Mr. Chairman,

I have the honour to speak on behalf of the Group of 77 and China on agenda item 119, entitled Improving the Financial Situation of the United Nations.

2.         The Group of 77 and China wishes to thank the Under Secretary General, Department of Management, Ms.Alicia Barcena, for presenting the report on the financial situation of the United Nations.

Mr. Chairman,

3.         The Group of 77 and China would like to affirm that payment of assessed  financial contribution  in full, on time and without conditions in accordance with their capacity to pay is a Charter obligation and a shared responsibility of all United Nations member states.  It is a pre-requisite to ensure the smooth function of the Organization and to enable it to implement all mandates.

4.         We are encouraged at the reported improvement in the financial position of the United Nations in 2006.  However, we are equally concerned to note that the financial position of the regular budget at 16 May 2007 was weaker than at the same date in 2006.  It is particularly worrying that the unpaid assessed contributions on 31st December 2006 increased to $ 361 million  up by $ 28 million compared to 31st December 2005. 
 
Mr. Chairman,
             
5.         The Group of 77 and China is satisfied to note that there have been some improvement in the financial position of peacekeeping operations and contributions of over $ 2.8 billion have been received by the organization on 16 May 2007.  With regard to the availability of the cash as indicated in the presentation by the USG, the Group would like to know further, how the current cash balance would impact the peacekeeping mandates by the end of the year. 

6.         The Group of 77 and China notes the negative implications that non and late-payment of dues hold for the functioning of some peacekeeping operations.   The Group of 77 and China would like to emphasize that in view of the urgent importance of the implementation of peacekeeping mandates and challenges faced by the operations on the ground, notwithstanding the inherent unpredictability of peacekeeping operations, Members Sates must make endavours to pay their assessed contribution on time and in full.
           
 Mr. Chairman.
           
7.         The Group of 77 and China would like to voice its strong concern over the fact that the United Nations owes $ 1 billion to troops and police contributing countries and for contingent owned equipment. We are further concerned that this debt is likely to go up by $ 589 million by the end of 2007.  The United Nations peacekeepers often carryout their mandate in the most formidable circumstances and deserves our profound appreciation. The Organization should treat the full reimbursement of these payments to the concerned countries as one of its financial priorities. In this context, we would urge all member states to fully pay their financial obligation to the United Nations and request the Secretary General and the Member States to finalize the MoUs. 

8.         The Group of 77 and China would like to express its appreciation to the Tribunals for Rwanda and former Yugoslavia for their challenging work. We are encouraged to note that more Member States have paid their contribution to the international tribunals in 2006. We hope that this positive trend would continue in 2007.  It is imperative to enable the tribunals to complete their noble mandate under difficult circumstances.

9.         We would like to thank the Under Secretary General for an update on the financial situation of the Capital Master Plan.  We hope that the current trend of the payment to Capital Master Plan would continue and   it would be implemented in accordance with the envisaged timelines.  We also trust that the Secretariat is making every effort to ensure that the project is implemented without any further delays and in accordance with the decisions of the Assembly.

Mr. Chairman,

10.       The Group of 77 and China would like to join the Secretary General in complimenting those Members States who have paid their contributions towards regular, peacekeeping and tribunals.

11.       The Group of 77 and China remains committed to the strengthening of the United Nations and enabling it to implement its mandates more effectively and most efficiently.  The Group of 77 and China would also like to reiterate its strong commitment to meet financial obligations on time in full and without conditions. The Group would like to extend its sympathies to Member States that have not been able to meet their obligations due to social and economic conditions beyond their control.  However, Group would once again like to urge all Member States, in particular the main contributor to recommit themselves in meeting their Charter obligation

Thank you Mr. Chairman.