Work of UNRWA/Annual report – GA Fourth Cttee debate – Press release

CONTRIBUTION OF UNRWA TO KEEPING PALESTINIAN CULTURAL IDENTITY ALIVE,

AMONG ISSUES DISCUSSED IN FOURTH COMMITTEE DEBATE

Agency's Commissioner-General Also Calls

Attention to UNRWA's Declining Income and Increasing Needs

  Among the achievements of the United Nations  Relief and Works Agency  for Palestine Refugees  in the Near East  (UNRWA) was  the Agency's contribution to keeping the  Palestinian cultural  identity alive,  the Fourth  Committee (Special  Political and Decolonization)  was told  this morning  as it began considering the  work of UNRWA.   As a result,  Palestine refugees were  the most highly educated group in the region.

  Peter Hansen, the Commissioner-General of UNRWA,  also said, however, that the UNRWA was  in the fifth  year of  a downward spiral of  declining income and increasing needs.  Austerity measures  originally introduced in 1993  on a temporary basis  had had to  be maintained.  The Agency's  deficit for the current year was expected to be some $62  million.  In the immediate future, UNRWA's financial deficit remained its most pressing problem.

  He noted  that in Jordan, where  1.4 million Palestine refugees lived, the host Government  spent  more than  $300  million  annually on  refugees,  an amount  that was  almost equivalent  to  UNRWA's  cash budget  for all  five fields.  In comparative terms,  the refugees in Jordan were the best off  in any field.  The 365,000 Palestine  refugees registered in Lebanon  continued to suffer from  extremely poor  living and housing conditions,  unemployment rates of 40  per cent  and restrictions on  mobility and economic  activity.  Syria provided the 365,000 Palestine  refugees living there with many of the benefits available to its own citizens.

  The  Observer for  Palestine, said  it  was  a depressing  and unfortunate reality that this year marked a half-century of the plight of the  Palestine refugees, who  awaited the just  resolution of their  plight.   The right of the  Palestine refugees to  return to  their homes and properties  and to be compensated if they chose  not to return was an inalienable right which  had not diminished with the passage of time.

  The grave deterioration of the situation on the ground — a result of  the protracted  deadlock in the peace process and the  policies and practices of the occupying Power  — served as a glaring  reminder of the continuing  and urgent  needs  of  the  refugees.   The  deterioration  had  resulted  in  a worsening  in the  daily life  of the  Palestinian people, with  despair and frustration  most prevalent among  the Palestine  refugee population  in the Occupied Palestine Territory,  including Jerusalem.  The refugees  continued to face  severe socio-economic hardships,  including very high  unemployment and a decline in  household income.  Moreover, the operations of the  Agency in  the  Occupied  Palestinian  Territory  continued  to  be  obstructed  by measures imposed by the Israeli authorities,  such as recent closures, which had restricted the movement of the UNRWA staff and vehicles.

  The  Observer  for the  Holy  See  recognized  the  substantial and  grave pressures the negotiators  on both sides of the  Wye River Memorandum of  23 October had been  subjected to, and  hoped that  the seeds  of the  solution would not  be crushed by extremism or terrorism.  He  stressed that the city of Jerusalem, the patrimony of the  three monotheistic religions and claimed by two peoples,  must not be  compromised by preemptive  actions which  were not a part of the agreed upon dialogue.

   The  representative of  Syria  said  Israel's  blatant challenge  to  the United Nations and relevant  international treaties had  caused the  general problems in the region.  The  refugee issue was the crux  of the Middle East problem.  It was  important not to disappoint  the millions of  refugees and aggravate  or prolong  their suffering.   However, it had  become clear that the  current Israeli  Government had  continued  to  hamper the  Middle East peace  process, and  had reneged  on  its obligations.   Such  behaviour ran counter to  current efforts  and threatened  more waves  of destruction  and violence – especially the  practice of  supporting more  Jewish  settlements among the Palestinian people and in the Palestinian lands.

  Statements were also made  this morning by  the Rapporteur of the  Working Group  on the  Financing of  UNRWA, as  well  as  by the  representatives of Jordan, Bangladesh,  Egypt, Austria  (on behalf  of the  European Union  and associated states), Ghana, Malaysia and Norway.

  The Fourth Committee is  scheduled to meet  again at 3 p.m. on  Wednesday, 11 November, to continue its consideration on the work of UNRWA.

  Committee Work Programme

  The  Fourth Committee  (Special  Political and  Decolonization)  met  this morning to begin its  consideration of the activities of the United  Nations Relief  and Works  Agency for Palestine  Refugees in the  Near East (UNRWA). The Committee had before it the  report of the Agency's Commissioner-General covering the period 1 July 1997 to 30 June 1998.

  Other  documents  before the  Committee  address  the  following  matters: persons displaced as a  result of the June 1967 and subsequent  hostilities; offers by  Member States of grants and scholarships for higher education for Palestine refugees;  a note by the  Secretary-General forwarding the  report of   the  United  Nations  Conciliation  Commission  for  Palestine;  and  a University of Jerusalem "Al-Quds" for Palestine refugees.

  The report of the Commissioner-General of UNRWA  (document A/53/13) refers to  general developments  in  the  Agency's main  programmes  in  education, health and  relief and  social services; financial matters,  budget, income, expenditure and  extrabudgetary activities;  the Agency's  current financial situation; legal matters; information on UNRWA  programmes and operations in Jordan, Lebanon, Syria, the West Bank and the Gaza Strip.   Two annexes also provide  statistical  and financial  information,  and  refer  to  pertinent records of the General Assembly and other United Nations bodies.

