US embassy cable - 03ROME3111

UNCLAS  ROME 003111 
 
SIPDIS 
 
 
USDA FOR FAS/LYNN REICH AND DICK HUGHES 
USDA/APHIS FOR JOHN GREIFER 
USDA/FSIS FOR ED SCARBROUGH 
STATE FOR IO/EDA SETH WINNICK AND IO/S GEORGE ABRAHAMS 
USAID FOR RALPH CUMMINGS 
PARIS FOR UNESCO 
MONTREAL FOR ICAO 
 
FROM FODAG 
 
E.O. 12958:  N/A 
TAGS: AORC, EAGR, KUNR, FAO 
SUBJECT:  REPORT OF 124TH FAO COUNCIL 
 
Ref:  a) Rome 02589, b) Rome 01658, c) Rome 02546 
 
1. Summary:  The 124th Session of the UN Food and 
Agriculture Organization (FAO) Council met June 23-28 in 
Rome.  In a successful outcome to a four-year campaign by 
assorted OECD members, the Council agreed to transmit to 
the 32nd FAO Conference an amendment to the FAO Basic 
Texts to introduce a two-term, 10-year limit for the FAO 
Director General (DG) position.  The G-77 (particularly 
African members) pushed hard to have  Council explicitly 
acknowledge the DG's eligibility to run again at the next 
elections; after prolonged negotiations, USDel succeeded 
in ensuring that the Council decision is silent 
concerning the incumbent.  The Council also endorsed a 
U.S. agenda item and proposal on improving reporting on 
World Food Summit follow-up.  As expected, the Council 
did not take a final position on the 2004-2005 budget 
level, but did acknowledge the need for the Secretariat 
to prepare a zero nominal growth (ZNG) budget scenario. 
Although the DG may still choose not to prepare such a 
scenario, this is an important step for the U.S. and 
other ZNG supporters.  Citing budget woes at home, the 
Japanese delegation requested a "less than ZNG scenario" 
and argued (unsuccessfully) for the Council to consider 
its proposal to increase Asian participation in the FAO 
Finance and Program Committees.  The Japanese delegation 
told USDel that their government was re-examining Japan's 
continued participation in FAO.  End summary. 
 
2.  The 124th session of the FAO Council met June 23-28, 
2003 in Rome.  USDA Deputy Undersecretary Jim Butler 
headed the U.S. delegation, with Ambassador Tony P. Hall 
serving as Alternate.  The Independent Chair of Council, 
Ambassador Aziz Mekouar (Morocco) chaired the session. 
The United States represented North America in the 
drafting committee. 
 
3.  Agenda item 1, Adoption of the Agenda. 
------------------------------------------ 
The Council agreed to add new agenda items on "Reporting 
on World Food Summit Follow-up" (U.S. proposal) and 
"Composition of the Program and Finance Committees" 
(Japanese proposal). 
 
4.  Agenda Item 3, Summary Program of Work and Budget 
--------------------------------------------- ------- 
As expected, the Council did not take a final position on 
the budget level for the Summary Program of Work and 
Budget (SPWB) 2004-2005.  The United States, Australia 
and Canada requested a ZNG scenario; the G-77 (with some 
exceptions, notably Malaysia, which joined in requesting 
a ZNG scenario) for the most part spoke in support of the 
DG's real growth (RG) proposal. The EU requested the 
Secretariat to consider a scenario somewhere between ZNG 
 
SIPDIS 
and ZRG which covered exchange rate losses, but which 
absorbed cost increases and a first tranche of funding 
for after-service medical liabilities.  Other OECD 
members also stressed the importance of addressing 
unfunded after-service medical liabilities, albeit 
without offering specific solutions.  Japan stated that 
it would only be able to support a budget which saw a 
"decline in Japan's assessment" and requested that a 
"less-than-ZNG scenario" be prepared. 
 
5.  During Drafting Committee discussion of the SPWB, RG 
supporters strongly objected to including a request for a 
ZNG scenario.  After extensive negotiations between 
supporters of ZNG, ZRG and RG, members finally agreed 
that the Council would "acknowledged the need for the 
Secretariat to prepare a ZNG scenario in order for 
 
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members to fully understand the implications of a 
possible budget decisions."  Comment:  Budget Director 
Tony Wade refused to comment on whether the Secretariat 
would indeed prepare a ZNG budget based on the Report 
language, indicating that the decision would be taken by 
the DG.  Nonetheless, ZNG supporters considered the 
language an important first step towards that end. End 
 
Comment. 
 
6.  Concerning priorities for the 2004-2005 budget, the 
Council agreed that the International Plant Protection 
Convention (IPPC) "should be funded to the level of the 
biennial business plan, and that FAO should provide its 
share of the additional resources required for the 
accepted recommendations of the Joint FAO/WHO evaluation 
of the Codex Alimentarius Commission to be implemented in 
the full."  The report also notes that, as agreed at the 
FAO Program Committee (reftel A), the proposed funding 
for a "Food Chain Approach" which actually related to the 
failed FAO proposal of the same name (reftel B) would be 
reallocated to Codex activities. 
 
