INSTRUCTIONS - USUN VENEZUELAN DRAFT RESOLUTION

UNCLAS STATE 121432 SENSITIVE SIPDIS NSC FOR JBRAUSE AND PBROWN TREASURY FOR JHURLEY E.O. 12958: N/A TAGS: EFIN ECON UN VZ SUBJECT: INSTRUCTIONS - USUN VENEZUELAN DRAFT RESOLUTION SEEKING A UN FINANCIAL CRISIS SUMMIT DURING THE 63RD GENERAL ASSEMBLY REF: USUN NEW YORK 001040 ¶1. (SBU) USDEL is instructed to work with like-minded delegations to seek to postpone action on this resolution and if unsuccessful, and it is presented for consideration in plenary, to call for a vote and to vote no. ¶2. (U) Background: The Venezuelan government has proposed the UN General Assembly (GA) pass a resolution entitled "Follow up to the outcome of the Millennium Summit" (reftel), which inter alia, convenes a "United Nations Summit during the sixty third session of the General Assembly in order to examine the underlying causes of the financial crisis, undertake a comprehensive review of the international financial institutions, particularly the Bretton Woods institutions, with a view to articulating a policy framework for transforming the international financial system into an equitable, inclusive, democratic, and development oriented system that reflects the interest of all member states." It also invites ECOSOC to convene a high level meeting to examine the current financial crisis. ¶3. (U) Iran, Syria, Belarus, Cuba and a variety of other Latin American countries, including Brazil, are co-sponsoring this resolution. While it initially appeared that the Venezuelan government intended to introduce the resolution and call for consensus acceptance on November 17 without prior informal discussions, an informal session has been scheduled for November 14. ¶4. (SBU) USG Position: The USG finds Venezuela,s proposal poorly timed and unhelpful. There are numerous efforts underway, including the Summit on Financial Markets and the World Economy in Washington, to address the financial crisis. Rather than calling for a UN summit, the United Nations and its agencies should be examining ways, within their existing mandates, to help vulnerable countries address problems related to the food, energy and financial crises. ¶5. (U) Text of Draft Resolution The General Assembly, Concerned by the deep and far reaching impact and multidimensional consequences of the current global financial crisis, its effects on the global economy and the financial system, as well as its impact on the efforts to achieve the internationally agreed development goals, including the Millennium Development goals. Underlining the important role and authority of the United Nations on global matters of concern to the international community as set out in the United Nations Charter, The General Assembly, ¶1. Decides to convene a United Nations Summit during the sixty third session of the General Assembly in order to undertake a comprehensive review of the international financial system, including the functioning of the Bretton Woods institutions, with a view to articulating a policy framework for transforming the international financial system into an equitable, inclusive, democratic, and development oriented system that reflects the interests of all member States; ¶2. Request the President of the General Assembly, in close consultation with member States, to finalize the organizational arrangements for the United Nations Summit; ¶3. Invites the ECOSOC to convene a high level meeting to examine the current financial crisis and present its recommendations to the General Assembly, as part of the preparatory process for the United Nations Summit; ¶4. Requests the Secretary General to take all appropriate measures to implement the present resolution. End text of draft resolution. ¶6. (SBU) USUN should draw upon the following points in informal discussions and in an EOV: -- The United States appreciates this opportunity to share its concerns regarding the proposal to hold a global summit on the current international financial crisis. -- While we support the idea of convening summits as a way to address pressing global issues, this mechanism, by its very nature, should be used sparingly and when it will be most effective. It should only be undertaken after careful consideration and discussion. -- In this case we find the proposal unhelpful, particularly as the fundamental issues are already being addressed on a multilateral basis by bodies with relevant expertise that are better able to take necessary action with both due haste and deliberation. -- The United Nations and its agencies have an important role to play in the current environment by showing leadership in working within their existing mandates to assist member states in coping with the ongoing development challenges, including those that might be exacerbated by a global economic slowdown. -- In the coming weeks and months, the international response to the financial crisis and our dialogue on how to address its impact will continue to take shape. Even as it goes through a political transition, the United States will continue to engage in our ongoing discussion of the appropriate mechanisms the international community should employ to support a strong global economic system. RICE