A/46/PV.62 General Assembly

Wednesday, Dec. 4, 1991 — Session 46, Meeting 62 — New York — UN Document ↗

109.  Current Financial Crisis of the United Nations; Financial Emergency of the United Nations: Report of the Secretary-General (A/46/600 and Add. 1)

The President [Arabic] #9824
Members will recall that, at its 54th plenary meeting, the General Assembly decided that the report of the Secretary-General on the financial situation of the United Nations (A/46/600 and Add.1) would be introduced in the plenary Assembly under agenda item 109, Current financial crisis of the United Nations, and agenda item 110, Financial emergency of the United Nations, on the understanding that the substantive consideration of those items would remain in the Fifth Committee. Members were also informed that, in the light of that decision, the Secretary-General would address the General Assembly on the subject of the financial situation of the United Nations, Representatives wishing to make statements under agenda items 109 and 110 may do so during the consideration of those items by the Fifth Committee, scheduled to begin on Tuesday, 10 December 1991. Accordingly, I now call on the Secretary-General of the United Nations, His Excellency Mr. Javier Perez de Cuellar.
Yesterday when welcoming the new Secretary-General, I said that the renaissance of the Organization has not yet been reflected in its financial situation. The irony of the contrast between the high expectations rightly placed in the United Nations and the financial indigence to which it has been reduced carries a note of deep regret and perplexity. It saddens me that I should have to convey this sombre note to the Assembly in one of my last statements. The financial insolvency of the United Nations has confronted it with a crisis which, I must stress, is at once political and budgetary. The comprehensive account of the financial situation of the United Nations which I gave in the report before you presents a grim picture. As of 31 October 1991, Member States owed the Organization nearly $1 billion in unpaid assessments for both the regular budget and peace-keeping activities. The momentous events which have recently transformed the world scene have served to highlight the role of the United Nations as an effective instrument for realiaing the collective will of the international community in keeping the peace, suppressing aggression and strengthening the basis of stability in international relations. But the Organization's ability to follow up.on the demonstration of its capabilities has been severely hampered by want of the minimal financial resources needed to discharge its responsibilities. In the last year or so, the United Nations has been entrusted with a multitude of tasks. It has launched no less than seven new operations: along ! ., the Iraq-Kuwait border, the United Nations Iraq-Kuwait Observer Mission ,,.;. ,,, (UNIKOM), in El Salvador, the United Nations Observer Mission in El Salvador (ONUSAL), in Angola, the Second United Nations Angola Verification Mission (UNAVEM II), in Central America, the United Nations Observer Group in Central America (ONUCA), in Western Sahara, the United Nations Mission for the Referendum in Western Sahara (MINURSO) and in Cambodia, the United Nations Advance Mission in Cambodia (UNAMIC). Additionally,, an election observation operation was carried out in Haiti, the United Nations Observer Group' for the Verification of the Election in Hait (ONUVEH). Incidentally, the political developments following that operation by no means detract from its success, To add to these, there are currently in place the United Nations Disengagement Observer Force (UNDOF), the United Nations Interim Force in Lebanon (UNIFIL), the United Nations Truce Supervision Organieation (UNTSO), the United Nations Military Observer Group in India and Pakistan (UNMOGIP) and the United Nations Peace-keeping Force in Cyprus (URFICYP). With the exception of UNDOF, all are inadequately funded, I have had, in the course of the year, to borrow from other accounts to cover the obligations of UNIKOM, MINURSO and ONUCA. Such measures could lead to a real financial disaster for several operations, should the domino effect be triggered. In addition, a highly complex set of tasks is being undertaken by the United Nations in Iraq pursuant to resolutions of the Security Council adopted under Chapter VII of the Charter, Furthermore, the United Nations has been called upon to give top priority to preventive diplomacy to help avert future conflicts and further to reinforce its role in peace-keeping. , , , . . ! I the picture, a vast array of new activities are also Finally, to complete being undertaken in areas such as the environment, drug control, human rights And, of course, there is a continuing preoccupation and humanitarian relief. - 2 ,:‘, ‘I “, ,,. (, ;, r,, ,.1 8,: .’ I ,; ,(.. ‘vi I~ , ‘, with the traditional economic and social development issues. The Organization is also being advised to strengthen its machinery for large-scale humanitarian assistance. (Te This unprecedented expansion of the Organiaation's activities demonstrates the confidence of the international community in the capacity of the United Nations to respond to complex and changing global needs. For its I part, the Organization is scrupulously observing the principle of economy. This is proved by the fact that the increased rate for the proposed programme i budget for 1992-1993 is no more than 0.9 per cent, Yet, even as these new responsibilities are being piled on the Organization, no serious consideration appears to be given to how these operations are to be financed. Reliance is being placed on the existing, conventional financing arrangements of the United Nations which have proved, as they are bound to prove, woefully deficient. The combination of escalating responsibilities and the failure to provide the resources to meet them has landed the United Nations in a dangerously precarious financial condition. Given this situation and considering the difficulties pleaded by many countries in meeting their obligations to the Organization, the United Nations can only lurch from one state of financial desperation to another, unable, for all practical purposes, to meet its current cash commitments, let alone to plan ahead. Should this threatening financial crisis continue, the Organization may well fail to carry out urgent and important activities, particularly in the areas of peace-keeping and peace-making. Such a failure, for lack not of will or capability but of means, could severely erode the regained confidence which has propelled Governments and the public to turn to the United Nations for the solution to problems that endanger the maintenance of international peace and security, the principal purpose of this Organization. If this were to happen, the losers would include: the peoples of the world who have the right to expect and demand an effective, dynamic and responsive United Nations in these troubled times; those Member States which have regularly met their legal obligations and paid their contributions on time and in full and have basically served as the financial backbone