7.  Agenda Item 4, Report of the Committee on Commodity 
Problems 
--------------------------------------------- -------- 
Reflecting the U.S. position taken during the Committee 
on Commodity Problems (CCP), the Council endorsed the 
report of the 64th Session of the CCP "recalling that one 
member had disassociated from the consensus adoption of 
the Report and had maintained that position." 
 
8.  Agenda Items 5 and 3, Committees on Forestry and 
Fisheries 
--------------------------------------------- --------- 
The Council endorsed the reports of the Committees on 
Forestry and Fisheries. 
 
9.  Agenda Item 6, Report of the Committee on Agriculture 
--------------------------------------------- ----------- 
The Council endorsed the Report of the Committee on 
Agriculture (COAG) and welcomed the announcement that the 
DG would convene a special session of COAG in early 2004 
to review the Report of the Joint WHO/FAO Expert 
Consultation on Diet, Nutrition and the Prevention of 
Chronic Disease.  The Council noted the concerns of some 
members that the recommendations could result in changes 
in demand with adverse impacts on small producers and the 
agricultural economies of developing countries.  Under 
the Report of COAG and the Report of the Committee on 
Commodity Problems, members also supported having the 
Secretariat propose ways to reduce the total number of 
 
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days allotted to the two meetings, possibly by holding 
them jointly or back to back.  A proposal along these 
lines will be sent to the next Council session. 
 
10.  Agenda Item 7, Report of the Committee on World Food 
Security 
--------------------------------------------- -------- 
Ambassador Tony P. Hall delivered the U.S. intervention 
on the Report of the Committee on World Food Security 
(CFS). The Council considered the proposal to improve the 
reporting format for the World Food Summit (WFS) follow- 
up on the basis of the request put forward by the United 
States and supported by the EU. The Council endorsed the 
proposal that the CFS Secretariat, in close collaboration 
with the Bureau, should: 
 
--analyze the difficulties and the underlying reasons in 
the current reporting process; 
-- examine ways of improving the existing reporting 
system; 
--identify a set of appropriate qualitative and 
quantitative indicators based on experience with FIVIMS 
and previous reporting mechanisms, including the impact 
of HIV/AIDS on food security; 
--supplement the report with case studies of successfully 
country experiences from which lessons learned could be 
extracted.  The reporting should be based on simplified 
and improved methodology. 
 
11.  The Council recommended that the draft revised 
format be developed in consultation with the CFS bureau 
and submitted to the forthcoming session of the FAO 
Council. 
 
12.  Agenda Item 8, Convening of the Second Global Forum 
of Food Safety Regulators 
--------------------------------------------- ------ 
The Council endorsed the proposal to hold a Second Global 
Forum of Food Safety Regulators during the second half of 
2004 on the main theme of "Building Effective Food Safety 
Systems." The Government of Thailand offered to host the 
Forum. 
 
13.  Agenda Item 9, Report of the World Food Program 
--------------------------------------------- ------- 
Ambassador Tony P. Hall delivered the U.S. intervention 
on the Report of the World Food Program.  The Council 
"reaffirmed its support for WFP's dual mandate to assist 
the hungry poor in both emergency situations and in the 
field of development and expressed its support for WFP's 
innovative efforts to increase the level of resources 
provided by non-traditional donors, particularly the 
private sector." 
 
14.  Agenda Item 10, Preparations for the 32nd Session of 
the FAO General Conference 
--------------------------------------------- -------- 
The Minister of Agriculture and Trade of New Zealand will 
chair the Conference.  The Vice-Chairs are: Austria (name 
not yet known) and Iran (FAO Ambassador Nouri-Naeeni). 
Canada will represent North America on the Credentials 
Committee.  There will be three ministerial-level round 
tables.  The Secretariat will contact regional groups 
concerning proposed themes and logistics.  The deadline 
for nominations for the Independent Chair of Council is 
September 5; for election to Council, November 29 at 
12:00. 
 
15.  Agenda Item 15, Report of the Finance Committee 
--------------------------------------------- ------ 
The Council approved the proposed scale of assessments. 
The Council took note of Argentina's request to have its 
assessment be reduced along the lines of the reduction at 
the UN, but took no action on the request.   Concerning 
the Split Currency Assessment Proposal, the Council took 
note of the differing views presented (including U.S. 
objections) and agreed that the matter would need to be 
considered in greater depth at the upcoming Finance 
Committee session. 
 
16.  Under the Finance Committee Sub-Item on "Methodology 
for Determination of Equitable Geographic Distribution," 
the Council noted that the September 2003 Finance 
Committee session would conduct a further analysis of the 
options for the methodology prior to submitting a 
recommendation to the Council at its next session. The 
Report states the U.S. position as follows:  "Another 
member stated that practices to promote adequate 
representation of under-represented countries would need 
to be implemented before looking at any proposal to 
change the system of equitable geographic distribution." 
 
