It gives me great pleasure to deliver this statement on behalf of His Excellency Rene Harris, President and Minister for Foreign Affairs of the Republic of Nauru, who had to cancel his trip to New York at the last minute due to pressing matters at home. President Harris has asked me to convey to Mr. Julian Hunte warmest congratulations on his assumption of the stewardship of the Assembly. As a small island developing State, Nauru is extremely proud to be associated with the Caribbean Community on Mr. Hunte’s marvellous achievement, which gives us hope that we in the Pacific will also have the opportunity to preside over the Assembly. My delegation would like, through him, to commend His Excellency Mr. Jan Kavan, President of the General Assembly at its fifty-seventh session, for his excellent leadership and the great efforts that he made, particularly in tackling the difficult issues that have plagued the revitalization of the General Assembly as the premier organ of the United Nations. The President has pledged to continue the good work that has been done in these areas, and he can count on Nauru’s full cooperation. Peace and security — or, more correctly, the lack of it — is still the main focus of the United Nations 58 years after its inception. In the past 24 months, we have seen the internationalization of terrorism manifest itself out of a cocktail of hatred, desperation and fanaticism that has spread its tentacles from the Middle East into the international arena. It is unconventional, clandestine, and indiscriminate with respect to its victims. We are also seeing an increase in the proliferation of weapons of mass destruction after a period of relative calm, and this is further exacerbating the situation. The sum of these two nightmarish threats is a cause for concern, and States that feel uniquely vulnerable to terrorist acts are considering the real possibility of terrorists gaining access to weapons of mass destruction. That scenario has forced such States to develop the antidote of unilateral action primed with a pre-emptive strike policy. We saw it in action in Afghanistan and, six months ago in Iraq, just as President Bush said we would if the Security Council failed to walk the talk of resolution 1441 (2002), which called for the disarmament by Iraq of its weapons of mass destruction. Nauru is disappointed that President Bush did not refer in his statement last week to the status of the coalition’s search for stockpiles of these weapons, and we are puzzled as to why it is hard to find them when intelligence indicated that the Iraqis could arm and unleash them so as to hit the United Kingdom within 45 minutes. My delegation considers the antidote to which I referred to be the catalyst in the new wave of nuclear weapons proliferation, and it is not a coincidence that the countries singled out as part of the “axis of evil” are being accused of developing nuclear weapons. Nauru joins the appeal to the countries concerned to observe their obligations under the Treaty on the Non- Proliferation of Nuclear Weapons and to allow the International Atomic Energy Agency to carry out inspections and verify that nuclear weapons are not being developed. In all of this, we are certain of one thing: that the major casualty of the current state of affairs is the innocence of the United Nations, which was mortally wounded in Baghdad when the lives of 22 dedicated United Nations servants were lost, including that of the 22 revered Sergio Vieira de Mello, and more than 100 were injured. The people of Nauru join the United Nations family in mourning the victims of that tragedy, and our heartfelt condolences go to the bereaved families. That despicable act of terror has cast a shadow over the safety and security of United Nations personnel everywhere. The clarity of its emblem, which stood for tolerance, hope and impartiality and which had acted as a shield against attack, may have been blurred by its subservient role to the administering force in Iraq. In the light of the facts before us, Nauru fully agrees with the assessment made by the Secretary- General, Mr. Kofi Annan, in his bold and gutsy statement that the Organization has “come to a fork in the road” and that we are in a moment of time that is “no less decisive than 1945 itself, when the United Nations was founded.” (A/58/PV.7, p. 3) Nauru fully supports the proposal to establish a high-level panel of eminent personalities to review threats to peace and security and other global challenges insofar as these may influence or be connected with such threats. Nauru strongly believes in multilateralism as a key tool in resolving contemporary problems in all of their complexity. The Security Council should be at the centre of our collective efforts in maintaining peace and resolving conflict. At the same time, the Council must have at its disposal the means of making evaluations and taking collective action. Most importantly, it must have the will to act quickly and decisively, not only to threats to peace and security, but to genocide and other massive violations of human rights. Nauru is pleased to see the rapid progression towards making the International Criminal Court operational since its Statute came into force in July 2001. We believe that the objectives