MINISTER FOR FOREIGN AFFAIRS H.E. Mr Kofi Annan Secretary General of the United Nations United Nations Headquarters New York, NY 10017 United States of America

The Hague, 23 June 1998

T-a^reply to your letter of 15 May 1998Jn_ which you draw attention to the precarious .financial situation of the United Nations Relief and Works Agency for Palestinian refugees in the Near East (UNRWA), I would like to inform you as follows.

The Netherlands Government shares your concern about UNRWA's very serious funding problem. The Netherlands is aware that UNRWA plays a crucial role, not only in humanitarian but also in political terms, since it symbolises the international community's concern for the plight of Palestinian refugees. The Netherlands has therefore always been one of the Agency's staunchest supporters, and it will continue to be so in the future. In 1997, the Netherlands Government therefore decided to increase its contribution to UNRWA's regular budget as from 1998 from NLG 10 million to NLG 11 million. Additional contributions for specific projects might be considered by the Netherlands Government this autumn.

Although it is understandable for UNRWA to approach the traditional donor countries for help in times of financial crisis, the Netherlands Government considers it essential that UNRWA's donor base be broadened, not only with regard to the present crisis situation but structurally. UNRWA should strive for a more equitable burden-sharing to achieve a healthier financial situation for the Agency.

Mr Jan Pronk, the Netherlands Minister for Development Cooperation, recently informed Mr Hansen, UNRWA's Commissioner-General, in similar terms of the Netherlands' position and policy vis-a-vis UNRWA. May I conclude by assuring you that the Netherlands Government will continue to give its closest attention and wholehearted support to UNRWA and the refugees in its care. We are more than willing to work with the United Nations to seek ways and means of improving UNRWA's situation, and of enabling it to fulfil its important mission.

Your Excellency, please accept the assurances of my highest consideration.

Hans van Mierlo Minister for Foreign Affairs of the Kingdom of the Netherlands