{"id":213854,"date":"1996-11-22T00:00:00","date_gmt":"2019-03-12T20:41:27","guid":{"rendered":"https:\/\/www.un.org\/unispal\/?p=213854"},"modified":"2021-11-10T16:37:42","modified_gmt":"2021-11-10T21:37:42","slug":"auto-insert-213854","status":"publish","type":"document","link":"https:\/\/www.un.org\/unispal\/document\/auto-insert-213854\/","title":{"rendered":"Consideration of the work of UNRWA – GA Fourth Cttee debate – Press release"},"content":{"rendered":"
\n\t\t\t\t<\/p>\n
\n

FOURTH COMMITTEE BEGINS DISCUSSION OF RELIEF<\/u><\/strong><\/p><\/div>\n

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\nAND WORKS AGENCY FOR PALESTINE REFUGEES<\/u><\/strong><\/p><\/div>\n

<\/p>\n

\n

Commissioner-General Says Agency Imperilled by Budget Deficits;<\/u>
\nPalestine Observer Notes 'Unprecedented' Declines in Living Conditions<\/u><\/p><\/div>\n

\n

\t<\/span>The relationship between the work of the Â鶹APP Relief and Works Agency for Palestine Refugees in the Near  East (UNRWA)  and the prospects for the Middle East peace process was addressed this morning, as the Fourth Committee (Special Political and Decolonization) took up the report of the Agency for the period 1 July 1995 to 30 June 1996.<\/p><\/div>\n

<\/p>\n

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\t<\/span>The Commissioner-General of the UNRWA, Peter Hansen, told the Committee that, despite the imposition of austerity measures for  several years to reduce expenses, the Agency had experienced  chronic budget deficits that imperilled continuation of essential  services to the Palestine refugee population.  If it suffered deficits in the future, services would have to be cut outright.  That might be viewed as part of a plan to withdraw the aid agency entirely. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The observer for Palestine added that, at a time when the peace  process faced serious setbacks, the living conditions of the Palestinian people had declined to unprecedented low levels, in  part because of Israel's closing of the West Bank this year.  That closure had also adversely affected the Agency's ability to function. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The representative of Israel said her country was proud of its good working relations with the UNRWA, but consideration of the Agency was being used as a political tool against the new Government of Israel, which was being prejudged as an opponent of the peace process.  The number of UNRWA resolutions should be reduced to one that directly related to the Agency's humanitarian tasks. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The representative of Jordan said that solving the difficulties of the Palestine refugees was central to achieving a lasting  Middle East peace.  The treaty between Jordan and Israel had reaffirmed the rights of the Palestinian people.  He called for support for the Agency's efforts to provide Palestine refugees at least a minimal degree of decency. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The representative of Syria said the Palestine refugees now  faced an economic embargo, the demolition of their houses, and the closing of schools.  The Agency's financial difficulties reflected  the failure of the donor States, which was endangering all that had  been accomplished in the five years since the Madrid conference. <\/p><\/div>\n

<\/p>\n

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\t<\/span>Statements were also made by the representatives of Norway, Canada, Turkey, Japan, China, Egypt, Ghana, Libya, Yemen, Viet  Nam, Bangladesh, United Arab Emirates, United States, as well as by the observers of the Holy See and Switzerland.  The Rapporteur of the Working Group on UNRWA Financing also made a statement.<\/p><\/div>\n

<\/p>\n

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\t<\/span>The Committee will meet again at 3:00 p.m. today to continue its  general debate on the UNRWA.<\/p><\/div>\n

<\/p>\n

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\t<\/span>The Fourth Committee (Special Political and Decolonization) met this morning to begin consideration of the activities of the Â鶹APP Relief and Works Agency for Palestine Refugees in the Near  East (UNRWA).  It has before it the report of the Agency's Commissioner-General covering the period from 1 July 1995 to 30 June 1996, as well as his report on the financial crisis of the Agency.    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  Palestine refugees; revenues derived from Palestine refugees' properties; report of the Â鶹APP Conciliation Commission for Palestine; and the University of Jerusalem "Al-Quds" for  Palestine refugees.  The report of the working group on the financing of the UNRWA is also before the Committee.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>According to the report of the Commissioner-General of the UNRWA (document A\/51\/13), the last year saw continued emphasis on support for the Middle East peace process, and the improvement of socio- economic  conditions within the Palestine refugee community.   However, advances in the peace process, including the redeployment  of Israeli forces in the West Bank and the holding of Palestinian elections, were followed by escalating violence against Israelis in early 1996, and the subsequent closing of the West Bank and Gaza  Strip.  Such security-related restrictions interfered with the Agency's operations, as it completed the historic relocation of its headquarters to its area of operations. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>At mid-1996, the outlook for the Palestine refugees and the Agency was less promising than it had been one year earlier, the report notes.  The turning point that had appeared on the horizon  at that time did not materialize.  The Agency was confronted by mounting concerns about security, emphasis on contradictory interests among parties, and increased questioning of the peace  process.  The Agency was simultaneously caught between growing humanitarian needs of the Palestine population, and the limits on the resources available to it. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The report states  that the Agency's financial position grew  increasingly serious with a fourth consecutive structural  deficit foreseen for 1996, and financing for the regular programmes  coming  under increasing  strain.  Regular UNRWA programmes provided education, health and relief services  to 3.3 million Palestine refugees in Jordan, Lebanon, Syria, the West Bank and Gaza Strip.  Its 637 schools  accommodated 421,854 pupils, and  a network of 123 out-patient facilities handled 6.6 million visits. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The  Agency's commitment to the  peace  process was demonstrated  in its Peace Implementation Programme (PIP), whose level of activity was beginning to represent an increasingly  large part of  all its activities on the ground, the report states.  Pledges and contributions of $68.9 million received last year led to a total of $192.6 million by mid-1996 since the Agency's establishment.  Funds were used to improve infrastructure, create employment, and enhance socio-economic conditions in the five fields of operations.  The Programme  also supported  rehabilitation of  refugee shelters, provision of sewerage and drainage systems in camps and other activities. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The report states that in the first half of the reporting period, progress continued towards the goals of the Israel-Palestine  Liberation Organization (PLO) Declaration of Principles on Self- Government Arrangements of 13 September 1993, and subsequent implementation agreements.   Under the superseding Interim Agreement on  the West Bank and Gaza Strip of 28 September 1995, Israeli  forces began redeploying out of several West Bank cities and 450 towns and villages, where the Palestinian Police Force assumed security responsibilities.  The 20 January election of the  Palestinian Council broadened self-government. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The UNRWA supported those elections in a number of ways to reinforce the achievements of the peace process and expand opportunities to strengthen the Palestinian Authority-UNRWA partnership, the report goes on.  "For the first time since 1967 most Palestinians in the West Bank were no longer in direct contact  with Israeli forces and were largely able to manage their own affairs", the report states. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Despite the Israeli Prime Minister's  assassination and   escalating violence late in 1995, optimism continued to prevail  respecting the peace process, the report states.  However, the series  of bomb attacks by Palestinians in February and March, which  killed 56 Israelis, reversed that momentum.  Israel postponed indefinitely negotiations and redeployment  of military forces in Hebron, which was to have  been completed by March, and began to separate the West Bank from Israel.  By mid-1996, the peace process was stalled and future steps remained unclear.<\/p><\/div>\n

