January 6, 1997: The New York Times publishes a lead editorial entitled "America's Obligation to the U.N." which argues the "withholding dues is counterproductive" and calling on the administration to "persuade Congress to pay up now." Going on to advocate further reform measures, the editorial concludes "The United States, which has done more than any other nation to foster reform, can help now by paying its dues."
January 7, 1997: US Secretary of State Warren Christopher comes to the UN to meet with the new Secretary General, Kofi Annan. In spite of a meeting described as "cordial," there are clearly differences over financial matters. Nicholas Burns, State Department spokesman says afterwards that on the matter of UN reform the US takes the position that "it should be certainly reduced in size." Comments from the Secretary General's spokesman, Fred Eckhard, suggest that the SG's view of reform did not identify downsizing as a goal. According to an article in the New York TImes the following day, Eckhard tells reporters that Annan said to Christopher that "agreeing on reforms often requires compromise, and the United States will need to work more closely with others. . . "
January 8, 1997: Secretary General Kofi Annan, in a major inaugural meeting with UN staff, takes a surprisingly strong stand against further budget and staff cuts. He says that "arbitrary staff cuts that weaken essential capabilities" do not improve the organization. He also says: "It is not reform, when for lack of funds we have to turn our backs on massacres and suffering and the collapse of civil society." He goes on to say that the United Nations "cannot be expected to more forward if it is dragged down by unpaid dues." And he says that some criticism leveled at the organization is "misinformation and disinformation." -- On the same day, in Washington, the Senate Foreign Relations Committee holds confirmation hearings on Secretary of State designate Madeleine Albright. During the hearings, she states that the US should pay its UN dues because "we believe in the rule of law and we believe that contracts are sacred" and she admits that other member states are "irritated" by the US refusal to pay. She argues that the "world's richest, strongest, most respected nation" should not be "also the largest debtor to the United Nations and the international financial institutions." Sen. Jesse Helms, speaking at the hearing, comments that Congress will not be willing to "pay that big check" unless the UN proceeds with further reforms, but Albright says that "reforms that have taken place are a substantial step forward." The hearing seems to signal that the Clinton administration is taking a stronger position on UN funding and on general funding for the international affairs budget that has been severely cut in recent years.
January 13, 1997: A joint task force of the Washington-based Brookings Institution and the New York-based Council on Foreign Relations issues a call for substantially higher funding of the United States international affairs budget in the upcoming fiscal year. The report by the two prestigious policy study organizations recommends a 16 percent increase for the US fiscal year 1998 -- an increase that would ease the downward pressure on the UN budget and allow for repayment of back dues.
January 15, 1997: Outgoing Secretary of State Warren Christopher gives a "farewell" speech at Harvard University which emphasizes the need to increase the international affairs budget, which has been cut by 50% in real terms since 1985. "Talk is cheap; leadership certainly is not," says Christopher. On the matter of US payments to the UN, Christopher says "It's time to pay our dues and our debts." This is some of the strongest talk on this subject to come from the Clinton administration. On the substantive side, it is reliably reported in Washington that the Clinton budget includes increased monies for the UN and funds to pay off arrears as well.
January 18, 1997: SG Annan names Canadian Maurice Strong as "Executive Coordinator of UN Reform." Strong held a similar portfolio unofficially under SG Boutros Ghali, beginning in September 1996. Known for his views that the UN Secretariat can be radically downsized, Strong is seen by many observers as a person who may engineer drastic changes of the kind that Senator Jesse Helms and other conservatives have been calling for.
January 21, 1997: On the day before Secretary General Kofi Annan's trip to Washington, the authoritative Washington Post runs a story that the Clinton administration will include payment of $1 billion in UN arrears in its upcoming budget proposals to Congress.
January 22, 1997: Secretary General Kofi Annan begins an official visit to Washington. He meets with various legislators on Capitol Hill, who urge more budget-cutting and hint that arrears may be paid. He attends a reception given by Vice-President Al Gore at which Gore says that the new SG is leading a "reincarnation" of the UN and says that the administration feels a "depth of commitment" to pay the arrears. The SG says jokingly that the UN does not own any black helicopters and that it has no designs on US territory.
