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### Viewing cable 08UNVIEVIENNA666, UNODC MAJOR DONORS MEETING TACKLES UNGASS REVIEW, PIRACY

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08UNVIEVIENNA666 | 2008-12-22 13:31 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | UNVIE

`

    VZCZCXYZ0017
    RR RUEHWEB

    DE RUEHUNV #0666/01 3571331
    ZNR UUUUU ZZH
    R 221331Z DEC 08
    FM USMISSION UNVIE VIENNA
    TO RUEHC/SECSTATE WASHDC 8864
    INFO RUCNDT/USMISSION USUN NEW YORK 1427

` `

    UNCLAS UNVIE VIENNA 000666

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: SNAR KCRM UN PGOV AORC AF SW SZ GM FR CA IN IT
    NO, PK, TU, UK, EWWT, MARSEC

    SUBJECT:  UNODC MAJOR DONORS MEETING TACKLES UNGASS REVIEW, PIRACY
    AND FUTURE FUNDING CHALLENGES

    REF:  A. UNVIE 00579 B.UNVIE 000659
    --------
    SUMMARY:
    --------
    ¶1.  (SBU)INL A/S David T. Johnson led the USDEL to the UN Office on
    Drugs and Crime (UNODC) Major Donors meeting, December 5.
    Discussion with the other 20 donor countries included (1) a proposal
    for UNODC action to combat piracy off the coast of Somalia, (2) the
    funding situation of UNODC, and (3) a review of progress achieved
    since the 1998 UN General Assembly Special Session on Narcotic Drugs
    (UNGASS).  Also discussed were the status of the Independent
    Evaluation Unit (IEU) and the UNODC's partnership with INTERPOL to
    establish an anti-corruption training academy.  A/S Johnson met with
    UNODC Executive Director Antonio Maria Costa, who committed to
    ensuring the U.S. is recognized for contributions to UNODC projects
    in Central Asia.  At a dinner hosted by UNVIE Ambassador Greg
    Schulte, A/S Johnson discussed the counternarcotics situation in
    Afghanistan and underscored U.S. opposition to use of the phrase
    "harm reduction" in UNGASS review documents.  END SUMMARY.

    --------------------------------------
    Major Donors: The "Watch Dog" of UNODC
    --------------------------------------
    ¶2.  (SBU)The Major Donor countries reinstituted the practice of
    holding a "closed" session, without UNODC staff, to coordinate
    messages and to discuss the future role of the Major Donors group.
    A/S Johnson used the opportunity to emphasize the importance of
    continuing Major Donor coordination.  He emphasized the need to
    schedule meetings close to other UN events, in order to ensure
    participation from capitals.  Other donors, notably Sweden and
    Norway, questioned the ability of UNODC to operate without
    sufficient and predictable (read, increased) General Purpose Funds
    (GPF, i.e., funds without earmarks), which finance administrative
    and backstopping support for implementation of UNODC technical
    assistance projects.  Germany and USDEL expressed skepticism,
    highlighting the practical difficulties in raising contributions to
    the GPF.  A/S Johnson noted that government organizations, including
    his own, are often funded by project earmarks and must use project
    support costs to finance their operations.  UNODC charges 13 percent
    in overhead to each project contribution (with the exception of some
    donors, notably the European Commission, which has secured an
    UN-wide rate of seven percent.)  These funds must be better utilized
    in order to supplement the GPF.  The UK closed the session by
    emphasizing the potential leverage that Major Donors could have in
    guiding UNODC, calling the group a "watch dog" of sorts.  The UK
    will refine its non-paper on the future of Major Donors and also
    draft a work program for the 2009 calendar year to be shared with
    other donors.

