Foreign Relations of the United States, 1961–1963, Volume XX, Congo Crisis

66. Memorandum From Acting Secretary of State Bowles to President Kennedy¹

Washington, May 20, 1961.

SUBJECT

• Initial U.S. Contribution to UN Program of Financial Aid to the Government of the Congo

We have recently been making a major effort to stimulate a United Nations initiative to stabilize and rehabilitate the Congo economy, which is threatened by runaway inflation. At present the prospects for such an effort seem more promising than ever before: the United Nations on its side has begun to demonstrate an awareness of the needs of the economic situation, and a willingness to work co-operatively with the Kasavubu Government, which, on its side, seems to be prepared to undertake some of the difficult domestic measures an effective program will require. In addition, some of the European states have indicated greater willingness to contribute financially to such a program.

Our mission in New York has been discussing with the United Nations the elements that such a program should include; in a message received today our delegation indicates that it may prove desirable for the United States to make an immediate grant of $5 million for the purchase of United States commodities as a means of providing some measure of relief for the scarcity of goods in the Congo, and of facilitating negotiations between the United Nations and the Congo.

Under the provisions of the Mutual Security and Related Agencies Appropriation Act of 1961,² the United States contribution to a United Nations program in any African country may not exceed 40 percent of the total contributions to the United Nations for such a program. Although approximately $9 million in contributions from other countries have been obtained by the United Nations Fund for the Congo, the United States contributions to date already substantially exceed the 40 percent limit. These contributions were made under the President’s authority to waive the requirements of the Mutual Security Act and any act appropriating funds for use under the Mutual Security Act. The further contribution it is now proposed to make will require a further exercise of this waiver authority.

Your approval is sought for an immediate offer of an additional $5 million for this program, on the understanding that a formal determination authorizing this action will be promptly prepared for your signature and submitted in accordance with normal procedures.³

Chester Bowles⁴

1. Source: Kennedy Library, National Security Files, Congo. Confidential.
2. P.L. 86–704, approved on September 2, 1960; 74 Stat. 776.
3. A May 29 memorandum from Budget Director David E. Bell to Bundy states that he discussed the additional $5 million for the Congo with the President on May 26 and that the President had approved the State Department memorandum. (Kennedy Library, National Security Files, Congo)
4. Printed from a copy that bears this stamped signature.