January 23, 1997: Madeleine Albright is sworn in as US Secretary of State and in her statement she makes reference to the UN. She points out that Annan is the first official visitor to be received by Pres. Clinton after his inaugural and "that is a very good sign of the support that the United States is going to give to the United Nations." Newspapers report that she is appointing to the number three post at the State Department Thomas Pickering, her predecessor as US delegate to the UN. -- SG Annan meets with the editors of the Washington Post and promises far-reaching reform, including focusing the UN's work on a few areas where it has "comparative advantage." He says he will "clean house." Later, the SG meet Pres. Clinton. After about a half-hour session, Clinton makes a statement to the press, which emphasizes "reform." He says, "We talked about the need to put the UN back on a sound financial footing. That will demand far-reaching reform, the elimination of waste, streamlining of staff, wiping out overlap and abuse. The Secretary General and I agree that the UN must pursue this course of reform." Clinton also speaks of an agreement with Congress to "pay our arrears." Annan in his statement refers to the need for a "reformed United Nations that is effective, efficient, leaner and relevant to tasks that member States want to set up for us." In the afternoon, at 3:15 PM, the SG meets for two hours with Senator Jesse Helms, Chairman of the Senate Foreign Relations Committee. Helms says, "So, Mr. Annan, the ball is in your court. You have an enormous challenge ahead of you: to demonstrate that the UN is receptive to reform and to show it can be downsized, brought under control and harnessed to contribute to the security of the 21st century." After the meeting, it is announced that Helms' staff will go to New York to meet with UN staff to discuss projected reforms. The press reports that Sen. Helms is discussing reform "benchmarks" that will be used by Congress to condition further UN payments, though these benchmarks have not yet been specified.
January 24, 1997: SG Annan concludes his stay in Washington with meeting with Newt Gingrich, Speaker of the House of Representatives and Trent Lott, Senate Majority Leader. The press reports that Annan has made a good impression, but that Washington may not yet be prepared to pay up. The trip is extensively reported by the world media.
January 27, 1997: UN Environmental Program head Elizabeth Dowdeswell, speaking at the opening of the UNEP Governing Council in Nairobi, laments that "Member States have reduced their overall contributions to UNEP, while at the same time imposing ever-increasing responsibilities on UNEP . . . Only 37 percent of the member states of UNEP contributed to the Environment Fund in 1996."
January 29, 1997: At hearings in the US Senate on Bill Richardson as nominee to replace Madeleine Albright as US delegate to the UN, Republican senators express anger at rumors that President Clinton's new budget would include sums to repay the US debt to the UN. Sen. Helms states that reform "benchmarks" must be made part of any deal. Richardson, in his testimony, refers to the need for repayment of the US debt: "Our efforts are increasingly hampered by international resentment over our arrears," he says. "As the UN cleans its house, we must do our part." He also says: "The whole UN system must take a page from the business community's handbook and learn to domoree with less."
January 31, 1997: At the end of the month in which full payment of regular budget payments are due from all member states, the UN has received full payments from only 28 out of 185 members. Altogether, the UN is owed $3.191 billion, of which $1.598 billion is due from the United States (50%). The UN owes $1.2 billion to member states for troops and equipment in peacekeeping operations. See further commentary under "Latest News" -- At the World Economic Forum in Davos, an annual gathering of business leaders from around the globe, Secretary General Annan pleads for a "new partnership" to increase development assistance to the world's poorest nations, arguing that private investment passes by most of the poorest countries.
February 4, 1997: Pres. Clinton raises the issue of UN dues in his State of the Union address to Congress. He says: "We must . . . pay our debts and dues to international financial institutions like the World Bank, and to a reforming Untied Nations. Every dollar we devote to preventing conflicts, to promoting democracy, to stopping the spread of disease and starvation brings a sure return in security and savings. . . If America is to continue to lead the world, we here who lead America simply must find the will to pay our way."
February 6, 1997: The Clinton administration submits its Fiscal Year 1998 budget to Congress. Confirming earlier reports, it includes a proposal for repaying $1.021 billion in UN arrears -- $100 million in FY1998 and the balance in FY1999 if criteria for reform are met. A State Department summary notes "Without a firm commitment to meet our past obligations, other countries are strongly resistant to our reform efforts."
February 7, 1997: Dr. Gordon Adams of the Office of Management and Budget says in a briefing to NGOs that the administration is seeking long-term reduction of international organization budgets as part of the current negotiations over payment of arrears.
February 9, 1997: The New York Times runs a lead news story in its Sunday editions criticizing Secretary General Kofi Annan for moving too slowly and cautiously to reform the UN. The story, written in a surprisingly harsh and almost contemptuous style, calls the new SG "ever so nice, but ... also ever so cautious." In light of the fact that the new Secretary General was the US candidate and has only been in office for six weeks, the article surprises many observers. The article takes the SG to task for his consensus-building style and says that his cautious approach is due to thirty years of work within the UN Secretariat. The main message conveyed is that UN budgets must be further cut, agencies consolidated, and action taken soon, if Washington is to be appeased.