<\/p>\n

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\t<\/span>"Certain developments after the end of the reporting period led the Agency to hope that official negotiations on the peace process would soon resume", the report states.  West Bank clashes between Palestinian civilians and Israeli forces declined markedly during the period under review, and 17 Palestinians were killed by Israeli soldiers and  settlers, as compared to 86 in the preceding reporting period. <\/p><\/div>\n

<\/p>\n

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\t<\/span>Nevertheless, tensions remained, as Israeli authorities continued to impose  security measures, including the demolition of houses,  arrests, curfews and  temporary closures of educational and religious  institutions, the report continues.  "At the close of the  reporting period, some 3,200 Palestinians, including many refugees, remained in detention." <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Under the Interim  Agreement, international observers from the  Temporary International Presence arrived in Hebron in May, where  clashes between Palestinians and Israeli soldiers and settlers continued, the report goes on to say.  As the closure of the West Bank and Gaza Strip during nearly half of the reporting period  inhibited economic activity, exacerbated unemployment, and contributed to socio-economic deterioration, emergency job creation for 2,376 individuals was provided under PIP.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The virtual halt of the Agency's West Bank operations during the 11-day closure in March, following bomb attacks on Israeli targets, represented a departure from agreements with Israeli authorities  that were in effect since 1967, the report states.  The Agency  nevertheless continued to cooperate with the Palestinian Authority.      Assistance included relinquishment of an uninhabited refugee camp  site at Nu'eima in  the Jericho area to the Palestinian Authority in 1995, and technical support for a model village in  that camp.  Classrooms and teachers for 4,100 children of refugees, and training courses for the Authority's education department, were also provided.<\/p><\/div>\n

\n

\n\t<\/span>According to the report, services were also provided to maintain 25 schools, to build 15 playgrounds, to maintain and repair sewers  and storm drains, and to improve human resources in maternal health and family planning.  The Agency disbursed a total of $38.9 million for members of the Palestinian  Police from September 1994 through  July 1995.  It also emphasized senior-level contact between programme departments responsible for education, health and relief and social services sectors, and their counterparts within the Palestinian Authority. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The UNRWA entered a new phase in its  history with the return of  its headquarters to the area of operations, which began in February, the report states.  In July 1996, the Office of the Commissioner- General, as well as the Administration, Legal and Finance, External Relations and Public Information Departments were relocated from Vienna to Gaza.  Other departments joined the Agency's Amman headquarters.  The resulting streamlining and integration of headquarters and field operations, effected longer-term cost-savings. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The report states that the Agency's financial situation continued to worsen during the reporting period with  an $8.4 million deficit for 1995, and a fourth consecutive deficit expected for 1996.  The combined effect of austerity measures and the lack of sufficient funds prevented Agency services  from expanding to meet demand.  Belt-tightening efforts progressively downgraded the level of services and generated longer-term costs, and cumulatively eroded the ability to maintain core functions for the refugee population.  The resulting choice facing the Agency was to either drift towards insolvency, or to decide to withdraw entirely from certain core programmes or other areas. <\/p><\/div>\n

<\/p>\n

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\t<\/span>In resolution 50\/28 A, the General  Assembly noted with profound  concern that  the structural  deficit  problem confronting  the Agency  portended an almost certain  decline in living conditions  of the Palestine refugees and therefore had possible consequences  for the peace process.  An extraordinary meeting was scheduled for September to address those issues.  The Commissioner-General  decided to undertake  a management review with the assistance of  external consultants to  energize institutional reforms  that would make the UNRWA more adaptable and  more responsive to the needs  of Palestine refugees. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>To promote self-reliance of the refugee community and ensure the longer-term viability of UNRWA programmes and services, the report states that the Agency sought to involve refugees actively in providing services and assuming greater responsibility for their own future.  As a result of institution-building and other initiatives, local committees managed over 60 per cent of the women's programme   centres as well as community rehabilitation and youth activity centres. <\/p><\/div>\n

<\/p>\n

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  The report states that the UNRWA's relationship with the Government of Jordan remained excellent, where the refugee  population, the largest in any field, continued to enjoy access to  government services and a relatively high standard of living.  The Government of Jordan reported expenditure of $263 million on services to Palestine refugees and displaced persons during the reporting period for education, fuel subsidies, health care, electricity subsidies, ration subsidies, security and defence,  social services, water and sewerage networks and other services in camps. <\/p><\/div>\n

<\/p>\n

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\t<\/span>"There was no improvement in  socio-economic conditions among the Palestine refugee population  in Lebanon, which continued to face limited access to public sector services, constraints on commercial activity and restrictions in many sectors of employment", the report states.  Poor living and  housing conditions in camps were reflected in high demand for special hardship assistance and shelter rehabilitation.  Initial steps were taken to improve environmental  health conditions  in eight camps, and the internal sewerage scheme in El-Buss camp was completed. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The August 1995 decision by the Government of Libya that  Palestinians should leave the country had special impact on Lebanon, where many of them had lived, the report continues.  Of concern  were new visa requirements for Palestine refugees in Lebanon and a  new rent law.  The Agency maintained a constructive relationship  with the Lebanese Government, which reported expenses on behalf of Palestine refugees of $297,000 on camp sites in the period under review.  Ongoing Agency programmes in Lebanon were budgeted  at $39.9 million for 1996. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The report states that the security  situation deteriorated markedly as a result of the escalated conflict in  Israeli- controlled south Lebanon.  Following an escalation of  violence, in which 300,000 Lebanese civilians fled  their homes  as  a  result of  fighting in south Lebanon, the UNRWA undertook an emergency  relief operation.  Basic food commodities and medical and other supplies  were distributed over a three-week period  to nearly 13,000  refugee families in the Saida  and Tyre  areas, with armed escort provided by the Â鶹APP Interim Force in Lebanon (UNIFIL).  <\/p><\/div>\n