  According to the report, the Agency  continued to emphasize basic services for  Palestine  refugees  and   contributing  to  improving   socio-economic conditions in  refugee communities.  Living standards in refugee communities remained poor throughout the area of  operations, and were characterized  in some fields  by high  unemployment, falling  household income,  overburdened infrastructure,  and restrictions on  employment and  mobility.   In view of unabated  financial difficulties, the Agency was forced to introduce further austerity and cost-reduction  measures that  affected the quality and  level of services.

  The UNRWA's  ability to  deliver services  to the  Palestine refugees  was negatively affected  by continuing  financial shortfalls,  the report  says.  Despite the  steps  taken in  recent  years  to reconcile  expenditure  with income, at mid-1997 the  Agency still faced a  budget deficit of $70 million for the  year, representing the funding  shortfall against  the $312 million General Assembly-approved  cash budget.   More importantly, the  gap between estimated  income  and minimum  expenditure  on  basic  needs  stood at  $20 million.  The seriousness  of the  situation was  such  that had  no further action been taken, the Agency would have  run out of funds completely in the last  quarter of  1997 and  been forced  to suspend  operations until  fresh contributions  were  received.    To  avert   that  outcome,  there  was  no alternative but  to  introduce yet  another  round  of austerity  and  cost-reduction measures.  The announcement of  those measures elicited swift  and strong   opposition  from   the  Palestine   refugee  community   and   host authorities, including  protests held  at UNRWA offices throughout  the area of operations and a temporary boycott of Agency schools in the Gaza Strip.

  However, the report says tangible progress  was achieved in combating  the ongoing deficit problem.  Through its  regular programme, UNRWA continued to provide  education, health  care, relief  assistance and  social services to the  3.5  million Palestine refugees registered  with the Agency in  Jordan, Lebanon, Syria, and the  West Bank and Gaza Strip.  Agency services included elementary  and preparatory  schooling, vocational  and technical  training, and comprehensive primary health care, including family health.

  While not  denying that  any reduction in  services would  obviously be  a negative development,  UNRWA sought to clarify  that the measures  announced were necessitated by  insufficient funds, the report says.  With $21 million in  additional funding from generous  donors, the Agency  was able to revoke the  measures  which had  provoked  the  strongest opposition,  namely those relating to hospitalization and school charges, after  which the controversy surrounding the matter subsided.

  According to the report,  there was a growing concern within the region in general and  among the refugee community  in particular that  UNRWA might be phased out before a  solution to the Palestine  refugee issue was  achieved.  That  concern had  begun to  manifest itself  following the  signing of  the Israeli-Palestinian  Declaration of  Principles on  Interim  Self-Government Arrangements in September 1993, which  had foreseen the  eventual resolution of  the long-standing  refugee issue  and  an end  to the  Agency's mission.  Accusations were  voiced in the local  media and  other forums, particularly in Lebanon, that UNRWA was in  the process of being phased  out as a prelude to liquidation of  the refugee issue, and that  the Agency did  not have the refugees' best interests at heart.

  The  report says that  UNRWA's humanitarian  work was  carried out against the backdrop of  the continuing impasse in the  various tracks of the  peace process, despite  intensive diplomatic initiatives  focused on the  Israeli-Palestinian track.  By  the end of  June 1998, further redeployments in  the West Bank  were still awaited and  there had been  little progress on  other interim  issues called  for in  the  agreements  between the  parties, which would have implications  for the  situation on  the ground  in the  occupied territory.  Moreover,  the permanent  status  negotiations,  which  were  to include  the issue  of  refugees, had  not  yet commenced  in  substance  in accordance  with  the agreed  timetable.   The  security situation  remained tense, with sporadic clashes  and protests in the West Bank and Gaza  Strip, and occasional acts of violence leading to fatalities.

  Socio-economic conditions continued to deteriorate in the Gaza Strip,  the smallest  and most densely  populated of  UNRWA's five  fields of operation, according to  the  report.    Poor economic  conditions,  including  reduced purchasing power and  high unemployment, were  exacerbated by  the continued closure of the  Gaza Strip, which had  a particularly negative  effect owing to  heavy reliance on the employment of workers in  Israel and on import and export of raw materials and finished goods.

  As the interim period set out  in the Declaration of Principles  drew to a close, the  prospect of  an agreed  solution to  the refugee  issue appeared remote and  the future course  of the Middle  East peace  process uncertain, the report says.   The Palestine refugees, who  marked five decades of exile in  1998,   continued  to  face  declining   standards  of   living  and  an increasingly tense regional environment, and still  relied on UNRWA to  meet fundamental needs,  education for  children and  young people,  basic health care, support for  the disadvantaged and opportunities for  self-betterment.  Moreover, UNRWA   continued to cooperate with Jordan, Lebanon  and Syria and the  Palestinian  Authority in  providing  services  to  Palestine  refugees throughout the area of operations.

  Furthermore,  mid-1998 marked the second anniversary of  the completion of the relocation of UNRWA  headquarters from Vienna to Gaza in July 1996,  the report says.   While  the  return of  Agency  headquarters  to the  area  of operations conferred many advantages,  the drawbacks faced  at the principal headquarters' location at Gaza continued to  pose problems during the period under review.   In many  instances, the  Agency remained unable  to identify qualified local  staff to  fill vacancies  at the  salaries it  was able  to offer,  while  conditions of  service  in Gaza  made  it  more  difficult to attract  and  retain  international  staff.     The  lack  of  proximity  to diplomatic missions, the problems arising from local  infrastructure and the restrictions on movement  arising from Israeli security-related  constraints were  not   conducive  to  the   effective  functioning  of  a  headquarters operation.    While  the  Agency  continued  to  strive  to  overcome  those challenges, it  was becoming  increasingly clear  that certain  difficulties were inherent and would remain for the foreseeable future.

