G-7 FOLLOW-UP MEETING ON UN PEACEKEEPING BUDGET

C O N F I D E N T I A L USUN NEW YORK 000663 SIPDIS E.O. 12958: DECL: 07/06/2019 TAGS: PREL AMGT AORC UN SUBJECT: G-7 FOLLOW-UP MEETING ON UN PEACEKEEPING BUDGET SCALE OF ASSESSMENT REF: A. USUN 518 ¶B. USUN 562 ¶C. USUN 655 ¶1. (C) ON 2 July 2009, the Japanese Mission hosted a meeting of the Fifth Committee delegates of the G-7 countries (Canada, France, Germany, Italy, Japan, the UK, and the U.S.) to exchange views regarding negotiation of the peacekeeping scale of assessment during the upcoming fall session of the GA. The attendees were: Chris Plunkett for Canada, Gregory Cazelet for France, Peter Silberberg and Ralf Hoernschemeyer for Germany, Stefania Rossini for Italy, Kenichiro Mukai and Masatoshi Sugiura for Japan, James Roscoe for the UK, and Bruce Rashkow and Eugene Chen for the U.S. This was the fourth meeting of the G-7 following up ON the G-7 initiative to forge a common position ON the scales of assessment that was launched ON the margins of the April Geneva Group meeting (reftels). Overview of the Peacekeeping Scale -------------- ¶2. (U) The scale of assessment for peacekeeping operations (PKO) is based ON the scale of assessment for the regular UN budget. Each country is placed into one of ten levels based on its share of world GNI. Each of the levels -- which are designated A through J -- is associated with a modifier. Countries in levels C through J get various discounts to their PKO assessment, countries in level B do not receive any discount, and countries in level A -- the permanent five members of the UN Security Council -- pay a premium that makes up for all of the discounts given to other countries. A Question of Methodology -------------- ¶3. (C) The French, UK, and Canadian participants all voiced preference for changing the methodology used to determine contributions to the peacekeeping operations (PKO) budget. In particular, they called for the dissolution of level C, which provides a small discount for five wealthy G-77 countries (Brunei, Kuwait, Qatar, Singapore, and the United Arab Emirates),and whose existence the UK participant termed "an injustice". At the same time, the Canadian delegate pointed out that none of the BRIC countries (Brazil, Russia, India, and China) fall into level C and that targeting the countries currently in level C could have the detrimental effect of rallying the entire G-77 group of developing countries against such a proposal. Rashkow pointed out statements made by the G-77 during the previous negotiations in 2006 insisting ON equal treatment for all G-77 members across the board, making the prospect of a coordinated G-77 response against any proposal targeting specific countries very likely. Linkages between Scales -------------- ¶4. (C) Other participants, including the Germans, Italians, and the U.S., indicated that their primary concern was the almost inevitable linkage of the regular budget and PKO scales during negotiations with the G-77. The Italian delegate in particular was concerned that negotiations ON the PKO scale could be used to "hold the regular budget negotiations hostage" Strategic Approach to Negotiations -------------- ¶5. (C) Noting the many hurdles that lie ahead in the PKO scale negotiations, the EU members pointed out that it would be essential for the G-7 to maintain a common approach, including (1) focusing ON low per-capita income adjustment (LPCIA) proposals in the regular budget, (2) respecting each country's red lines, and (3) gradually including players such as the Swedes, who now hold the EU presidency, as well as Mexico and the Republic of Korea. Although Rashkow was supportive of a proposal made by the Canadian delegate to start considering possible ways by which to influence key players and groups within the G-77, he warned that reaching out to individual G-77 members before agreement had been reached by the G-7 ON the specifics of a joint approach could backfire and make things more difficult for the G-7 in the fall. ¶6. (C) The participants agreed in principle to include the Swedes in the next round of discussions, to be held sometime in July, subject to further consultation. RICE