320/12–151: Telegram

The United States Representative at the United Nations (Austin) to the Secretary of State

confidential
niact

Delga 468. For Hickerson UNA, and Ingram, UNI, from Hall. Re contributions scale. Ref telecon. Package deal for consideration follows:

1.
US propose adoption Contributions Committee report with reduction US contribution to 33-⅓ percent and secretariat distribution amount of reduction across all other members on basis assessments recommended by Contributions Committee.
2.
Resolve to distribute surplus of $1,230,000 for 1950 to membership rather than transferring it to WCF.
3.
Call upon all members to endeavor pay ½ their annual contributions on January 1 and balance by July 1 of each year.
4.
US propose that reduction to 33-⅓ percent of advance to WCF of member having highest contribution rate should take place only after members contributing at least ⅓ of cost of budget, i.e., US or a group equalling ⅓ have indicated ability contribute ½ of their contribution early in fiscal years.

Vorys suggests in addition US should offer to prove this question matter of principle of offering $1,500,000, conditional to TA if contribution percentage reduced.

This would involve following Congressional action:

1.
1. Approval 18 months appropriation for next fiscal year for UN.
2.
Authorization of additional $1,500,000 from TA program for multilateral programs. This could be done by amendment authorization provision and administrative transfer from bilateral to multilateral channels.

Arithmetical calculations cannot be completed here and may require variations in proposal. Could you, after mathematical analysis [Page 196]on basis $40,000,000 dollar assessment budget, send comments and any suggestion for modifications.

Early preliminary reactions Staats1 or Rice2 for Budget Bureau and TCA on acceptability Vorys proposal would be helpful.

Possible variation above would be to get secretariat to introduce all above points except TA contribution and delegation could then support. [Hall.]

Austin
  1. Elmer B. Staats, Assistant Director, Bureau of the Budget.
  2. Stuart A. Rice, Assistant Director for Statistical Standards, Bureau of the Budget. Rice was U.S. member on the United Nations Committee on Contributions.