  On the  issue  of education,  the  report  says that  under  long-standing exchange agreements  with host authorities  to provide  schooling for pupils in  remote  areas,  186,290  refugee  pupils  were   reportedly  enroled  at government and  private schools  at the elementary  and preparatory  levels, while 39,942  non-refugee pupils attended UNRWA schools.  In all five fields of operation, UNRWA's basic education programme  continued to be carried out in accordance  with host authority education  systems.   Senior Agency staff in  all   fields  continued  to   participate  in  educational   development activities  of  host  authorities,  particularly  in  forums  dealing   with policies that might affect the Agency's education programme.

  According  to the  report, UNRWA's  health programme  remained  focused on comprehensive primary  health care, including a  full range  of maternal and child health  and family  planning services, school health  services, health education  and promotion activities,  and specialist  care, with an emphasis on  gynaecology and obstetrics,  paediatrics and  cardiology.   However, the health programme  continued to be negatively  affected by  the austerity and other cost reduction measures implemented since  1993 in response to funding shortfalls. The Agency  continued to pursue  cost containment and efficiency enhancement measures  in the health  programme to make  the best  use of the limited resources available.

  Regarding relief  and social  services, the  report says  there were  3.52 million  Palestinian refugees  registered with  UNRWA  on  30 June  1998, an increase of  3.0 per  cent over  the  figure from  the year  before.   UNRWA continued to assist  refugee families unable to  meet basic needs for  food, shelter  and other  life essentials through the  special hardship programme. The number  of  refugees  in households  meeting the  stringent  eligibility criteria — no  male adult  medically  fit to  earn  an  income and  no  other identifiable  means of  financial  support  above  a  defined  threshold  — increased by  5.6 per cent. Under  its poverty  alleviation programme, UNRWA continued  to assist  disadvantaged  refugees, especially  women,  to  raise their socio-economic  status  through  skills  training,  production  units, group-guaranteed  savings  and loan  schemes,  and  credit  provision.   The programme focused on special  hardship  cases with  a view to  enabling them to achieve  a level  of income  sufficient to  be removed from  the hardship rolls.

  Furthermore, UNRWA's  income-generation  programme continued to support small-scale and micro-enterprises within the refugee community by  providing capital investment and  working capital loans through field-based  revolving loan funds, and by  providing technical assistance, the report stated.   The programme  aimed   to  create  and  maintain   jobs,  generate  income   for participants,  support  sustainable   enterprises,   and   encourage   the participation of women in  economic life.  In  the Gaza Strip, where UNRWA's income-generation efforts were  concentrated, business activity  was heavily influenced  by closures  and  movement restrictions,  which  contributed  to unemployment,  hindered movement  of finished  goods and raw  materials, and increased business costs.

  The report stated that most of  the 365,000 Palestine refugees  registered in Lebanon faced  deplorable living conditions and depended almost  entirely on UNRWA for basic services.   The deteriorating socio-economic situation in the  country, combined  with the  inability of those  refugees to  gain full access  to  the   job  market  or  to  avail  themselves  of  public  health facilities, heightened  their desperation and misery.   Since the  resources available to UNRWA were  insufficient to cope with  the growing needs of the refugee  community  in  Lebanon,  the Agency  launched  a  special emergency appeal  on  10 July  1997  at  Geneva, seeking  $11  million  in  additional contributions to support essential health, education, and  relief and social services activities. Eight countries and one intergovernmental  organization responded  generously  to  the  appeal,  announcing total  pledges  of  $9.3 million by 30 June 1998.

  On  legal  matters, the  report  states that  the  number of  UNRWA  staff members  arrested and  detained throughout the area  of operations increased from 44  in the  previous reporting period  to 61 in  the current  reporting period, although  most staff members were  released without  charge or trial after relatively  short periods of  detention.   The Agency  was not  always provided with adequate and timely information  by the relevant authorities — both Israel  and the  Palestinian Authority  — as  to the  reasons for  the arrest and detention of  its staff members.   UNRWA was for the  first time able to obtain access to all  Palestinian Authority detention centres in the Gaza Strip to visit detained staff members.   However, it was only  possible to visit staff detained  in the Gaza Strip after long delays, sometimes over a year, particularly at facilities other than Gaza Central Prison.

  The procedures imposed by the Israeli  authorities on security grounds  to regulate entry  to and  exit from the  West Bank,  Gaza Strip  and entry  to Jerusalem remained in place during the  reporting period, the report stated.  Following  incidents of violence  or as  a preventive  security measure, the Israeli  authorities imposed  full closures  of  the  West Bank  and/or Gaza Strip on several occasions  during the reporting period, lasting for a total of 57 days.

  The Committee also  had before it the  report of the Secretary-General  on persons  displaced as a  result of the June  1967 and subsequent hostilities (document A/53/471).  It states that  the Secretary-General addressed a note verbale to the Permanent Representative  of Israel to the United Nations, in which he requested the Permanent Representative to  inform him on any action his  Government had  taken or  envisaged to  take in  implementation  of the relevant  provisions of  General Assembly  resolution 52/59  of 10  December 1997 which reaffirms  the right of all persons  displaced as a result of the June 1967  and subsequent  hostilities to  return to  their homes or  former places of residence in the territories occupied by Israel since 1967.

  In a  19 August  1998 response by  Israel to that  request, its  Permanent Representative replied that  resolutions regarding UNRWA remained rife  with political  issues  irrelevant  to  the  work   for  which  the  Agency   was responsible, and thus remained detached from the reality in the area.

