UN SEEKS CONCURRENCE FROM U.S. TO TRANSFER PART OF

UNCLAS USUN NEW YORK 000044

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: AORC AFIN UN
SUBJECT: UN SEEKS CONCURRENCE FROM U.S. TO TRANSFER PART OF
BALANCE FROM ETHIOPIA/ERITREA BORDER TRUST FUND TO THE
ERITREA-ETHIOPIA BOUNDARY COMMISSION



1. This is an action request. See para. 4.


2. USUN has faxed to Department (IO/PSC) a note from
Assistant Secretary General/Controller for Management Warren
Sach, addressed to Ambassador Wolff, dated January 15, 2007
notifying us that the United Nations Trust Fund in support of
the delimitation and demarcation of the Ethiopia/Eritrea
Border has a balance of approximately $5.4 million remaining
as of December 31, 2006 and proposes that part of the fund
balance due to the U.S. Government be transferred to support
the activities of the Eritrea-Ethiopia Boundary Commission.
If a response is not received by January 31, 2007 Mr. Sach
will assume that there is no objection to his proposal. Text
of the note follows in para. 3 below.


3. Begin Text:

Dear Mr. Ambassador,

I have the honor to refer to the United Nations Trust Fund in
support of the delimitation and demarcation of the
Ethiopia/Eritrea Border, established under Security Council
resolution 1177 of 26 June 1998, and to which your government
has been a major contribution since its inception. The
expenditures incurred to date amount to US $7.6 million and
there is a balance of approximately US $5.4 million
(inclusive of interest) as of 31 December 2006.

The Eritrea-Ethiopia Boundary Commission was established
pursuant to an agreement dated 12 December 2000 (the
"December Agreement"). Paragraph 17 of Article 4 of that
agreement states that "the expenses of the Commission shall
be borne equally by the two parties." For the most part,
this arrangement has facilitated the work of the Commission
since its inception. During the past year however, this
arrangement has faltered and has left the Commission without
adequate resources to cover its expenses. As a result of
this development, I recently received a request from Sir
Elihu Lauterpacht, President of the Boundary Commission to
consider making resources from the above-mentioned trust fund
available to bridge the shortfall.

In view of the prevailing circumstances, and the fact that
paragraph 17 of Article 4 also states that "to defray its
expenses, the Commission may accept donations from the United
Nations Trust Fund established under paragraph 8 of Security
Council resolution 1177 of 26 June 1998", I am writing to
seek your concurrence to transfer resources from the trust
fund to support the activities of the Commission. The
Commission's estimate of its expenses, already incurred and
immediate requirements, as at 27 November 2006 amount to
$580,000.

Given the current critical funding situation of the
Commission, I would highly appreciate your response by 31
January 2007. If no response is forthcoming by that date, I
would assume that you have no objection to my proposal to use
part of the fund balance due to your government to support
the activities of the Commission.

Once again I take this opportunity to thank the government of
United States for its continued support of the
Ethiopia/Eritrea peace process.

Sincerely,

/s/

Warren Sach
Assistant Secretary-General
Controller

End Text


4. Action Requested: Mission requests instructions be
provided regarding proposal as noted in text of note in para.
3 above.

WOLFF