of this Organization; and the staff who have devoted their lives and careers to this Organisation. I urge the 102 Member States which had failed, as of 31 October 1991, to meet in full their statutory financial obligations to the Organiaation to ponder these issues with all their implications in mind. I appeal to them, and especially to those Member States with relatively prosperous economies, to pay now. It is regrettable that the group of countries in arrears include some which should be able to.pay and which, for historical, political and constitutional reasons, bear a particular responsibility, It is paradoxical that Member States should fail to fund adequately and on a timely basis the programmes they elaborate, approve, and set deadlines for. Even though this situation is well known, Member States have no hesitation in asking the Secretariat to undertake new, complex and challenging activities. Yesterday it was Cambodia. Tomorrow it could possibly be Yugoslavia. Can we predict that other situations will not arise? Will these activities be properly funded? The time has clearly arrived for a fundamental re-examination of the situation and a fresh approach to the problem. It is necessary to consider new and creative ways of, on the one hand, ensuring full and prompt payment by MemberState's of"'assessed contributions and, on the other, broadening the resource base, of the Organization beyond its traditional narrow confines. I am convinced that the elements of a viable, durable solution can be found for both the short-term and the long-term. Let me reiterate some suggestions designed for this purpose which I have outlined in my report: Grop'osal No. 1: Adopt a set of measures to deal with the cash flow problems'caused‘by the exceptionally high levels of unpaid contributions and inadequate,,working capit'ai reserves. First, charge interest on the amounts Of assessed contributions 'that are&% pdid on time; secondly, suspend the financial regulations of the United Nations to permit the retention of budgetary surpluses; thirdly, increase the Working Capital Fund to a level of $250 million from 1 January 1992 and endorse the principle that the level of the Fund should be approximately 25 per cent of the annual assessment under the regular budget; fourthly, establish a temporary peace-keeping reserve I. ,: fund, at a level of $50 million, as from 1 January 1992, to meet the initial expenses of peace-keeping operations pending receipt of assessed contributions: fifthly, authorize the Secretary-General to borrow commercially, should the other sources of cash be inadequate. Proposal No. 2: Establish a humanitarian revolving fund, to be used in emergency humanitarian situations, pending receipt of pledged contributions from donor Governments and,others; the fund should be established at a level of $50 million by a one-time assessment of Member States. Proposal No. 3: Establish a United Nations peace endowment fund, with an initial target level of $1 billion, The fund would be created by a combination of assessed and voluntary contributions, with the Latter to be sought from Governments, the private sector and individuals. Once the. fund ,..,', reaches its target level, the proceeds from the investment of its principal would be used to finance the initial costs of authorised peace-keeping operations, other conflict resolution measures and related activities. As we search for solutions to the financial problems of the ,Organization, , we must recognize that many developing countries are going through painful structural adjustments in their economies.. Formidable problems confront another important region of the world going through fundamental change in,,its economic system.. This state,of affairs,may hamper the ability of these countries to make the contributions they should make and would want to make. An essential element of any solution, therefore, must be to seek additional sources of funding, particularly by reaching beyond the traditional assessed contributions. I have outlined some of these approaches. Let me revert, however, to my third proposal which is particularly relevant to the financing of peace-keeping and related operations, namely, the peace endowment fund, initially targeted at $1 billion which could become an important framework in the search for a long-term solution. I should hope that the economically advanced Member States, especially those that bear a particular responsibility because of historical and political reasons for the success of the Organization, would not only pay their assessed contributions but also make generous voluntary contributions to the endowment fund, thus making it possible to reach the initial target of $1 billion within the next 12 months. The set of measures I have outlined should serve as a good starting-point for an exercise which is both necessary and long overdue: namely, addressing the perennial problem of imbalance between mandated tasks and allocated resources. This problem has plagued the United Nations for all too long, and only threatens to get worse. Now that the confidence factor - previously invoked for withholding financial support from the United Nations - has been turned around, is it not time also to turn around the financial prospects of the Organization? If a new world order is emerging with the United Nations playing a central part, should we not strive now to equip it for its most necessary and historic role? I urge the Assembly to work energetically with my successor, Mr. Boutros Ghali, to solve a problem which has vexed and harassed my predecessors and myself. This would be a most credible way of helping the Organization to fulfil the promise and the vision of the Charter.
I join the Secretary-General in his appeal to Member States to live up to their moral, financial and statutory responsibilities in fulfilling the needs of the United Nations of which they are Members, I think it is one aspect of a failure that should not continue in the coming days, which, it is to be hoped, we shall consider days of success for the United Nations, and I thank the Secretary-General for his eloquent, sincere, honest and meaningful statement. I call on the representative of Canada on a point of order. Mr. FORTIER (Canada): I should like indeed to raise a point of order. My delegation agrees that the debate on the specific substantive proposals which the Secretary-General has just made should take place in the Fifth Committee, as you yourself, Sir, have pointed out. However, the financial crisis of the Organization cannot only be treated as another item on our agenda. We cannot pass resolutions and expect the Organization to meet the demands Members are putting on it without paying their bills, and as the Secretary-General said in his landmark statement, this crisis is political, not just budgetary. On behalf of the delegations of Canada, Australia and New Zealand, I should like to address the issues raised by the Secretary-General in this very broad context here in the plenary session of the General Assembly, and I understand that there are other delegations which would like to follow me to the rostrum, if that should be the wish of the Assembly.
