895B.00R/11–1150: Telegram
The Secretary of State to the Embassy in the United Kingdom
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2474. Pls approach Bevin urgently question UK financial support UN relief rehabilitation program in Korea. Matthews, UK Treasury Expert GA informed USDel GA that matter likely be given high level UK govt consideration Monday. Subject will arise in GA within next three or four days.
Total cost period covering calendar year 1951 and possibly extending into early 1952 approximately $200,000,000 to $250,000,000. US likely to offer 65 percent which is over half again as great as its percentage contribution to the regular UN budget. Any US contribution would of course be subject to Congressional approval.
Prompt and generous UK contribution to program for 1951 essential to set standard for other UN members and safeguard UN nature of Korean rehabilitation action. To this end Dept earnestly hopes that UK willing to contribute something in excess of its proportion of contribution to the regular UN budget which is 11.37 percent or about 23 million in term 200 million dollar Korean program. As UN Resol. permits contribution in currency, supplies, and services, major part of UK contribution could be made in form of supplies and services secured in UK with other supplies secured in sterling area.
Proposal of UK contribution something in excess percentage of regular contribution not unreasonable considering that UK contributed $610,000,000 or 16.95 percent of total UNRRA operating costs at time when UK economic position much less favorable.
If cannot persuade UK make contribution suggested above serious danger failure whole program as UN activity with consequent far reaching political ramifications. These ramifications would touch upon Congressional and popular attitude toward future economic assistance to foreign governments through all channels. Congress and people would find it difficult to understand failure of major free countries with which we have history of strong economic and defense financial assistance to support UN in a common program of Korean relief and rehabilitation.
[Page 1133]Financial arrangements under which, contributions will be made are now being discussed Committee 5. Contributions will be voluntary in sense will be conditioned on necessary parliamentary authorization and of appropriation funds all participating governments. With this reservation, US believes arrangements should establish as firm as possible commitment all participating governments to come through with contributions in agreed upon percentages. This very much in interest of governments like US and UK with record of meeting financial obligations to protect them from carrying unexpectedly large share program cost due failure other governments to carry through. Suggest you urge Bevin support US position in this respect as well.
Your negotiations should take account of fact may be complicated by UK realization that they will be expected to make substantial contribution toward Palestine Refugee Program requiring total of $50,000,000 in 1951 of which US may contribute between 50 to 60 percent, these figures not to be divulged at this point. If issue is raised you should emphasize that in US opinion success of both programs essential to effectiveness of UN both in political and economic field.1
- A similar message was sent to Paris in telegram 2683, November 17, for the Ambassador to convey to French Foreign Minister Schuman (320/11–1750).↩