of the Court make it a useful addition to the international tool kit for the preservation of peace, as perpetrators of atrocious acts in armed conflict have been put on notice that they will be held accountable for their acts or omissions. As a small island developing State in the Pacific Ocean, Nauru aligns itself with the statements of the leaders of the Pacific nations who have spoken before me on the concerns and challenges that we, the small- island-big-ocean developing States are facing, now and in the future. Nauru bears all the unique characteristics of a small island State, given our small size, in terms of both land area and population, our remoteness and our vulnerability to exogenous forces, be they man-made or natural. In 1994, the world community agreed that small island developing States warranted special consideration with regard to their economic and social development because of the unique set of characteristics that are inherent in each island country, and it was to address those unique problems that the Barbados Plan of Action was created. As His Royal Highness the Prime Minister of Tonga stated in his intervention, the road to sustainable development for small island developing States is posted with signs of undertakings, as we marched from Barbados in 1994 to New York in 1999 for the five- year review, then on to Monterrey in 2002 for the International Conference on Financing for Development, where more signs were posted saying that internal self-help, good governance and trade were the key to poverty alleviation, and that subscription to those cures would provide the way for developed countries to come in and help. Most, if not all, of the small island developing States have been taking this medicine for a long time, and we have yet to see the doctor. In Johannesburg, a whole chapter was devoted to the cause of the small island developing States. In April of this year, the Commission on Sustainable Development paved the way for an international meeting to be held in Mauritius in 2004. Yet despite all these signs of good intentions, the reality is that, when small island developing States try to see that these decisions or undertakings are reflected in other international forums, our proposals in most cases are either rejected or rendered impotent after intense and difficult negotiations. The Cancún meeting is a good example, as is the recent meeting of Convention bodies such as the Eighth Conference of the Parties to the United Nations Framework Convention on Climate Change in New Delhi in 2002, and the Sixth Conference of the Parties to the United Nations Convention to Combat Desertification, held in Havana recently. This undesirable situation needs to be addressed if small island developing States are to benefit from the positive outcomes of international meetings or review conferences. 23 As we march towards Mauritius, small island developing States will have to endure due process in the Second Committee and at the twelfth session of the Commission on Sustainable Development in order to establish administrative and financial norms for the international meeting. My delegation suspects that there will be many bumps and detours on the way, but our hope is that, at the end of the road, the outcome will focus on what needs to be done — when and by whom — to overcome impediments in the implementation of the Programme of Action. It is not sufficient to rely solely on the Barbados Programme of Action to address all the development problems of small island developing States. To that end, Nauru sees the Millennium Development Goals as supplementing the Programme of Action by adding the human development dimension to the scope of issues that should be addressed and by offering partnership to drive the process. However, for small island States like Nauru, the complex reporting requirement of the Goals is adding to the burden of reports that we are required to prepare, and therefore it is the considered view of my delegation that the United Nations Development Programme should tailor the questionnaire to suit a group of clients rather than use a one-size-fits-all approach. Assistance also should be provided to countries such as Nauru to collect and process the raw data required for the report. Nauru, like other low-lying small island States, sees the Kyoto Protocol as its salvation from sea-level rise and climate change, which would devastate our already fragile ecological system, which is essential to our livelihood and culture. My delegation understands that the Russian Federation now stands between the Kyoto Protocol’s coming into force and its continuing to languish. If that is the case, then Nauru calls on the Russian Federation to do what is universally right and just by ratifying the protocol before the meeting of the Ninth Conference of the Parties to the United Nations Framework Convention on Climate Change, to be held in Italy in December this year. A healthy Pacific Ocean and the sustainable use of its natural resources, including highly migratory fish stocks, are also critical to our livelihood. We in the Pacific have walked the talk on these issues through the development of an ocean policy to guide us in the management of our part of the Pacific Ocean and to form the