The President [Arabic] #9827
The representative of Canada has requested to be allowed to make a statement in the plenary Assembly under agenda items 109 and 110. Members will recall that the General Assembly, at its third plenary meeting, decided to allocate agenda items 109 and 110 to the Fifth Committee. Furthermore, as I stated at the beginning of this meeting, the Assembly, at its 54th plenary meeting, on 25 November, decided that the report of the Secretary-General on the financial situation of the United Nations would be introduced in the plenary Assembly under agenda items 109 and 110, on the understanding that the substantive consideration of those items would remain in the Fifth Committee. The intention was to afford the Secretary-General an opportunity to address the General Assembly on the subject of the financial situation of the United Nations in a plenary meeting. Representatives wishing to make statements on this matter can do so in the Fifth Committee, where these two agenda items will be considered starting on Tuesday, 10 December. The report of the Fifth Committee on these items will eventually be considered in the plenary Assembly. In the light of the request by the Permanent Representative of Canada, and taking into account the importance of the issues being discussed,‘1 Should like to consult the Assembly on whether the membership wishes to hear statements at this plenary meeting on these two items. Is there any objection to hearing statements under items 109 and 110 at this meeting? If there is no objection, I shall take it that the Assembly agrees to hear statements on these items at this meeting, without prejudice to their consideration by the Fifth Committee next week. It was so decided,
The President [Arabic] #9828
This decision having been taken, and out of courtesy to the representatives who have already inscribed their names on the list of speakers for the next item on our agenda for this afternoon, I should like to appeal to the speakers on agenda items 109 and 110 to be brief. Mr. FORTIER (Canada): Mr. President, thank you very much for your decision - and I assure you that I shall be brief. I have the honour to address the Assembly today on behalf of my own Government and the Governments of Australia and New Zealand. The subject we address today, the financial viability of the United Nations - a very sombre subject indeed - constitutes perhaps the most significant challenge to the effectiveness of our institution in years ahead. While Member States are constantly urging new activities on the Organization, many of them have proved unwilling to meet even their existing financial commitments to the United Nations. To use a well-known cOllOquialism, let us put our money where our mouth is. At the outset, we strongly urge all delegations which have not yet met their obligations for 1991 or previous years to do so before the end of the year. Allow me to assure the Zpsembly that all three of our countries intend again this year to pay our 1992 assessments to the regular budget of the Organization on time. (The President) From our p@rSpeCtiVe, a strong temptation might exist t0 lapse into self-righteousness on this topic. Our three countries can claim that we bear no responsibility for the financial crisis. Australia, New Zealand and Canada have always paid their contributions in full, on time, and On request in advance. We have supported multilateral action through some very depressing times. We do not intend to abandon or qualify our commitment to the United Nations now when it is showing signs of vitality. And we do not intend to engage in posturing on the critical financial issues before US today. During the Secretary-General's most recent term of office, the United Nations Secretariat has carried out some of the most challenging mandates it has ever been asked to manage. It is a tribute to him and to his colleagues in the Secretariat that they have succeeded in spite of a constant cash-flow crisis. Under his leadership, Member States have come to rely on the Security Council to find solutions to longstanding conflicts, The General Assembly and its subsidiary organs, including those of the Economic and Social Council, are now internationally accepted forums where meaningful discussion of the challenges facing the world community can take place. One would presume that the future for the Organization could not be brighter. Yet many of those Member States that use the United Nations political arena SO effectively and are the most demanding of new services do not seem to be prepared to pay for the Organization, Most Governments find it difficult to reconcile revenues with financial outlays. When one looks at spending priorities, it is easier to postpone paying the bill for a far-away institution pressing its financial requirements Politely than to disappoint frequently shrill domestic constituencies, However, this approach by Member States is proving increasingly unsustainable for the United Nations. SO far the Secretariat has managed to serve the basic needs of the Security Council, the General Assembly and the other organs of the United Nations, even though it has been forced to Live on a hand-to-mouth basis. This process of improvisation through management by financial crisis is no longer either feasible or sensible, as the Secretary-General has so rightly pointed out. At the same time, while it is true that the Organization indeed has much to be proud of, Member States, including Australia, Canada and New Zealand, which have supported the United Nations through thick and thin, ask themselves whether their contributions are used as effectively as they should be. Issues of Secretariat reform have been discussed informally amongst a number of delegations. We share a wish to see an end to duplication, lack of coordination among different divisions of the Secretariat, and jealousies amongst the numerous United Nations agencies. Institutions meant to serve Member States are often remote and unresponsive. We remain hopeful that genuine reforms of both the structures and the operational approaches of the United Nations can be fostered. But we recognize that the encouragement of a culture of economy and efficiency in the Secretariat will be a futile endeavour if prompt payment of dues is simply to go on being avoided by many Members. The United Nations now benefits from unequalled goodwill throughout the world community. We urge all Members to honour this goodwill by suPPorting the Secretary-General's call to take measures to provide the Organization with the resources it requires to allow it to respond rapidly to all Members' demands, (Mr. Fortier, Canada) The proposals placed before the General Assembly by the Secretary-General warrant our fullest consideration. While they need discussion in detail - and some might need further elaboration - this should not be a cause to delay or defer decisions, at least on the more straightforward and longstanding proposals. Let us aim for a resolution that will be both a tribute to the outgoing Secretary-General and a welcome to his successor. Without looking at the details of how the various proposals would be put into effect, we are in favour, in principle, of the need to establish a designated start-up fund for peace-keeping and of looking at ways to increase the Working Capital Fund. Our delegations have advocated greater financial flexibility for several years now, particularly because of the greatly expanded demands of peace-keeping missions. (Mr, Fortier, Canada) We also think there is merit in the proposal to begin to charge interest on assessments 30 days after payment is due. However, unfortunate recent experience in other organizations leads Us to be sceptical about the wisdom of the United Nations borrowing money on the open market. Finally, the proposal concerning a peace endowment fund is innovative. We would need to discuss the concept with members of the Secretariat and other delegations. How to improve the capacity of the United Nations to respond to humanitarian emergencies and how to provide funds for relief is one of the major issues being