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will seize this opportunity and will move
promptly to carry out the Kitona agreement so a
start can be made with the rehabilitation of the
Katanga and its peaceful reintegration into the

The U.S. Government continues to repose com-
plete confidence in Ambassador Gullion.

' IhU., Oct. 16, 1961, p. 650.

•For text, see iUd., June 5, 1961, p. 870.

° For back^ound, see iUd., Jan. 8, 1962, p. 49.

* Not printed.

" For background, see Bulletin of Jan. 1, 1962, p. 10.

' Ibid., Jan. 8, 1962, p. 49.

ianuaty 15, 7962


The United Nations Bond Issue

Statement hy Harlan Cleveland'^

The President has decided to put in his forth-
coming budget a request to the Congress to author-
ize the purchase of United Nations bonds. This
decision followed action by the General Assembly
of the United Nations last week, making it possible
for the Acting Secretary-General to issue up to
$200 million worth of bonds to finance the U.N.'s
peace-and-security operations in the Congo and
the Middle East.

This decision naturally gives rise to two ques-
tions : Wliy does the United Nations have to issue
bonds? And why is it in the national interest of
the United States to purchase some of them ?

The answer to the first question requires a word
of explanation about the way the United Nations
and its affiliated agencies are financed.

Essentially there are four kinds of money spent
by the U.N. family of agencies.

1. There is the U.N.'s regular assessed budget.

2. There are the regular assessed budgets of the
specialised agencies., which support the construc-
tive work in such fields as food and agriculture,
world health, educational development, civil avia-
tion, telecommunications, meteorology, and others.

3. There are voluntary contributions to special
programs that are not assessed against all United
Nations members.

4. And there are special assessments for peace-
and-security operations in the Congo and the Mid-
dle East.

Since the charter was adopted in 1945, the
United Nations Secretariat has spent $784 million
on day-to-day operations out of its regular budget,
including the administration of the General As-
sembly, the Security Coimcil, and the trusteeship
system. The United States has put up $255 mil-
lion of this amount; the proportion of our con-
tribution has been going down as new members
were admitted. Early in the history of the United
Nations, the United States contribution stood at
nearly 40 percent. More recently, it was 321/^ per-

cent. Under a resolution just passed by the Gen-
eral Assembly, the United States contribution will
go down to 32 percent.

The 13 specialized agencies of the United Na-
tions have spent $586 million in their regular as-
sessed budgets since their beginnings during the
1940's, and we have put up $168 million of this

Then there are the special operations — the Ex-
panded Technical Assistance Program, the Spe-
cial Fund, the Palestine refugee program, the
malaria eradication program, the Cliildren's
Fund, and others — which are financed by volun-
tary contributions. These programs are financed
by those countries interested in financing them;
their cost is not assessed against all United Na-
tions member states. The United States has put
up a larger proportion of these operations — $797
million out of a total of $1.3 billion.

This year's slice of the same picture looks like

Fitcal year 19St

E»timated tota\ Estimated U.S.
expenditures share

' Read to news correspondents by Mr. Cleveland on
Dec. 28 (press release 909). Mr. Cleveland is Assistant
Secretary for International Organization Affairs.

U.N. regular budget (as-
sessed) $72.7 million $22.3 million

U.N. specialized agencies,
regular budgets ( as-
sessed) 64.9 million 18.0 million

Voluntary contributions 159. million 79. 8 million

The United Nations and its affiliated organiza-
tions have never been, and are not now, a major
factor in the United States budget, and the Con-
gress has provided tlie full amoimts required from
the United States to support United Nations activ-
ities. The 1961 Congress, for example, appropri-
ated all of the funds requested by President Ken-
nedy for contributions to international organiza-
tions and programs, both in the State Department
appropriation and in the AID [Agency for Inter-
national Development] appropriation.

Apart from all these regular operations, in
which most of the money goes for teclmical and
economic activities, the United Nations has two
sizable peace-and-security (which is to say, mili-
tary) operations.

The United Nations Emergency Force (UNEF)
has 5,100 troops sitting on the Gaza Strip, along
the Israeli-Egyptian border, and near the Gulf of
Aqaba, maintaining the precarious peace in the
still unliquidated war between Israel and its Arab
neighbors. UNEF costs about $19 million a year,


Department of State Bulletin

and we put up $7.9 million of that total. No
United States forces are engaged.

The other peace-and-security operation, now
very well known indeed, is UNOC, the United Na-
tions Operation in the Congo. It consists of about
17,000 troops provided by 21 countries, none of
them great powers. During the past year we have
put up about 471^ percent of its total cost, which
runs $10 million a month or $120 million a year.

