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