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Tuesday, November 09, 1999, updated at 09:55(GMT+8)
World Debt Dispute Threatens US Role in UN, Paper Says

Even if Washington coughs up its back dues to the United Nations, the United States has seen "a precipitous loss of influence" in the United Nations, the US daily newspaper "Boston Globe" reported on November 8.

The senior UN officials predicted that the new US ambassador to the UN, Richard Holbrooke would face renewed hostility no matter what the outcome in US Congress on UN arrears over a US demand that it pay a smaller share of UN costs.

"Unless the back pay issue is resolved within seven weeks, the cost kick in quickly under UN by laws," the newspaper said. "For example, American companies may be barred from bidding on millions of dollars in UN contracts."

US vendors now take home 47 percent of UN purchases. The United States also would lose its vote in the General Assembly next year.

At present, the United States owes the United Nations some 1.7 billion US dollars in arrears. The U.S. reluctance to pay its back dues in full, in time and without any condition has long plunged the world body into serious financial crisis.

The United States has to pay at least 350 million US dollars by the end of the year in order to save the face without losing the voting right at the General Assembly next year.

The Article 19 of the UN Charter said, "A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years."

"The anxiety and anger toward the US Congress for holding up nearly 1.7 billion (US) dollars in arrears, according to UN calculations, became clear during meetings with UN Secretary-General Kofi Annan and 14 of his top deputies over two days last week," the newspaper said.

"It will be much worse, though, if Congress doesn't pay part of the dues by year's end," the newspaper quoted Holbrooke as saying. "If that happens, we will be just stumbling through the next year and a half" until the next US president takes office.

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