CP/RES. 781 (1257/00)

DRAFT GUIDELINES FOR OPERATING THE FUND FOR PEACE:
PEACEFUL SETTLEMENT OF TERRITORIAL DISPUTES

        THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES,

        HAVING SEEN resolution AG/RES. 1756 (XXX-O/00) "Fund for Peace: Peaceful Settlement of Territorial Disputes;"

CONSIDERING:

        That through the above-mentioned resolution, AG/RES. 1756 (XXX-O/00), the General Assembly established a permanent specific fund "to provide member states of the Organization that so request with financial resources to assist with defraying the costs of proceedings previously agreed to by the parties for the peaceful resolution of territorial disputes among member states"; and

        That the same resolution instructed the Permanent Council to prepare and adopt guidelines for the operation of the fund,

RESOLVES:

        To adopt the following guidelines for operating the Fund for Peace: Peaceful Settlement of Territorial Disputes:

ARTICLE 1 - PURPOSE

1.1. The purpose of the Fund for Peace (hereafter referred to as "the Fund"), created by the General Assembly of the Organization of American States by means of resolution AG/RES. 1756 (XXX-O/00), is to provide member states of the Organization that so request with financial resources to assist with defraying the costs of proceedings previously agreed to by the parties for the peaceful resolution of territorial disputes among member states, thereby contributing to strengthening peace and security in the Hemisphere.

ARTICLE 2 - COMPOSITION

2.1. The Fund will consist of a General Fund and subfunds intended to help finance peaceful settlement of specific disputes.

ARTICLE 3 - RESOURCES

3.1. The Fund will consist of:

a.     Voluntary contributions of member states of the Organization of American States (hereafter the OAS), permanent observer states to the OAS, other states, international financial agencies, national and international organizations, and other entities and individuals; and,

b.     Accrued interest and other investment revenues earned by the Fund.

ARTICLE 4 - ALLOCATION

4.1. The Secretary General will examine each request for allocation of resources under the General Fund and the subfunds. The Secretary General, in consultation with the States involved in the dispute, will take a decision consistent with the purpose and goal of the General Fund or the subfund, in accordance with the purposes and principles established in the Charter of the Organization, and consistent with these guidelines, and where applicable with the standards contained in the resolutions or agreements constituting the subfunds. The Secretary General will inform the Permanent Council of his decisions in this respect, as quickly as possible.

ARTICLE 5 - ADMINISTRATION AND FINANCIAL MANAGEMENT

5.1. The Secretary General will be responsible for administration of the Fund and for implementing decisions on the allocation of resources.

5.2. The Secretary General will also:

a.     Accept contributions consistent with the purpose and goal of the Fund and in accordance with the purposes and principles established in the Charter of the Organization;

b.     negotiate with donors, where appropriate, the terms and conditions of their donations, consistent with the purpose of the Fund and with the objectives and purposes of the Organization;

c.     encourage the raising and mobilization of resources for the Fund and report regularly to the Permanent Council on the results of these efforts;

d.     pay the administrative expenses of the Fund, from the resources of the Fund;

e.     maintain separate financial records for the General Fund and each of the specific subfunds.

f.     present annual reports to the Permanent Council on activities of the Fund and on contributions received during the year, as well as on its assets and its financial situation.

5.3. The accounts of the Fund will be subject to the annual audit conducted by the General Secretariat and the results of this audit will be presented in the annual report of the Board of External Auditors.

5.4. a. Except where these guidelines provide to the contrary, the General Fund will be administered in accordance with Articles 69 to 77 of the General Standards to Govern the Operations of the General Secretariat and other provisions for the administration of resources entrusted to the OAS General Secretariat.

b.     The subfunds will be administered in accordance with the rules contained in the resolutions or agreements constituting those subfunds and in accordance with Articles 69 to 77 of the General Standards to Govern the Operations of the General Secretariat and other provisions for the administration of resources entrusted to the OAS General Secretariat.

ARTICLE 6 - AMENDMENTS

6.1. These guidelines may be revoked or amended by the Permanent Council, at its own initiative or upon the recommendation of the Secretary General.

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