PGA,S OFFICE REACHES OUT TO MISSION ON FINANCIAL

UNCLAS USUN NEW YORK 000509 SENSITIVE SIPDIS DEPT FOR IO/EDA AND EEB/ODF/OMA GENEVA FOR CHARGE STORELLA TREASURY FOR OASIA E.O. 12958: N/A TAGS: EFIN ECON EAID UN SUBJECT: PGA,S OFFICE REACHES OUT TO MISSION ON FINANCIAL CRISIS CONFERENCE ¶1. (SBU) Paul Oquist Kelley, Senior Advisor to President of the General Assembly (PGA) Miguel d'Escoto Brockmann, phoned Ambassador Wolff twice from Tripoli on May 13 to discuss the foundering preparation process for the June 1-3 UN Conference on the World Financial and Economic Crisis and its Impact on Development. In the first call, Oquist noted Geneva Charge Storella had told him on May 12 that the U.S. wants the document to be concise and action oriented. Oquist said he agreed with this sentiment, and it would be possible to take out the 16-paragraph preambular section, which has generated controversy, and focus on achievables. The document should be short and clear, and would require follow up after the conference, Oquist said. ¶2. (SBU) Ambassador Wolff responded by asking Oquist directly why he was not in New York to help put the conference preparation process back on track? The current stalemate in conference preparations is the number one topic of conversation at the UN, Ambassador Wolff noted, and there is an urgent need to restore confidence and predictability to the process. The PGA's May 8 release of his own draft outcome document was a clear breach of procedure, and nobody knows what the next steps in the process are. This lack of clarity has led to confusion about what will happen at the conference itself, which is hurting the level of participation. ¶3. (SBU) There is likewise a fundamental disconnect between the PGA and member states on the content of the outcome document, Ambassador Wolff noted. The PGA's submission was way off base with the general views of the members and could not be a basis for negotiating. While negotiations on substance will continue, the negotiating process cannot even get started in the current situation. He reiterated there is an urgent need to restore confidence to avoid a disaster at the conference. ¶4. (SBU) Oquist phoned a second time in the late afternoon to report that he and the PGA would be returning to New York on May 14. He said Libyan leader Gaddafi had agreed to carry on the "reform process" during Libya's upcoming General Assembly Presidency. With follow up now assured, Oquist opined, the declaration from the June 1-3 conference should be a "short, operational document on how to proceed consensually." Oquist added that St. Vincent and the Grenadines Permanent Representative Gonsalves agrees completely with this approach, but that Netherlands PR Majoor is "being difficult". Majoor is refusing to buy into any process or document until he sees a text. ¶5. (SBU) Ambassador Wolff shared Majoor's caution and repeated his strong recommendation that the key to a successful process is returning to a member state led process that works toward consensus through facilitation. Oquist agreed. ¶6. (SBU) Comment. Facing a revolt among a large number of G77 countries, and a complete stalemate in the conference preparation process, the PGA and Oquist had little choice but to return to New York early. They clearly perceive the U.S. as a major player on whom a successful conference depends. The challenge now will be rebuilding enough trust to move forward on what will surely be a difficult text, even if it is shorter. Rice