US embassy cable - 02ROME6012

UNCLAS ROME 006012 
 
SIPDIS 
 
L/PIL FOR HAL BURMAN AND JEFF KOVARS; IO/EDA 
IO/S FOR LISA JACOBSON 
 
FROM FODAG 
 
E.O. 12958:  N/A 
TAGS: AORC, ABUD, IT, UNIDROIT 
SUBJECT:  REPORT OF UNIDROIT 56TH GENERAL ASSEMBLY 
 
REFTEL:  ROME 5491 
 
1. SUMMARY.  THE INTERNATIONAL INSTITUTE FOR THE 
UNIFICATION OF INTERNATIONAL PRIVATE LAW (UNIDROIT) 56TH 
GENERAL ASSEMBLY MEETING DECEMBER 6, 2002 AND APPROVED A 
                       UNCLASSIFIED 
 
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BUDGET FOR ORDINARY EXPENDITURE OF EURO 1,802,550.00 FOR 
2003.  THE U.S. SHARE IS EURO 110,000.00.  THE ASSEMBLY 
ALSO HEARD AN UPDATE ON EC MEMBERSHIP IN UNIDROIT AND A 
REPORT FROM THE REPRESENTATIVE OF ITALY CONCERNING 
ITALY'S REDUCTION IN FUNDING FOR UNIDROIT.  END SUMMARY. 
 
2.  THE 56TH SESSION OF THE UNIDROIT GENERAL ASSEMBLY MET 
DECEMBER 6, 2002 IN ROME.  AUSTRALIAN AMBASSADOR MURRAY 
COBAIN WAS ELECTED CHAIRMAN OF THE ASSEMBLY.  UNIDROIT 
SECRETARY GENERAL HERBERT KRONKE PROVIDED UPDATES ON 
 
SIPDIS 
UNIDROIT PROJECTS IN THE AREAS OF PRINCIPLES OF 
INTERNATIONAL COMMERCIAL CONTRACTS, TRANSNATIONAL CIVIL 
PROCEDURES, MODEL LAW ON DISCLOSURE AND FRANCHISING AND 
TAKING OF SECURITIES AND SECURITIZATION. HE WELCOMED THE 
RECENT SECONDMENT OF A NEW STAFF MEMBER (FUNDED BY THE 
GERMAN BANKING FEDERATION) TO WORK ON THE CAPITAL MARKETS 
PROJECT.  KRONKE NOTED THAT WORK ON THE SECOND AND THIRD 
PROTOCOL TO THE RECENTLY AGREED CONVENTION ON MOBILE 
ASSETS WAS ADVANCING.  HE ALSO EXPLAINED THE (HERETO 
UNMET) STAFFING AND RESOURCE IMPLICATIONS OF UNIDROIT'S 
NEW OBLIGATIONS AS THE DEPOSITARY TO THE RECENTLY 
APPROVED CAPETOWN CONVENTION AND AIRCRAFT PROTOCOL. 
 
3.  AT THE REQUEST OF THE U.S. DELEGATE, KRONKE UPDATED 
MEMBERS ON THE QUESTION OF EC MEMBERSHIP IN THE 
COMMISSION.  HE NOTED THAT SINCE EC ACCESSION TO THE 
HAGUE CONFERENCES WAS "IN THE WORKS," HE EXPECTED EC 
ACCESSION TO UNIDROIT TO BE "CONCLUDED UNDER THE ITALIAN 
PRESIDENCY." 
 
4. THE ASSEMBLY APPROVED THE FINAL ADJUSTMENTS TO THE 
                       UNCLASSIFIED 
 
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BUDGET AND APPROVAL OF THE ACCOUNTS FOR THE 2001 FINANCE 
YEAR, AND ADJUSTMENTS TO THE BUDGET FOR THE 2002 
FINANCIAL YEAR.  THE ASSEMBLY TOOK NOTE OF THE ARREARS IN 
CONTRIBUTIONS OF MEMBER STATES, AND A PROGRESS REPORT ON 
THE PROPOSAL TO PROJECT THE INSTITUTE'S FINANCIAL NEEDS 
ON A THREE-YEAR BASIS AND PROPOSAL TO MODIFY THE SYSTEM 
OF DETERMINING THE CONTRIBUTION OF THE ITALIAN 
GOVERNMENT. 
 
5.  THE ITALIAN DELEGATE STATED THAT THE RECENT 
ANNOUNCEMENT THAT THE GOVERNMENT OF ITALY WOULD LOWER ITS 
PAYMENT TO UNIDROIT WAS A RESULT OF THE FACT THAT 
UNIDROIT HAD HISTORICALLY BEEN "INCORRECTLY CLASSIFIED" 
AS A NATIONAL INSTITUTE (RATHER THAN AN INTERNATIONAL 
ORGANIZATION). IN THE PAST THIS HAD BEEN EFFECTIVE IN 
FACILITATING PAYMENT; NOW IT WAS AN ALBATROSS, AS THE 
GOVERNMENT'S AUSTERITY PACKAGE COVERED ALL DOMESTIC 
ORGANIZATIONS.  THE DELEGATE SAID THAT EFFORTS WERE BEING 
MADE TO CORRECT THE CLASSIFICATION.  U.S.DEL EXPRESSED 
GRATITUDE FOR THE SUPPORT OF THE ITALIAN GOVERNMENT AND 
UNDERLINED THE IMPORTANCE OF ITALY MOVING TO A MORE 
PREDICTABLE SYSTEM OF CONTRIBUTIONS FOR UNIDROIT. 
 
6.  THE ASSEMBLY AGREED TO AN ORDINARY BUDGET OF EURO 
1,802,550.00 FOR 2003.  THE U.S. SHARE IS EURO 110,000.00 
IT WAS AGREED THAT EURO 10,500 WOULD BE ALLOCATED TO 
CHAPTER 11 (PROGRAM OF LEGAL ASSISTANCE TO DEVELOPING 
COUNTRIES) FROM SAVINGS FOUND ELSEWHERE IN THE BUDGET IN 
VIEW OF THE IMPORTANCE THAT MANY MEMBERS ATTACHED TO THE 
PROGRAM.  THE FINANCE COMMITTEE SUB-COMMITTEE (U.S. IS A 
MEMBER) WILL MET IN LATE FEBRUARY-EARLY MARCH 2003 TO 
                       UNCLASSIFIED 
 
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DISCUSS THE CURRENT IMPLICATIONS OF THE 42ND GENERAL 
ASSEMBLY'S DECISION (1989) THAT 1 PERCENT OF COUNTRY'S 
CONTRIBUTIONS (EXCEPT FOR ITALY) BE PROVIDED TO CHAPTER 
11.  HALL 
 
                       UNCLASSIFIED 
 
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 2002ROME06012 - Classification: UNCLASSIFIED