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The Chair opened the morning session by reiterating that previously agreed provisions would not be re-opened. He asked delegations to communicate through their regional groupings.

E. International cooperation and coordination: In 145bis (new forms of partnerships), delegates agreed to a redraft by the G-77/CHINA, in consultation with the LOCAL AUTHORITIES, recognizing complementary forms of decentralized cooperation between and among local authorities and their participation in international cooperation within the legal frameworks of each country. In 146, AUSTRALIA reported that the drafting group is considering text that recognizes productivity in the housing sector. It also states that achievement of Habitat II’s goals would be facilitated by, inter alia, action on questions regarding the financing of development, external debt, international trade and transfer of technology to developing countries.

In 147(b) (macroeconomic policies), the CHAIR proposed calling for policies conducive to “economic development, social development and environmental protection, as components of sustainable development.” The G-77/CHINA reserved the right to return to the text once similar references are resolved.

In 148(d) (local authorities and financial markets), the G-77/CHINA proposed to delete NGOs from a reference to increasing the ability to link directly with global capital markets. The US supported retaining the reference. LOCAL AUTHORITIES said that developing country local authorities suffer from a double standard because they cannot access financial capital markets. The G-77/CHINA, the EU and the US will consult further. In 148(e) (investments in shelter and infrastructure), the WOMEN’S CAUCUS proposed language from the Beijing Declaration on ensuring compliance with national laws by the private sector, including transnational corporations. The US proposed including “human rights,” but the G-77/CHINA objected.

In 148(f) (impact of international migration), MEXICO deleted the reference to “negative” impacts. CANADA added “documented” migrants, but the PHILIPPINES objected. The G-77/CHINA proposed a redraft calling for international cooperation to promote respect for the rights of migrants, particularly by ensuring decent social conditions, equitable wages and adequate working conditions. In 148(g) (support to refugees), the US suggested that settlements “should preferably” be in the land of origin. The G-77/CHINA proposed that repatriation be “in safety and dignity.” The EU requested time to consult.

In 149 (enhancing financial resources), the G-77/CHINA noted that the human settlements sector is eligible for financing like other sectors and included a specific reference to multilateral financial institutions. The US said substantial financing already exists. The US, supported by the G-77/CHINA, later proposed accepting the original text without changes. The EU requested the right to revisit the text once all related text is resolved.

In 150 (mobilization of financial resources), the US proposed that additional financial resources be “from various sources.” The US and EU proposed retaining 150(d) (striving to fulfill the 0.7% GNP ODA target) and deleting 150(e) (achieving the agreed target). The G-77/CHINA proposed the reverse. AUSTRALIA deleted the reference to 0.15% GNP to least developed countries (LDCs) in 150(d). BANGLADESH suggested raising the target to 1.4% GNP. The US, supported by the EU and JAPAN, stated it is not likely that positions on the target will change at Habitat II. The US proposed a small group to examine Rio language. NORWAY insisted on the LDC target. The G-77/CHINA agreed to use 150(d), but added reference to the “agreed” target and language on human settlements. The US stated that is has not accepted targets. The CHAIR proposed adopting “mental” brackets on 150(d) with the G-77/CHINA’s changes while consultations take place. BENIN proposed adopting the text with reservations. The US requested brackets and consultations. NORWAY said the issue should be dealt with by the full group. The CHAIR noted mental brackets, which will be reviewed Friday based on Thursday evening consultations.

In 150(h) (partnerships), delegates accepted an EU proposal encouraging multilateral and bilateral donors to support countries, particularly developing countries, in pursuing enabling strategies. In 150(j) (South-South cooperation), the G- 77/CHINA and the US preferred the original text. The EU proposed deleting references to triangular cooperation and partnerships between developed and developing countries. Both references were retained.

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