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The Chair, Pamela Mboya (Kenya), opened the first session of Working Group I to consider Agenda Item 3 (preparations for Conference). Secretary-General N'Dow introduced his Progress Report and an Executive Summary (A/CONF.165/PC.3/3 and Add.1). The US asked for clarification regarding sources of trust funding and monies received and pledged. Mr. N'Dow said a breakdown would be provided. He explained that the Habitat Foundation had resources which were borrowed to launch the preparatory process for Habitat II. These funds are to be replenished. There has been full transparency and conformity with expectations regarding use of the Foundations funds. The EU called for full transparency. An informal group is to be established to look at the financial question. Both documents will be considered after a report by the informal committee.

A report of the regional ministerial meetings on Conference preparations (A/CONF.165/PC.3/INF.3) was postponed. Nicholas You, Coordinator of the Global Best Practices Institute, introduced a report from the Dubai International Conference on Best Practices in Improving the Living Environment (A/CONF.165/PC.3/INF.4). He said the best examples will form a multi-media data base including an Internet web site and CD-Rom. Australia distributed a proposal that participants, including States and intergovernmental agencies, announce at Habitat II commitments to action by 2000.