US embassy cable - 03ROME4701

UNCLAS ROME 004701 
 
SIPDIS 
 
 
FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME 
 
L/PIL FOR HAL BURMAN AND JEFF KOVAR 
IO/S FOR LISA JACOBSON AND IO/EDA FOR SHARON KOTOK 
 
E.0. 12958: N/A 
TAGS: AORC, ABUD, UNIDROIT 
SUBJECT: MEETING OF UNIDROIT FINANCE COMMITTEE 
 
REF: A) STATE 287973   B) ROME 3361 
 
1. SUMMARY: THE FINANCE COMMITTEE OF THE INTERNATIONAL 
INSTITUTE FOR THE UNIFICATION OF PRIVATE LAW (UNIDROIT) 
MET ON OCTOBER 9 TO CONSIDER THE ORGANIZATION'S 2004 
BUDGET.  THE U.S. WAS ALONE IN DISASSOCIATING WITH 
CONSENSUS ON APPROVING THE BUDGET (AND ITS 3.61 PERCENT 
INCREASE), BUT ASSURED THE COMMITTEE, PER REF A GUIDANCE, 
    THAT WE VALUE THE ORGANIZATION'S WORK.  THE SECRETARIAT 
AS WELL AS SEVERAL COUNTRY REPS NOTED WITH APPROVAL THE 
RECENT U.S. VOLUNTARY CONTRIBUTION FOR THE CAPETOWN 
CONVENTION DEPOSITARY FUNCTION.  END SUMMARY. 
 
2. U.S. MISSION REP ATTENDED THE OCTOBER 9 FINANCE 
COMMITTEE MEETING.  PER REF A GUIDANCE, U.S. MADE THE 
FOLLOWING POINTS: WHILE WE VALUE THE ORGANIZATION'S WORK 
(AND CAN CITE THE RECENT VOLUNTARY CONTRIBUTION FOR THE 
DEPOSITARY FUNCTION AS AN EXAMPLE), OUR POLICY FOR 
INTERNATIONAL ORGANIZATIONS IN GENERAL IS ZERO NOMINAL 
GROWTH; THE BUDGET PRESENTED BY UNIDROIT, WITH ITS 3.61 
PERCENT INCREASE, IS A REAL GROWTH BUDGET (THIS POINT WAS 
ECHOED BY THE SPANISH REP); AND, WHILE WE CAN ABIDE A 
SMALL INCREASE AS A ONE-TIME EXCEPTION TO ZNG POLICY IN 
RECOGNITION OF THE ORGANIZATION'S HIGH PRIORITY WORK, WE 
CANNOT APPROVE PROGRAM FUNDING FOR THE LEGAL COOPERATION 
PROGRAM, WHICH WE BELIEVE SHOULD BE PAID WITH VOLUNTARY 
CONTRIBUTIONS.  IN THE END, THE U.S. WAS FORCED TO 
DISASSOCIATE WITH CONSENSUS, WHILE AT THE SAME TIME 
STATING THAT OUR BUDGET POSITION IN NO WAY CHANGES THE 
HIGH REGARD IN WHICH WE HOLD THE ORGANIZATION. 
 
3. COMMITTEE MEMBERS FROM AUSTRIA, FRANCE, GERMANY, 
ITALY, JAPAN, MEXICO, SPAIN AND THE UK VOICED SUPPORT FOR 
THE BUDGET AS STATED, WITH FEW RESERVATIONS AND 
QUESTIONS.  THE ITALIAN GOVERNMENT, THE LARGEST 
CONTRIBUTOR AT E220,000 PER YEAR (THE U.S. CONTRIBUTION 
IS HALF THAT AMOUNT) VOWED TO CLEAR THEIR ARREARS FROM 
2002 BUT SAID THEIR CONTRIBUTION WOULD REMAIN AT A LOWER 
LEVEL (E220,000 INSTEAD OF E258,000) FOR THE FORESEEABLE 
    FUTURE.  THE REPS FROM SWITZERLAND AND RUSSIA REMAINED 
SILENT THROUGHOUT. 
 
4. THE JAPANESE REP, SUPPORTED BY SEVERAL OTHER 
COUNTRIES, ARGUED THAT THE CAPETOWN CONVENTION DEPOSITARY 
FUNCTION SHOULD BE FUNDED BY THE REGULAR PROGRAM BUDGET 
IN FUTURE YEARS AND NOT FROM VOLUNTARY CONTRIBUTIONS.  HE 
REITERATED THE IMPORTANCE OF THE CONVENTION, ADDING THAT 
IF THE ORGANIZATION IS TASKED TO PERFORM A FUNCTION, IT 
MUST BE ABLE TO BUDGET FOR IT RATHER THAN RELY ON 
VOLUNTARY FUNDS.  THE RECENT U.S. VOLUNTARY CONTRIBUTION 
OF USD 110,000 FOR THE DEPOSITARY FUNCTION WAS 
HIGHLIGHTED BY THE SECRETARIAT AND NOTED WITH APPROVAL BY 
SEVERAL REPRESENTATIVES. 
 
5. A BRIEF DISCUSSION REGARDING THE LINK BETWEEN 
STRATEGIC PLANNING AND BUDGET FORMULATION WAS INITIATED 
BY THE SECRETARIAT AND GREETED WITH APPROVAL BY A 
MAJORITY OF MEMBER STATES.  THERE WAS GENERAL AGREEMENT, 
INCLUDING FROM THE CONCLUSIONS OF THE APRIL 2003 
BRAINSTORMING SESSION, THAT THE ORGANIZATION NEEDS TO DO 
MORE STRATEGIC PLANNING AND TO LINK THAT PLANNING WITH 
FUTURE BUDGET REQUESTS.  THE SECRETARIAT PROPOSED THE 
CREATION OF A SMALL WORKING GROUP TO EXAMINE THE ISSUE, 
AND THE ITALIAN REPRESENTATIVE VOLUNTEERED TO BE A PART 
OF THE WORKING GROUP.  QUESTIONS OF HOW THIS GROUP WOULD 
FUNCTION OR WHEN IT WOULD MEET REMAIN OPEN. 
 
HALL 
 
 

 
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 2003ROME04701 - Classification: UNCLASSIFIED