US embassy cable - 05ROME2162

UNCLAS ROME 002162 
 
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: UNIDROIT SUB-FINANCE COMMITTEE DISCUSSES DEPUTY 
 
SECRETARY GENERAL POSITION 
 
SIPDIS 
 
REF: A) 5/30 Berton/Burman e-mail  B) 5/9 Berton/Burman 
e-mail 
 
1. Summary: the sub-Finance Committee of the 
International Institute for the Unification of Private 
Law (UNIDROIT) met on June 9 to discuss the hiring of a 
Deputy Secretary General for the organization.  The 
meeting was a result of an April 2005 Governing Council 
recommendation to accept a UK-offer of 50,000 pounds to 
stage an open competition for the post.  Discussion 
centered on the budget consequences of this one-time 
offer, particularly in the years after 2006.  No clear 
consensus was reached and the sub-committee requested 
additional information from the Secretariat regarding 
where additional funds might be found for the out years. 
End Summary. 
 
2. The issue first surfaced at the April Governing 
Council session, when the UK offered a one-time 
contribution of 50,000 pounds (approximately 70,000 
euros), to be earmarked for the hiring of a Deputy 
Secretary General.  The offer made no allowances for the 
 
SIPDIS 
out years and was conditioned on the hiring procedure for 
the new Deputy SYG being an open competition (because of 
budget shortfalls, the organization had planned to 
temporarily appoint the senior Research Officer to the 
position).  In making its recommendation, the Governing 
Council acknowledged that the one-time nature of the 
contribution might force UNIDROIT to limit the contract 
term offered to any prospective candidate to one year. 
Committee members were invited to make comments (ref B) 
prior to the meeting.  Canada, France and Germany all 
offered comments, primarily related to the implication 
for budgets in the years 2007 and beyond, as well as 
stating a concern about the limited pool of applicants 
should only a one-year contract be offered. 
 
3. The subcommittee met at the request of Chairman Luis 
Cuesta (Spain) and UNIDROIT Secretary General Herbert 
Kronke.  Canada, France, Germany, Italy, Spain and the UK 
attended, in addition to the U.S.  The SYG laid out the 
2006 budget scenario first, indicating that the extra 
50,000 pounds would cover all previously budgeted 
expenses plus the cost of hiring a new Deputy SYG, so 
long as the new Deputy was single with no children (a 
lower compensation scale applies).  To maintain the 
Deputy post for 2007, however, assessed dues for all 
member states would have to be increased by an estimated 
4.2 percent, not even taking into account the inclusion 
in the regular program budget of the mandated depositary 
function of the Cape Town Convention.  The SYG added that 
the willingness of the previous Deputy SYG to work full- 
time for half-time pay (mentioned in prior reporting 
cables) probably saved the organization 350,000 euros 
over the past four years, and now the organization is 
finding it difficult to cover the actual cost of a full- 
time employee from a resource base that is lower than it 
otherwise should have been. 
 
4. While there was general support for the concept of an 
open competition, participants were unanimous in their 
concern for the out years and in their desire for all 
such recurring budgetary needs to be covered by the 
regular program budget.  While Italy, the largest donor, 
was somewhat flexible on the subject of budget increases, 
Germany stated that no new resources would be forthcoming 
and Canada joined the U.S. in reiterating its ZNG policy 
for international organizations.  USDEL, supported by 
Canada, stated that a budget increase of 4.2 percent 
would simply not fly.  USDEL acknowledged that it would 
be difficult to simply say 'no' to a gift of 50,000 
pounds, but noted that there was insufficient information 
regarding how further savings might be found, including 
the possibility of program cuts, to make an informed 
decision regarding the UK contribution.  .  The UK rep 
was quiet, other than to re-state that the contribution 
was a one-time, time-limited offer and that there would 
be no guarantee of any future contribution. 
 
5. While no clear consensus was reached, the committee 
agreed that it was difficult to refuse the 50,000 pounds, 
and the competition is proceeding.  Meanwhile, the SYG is 
preparing additional documentation related to the budget 
implications, including how the limited budget will 
affect the strategic plan of the organization. 
 
HALL 
 
 
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	2005ROME02162 - Classification: UNCLASSIFIED