Mr. President,

1. I have the honor to introduce, on behalf of the Group of 77 and China, at this 107th plenary session of the United Nations General Assembly, draft resolution A/68/L.42/Rev.1, entitled "Enhancement of the administration and financial functioning of the United Nations".

2. In recent years, many Permanent Missions of Member and Observers States to the United Nations and their staff have been seriously affected and even humilliated by the arbitrary decisions of several banking institutions in the City of New York, to abruptly close their bank accounts, therefore, refusing to continue to provide services to them. As a result, the dignity and the normal functioning of the affected Permanent Missions and the United Nations as whole have been negatively impacted.

3. This unusual situation is far from being in line with the facilities that have to be assured to Permanent Missions to the United Nations under the Host Country Agreement and the 1961 Vienna Convention on Diplomatic Relations.

4. Considering the graveness of the situation and the number of Missions affected, the Group of 77 and China deemed it necessary to present a draft resolution with the objective to achieve a long-term solution to the problem. On April this year, a process of informal consultations with the whole UN membership started. It is important to underscore that all concerned parties participated and contributed to the draft resolution with a constructive and cooperative spirit. We recognize the engagement of the host country of the United Nations, who has the regulatory power over the banking system, and trust that engagement will continue.

Mr. President,

5. After four months of consultations, a revised version of draft resolution L42 was agreed informally and it is now under consideration of this General Assembly. Allow me to highlight that the draft recognizes the problem and notes with concern the difficulties experienced by the affected Permanent Missions and their staff, and therefore, requests the Secretary General to report to the General Assembly on the issue and its impact on the adequate functioning of said Permanent Missions.

6. The draft resolution also requests the Secretary-General to report to the General Assembly on the financial relations of the United Nations Secretariat with the banking institutions in the City of New York, and provide Member and Observer States with information on alternative options regarding banking services in the City of New York.

7. Furthermore, the draft resolution requests the host country to take, as soon as possible, additional measures to assist the Permanent Missions accredited to the United Nations and their staff to obtain appropriate banking services; and also stresses the importance of ensuring confidentiality of personal data and information of persons affected by the closure of accounts, inviting the host country to submit relevant information on the norms and regulations applicable to the banking system.

Mr. President,

8. In conclusion, the draft resolution under consideration of this General Assembly will allow the Organization to gain knowledge of the magnitude of the problem and its consequences, and will certainly contribute to taking the necessary measures. The Group of 77 and China looks forward to adopting draft resolution L42 by consensus and to following up on the matter during the sixty-ninth session, as a first step towards a much-needed permanent solution.

I thank you.