  "The agreements between Israel and Palestinians mark significant  progress in the framework  of the peace process", he  writes.  "Israel believes  that this process  is the only way to achieve historic reconciliation and lasting peace  between the two sides.   However, for this  process to succeed, it is imperative that both  sides abide by  their commitments  and to resolve  all outstanding issues through negotiations.

  "Israel  believes that UNRWA  can play an important  role in promoting the social and  economic advancement  foreseen in the agreements  between Israel and  the Palestinians, within  the limits  of its  humanitarian mandate, and accordingly  looks forward to  continuing the  cooperation and  good working relationship with UNRWA."

  The report  further states that the  Agency would not necessarily be aware of the return of any registered refugees who  did not request the  provision of services.  So far as is known  to the Agency, between 1 July  1997 and 30 June 1998, 534 refugees registered with UNRWA returned to the West Bank  and 177 to  the Gaza Strip.   It  should be  noted that  some of  those may  not themselves have been displaced  in 1967, but might  be members of the family of a displaced registered refugee whom they accompanied.

  According  to the  report of  the  Secretary-General  on offers  by Member States  of   grants  and  scholarships   for  higher  education,   including vocational  training  for  Palestine  refugees  (document  A/53/472),  Japan awarded 11  fellowships through UNRWA  to Palestine  refugees in  1997/1998.  Switzerland contributed some $1.7  million between 1989 and 1996, as well as $338,000  in  1997,  to  the  UNRWA university  scholarships  programme  for secondary school graduates.

  The  report further says  that during  the biennium  1997-1998, the United Nations Educational, Scientific  and Cultural Organization (UNESCO)  granted seven scholarships  in favour  of Palestinian  students.   The World  Health Organization  (WHO)  provided   50  fellowship/study  tours  for   qualified Palestinian candidates nominated  by the Palestinian Authority.   Meanwhile, the United  World Colleges (UWC) established  their own selection  committee in  UNRWA's  area  of  operation,  and   have  therefore  not  offered   any scholarships   through  UNRWA  for   the  1997/1998   academic  year.   One scholarship, however,  has been offered through  UNRWA for  1998/1999 and is currently being processed.

  According  to an  annex in the  report of the  United Nations Conciliation Commission for Palestine (document A/53/518  and Corr.1), the United Nations Secretariat has engaged a contractor for  the modernization of the  existing records and  the project will be  completed in early  1999.  The  Commission has authorized  access by  the designated  representatives of the  Palestine Liberation Organization to its land records  in the United Nations  archives for the purpose of making a scanned image of those records.

  The Committee also had  before it the report of the Secretary-General on a University  of  Jerusalem   "Al-Quds"  for   Palestine  refugees   (document A/53/551).

  At  the Secretary-General's  request, the  Rector  of the  United  Nations University  made  available  a highly  qualified  expert,  Mihaly Simai,  to assist  in the preparation of the  study, the report states.  The expert was to visit the area and meet with Israeli  officials.  In a note verbale dated 25 August  1998 addressed  to the  Permanent Representative  of Israel,  the Secretary-General requested  that the  Government of  Israel facilitate  the visit of the expert.

  The report  states that  on 10  October, the  Permanent Representative  of Israel informed  the Secretary-General  that Israel has voted consistently against the Assembly's  resolution on  the  proposed  university, and  its position  remained  unchanged.    "It is  clear  that the sponsors  of this resolution  seek to  exploit the  field of higher education  for political purposes  totally  extraneous to  genuine  academic  pursuits",  he  writes.  Accordingly,  Israel  considers that  the  proposed  visit "would  serve  no useful purpose".

  PETER  HANSEN, Commissioner-General of the United Nations Relief and Works Agency for Palestine  Refugees in the  Near East  (UNRWA), said that  during the period under review, the Agency's  operating environment had been marked by a  lack of  progress in  the Middle  East peace  process, with  resulting tension  and frustration  in the  Palestine  refugee  community.   The UNRWA therefore welcomed  the  recent Wye  River  Memorandum  and hoped  that  its implementation would be smooth.   Courage was required  on both sides to put an end  to the cycles  of violence, which wrought havoc  on human life, tore apart family and  society and  set back  the peace  process.   With all  its difficulties and challenges, there was no  alternative to peace, despite the tragic events of the last two weeks.

  He said that in general, living  standards in refugee communities remained poor, characterized in  some fields by high unemployment, falling  household income,  overburdened infrastructure,  and restrictions  on unemployment and mobility.   In Jordan, where  1.4 million Palestine refugees lived, the host Government spent  more than  $300 million  annually on  refugees, an  amount that was almost equivalent to  UNRWA's cash budget for all five fields.   In comparative terms, the refugees  in Jordan were  the best off in any  field, enjoying full access to Government and  international efforts to introduce a social security package to improve socio-economic conditions.

  The 365,000 Palestine  refugees registered in Lebanon continued to  suffer from extremely poor living and housing  conditions, unemployment rates of 40 per cent and restrictions  on mobility and economic  activity, he said.  The UNRWA remained the main  provider of services to the refugees, whose  access to public education and health care was rather  limited.  Many refugees  had suffered multiple displacement  in the last two decades.  As UNRWA's ability to meet the  needs of the refugees was curtailed by scarce resources, a 1997 appeal to finance  those emergency  and mid-term  needs which  could not  be covered from  UNRWA's regular budget had resulted in a  generous response by donors of $10 million.