    -------------------------
    Funding, Funding, Funding
    -------------------------
    ¶3.  (SBU)During the Major Donors session, UNODC staff at all levels,
    including Executive Director Costa, painted a dire picture of
    UNODC's funding situation.  There is a lack of GPF, while Special
    Purpose Funds (SPF, i.e., earmarked contributions) continued on an
    upward trajectory.  In Costa's view, UNODC would soon either need to
    start rejecting SPF or need to secure an increase in the UN Regular
    Budget, to provide adequate oversight of technical assistance
    activities.  UNODC specifically pointed to the 1.4 million dollar
    shortfall of the GPF for its anti-crime programs and noted that
    unless the imbalance was corrected the organization would be forced
    to cover the shortfall with the GPF intended for drug control
    programs.  UNODC also sought to provide transparency to the use of
    its GPF, by outlining the areas for which these funds were used,
    including internal evaluation, research and policy analysis,
    salaries of the Field Office Representatives and its online
    financial database (ProFI).  UNODC submitted a request for an
    additional 16 posts and 2.2 million dollars from the UN Regular
    Budget for the biennium 2010-2011, in order to cover its staffing
    and financial needs.

    ¶4.  (SBU)Donors emphasized that other avenues could be found to
    relieve the GPF problems.  Sweden and France pointed to the
    "thematic programs" under development by UNODC, as a way to allow
    donors to "soft earmark" funding.  UNODC Director for the Division
    of Operations, Francis Maertens, identified future regional and
    thematic programs to overcome "projectitis" and focus strategic
    interventions in the areas of corruption, money laundering, human
    trafficking, migrant smuggling, trafficking of firearms, criminal
    justice reform, as well as health and human development.  Finland,
    supported by the United States, sounded an alarm over the title of
    the thematic program on "health and human development," in which the
    themes of drug demand reduction and HIV/AIDS would be examined.  The
    title obscured the role of UNODC and its mandate to tackle these
    issues.  A/S Johnson further reiterated the U.S. view that earmarked
    contributions should not be crowded out in favor of non-earmarked or
    loosely earmarked funds.  Rather, the current financial situation
    should drive UNODC, its managers and its donors to take a more

    entrepreneurial approach, with overhead costs tied to specific
    projects.  Germany reiterated U.S. concerns, noting that its
    government would not be increasing its contribution to the GPF in
    the immediate term.  Italy confirmed that it had decreased its
    annual GPF contribution by more than 1 million dollars.  Only the
    Netherlands announced an impending new contribution to the GPF.
    Questions also remained regarding the interplay between regional and
    thematic programs.  UNODC intends to follow up with donors.

    -----------------------------------
    UNGASS Review: Compromise Necessary
    -----------------------------------
    ¶5.  (SBU)During a UK-hosted lunch, Sandeep Chawla, Director for the
    Division of Policy Analysis, relayed the concerns held by the
    chairman of the UN Commission on Narcotic Drugs (CND)  - that states
    had impeded progress on the negotiation of the documents (the Annex
    and Political Declaration) to be adopted at the high-level CND in
    March 2009.  Specifically, he pointed to delegates' insistence on
    re-opening conclusions agreed to by the UNGASS experts groups
    (Reftel A) and the insistence by some delegations (notably the EU)
    on inserting the phrase "harm reduction" into the texts.  Costa
    further warned of an "empty" document if progress could not be made.

    ¶6.  (SBU)Switzerland, Germany and France followed UNODC's statements
    by giving an optimistic assessment and stressing that the UNGASS
    review presented an opportunity to highlight "harm reduction" and
    human rights in the outcome documents.  A/S Johnson made clear the
    U.S. strongly opposed mentioning "harm reduction" in the text of the
    UNGASS documents.  He further stressed that EU introduction of "harm
    reduction" policies - concepts not agreed to at the expert groups -
    after the November 4 deadline set by the CND Chairperson for the
    submission of new ideas into the draft Annex document, bordered on
    bad faith.  All other Member States abided by this deadline.
    Furthermore, A/S Johnson warned EU Member States not to assume that
    the new U.S. administration would reverse course on "harm reduction"
    in the run up to the March 2009 CND.  He said the EU should end
    their attempts to slow roll the negotiations.  When asked, UNODC
    indicated that the Namibian Ambassador would collate comments on the
    Political Declaration by December 15 and circulate a draft by early
    January.  EU Member States present expressed displeasure and
    insisted that the draft Political Declaration must be issued by late
    December.

