Today I would like to comment on some of the results of the Technical Assistance and Co-operation Committee (TACC). I will also briefly address a few other topics, including the recent resumption of Agency inspections in Iraq and our planning for the Agency's 2004-2005 programme and budget.
TECHNICAL CO-OPERATION PROGRAMME
The TACC reviewed the draft TC programme for 2003-2004 and recommended it to the Board for approval. In addition, the committee recommended the approval of TC programme funding for 2003.
Areas of Activity
As discussed during the TACC meeting, the TC programme is a principal mechanism for expanding the contribution that nuclear technologies make to peace and development. At the World Summit on Sustainable Development in Johannesburg earlier this year, the Agency was able to highlight contributions that we make - through both our TC and regular budget programmes - to four of the major issues addressed by the Summit: water, energy, health and agriculture. A number of examples of these Agency contributions were presented earlier this week. Our report on the WSSD, GOV/INF/2002/15, also provides more detail on matters of Agency interest.
Programme Implementation
Regarding TC programme implementation, I am pleased to report that the delivery of services, training and equipment is progressing at a similar rate to last year, when we reported a record performance. One measure of this progress is the level of new obligations, which at the end of October was more than $63 million. As discussed at the TACC meeting, the impact of TC programme implementation is augmented through our partnerships with other international organizations, non-traditional donors and recipient States themselves.
Funding
Regarding TC funding, I would reiterate that Member States will all have to make a concerted effort if we hope to achieve the 85% Rate of Attainment set for 2002. As of last Friday, payments to the TCF had totalled only 78% of the target. And we will need much better participation from countries that do not pay their full share, or do not contribute at all, if we are to meet the 2003 Rate of Attainment of 90%, based on a TCF target for next year of $74.75 million, as agreed at this year's General Conference.
In addition to these voluntary contributions, I have often mentioned my concern that many countries are in arrears in their payment of Assessed Programme Costs (APCs). In this regard, and as requested by the Board, we have applied the "due account" principle in a more consistent manner this year, to take into account the pattern and level of payment by recipient States of their target share and APCs. I am pleased that this effort appears to be achieving results, and that many Member States that are in arrears are making efforts to pay them off.
Safeguards Agreements and Additional Protocols
The Board may recall that Albania, before it became a party to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) in 1990, had already concluded a comprehensive safeguards agreement. The Board is requested, in document GOV/2002/54, to concur that this safeguards agreement satisfies the requirements for an agreement pursuant to Article III of the NPT. A safeguards agreement for the United Arab Emirates is also before the Board for approval, as are two additional protocols - one for the Democratic Republic of the Congo, and one for Malta.
Resumption of Inspections in Iraq
As you are aware, the resumption of inspections in Iraq has been the subject of intensive diplomatic effort in the last few months. These efforts have culminated in the acceptance by Iraq of the resumption of inspections without conditions, and in the adoption of Security Council resolution 1441 on 8 November.
The new Security Council resolution, inter alia, affirms the unified resolve of the Council to fully support the inspection process; it grants additional authority to the inspecting organizations - the United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) and the IAEA - in a number of areas, including immediate access to all sites in Iraq without distinction, the right to determine the modalities and locations for interviewing relevant persons, and the ability to freeze activities during the inspection of a site. It also encourages all States to provide timely information to the inspecting organizations that is relevant to their mandate, with a view to improving inspection effectiveness.
Last week, I joined the Executive Chairman of UNMOVIC in leading an advance team to Baghdad. We had a series of meetings at both the technical and political levels. The meetings were business-like and constructive; the Iraqi counterparts expressed their commitment to fully co-operate at all levels with the inspecting organizations. Iraq also expressed its intention to submit a currently accurate, full and complete declaration by 8 December, as required by the new Security Council resolution.
I am pleased to report that the first inspections by the IAEA and UNMOVIC began yesterday, with the co-operation of Iraq. This is a good beginning, and I hope full co-operation will continue throughout the inspection process. The two inspecting organizations will update the Security Council sixty days after the first inspection, as required by the resolution. Naturally, the Agency will make every effort to effectively discharge its mandate, subject to full co-operation by Iraq, with the aim of bringing to full and verified compliance the disarmament process required by the Security Council.
Status of Safeguards Agreement with the Democratic People's Republic of Korea
Since 1993, the Agency has been unable to fully implement its comprehensive safeguards agreement with the Democratic People's Republic of Korea (DPRK). Due to a lack of access to information and sites, we continue to be unable to verify that the DPRK has made a complete and correct declaration of its nuclear material that is subject to Agency safeguards under its NPT safeguards agreement.
