UN CHILDREN'S FUND (UNICEF) EXECUTIVE BOARD --

UNCLAS USUN NEW YORK 000205

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: UNICEF EAID ECON CH UNDP
SUBJECT: UN CHILDREN'S FUND (UNICEF) EXECUTIVE BOARD --
FEBRUARY 4 TO 6, 2009

REF: A. STATE 1500

B. STATE 2047

C. USUN 20


1. (U) SUMMARY: The February 4-6, 2009 session of the UN
Children's Fund (UNICEF) Executive Board featured frank
discussions on the humanitarian situation in Gaza and on
proposals to reform UNICEF's accountability framework.
UNICEF's very factual oral report on Gaza and its efforts
there likely helped diffuse any possible efforts to use the
Board meeting as a forum to condemn Israel, and the
Palestinian and the handful of other interventions were
relatively mild, including Iran's. The Sudanese
representative made the most inflammatory statement. There
was insufficient support at the Board session to secure
approval to modify UNICEF's accountability framework into one
similar to UNDP's new rules, largely due to the issue of
access to internal audits. Chinese representatives, while
expressing general support for reform, continued to pursue
elements that would make the accountability framework
unworkable. Nonetheless, bilateral discussions with China
and other delegations moved the issue forward, likely cueing
up a decision at the June 2009 Board. The WEOG group
presented a unified position for adoption in June 2009 of a
framework similar to that at UNDP, and the Malian President
of the Executive Board supported publicly our aim of
concluding this issue at the next board meeting. In the
upcoming months the U.S. should work to build confidence,
further demarche China and finalize negotiations on a
declaration. All other agenda items were adopted by
consensus with little additional discussion. END SUMMARY.


GAZA



2. (SBU) The outgoing Swedish President of the Executive
Board as well as the new President from Mali made it known to
Board members in advance of the Gaza discussion that they
would not support proposals that might politicize the
Executive Board meeting or allow it to be used to condemn a
member state. They and others objected to any action beyond
a discussion on the report of UNICEF about the humanitarian
situation of children in Gaza.


3. (U) UNICEF Regional Director Sigrid Kaag gave a factual
and balanced oral report of the humanitarian situation in
Gaza. In contrast, the Palestinian representative spoke of
the tragedy of 3150 dead civilians and focused on the
humanitarian situation. While demanding that the "responsible
criminals" be brought to justice, he refrained from directly
naming Israel or the U.S. The representative also said that
all Palestinians should not suffer for the actions of a few.
He offered to e-mail participants graphic photographs from
Gaza, but did not show them during his statement. The
Palestinian representative underlined with appreciation
Egyptian efforts towards a long-lasting cease-fire and
expressed hope for increased support from the new U.S.
Administration in this regard. (He later approached U.S.
delegation privately and made the same point.) Lastly, he
also asked for increased pledges to UNICEF's flash appeal for
Gaza.


4. (U) Iran, Syria, Bangladesh, Mali and Malaysia were also
measured in their statements. Only Sudan gave an
inflammatory speech directly accusing Israel of a "brutal
aggression" and implicitly accusing the U.S. for providing
protection to Israel. (Comment: while Sudan is the leader of
the G-77, the representative appeared to be speaking only on
behalf of his government. End Comment.) There were no



proposals for a decision or a declaration. (Comment: We had
informally signaled, as had many other delegations, that we
would not take the floor unless a proposal for a decision or
any other action was tabled. This may have contributed to
the measured statements by Palestine and others. Iran's
measured statement suggests that it may be trying to present
a more statesmanlike appearance in UNICEF discussions and may
be related to its recent assumption of the Presidency of the
UNDP Executive Board. End Comment.)

UNICEF ACCOUNTABILITY FRAMEWORK - ACCESS TO INTERNAL AUDIT
REPORTS



5. (U) While originally placed as a separate main agenda
item, a discussion on a proposed new UNICEF accountability
framework took place on the last morning of the meetings as
an "other matters" agenda item, due to a concern that a
public discussion of this issue would be too contentious.
The U.S. and other delegations protested its removal from the
original agenda. (Note: A statement by Sudan on behalf of
the G-77 and China at a late January UNDP meeting appeared to
indicate the G-77 and China were backing away from the
compromise agreed to at the September 2008 UNDP Board.)


6. (U) In a very open and constructive discussion within
WEOG Group during the UNICEF Board meetings, the UK, Sweden,
Germany and others expressed support for our position. We
indicated our willingness to modify our future audit request
letters to more explicitly declare conformity with all the
regulations of the accountability system, including
confidentiality, in order to unblock the situation. The
Chinese delegation, which was the final holdout in the UNDP
compromise, had objected strongly to the form of a December
U.S. audit request letter to UNDP.


7. (U) WEOG group members agreed to a unified position for
adoption of a UNDP-like framework at the June 2009 Board,
which the Japanese delegate as WEOG representative presented
to the Bureau of the Board. Switzerland was particularly
supportive of our position in plenary and its representative
formally requested that the UNICEF Board take action on the
accountability framework in June 2009, following the model of
the UNDP accountability system. China responded that it had
no interest in prolonging the debate and particularly
stressed the point that all parties should respect all rules
of the accountability framework, implicitly referring to its
confidentiality provisions.


