Identifier
Created
Classification
Origin
09UNROME60
2009-10-09 10:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
UN Rome
Cable title:
FAO 137TH COUNCIL: IMPASSE OVER PROPOSED BUDGET LEVEL
how-toVZCZCXRO6489 OO RUEHRN DE RUEHRN #0060/01 2821003 ZNR UUUUU ZZH O R 091003Z OCT 09 FM USMISSION UN ROME TO RUEHC/SECSTATE WASHDC IMMEDIATE 1171 INFO RUEHC/USAID WASHDC RUEHRC/USDA FAS WASHDC RUCNDT/USMISSION USUN NEW YORK 0385 RUEHRN/USMISSION UN ROME 1245
UNCLAS SECTION 01 OF 02 UN ROME 000060
SENSITIVE
SIPDIS
IO/FO FOR ANDERSON/COOK, USDA FOR DOUVELIS
E.O. 12958: N/A
TAGS: EAGR EAID PREL FAO UN
SUBJECT: FAO 137TH COUNCIL: IMPASSE OVER PROPOSED BUDGET LEVEL
REF: A. USUN ROME 54
B. STATE 96467
UNCLAS SECTION 01 OF 02 UN ROME 000060
SENSITIVE
SIPDIS
IO/FO FOR ANDERSON/COOK, USDA FOR DOUVELIS
E.O. 12958: N/A
TAGS: EAGR EAID PREL FAO UN
SUBJECT: FAO 137TH COUNCIL: IMPASSE OVER PROPOSED BUDGET LEVEL
REF: A. USUN ROME 54
B. STATE 96467
1. (U) This message is sensitive but unclassified. Please
handle accordingly.
Summary and Action Request
--------------
2. (SBU) Members at the September 28-October 2 meeting of the
FAO Council could not reach consensus on the level of the
organization's budget for the 2010-11 biennium, and whether the
entire cost of the Immediate Plan of Action (IPA) reform program
should be included in the regular budget financed by assessed
contributions or partly through voluntary contributions, as
proposed by FAO Management. Members agreed to an informal
"Friends of the Chair" process to attempt to resolve outstanding
budget issues before the FAO Conference in November (18-23) at
which the budget will be approved. Mission will continue
advocating strongly for lower expenditures in the budget, but
unfortunately has found very little support for the U.S.
position of zero nominal growth (ZNG) for the budget. Action
request: Mission recommends instructions that would allow
flexibility in negotiations permitting us to commit up to a
maximum of 7.1 percent increase in the regular ("net
appropriation") budget that must also include all the IPA reform
costs. Mission would seek the lowest possible budget level.
End summary and action request.
No Consensus on 2010-2011 Budget
--------------
3. (SBU) The 49-member FAO Council met in Rome September
28-October 2 to debate key governance issues, in particular the
FAO's proposed biennial Program of Work and Budget (PWB),
including how to fully fund far-reaching reforms agreed to by
Conference last November. Members debated extensively the
merits of the biennial draft PWB that proposes cost increases of
7.1 percent above the current biennium, with an additional
increase in assessments of 3.6 percent for financial health
issues (e.g., After Service Medical Coverage, and replenishment
of a Special Reserve Account). The draft PWB only included 50
percent of the IPA costs, with the remaining USD 19.1 million to
be funded through Core Voluntary Contributions. If these IPA
costs were to be added to the regular budget, the total increase
in assessed contributions would be almost 13 percent. Mission
urged during open plenary a ZNG budget that included all IPA
costs. While many delegations noted general concern over
Management's proposed increase in assessments, only a handful
joined us in favoring ZNG, even after our strong advocacy both
here and in capitals through demarches. All but Mexico told us
privately that they would readily agree to a modest increase in
their assessments. Most delegations spoke in favor of the draft
budget with Brazil and China advocating an even higher budget
level. It seems clear that most members, as well as Management,
are willing to reluctantly postpone to another biennium the
financial health items contained in the draft PWB.
Next Steps
--------------
4. (SBU) Given the lack of consensus on the key budget issues,
members agreed to establish a Friends of the Chair Group that
would meet before the November Conference in an attempt to forge
a consensus on the PWB. Mission will also meet with FAO
Management to obtain more detailed information on the
assumptions used to calculate the proposed cost increases in the
draft budget, especially since Management did not provide this
information requested by members of the Finance Committee,
including the United States, during the July and September
meetings. We will also coordinate closely with our Geneva Group
and OECD colleagues to press for reductions in the proposed
budget and continue to insist that all IPA reform costs be
included in the regular budget.