<\/p>\n

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\t<\/span>The  Syrian  Government reported expenditures on behalf of  Palestine refugees of $37.8 million in  the reporting period, and the Agency's 1996 budget for ongoing programmes in  Syria was $27.3 million.  Particular attention was paid to the health sector, where the Agency cooperated with the Health Ministry in disease surveillance and family planning. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The UNRWA also maintained close cooperation with the Â鶹APP Educational, Scientific and  Cultural Organization (UNESCO) and a number of other Â鶹APP agencies, the report continues.  Special inter-agency initiatives during the reporting period included joint monitoring by the UNRWA and the Office of the Â鶹APP High Commissioner for Refugees (UNHCR) of the situation of Palestinians required to leave Libya, support by UNIFIL for UNRWA  operations in Lebanon and other matters.  The UNRWA also maintained  ongoing contacts with the League of Arab States,  the Organization of the Islamic Conference (OIC) and benefited from cooperation with local and international non-governmental organizations.<\/p><\/div>\n

<\/p>\n

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\t<\/span>Also before the Committee is the special report of the Commissioner-General of  the  UNRWA on  the critical state of  the  UNRWA's finances (document A\/51\/495), conveyed in a note of the  Secretary-General.  The report draws attention to the Agency's serious structural deficit, the impact of  austerity measures undertaken to reduce  that deficit on the quality of services to Palestine refugees, and the implications of reduced services for the stability of the region. <\/p><\/div>\n

<\/p>\n

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\t<\/span>In  his  note, the  Secretary-General  writes that funds pledged at  an extraordinary meeting of major donors and host governments held in Amman on 23 September would allow the Agency to meet minimum obligations for 1996.  However, the structural deficit would continue into future years unless the gap between the essential needs of Palestine refugees and resources is closed.  The Secretary- General emphasizes his support for the Commissioner-General's appeal for adequate funds  to bridge the  projected 1997 gap and deal with the Agency's deficit. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The Commissioner-General writes that for the  first time  in its history, the  UNRWA suffered continuing  shortfalls in  its regular  budget in recent years, due  mainly to stagnant  or declining  contributions and increasing needs, resulting from  demographic growth,  new refugee  registrations and inflation.  The deficit  and the  Agency's austerity  measures affected the quality of services  provided  to  the  3.3  million Palestine refugees registered with the Agency. <\/p><\/div>\n

\n

\n\t<\/span>At an extraordinary meeting of major donors and host countries, it had been pointed  out that in  light of  the UNRWA's unique role  in the region, the  deterioration  or reduction of its services  would be potentially destabilizing, the report states.  That would be immediately interpreted as reflecting a weakening of the commitment of the international community to resolve the problem of the Palestine refugees.<\/p><\/div>\n

<\/p>\n

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\t<\/span>When peace negotiations had been in full swing, the  report continues, the international community had recognized the importance of demonstrating the benefits of peace for Palestine refugees in the  Gaza Strip and West Bank, as well as in Jordan, Lebanon and  Syria.  Donors had generously responded to the Agency's Peace  Implementation Programme  by  providing funds for special projects in all  fields.   However, with  the peace  process having reached a more delicate  stage in its  evolution, it was more critical that Palestine  refugees be able to sustain their hopes for a successful outcome.<\/p><\/div>\n

<\/p>\n

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\t<\/span>Pledges at the Amman meeting totalled almost  $15 million, of which $11.25 million was  for the UNRWA's regular  budget,  the  Commissioner-General writes, which, together  with  promised  funds  subject  to  parliamentary approval, would  allow the Agency to  meet its minimum obligations for 1996.  It was hoped that funds  made  available  by the  international community, together  with  the  Agency's  internal  reforms,  would  do  away with the
\nstructural deficit and set the Agency back on the right track. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Also before  the Committee  is the  report of  the working group  on UNRWA financing  (document A\/51\/509),  containing information  on the origin and background of the working group, its activities during 1996, the financial situation of the UNRWA and concluding remarks. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The report states that two meetings of the working group were held on 13 September and 14 October, to consider recent developments in the UNRWA's financial situation and to  prepare the report to the Assembly.  The Agency ended the 1994-1995 biennium with an  adjusted deficit of $14.4 million in its regular budget.  The third consecutive annual deficit  reduced the Agency's working capital  by more than half, despite efforts adopted to bring income and  expenditure in line.  Cost-saving austerity measures imposed from 1993 to 1996 were now having a detrimental impact on the quality of services to the refugee population. <\/p><\/div>\n

<\/p>\n

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\t<\/span>Two meetings of major donor and host governments were held in Amman, on 8 and 9 May and 23 September 1996, to address the Agency's  financial situation, the report states.  About $14 million  was pledged in support  of the Agency's work in 1996. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The report  concludes with the working group's expression of concern for the financial situation facing the Agency at the end of  1996.  The depletion of its working  capital and the emergence of the structural deficit had serious implications for both the  Agency and  the Palestine refugees.<\/p><\/div>\n

\n

\n\t<\/span>It states, "The  working group feels that  the General Assembly  must be more actively engaged than in previous years in ensuring  that  UNRWA is given the resources it  needs to fulfil the mandate which the international community has given it",  particularly in view of the natural growth in  the refugee population, worsening socio-economic conditions and the potentially destabilizing effect  on an already volatile political situation of any significant reduction in the Agency's activities. <\/p><\/div>\n

<\/p>\n

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\t<\/span>The working group applauds steps already taken by the Commissioner-General to improve the  UNRWA's internal management.   It calls for greater clarity regarding harmonization of the UNRWA's  activities and the Palestinian Authority and host governments.    "In  the  meantime, the working group believes that  UNRWA  should  be  circumspect  about taking  on additional capital commitments which strain its existing resources and which will lead to recurrent  cost implications."  The report further states that continuation of chronic structural deficits could force the Agency to  make cuts and reductions in its core programme areas of education, health care and social services. <\/p><\/div>\n

<\/p>\n

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\t<\/span>Governments are urged to consider making additional  contributions to finance Agency deficits  and to ensure that support of emergency and special programmes, the Peace Implementation Programme, the European Gaza  Hospital Project and the costs of relocation of  the Agency's Vienna headquarters to the area of operations will  not divert  or decrease  contributions to the Agency's regular programmes.  <\/p>\n

\t<\/span>The  Secretary-General's  report on revenues derived from  Palestine refugees' properties (document  A\/51\/371) states that he  received a reply from Israel dated 3 May in response to his  request that  the Israeli Government provide information on the  steps  it  had taken to implement relevant provisions of Assembly resolution 50\/28 A to G of 6 December 1995, which called on Israel to render all facilities  and  assistance to  the Secretary-General in  protecting Arab property, assets and property rights in Israel  and to establish a fund for the receipt of income derived  on behalf of the rightful owners. <\/p><\/div>\n

