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12.01.2005
  UN going on Shutdown
UNITED NATIONS (AP) -- The United Nations could be forced to delay staff salaries or cut back some operations if a dispute over reform keeps member states from adopting a 2006-2007 budget by Dec. 31, a senior official said Tuesday.

Warren Sach, the top U.N. budget official, rejected the notion of a complete U.N. shutdown but said it was possible that salaries might not be paid in full or on time and the U.N. might have to borrow from peacekeeping missions or freeze purchases to close a potential shortfall.

"There is no clear, easy way to work around a situation where more money has to go out than comes in," Sach told reporters in a briefing, adding later: "This place doesn't run on air, it runs on money."

The threat of a budget crisis arose last week when U.S. Ambassador John Bolton said the U.N. should consider adopting an interim budget, possibly for three months, while diplomats hammer out a contentious reform package.

The United States pays 22 percent of the U.N.'s regular budget, which must be adopted by consensus. While Bolton has been careful not to tie the reforms directly to the budget, he argues that by deciding the budget now, many reforms that it wants would essentially be frozen.

"Right now our focus is achieving these management reforms," U.S. mission spokesman Benjamin Chang said Tuesday evening, refusing to elaborate on the U.S. plans.

 
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