discussed at this session of the Assembly and is of keen interest to all three of our delegations. We will continue our active participation in relief operations around the globe, in large part, we hope, through better-coordinated United Nations activities. In conclusion, we are in complete agreement with the Secretary-General that the United Nations needs secure funding to be more effective. The situation we are now facing is both intolerable and untenable. However, the burden of supplying the necessary funds needs to be shared fairly. All Member States must meet their obligations when they come due, If not, those Member States with the best record of support for the United Nations may come under domestic pressure to delay payment in future so as not to subsidize those Members with a poor record. Mr. BREITENSTEIN (Finland): I am grateful for the opportunity to make this statement on behalf of the five Nordic countries. During the general debate,at this forty-sixth session of the General Assembly, many speakers welcomed the emerging favourable climate for international cooperation. In your summary, Mr. President, you yourself underlined the importance of the general support that had been expressed by Member States for a strengthened role for the United Nations as a result of (Mr Fortier,) the positive new developments in the world. Yet at the same time, we now face a serious financial crisis in the Organiaation. The paradox is that we have an organization on which we place increasing demands, particularly in the area of peace-keeping and conflict resolution, but also an organization that lacks the resources to fulfil the role we want it to play. If Member States have the political will to launch new activities and.operations, they ought also to have the political will to finance their implementation. It is obvious that there would be no financial crisis if all Member States paid their assessed contributions on time and in full and if, in addition, the Secretary-General had sufficient reserves at his disposal. Clearly, the United Nations is highly respected and valued by all its Member States. Why, then, do so many of them ignore their statutory obligations? The assessed contributions cannot possibly constitute an unreasonable burden on any Member State. The benefits of membership far outweigh the expense involved. During this session of the General Assembly the Secretary-General has repeatedly drawn the attention of Member States to the critical financial situation of the Organization. The Nordic delegations would like to express their appreciation to him for his efforts to make Member States pay their assessed contributions and arrears, pertaining both to the regular budget and to peace-keeping operations. Let me also add that the Nordic countries fully agree with the Secretary-General's statement yesterday when he extended his congratulations to his successor, Mr. Boutros Boutros Ghali, and said something to this effect: that he was happy to hand over to his successor a stronger and (Mr, Breitenstein, Finland) healthier United Nations, the only negative aspect being its financial insolvency, a situation which most assuredly was not due to bad management. The report of the Secretary-General now before us (A/46/600 and Add.1) presents an alarming picture of the financial situation of the Organisation, We appreciate the detailed information that has been made available to us on the pattern of payments of each Member State. That information clearly demonstrates the seriousness of the situation, as did the statement that the, Secretary-General made just a few minutes ago. I can say that the Nordic countries welcome the Secretary-General's view on how to address the situation and that we support the main thrust of his proposals. We hope that the urgency of the situation, along with a greater crisis awareness, will be conducive to speedy action, What we need more than anything else is a new spirit of involvement with, participation in, and shared responsibility for the United Nations. The Nordic countries attach particular importance to the establishment of a peace-keeping reserve fund. The Secretary-General should be provided with the necessary resources to permit him to take immediate action when the need arises. We have long been of the opinion that arrangements should be made to facilitate the start-up of new operations. We therefore support the establishment of a peace-keeping fund at this session of the General Assembly. We also believe that the Working Capital Fund should be increased to a level of approximately 25 per cent of the annual assessment under the regular budget. We consider this percentage reasonable to ensure sufficient liquidity, especially since the Fund is also used to accommodate unforeseen and extraordinary expenses. Furthermore, we believe that the three funds, the Working Capital Fund, a peace-keeping reserve fund and a humanitarian revolving fund, would go a long way towards meeting the Secretary-General's well-founded demands for budget reserves. Reserves are a prerequisite of smooth and rational operations and are in line with sound budgetary practices. The financial problems of the United Nations must, naturally, also be dealt with on a broader scale and in a longer time frame. We believe that the setting of priorities for programmes should be taken into account in this discussion. This is of course a matter primarily to be dealt with in the context of the programme-planning and budget process. There is, however, a link between this process and the financial crisis. The pattern of payments by Member States can be seen as a measure or a reflection of the degree of confidence that individual Member States have in the Organization. I have presented these views on behalf of the Nordic countries in the hope that a comprehensive solution can be found at this session of the General Assembly to avoid the financial insolvency of the Organization. As Members, we all have a responsibility to ensure that the Organization has the resources required to carry out the tasks that we, collectively, have entrusted to it. The United Nations can operate on a sound financial basis only if the. method of financing is strictly adhered to and respected by all Member States. The only real and lasting solution to the financial crisis is payment by all Member States of their assessed contributions in full and on time and without conditions. The principle of collective responsibility for the expenses of the Organization embodied in Article 17 of the Charter must be upheld. To Pay one's assessed contribution is a treaty obligation, not an option, Mr. VAN SCHAIK (Netherlands): I will speak on behalf of the twelve member States of the European Community. Thank you for giving us the opportunity to make a brief statement on this very important and urgent matter. We listened with great interest to the important statement made by the Secretary-General in which he underlined the very serious financial situation of the Organisation. We appreciate the fact that the Secretary-General has addressed the issue at the plenary level of the Assembly. His statement, as well as his report, will be studied expeditiously, in a positive spirit, and we shall return to it in the Fifth Committee, Global political developments have made Clear t0 US all that the United Nations is at the dawn of a new era. The demands on the Organization are increasing and the Members' expectations are rising. Member States are exploring avenues to give the Organization renewed vitality and to establish an appropriate structure for the Secretariat. The 12 member States of the European Community are deeply concerned about the grave financial crisis confronting the Organization. While that crisis has been developing over the years, it should be addressed with the greatest possible urgency. Aware of these facts, the Twelve are preoccupied about the prevailing situation, as it demonstrates that the very Member States that time and again underline the Organization's importance and in fact do not hesitate to call upon its good offices are allowing its financial situation