  He said  that Syria provided the  365,000 Palestine  refugees living there with  many of  the benefits  available to  its own  citizens.   The 555,000 refugees in the West Bank  represented 30 per  cent of  the population; the 773,000 refugees  in  the  Gaza  Strip formed  almost  76  per cent  of  the population.   While  the  Palestinian Authority  had its  own  institutions, structures and  services,  those were  separate  from  those of  UNRWA,  and catered  to  non-refugees.  The  Authority  and  UNRWA  had  differing and distinct roles.  That point was made  to clarify that resources  transferred from  UNRWA did  not make  their way  to  Palestine  refugees via  any other

vector.

  The  Agency's relations  with the  Palestine Authority  and the  Palestine Liberation Organization (PLO) continued to be  close at all levels, he said.  It was hoped that  a pending problem, that of Value Added Tax  reimbursement to UNRWA  by the  Authority, would  soon be  resolved.   That amount,  which increased  each month, as  did "lost" interest, was  now almost $20 million.  That was  virtually the same amount  as UNRWA's core  deficit in 1996,  1997 and 1998,  and represented funds  which the  Agency desperately needed  at a time when the monthly payroll for 22,000  Palestinian staff could not always be guaranteed.

  He said  that freedom of movement  of UNRWA Palestinian staff continued to be a  problem as a result  of procedures imposed  by Israeli authorities  on security grounds to  regulate the entry to and  exit from the West Bank  and Gaza Strip.   Those  included systems  of permits,  checkpoint controls  and searches of Agency vehicles,  occasional closures of the West Bank and  Gaza Strip  and  restrictions  across the  Allenby  Bridge.   Last  year,  a  new restriction had been introduced whereby Palestinians  with West Bank or Gaza residency required  an additional security clearance  to drive  a vehicle in Israel.  As a  result, movement of Agency staff and vehicles was impeded and often prevented,  leading to disruption of  operations.   That situation was exacerbated by full closures following incidents  of violence or which  were imposed as  a preventive  security measure.   Internal closures in  the West Bank,  sometimes  concurrent with  a  full  closure, affected  movement  and operations within the West Bank.

  Among  UNRWA's achievements in education was the  Agency's contribution to keeping the Palestinian  cultural identity alive; making Palestine  refugees the most highly  educated group  in the region;  reaching education for  all even prior  to the UNESCO target date of the year  2000; enrolling more than 50 per  cent of girls in  Agency schools; setting  up the first  residential vocational  training centre for women  in the Middle East;  achieving 98 per cent retention  rates and  very low drop-out  rates in  Agency schools;  and training  generations  of  refugee  youth in  UNRWA  vocational  and teacher training centres  to help  them  to earn  a livelihood  and assist  extended families, and support the economic infrastructure in the region.

  In health, he said,  UNRWA had reached a  number of important  goals ahead of  the WHO target dates, including goals in infant mortality, dental health and eradication  of certain  communicable diseases.   For  example, ease  of access to health care had led to infant mortality rates in refugee camps  in Gaza being significantly lower than among non-refugees  in Gaza and the West Bank.    The   cost-effectiveness  of  UNRWA's   health  services  had  been repeatedly affirmed by independent assessments by WHO and the World Bank.

  Regarding social services,  UNRWA had been the first  to set up a  network of community  centres, which had  become largely self-sustaining, for women, youth, and the disabled, he said.   The UNRWA's income-generating  programme was the largest private credit scheme in the Gaza Strip, while the  Agency's poverty alleviation programme, aimed at the  most vulnerable segment of  the refugees,  helped to  supplement or  generate a  small income and  provide a measure of self-reliance in poor refugee families.

  Lest those achievements give the impression  of a passive community living on welfare,  he said, the Palestine  refugees bore a  fairly large share of the burden  of their daily  lives themselves.  They  contributed cash, goods and labour  to community  projects;  they often  ran their  own schools and community  centres; the  well-off Palestinians,  refugees and  non-refugees, fully financed  or subsidized an  number of activities  in the  region; even the poor  refugees made a  modest contribution, for  example in paving  camp sidewalks and school playgrounds.

  He  said he did  not wish to give  the impression that all  was well.  The UNRWA was in the  fifth year of a  downward spiral of  declining income  and increasing  needs.  Austerity  measures originally  introduced in  1993 on a temporary basis had had  to be maintained.  The Agency's working capital was reduced to  $400,000 and  could no longer  provide a cushion  for cash  flow problems.   The UNRWA's deficit  for this  year was expected to  be some $62 million.  By freezing or cutting  expenditure lines, the Agency would manage to  get by  at a  reduced level  of $252  million in  expenditures,  against budgeted needs  of $314  million.   The UNRWA's  current three-year  mandate would expire in June 1999.  With the important role the Agency continued  to play in  the region,  it was  hoped and expected  that its mandate  would be renewed for  another  term.   In  the  immediate future,  UNRWA's  financial deficit remained its most pressing problem.

  SVEIN AASS  (Norway), speaking  in  his  capacity  as  Rapporteur of  the Working Group  on financing  of UNRWA, said  the Working Group  had followed with concern  the serious  financial situation  that continued  to face  the Agency.   It feared that the  budget deficit of $61.5  million for 1997  and the introduction  of new austerity  measures would not  allow the  Agency to fulfil  its   mandate,  and   would  negatively   affect  its   humanitarian programmes.  The financial prospects after  five years of austerity measures had eroded the quality and level of service to the 3.5 million refugees.

  The financial situation would also hamper  the Agency's ability to account for the  natural growth  of the  refugee population,  he said.   The Working Group had appreciated UNRWA's efforts to  deal with its structural  problem, and commended the Agency's staff for its efforts  to maintain its quality of service  despite the  financial constraints  on availability  of  resources.  The  Group  also commended  UNRWA's  fundraising  efforts,  as  well as  the cooperation  between the Agency and the host countries  for the refugees. It was, however, unfortunate  that the higher number  of case loads for  social workers  dealing with the poorest  of refugees, along with the education and health care of the refugees, would suffer due to the economic hardships.