<\/p>\n

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\t<\/span>In its reply,  Israel reiterates  that  while  the number  of resolutions regarding the UNRWA has  been reduced in the  past years from 10  to 7,  the content of those resolutions  remains  occupied  with political issues irrelevant to the work for which the UNRWA was  responsible, and thus detached from the new reality.  It states that the  UNRWA  can  play an important role in promoting the social and economic advancement foreseen in the agreements between Israel and the PLO, and looks forward to continuing to cooperate with the Agency.<\/p><\/div>\n

<\/p>\n

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\t<\/span>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\/51\/370), states that  in 1995-1996 Japan awarded 10 fellowships through the UNRWA.  The Government of Switzerland awarded scholarships to Palestine refugees through the UNRWA's scholarship programme.  Sixty-two students  graduated between 1993 and 1995; 221 students from the UNRWA area of  operation were still pursuing their university studies in 1995-1996.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The UNESCO granted  175 fellowships to Palestine refugee educational staff of the  UNRWA between  1981 and 1994 and offered  five  new  awards  to Palestinian  students since October 1995.  In  1995, the World Health Organization (WHO) received 43 applications from  the West  Bank and  Gaza Strip for  fellowships scheduled to begin  in late 1995.  Three applications submitted to the World  Intellectual Property  Organization (WIPO) to train UNRWA staff  members  were being  considered for courses conducted during 1995-1996 and two applications were being considered for 1996-1997.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Four scholarships were offered by the United World College of the Adriatic in Italy, Pearson College in Canada, Armand Hammer College in the United States and the Li Po Chun in Hong Kong in 1996.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Also before  the Committee is a report of the  Secretary-General on  the matter  of the  University  of  Jerusalem "Al-Quds"  for Palestine  refugees (document A\/51\/476).  The University's  establishment  had  first been requested by the Assembly in  its resolution 36\/144 G.  In his report, the Secretary-General reviews  his efforts to  complete a functional  feasibility study on  establishing  the proposed  university.    He requested  that  the Government of Israel  facilitate the visit of  a Â鶹APP expert,  who would  assist the Secretary-General  in the preparation of  that study.  The Acting Permanent Representative  of Israel had sent  a reply to that request in which Israel's opposition to the university was reiterated.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The  report of the Secretary-General  on persons displaced as  a result of June 1967  and subsequent  hostilities (document  A\/51\/369) reiterates  that the Agency was not  involved in any arrangements for the return of refugees, nor was it involved in any arrangements for the return of displaced persons who were not registered as refugees.  Its  information is based on  requests by returning registered refugees for transfer of their  entitlements for services to the areas to which they have returned and subsequent correction of records.  So far as is known  to the Agency, between  1 July 1995  and 30 June, 784 refugees registered  with the UNRWA returned  to the West Bank and 329 to the Gaza  Strip.  Thus, the estimated number of displaced registered refugees who  were known  by the  Agency to  have returned  to the  occupied territories since  June 1967  was about  15,280.   The Agency was  unable to estimate the total number of displaced inhabitants who had returned.<\/p>\n

\t<\/span>Statements<\/p><\/div>\n

<\/p>\n

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\t<\/span>PETER HANSEN, Commissioner-General for the UNRWA, said the Agency administered, with a  very large staff composed mainly of  Palestine refugees, an education and health system and a social support system, which touched on the lives of every Palestine refugee in the region. \n<\/p><\/div>\n

\n

\t<\/span>Because  of the Agency's services, there was  hardly a  country in the world  today with a  higher rate of literacy than the  Palestine refugee population, he  said.  While that quality of  literacy and high level of education reflected the quality of  the Agency's schools, it was also the result of the great motivation  of the Palestinian students.  The Agency's health system had achieved infant mortality rates lower than in any other Arab country. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Donors should recall that the conditions in which the refugees lived were extremely harsh, he continued.  He had never seen  refugees enduring  a greater level of suffering than the Palestine  refugees in Lebanon.  Theirs was  not just a physical deprivation.   Rather, it was the suffering of having to live a life without hope.   Life in  the Gaza  Strip, where the UNRWA now had its headquarters, also involved great levels  of hardship and deprivation.  The difficulties  of  maintaining  the historical  levels of services provided  to refugees  was becoming  more and  more difficult, and
\nefforts to reduce services due to  financial difficulties were often greeted with suspicion.  Some suspected an  "international plot" to withdraw the aid agency entirely. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>In the period  under  review, he said, the Agency had moved its headquarters  from  Vienna  to Gaza.  The Agency had now  overcome  the difficulties associated with the move and  was operating from that location.  Unfortunately, member  countries that had been  keen on  effecting that move had not provided  the  necessary funding.   The  Agency  still  needed $300 million to cover the cost of that move.   The Agency  had also undertaken a reorganization to achieve  higher levels  of  efficiency, which would be reported to donor countries during an upcoming meeting in Amman.
\n 
\n\t<\/span>During the period, there  had been strong ups  and downs in  the emotional climate of the region, he said.  Prior to 1996, high hopes and optimism had existed.  Since then, the climate had declined, reaching its nadir with  the events of February and March, which cost many  innocent lives.  In September of this year, conditions  worsened  considerably  with  the  outbreak of fighting in  areas of  Gaza  and the West Bank.  Those events, and the subsequent closures of  Gaza and the West Bank, had  severely affected the refugees. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said that living conditions and income had  declined fully 40 per  cent for  the  refugees   in  the  West   Bank  and   Gaza.    Unemployment and underemployment in Gaza were at 60 per cent.   More people were  unemployed than employed.  "The social fabric is  being torn, and  it is becoming more difficult to meet the needs  of the refugees under these circumstances", he said.  The Agency had also suffered the same difficulties that the refugees did, and the effect had been to diminish the effectiveness of the Agency.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The Israeli Government had made efforts  to minimize the  effects of its measures, he added, but it had a  long way  to go  to  fulfil  its entire obligations in the area.  The  Agency had been able to  launch job creation in the region, but there was  no solution possible  within the confines of humanitarian aid alone.  Only a  political solution could reimpose a degree of normalcy in the area.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Well over half of  the Palestine population lived  in Jordan, Lebanon and Syria, where the  Agency  expended more  than half  its budget,  Mr. Hansen said. The Agency was  having difficulty  even maintaining  normal levels of services.  The  Agency  was  involved  in  helping  redress  the  losses the refugees had suffered.   Unfortunately, the international community was not fully doing that.  The UNRWA's budget did receive support and had, in fact, been increasing,  but  its activities had not kept pace with  increasing needs. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said that  if the Agency  suffered  any  additional  deficits in  the future, services would have  to be cut  outright.  The Agency relied solely on contributions.  Unlike  a government, it  could not print  money.  "The Agency cannot go on  with deficits", he said.   "It cannot also  go on with austerity measures."    The latest  round  of  austerity measures had  been implemented in June.   Unfortunately, such measures  did not  save money in the long  run.  Savings on  vehicle  maintenance,  for example, would mean greater costs in the  future.  Austerity had  also meant that teachers could
\nnot be hired for schools that already existed.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>At a  meeting of  donors in  September, enough  funds had been  pledged to permit the  Agency to hobble to  the end of  1996, he said.   Next year, the Agency faced a deficit of some $60 million.  That  would result in the need not merely to cut back, but to amputate the limbs of the Agency.  "Consider how that will look  to the refugees", he suggested.   He hoped that it would be possible to avoid such  cuts and "amputations", and, more importantly, to
\navoid sending the refugees the message  that the international community had ceased to care. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>SVEIN AASS (Norway), Rapporteur of the  Working Group on the Financing of the UNRWA, said the Agency was facing an  unprecedented financial crisis.  Unless ways were found to address  its structural deficit,  the UNRWA would be  forced to further reduce its services.   Financial starvation might even put an end to  the Agency's work altogether.   It was shocking  that one  of the options put  forward by  the Secretary-General was  for the  Agency "to keep going until  all  available funds  were used  up, then  declare itself insolvent and go  out of business".   That was not a  feasible option, given the dire importance of UNRWA's services.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He recalled that, in an effort to address the crisis, the Commissioner-General had convened an extraordinary meeting for major  donors, host governments and the Palestinian Authority in September.   Despite the application of austerity measures, the UNRWA had  ended  the  1994-1995 biennium with an adjusted  deficit of $14.4 million  in its regular budget.  Contributions  from  donors lagged  behind the  Agency's  needs, which were increasing  due to inflation and  the   rising  numbers of UNRWA's beneficiaries.\n<\/p><\/div>\n

