U.N. OKs U.S. Dues Cuts in Finance Reform

After a yearlong battle and round-the-clock final negotiations, the General Assembly on Saturday adopted its first major overhaul of U.N. financing in more than two decades, cutting U.S. payments to the world body and shifting most of the shortfall to developing countries with improving economies.

Delegates from 189 countries--many eager to make it home for the holidays--wrapped up agreement on the reform package after South Korea dropped last-minute demands and the world body resolved issues raised by the Czech Republic, Britain, China and the U.S.

The General Assembly promptly approved the new system, passing resolutions for separate budgets for the United Nations’ day-to-day operations and its far-flung peacekeeping operations.

“Buried in this complex financial package is the first financial reform of the U.N. regular budget in 28 years and the first time ever for peacekeeping,” said Richard C. Holbrooke, the U.S. ambassador.

The last time the U.S. portion of the regular budget was reduced was in 1972, when the ambassador was George Bush, Holbrooke noted.

With a debt that the United Nations says totals $1.3 billion, the United States has been repeatedly criticized by other countries for not paying its dues. Congress, demanding reform of what some see as a bloated U.N. bureaucracy, has passed legislation requiring that the U.S. share of the budget be substantially reduced before a large chunk of the arrears can be paid.

On Friday, the U.S. won the battle to reduce its share of the U.N. budget after media tycoon Ted Turner offered a $34-million onetime gift. That donation would cover the shortfall the U.S. cuts create in the main U.N. budget in 2001.

Under the deal, the U.S. share of the administrative budget would drop from 25% to 22% as Congress required. Its share of the peacekeeping budget would be reduced from 31% to about 27%.

The possibility that the negotiations might fail led to a series of high-level calls around the globe.

Eighteen developing nations that have seen their economies grow in recent years, particularly South Korea, Singapore and Brazil, will have higher payments to help bridge the funding gap caused by the U.S. cuts.