   The UNRWA  played a  vital role in the  security of the region,  he said.  The problem in the  Middle East was deeply  rooted in political  issue which had  begun half a  century ago  and needed to  be settled once  and for all.   The effort to  solve   the  problem must be a  shared  international responsibility.  The  Working   Group  therefore  urged  all  donors,  host countries,  and  countries  not  involved  to  step  in  and  realize  their collective responsibility  to cover  the current deficit  and fulfil  Agency mandates and programmes without any further cuts.

  NASSER AL-KIDWA,  Observer for  Palestine, said  it was  a depressing  and unfortunate  reality that this year  marked a half-century  of the plight of the  Palestine refugees,  who remained scattered throughout  the five fields of the UNRWA operations and beyond, awaiting  the  just resolution  of their plight.

  The General  Assembly had annually reaffirmed  the right  of the Palestine refugees to  return to their  homes and properties  and to  compensate those who  choose not  to return,  he said.   The  General Assembly  had  annually reaffirmed  that  right.    It  was  an  inalienable  right  which  had  not diminished with the passage  of time.  Furthermore, that right should not be confused  with the  right of  displaced  people to  return to  the territory occupied by  Israel since 1967  — which had  been affirmed  by the Security Council —  and should have been effected during the  transitional period of the peace process, but  which unfortunately had not happened yet due to  the lack of Israeli compliance.

  The continuing importance and centrality of the UNRWA in the lives of  the refugees  could not be  overemphasized, he  said.   Consequently, the severe financial difficulties  which faced the  Agency were a  grave concern.   The continuing  and widening  gap between  the financial  resources available to the  UNRWA and the needs of the 3.5 million Palestine refugees was a serious dilemma  fraught  with  both  short-term  and  potentially  grave  long-term negative consequences.   For humanitarian reasons,  and also  because of the negative political  meaning it would convey  to the  Palestine refugees, the Palestine delegation  opposed any  decrease in  the services  of the  UNRWA.  Allowing financial  burdens  to become  the  foremost  consideration of  the Agency was  unfair to the  refugees that  UNRWA was mandated to  serve.  The Agency should not be  forced to operate solely  on the basis of availability of funds.

  The grave deterioration of the situation on the ground — a result of  the protracted deadlock in  the peace process  and the polices and  practices of the occupying Power —  served as a glaring  reminder of the  continuing and urgent  needs of the refugees, he said.  The deterioration had resulted in a worsening in  the daily life  of the  Palestinian people,  with despair  and frustration most  prevalent among  the Palestine refugee  population in  the Occupied Palestine Territory,  including Jerusalem.  The refugees continued to face  severe socio-economic hardships,  including very high  unemployment and a decline in household income.  Moreover,  the operations of the  Agency in  the  Occupied  Palestinian  Territory  continued  to  be  obstructed  by measures imposed  by the Israeli authorities,  such as  the recent closures, which had restricted the movement of the UNRWA  staff and vehicles, and  had affected the provision of services to the Palestine refugees.

  HASSAN  ABU-NIMAH (Jordan) said  that since  its inception,  the UNRWA had proved to be one  of the most successful United  Nations bodies in  terms of providing  health, education  and  social services  to refugees  despite its dwindling finances.   The  Palestinian question  was the crux  of the  Arab-Israeli question and peaceful  settlement of that  problem was at the  heart of that  issue.   The fact of  the continuing refugee  problem would  ensure continuing instability in  the region.   It was a source of  concern that no real achievement had been  made in bilateral  and multilateral  negotiations and that situation must be redressed.

  He  said that after five  decades of the  Palestinian refugee tragedy, the UNRWA was  still delivering  its services  to the  refugees, confirming  the international community's continuing concern for the Palestinians.  As  long the refugee question was not solved,  the Agency's presence was  fundamental in providing  services that  should be  in line with  the annual 5  per cent increase in the number of the refugee population.

  Being the host  of the largest number of  refugees since 1948, Jordan  had been more affected than  any other host country,  he said.   Jordan's policy was built on  the right of every individual to  a dignified life.  It  dealt with the humanitarian dimensions of the  Palestinian question.  The critical financial  situation of the  UNRWA still  threatened its  services given the gap between its income and expenditure, which  was having a negative  impact on the quality and quantity of those services.

  He said that the peace process needed  support in the face of  threats and obstacles.   Achieving the  final goals  of the  peace process required  the efforts of all  Member States.   Failure to deliver would create disappointment and make the entire situation even more prone to violence.

  ANWARUL  KARIM  CHOWDHURY  (Bangladesh)  said  the  activities of UNRWA reflected the commitment  of the world  community to look after  the welfare of  the 3.5  million  Palestine  refugees  registered with  UNRWA.   In  his report, the UNRWA's Commissioner-General, Peter Hansen, had underscored  the funding  shortfalls  in  the regular  budget  that  continued  to negatively affect  the activities  of the  Agency, thereby  seriously jeopardizing  the well-being  of the Palestine  refugees.   Bangladesh was  concerned that the financial  crisis  and  resource  constraints  of  the  Agency  necessitated changes in some of the basic  services of UNRWA in the  fields of health and education.