to deteriorate to the point where its effectiveness risks being called into question. It seems these Member States trust that the Organisation, at the last minute, will always be bailed out by those Members, like the 12 member States of the European Community - together they contribute over 30 per cent of the assessed contributions - that honour their obligations to the United Nations and pay their contributions promptly, in full and without conditions. In this context the Twelve wish to recall that they and other States Members of the Organization have stressed year after year that the difficult finanCia1 SitUatiOn of the United Nations is intolerable and that there is only one solution to it, and let me repeat: that all Member States Comply with the obligation to pay their share of the Organization’s expenses as apportioned by the General Assembly. This is not a discretionary mattrir and is not subject to any conditionality: rather, it is a solemn obligation under Article 17 of the Charter. Non-compliance with this obligation also calls into question the willingness of Member States to uphold the new budget process established under resolution 41/213. This landmark resolution emphasizes the desirability of efforts to achieve the broadest possible agreement on the financial appropriations. It should be borne in mind that both the current budget and the current scale of assessment based on capacity to pay were adopted by consensus. It would be ironic in such circumstances if Member States fail to honour what is a political commitmentr as well as a binding legal obligation, As to the Secretary-General's longer-term proposals, the Twelve would, first of all, agree to his statement (A/46/600) that non-payment by Member States has placed an unjust burden on those Member States that meet their financial obligations. The proposals before the General Assembly consist essentially of enlarging the reserves. While this might merit serious consideration in circumstances where all Member States meet their obligations, as things stand at present, there is a risk of further increasing the burden on those Member States that already pay promptly and in full. In our view the main problem is the financing of the reserves, rather than their size. The solution to the immediate financial crisis is straightforward: all Member States must pay promptly and in full. At this time when the community of nations is looking to the United Nations to play a greatly enhanced role in world affairs, the question of improving its financial basis should be addressed. The Twelve are willing to work constructively with the (Mr. Van Schaik, Netherlands) Secretary-General and the Member States to consider appropriate measures in this regard on the understanding that all Member States fulfil their commitments and obligations to the Organization. Mr, HOHENFELLNER (Austria): At the outset, allow me to express our deep appreciation to the Secretary-General for having personally introduced his report on the financial situation of the United Nations, and thus drawn our special attention to the Organisation’s severe financial crisis, which it is indeed facing. Austria shares the Secretary-General’s profound concern that the United Nations is on the brink of insolvency and bankruptcy. As he eloquently and clearly points out in his report, the salaries for United Nations staff members may not be paid and the programmes approved and the mandates given by us Member States may not be carried out. My delegation finds it intolerable that at a time when the Organization is entrusted with new tasks in virtually all areas - environment, development, international drug control, peace-keeping operations - it is not endowed with the necessary financial means effectively to implement these activities. This means not only pure lip-service of some Member States, but also missing what is probably a unique chance for the world community jointly to tackle global and regional problems after the end of the cold war. Moreover, it is not logical and not understandable that the Organisation’s existence be endangered at a time of enhanced reputation and increased confidence in international public opinion. The constant burdening of the Organisation with more activities to be carried out, while the budget is hardly growing and is even stagnating, places the United Nations in a difficult situation. In this light, it is unacceptable that some Member States do not pay their assessed contributions at the Organization's expense. It is also unfair to those Members that do fulfil their financial obligations in accordance with Article 17 of the Charter of the United Nations and, with regard to the peace-keeping budget, places an additional burden on the troop-contributing countries, My delegation therefore strongly appeals to all Member States in arrears with their financial obligations to fulfil their obligations under the Charter at the earliest possible date. Immediate compliance on the part of these Member States would solve the financial crisis. In this context we wish to reiterate Austria's strong support for the United Nations and its cause. For this reason, Austria is particularly proud to be one of the Organiaation's host countries. Over the years, Austria has proven its commitment by, inter alia, meeting its financial obligations. Allow me to assure the Secretary-General through you, Mr. President, that Austria will continue to pay its contributions to the regular as well as to the peace-keeping budgets in full and on time. Nevertheless, we agree with the Secretary-General that a viable, durable, long-term solution to the financial crisis, which is a perennial problem, has to be found. We have noted with regret that the new budgetary process established under resolution 411213 has not borne the fruit expected.* * Mr. Min (Myanmar), Vice-President, took the Chair. unfortunately, therefore, the process of taking decisions by consensus on all budgetary matters has not produced the expected benefits, nor has it enhanced the political will of some Member States to pay their share of the expenses that they agreed to pay. We believe that the proposals put forward by the Secretary-General deserve detailed discussion and thorough examination in the General Assembly. My delegation is willing to cooperate actively and constructively in the search for a durable solution to this crisis. I should like to take this opportunity to pay a tribute to the Secretary-General for his sincere commitment to this Organization and its goals. Today - such a short time before the end of his term - he has once more proven his commitment by proposing measures to achieve a lasting solution of the severe financial crisis. He deserves our full respect, appreciation and support. Mr. MONTGO (Mexico) (interpretation from Spanish): I listened most attentively to the statement of the Secretary-General. I agree entirely with his view that this is a political problem, and one that obviously requires proper treatment and thorough consideration. As Chairman of the Latin American and Caribbean Group for the month of December, I should like to convey to the Assembly that Group’s particular concern about the financial situation of the Organiaation. However, I should like also to make a formal request that this debate be resumed in plenary meeting before the item is considered by the Fifth Committee. I am aware of the time restrictions, but, having heard very sound statements from various delegations this afternoon, we feel that it is necessary that other groups and other delegations that are not prepared to speak at this time be given an opportunity to make proper, well-thought-out statements, as has been done by those representatives who have expressed the same degree of concern. It is a degree of concern that we all feel. We would request you, Mr. President, to reply to our formal request that this debate not be concluded today, that it be continued in plenary meeting, with the Secretary-General present - his schedule being taken into account - so that other delegations may be able to express their views on an equal footing.
