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The Chair opened the morning session by stating that all work must be finished by next Wednesday afternoon. The Chair of Working Group II, Amb. de Silva (Sri Lanka) proposed establishing a Subgroup C. Delegates agreed.

SECTION A. INTRODUCTION: The Chair then invited delegates to resume consideration of paragraph 41 (furthering principal goals of Habitat II). The US, the Holy See, the EU, and the G-77/China supported an amended paragraph: "In Habitat II, Governments at all levels, the community and private sector considered how the achievement of the two principal goals of Adequate shelter for all and Sustainable human settlements development in an urbanizing world can be furthered at the local level through an enabling process in which individuals, families and their communities play a central role. This is what is special about the Habitat II Global Plan of Action and its strategies for implementation. Implementation of these measures will need to be adapted to the specific situation of each country and community."

In 42 (strategy of the GPA), the G-77/China, supported by Local Authorities, proposed that governments at all levels "work with each other, in their own communities, to determine collectively their future and decide on priorities for action to identify and allocate resources fairly to build a partnership to build common goals." China proposed "sustainable development, including sustained growth," but the US objected. The informal working group will continue consideration of references to "sustainable growth."

The EU, supported by the US, proposed a new 42(a) noting that enablement creates "the situation in which the full potential and resources of all actors in the shelter production and improvement process are mobilized." Delegates accepted G-77/China amendments in 42(a) (conditions to exercise rights and responsibilities), noting that rights and responsibilities are exercised "equally" and removing the reference to "equitably" improving environments. Japan, supported by UNICEF and Norway, proposed a reference to children, but India, the G-77/China, and Local Authorities objected.

In 42(b) (building partnerships for sustainable development), delegates postponed a decision on the G-77/China-proposed reference to "sustained economic growth." In 42(c) (conditions for self-improvement), delegates accepted the G-77/China and US proposal to delete the reference to "Government." Delegates agreed to add the G-77/China-proposed new 42(d) noting that enablement creates "the conditions for enhancing international cooperation."

SECTION B. ADEQUATE SHELTER FOR ALL: In paragraph 43 (definition of adequate shelter), delegates added the following aspects to the definition: physical accessibility (US); including security of tenure (G-77/China); heating (Canada); suitable environmental quality (Israel) and other health-related factors (US); and accessible location (Canada). They noted that adequacy depends on cultural, social, environmental and economic factors (EU). They also noted that adequacy should be determined in consultation (EU) and that gender- and age-specific factors should be considered (US). Delegates began considering amendments offered by organizations. The Holy See, Egypt and Jordan supported modified text from the Local Authorities regarding mental, emotional and spiritual well-being in shelters. The G-77/China asked the Chair how to use the compilation of amendments from organizations. The Chair suggested that only those supported by delegates would be considered. The US opposed the Local Authorities amendment.

Delegates transferred consideration of 44 (right to housing) to a small group that will discuss all text regarding the right to housing. In 45 (shelter strategy based on an enabling approach), delegates added text noting that management of resources must be "people-centred (EU)" and "environmentally (Canada and EU)" sound. Discussion of the G-77/China reference to "sustained economic growth" was transferred to the informal group considering similar references in Section A (Introduction).

In 46 (enabling markets, the primary housing delivery mechanism, to perform), delegates included an Australian-proposed reference to private, public and community rental sectors. The EU agreed to retain the list of components of shelter delivery systems at the request of the G-77/China. A US-proposed reference to special attention to women who are inhibited from participation in shelter markets was added. Israel reformulated a US proposal noting that actions including, where appropriate, market-based incentives and compensatory measures, are recommended.

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