\n

\t<\/span>He urged all governments to make  generous contributions to the  Agency, so it could continue its services  uninterrupted and,  if possible, restore services cut as the result of the austerity measures.  Socio-economic conditions among the refugees were worsening.  In view of the potentially destabilizing effect any reduction in the  Agency's activities might have on an already  volatile  political  situation, he urged  the international community to increase its support.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>NASSER AL-KIDWA, Permanent  Observer for  Palestine,  said that  like any other  refugees, the  Palestine refugees had  inalienable  rights to their homes  and properties.  That fact had been annually  reaffirmed  by the General Assembly since 1948.  Further, displaced persons  had the right to return to the territory occupied by Israel,  and the  right to Palestinian nationality and citizenship.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said  the UNRWA performed valuable  work, which should continue until a definitive  solution to the problem was reached.     A  positive  and constructive relationship existed  between  the Palestinian  side  and the Agency at  all levels.  As  mentioned in  the Commissioner-General's report, there had been some positive political developments in the beginning of the most recent   reporting period.  However, the situation had since deteriorated.  The peace process now faced serious obstacles and the socio-economic conditions of the Palestinian people had declined to unprecedented
\nlow levels.  That decline  had  been the result of Israeli  practices, particularly the closure of the Palestinian territory, which had also impacted adversely on the Agency's ability to function.<\/p>\n

\t<\/span>He expressed appreciation to the host countries for their efforts  and contributions in carrying  the burden of  the Palestine refugees,  and to those who had  contributed  to  the  Agency's  budget.    He  appealed for continuing and augmented contributions.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>ROBERT FOWLER (Canada) said the UNRWA  was providing precious services for the refugees.  The international community  had a duty to  ensure that the gains in the Middle East peace process were  preserved, and to ensure that existing agreements and obligations were fulfilled.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The UNRWA had been making efforts to deal with its budgetary problems, he continued.  At the extraordinary meeting,  sufficient funds had been pledged to allow the Agency to overcome its financial situation  for the year.  He welcomed the  Commissioner-General's  efforts to address the structural problems faced by the Agency.   The Agency must be flexible  in its methods of delivering services.   The international donor base must be expanded to serve the needs of  the  refugees  and  to  demonstrate the international community's commitment to permanently resolving the refugee question.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said  that when  he visited the  Palestine refugees  he had  witnessed particularly  horrific  conditions  in Lebanon.    It  was  intolerable that successive generations of refugees suffered under  such conditions.  In  the interests of  peace, he urged Israel  to address  its security  concerns in ways that did not have such severe consequences  for the economic situation in the  occupied territories  and which  did not  impede the work of UNRWA
\nstaff.  The Agency played a  vital role in regard to the refugee question, and it deserved the support of  all members of the  international community interested in peace in the Middle East.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>HASAN ABU-NIMAH (Jordan)  said  that  solving  the  difficulties  of the Palestine refugees, which included  resolving their  right to  return or to compensation, was  the  main pillar  for  achieving  a lasting  Middle East peace.  The treaty between  Jordan and  Israel had  reaffirmed those rights, which was also the  reason the  Agency had  been created  in 1948.   It was vitally  important that  the UNRWA  continue its  mission.  To do so, the Agency required  broad support from the international community, so that shortfalls would not create a vacuum in which despair would dwell. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said his country was intimately involved in the  Palestinian issue.  It hosted about 40 per cent of  refugees registered with  the Agency, and was the second largest provider  of humanitarian  services, second  only to the Agency itself.  He  called  on  the  international  community  to support Jordan's and the Agency's efforts  to allow the Palestine  refugees to live in at least a minimal degree of decency. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said that the transfer of the Agency's office to Gaza had improved its performance in the  five regions  where it  operated.   Host countries and donors should increase their  contributions to keep pace with the 5 per cent increase in the number of refugees.   If that were not done,  financial problems could affect services and the dignity of the refugees.  A solution should be based on international law and already existing resolutions.   He reiterated his country's  support for the noble mission of  Mr. Hansen  and his staff, who were fulfilling their mission under very harsh conditions.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>BABUR HIZLAN  (Turkey) said  it was  obvious that  the deficit facing  the UNRWA had continued to increase.  It had now reached a critical point  that endangered the Agency's existence.  All  possible reductions had been  made.  Further reductions  would involve services already  being maintained at  the bare minimum  necessary.  The Agency  provided food, health, and education.  Who among the delegates  would decide which of those would  be reduced? he asked.   A special  effort by donors  and potential donors  at the  pledging conference on 5 December would be welcome.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He expressed deep  dismay at  the setbacks in the peace process.  His country ardently  supported  that process.  The ordeal of the Palestine refugees could only be ended by a peaceful settlement.  He  was prepared to work  with all parties committed to a just  solution  based on Security Council resolutions 242 (1967) and 338 (1973). \n<\/p><\/div>\n