8. (U) In bilateral discussions, Chinese representatives
indicated they supported accountability and transparency and
were unhappy that this was being portrayed by many as a U.S.-
China dispute. China, however, did not propose a
constructive way forward, other than suggesting the U.S. take
steps to build good will, which the U.S. delegation attempted
to address in its plenary statement. Moreover, China said
that the outcome would depend on the upcoming negotiations
and should not be tied to a specific timetable (such as the
June meeting). China also professed a desire to negotiate a
draft UNICEF document that would potentially raise new
barriers, such as additional Executive Board action, to
access to audits. The President of the Executive Board from
Mali in his concluding remarks made the helpful proposal of
working together to resolve this issue at the June board.


9. (U) Comment: The U.S. delegation's flexibility and
openness to take into account the views of other members
helped cement a unified WEOG position on accountability.
Most WEOG members support improved transparency and
accountability, including access to audits, but are not often


forceful proponents. By publicly addressing concerns raised
by China and others, and by implementing those changes in our
use of the UNDP framework, we have raised confidence and
trust among other members on this issue. Our strengthened
support should put pressure on China to adopt a more measured
approach. Cuba, which had supported the Chinese position
aggressively, and worked to derail using the UNDP compromise
for UNICEF, scaled back its rhetoric at the plenary. End
Comment.

UNICEF REPORT TO ECOSOC


10. (U) Many delegations used this early agenda item to air
their general views about UNICEF's work and their support for
the Organization. The U.S. statement focused on our support
for UNICEF and praised its work in several areas, including
child protection. It also expressed our interest in avoiding
efforts to increase operational control by the General
Assembly and ECOSOC over UNICEF.


11. (U) The President of the Board welcomed explicitly that
our delegation had not announced any reductions in future
contributions. Cuts in contributions from donor countries as
a consequence from the financial crises were a major concern
of all developing countries that reverberated through many of
their statements.

UNICEF FINANCIAL REPORT AND AUDITED STATEMENT



12. (U) A number of Board members, particularly the UK, the
Netherlands and Sweden expressed concern about the high
amount of unexpended funds; this was also reflected in the
respective Board decision. UNICEF's Board Secretariat, as
well as its auditor, pointed out that the $643 million figure
was misleading, as it was only momentarily significantly
higher than the USD 300 million of reserves that the
organization felt prudent to retain. At the request of
several members, UNICEF will provide an update on this
subject at the next Board.

APPROVED COUNTRY PROGRAM DOCUMENTS



13. (U) The Executive Board approved the proposed country
programs on the agenda without further review or comment.
Prior U.S. comments on the drafts had been taken into account
and were reflected in the respective documents.

GENDER POLICY IMPLEMENTATION



14. (U) The statement of UNICEF Executive Director Veneman,
as well as the statements of many delegations, underlined the
special importance UNICEF attaches to gender policy
implementation. The decision on this agenda item urges
continued effort by the leadership of UNICEF to improve the
integration of gender equality in programming including in
institutional and individual accountability mechanisms in
programs, management and human resource systems. UNICEF was
also asked to consult the Executive Board when updating its
gender equality policy and to clarify expected results for
effectiveness and impact.

BILATS WITH VENEMAN AND DEPUTY HILDE JOHNSON


15. (U) In separate bilateral meetings with Veneman and
Deputy Executive Director Johnson, the U.S. delegation
discussed key issues for the future of the organization and
asked for Board support for the WEOG group position on the


proposed UNICEF accountability framework. Veneman noted that
she had created separate auditing, evaluation and
investigation departments at UNICEF A separate office for
investigation ensures that auditors keep personal names out
of audit reports, that a separate process exists to address
suspected fraud and other problematic issues, and that
regular audits proceed quickly. Johnson said that UNICEF was
working on stricter rules on the retention of funds by UNICEF
national committees/funds. Following the crises at the
German National Committee, UNICEF is working to increase
transparency and accountability of the national committees
and modifications of UNICEF headquarters' interaction with
them. Johnson views the U.S. National Fund as the most
professionally run and doing well. The National Fund in
Germany has recovered from its recent crises, but the events
have cost UNICEF a 30% decline in donations from Germany, and
corporate donations have particularly suffered. According to
Johnson, the problems in Germany have been a painful learning
experience for UNICEF on the importance of accountability and
transparency.


16. (U) (SBU) On child protection, the U.S. delegation
voiced its special interest in the Child Protection Unit, and
concern that the Unit is not sufficiently funded and staffed.
Johnson admitted that the Unit had gone through a difficult
period and is not appropriately staffed. She added, though,
that it was UNICEF's intention to strengthen child protection
as a whole. She specifically mentioned that UNICEF would
name a new Director for the Child Protection Unit and
undertake other measures. Johnson added that donors
traditionally do not tend to give earmarked funds to child
protection, unfortunately making the unit somewhat of an
"orphan" among donors.


17. (U) The texts of USDEL statements at the February 4-6
UNICEF Executive Board meetings can be found at:
http:www.usunnewyork.usmission.gov/press_rele ase.pho?i-O
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