396. Memorandum from Battle to Bundy, October 281

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SUBJECT

  • United Nations Food for Economic Development Program

At Harlan Cleveland’s request, I am transmitting for Mr. McGovern a draft entitled United Nations Food for Economic Development Program. Mr. Cleveland requests Mr. McGovern’s reaction to the attached draft which resulted from a meeting in Mr. Ball’s office on October 25th.

L.D. Battle
Executive Secretary
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Attachment

UNITED NATIONS FOOD FOR ECONOMIC DEVELOPMENT PROGRAM

1. The amount that has been suggested for the multilateral program through the UN is $400 million. Whatever portion of this amount is assumed by the U.S. should be outright without any conditions attached. This would permit the program to get underway without undue delay.

2. This is not intended to operate on an annual basis. It is a special stimulant to the UN in connection with the UN Development Decade proposed by the President.

3. As will be illustrated in the next paragraph, the food transfer portion of the program would be bilateral with the U.S. determining those countries to which its food shall go.

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4. In a typical case it is suggested that the procedure would be as follows:

(a) Country X would apply to the Special Fund of the UN for a combination food-economic development program.

(b) The Special Fund and the FAO would make two related and simultaneous determinations. The FAO would discharge its normal function of determining the amount and kind of food that could move into the applicant country without disturbing normal market functioning. The Special Fund would determine the practicability of the utilization of the counterpart for economic development programs as later defined. If the Special Fund and FAO concur, the country application would then be submitted to the U.S. and/or any other contributing country for acceptance or rejection as to the food program.

(c) In the event a given application is accepted, the food would be transferred in the same fashion as under a bilateral program. The counterpart would be made available to the Special Fund for such programs and projects.

(d) In the Special Fund utilization of the counterpart its customary practice would be applied of assigning to specialized agencies and others the execution of its programs. For example, FAO could conceivably play two roles: (i) its basic role of making the finding; and (ii) in the execution of an agricultural development project in the country.

5. It has been suggested that the total counterpart made available shall be limited in its use by the Special Fund to its present program of pre-investment projects, i.e. surveys, training, etc. While such a condition is acceptable, yet it would seem desirable to permit the utilization of some portion of the counterpart for limited number of labor-intensive development projects particularly where the executing agency is able to provide additional funds.

  1. Transmits for McGovern’s reaction a draft on the UN Food for Economic Development Program. Official Use Only. 2 pp. Department of State, Central Files, 800.03/10–2861.