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PROGRAMME AND BUDGET: The Secretariat presented the subject as contained in document A/AC.241/46. Costa Rica, Panama and Cuba sought clarification on several issues in the programme of work, including the criteria to be followed to implement the programme before the GM begins functioning, the cost of implementing the CCD and the approval of expenditures of the two trust funds. The UK and Antigua and Barbuda suggested that the Interim Secretariat's organigram and responsibilities may provide an idea of the permanent secretariat's staff requirements and functions. Switzerland and Argentina lamented that responsibility on the subject was getting handed over from one body to another. The Secretariat said it could only provide an outline of the format to be used in preparing the anticipated budgets because other ongoing negotiations must be completed first. The Vice-Chair proposed a draft decision that requests the Secretariat to prepare a revised programme and budget for the period following COP-1, for the INCD session immediately preceding COP-1. The draft decision is expected to be circulated Tuesday morning.

FINANCIAL RULES OF THE COP: Delegates resumed consideration of the financial rules as contained in document A/AC.241/45. Several delegates suggested reformulations of Rule 6 defining conditions under which the head of the PS may transfer funds between budget lines. At issue were what rules, institutional authority and limits, if any, should apply. Uganda and Benin called for use of UN rules and transfers in accordance with the same. Canada, supported by several countries, said transfers should be up to limits decided by the COP. Germany supported language setting specific numerical limits. The UK said to use limits COP may decide. The understanding should be that the COP decision would be by consensus. Bangladesh noted that the rule determining the method of decision had not been agreed. Cuba said authorization should be from a body designated by COP. The Secretariat said UN rules did not appear to specify procedures for budget line transfers or appropriate authorities, so referring to UN rules would likely place the decision with the COP. The Chair asked the Secretariat to compile the various reformulations for consideration Wednesday.

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