\n

\t<\/span>TOSHIHIRO TAKAHASHI (Japan) said he appreciated the vital support the UNRWA provided  for the more than  3 million Palestine refugees, especially its  efforts during the closure of the West Bank and Gaza  Strip.  He welcomed the transfer of the UNRWA office to its area of operations.  His country actively supported international efforts to  achieve  a  lasting settlement.  He expressed concern that recent rising tension between Israel and the Palestinians was jeopardizing the peace process. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He  said it  was necessary  to  maintain  such practices  as safe  passage between the West  Bank  and the  Gaza Strip  and Israel.   The  continuing closure  of the  West  Bank and  Gaza  Strip were  imposing  great economic difficulty.  "While it is necessary for  Israel to ensure national  security, it must not do so by placing unreasonable burdens on the Palestine people", he said.  He hoped that  Israel would take immediate  measures to lift the closure. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>In  light of  the current  problems,  his  country had  recently provided, through the UNRWA, $7.3  million worth  of emergency  food aid to the Gaza Strip and West Bank.  Japan had, since  1993, disbursed about $230 million to Palestine refugees through the UNRWA.   The financial deficit facing the Agency should be addressed with  the greatest  urgency.   Supporting the refugees was an important means for expressing support for the Middle East peace  process.  While he  welcomed the efforts to reduce expenses, the root cause  of the  Agency's  problem demanded expansion of its donor base and enhancing transparency in its regular budget. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>HE YAFEI (China) welcomed the move of UNRWA's headquarters  from Vienna to Gaza.  The  move expressed UNRWA's commitment  to the peace and development of Palestine, and was a  symbol of  confidence  in  the Government of the Palestinian Authority.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The refugee problem in the Middle East remained  unsolved after  a long period of time, he continued.  The situation was now more  complex and volatile than before, which further worsened the situation of the refugees.  He hoped all concerned parties would  strengthen their cooperation with the Agency and engage in political negotiations to enable the Palestinian people to enjoy peace.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said his country favoured the  reform of the UNRWA to increase its capacity to serve the refugees.  The recently held  extraordinary meeting was a useful attempt to strengthen the Agency's cooperation with concerned parties.  His Government had supported the Agency's work for many years, and would continue to  do so in 1997.  He hoped that through  joint efforts, the UNRWA would overcome its financial difficulties and  expand its important
\nservices.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>HOSSAM ZAKI (Egypt) said that until  recently  the  peace process  had consistently  made  progress.  That fact had given  the  international community hope  that the matter of  the Palestine  refugees would eventually be settled.   However, such  hope was now  threatened with  extinction.  The Israeli Government's recent actions had damaged  the hope of the Palestinian people that they would be  able to establish  their own  State on their own land, with a corresponding return of refugees.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The services  of the  UNRWA to  the refugees  had been  critical over the years, he said.  He hoped moving the headquarters to Gaza would allow it to assume  an even  greater role in that  regard.   On the  Agency's critical financial situation, he said donor  and  pledging  States had  continually failed to pay their contributions.   The peace  process was not over yet.  The Palestinian people  faced  continuing  problems.  The international community must not abandon  the Palestinian people, nor leave them alone in a difficult financial, social and political situation.  Health institutions and other services must be established through voluntary contributions.  The UNRWA was foremost among  service agencies in dealing with  the Palestinian reality.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The closure of the Palestinian territories  by the Israeli Government  had resulted in numerous adverse effects, he  continued.  Closure also  affected the Agency adversely.  The  policy  must  be halted  and  closure  lifted unconditionally.  His country  strongly  supported  UNRWA's  work and had recently decided to double  its contributions to the  Agency.  He  called on other States and donors to assist the Palestinian people in achieving their full rights.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>YAKUBU ABDULAI  (Ghana) said  the  Agency  had  been  founded to  prevent starvation and  distress among Palestine refugees  and to  further peace and stability.  Supported by  voluntary contributions,  the  Agency  provided education, training, health, relief and other  services.  The Working Group on the Financing  of  the  UNRWA had  been  in effect  since  the  Agency's formation,  which  clearly  indicated  that  its  fiscal  situation was a continuing problem.  The Peace  Implementation  Programme  (PIP) had  been introduced to make the results of the peace process felt at a social level.  Under  PIP,  an  investment  programme  was  to  be  undertaken  to develop infrastructure, improve living conditions, and  create  employment opportunities in refugee communities.  Despite  dwindling resources,  the Agency had been called  upon to implement the Programme.  He hoped that the Agency's move  to Gaza would  help it  pursue its  mandate in a more cost-effective fashion.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He  said  it was  essential to save the Agency  from  bankruptcy  by replenishing  the General Fund  through additional support.  He hoped that the situation  described in the reports  before the  Committee would inspire all countries to contribute generously.   Support  for the UNRWA during  a crucial period  in the Middle East  peace process was also support for the advancement of peace.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>HUSNI ALMUDIR (Libya) condemned  the closing  of the  West Bank  and Gaza Strip by Israeli  authorities.   The  right of return  for the Palestine refugees  was the normal right of any person expelled  from his country.  There were no people in the world today that had suffered  more than the Palestinian people.  He said statements in  the  report  of the Commissioner-General maintained that Libya, in August 1995,  had stated that Palestine refugees should leave. There was no  evidence to support the claim that Libya had expelled or forced  those refugees  to leave.  His country supported their right  to return  to their  homeland and hoped the Agency would facilitate that right. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Calling  for  an  end  to  the  establishment  and  promotion  of  Israeli settlements in  occupied  territory,  he said  that practice  constituted a "time bomb in the region".  He called for  a halt  to those efforts,  and urged the Government of  Israel not to encourage  them.  Attracting zealots to those settlements would  only create an  obstacle to the return of the Palestine refugees to their land.  The  establishment of a democratic Palestinian State, whose capital would be Jerusalem, would put an end to the bloody wall that had been erected between Muslims and Jews.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>ABDULSALAM  KASSIM AL-AWADHI (Yemen)  said the Palestinian people had been denied the right to  return to their homes, despite the agreements that had been reached between Israel and the PLO.  He hoped the Government of Israel would honour its commitments.  He urged the  international community to aid the Agency, but it also had  to help the refugees return, as well as save an entire people from famine, disease and hunger. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He  said his country was pleased with the success of the work of  the Agency.  He welcomed the  transfer of its  headquarters to the Gaza Strip.  The Agency's  provision  of necessary  services  for  the refugees must be ensured.  He said the University of Jerusalem  "Al-Quds"  should be established.  Further, he  warned of  the very  serious repercussions that could result from the blockade that  had been  imposed on the West  Bank by Israel. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>FAROUK AL-ATTAR (Syria) said the Palestine  refugees had faced an economic embargo, the demolition of their  houses, and the closing of their schools.  At the same  time, the UNRWA  faced financial restriction in  performing its work.  On the international level, that reflected  the failure of the donor States to adequately support the Agency, which  was endangering all that had been accomplished in the five years since the Madrid conference.\n<\/p><\/div>\n

