On 26 May 2009, the GAC submitted a final letter responding to the Internet Corporation for Assigned Names and Numbers (ICANN) Board's concerns about the ability to implement the provisions of article 2 of the GAC Principles regarding new gTLDs, particularly paragraph 2.71.
The letter recommends, as a minimum, that the names contained in three internationally recognised lists must be reserved at the second level at no cost to governments of all new gTLDs. However, other issues relating to geographic names at the top level and the potential misuse of the respective names at the second level requires further discussion.
The GAC's letter is in response to the 6 March, 2009 ICANN Board resolution, and subsequent letter from ICANN of 17 March, 2009 seeking GAC members input on possible options to resolve the outstanding implementation issues regarding the protection of geographic names at the second level.
More details here : http://www.icann.com/en/announcements/announcement-28may09-en.htm