CZECHS ON UN SCALE ASSESSMENT

C O N F I D E N T I A L PRAGUE 001184 SIPDIS SIPDIS IO/S; EUR/NCE FOR ERIC FICHTE E.O. 12958: DECL: 09/24/2016 TAGS: AORC KUNR UNGA EZ SUBJECT: CZECHS ON UN SCALE ASSESSMENT REF: STATE 153946 Classified By: Political-Economic Counselor Mike Dodman for reasons 1.4 (b) and (d). ¶1. (C) Poloff met with Czech MFA Deputy Director of the UN Department Josef Vitek on September 25 to discuss UN scale assessment and deliver reftel talking points. Vitek said the Czechs plan to follow the EU's lead on whether to maintain the 22% ceiling rate on U.S. payments, and/or to modify the scale formula. He expects the EU to call for: (1) a change in the methodology to a formula based on a 6-year average, (2) a 37% ceiling rate for EU member states, and (3) an increase in the U.S. ceiling, based on the EU's view that the United States is in arrears on its UN fees and is therefore not entitled to benefit from the 22% ceiling. Vitek predicted that ultimately neither the U.S. ceiling nor the scale methodology will change (unless Japan succeeds in its efforts to lower its 19.5% assessment rate. In that event, Vitel predicted the U.S. ceiling would likely be raised). GRABER