\n

\t<\/span>The Commissioner-General's report focused on the financial crisis of the Agency and its  effect on the Palestine refugees,  he said.  Services would be curtailed or eliminated and the  Commissioner- General warned  that any further reductions would be perceived as  the phasing out of the Agency.  General Assembly  resolutions provided  the right of Palestine refugees to return to the homes from  which they  were  expelled.   Any  measures that curtailed  the Agency's work in  returning the refugees to their homes would not further peace and security in the region. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said that the transfer of the Agency's  headquarters to the Gaza Strip should not  be  construed  by  the  international  community  as  a partial disengagement of  support for  the Agency,  which in turn would place more responsibility for the support of the  Palestine  refugees  on the host countries.  He opposed the Agency's  having  halted its  distribution  of certain  Russian items.  His concern  in that regard was that it, too, might be a harbinger of  a reduced role for  the Agency.  Some  steps being taken suggested  that there was a plan  to curtail the work of the Agency.  It had already  adopted austerity  measures,  which had  been increased  this year.  They had caused a  deterioration in the bare  minimum of services needed by the Palestine  refugees, which was incompatible  with the humanitarian objectives for which the Agency was founded.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>NGO QUANG XUAN (Viet  Nam) said  an immediate  and comprehensive solution must be found for the financial  difficulties and the structural deficit the Agency  faced.  The prolonged closures  imposed by  Israeli authorities had affected the Agency's operations  in a number of ways.  He demanded that the closures be lifted. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>The issue of Palestine  refugees, he said, could  only be tackled when the root of  the issue was addressed.  He noted with great concern the slow pace of  developments  in  the  peace  process,  and  the  failure  to establish comprehensive peace  in the region.   A political  solution alone would not bring an end to  the refugee  situation — it must go hand in hand with sustainable and socio- economic development. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>He said the Interim Agreement  of September 1995  and the  Declaration of Principles of  September 1993 must  be fully implemented.   He welcomed the resumption of negotiations between  the PLO and Israel.  If all parties were truly  committed to  implementing the  agreements, the  peace process could continue.  He welcomed international  assistance in all forms to support the noble cause of  the Palestinian people.  While donor fatigue  had appeared, the final victory  was close at hand.  The international community should continue its indispensable support for the  legitimate  cause of the Palestinian people.<\/p><\/div>\n

\n

\n\t<\/span>YAEL RUBINSTEIN  (Israel) expressed  appreciation for  UNRWA's efforts  in the  past year.  She  said that  former  Prime  Minister Yitzhak  Rabin had become a victim of the very peace he had created.  He had paid the ultimate price for his efforts  to bring about a better future for all the peoples of the Middle East.  Throughout the past  year, the  enemies of  peace had attempted to destroy  the foundations of peace which had been building for the better  part of the decade.  Israel had been rocked by a spate of Islamic fundamentalist  suicide  bombings  carried  out in the  heart of Israel's cities. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>She said that Prime Minister Benjamin  Netanyahu  had  reaffirmed his commitment to continue the  pursuit of peace with  Israel's neighbours.  Yet from its first day in office,  the new  Government had  been prejudged as being against the  peace process by the rest  of the world.   Instead of giving the Government  an opportunity to prove its commitment to peace and find its own way to proceed, Israel had been met with attempts to pressure it into making decisions through the use of threats and violence.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Mr. AL-ATTAR  (Syria) objected on a point of order.  He said the  item concerned Palestine refugees and the UNRWA report.  The speaker was addressing issues of no relevance  to the item.  She should limit her discussion to the item in front of the Committee.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Continuing,  Ms. Rubinstein  said Israel  was currently  taking  extensive measures  to  ease  the  closure  that  was  imposed  following  the suicide bombings.  While well aware of the economic hardships  of the closure on the Palestinian  people, she emphasized that the closure had not been enacted as a form of collective  punishment on the  Palestinian people.   It had been done instead  to  prevent further  terrorist  attacks  originating  in the autonomous areas.    It had  been  done  recently after receiving  concrete warnings from the Palestinian Authority  about potential suicide terrorist acts. <\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Israel would spare no effort to  help strengthen the Palestinian  economic infrastructure, she said.  Her country  was  proud of  its  good working relations with the UNRWA.  She expressed displeasure at  the fact that consideration  of the  UNRWA was  being  used as  a political  tool against Israel.  It was beyond her understanding why  the Â鶹APP, instead of passing a consensus resolution  praising  UNRWA's  important  humanitarian work,  felt compelled  to  pass  not  one but  six  resolutions with  strong political  connotations  irrelevant  to  the  work   of  the UNRWA.  Such
\nresolutions caused nothing  but disagreements between Members States  and offered nothing constructive to the resolution of the issue.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>She said  the  number of UNRWA resolutions should  be reduced  to  one, directly related to the Agency's humanitarian  tasks.  That would be more compatible with the essential need to refrain from  any reference to such issues as Jerusalem,  refugees and settlements that  Israel and the PLO had agreed would be dealt with bilaterally, within the framework of the present status negotiations.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>DAG WERNO HOLTER (Norway)  said the UNRWA received more than a quarter of his country's total economic  assistance to  the Palestinian  people.   The longterm solution  to the  UNRWA's plight  was located  outside the current donor group and inside the  UNRWA's organization.   He  called for  better burden-sharing among donors to  the Agency and appealed  to the oil-rich Gulf States to increase their contributions.<\/p><\/div>\n

<\/p>\n

\n

\t<\/span>Much could  and should be  done inside the UNRWA to get  more out of every dollar,  he continued.  The peace process  could only  succeed if it was viewed as yielding positive results on the ground.   It was  the  shared responsibility of  the international community to  allow the  Agency to play its vital role in that regard.\n<\/p><\/div>\n