17.  Agenda Item 16, the Number and Length of Term of the 
Office of the Director General 
--------------------------------------------- ---------- 
As reported in Reftel C, documentation for this agenda 
was still not available at the opening of Council.  USDel 
met numerous times during the week with the Friends of 
the Chair, seeking to resolve the question of what would 
be put before the Council for decision.  At the outset, 
the G-77 and the EU supported having the Council 
"approve" a report of the Friends of the Chair (provided 
by the Chair on June 20). The Chair's June 20 report 
contained language concerning the incumbent's eligibility 
to run again which was inconsistent with the Group's 
decision to be "silent" on the question of transition 
measures.  (Comment: Other OECD members of the Friends 
group -- Australia, New Zealand and Canada -- told USDel 
privately that they could accept the language of the 
report as a Council decision but were supportive duringTION 04 OF 05 ROME 
003111 
 
USDA FOR FAS/LYNN REICH AND DICK HUGHES 
USDA/APHIS FOR JOHN GREIFER 
USDA/FSIS FOR ED SCARBROUGH 
STATE FOR IO/EDA SETH WINNICK AND IO/S GEORGE ABRAHAMS 
USAID FOR RALPH CUMMINGS 
PARIS FOR UNESCO 
MONTREAL F 
negotiations. End comment). 
 
18.  The Group finally agreed to put before Council: 
 
-- A Council decision (CL/124/13) which "agreed to 
transmit the proposed amendment to Article VII.1 of the 
Constitution that "the DG should be appointed for a term 
of six years, renewable only once for a further term of 
four years," to the FAO Committee on Constitutional and 
Legal Matters, at its 75th Session, in October 2003, 
along with document CL/123/INF/22 before being submitted 
to the 32nd Session of the Conference for adoption." 
 
-- A Council information document (CL 124/INF/22) 
containing the Report of the Friends of the Chair (with 
improved language negotiated by USDel) 
 
19.  The Chair put the decision before the Council on 
Thursday, June 27 after a brief introduction.  In his 
introductory reports, the Chair did not mention the 
content of the Report of the Friends of the Chair, and 
made no reference to the incumbent. Te decision was 
adopted by acclamation with no coments from the floor. 
 
20.  The Report of the Frinds of the Chair, in its final 
form, provided th view of the Legal Counsel that, in the 
absence f transitional measures, the Conference "would 
hve the authority to elect under the new system anyof 
the nominated candidates."  The rights of the ncumbent 
are not specifically mentioned.  The Reort also states 
that the revision of Article VII1 would apply to the 
election at the 33rd Sessio of Conference in 2005 and 
govern the mandates o the Directors-General from 1 
January 2006. (Commnt: the entry into force was already 
agreed at te 123rd Council session which established the 
madate of the Friends of the Chair Group.  End commet). 
 
21.  Agenda Item 16.5, Japanese request on omposition of 
Finance and Program Committees 
--------------------------------------------- ----- 
Japan, supported by the Republic of Korea, circulaed two 
proposals to amend FAO's Basic Texts concrning 
membership of the Program and Finance Commttees in order 
to increase Asian representation o the Committees.  As 
expected, the proposals wer strongly objected to by 
other regions that saw  threat to their presence on 
these Committees.  he Council agreed that the Asia 
Regional Group culd continue to hold further 
consultations with other regional groups to further 
advance the issue  The Council did not agree to place 
the item onthe agenda for the next session (as the 
Japaneserequested). 
 
22.  Agenda Item 18 - Appointment t the UN Joint Staff 
Pension Committee 
--------------------------------------------- ------ 
The Concil confirmed the appointment of Mr. Bruce 
Bertn, Alternate Permanent Representative of the Unite 
States as a member to the Staff Pension Committe for the 
period ending 31 December 2004 to replace and complete 
the term of office of Mr. Chris Rchard. 
23.  Comment: on Term Limits and Japanes participation 
in FAO 
--------------------------------------------- --------- 
Council endorsemet of Term Limits represents a 
successful outcome to a four-year campaign by assorted 
OECD members,albeit, with one more hurdle to pass (the 
32nd FAO Conference) and without a prohibition on the 
incumbent running again (as U.S. had originally sought). 
However, in its final form, the Report of the Chair is 
neutral on the question of the incumbent and the Council 
Decision itself makes no mention of transitional 
measures. 
 
24.  The Japanese delegation expressed disappointed to 
USDel at the outcome of Council and commented that 
 
Japan's continued participation in the FAO was being re- 
examined in Tokyo.  The Japanese Perm Rep noted in this 
context that Japan had not yet paid its 2003 assessment. 
We understand that the FAO Director General appears to be 
seriously seeking to increase Japanese staffing at the 
FAO (another perennial source of unhappiness for the 
Japanese).  Hall 
NNNN 
 2003ROME03111 - Classification: UNCLASSIFIED