framework for future regional ocean-related initiatives. Secondly, we have adopted a Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean, which provides a comprehensive regime for the management of the region’s highly migratory fish stocks, both in our exclusive economic zone and in the high seas. The trans-shipment of nuclear waste through our waters is of great concern to many island countries because of the damage it could cause. My delegation has stated during previous debates that it agrees fully with the proposal to reform the Security Council to bring it into tune with the realities of today’s world order. We are disappointed that, after 10 years of debate, there is still no convergence of views between the two camps on how to move forward. To try to address the expansion along with the question of the veto would be like riding a dead horse — we would not go anywhere, which is exactly the situation we are in. Furthermore, my delegation believes that we have done all we can do at the representative level, and that the only way we can make progress is to take it to a higher level, so that our political leaders can review what we have done and make a decision on how to move forward. On the question of reforms to operational policies and administrative structures, including budgetary aspects of the United Nations, my delegation fully supports the actions taken by the Secretary-General in this regard, but it appears that much more has to be done. The areas of review have to be enlarged and intensified, if indeed the prediction that the regular budget is going to exceed the $3 billion mark is correct. Finally, concerning reform, my delegation fully supports the view expressed by Australia that the group system needs modernization. Most of the Pacific small island countries are buried in the Asian group, which extends from the Pacific Ocean to the Suez Canal, while our big brothers, Australia and New Zealand, are “Others” in the Western European group. Outside the United Nations system, the Pacific is usually grouped with East Asia, in both economic and geopolitical zoning. We see no reason why this cannot be the case 24 at the United Nations, considering that the divide between Eastern and Western Europe will become meaningless as the two converge. Nauru, because of biased and incorrect media reports over the last five years, now carries a stigma as a haven for money-laundering through offshore banks registered in Nauru. There have also been reports that our Citizen Investment Programme is aiding and abetting criminals and terrorists, allowing them free movement by making possible the acquisition of Nauruan passports. The reluctance of foreign authorities to provide proof of allegations of criminal activities by banks registered in Nauru prevented the Government from initiating the mechanism provided for in our legislation to release information on offshore banks to foreign authorities. This has put us on a collision course. Nauru was not surprised when, in 2000, the Financial Action Task Force (FATF) of the Organization for Economic Cooperation and Development (OECD) listed it along with others as a non-cooperating country. The following year, Nauru’s status was further downgraded, and it was put on the list for “countermeasures” by members of FATF, not because our laws were insufficient, but because the goalposts were shifted and our failure involved a lack of capacity and capability to supervise the offshore banks registered in Nauru. In December 2002, the United States Government, in taking up FATF’s call to apply countermeasures against Nauru, announced that Nauru would be designated a “money-laundering” country under the provisions of the Patriotic Act. The highest level of sanctions would be applied, which would prohibit all commercial and financial transactions between any Nauru-registered financial institution and the United States. In May 2003 Nauru was accordingly informed and was given 30 days to show cause as to why the sanction should not be applied. Nauru submitted its comments, passed new laws in March of this year repealing the registration of offshore banks, and included a sunset clause terminating the licenses that would come into effect 30 to 180 days — as the case may be — from 27 March 2003, when the law came into force. The Government has also suspended the Citizen Investment Programme while it reviews the law, in order to address the concerns expressed by the United States Department of State. A new anti-money-laundering law was passed in March, and work is in progress on omnibus legislation that would address the financing of terrorism, transnational organized crime and money-laundering. Nauru also signed an article 98 agreement with the United States. In the process, Nauru has lost close to $2 million, if not more, in revenue, which is a drop in the ocean to OECD members but real money to us, considering that it is equivalent to 5 per cent of the Government’s annual budget. We are now waiting to learn our fate — awaiting the judgement of the United States and the FATF, as the two are interlinked. To conclude, Nauru, small as it is, believes that power consists in a nation’s capacity to link its will with the purpose of others, to lead by reason and give the gift of cooperation.