168. Telegram From the Department of State to the Mission to the United Nations 1

171034. Subject: Cash Crisis in the UN. Ref: USUN 2668, dated 9–15–71.2

1.
In recognition emergency situation, we prepared, as an exceptional measure, make additional payment $13 million prior September 29 which is ahead of normal schedule first week in October. It is clear that onus of responsibility for financial crisis rests with others since US within normal schedule under which UN has traditionally geared its fiscal operations.
2.
Unable make firm commitment with respect final payment $13 million at this time but will act sympathetically in accordance with situation as it exists later in year.
3.
In any event imperative we reserve portion of final installment for payment in form of “US owned” excess currencies. Even though FY 1972 Appropriation Act does not contain same legislative requirement as previous years failure to do as well will only convince Congress that the only way to attain adequate usage is through legislative action. End result could be restoration of limitation on use of funds and consequent inability meet our assessments in full. Important UN inform us how much we should reserve out of $13 million for “US owned” excess currencies for period now through end of 1972 but chargeable to C.Y. 1971 assessment.
4.
Additional comments relating Para 7 will be forthcoming but in any event we believe UN austerity measures should occur before another crisis.
Rogers
  1. Source: National Archives, RG 59, Central Files 1970–73, UN 10. Confidential; Priority. Drafted by Sidney S. Cummings and O’Connor; cleared by Hennes, Oscar H. Nielson, and George von Peterffy; and approved by Assistant Secretary De Palma.
  2. Document 166.