(As delivered)

Statement by H. E. Mr. Toshiro Ozawa
Ambassador of Japan to the United Nations
On Improving the financial situation of the United Nations

(Agenda item 123)
Fifth Committee
Fifty-eighth session of the United Nations General Assembly
12 May 2004
New York

Thank you, Mr. Chairman.

I join others in thanking Ms. Catherine Bertini, Under-Secretary-General for Management, for her comprehensive presentation on the financial situation of the United Nations.

Mr. Chairman,

My delegation welcomes the explanation by Ms. Bertini that the overall picture of the financial situation of the United Nations is improving. We note with concern, however, that there are also some serious problems.

With a rate of assessment close to 20 percent, Japan shoulders a significant part of the regular budget, the peacekeeping budgets, and the budgets of the two international criminal tribunals. Despite experiencing serious economic difficulties for some time, the Government of Japan has made utmost efforts to pay its assessed contributions in full to the United Nations, even though, on some occasions, this has resulted in some reductions of its voluntary contributions to international organizations, including those in the United Nations system. We wish to point out that Japan has completed its payment for the 2003 assessments in full. This was achieved through the payments earlier this year of 19 million dollars for the regular budget, 41 million dollars for the two international criminal tribunals, and 4.9 million dollars for the Capital Master Plan. In addition, for the 2004 assessments, Japan has already paid 17.7 million dollars for the regular budget as well as 4.5 million dollars for the two international criminal tribunals. Furthermore, Japan has made a payment earlier this year of 243.9 million dollars for the peacekeeping budgets. My delegation believes that these payments by Japan contribute to the improvement of the financial situation of the United Nations. Since the figures provided in the presentation of the Under-Secretary-General do not reflect these payments by Japan made earlier in this year, we wish to request the Secretariat to update its information on a continuing basis.

Mr. Chairman,

My delegation has repeatedly stressed this point, but once again, we would like to reiterate the ever growing importance of accountability in order to satisfy the demands of our taxpayers. Since the Secretariat has a large role in this regard, we request you, Ms. Catherine Bertini, Under-Secretary-General for Management, to further enhance your efforts to ensure the most efficient use of the various assessed contributions.

Mr. Chairman,

Ms. Bertini stated in her presentation that owing to the deterioration of their financial position, steps had been taken to freeze recruitment and scale down operations with regard to Tribunals. Such outcomes are not what we hope to see. On the other hand, we believe that rationalization of the budgets for the two Tribunals is essential, regardless of their cash situation. Japan has completed its payments in full for the Tribunals for 2003 assessments, but we do have dissatisfaction with their management. Last October, in the discussion under this agenda item, my delegation stated that the Tribunals should be asking why one hundred and sixteen Member States had not paid any of their assessments. According to the presentation for this year by the Under-Secretary-General, the number of Member States that have not paid their assessments has not significantly decreased. My delegation would like to once again pose the same question. We point out that continuation of such a situation could possibly endanger our own payment of assessed contributions, notwithstanding the seriousness of such a development.

Mr. Chairman,

My delegation is pleased to learn that the outstanding assessments for the peacekeeping budget is falling. However, according to the Controller, several new peacekeeping missions are expected to be established, and the peacekeeping budget level would rise to a level above $4.0 billion. This would be an unprecedented level. From the perspective of a Member State whose resources are not unlimited, we must point out that peacekeeping operations are facing a serious challenge.

For some Member States, it is difficult to make immediate payment upon receipt of the assessment letter from the UN Secretariat for reasons attributable to their national budgetary cycles. Japan is one such State. Payment of assessments for closed peacekeeping missions, however, does not pose such difficulties. According to the report of the Board of Auditors (A/58/5 (Vol.II)), assessed contributions valued at $410.8 million for completed missions have been outstanding for more than one year. The Board of Auditors points out this problem of the ageing of unpaid assessments for closed missions. More serious efforts must be made to resolve such problems.

Mr. Chairman,

It is really not possible to gain a clear picture of the payment situation by simply looking at the numbers. For example, the handout distributed last week indicates that Japan's outstanding assessment for the regular budget at the end of 2003 was 19 million dollars, which amounted to 4 percent of the total outstanding assessments. In fact, however, Japan had by that time already paid 93 percent of its total assessment for the 2003 regular budget, which was 263.5 million dollars. Explained this way, one would get a very different impression of the facts. The Government of Japan does make many comments and requests on how resources ought to be utilized, but it should also be recognized that the Government of Japan has been paying its assessed contributions to the United Nations in all accounts faithfully and without imposing any conditions, as the record will bear out. We therefore recommend the Secretariat that it also take into account payment track records when it undertakes an evaluation of the current payment situation.

Thank you, Mr. Chairman.

Related Information (Japan and the United Nations)

Permanent Mission of Japan to the United Nations Official Web Site