Reports in mid-October suggested that the DPRK has in addition been working on an undeclared programme to enrich uranium. We promptly asked the DPRK to confirm these reports and provide all relevant information. We also expressed the need to discuss, at a senior level, this and all other longstanding issues relevant to the DPRK's compliance with its obligations under the NPT safeguards agreement. We have yet to receive a response.
Clearly, the existence of such a programme would be a matter of deep concern to all. Under the DPRK's NPT safeguards agreement, if such an enrichment programme exists, it has to be declared to the Agency and must be subject to safeguards to ensure its peaceful nature. I do hope that the DPRK will respond to our inquiry without further delay - pursuant to its obligation under Article 3 of its safeguards agreement to co-operate in the implementation of that agreement. I also hope that the DPRK will soon begin a senior level discussion with the Agency on requirements and modalities for compliance with its NPT safeguards agreement.
Convention on the Physical Protection of Nuclear Material
I regret to report that the group preparing a draft amendment to the Convention on the Physical Protection of Nuclear Material (CPPNM), with a view to strengthening that convention, could not yet reach an agreement when it met again here in Vienna earlier this month. Given the need and priority of strengthening the physical protection of nuclear material and facilities, particularly in light of the events of last year, this is a matter of some disappointment. The group plans to hold a final meeting next March, with separate subgroups working in the meantime to resolve specific issues. I would urge all Member States to redouble their efforts to ensure that all remaining points of disagreement are resolved without further delay.
Conference on the Security of Radiation Sources
In the area of security, I should also mention that the Agency is organizing an International Conference on the Security of Radiation Sources to be held in Vienna next March with the co-sponsorship of the Russian Federation and the United States of America. We hope through this conference to raise awareness of key issues related to the potential malevolent use of radiation sources, and to discuss measures that would diminish the likelihood of such threats occurring.
2004-2005 PROGRAMME AND BUDGET
The draft programme and budget for 2004-2005 that will soon be circulated to Member States foresees the need for budgetary growth in nearly all areas of Agency activity. As you know, I have been saying for some time that the Agency can no longer continue with a policy of zero real growth. The most severe impact of that policy is in the area of safeguards, which is annually underfunded by at least $20 million in the regular budget, despite expanding responsibilities - and where, without additional resources in the next biennium, we will no longer be able to guarantee credible safeguards. The impact of this policy is also felt to varying degrees in the areas of nuclear safety and security, nuclear energy, nuclear applications and the management of technical co-operation.
The details of our programme and budget proposals for 2004-2005 will be presented, as usual, in a kick-off meeting early next month, and will be discussed at the meeting of the Programme and Budget Committee in January.
In connection with the draft programme and budget for the next biennium, I should report that the external management consultant (Mannet) - which we engaged through extrabudgetary resources to conduct a review of existing Agency management processes - has submitted its report to the Agency. Copies of the report have been made available. The Agency was commended for its consistent responsiveness to its Member States, its willingness to be introspective and self-critical, its willingness to engage in a reform process and its performance under the stress of an expanding programme combined with the challenge of zero real growth. A number of areas for improvement were highlighted, including: the simplification of some management processes for greater consistency across the house; the modernization of support services and delivery mechanisms; and the development of a comprehensive and integrated change management strategy. We intend to follow up on these recommendations.
But a key conclusion of the external consultant, which validates previous findings of our internal and external auditors, is that the mechanisms for identifying and achieving cost savings are in place - and, wherever possible, the Agency has already identified and achieved cost savings. However, the consultant emphasized that a sustained focus on identifying savings, under the stress of a zero real growth budget, had been counterproductive - by hampering sensible investments in people, processes and modernized support systems. The proper focus, according to the report, should be on measures to enhance effectiveness and efficiency in meeting Member State needs and interests - which, in the long term, would enhance quality and achieve savings. In addition, the report stated that our excessive reliance on extrabudgetary resources - as a result of the zero growth policy - has impeded aspects of the Agency's operation by distorting priorities and hampering our ability to plan effectively.
CONCLUSION
The Agency is assuming rapidly growing responsibilities with significant implications in practically all areas of our work, including verification, safety and security, and sustainable development. This clearly means that we cannot continue business as usual. We need additional resources, and we need your full backing and support. This means a close partnership between the Secretariat and Member States, which I trust will continue to be strengthened.