Subject to the agreement of President Shihabi, the Secretariat will be instructed to arrange a schedule that will provide an opportunity for further statements at an appropriate time next week - perhaps on Tuesday.

37.  POLICIES OF APARTHEID OF THE GOVERNMENT OF SOUTH AFRICA (a) REPORT OF THE SPECIAL COMMITTEE AGAINST APARTHEID (A/46/22) (b) REPORT OF THE INTERGOVERNMENTAL GROUP TO MONITOR THE SUPPLY AND SHIPPING OF OIL AND PETROLEUM PRODUCTS TO SOUTH AFRICA (~146144) (c) REPORTS OF THE SECRETARY-GENERAL (A/46/499, A/46/507, A/46/648) (d) REPORT 0~ THE SPECIAL POLITICAL COMMITTEE (~1461643) (e) DRAFT RESOLUTION (A/46/L.31) UNITED NATIONS EDUCATIONAL AND TRAINING PROGRAMME FOR SOUTNERN AFRICA (a) REPORT OF THE SECRETARY-GENERAL (A/46/561) (b) DRAFT RESOLUTION (~/46/~.3i) Mr. SHAHEED (Syrian Arab Republic) (interpretation from Arabic): Any assessment of the events in racist South Africa over the past four decades would bear witness to the grave injustice, racial discrimination, oppression and systematic violence to which the African majority has been subjected urider the system of apartheid. Statistics show that there have been more than 17 million arrests of people from the indigenous population found in areas reserved for the white minority; the dispossession of 3.5 million people of their homes; 80,000 detentions without trial; and up to 40,000 South Africans driven into foreign exile. It is more difficult to measure the destruction of families torn apart by racial reclassification, the ravages of inferior education, deprivation of job skills and the attendant suffocation of self-worth. During the past few months, South Africa has witnessed several events. De Klerk has assumed a reformist posture by repealing the major laws that institutionalised apartheid. Nevertheless, it is difficult to believe that the odious system of apartheid is about to disappear. The repeal of the Population Registration Act, which stipulated the racial classification of newly born babies according to the colour of their skin, will have no retrospective effects. In other words, the provisions of the Population Registration Act will continue to be enforced on the African majority, who will not benefit from the repeal act until the country has been completely rid of apartheid. Moreover, the repeal of that act will continue to be meaningless so long as the apartheid tricameral Parliament continues to exist, As for the Land Measures Act, which allowed the Whites, of whom there are about 5 million, to own 87 per cent of the land, through the dispossession of the indigenous population, the repeal act does not envisage the restitution of property to the original owners. On the other hand, the African majority, which has been impoverished by the racist regime, does not have the necessary funds to buy back the land it originally owned, and which should be restituted at no cost. These aforementioned laws, like all the other laws that institutionalized apartheid, derive their validity from the main law that is the constitution of racist South Africa. That constitution is the basis of apartheid. It will undoubtedly take scores of years to wipe out the odious system of apartheid and racial segregation from legislation, procedures, minds and hearts. Clear evidence of that is to be found in other countries, where racial discrimination, although legally abrogated several decades ago, continues to affect large sections of the populations. In his second interim report on the implementation of the Declaration on Apartheid and its Destructive Consequences in Southern Africa (A/45/1052), the Secretary-General states that the most basic laws of apartheid were removed by June 1991. He nevertheless points out that many of the concomitant attitudes and practices, and indeed the consequences of those laws, still persist. Therefore, it is no wonder that Christopher Warren, the correspondent of The New York Times, in Johannesburg, should give us this picture of public life in Pretoria in his article of 10 November 1991: (svoke in Enalish) *@The basic laws mandating racial discriminatiOn were repealed in June. But the structure of a white predominantly Afrikaner Civil Service who put apartheid policies into practice remains intact . . . Indeed, a visitor to Pretoria, the administrative capital and a city with a high proportion of Afrikaners, finds whites occupying the offices and answering phones, while blacks mow the grass, fix the roads and make the tea." (spoke in Arabis) In the light of this, others are free to believe, if they wish, that the odious system of apartheid died on the 7th of June 1991, but the African majority believes that apartheid will not be buried until the day when that majority can enjoy and fully exercise the right to vote, until the day the country is free from the misery resulting from the policy of apartheid, some of the facets of which I mentioned at the beginning of my statement. The African majority continues to live, since 1984, in the grip of a wave of violence which has resulted from the hateful policy, practices and structures of apartheid, That wave of violence has taken a toll of more than 11,000 lives according to the estimates of human rights organisations. There is no doubt that the Peace Accord signed on 14 September last is of course better than no agreement at all even if it was not fully implemented. It is also better than killing innocents because they wear the wrong headband. That Accord was a heavy blow dealt to the racist Government of Pretoria which continues to benefit from fanning the flames of violence. The Government of Pretoria is capable of putting an end to the acts of violence if it so wishes. Up to this minute, however, there is nothing to indicate that the Government has the intention of putting an end to the violence, which has brought untold suffering and misery on the African majority. In some instances, the violence stoked up by the racist Government of Pretoria has reached the level of real massacres which have earned the condemnation of the whole world. A Sergeant in the South African Army by the name of Felix Andeni has made full confession to the British daily The IndeDendent, on 19 July 1991 to the effect that most of those massacres are in actual fact the work of specialized units in the South African Army. Andeni gave clear details of the activities of the Fifth Intelligence Brigade, wherein he worked from 1989 to 1990, He has also unmasked the fact that the massacre of the train in the Soweto area of 13 September 1990, when 26 