UN settles funding feud

A row over a major new system for funding the United Nations has been settled, after marathon talks at the UN in New York.

Objections from South Korea, which had been holding up the deal, were overcome after around-the-clock talks.

Under the new funding system, US contributions will be reduced for the first time in decades, easing simmering tensions between Washington and the UN over the level of payments the US was being asked to make.

In return, the US Congress is expected to release about $1.5 billion which the UN says Washington owes in arrears.

As part of the settlement, a cash payment of $34m towards the arrears was offered by billionaire media tycoon Ted Turner, founder of CNN.

UN delegates say the deal has already been approved in a General Assembly committee, and now needs only to be rubber-stamped by a formal General Assembly session.