143. Memorandum From the Assistant Secretary of State for International Organization Affairs (Wilcox) to the Counselor of the Department of State (MacArthur)1
- Arguments for and against SUNFED
In line with our conversation in the hall yesterday morning I am sending along a brief memorandum outlining the case for [and] [Page 373] against SUNFED. I should add that most people who have studied the problem do not necessarily subscribe to the SUNFED proposal as it has been put forth in New York. Indeed I think it is more appropriate to talk in terms of a multilateral assistance program without specific reference to SUNFED inasmuch as that term has fallen into disrepute in some quarters.
If we should decide to offer to participate in a multilateral assistance program, I believe we should do it in the context of a broader program which might envisage various steps by the recipient countries to encourage productivity within their borders. For example, they might well agree to create a more favorable climate for private capital which is so essential if any economic development program is to succeed.
You may have noticed that Congressmen Hays and Merrow in their report to Congress on the Tenth General Assembly commented very favorably on multilateral aid programs. They state:
“It is our conviction that the delegation’s statement should have included emphasis of the need for utilizing multilateral programs to an increasing degree. It is urgently necessary that in the future we make far greater use of the United Nations system for foreign aid than we have in the past. This would not mean an increased amount of money appropriated for foreign aid but rather the channeling of a part of existing appropriations through United Nations machinery.”