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October 12, 2000

OAS APPROVES 2001 BUDGET

The Organization of American States approved an $84 million budget for 2001, but renewed its concern that some member states had not paid up their quotas on time.

Honduran Ambassador Laura Núñez presided over the 27th Special Session of the General Assembly on Thursday, when member country delegations approved as well measures to improve the Organization's administration, structure, budget process and financial management.

Member states must urgently consider the future of the Organization's finances and budget, the Honduran diplomat urged, adding that "We cannot afford to, nor should we, continue this practice of ongoing cuts and adjustments. We must consolidate a Regular Fund to take care of all the mandates we receive."

Ambassador Claude Heller of Mexico, meantime, conceded that the budget approved could hardly cover the most critical work. He explained that "one important way to resolve the Organization's tight financial situation is for quotas to be paid in full, on time and without any conditions whatsoever--a binding obligation under the OAS Charter, as we all know."

Ambassador Heller said the mandate discussions must be concluded so as to determine which mandates are priority and which ones are not." He also cautioned "particular care be taken not to adopt new initiatives unless the basic problems referred to are dealt with."

For his part, Secretary General César Gaviria noted that while the OAS had worked very hard to mobilize resources, it was exhausting the prospect of depending on internal resources alone to meet its obligations. He added: "We will be seeking to resolve the problem of arrears by the big contributors."

Mr. Gaviria noted too that perhaps after next April's Summit of the Americas in Quebec City, Canada, discussion could begin on the Organization's quota situation. "It's very hard to imagine the OAS running an integration system as ambitious as we are proposing, with such limited resources."

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