passengers were killed, was arranged by the First Unit of the Fifth Intelligence Brigade and, that he personally participated with others in the perpetrations of that awful massacre. In an article by Mr. Warren in The New York Times of 12 June 1991, other facts were revealed by Mr. Niche Bassoun, a retired*Major of the Military Intelligence of the South African Army to the effect that he actively was involved in planning and carrying out attacks against the population in and around Johannesburg and the mobiliaation of the segments of the population who carried out those acts of violence. This was not the end of it, The newspaper The Weeklv Mail of Johannesburg has revealed the so-called Inkathagate scandal when it published copies of documents that proved that the Government of South Africa, with the seeming knowledge of de Klerk himself, finances the organizations which perpetrate acts of violence in the townships. All these facts reaffirmed the arguments continually made by the African majority concerning the involvement of the Government security forces in the stoking of the acts of violence which are directly a result of the continued existence of the policy and practices and structures of apartheid. It is to be feared that if this wave of violence, which is being stoked up by the Government of Pretoria, were to continue, it would abort all the steps taken towards a settlement in southern Africa that would restore the legitimate usurped rights of the African majority. We call upon the struggling African majority to close ranks, to join forces and to intensify its efforts to create a strong, unified front against the racist regime of South Africa, which wishes to weaken the negotiating position of the African majority by fanning of the flames of violence; We call upon the racist Government of South Africa to put an immediate end to this wave of violence through which it wants to impede the progress of the legitimate cause of the African majority. Since 1974, the General Assembly has consistently condemned the collaboration between Pretoria and Tel Aviv. The Special Committee against Apartheid in South Africa and its international consequences, upon the request of the General Assembly has continued to review the developments of this collaboration and to submit annual reports thereon since 1977, We view the problem of the collaboration between the regimes of Pretoria and Tel Aviv from the standpoint of its effect on the efforts aimed at the elimination of apartheid in South Africa and the threat that this collaboration poses to African and Arab States. The causes and motives of this collaboration which has been branded by the General Assembly, in its resolution 3151 G (XXVIII) as a sinister alliance, are well known. The British Independent published on 11 November 1991 an article by Mr. John Cortin entitled “A Sinister Trade Between Israel and Pretoria*', in which the writer tried to explain the motives for this collaboration between Israel and racist South Africa since 1948: (Doke in'Enalish) "South Africa and Israel, united by the international hostility each has long provoked, have built up, over 25 years, a shadowy, sinister and mutually advantageous network of military connections, the most spectacular of which, collaboration on a project to produce a nuclear bomb . .." (continued in Arabic) He goes on to ask: (spoke in Enalish) **why did Israel engage in this diplomatically dicey "special relationship"? A former Israeli official told Seymour Hirsch it was because South Africa was rich in raw materials, notably uranium, iron ore and coal, because, as the official said, 'try to do a nuclear test in Israel and all hell breaks loose', and because "they are also European settlers standing against a hostile world,"' . . . (continued in Arabic) And Mr. Cortin goes on to ask once again: (spoke in Encrlish) What has South Africa gained? The much-vaunted South African arms industry would have been a shadow of what it is without Israeli know-how. The Israelis contributed significantly to the development of an effective killing machine that was turned against South Africa's neighbouring States and the opponents of apartheid within the country.” (continued in Arabic) The American writer I have just mentioned, Mr. Seymour Hirsch, author Of The Samson Ovtion, affirms that there are six or seven secret military and nuclear notes of understanding between Israel and South Africa, If we take into account, in this context, the special nature of the two regimes in South Africa and in Israel, it becomes quite evident that their efforts to acquire and develop weapons of mass destruction do not arise from any defensive concept, as in the case of other countries, but, rather, from aggressive, expansionist concepts that aim at entrenching their aggression and imposing faits accomvlis with the force of arms. This sinister alliance between South Africa and Israel continues to grow stronger from one day to the next. Recently, it has become public to an unprecedented degree. On 10 November 1991, De Klerk, accompanied by a large delegation that included Botha, his Foreign Minister, paid an official three-day visit to Tel Aviv, during which he met with top Israeli officials. In the course of the visit, Pretoria's Foreign Minister Botha admitted that the two parties had collaborated in the military sphere up until 1987, since which year, he claimed, "no military contracts had been signed". He also claimed that their "relations were not going to be based on military cooperation but, rather, on industrial, commercial and economic exchanges". In turn, Tel Aviv's rulers have claimed that they have not signed any new military agreements with South Africa since 1987, when they purportedly froze their relations with South Africa. However, they emphasized their continued commitment to agreements previously signed, agreements that will expire, they claim, at the end of next year. The Israeli newspaper Ha'aretz estimates the annual value of the economic cooperation between the two regimes at approximately $800 million. At the conclusion of his visit, on 13 November 1991, De Klerk held a press conference at which he refused to speak about the collaboration between the regimes in the nuclear and military fields. With regard to Pretoria's drive to break out o,f the isolation imposed upon it as a result of its racist policies, De Klerk stated that "there was no contradiction between the establishment of good relations with the Arab world and the relations that have long existed with