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          Annan feuds with US envoy over UN budget reform
          (AFP)
          Updated: 2005-12-03 09:28

          UN chief Kofi Annan and US Ambassador John Bolton sparred over the stalled UN budget and the slow pace of planned reforms amid fears that the impasse could lead to a "financial crunch."

          "There has been suggestion by some governments, or a government, that we should not be given the two-year budget but maybe a temporary three-month or so budget," Annan told UN staff, referring to a Bolton proposal.


          UN chief Kofi Annan(R) and US Ambassador John Bolton meet at the UN Headquarters in New York City, August 2005. Annan and Bolton sparred over the stalled UN budget and the slow pace of planned reforms amid fears that the impasse could lead to a 'financial crunch'[AFP]

          "This doesn't work for the United Nations," said Annan, who cancelled an overseas trip this weekend to deal with the budget challenge.

          Last month, Bolton, the US envoy to the UN, suggested that the world body adopt an interim budget only for three or four months pending the resolution of a stalemate over management reforms which Washington strongly backs.

          But Annan Friday said not adopting a full budget for 2006-2007 would lead to "a financial crunch."

          "The business of the UN is not reform, the business of the UN is car
          rying on the mandates that the General Assembly, ECOSOC (the Economic and Social Council) and Security Council have given us, so that business must continue," the US secretary general noted.

          "We should not take any initiative that will not only risk the reform but also the ongoing activities, and that's one of the reasons I decided to stay here," he added.

          Annan called off a planned two-week Asian tour, including visits to China, South Korea, Japan and Vietnam, that was to have started this weekend.

          "We are at a critical stage of the budget process... So I decided that it was important for me to work with member states to ensure that we get the budget approved."

          Asked whether he was hopeful the two-year budget could be adopted by the end of the year, he replied: "Most of the member states understand the need for the budget."

          In response, Bolton told reporters Friday: "There has never been a suggestion that we would not approve a budget."
          Page: 12



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