Identifier
Created
Classification
Origin
04THEHAGUE1235
2004-05-21 09:34:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

PCA: SECRETARY GENERAL REAPPOINTED AFTER

Tags:  ABUD AFIN AORC IBPCA 
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UNCLAS SECTION 01 OF 02 THE HAGUE 001235 

SIPDIS

DEPARTMENT FOR IO/S - ABRAHAMS/JACOBSON, L - BETTAUER,
L/CID - CLODFELTER, L/PIL - KOVAR, L/UNA - KIINGI

E.O. 12958: N/A
TAGS: ABUD AFIN AORC IBPCA
SUBJECT: PCA: SECRETARY GENERAL REAPPOINTED AFTER
FRENCH-DOMINATED ADMINISTRATIVE COUNCIL MEETING

REF: A. STATE 84654


B. STATE 105267

UNCLAS SECTION 01 OF 02 THE HAGUE 001235

SIPDIS

DEPARTMENT FOR IO/S - ABRAHAMS/JACOBSON, L - BETTAUER,
L/CID - CLODFELTER, L/PIL - KOVAR, L/UNA - KIINGI

E.O. 12958: N/A
TAGS: ABUD AFIN AORC IBPCA
SUBJECT: PCA: SECRETARY GENERAL REAPPOINTED AFTER
FRENCH-DOMINATED ADMINISTRATIVE COUNCIL MEETING

REF: A. STATE 84654


B. STATE 105267


1. (SBU) Summary: In a meeting dominated by the French
Ambassador's nine interventions on budgetary and linguistic
matters, the Permanent Court of Arbitration (PCA)
Administrative Council approved the reappointment of
Secretary General Tjaco van den Hout to a second five-year

SIPDIS
term. The reappointment itself followed round praise by a
number of delegations, without a voice of dissent. The
French indicated that they expect to make various proposals
for consideration by a future Administration Council meeting,
dealing in particular with its demand that the PCA hire
French-speaking staff. End summary.


2. (SBU) The Administrative Council of the PCA met on May 17
to consider its budgetary, financial and annual reports. Two
other items were on the agenda: a proposed mechanism to deal
with Member States which have failed to provide assessed
contributions more than two years running, and the
reappointment of the Secretary General (SG). The former item
was deferred to the next PCA regular meeting, likely to take
place in the fall.


3. (SBU) Before reaching the SG's reappointment, the Council
spent approximately two hours reviewing what many delegations
considered to be a routine set of reports demonstrating (1)
the PCA's performance under the current budget and (2) its
level of activities over the past year. Nonetheless, French
Ambassador Anne Gazeau-Secret intervened a remarkable nine
times on two specific issues. First, she focused on the
PCA's continuing budgetary difficulties, remarking that she
could not understand how the PCA could be in a "precarious
situation" even after last year's budget changes. She made
this point under a number of headings and was supported, to
some extent, by Spain and Switzerland, and to a lesser extent
Brazil. The SG responded that he was "taken aback" by the
French position, noting that the current budget was not
expected to resolve the perennial budgetary problems the PCA
faces. The Swiss representative focused on what she called
"transparency" in the PCA's budgeting process, and the French

-- following South Africa's note of support for the SG's
budget report -- then reviewed what she considered items that
were "difficult to understand" in the current budget. USDEL
deployed the instructions in para 4 of ref A but also noted
that we had no objection to the budget report. Following the
SG's response to the French explaining the budget, the report
was adopted by consensus.


4. (SBU) The SG introduced the financial report by noting
that staff cuts occurred over the past year and that further
vacancies are not expected to be filled because of the
financial strains on the PCA. He also has instituted a
travel ban for staff in order to cut costs. The financial
report was ultimately adopted, and then Gazeau-Secret
launched into what appeared to be her delegation's main
problem -- the lack of French-speaking staff. She urged the
PCA to be transparent in identifying staff and its
"linguistic composition," including by identifying the
nationality of each of the staff. She said she would prepare
a proposal for the next meeting, which the SG welcomed while
at the same time explaining how the PCA's inability to hire
has precluded it from replacing the Francophone staffers who
left recently. He also reminded the Council that the PCA
maintains an extremely "tiny" staff compared to other
organizations. The French nonetheless returned to this theme
a number of times during her remaining interventions.


5. (SBU) Other delegations -- Switzerland, Spain, Cuba,
Italy, Canada and Senegal -- echoed the linguistic message of
France, while some couched it in terms of geographic
representation. The SG had two ready responses. First, he
expressed a desire to maintain at least one Francophone
lawyer on staff, suggesting that he would recruit on a
preferential basis to achieve this goal. Second, he made a
spirited case for the PCA's global efforts to attract cases
and raise its profile. He noted the foundation of regional
arbitral facilities in Costa Rica and South Africa, and
suggested that additional facilities are being considered for
Central/Eastern Europe, Lebanon and Malaysia. Like the other
reports, the annual report was finally adopted by consensus.


6. (SBU) The final agenda item concerned van den Hout's
reappointment. It was widely known that the French in The
Hague were seeking to undermine van den Hout's position (ref
B). As it happened, the French did not muster any argument
against his reappointment, seeking only to see whether the
appointment could be deferred until a time when all EU
ambassadors -- some of whom had left the meeting by this
point -- were in the room. (This was rejected by the chair.)
Thus, all reps who spoke up under this heading -- Jordan,
Costa Rica, Hungary, South Africa, Pakistan, Slovak Republic,
Egypt, Lebanon, and USDEL -- spoke in favor of his
reappointment. Van den Hout thanked USDEL privately for its
work on behalf of his reappointment. He expressed his
particular thanks to Ambassador Sobel, who had raised with
Foreign Minister Bot last week the strong U.S. support for
van den Hout.


7. (SBU) Comment: Going into the Council meeting, it was not
clear that van den Hout's reappointment would go smoothly.
As it turns out, the persistent and often sloppy critique by
the French did not undermine van den Hout's reputation nor
his position. In some respects, the French interventions
gave van den Hout repeated opportunities to tout the
achievements of the PCA over the past year and to remind the
Council that his original budget proposals last year -- which
were too much for the diplomatic and budget traffic to bear
-- would have gone much further in resolving the PCA's
financial problems. Embassy now anticipates that the French
will make proposals on "linguistic" or "geographic"
representation which the Council will consider by this fall.
Without the leverage over van den Hout's position, however,
it may be more difficult for the French to get the sympathy
of other delegations and the PCA. End comment.
RUSSEL