the Hebrew State". Naturally, the future will reveal the true nature of the agreements signed and the effects of such agreements in promoting further the relations of the two regimes. In light of the facts concerning the close relationship between Pretoria and Tel Aviv, one is truly bewildered at the audacity of the representative of Israel in deciding to participate in a debate on apartheid. In that debate he made a statement in his usual manner, one filled with deceit, distortion and fabrication on a level that would arouse the envy of a Goebbels. The African majority, the legitimate owners of the land and its wealth, have in his opinion become a mere "community", just as the Palestinian people are "Arab Palestinians" and the occupied Arab territories have become mere "territories". The word, incidentally, was first used in South Africa to distinguished between first-class citizens and so-called "non-citizens". Zionism, whose true nature was defined by General Assembly resolution 3379 (KKK), has, in his opinion, become a model to be followed by many liberation movements. That representative, who for many years has reaffirmed the non-existence of any military relationship with South Africa and maintained that only relatively minimal economic relations existed (A/45/PU.57) yesterday tried, with his usual audacity, to convince us that relations between Israel and South Africa have overnight reached the point at which high-level visits are being exchanged and that such relations are quite natural - disregarding, as usual, the many resolutions adopted by the United Nations. This collaboration of which the representative of Israel now speaks freely cannot be passed over in silence. Its dangers cannot be minimized by the waving of slogans in this forum by the representatives of that racist regime with regard to human rights, equality, justice, democracy and the like. The purely gratuitous sentiments expressed to our African brothers while true support is being given the racist Government of South Africa only serve to reaffirm the inability of that racist regime to break free from the interests that bind it to the racist regime in Pretoria and its inability to participate effectively with the other members of the international community in putting an end to the worst of all crimes against humanity or to commit itself in deed, and not in words, to human rights, justice and equality. Suffice it to recall here that when, on the night of 20 March 1990 the entire world celebrated the independence of Namibia, invitations were sent out to all States Members of the Organization to attend that celebration with the single exception of Israel. Need we ask the reason for that seeming insult? In spite of the abrogation of the basic legal underpinnings of the odious system of apartheid, it still exists in practice. The African majority continues to be denied its legitimate rights for purely racial reasons. As stated in the preliminary report of the Ad Hoc Working Group on Southern Africa: "a complex system such as apartheid, which has created a systematic and institutionalised system of racial discrimination, cannot be abrogated by mere acts of legislation. Much more must be done at the economic, educational and political levels and in regard to administrative structures. South African society as a whole faces the enormous task of fighting the racial prejudice and discriminatory atmosphere that infuse all levels of public Life". (A/46/401, nara. 36) In the light of all this, it would be an act of self-deception to think that the situation now prevailing in South Africa indicates the real end of the odious system of apartheid, The African majority still needs to make great sacrifices in order to achieve its legitimate objectives. The cosmetic treatment of the image of the racist regime aims basically at breaking the international isolation imposed on the De Klerk South African Government. Since De Klerk declared his intention to repeal the apartheid laws, a few countries have hastened to lift sanctions in breach of the United Nations Declaration adopted by consensus on 14 December 1989, The changes that have taken place fall short of the desired goal and cannot be considered as irreversible. In that regard, we cannot but express our concern at the increasing tendency towards the premature lifting of sanctions, which would only result in easing the pressure on the racist Government of South Africa. This pressure has proven to be indispensible if an end is to be put to apartheid in legislative and practical terms so that a united, democratic and non-racial South Africa may emerge. That is why Syria continues to hold the view that, more than ever before I the international community must continue its international measures, including sanctions against the racist regime of South Africa. It would appear that the De Clerk Government will continue to drag its feet'concerning the dismantling of the racist regime and the achievement of a settlement with the African majority in order to completely break the isolation and to lift the sanctions that have been internationally imposed against it. Finally, my country, one of the founding Members of the United Nations, reaffirms its support for and solidarity with the struggling African majority in its legitimate fight against the worst crime that can be committed against humanity. We are confident that all forms of racism and racial discrimination are doomed to fizzle out and disappear. The South African writer Nadine Gordimer, a member of the white minority, has discovered that were she to cling to her membership her life would be narrow and practically meaningless. She found her true path by repudiating the policies and ideas of racial discrimination. She has spontaneously given expression to the collective experience of the African majority with all its anguish and all its aspirations, PROGRAMME OF WORE

I should like to inform members that tomorrow afternoon - in addition to considering agenda item 29, "The situation in Afghanistan and its implications for international peace and security": agenda item 31, "The situation in Central America: threats' to international peace and security and peace initiatives"; agenda item 34, *'Cooperation between the United Nations and the League of Arab States"; and agenda item 40, "Question of peace, stability and cooperation in South-East Asia" - the Assembly will also consider a report of the Second Committee on agenda item 12, "Report of the Economic and Social Council", as the first item.