Identifier
Created
Classification
Origin
05ROME2162
2005-06-23 12:20:00
UNCLASSIFIED
Embassy Rome
Cable title:  

UNIDROIT SUB-FINANCE COMMITTEE DISCUSSES DEPUTY

Tags:  AORC ABUD UNIDROIT 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS ROME 002162 

SIPDIS


FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME

L/PIL FOR HAL BURMAN AND JEFF KOVAR
IO/S FOR LISA SPRATT

E.O. 12958: N/A
TAGS: AORC ABUD UNIDROIT
SUBJECT: UNIDROIT SUB-FINANCE COMMITTEE DISCUSSES DEPUTY

SECRETARY GENERAL POSITION

SIPDIS

REF: A) 5/30 Berton/Burman e-mail B) 5/9 Berton/Burman
e-mail

UNCLAS ROME 002162

SIPDIS


FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME

L/PIL FOR HAL BURMAN AND JEFF KOVAR
IO/S FOR LISA SPRATT

E.O. 12958: N/A
TAGS: AORC ABUD UNIDROIT
SUBJECT: UNIDROIT SUB-FINANCE COMMITTEE DISCUSSES DEPUTY

SECRETARY GENERAL POSITION

SIPDIS

REF: A) 5/30 Berton/Burman e-mail B) 5/9 Berton/Burman
e-mail


1. Summary: the sub-Finance Committee of the
International Institute for the Unification of Private
Law (UNIDROIT) met on June 9 to discuss the hiring of a
Deputy Secretary General for the organization. The
meeting was a result of an April 2005 Governing Council
recommendation to accept a UK-offer of 50,000 pounds to
stage an open competition for the post. Discussion
centered on the budget consequences of this one-time
offer, particularly in the years after 2006. No clear
consensus was reached and the sub-committee requested
additional information from the Secretariat regarding
where additional funds might be found for the out years.
End Summary.


2. The issue first surfaced at the April Governing
Council session, when the UK offered a one-time
contribution of 50,000 pounds (approximately 70,000
euros),to be earmarked for the hiring of a Deputy
Secretary General. The offer made no allowances for the

SIPDIS
out years and was conditioned on the hiring procedure for
the new Deputy SYG being an open competition (because of
budget shortfalls, the organization had planned to
temporarily appoint the senior Research Officer to the
position). In making its recommendation, the Governing
Council acknowledged that the one-time nature of the
contribution might force UNIDROIT to limit the contract
term offered to any prospective candidate to one year.
Committee members were invited to make comments (ref B)
prior to the meeting. Canada, France and Germany all
offered comments, primarily related to the implication
for budgets in the years 2007 and beyond, as well as
stating a concern about the limited pool of applicants
should only a one-year contract be offered.


3. The subcommittee met at the request of Chairman Luis
Cuesta (Spain) and UNIDROIT Secretary General Herbert
Kronke. Canada, France, Germany, Italy, Spain and the UK
attended, in addition to the U.S. The SYG laid out the
2006 budget scenario first, indicating that the extra
50,000 pounds would cover all previously budgeted
expenses plus the cost of hiring a new Deputy SYG, so
long as the new Deputy was single with no children (a
lower compensation scale applies). To maintain the
Deputy post for 2007, however, assessed dues for all
member states would have to be increased by an estimated
4.2 percent, not even taking into account the inclusion
in the regular program budget of the mandated depositary
function of the Cape Town Convention. The SYG added that
the willingness of the previous Deputy SYG to work full-
time for half-time pay (mentioned in prior reporting
cables) probably saved the organization 350,000 euros
over the past four years, and now the organization is
finding it difficult to cover the actual cost of a full-
time employee from a resource base that is lower than it
otherwise should have been.


4. While there was general support for the concept of an
open competition, participants were unanimous in their
concern for the out years and in their desire for all
such recurring budgetary needs to be covered by the
regular program budget. While Italy, the largest donor,
was somewhat flexible on the subject of budget increases,
Germany stated that no new resources would be forthcoming
and Canada joined the U.S. in reiterating its ZNG policy
for international organizations. USDEL, supported by
Canada, stated that a budget increase of 4.2 percent
would simply not fly. USDEL acknowledged that it would
be difficult to simply say 'no' to a gift of 50,000
pounds, but noted that there was insufficient information
regarding how further savings might be found, including
the possibility of program cuts, to make an informed
decision regarding the UK contribution. . The UK rep
was quiet, other than to re-state that the contribution
was a one-time, time-limited offer and that there would
be no guarantee of any future contribution.


5. While no clear consensus was reached, the committee
agreed that it was difficult to refuse the 50,000 pounds,
and the competition is proceeding. Meanwhile, the SYG is
preparing additional documentation related to the budget
implications, including how the limited budget will
affect the strategic plan of the organization.

HALL


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2005ROME02162 - Classification: UNCLASSIFIED