501.AB/11–2246: Telegram
Senator Austin to the Secretary of State
us urgent
[Received 5:49 p.m.]
840. For Hiss from Sandifer. Senator Vandenberg has addressed to me the following memorandum concerning the reply to his telegram to Clayton concerning possible assistance to countries in need of dollar exchange for payment of UN contributions (No. 825). Dept’s telegram to Vandenberg was sent to CFM (Secdel 1175, Nov. 20, 4 p.m.).13
“You have seen the Acheson message in response to my inquiry to Mr. Clayton regarding the use of the International Monetary Fund in connection with the settlement of UN assessments by countries which are short of dollar exchange. The message says: ‘International Monetary Fund when in operation will undoubtedly be of great assistance to countries short of dollars, but Fund will not be in active operation until some time next year.’
This matter is of such vital importance to most of the member nations—and has such intimate bearing upon the allocation of assessments—that I wish it could be possible for us to get more definitely and specifically encouraging message from Washington on the subject. I can not overemphasize the effect this will have on the whole subject [Page 487] of both administrative and operations allocations. The Acheson message intimates generically that the international monetary fund ‘when in operation’ will be of assistance when it gets into ‘operation sometime next year’. Most of these assessments will be payable ‘sometime next year’. Therefore, the time element would not be a barrier to the usefulness of assurances for the future if the assurances could take a somewhat more definite form. Even if we were able to expand the settlement of these UN accounts into sterling as well as dollars, it would be a great and welcome relief. I should think there ought to be some way that the international monetary fund could promise top priority to the problem of facilitating the settlement of UN internal accounts and to seek to create some specific machinery for this purpose because the successful financing of UN is at the base of all international cooperation.
The question I submit to you is this. Is it impossible for the State Department at Washington to give us a more concrete or at least a more encouraging reply to my original question? The report which I have to make on this subject on the UN Contributions Committee will have a far-reaching impact upon the whole UN fiscal problem which involves such vital considerations for the US.”
Would appreciate your taking any feasible steps to have this question re-examined in the light of the additional considerations set forth by Senator Vandenberg. It is important, if at all possible, to enable him to give to the Contributions Committee the more concrete and encouraging statement which he stresses. [Sandifer.]