254. Circular Telegram From the Department of State to Certain Posts1

1931. Ref: Dept. Cirtel 1526; CA–9150.2

1. Special Session of UN General Assembly which begins May 14 must act on resolutions concerning future financing of UN peace and security operations.

2. In reftel Ambassadors were requested to approach non-Soviet Bloc governments at highest level to determine whether governments would support U.S. view that peacekeeping costs for UN Congo and Middle East operations for the last six months of 1963 should be at regular assessment rates, i.e., without reductions in rates levied against less developed countries which rates applied up through June 1962. Since June 1962 no assessments have been levied and UNEF and UNOC costs are being financed from the proceeds from UN bonds. U.S. view was based on fact it difficult to justify continued high level of U.S. financial support-47% of UNEF and UNOC costs and 50% of UN bond issue-while majority UN members owe substantial overdue amounts on their reduced peacekeeping assessments. Tangible demonstration by UN membership of collective financial responsibility required to demonstrate realization that each member has stake in peace and security of world and in UN role in international affairs.

3. U.S. view as contained reftel has been modified because of responses by governments, the outcome of the Working Group of 21, and subsequent consideration within U.S. government.

4. Responses indicate your efforts have produced fuller consideration of UN financing by governments; that many countries have promised to pay arrears within next several months. Therefore, as indicated paragraph 14 reftel it may be possible for U.S. to contribute above 32.02%. We now negotiating in N.Y. financial formula which may include some form of voluntary contributions by U.S. and other developed countries along lines of suggestion originated by U.K.

5. U.S. position currently includes these principal elements:

(a)
That the UNEF force in the Middle East must be continued because of the dangerous continuing situation in that area, and that the [Page 563] Congo force, to be greatly reduced by July 1, must be continued until the Congolese national army can be trained to take over the job.
(b)
Current estimated budget for last half 1963 for the Middle East operation is $9.5 million and for the Congo operation is $33 million.
(c)
We oppose any financial arrangement that would apply to unknown future peacekeeping operations. We also oppose any “special scale” of mandatory assessments for peacekeeping by which U.S. rate would be higher than our regular budget percentage of 32.02.

6. British suggestion on “three bite” approach is as follows:

Bite one would finance an initial amount entirely on regular scale of assessments, U.S. and others being liable for regular shares of an amount which we hope will be ten million dollars per operation.

Under bite two, the remaining cost would be assessed but rate would be different. For the developed countries the regular scale would be used for bite two. For the less developed countries the rate would be one-half their regular rates. Less developed countries would not be eligible for this special rate in bite two unless they indicate willingness to pay their assessments for these peacekeeping operations.

Bite three would cover the shortfall resulting from bite two and would be financed from voluntary contributions from a substantial number of developed members, or possibly by the use of UN miscellaneous income.

Our support for three bite approach is subject to certain conditions to be negotiated during the Special Session GA. However, essence includes U.S. voluntary pledge provided: (a) most other members are in fact contributing to the cost of peacekeeping operations; (b) a substantial number other developed countries also make voluntary contributions to cover shortfall; and (c) it is agreed voluntary contributions may be made “in kind” by supplying goods and services needed for peacekeeping purposes.

7. Arrears situation remains much as reported to you in reftel. Of present total of 100 million dollars peacekeeping arrears the Soviet Bloc owes $62.6 million. However, almost one-third of members have made payments on arrears this year, including payments or promises of sufficient amounts to avoid loss of vote under Article 19 UN Charter by ten countries. It is of continuing importance that member nations demonstrate through payment of their arrears the necessary spirit of collective financial responsibility indicated by some in their payments referred to above or indicated by their promise to pay in response to your earlier approach.

Another way to demonstrate that each member considers it has a stake in peace and security of the world and in UN role in international affairs is to purchase UN bonds. At present only 59 countries have purchased or pledged, and despite U.S. dollar for dollar matching of purchases, $51 million of the authorization still has not been subscribed. [Page 564] Even token purchases by the less developed countries, say in the range of $10,000 each would have a salutary effect on the financial health of the Organization and increase the sense of financial responsibility to the UN of those making the purchases.

8. The above information concerning the modification of U.S. position from that set forth in Cirtel 1526 is provided principally for your information. As appropriate, you are encouraged to pass this information on to appropriate government officials. Solid support for our revised position is necessary in the GA Special Session (financing resolutions require 2/3rds vote), if the financing impasse on peacekeeping operations is to be satisfactorily resolved, and if the UN is to receive the financial resources it needs to carry on these peacekeeping tasks in Middle East and Congo. Such additional efforts as in your judgment will help to accomplish these purposes with govt. you accredited should be undertaken to support our negotiating efforts at Special Session.

Rusk
  1. Source: National Archives and Records Administration, RG 59, Central Files 1960–63, UN 10–4. Confidential. Drafted by Wilbur H. Ziehl and Virginia C. Westfall; cleared by Richard Friedman, George N. Monsma, Herbert Reis, W. Paul O’Neill, Louise McNutt, and James M. Ludlow; and approved by Assistant Secretary Cleveland. Sent to 99 posts.
  2. See footnote 2, Document 250, and footnote 3, Document 243.