UNGA/C-5: G77 AND OTHERS ATTACK U.S. FOR ARREARS,

UNCLAS USUN NEW YORK 001031

SIPDIS

E.O. 12958: N/A
TAGS: AORC KUNR PREL UNGA
SUBJECT: UNGA/C-5: G77 AND OTHERS ATTACK U.S. FOR ARREARS,
WHILE SEVERAL COUNTRIES RECOGNIZE ITS EFFORTS AND THE
IMPROVING FINANCIAL SITUATION


1. (U) SUMMARY: Recently, Under Secretary General Angela Kane
briefed the Fifth Committee during a formal session on Item
134: Improving the financial situation of the United Nations.
Following this briefing, the Fifth Committee held another
formal meeting to discuss this issue and received updates
from the Controller on recently received payments by certain
Member States. The G-77 and China began the discussion by
criticizing the United States for being the country
responsible for the "grim and disappointing" financial
situation of the U.N. A litany of G-77 countries repeated the
attacks, with Venezuela, Cuba, and Nicaragua amongst the most
vitriolic. Cuba took the opportunity to again condemn the
United States for its embargo against them. Australia and
Singapore recognized U.S. efforts to pay down arrears, while
several others commented on the improved financial
circumstance of the United Nations. The United States closed
the session with a brief statement noting its recent payments
and overall effort to meet its financial obligations to the
United Nations. The complete list of speakers were Sudan (on
behalf of the G-77 and China),Sweden (on behalf of the
European Union and associated countries),Mexico (on behalf
of the Rio Group),the Philippines (on behalf of the
Association of Southeast Asian Nations),Canada (on behalf of
CANZ),Nicaragua, Singapore, India, Japan, Cuba, Bangladesh,
Pakistan, China, Uruguay, Argentina, Turkey, the Russian
Federation, Venezuela, and the United States. END SUMMARY.

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OUTLOOK ON FINANCES AND ATTITUDE TOWARDS U.S. REMAINS
NEGATIVE
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2. (U) G-77 ATTACKS U.S. ON BACK PAYMENTS: As in previous
years, the G-77 was highly critical of the United States
ignoring the recent U.S. payments. Sudan, speaking on behalf
of the G-77 and China remarked "the breakdown of unpaid
assessed contributions to the Regular Budget shows a high
degree of concentration in one particular Member State
accounting for more than 93 per cent of the total." The G-77
partially refuted the validity of reports that the United
States has begun to pay its arrears, noting its "surprise at
the Secretary-General's hasty press statement last August
congratulating the payment of contribution of this member
state." The G-77 claimed that the United States "is only and
hardly half way of fulfilling its legal and financial
obligations." The G-77 expressed disappointment with the
United States following the painstakingly-negotiated scales
of assessment compromise in 2000, commenting "we deeply
regret that the major contributor has not fulfilled its part
of the arrangement." While not suggesting any particular next
steps, the G-77 noted that "all actions should be taken in
order to facilitate payments of assessed contributions."

3. (U) VENEZUELA, NICARAGUA, AND CUBA ADD TO ATTACKS ON U.S.:
Venezuela noted that it is "quite concerned that 93% of
arrears lie with one state" and contended that the arrears of
the United States are used as an instrument of power. They
reminded the Secretary General of his "obligation to monitor
the main debtor, the United States." Nicaragua criticized the
U.S., but also expressed some hope for the future, noting a
"hope that those days when the major contributor used its
debt to force its measures through, we hope that these days
have been relegated to the dark days of the organization and
that this new direction becomes palpable." Cuba, referring to
the U.S., noted that although "it benefits the most from the
distortion in the calculation of the scale of assessments, it
is responsible for 93% of the unpaid contributions." Turning
to the embargo, Cuba provided examples of how the
"extra-territorial implementation of the provisions of the
blockade" prevents it from carrying out certain necessary
international transactions and implicated several Swiss banks
for their complicity in enforcing embargo. Cuba claimed that
there is an attempt to "silence the Cuban voice in the
multilateral institutions. It seems that after 50 years of
Revolution, some still do not get used to the idea of an
independent and sovereign Island of Cuba."


4. (U) BANGLADESH AND OTHERS DESCRIBE CONSEQUENCES OF
LATE/NON PAYMENTS: Several countries provided more nuanced
comments as to how delayed payments harm the United Nations,
Bangladesh expressing "unpaid assessed contributions of a few
members are weakening the entire organization's financial
health, and making it debtor to a number of poor and
developing countries." Uruguay explained that arrears "due to
delay in payments by major contributors" lead the United



Nations to engage in cross-borrowing schemes within the
accounts of closed peacekeeping missions to keep active
missions afloat. They added that they are "really disturbed
over this situation." Argentina said that many problems
ensue when payments are delayed to Troop Contributing
Countries (TCC).


5. (U) E.U. AND JAPAN REFRAIN FROM ATTACKS, BUT CALL FOR
ON-TIME PAYMENTS: The European Union commented that it is
the "responsibility of each Member State to pay its' assessed
contributions in full, on time and without conditions." The
E.U. stopped short of implicating any specific country, but
emphasized that payment by all is especially important in the
wake of the financial crisis. Japan simply declared that
"the situation is far from favorable". They also noted that
the peacekeeping budget has "reached an unsustainable level."
While not responding to any specific statement by any Member
States, the U.S. made an informal statement noting its recent
payments to address past arrears as well as current
peacekeeping assessments. The U.S. also noted the
Administration's renewed commitment of honoring its financial
obligations to the United Nations.


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SOME COUNTRIES SENSE CHANGE IS IN THE AIR
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6. (U) AUSTRALIA AND SINGAPORE RECOGNIZE U.S. EFFORTS:
Australia commended the recent payments by the United States,
commenting "we see an improvement in the liquidity of the
Organization, stemming in part from the reduction in arrears
by the United States - a positive development, which we
welcome." Singapore chimed in noting that "my delegation
recalls the recent commitments by one of the major
contributors to settle its outstanding bills" but encouraged
more payments, noting that "we look forward to concrete
action to fully honor those commitments."


7. (U) SINGAPORE, JAPAN AND OTHERS RECOGNIZE IMPROVED UN
FINANCIAL SITUATION: Several countries offered limited praise
for improvements in the balance sheets at the U.N., but did
not specifically relate the change to the actions of any one
country. Singapore claimed that "there has been an
improvement in the peacekeeping budgets" and Japan added "we
are pleased to note the anticipated cash balance at the end
of this year." Argentina and Turkey both recognized a
positive trend for the financial situation in 2009. Russia
was more hesitant, calling the situation "still mixed," but
implying that there may have been some improvement. Uruguay
noted that its "delegation is pleased at the slight
improvement this year."
Rice