US embassy cable - 05ROME1722

UNCLAS ROME 001722 
 
SIPDIS 
 
 
FROM THE U.S. MISSION TO THE UN AGENCIES IN ROME 
 
L/PIL FOR HAL BURMAN AND JEFF KOVAR 
IO/S FOR LISA SPRATT 
 
E.O. 12958: N/A 
TAGS: AORC, ABUD, UNIDROIT 
SUBJECT: UK VOLUNTARY CONTRIBUTION TO UNIDROIT 
 
1. Mission received the following letter on May 17 from 
UNIDROIT Secretary General Herbert Kronke and Finance 
Committee Chairman Luis Cuesta (Spain).  The letter was 
addressed to all members of the UNIDROIT Finance Sub- 
Committee: 
 
Begin Text: We write to you with respect to an issue 
discussed at the meeting of the Sub-Committee on 11 April 
2005 to which a new facet has been added during the 84th 
session of the Governing Council. 
 
At that session, the Government of the United Kingdom 
advised that it was prepared to make an extra-budgetary 
contribution of 50,000 pounds for the financial year 2006 
to be earmarked for the hiring of a Deputy Secretary 
General.  The offer was made on condition that the 
procedure to identify the right person for the position 
was an open and fair international competition.  The 
Governing Council accepted the offer after a thorough 
discussion of all the implications. 
 
In our recollection we agreed that an appointment without 
any such competition was necessarily only a second-best 
solution and that new developments might enable us to 
revert to the original plan.  Moreover, on the basis of 
the figures identified as being capable of being agreed 
on eventually, the shortfall would be in an amount of 
roughly 70,000 euros.  This shortfall would be covered by 
the UK's donation. 
 
The Governing Council recognized that, firstly, the 
successful candidate could be offered a contract for 
initially not more than one year and that, secondly, the 
General Assembly's freedom to determine the budget for 
2006 could not in any way be curtailed. 
 
As you will appreciate, advertising a position to be 
filled on 1 January 2006 requires interviews possibly as 
early as July which in turn entails a deadline of 
applications around 15 June 2005.  We would be obliged, 
therefore, if we could interpret the absence of any 
objections on your part reaching the Secretariat (with 
copy to the Chairman) by 23 May 2005 as approval.  All 
comments, if any, should also be sent to the Secretariat 
(with copy to the Chairman).  End Text. 
 
2. Comment: the UK's offer came as a surprise during the 
recent Governing Council session.  While all in favor of 
finding the best person for the job, Mission is concerned 
that with this one-time contribution, no allowance has 
been made for the out years.  A possible result is that 
UNIDROIT hires a new Deputy SYG who then must leave the 
job after one year because the organization has no more 
money to pay him/her.  UNIDROIT has been able to 
temporarily allay this situation by moving the senior- 
most staff person into the Deputy SYG's position.  But 
without additional support from member states in the out 
years, Mission fears that accepting the UK's proposal 
could do as much harm as good.  In the end, we favor 
acceptance of the Governing Council's logic that it would 
be too difficult for an organization that complains of 
being chronically under funded to turn down what is 
essentially free money, and will work with like-minded 
member states to assure UNIDROIT's continued viability. 
 
3. We would appreciate any Department advice before the 
May 23 deadline. 
 
HALL 
 
 
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	2005ROME01722 - Classification: UNCLASSIFIED