  The Peace  and Implementation Programme  of UNRWA deserved  encouragement, as it  contributed to  the quality  of life  of the  Palestine refugees,  he said. Since the Programme's  inception in 1993, a  total of 332 projects had been funded,  resulting in maintenance or  upgrading of existing  facilities to an  adequate standard.   Moreover,  Bangladesh believed  that the  recent signing of the Wye  River Agreement would  bring fresh hope for the  refugee communities in  the region.   However, progress in the  peace process should not automatically  result in  the  scaling down  of UNRWA  activities.   The level of services for Palestine refugees  should continue until the  refugee issue was fully resolved and UNRWA activities were  smoothly taken over  by Palestine.  Bangladesh was also very concerned that  in the name of imposing security  procedures,  continuous  impediments  had  been  created,  causing dislocation in the operation of the Agency.

  MAGED A. ABDELAZIZ (Egypt) said that all  the parties striving to  achieve a  lasting,  just  and  comprehensive  peace  in  the  Middle   East  and  a comprehensive  settlement of  the Palestinian  question in  all its  aspects were aware of  the  vital importance and  the necessity of the services that UNRWA provided to the Palestinian people in all areas.  Those services  were increasing in  importance during the current  transitional period  and up to the conclusion  of the  final status  negotiations which,  it was  expected, would reach  a just  settlement of the  refugee question.   In that  regard, Egypt noted  with increasing concern the continuing and deepening precarious financial situation of the Agency.

  He said peace  was still from  far being  achieved, and  the final  status negotiations — which were  expected to be arduous  and prolonged — had not yet  commenced.   The  Palestinian  people  —  and  the Palestine  refugees specifically — needed sustained international  support today more than what had been needed before.   There were needs,  invoked by the responsibilities of self-rule  on the  one hand, and  by oppressive measures  imposed by  the Israeli authorities on  the other,  which needed to   be addressed.  It  was imperative that the international  community — and  specifically the  major donor  parties, whether they be  States or financial institutions — did not abandon the  Palestinian people  in their difficult economic,  political and social situation.

  Egypt considered that responding to the  needs of the Palestine  refugees, developing the necessary services provided to  them and furnishing them with a minimum  standard of living would  all have a positive impact commensurate to the level of their support for the peace process, he said.   The opposite was  also  true,  whereby  depriving  the  refugees  of  basic  services and retreating  from  responding  to  their  problems  —  not  because  of  the shortcomings  of UNRWA or its employees,  but as a result of  the decline in its  resources — would  not only  diminish the level of  support, but would also render many of them victims of extremism and violence.

  FAYSSAL MEKDAD (Syria) said it was evident  that the Government of  Israel encouraged  Jews  from  around  the  world  to  come  and   settle  in  Arab territories. Israel  had  continued its  disregard  for  the rights  of  the Palestine  refugees — who  had been  uprooted  by  terrorism and  murder, and driven from their ancestral land — and posed a blatant challenge to  United Nations, Geneva  Convention and  other international  treaties.  Israel  had not allowed,  nor did it intend  to allow, the  refugees to  return to their homes.  The Palestine refugees had inalienable rights to their homeland.

  That persistent challenge had caused the  general problems in the  region, he said, noting that the  refugee issue was the crux  of the problem  in the Middle East.  It  was important not to  disappoint the millions  of refugees and aggravate  or prolong their  suffering.   However, it  had become clear that the current Israeli Government had continued to hamper the Middle East peace process,  and  had reneged  on its  obligations.   Such behaviour  ran counter to the current  efforts and threatened more waves of destruction and violence especially the  practice of  supporting more  Jewish  settlements among the Palestinian people and in the Palestinian lands.

  KARIN  PROIDL (Austria),  speaking on  behalf  of  the European  Union and associated States, noted  that UNRWA  had used the  impetus provided by  its financial  crisis to  rethink methods  of operation  with a  view to finding means  to  fulfil its  programme  goals  in  a  more  sustainable and  cost-effective manner.  The Union  noted with  appreciation the tangible  process achieved in combating  the ongoing deficit problem, while the reform  effort initiated in the previous reporting period continued to produce results.

  The  Union encouraged  the Commissioner-General  and his team  to continue their  efforts towards increased transparency  and higher cost-effectiveness through  new   approaches   to  traditional   programme  activities,   while maintaining the quality and  level of the  Agency's services, she said.   In that  context,  last   year's  controversy  surrounding  austerity  measures relating to  hospitalization  and school  charges had  subsided through the generous financial support of the international  community.  The international donor community  had underlined its  deep commitment  to stand by the Palestine refugees while the region was striving for durable peace.

  She said that few would have predicted when it was first established  that UNRWA  would  be  required  to  remain  in  existence  for  about 50  years.  Nevertheless, as the fiftieth anniversary of its  foundation approached, the world must remain conscious that the Agency had been established to  provide assistance only  of a temporary nature and  that it had not been intended to be a substitute for a political solution  to the refugee problem.  The Union earnestly hoped that a political  solution to the refugee problem would come soon as  part of  a comprehensive,  just and lasting  peace in the  area, so that the conclusion of  UNRWA's mandate and the transfer of its functions to the Palestinian Authority would be possible.

  The  European  Union  warmly  welcomed  the   signing  of  the  Wye  River Memorandum  on  23  October  between Prime  Minister  Benjamin  Netanyahu of Israel and  Chairman Yassir Arafat of  the Palestinian  Authority, she said.  That event  opened the  doors for  an early  resumption of the  final status negotiations  as foreseen in the Oslo Accords, as well as the implementation of  the outstanding  commitments under  the  Interim  Agreement.   The Union remained  deeply  committed  to  the  Middle  East  peace  process  and  was determined to continue playing its full part,  enhancing that process in all its aspects.