February 12, 1997: The New York Times continues with its campaign of pressure on Secretary General Annan. In a lead editorial entitled "Kofi Annan's Cautious Style," the paper urges the SG to "take some early actions that signal his intention to change the UN" and says without very much subtlety that "Members could use a signal not to confuse his patience with weakness."
February 11, 1997: The US Senate votes unanimously to confirm the appointment of Bill Richardson as US delegate to the UN. During the debate prior to the vote, Sen. Helms says that Congress would pay the UN arrears "only if payments are tied to concrete reforms" and Sen. Rod Grams calls the UN "an unbelievably complex and bureaucratic organization which is crying out for an overhaul." But other voices are heard Sen. Joseph Biden says: "We cannot expect others to fulfill their international obligations if we do not fulfill our own." -- On the same day, Secretary of State Madeleine Albright testifies to the House International Relations Committee, defending (among other things) the Clinton administration's spending proposals on UN dues and arrears.
February 13, 1997: Secretary General Kofi Annan gives his first news conference, largely devoted to a response to critics in Washington who claim he has been too slow to reform and downsize the UN. He pledges to make changes on his own authority "without waiting for government approval," moving towards a "leaner, more efficient and effective United Nations." But he goes on to affirm that no country has the right to impose conditions on paying its dues. He says that "the United States itself is trying to move out of that illegal position and pay its dues. I think the Administration is committed and is going to fight for it."
February 14, 1997: In an article reporting on the SG's news conference, the New York Times reports that Princeton Lyman, Acting Assistant Secretary of State responsible for the United Nations, is "stepping up pressure for rapid change" and quotes him as saying that Annan "should start making changes." The article goes on to quote Lyman that the administration's "overall aim this year" is to "get th budgets of all United Nations bodies and America's share of them reduced."
February 15, 1997: The Economist, Britain's most prestigious business weekly, runs a leader article on the UN which says that the UN can serve an important role, but "Mr. Annan needs to intensify the deregulation and streamlining of his own secretariat and its agencies."
February 18, 1997: A delegation of aides from the US Congress visits the UN as part of an initiative by Sen. Jesse Helms to establish "benchmarks" on UN reform. The discussions are seen by well-informed observers as pro forma, and some think that Helms may no longer have sufficient political backing to impose "benchmarks." In a meeting with General Assembly President Razali Ismail, the delegation is told that if the US pays up, a deal can be made to reduce the US assessment from 25 percent to 20 percent. Razali is said to plan a trip to Washington on 24 February.
February 25, 1997: In a speech to the UN General Assembly, U.S. Ambassador Bill Richardson suggests enlarging the membership of the Advisory Committee on Administrative and Budgetary Questions, or ACABQ, the 16-member panel where the US lost its seat last November. The panel plays a key role in reviewing the U.N.'s annual budget. Speaking on the subject of UN reform, Richardson said that ``expanding the ACABQ membership bears our consideration' He added: ``We will be consulting with colleagues on this point'
February 26, 1997: General Assembly President Razali Ismail travels to Washington to speak to the Council on Foreign Relations. He also has private meetings with high-ranking members of Congress. According to his spokeswoman, Razali's intention is "not to negotiate, but to convey the feelings" of the General Assembly and to "explain the intergovernmental process." Reliable sources say that his message is tough: if Congress wants to reduce the US rate of assessments to 20%, they must first pay up the large arrears.
March 2, 1997: The New York Times runs a story by correspondent Paul Lewis revealing that Secretary General Kofi Annan is working on a plan to further cut the UN budget and reduce staffing levels. Annan is said to be planning to cut 500 posts "from a work force that has already shrunk from 12,000 to 9,000 since 1985," a move the Times describes as "bureaucratic pruning." The article states that the Secretary General has already moved to "eliminate red tape and duplication" but it points out that many proposed economies will "be judged excessive by other members, many of whom deeply resent the United States' attempt to put conditions on payments it has the legal obligation to make."
March 3, 1997: GA President Razali again travels to Washington, this time to give a lecture at the American University. On this trip also, he meets with members of Congress. According to reliable sources, on his two trips, he met Sen. Joseph Biden (D-DE), Sen. Ted Stevens (R-AK), Sen. Judd Gregg (R-NH), Sen. Rod Grams (R-MN), Rep. Lee Hamilton (D-IN), and Rep. Benjamin Gilmin (R-NY). All have important committee assignments relating to UN funding.
March 17, 1997: Bowing to intense pressure from Washington, Secretary General Annan announces major new budget cuts, staff reductions and reorganization of the Secretariat. The budget cuts are said to total $100 million per year or nearly 10%, while staff cuts of about 1,000 posts will slash the Secretariat's personnel to about 8,500 posts, about two-thirds of staffing a decade earlier.