    ¶7.  (SBU)On the margins of the Major Donors meeting, the UK
    approached USDEL to note increasing tension on the issue of "harm
    reduction" and to offer to meet with UNVIE to discuss further.
    Switzerland also approached USDEL, to question the purported U.S.
    lack of support for demand reduction.  A/S Johnson reiterated that
    the U.S. very much supports demand reduction.  He explained that we
    object to the use of the term "harm reduction," because it
    encompasses objectionable policies such as heroin maintenance and
    drug injection rooms.

    -------------------------------
    UNODC Proposal to Combat Piracy
    -------------------------------
    ¶8.  (SBU)The UNODC formally released to Major Donors its draft
    proposal to combat piracy off of the Somali Coast by facilitating
    arrests at sea by teams of "ship-riders" from nearby littoral
    states, the legal transfer of suspects, and their investigation and
    prosecution.  UNODC also shared the proposal with the Permanent
    Missions of Egypt, Kenya and Yemen, who are included as possible
    recipients of assistance.  The proposal could not be passed to
    Tanzania because Tanzania does not have permanent representation in
    Vienna.  UNODC staff asserted they could have "boots on the ground"
    in two weeks and tangible progress in six weeks thereafter.  Major
    Donors, including the United States, expressed general support for
    the UNODC initiative but there were no immediate funding
    commitments.  The UNODC proposed program would provide countries in
    the region with the tools necessary to utilize the UN Convention
    against Transnational Organized Crime to prosecute the pirates, who
    constitute an organized crime group as defined by the treaty (Reftel
    B).

    -------------------------------
    The Independent Evaluation Unit
    and the Anti-Corruption Academy
    -------------------------------
    ¶9.  (SBU)A representative of the Independent Evaluation Unit (IEU)
    provided Major Donors with an overview of the IEU's accomplishments
    in 2008.  This included a thematic evaluation of UNODC's
    terrorism-related work and its program in Afghanistan.  Voluntary
    contributions to the IEU fell in 2008 to half their 2007 levels.
    These financial constraints caused the IEU to delay staff recruiting
    and to re-evaluate their 2009 work plan. (Note: UNODC requested UN
    Regular Budget funding for IEU staff positions for the biennium
    2010-2011. End Note.)  This tentative work plan includes an
    evaluation of UNODC's anti-corruption activities, its Colombia

    illicit crop monitoring survey and an annual evaluation report.
    Donors agreed that evaluations play a vital role in a well
    functioning organization.  Japan urged that the IEU report directly
    to the Executive Director, to avoid exertion of undue influence by
    branches of the organization.

    ¶10.  (SBU)UNODC provided a brief overview of its recent agreement
    with INTERPOL and the Austrian Government to establish the
    International Anti-Corruption Academy.  This body would be the first
    institution of higher learning dedicated to the fight against
    corruption within the framework of the UN Convention against
    Corruption.  UNODC said the curriculum will be administered by full
    time staff, targeting law enforcement, judicial employees, the
    private sector and non-governmental organizations.  UNODC is
    currently approaching donors for the half million dollars in
    required start-up costs.

    -------------------------------------
    Meeting with Executive Director Costa
    -------------------------------------
    ¶11.  (SBU)A/S Johnson and UNVIE Ambassador Schulte met with UNODC
    Executive Director Antonio Costa to compare notes in advance of the
    Major Donors meeting.  A/S Johnson showcased the 2008 U.S.
    contribution to UNODC, which grew to 26 million dollars.  In the
    U.S. view, this voluntary contribution, which includes a little over
    USD 1 million to the GPF, represented a serious commitment to the
    organization.  A/S Johnson stressed the importance of acknowledging
    donors for their contributions, citing a trend by UNODC's operations
    in Central Asia to fail to recognize U.S. funding support.  UNVIE
    Ambassador Schulte added that UNODC must also provide good
    visibility to its projects with U.S. embassies in the region due to
    the increasingly decentralized nature of bilateral assistance
    efforts.   Costa apologized if the U.S. did not receive the
    recognition it deserved, noting that the EU was particularly
    sensitive to the same issue; he said that he would address this.

    ¶12.  (SBU)Costa and his staff asked A/S Johnson and Ambassador
    Schulte for their impressions on whether the new administration
    would reverse previous U.S. opposition to "harm reduction."  A/S
    Johnson reiterated the U.S. concern with regard to the EU push for
    the term's insertion in the UNGASS documents.  He further surmised
    that in the short-term no one should expect the U.S. to support the
    so-called harm reduction approach, given the many practices the
    phrase subsumes.  Costa opined that it would be good news if the
    U.S. does not make a fundamental policy shift on drug control.

