UN SCALE OF ASSESSMENT: EXPERT-LEVEL MEETING WITH

UNCLAS USUN NEW YORK 001769 SIPDIS SIPDIS E.O. 12958: N/A TAGS: AORC UNGA SUBJECT: UN SCALE OF ASSESSMENT: EXPERT-LEVEL MEETING WITH EUROPEAN UNION PRESIDENCY ¶1. (SBU) On September 7, USdel (UNMR) met with Finnish Fifth Committee delegate Katja Pehrman, in her capacity as EU president, to discuss positions and approaches to the UN scale of assessment methodology. USdel emphasized the need for the major financial contributors to work towards a common approach to shift greater financial burden to a handful of large developing economies. Specifically, the concept of a sliding gradient -- as proposed by the USG in 2000 -- was discussed as a "real possibility" in the upcoming negotiation on the methodology. ¶2. (SBU) Pehrman was enthused about working towards a common approach with other major financial contributors, while recognizing that any such effort would have to be compatable with the final EU position on the scale methodology. In this regard, Pehrman confirmed that the EU is intent on reaching a group position so that it will not be sidelined in this fall's deliberations, though it will be hard-pressed to reach a unified position by the end of September. Comment: Pehrman was surprised and concerned to learn that scale might be among the first agenda items to be introduced in the Fifth Committee in October, and said that she would appeal to the Committee Secretary to delay the introduction until the group was in a position to make an official statement. End comment. The EU is strongly in favor of a 6-year base period but has not yet come to agreement on other elements, including the ceiling. Under the current methodology (average of 3 and 6 year base),the EU's collective rate will increase from 36.525 per cent to 38.836 per cent. If adjusted to a 6-year base, the EU's rate would be 38.123 per cent, and under a 3-year base it would rise to 39.553 per cent. ¶3. (SBU) Pehrman conveyed that the ceiling level is being deliberated among the group and some countries want to revisit the level, however, it was her sense that the EU would "probably not be a threat" on the final level of the ceiling. While not willing to identify the biggest proponents of ceiling change, Pehrman confirmed that the UK is still bitter over the agreement reached in 2000, in which the US promised -- but never delivered -- mitigation of approximately $10 million to the UK. Pehrman also requested information on payment of US arrears, stating that any positive information in this regard could help make the case to the EU that the US had met its financial obligations in conformity with GA resolution 55/5 C. ¶4. (SBU) With regard to purchasing power parity, USdel reiterated that it remains a key concept to be pursued by the USG this fall. Pehrman stated that EU members continue to maintain mixed positions on the application of PPP (Comment: interestingly, she noted that France was one of the biggest opponents of PPP. End comment). As such, she did not believe that PPP would make it in as a core element of the EU's position, but may be highlighted as a concept that the group would want to seriously consider for future application. BOLTON