85. Memorandum From the Senior Adviser on International Organization and Legal Matters to the Mission at the United Nations (Bender) to the Representative at the United Nations (Lodge)1

SUBJECT

  • U.S. Proposal re Reduction of its U.N. Assessment to 30 per cent

We are informed by the Australian and New Zealand Delegations that they will oppose in the Fifth Committee any reduction in the assessment percentage of the United States. This position has been taken despite approaches by our Embassies in Canberra and Wellington. It appears to be based primarily upon financial considerations and to ignore the political aspects of the problem. It fails to take into account the fact that twenty-two new Members have been admitted to the United Nations—an increase of 35 per cent—since the United States contribution was reduced to 33.33 per cent in 1954.

Accordingly, I recommend that you speak to the heads of the Australian and New Zealand Delegations about the seriousness with [Page 234] which we view our proposal. It would be very damaging to us in the Fifth Committee if these Delegations spoke and voted against us.

In essence, our proposal is the following:

1.
That the General Assembly decide, in principle, that the maximum contribution of any one Member be reduced to 30 per cent.
2.
That for 1958 the United States contribution be reduced only to the extent that this is made possible by applying the contributions of six new Members which have not yet been incorporated into the scale of assessments. This will permit a United States reduction of about 2 per cent, and incidentally will provide a small reduction for New Zealand, although not for Australia.
3.
The reduction of the United States percentage to 30 per cent will be completed in the future only when the admission of new Members or the increase in national income of present Members make this possible.
4.
The United States proposal will provide specifically that it will not cause an increase in the percentage contributions of any other Members.

  1. Source: USUN Files, IO, Financing. Confidential.