    -----------------------------------
    Diverse Group Discusses Afghanistan
     and UNGASS at UNVIE-hosted Dinner
    -----------------------------------

    ¶13.  (SBU)UNVIE Ambassador Schulte hosted a dinner on December 4 in
    honor of A/S Johnson, inviting a diverse array of participants:
    UNODC, Canada, Germany, India, Italy, Norway, Pakistan, Sweden,
    Turkey and the United Kingdom.  The attendees undertook a roundtable
    discussion on their views with regard to the narcotics situation in
    Afghanistan.  A/S Johnson stressed the importance of coupling
    incentives and disincentives as an effective means to sustain the
    reductions in opium poppy cultivation.  To this end, Ambassador
    Schulte cited UNODC reporting, which noted that fear of eradication
    influenced farmers' decision-making.  With regard to NATO
    involvement in counternarcotics efforts in Afghanistan, the German
    representative emphatically stated that the direct involvement of
    German troops was "not possible."  A/S Johnson indicated that NATO
    engagement did not have to entail use of force but could involve
    supporting public information efforts or the disbursement of
    benefits under the Good Performers Initiative (GPI).  To this end,
    he encouraged those governments at the table to provide funding to
    the GPI.  Sweden made a commitment to take this message back to its
    capital.

    ¶14.  (SBU)With regard to the UNGASS review process, A/S Johnson
    raised the disagreement between some "close allies" and partners
    over the phrase "harm reduction."  He expressed concern that
    relationships with the negotiating climate could be negatively
    affected at the political level if Member States did not find a
    mutually agreeable way forward.  Canada's Charge, Terry Wood, agreed
    that "harm reduction" posed a problem for his country and pointed to
    the compromise language agreed to in the 2008 UN General Assembly
    Resolution on drugs as a possible way forward.  The UK Ambassador
    Simon Smith noted that, although a solution is possible, the UK "did
    not want to move backwards."  Germany and Norway concurred with the
    UK statement.  Sweden's Ambassador Lundburg pointed to the fact that
    Sweden also does not support "harm reduction" but has managed to
    "deal" with it in the EU context.  Ambassador Lundburg further
    mentioned that there are some EU and Latin American countries that
    would like to modify the 1961 Single Convention on Narcotic Drugs
    and emphasized that Sweden certainly does not want to "open up that
    Pandora's box."

    -------
    Comment
    -------
    ¶15.  (SBU)The Major Donors meeting proved to be an important venue
    for raising the political stakes with regard to the negotiation of
    the documents to be adopted at the high-level session of the CND in
    ¶2009.  A/S Johnson used the occasion to follow up on his discussions
    with the UK in Washington and the European Commission in Brussels at
    the recent U.S.-EU Drugs Troika.  Some EU delegates, notably the UK,
    seem to be prepared to begin discussions, if at a suitably high
    level, on compromise language to replace the phrase "harm
    reduction."  Germany appears more reluctant to do so.  Other
    countries, notably Canada, Pakistan and Namibia, provided strong
    support for the United States on this issue.  USDEL heard that in a
    private meeting with Costa, the Ambassador from Namibia went so far
    as to call it an "EU problem", rather than a "US problem," since
    many countries disagreed with the EU position.

    ¶16.  (SBU)Finally, from the interventions of other donor countries,
    it does not appear that UNODC's funding structure will undergo any
    fundamental shifts in the near term.  The meeting highlighted
    UNODC's increasing frustration with relying heavily on voluntary
    contributions and with what they perceive as donor-driven priorities
    for the organization.  Nonetheless, many countries, including the
    United States, remained skeptical about the feasibility of providing
    a sizeable increase in non-earmarked contributions.  The thematic
    and regional programs afford perhaps the best approach to meet
    UNODC's desire for predictable funding.  UNVIE will work closely
    with the Department to provide feedback to UNODC on these programs
    as they are developed.

    ¶17.  (SBU)Assistant Secretary Johnson has cleared on this cable.

    PYATT

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