$30M 'peanuts’ in U.N. crisis

Press, 25 January 1986, Page 11

$30M 'peanuts’ in U.N. crisis

NZPA-Reuter New York The United Nations is in its worst-ever financial crisis and what the Secre-tary-General can do to meet the problem is “mere peanuts,” says the world body’s fiscal chief. The Under-Secretary General for Administration and Management, Mr P. Ruedas, said the choice confronting the 159-mem-ber states was to find more resources or reduce United Nations activities. “We are not getting in what the Governments are expecting us to spend,” he said, reporting a SUS22S million ($434.25 million) shortfall at the end of 1985 on a budget of more than SUSBOO million ($1.54 billion). The Secretary General, Mr Javier Perez de Cuellar, has said he might have to call a special session of the General Assembly to deal with the crisis. His own economies, including cutting staff travel, would save only SUSIS million ($28.95 million), he said. Mr Ruedas blamed a

new United States budgetbalancing law for Washington’s failure to meet its United Nations obligations. If the implications of that law were realised and the United States cut its United Nations contribution heavily over the next few years, the result could be “little short of disastrous” for the world body, Mr Ruedas said. He said that Mr Perez de Cuellar’s working capital fund of SUSIOO million ($193 million) for exigen-

cies was already exhausted and the United Nations now was living “from hand to mouth.” It might not be able to meet its payroll. Noting that 75 per cent of the regular budget goes to staff, Mr Ruedas, who is from Spain, said that by agreement United Nations salaries are up to 20 per cent higher than those in the United States civil service, because most United Nations employees are expatriates. A reduction in United Nations salaries was an option that might have to be considered. He agreed that it might be unhealthy for a few members to pay the bulk of United Nations costs. The United States is assessed 25 per cent of total costs but wants to reduce its contribution to 20 per cent or less. He said that perhaps there ought to be a limit of 15 to 20 per cent. Only 15 of the 159 members are assessed 1 per cent or more, and Mr Ruedas said some of them had trouble paying up because of the global economic situation.