UN ROME 00000060 002 OF 002
Comment
--------------
5. (SBU) Recognizing the possibility that the November Summit
may result in calls by some for even greater increases to the
FAO budget to deal with food security, we hope to reach early
consensus on an acceptable budget figure that includes 100
percent of the costs of reform. Based on our conversations
here, we believe we can help shape consensus around a budget
level increase, including all IPA costs, that would not exceed
7.1 percent.
COUSIN
SENSITIVE
SIPDIS
IO/FO FOR ANDERSON/COOK, USDA FOR DOUVELIS
E.O. 12958: N/A
TAGS: EAGR EAID PREL FAO UN
SUBJECT: FAO 137TH COUNCIL: IMPASSE OVER PROPOSED BUDGET LEVEL
REF: A. USUN ROME 54
B. STATE 96467
1. (U) This message is sensitive but unclassified. Please
handle accordingly.
Summary and Action Request
--------------
2. (SBU) Members at the September 28-October 2 meeting of the
FAO Council could not reach consensus on the level of the
organization's budget for the 2010-11 biennium, and whether the
entire cost of the Immediate Plan of Action (IPA) reform program
should be included in the regular budget financed by assessed
contributions or partly through voluntary contributions, as
proposed by FAO Management. Members agreed to an informal
"Friends of the Chair" process to attempt to resolve outstanding
budget issues before the FAO Conference in November (18-23) at
which the budget will be approved. Mission will continue
advocating strongly for lower expenditures in the budget, but
unfortunately has found very little support for the U.S.
position of zero nominal growth (ZNG) for the budget. Action
request: Mission recommends instructions that would allow
flexibility in negotiations permitting us to commit up to a
maximum of 7.1 percent increase in the regular ("net
appropriation") budget that must also include all the IPA reform
costs. Mission would seek the lowest possible budget level.
End summary and action request.
No Consensus on 2010-2011 Budget
--------------
3. (SBU) The 49-member FAO Council met in Rome September
28-October 2 to debate key governance issues, in particular the
FAO's proposed biennial Program of Work and Budget (PWB),
including how to fully fund far-reaching reforms agreed to by
Conference last November. Members debated extensively the
merits of the biennial draft PWB that proposes cost increases of
7.1 percent above the current biennium, with an additional
increase in assessments of 3.6 percent for financial health
issues (e.g., After Service Medical Coverage, and replenishment
of a Special Reserve Account). The draft PWB only included 50
percent of the IPA costs, with the remaining USD 19.1 million to
be funded through Core Voluntary Contributions. If these IPA
costs were to be added to the regular budget, the total increase
in assessed contributions would be almost 13 percent. Mission
urged during open plenary a ZNG budget that included all IPA
costs. While many delegations noted general concern over
Management's proposed increase in assessments, only a handful
joined us in favoring ZNG, even after our strong advocacy both
here and in capitals through demarches. All but Mexico told us
privately that they would readily agree to a modest increase in
their assessments. Most delegations spoke in favor of the draft
budget with Brazil and China advocating an even higher budget
level. It seems clear that most members, as well as Management,
are willing to reluctantly postpone to another biennium the
financial health items contained in the draft PWB.
Next Steps
--------------
4. (SBU) Given the lack of consensus on the key budget issues,
members agreed to establish a Friends of the Chair Group that
would meet before the November Conference in an attempt to forge
a consensus on the PWB. Mission will also meet with FAO
Management to obtain more detailed information on the
assumptions used to calculate the proposed cost increases in the
draft budget, especially since Management did not provide this
information requested by members of the Finance Committee,
including the United States, during the July and September
meetings. We will also coordinate closely with our Geneva Group
and OECD colleagues to press for reductions in the proposed
budget and continue to insist that all IPA reform costs be
included in the regular budget.
UN ROME 00000060 002 OF 002
Comment
--------------
5. (SBU) Recognizing the possibility that the November Summit
may result in calls by some for even greater increases to the
FAO budget to deal with food security, we hope to reach early
consensus on an acceptable budget figure that includes 100
percent of the costs of reform. Based on our conversations
here, we believe we can help shape consensus around a budget
level increase, including all IPA costs, that would not exceed
7.1 percent.
COUSIN