scr int $67 tho cio con due poi asi cut The Sta to the retu beca meas cove 4. pros nO-9r.-_. - -~. -~_ .....~------_. __.~- -~-- • •.~L_.,'-~ I 'IFOREWORD BYOLOFRYDBECK, COMMISSIONER-GENERAL OFUNRWA 1.AsIreviewtheconcerns thathaveoccupied meduringtheperiod1Juiy1984 to30June1985, t~standout:operating problems in·Lebanon andthefinancial crisisoftheAgency. Asregards Lebanon, thepastyearhasagainbrought widespread sUffering andhardship fortensofthousands ofrefugee families, many ofwhomhavelostlovedonesandonceagainhaveseenthedestruction oftheir homes. Thisreportreflects thetragiceventsinLebanon andthedifficult circumstances underwhichtheUNRWAstaffhascarried outitsmission there. I willgointosomewhat moredetailasregards ourfinancial crisisbecause Iwish allGovernments andindividuals tounderstand theimplications ofthatcrisisfor theAgency'$ future. 2.UNRWAisahumanitarian institution created byt~leGeneral Assembly toserve Palestine refuqees untilapolitical solution tothePalestine question isfound. TheAgencyprovides quasi-governmental education, healthandreliefservices toa population ofapproximately twomillion Palestine refugees located inJordan, Syria,Lebanon, theWestBankandGazaandisdeeplywovenintothefabricofits areaofoperations. Theseservices areprovided ,bypeople. Weemploymorethan 16,500schoolteachers, doctors, nurses, sanitation labourers, reliefworkers and others. Something over12,000ofouremployees areineducation, over90percent ofthemschoolteachers. Istressthisfactsothatreaders willunderstand that therearerelatively fewareasinwhichexpenditure canbepostponed orcutback without discharging staff. Infact,atcurrent levels, something over85percent ofUNRWAexpenses areinstaffcosts. Iamnottalking aboutcostsof international supervisory staff,ofwhomtherearejustoverlOOpIamtalking aboutthesalari~s ofareastaff,almostallofwhomarePalestine refugees themselves. 3.Intheforeword tomylastannualreport, InotedthattheAgencyexpected to scrapethrough 1984butthatIwasveryconcerned about1985.Earlyin1985,I informed Governments thatthefinancial situation lookedbleak. Therewasagapof $67million between ourexpected needs,basedonprogrammes roughly comparable to thoseof1984,andestimated income. Recognizing thattherewasnopossibility of closing agapofthatmagnitude Icutthebudgetsharply. Bycancelling all construction, slashing maintenance deeply, denying areastaffpayraisesthatwere dueandmakingotherreductions, thebudgetgapwasclosedto$27million. Atthat point, IwasabletogotoGovernments andsaythatIhadreduced thebudgetasfar asitcouldbereduced without instituting massreductions ofstaffordirectly cutting vitalservices torefugees. Iappealed toallMemberStatesforfunds. TheNordiccountries, Australia, Canada, Japanand,mostimportantly, theUnited States, gavemore.Despite thegenerosity ofthesecountries, theoverall response tomyappealwasdisappointing, andthelackofpositive action fromothersforced theAgencytomakefurther cuts.Thesecutsimpactdirectly onservices to refugees. Onthepositive side,theAgencyhasbenefited fromsomereduced costs because ofexchange rategains. Withthosesavings, andwithcontinuing austerity measures, todaywearestill$8million shortoftheestimated incomerequired to cover1985'salready reduced programme. 4.Turning to1986,Ihavetoexpress mydeepconcern abouttheAgency's prospects. Wearenowintheprocess ofconstructing thebudgetbasedona no-growth programme. Inordertopresent themostcurrent figures totheGeneral -ix-co as ref su H=: iCom .Jexe F~~ j~:: !greimus ~."car 1/of {our -)pop ~to joth;110th fiaqa ~indi ~recj .~6.I::t!~~v~jEast l.l~~Iand .~this ~subm 7. oft year Fina )1Pale :;I:~: ..~ .~ -.J :1 ~'I :.·.j'lIor 3. o Be Be 6• Ki re Of we Ai ki th Oi Ir
**Analysis**
The text appears to be a report on the financial situation of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and its operations in Lebanon. The report discusses the humanitarian challenges faced by the agency and the refugees it serves, as well as the financial difficulties it is experiencing. The text highlights the importance of the agency's staff, who are predominantly Palestine refugees themselves, and the difficulties of reducing costs without compromising the services provided to refugees.

**Category**
Humanitarian aid and relief, Education