Statement by the Representative of Indonesia, on behalf of the Group of 77 and China, before the Fifth Committee on Agenda Item 115: Improving the Financial Situation of the United Nations, at the 53^rd Session of the United Nations General Assembly

New York, 6 October 1998

Mr. Chairman,

1. I have the honour to speak on behalf of the Group of 77 and China on Agenda Item 115: Improving the Financial Situation of the United Nations.

2. We would like to thank the Under-Secretary-General for Management, Mr. Joseph Connor, for his statement and for presenting updated information on the financial situation of the United Nations.

Mr. Chairman,

3. The Group of 77 and China has always stressed the importance of redressing the difficult financial situation of the Organization. In this regard, the Ministers for Foreign Affairs of the Group of 77 and China at their Twenty-second Annual Meeting in New York last month, reiterated their deep concern over the difficult and chronic financial situation of the United Nations and reaffirmed that the primary cause of the financial difficulty continues to be the failure on the part of certain developed countries to pay their assessed contributions to the regular and peacekeeping operation budgets, in full, on time and without conditions.

4. Furthermore, the Group of 77 and China wishes to underscore the intergovernmental nature of the United Nations. We would like to reaffirm the legal obligation of Member States to bear the expenses of the Organization in accordance with the relevant provisions of the Charter and the requirements to pay assessed contributions and arrears in full, on time and without conditions. We recognize, however, the need to extend sympathetic understanding to Member States who are temporarily unable to meet their financial obligations as a consequence of genuine economic difficulties.

5. Moreover, the Group of 77 and China regrets to note that due to the continuing cash flow deficit in the regular budget, the Secretariat has had to resort to internal cross borrowing from the peacekeeping budgets in order to finance the regular budget expenses. The late reimbursement to developing countries that provide troops and equipment to various peacekeeping operations therefore continues to be of concern to the Group.

Mr. Chairman,

6. Finally, let me reaffirm that the Group of 77 and China shall continue to constructively participate in the collective efforts to resolve the persistent financial difficulty of the Organization. We remain of the view that the only viable solution is for Member States to pay their arrears promptly and to honour faithfully their legal obligations in full, on time and without conditions.

Thank you.