March 18, 1997: The New York Times in a lead editorial welcomes the announced cuts as "a good start on reform," commenting that reform is needed since the UN "is a body that has long served as a home for mediocre bureaucrats."
March 21, 1997: The New York Times runs a letter from Dietrich Fischer putting the recently announced UN staff cuts in an unusual perspective. "Why should the C.I.A. and its affiliated agencies, whose job is to gather intelligence for one country, have nearly 10 times more employees than the United Nations Secretariat?" the writer asks.
March 27, 1997: The UN's Fifth Committee, unable to reach agreement on a new scale of assessments for the 1998-99 budget biennium, decided to postpone its decision until later in the year, asking the Committee on Contributions to model the eight different proposals now on the table. There are many contentious issues, but the most intractible is the United States request that its assessment be reduced to 20%. Most delegations have taken the position that this request is not negotiable until the United States has paid off its large arrears. The Committee also postponed a decision on the divisive issue of "loaned staff." The proportion of loaned staff has been growing in recent years and the G-77 countries are opposed to the trend, which erodes the international civil service and is seen to increase the leverage of rich countries that do the loaning.
April 11, 1997: The Washington Weekly Review, a major source on UN funding issues, notes that the United States is currently $254 million in arrears to the UN's specialized agencies, notably the World Health Organization, the International Labour Organization, and the Food and Agriculture Organization. WWR also reports that the United States is seeking budget reductions of 5% in the budgets of all the UN's specialized agencies for the 1998-99 biennium.
Mid-April 1997: According to reliable reports in Washington, Sen. Jesse Helms is going ahead with plans to tie US repayment of debts to the UN to a series of "benchmarks" that will put further pressure on the US-UN relationship. Among the benchmark items are said to be: certification that the UN is not "asserting sovereignty over any member state," reduction of the US assessment to 20%, full reimbursement to the US of costs incurred in peacekeeping operations, consolidation by the UN of several development and humanitarian programs, US to make only "voluntary" contributions to ILO, WHO and FAO. Further problems arise over the amount the US actually owes. After full payment of the FY1997 appropriations, the UN says the US would owe $950 million, the Clinton administration says the US owes only $712 million, while some members of Congress say that only $580 million is owed. Some members of Congress claim that the UN actually owes the United States money -- as much as $3.5 billion -- for US spending on UN-sanctioned military operations.
April 21, 1997: The UN issues a report, predicting it will save $100 million in operating costs in 1997 by trimming wasteful and inefficient spending in what are identified as 400 projects. Under Secretary General Joseph Connor, in introducing the report, mentions various cost-saving initiatives such as fewer documents, using cheaper methods to buy foreign currency, simpler purchasing, cheaper methods of chartering ships for peacekeepers and more. For more on this report.
Mid-May 1997: The US State Department submitted certifications to Congress that would allow a remaining US contribution of $62.7 million for the UN regular budget and $50 million for the UN peacekeeping budget. The administration must certify that the UN has met certain conditions imposed by Congress.
May 16, 1997: Rep. Benjamin Gilman, Republican Congressman from New York state circulates a draft amendment to appropriations legislation that would impose "stringent annual reform benchmarks" to payment of back dues owed the UN, including "stringent reimbursement criteria for all future UN peacekeeping operations" that would require the UN to reimburse the Pentagon for airlift and other services that in the past have been provided at no cost. Gilman also affirmed that US arrears of $69 million to UNIDO would not be paid.
May 21, 1997: The Clinton administration's proposal to pay $1 billion in dues owed to the UN runs aground in Congress and the sum is deleted from the appropriations bill in the House of Representatives. The Republican majority will agree only to pay back dues over a five year period, provided a number of benchmarks are met, so negotiations on legislation for the payback must continue and are likely to reflect Republican demands.
June 4, 1997: The US House of Represents votes on an amendment to the State Department budget authorization bill that would withdraw the United States from the UN. The amendment, offered by Rep. Ron Paul (R-Texas), is defeated by a vote of 369 to 54. Observers are surprised that the amendment actually garnered as many votes as it did.
June 12, 1997: The Senate Foreign Relations Committee defeats a legislative amendment offered by Sen. Richard Lugar of Indiana that would have permitted unconditional payment of $819 million in US arrears in equal installments over two years. The Committee then approved the Helms-Biden agreement for payment of UN arrears tied to progress on benchmarks for UN reform.
June 17, 1997: The full US Senate defeats the Lugar amendment by a vote of 25 to 73 and passes the version of the bill with the Biden-Helms amendment by a vote of 90 to 5. The approved legislation adds new conditions to US payments to the regular annual payments for the UN's regular and peacekeeping budgets and it imposes over three dozen conditions for repayment of back dues. See more detailed GPF report.
