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Statement by Ms. Yu Hong, First Secretary of the Permanent Mission of China to the UN, on the Financial Situation of the UN, at the Second Part of the Resumed Sixty-Third Session of the Fifth Committee of the General Assembly


May 22, 2009

Mr. Chairman,

At the outset, the Chinese delegation would like to thank Ms. Angela Kane, Under-Secretary General for Management, for her presentation of the financial situation of the UN. My delegation associates itself with the statement by the representative of the Sudan on behalf of the Group of 77 and China. In addition, I would like to make the following observations and proposals:

We are pleased to see that the financial situation of the organization has seen an improvement in 2008 over 2007. By the end of 2008, with the exception of the peace keeping assessment, arrears to the assessments for the regular budget, the budgets of the two tribunals and for the CMP decreased compared to the end of 2007. Most member states paid their contribution on time and in full and implemented in earnest their financial obligation under the UN Charter. The bulk of the arrears has been incurred by just a few member states.

We are of the view that healthy finance of the UN requires the joint effort of member states and the Secretariat in the following two aspects.

First, member states should faithfully fulfill their financial obligation to the United Nations by paying various assessments on time. Sound finance is the foundation for the UN to perform its functions. Without this foundation, strengthening the role of the UN would be just empty talk. If member states do not fully fulfill their due financial obligation and pay their assessed contributions on time, there will be an imbalance in the UN’s revenue and expenditure and a lack of resource guarantee for its various tasks. We have noticed that the global financial crisis that has engulfed the whole world since the latter half of last year has subjected all governments to enormous financial pressure. In spite of that, many member states still paid their various assessments in full and tried their best to honor their financial obligation. This is indeed highly commendable.

Secondly, formulation and disbursement of the UN budget should aim at high efficiency and effectiveness as well as greater transparency and accountability, with due consideration given to the capacity of member states. In recent years, there has been a drastic increase of UN expenditures, entailing a heavy financial burden for the member states. We believe that in formulating the UN budget, it is necessary to take into account the bearing capacity of member states, especially the developing member states, make full use of existing resources and take a practical approach in budget making. At the same time, it is necessary to strengthen budget management, strictly comply with financial discipline, make careful calculation and get the maximum value from every penny paid by member states.

Mr. Chairman,

Although China suffered severe natural disasters last year such as the snow storm at the beginning of the year and the devastating earthquake in Sichuan Province, it still took practical actions within the limit of its capabilities to help ensure a sound financial basis of the United Nations. China has overcome various difficulties and paid in full all its assessed contributions for 2008 including those for the regular budget and peace keeping budget in the amount of 360 million US dollars. For this year, China has paid the full amount of its 2009 assessment for the CMP and for the two tribunals. It has also paid more than a half of its assessment for the regular budget.

Mr. Chairman,

Our world is facing the dual challenge of peace and development and the international community’s expectation for the role of the UN is continuously on the rise. We are willing to work with others in our common endeavor to ensure a sound and healthy financial foundation of the UN so that it can accomplish the mission entrusted to it by the member states.

Thank you, Mr. Chairman.



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