  She said  UNRWA's efforts  in the fields  of health, education  and social assistance constituted an important stability  factor for the  peace process which could not be  overestimated.  It was  the responsibility of all United Nations  Member States to  provide UNRWA  with the  appropriate resources to carry  out its  functions  until such  time  as a  comprehensive,  just  and lasting  settlement had been  found to the political  problems which had led to the presence of Palestine refugees in the Near East.

  YAW OSEI (Ghana) said  pending a  peaceful settlement  of the Palestinian problem, the international  community had a  moral responsibility to support UNRWA in  its invaluable role  of catering to  the welfare  of the Palestine refugees and enhancing socio-economic conditions in  the refugee camps.  The United Nations could not ignore the Commissioner-General's concerns,  raised in his  report, which  drew attention  to the  Agency's worsening  financial situation  which compelled the  institution to  adopt austerity measures and affected  the quality  and  level  of some  services  at a  time  of  steady increases in the refugee population.

  Ghana noted with appreciation the tireless work of the UNRWA staff in  the face of such financial constraints, he said.   He also drew attention to the contributions  of donor countries to  help sustain the level  of services to the refugees  and the  efforts of the  Working Group to  help eliminate  the structural deficit problem which had plagued  the Agency in previous  years.  His country  also  congratulated the  Government  of  the United  States in facilitating the talks between Palestine and  Israel, and urged all sides to work assiduously to honour the commitments of the Wye River Memorandum.

  RAMLI  AHMAD  (Malaysia)  said  his  delegation  was concerned  about  the continued interference  by the  Israeli authorities  in UNRWA's  operations.  They  had on  numerous occasions  imposed  restrictions  on the  movement of Agency staff  and Palestinian  people to  and from  the West  Bank and  Gaza Strip, ostensibly  on security  grounds.   Those restrictions, coupled  with Israeli  closures of the  West bank  and Gaza Strip, had  not only adversely affected  the  work  of  UNRWA,  but  had  exacerbated  further  the already deteriorating  socio-economic   conditions  of  the  Palestinian  community.  Malaysia found that situation unacceptable.

  He welcomed the signing of the Wye River  Memorandum on 23 October, saying it was  an  important breakthrough  in  efforts  to revitalize  the  stalled Middle  East peace  process.   It was  hoped that  the Memorandum  would  be implemented   in   full  and   without   preconditions.      Its   immediate implementation  would create an  atmosphere of  trust and confidence between the parties and  would enable them to move  forward to the permanent  status negotiations, of which the issue of the Palestine refugees was a part.

  Malaysia  noted  with   deep  concern  the  serious  budgetary  and  other constraints faced by  UNRWA, he said.   At  the same  time, Malaysia  highly appreciated the  fact that despite  those constraints,  the Agency  remained fully  committed  to  bringing  about  improvements  in  the  socio-economic conditions  of the  3.5 million  refugees registered with  it.   The UNRWA's worthy  efforts deserved the  continued strong  support of the international community.   The continued  financial shortfalls  faced by  the Agency would adversely  affect   its  activities  to  improve   the  well-being  of   the Palestinians.   Such a  situation would  also have  a strong bearing  on the peace process.

  OLE PETER KOLBY (Norway)  said his Government  was very much concerned  by the  fact that some  important donors  had reduced  their contributions, and that others were  planning to do so.  Norway reiterated its appeal to expand the  donor base.   Words of  solidarity with the Palestine  refugees and the political  will to participate  in the peace process  must be accompanied by concrete action in terms of contributions.

  The allegations  of corruption made against  the Lebanon  Field Office had received considerable attention during the past weeks, he said.   Norway was deeply  concerned by  those allegations, and appreciated  the swift response made  by UNRWA's  Commissioner-General.   The  Office of  Internal Oversight Service's  report had concluded  that charges  had little  basis in reality.  Such  allegations  should,  however,  not  draw  attention   away  from  the Palestine  refugees  depending upon  UNRWA's  services.    Moreover,  Norway remained convinced  that the  fundamental requirement for the  peace process to succeed was that it must be seen to yield positive results on the  ground and in  people's everyday  lives.   Continued support  by the  international community  for  the  political process  must  therefore  be  accompanied  by substantial  economic assistance,  particularly to  the  Palestinian people.  The UNRWA played a vital role in that context.

    RENATO  R.  MARTINO, Observer  for  the  Holy See,  said  when  acts  of violence  caused closures,  the subsequent  system of  military  checkpoints impacted very  seriously  on the  right  to  work, negatively  affected  the distribution  of  agricultural  products  and  worked  against  freedom   of worship.   His  delegation  hoped  the  signing  of  the  recent  Wye  River Memorandum  would  wipe  away some  of  those  injustices.    The  Holy  See recognized the substantial and grave pressures  the negotiators of each side had  been subjected to, and hoped  that the seeds of the  solution would not be  crushed by extremism or  terrorism.  Moreover,  his delegation urged the international  community to  support those  who  had  crafted the  Wye River Memorandum so  that the security for  the citizens of Israel,  as well as  a respect for the fundamental rights of the Palestinians and a recognition  of

their right to a homeland, would be realized.

  In  the peace  process,  the status  of the  city  of Jerusalem  had  been deferred to the ultimate issue,  he said.  The status of that city,  claimed by two peoples and  the patrimony of the three monotheistic religions,  must not  be compromised  by pre-emptive actions  which were  not  a part  of the agreed  upon  dialogue.   Calling  Jerusalem  an  outstanding  religious and cultural centre,  he reiterated the appeals  of the Holy See to the international community to  ensure  the avoidance of  irreversible solutions  which could  prejudice the  very  future of  Jerusalem  and  cause it to  lose the universal character which made it a heritage of humanity.

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2021-11-10T16:39:43-05:00

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