500.C115/347: Telegram
The Consul at Geneva ( Gilbert ) to the Secretary of State
[Received July 12—2:45 p.m.]
196. Department’s 77, July 11, noon. A financial arrangement peculiar to the Geneva organizations is that their budgets are not determined by funds available from arbitrary national contributions but that these contributions are fixed as shares of a total predetermined budget.
The contributions of League states are based upon the total budget requirements of the League, the International Labor Organization and the Permanent Court, By a precedent set in the case of Brazil states members of the organization and not members of the League pay into the Labor Organization direct, the amount thus received being subtracted from the labor office share of the total budget of the three organizations mentioned.
The plan followed with Brazil and the one envisaged for the United States is that the contribution to the organization, is determined by negotiations between the governing body and state concerned and may be either some determined proportion of the total organization budget or a fixed sum. In the case of Brazil both arrangements have been followed.
The governing body meets in January, April, May and October. Labor office officials view it as impracticable for procedural reasons as well as perhaps presenting an equivocal aspect for the United States to negotiate its contribution before becoming a member. This however could undoubtedly be arranged were the United States to regard it as essential. While in theory the governing body could take any position it desired respecting what it regarded as an adequate American contribution it is felt that no difficulties would be found in the United States agreeing to pay the British contribution which is approximately 10 percent of the total budget estimated with reasonable confidence for 1935 at $310,000 at the current exchange between the Swiss franc and the dollar or a fixed sum in about that amount.
Certain details in Consulate’s despatch 951, political, dated July 216 and further details in despatch being prepared.
- Not printed.↩