Foreign Relations of the United States, 1946, General; the United Nations, Volume I

IO Files: US/A/M (Chr.)/30

Minutes of the Thirtieth Meeting of the United States Delegation, New York, Hotel Pennsylvania, November 27, 1946, 9:00 a. m.

New York, November 27, 1946

secret

[Here follow list of names of persons (30) present and discussion of previous items on the agenda.]

Payment of United Nations Assessments in Local Currencies

Senator Vandenberg said that one of the fundamental questions in connection with United Nations assessments was whether they might be paid in local currencies. He read to the Delegation a statement which he intended to make before Committee V as follows:

• Pursuant to my promise to your Committee, I have made a thorough examination of the possibilities that United Nations assessments may hereafter be paid in local currencies. I regret that my report cannot be more immediately encouraging. But there is substantial hope of some relief along these lines next year through the International Monetary Fund.

This Fund operates on the basis of fixed quotas to each country for the purchase of dollars with their local currency. The Fund cannot operate, however, until exchange rates have been fixed for countries having about two-thirds of such quotas. Up to now no such rates have been fixed, the difficulty being that there is a disparity of from one hundred per cent to eight hundred per cent between official and actual market rates of exchange in many countries.

But it is expected that the Fund will begin operations sometime this Winter. At such time, the amount of dollar exchange that Members of the Fund, exclusive of the United States and the United Kingdom, could purchase from the Fund in the first year of operation is over three-quarters of a billion dollars provided the necessary conditions of purchase are met.

This is the most important part of my report. Approved transactions through the Fund will include payments of United Nations assessments.

I have found no way, except through the Fund, that assistance can be made available in connection with the problem submitted to my study.¹⁶

The meeting adjourned at 9:45 a.m.

16. Senator Vandenberg’s statement to the Sub-committee was printed in the Sub-committee’s report to the Fifth Committee; see GA (1/2), Fifth Committee, p. 319.