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\t<\/span>ANWARUL KARIM CHOWDHURY (Bangladesh) said he  considered the survival of the Agency to be  critical to the survival  of the Palestinian people.  As indicated in the reports before the  Committee, the Agency had extended its activities to new  areas.  It  had helped  to support  the peace process by assisting in the holding of democratic  elections.  The Agency's involvement in various services had a powerful effect. <\/p><\/div>\n

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\t<\/span>He  said  that  one  constructive  step  had  been  the  establishment of microenterprise credit  programmes.  His country  was a  strong supporter of that  approach for  the developing  countries.  He urged streamlining the process of institutional  reform.  It was disquieting to learn that inadequate financial support  had hampered the work of the Agency, as had the effects  of Israeli policies.  The so-called security needs of a particular country should not compromise the needs of the Palestine refugees.<\/p><\/div>\n

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\t<\/span>AHMAD OMRAN  AL-OMRAN (United Arab  Emirates) said that  at the  same time the Agency was trying to improve its services, the Israeli authorities were trying  to obstruct its activities.  He noted with satisfaction the Agency's work  and  its  coordination  with  the  Palestinian  Authority  to provide educational, medical, and other services.   The chronic budget deficit was a concern.   The problem of the refugees was one of  the main Gordian knots on the international agenda.  A just and lasting solution would be to put an end to the status of the Palestinians as  refugees, by allowing them to return to their homes, or providing just compensation. <\/p><\/div>\n

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\t<\/span>DOUGLAS KEENE (United  States) confirmed his country's continuing  support for the UNRWA.  As the  Agency's largest single  donor, he noted that there had been progress towards closer cooperation  with major donors on budgetary issues.  While the Agency now had funds  for the current  year, it needed support.  However, most of the  resolutions  submitted had  not been as supportive of the  peace process as they should  be.  Efforts to create the conditions for a just and lasting peace should be redoubled.  The UNRWA's tasks  would evolve  as peace progressed.  Its work was a key element in moving the peace process forward. <\/p><\/div>\n

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\t<\/span>He said,  "No government is more aware than my own  of the importance  of direct negotiations between the parties to  solve outstanding issues."  As delegations considered  the resolutions  before the Committee, they should ask whether they wanted positive,   forward-looking support for a comprehensive and lasting peace, or whether  they wanted  to look backwards in an effort to apportion blame.<\/p><\/div>\n

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\t<\/span>NIALL HOLOHAN  (Ireland), on behalf of  the European  Union, and Bulgaria, Cyprus, Czech Republic, Hungary, Latvia, Lithuania, Malta, Poland,  Romania, Slovakia and  Slovenia, said that UNRWA's  performance had been remarkable.  It had supplied sustenance  and the essentials of  life, and also managed a significant proportion  of the infrastructure  available to the Palestinian people.  The adverse political climate  complicated the conditions in which the Agency  must operate.   Despite all the  obstacles, the  Agency had over the years improved the  social and  economic conditions for the refugees.  The Agency's recent move to the Gaza Strip would have beneficial effects and, in itself, constituted a tangible demonstration  of faith in the peace process.<\/p><\/div>\n

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\t<\/span>He  then turned  to the  matter  of  the Agency's  financial difficulties.  Rising  prices and increasing  numbers of  registered refugees  had not been met with  correspondingly increasing contributions, he  said.  He urged all Member States, particularly the wealthier States in the region, to contribute generously.  The European Union had committed to paying the UNRWA $130 million for 1996-1998, in addition to  contributions by individual  member  States of  the Union.  The Union as a whole was the largest donor to  the UNRWA, accounting for 43 per cent of  total contributions last year.<\/p><\/div>\n

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\t<\/span>Few would have predicted,  he continued, that the Agency would still be in operation a full 50 years after  its establishment.  It had been intended as a temporary measure,  not a  substitute  for a  political solution  to the refugee problem.   The UNRWA  was a vital element  in the mortar which held the fragile structure of the Middle East peace  process in place.  He called on the international  community to  give  it  full political and financial support.<\/p><\/div>\n

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\t<\/span>ETIENNE THEVOZ,  Observer for Switzerland,  said the current political and regional conditions did  not inspire  optimism for the  peace process.  The UNRWA now faced new  tasks, including  how to  meet increased  humanitarian needs under difficult  operational conditions, within the context of severe budgetary constraints.  The UNRWA was  doing remarkable work and  fulfilment of its programme  must be placed in  its political context.  The UNRWA was moving  in a  positive direction  on  structuring its financial management.  Budgetary and political  questions required better  decision-making methods.  The UNRWA  was an institution  on  which  millions  of Palestine  refugees relied.  His country supported the Agency and  welcomed its efforts towards structural reform.<\/p><\/div>\n

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\t<\/span>RENATO R. MARTINO, Observer  for the Holy See,  said the efforts  to bring peace and security to the  Middle East were to be  commended.  He  expressed concern  that the political  will for  bringing  peace  to the Israeli and Palestinian  peoples had deteriorated.   Violence and the breakdown of the dialogue  prevented  successful  resolution of  the  differences  of  those people.  Events  seemed to be moving away from peace, mutual  esteem and cooperation.  The closure of  the  West  Bank  had  contributed to  massive unemployment and underemployment and  had  adversely  affected  access to health care, sometimes with fatal results. <\/p><\/div>\n

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\t<\/span>He  said  that the  same problem affected freedom  of worship.   Although religious shrines in Jerusalem were open,  local Palestinians were unable to attend religious services in the  Holy City of  Jerusalem.  Jerusalem would always  be a  city belonging  to two peoples and three religions.  It was regarded  as equally  sacred by the  three  great monotheistic  religions – Judaism,  Christianity and Islam.  The larger question of Israeli settlements  in the  West Bank and Gaza must also be addressed.  The confiscation of land in the name of security could become an invitation  to injustice. <\/p><\/div>\n

<\/p>\n

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\t<\/span>He said it had been stated that the settlements and controlled access to them  was a significant cause of  the  fragmentation  of the  Palestinian polity.  It  had to  be addressed in negotiations.  He emphasized the necessity of intense and continued negotiations to bring about peace with justice, and condemned gestures of provocation and  the use of terrorism and violence.  However, any successful conclusion to the  egotiations would be in  vain  if adequate funds were not made available to the struggling communities of Palestinians in the Gaza Strip and the West Bank.<\/p><\/div>\n

<\/p>\n

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* *** *<\/p><\/div>\n

<\/p>\n

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