Identifier
Created
Classification
Origin
06BEIJING6629
2006-04-07 12:57:00
CONFIDENTIAL
Embassy Beijing
Cable title:  

PRC/UN: SCALE ASSESSMENTS AND UN REFORM

Tags:  PREL PGOV EAID UN CH 
pdf how-to read a cable
VZCZCXRO5910
OO RUEHCN RUEHGH
DE RUEHBJ #6629/01 0971257
ZNY CCCCC ZZH
O 071257Z APR 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2421
INFO RUCNDT/USMISSION USUN NEW YORK PRIORITY 1282
RUEHOO/CHINA POSTS COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 006629 

SIPDIS

SIPDIS

USUN FOR PHEE

E.O. 12958: DECL: 04/07/2016
TAGS: PREL PGOV EAID UN CH
SUBJECT: PRC/UN: SCALE ASSESSMENTS AND UN REFORM

Classified By: Political External Unit Chief Edgard Kagan. Reasons 1.4
(b/d).

Summary
-------

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 006629

SIPDIS

SIPDIS

USUN FOR PHEE

E.O. 12958: DECL: 04/07/2016
TAGS: PREL PGOV EAID UN CH
SUBJECT: PRC/UN: SCALE ASSESSMENTS AND UN REFORM

Classified By: Political External Unit Chief Edgard Kagan. Reasons 1.4
(b/d).

Summary
--------------


1. (C) The PRC is concerned at Japan's proposal to change the
UN Scale of Assessments and is working to solidify its
support with G-77 members to block the changes, according to
MFA IO Department UN Division Director Yang Tao. Yang told
Poloffs April 5 that Beijing is unhappy with the U.S.
proposal to base assessments on a Purchasing Power Parity
(PPP) model of GDP, but does not believe there is much danger
that it will be adopted. Noting that the UN Fifth Committee
failed to adopt a resolution on reform for the first time in
ten years due to Russian and Chinese opposition to Japan's
proposal, Yang said Beijing worries that Washington will
publicly back Tokyo's proposal. He cautioned that the need
to solidify G-77 support might force China to take a clearer
stance on UN Management Reform, which is likely to result in
greater support for the G-77 position. Poloffs cautioned
against linking management reform to the scale of
assessments. End Summary.


2. (C) During an April 5 meeting with Poloffs, MFA IO
Department UN Division Director Yang Tao said the PRC is very
concerned about the Japanese proposal to change the UN Scale
of Assessments to require Permanent Members of the Security
Council to pay a minimum of five percent of the UN regular
budget. Yang said Beijing is unhappy at the public message
that it is not living up to its responsibilities as a P-5
member as well as the possibility of seeing a significant
increase in its UN dues. He commented that the resentment
that most UN members feel toward the P-5 has helped the
Japanese proposal gain traction within the General Assembly,
forcing Beijing to scramble to build diplomatic support to
try to block the change to the scale of assessments.


3. (C) The PRC is particularly worried that the United States
will publicly support Japan's proposal, according to Yang.
China hopes the United States will openly support the PRC and
Russian position that capacity to pay is sacrosanct. While
the PRC recognizes the United States may have difficulty
backing a PRC/Russian position, it would be enough if the
United States does not support Japan's proposal, Yang said.
India has submitted a reasonable six-point proposal, which
China supports. It is not necessary to upset the status quo,
he argued.


4. (C) Poloffs emphasized the U.S. view that purchasing power
parity (PPP) is a reasonable economic measure of a given
country's capacity to pay. Yang said the PRC believes that
PPP calculations measure a country's capacity to consume
rather than its capacity to pay. More importantly, Beijing
assesses that there is no significant support within the
General Assembly or on the Fifth Committee for the U.S.
proposal, as most countries are very reluctant to move to a
new yardstick that is not used anywhere else in the UN
system. Yang added that a number of states are uncomfortable
with the Japanese proposal's expansion of the special status
of the P-5 beyond the Security Council.


5. (C) Yang noted that Beijing has stated its support for the
22 percent cap on U.S. dues but cautioned that revisiting the
longstanding principle of basing UN dues on the "capacity to
pay," might encourage some countries to reconsider the
principle of setting ceilings on contributions. Hastening to
add that the PRC has no desire to reopen this issue, he then
noted that the threat posed by the Japanese proposal might
require the PRC to work to strengthen support from G-77
members, many of whom might want to reopen debate on a
variety of issues. In that regard, Yang said that G-77
members are unhappy with Beijing's low profile on management
reform, arguing that by not taking clear position, the PRC is
providing de facto support to the U.S. Yang said that China
has been trying to balance its clear understanding of the
need for management reform with maintaining its "role" as
representative of the developing world on the P-5.


6. (C) Cautioning against any effort to revisit the dues cap,
Poloffs urged strong PRC support for management reform and
noted the shortsightedness of linking the issue to the scale
of assessments. Yang said that the PRC has a strong interest
in management reform, noting that it is already one of the
top 10 contributors to the UN Budget. Beijing would like its
money to be spent well, but not at the cost of having to
spend a lot more money, argued Yang. Poloff urged that China
take a long-term perspective and focus on the shared P-5
interest in an effective UN.

BEIJING 00006629 002 OF 002


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