 05 151123Z 15 POINTS FOR THE DDG IN THE OLD SYSTEM WOULD BECOME ONLY 4.3 POINTS IN THE NEW SYSTEM). COMMENT: THE FIRST OPTION INCREASES THE NUMBER OF "UNDERREPRESENTED COUNTRIES" SLIGHTLY. THE SECOND OPTION (WHICH FACTORS IN POPULATION SIZE) DRAMATICALLY REDUCES THE NUMBER OF "OVER-REPRESENTED" COUNTRIES. BOTH OPTIONS WOULD APPEAR TO BE DETRIMENTAL TO U.S. EFFORTS TO IMPROVE REPRESENTATION (WITH THE SECOND BEING ESPECIALLY SO, AS THE NUMBER OF OVERREPRESENTED COUNTRIES WOULD BE REDUCED FROM 77 TO 12),DESPITE THE FACT THAT THE NEW SYSTEM MIGHT ALSO MOVE THE U.S. CLOSER TO "EQUITABLE" REPRESENTATION. GUIDANCE REQUESTED: USDEL CONSIDERS BOTH OPTIONS PROBLEMATIC FROM THE PERSPECTIVE OF U.S. REPRESENTATION. ¶27. AGENDA ITEM 27, PROGRESS REPORT ON THE ORACLE PROJECT (DOC 102/27) BACKGROUND: FOR INFORMATION UNCLASSIFIED UNCLASSIFIED PTQ8918 PAGE 01 ROME 01601 05 OF 05 151123Z ACTION IO-00 INFO LOG-00 MFA-00 AID-00 AMAD-00 CIAE-00 INL-00 EAP-00 EB-00 EUR-00 UTED-00 FDRE-01 FOE-00 TEDE-00 INR-00 L-00 DCP-01 NSAE-00 OES-00 OIC-02 CAEX-00 IRM-00 SS-00 TEST-00 FMP-00 SAS-00 /004W -------------- 5600F4 151123Z /38 R 151124Z APR 03 FM AMEMBASSY ROME TO SECSTATE WASHDC 9268 USDA FAS WASHDC 2621 USMISSION USUN NEW YORK AMEMBASSY ATHENS UNCLAS SECTION 05 OF 05 ROME 001601 SIPDIS FROM FODAG STATE FOR IO/S LISA JACOBSON AND IO/EDA WINNICK AND KOTOK USDA/FAS FOR REICH AND HUGHES ATHENS FOR CLEVERLEY E.O. 12958: N/A TAGS: AORC KUNR KUNR KUNR KUNR KUNR ABUD FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO ABUD AORC FAO SUBJECT: FAO 102ND FINANCE COMMITTEE PREVIEW VII. OTHER MATTERS -------------- UNCLASSIFIED PAGE 02 ROME 01601 05 OF 05 151123Z ¶28. WORKING METHODS OF FINANCE COMMITTEE, DATE AND PLACE OF 103RD SESSION, ANY OTHER MATTERS. TAMLYN UNCLASSIFIED > 2003ROME01601 - Classification: UNCLASSIFIED