Mr. Chairman,

The Chinese delegation wishes to express its gratitude to Secretary General Kofi Annan for his introduction of document A/58/6. It would also like to thank Mr. Mirmohammad, Chairman of the Committee for Program and Coordination and Ambassador Mselle, Chairman of the ACABQ for their related introductions. The Chinese delegation associates itself with the statement made by Morocco on behalf of the G-77 and China. On this occasion I would simply like to highlight the following points:

On the basis of the preliminary experience gained in preparing the program budget for the biennium 2002-2003 in the context of the reform process, the proposed program budget for the biennium 2004-2005 was again submitted in the results-based format, which provides that prior to the implementation of the program, objectives, expected accomplishments, indicators of achievement, performance measures and external factors must be identified specifically in addition to the listing of outputs and resource requirements. It is the view of the Chinese delegation that as an important tool for the Organization to implement fully and efficiently the goals set by its member states and the reforms, results-based budgeting will assist in a timely fashion the member states in their review of the program budget and determination of the overall level of the budget resources. The Chinese delegation welcomes this approach.

The Chinese delegation notes that the total expenditure of US$3.058 billion in the proposed program budget for the biennium2004-2005 represents a 5.8% increase against the $2.89 billion in the program budget for the biennium 2002-2003. The Chinese delegation expects the Organization to operate within the available resources by following the principle of aligning resource levels with requirements, taking into full consideration the member states' capacity to pay, keeping its resource growth under control and improving management and the cost effectiveness of resources.

The Chinese delegation is of the view that a reasonable allocation of resources is of paramount importance. We believe that in the context of limited overall resources, information and communication technology should be fully leveraged to effect drastic reductions in administration and management costs so that the United Nations can devote more resources to development, thus benefiting more countries, particularly the developing countries, and giving concrete expression to the spirit of the UN Charter. The ACABQ has made valuable recommendations on resource allocation, which warrant close attention and careful study by the Secretariat.

In the view of the Chinese delegation, the United Nations system as a whole should strive for the common goal of ensuring a logical and rational use of the resources provided by the member states, preventing waste in any form or manifestation and leveraging limited resources for maximum effect. The Chinese delegation hopes that budget and program managers will truly enhance their communication and cooperation, sharpen their awareness of the need for budget management and design well-conceived and feasible performance measures and expected accomplishments that ensure the timely termination of obsolete and ineffective outputs, which in turn will contribute to a comprehensive and effective delivery of the priority program activities identified by the member states. The Chinese delegation is confident that with the implementation of reforms proposed by the Secretary General, a brand new management culture will take hold in the UN Secretariat.

Mr. Chairman, the program budget for the biennium 2004-2005 is an important item on the GA agenda and a major focus of attention from the UN membership. During the 43rdsession of the CPC, it's programmatic aspects were exhaustively debated and many recommendations were submitted. The Chinese delegation hopes that future deliberations will be characterized by improved efficiency, pragmatism and flexibility so that the consideration of the budget can be concluded with high quality and efficiency.

Thank you, Mr. Chairman.