The United Nations is fiTianced from year to
year by an '■'■every member canvass." Most mem-
bers pay their dues regularly and promptly to the
regular budget. We do, the British do, the French
do, and so do the Soviets. Some countries are slow
to pay, but nobody objects on principle to making
these payments. The record of prompt payment
is not as good in some of the specialized agencies,
but again no question of principle arises.

For the operations financed by voluntary con-
tributions, the main burden is carried by the West-
ern Powers. The Soviets frequently do not pay
at all, or they pay less than their fair share, often
in rubles so thoroughly restricted that they can-
not be used.

The costs for peace-and-security operations —
UNEF and the Congo Force — are assessed against
every member of the United Nations by action of
the General Assembly. (The United States also
helps, by a voluntary contribution, to reduce the
burden on the smaller, less developed countries.)
The Soviets and their satellites take the position
that they will pay only \\ hen they agree with the
operation; they therefore pay nothing to either
UNEF in the Middle East or UNOC in the Congo.
The Arabs also do not pay for the United Nations
Emergency Force, and the French and the Bel-
gians have declined to pay their share of the Congo

The U.N.^s basic financial problem is a cash
deficit resulting from the unwillingness of some
members to pay their share. The total of unpaid
contributions, on all U.N. budgets, was about $104
million on November 30, 1961. The bulk of this
sum represented nonpayment on UNEF and the
Congo accounts.

The resulting cash deficit is actually fmided in
three main ways :

First, the United Nations has to hold back on
paying its bills. If the United Nations were a
business, we would say that it is piling up its "ac-
counts payable."

January 15, J 962

623755—62 3

Second, it has drawn down to zero its working
capital fund, which previously amounted to about
$25 million.

Third, it has engaged in a kind of internal
borrowing operation. To meet his needs for cash,
the Secretary-Genei-al borrows from other U.N.
agencies moneys which these organizations have
collected from their members but have not yet
spent. These internal borrowings are repaid
when member nations pay their assessments for
UNEF and the Congo. The borrowings have not
impaired the operations of the other U.N. agencies

AVith the operating deficit of more than $100
million, the U.N.'s problem is to get the non2:)ayers
to pay up and meanwhile to collect enough cash to
enable the United Nations to go ahead and do what
the General Assembly has told it to do in the
Middle East and in the Congo — which are actions
tlie United States Government feels are very much
in the United States interest for the United Na-
tions to take.

To solve this problem, Acting Secretary-General
U Thant has courageously proposed and the Gen-
eral Assembly has just adopted a three-part
financial plan. The plan was adopted over the
liighly vocal but ineffective opposition of the
Soviet Union and its satellites.

1. The General Assembly voted a new appro-
priation, assessed against all members, to carry the
Congo 2 and the Middle Eastern ^ operations up to
July 1, 1962, at the present level of expenditure.
The votes were overwhelming: 67 nations voted
for the Congo appropriation, and only 13 against,
with 15 abstentions.

2. The General Assembly has formally asked
the International Court of Justice at The Hague
for an advisory opinion to settle the question
whether assessments for peace-and-security opera-
tions are just as mandatory an obligation on gov-
ernments, luader the U.N. Charter, as everybody
agrees the regular budget contributions have al-
ways been. A favorable opinion, which we antici-
pate, would help governments decide to pay up
even when they are not enthusiastic about a par-
ticular operation, for fear of getting so far behmd
in their total contribution to the United Nations
that they would be deprived of their vote under the
charter's 2-year rule (article 19) .

'U.N. doc. A/RES/1732(XVI).
" U.N. doc. A/RES/1733 (XVI).


3. The General Assembly authorized the Secre-
tary-General to issue $200 million worth of U.N.
bonds, repa3'able at 2 percent over a 25-year pe-
riod.'' Repayments will be an annual charge (of
about $10 million) on the regular U.N. budget,
which is assessed agamst all members.

In a nutshell, the case for the U.N. bond issue
can be smnmarized this way :

a. Nonpayers will still owe their dues. The
bond issue does not bail them out. It merely bails
out the United Nations cash position while main-
taining the obligation of every member to pay up
its own accumulated debt to the United Nations.

b. The bond issue would be large enough to solve
the United Nations cash problem for this year and

c. The bond issue would give the United Na-
tions Secretary-General, for the first time, a source
of funds which could be drawn on rapidly in the
event that a future emergency should require their

d. The bond issue will be repaid out of the regu-
lar budget. The repayments are thus a binding
obligation on all members under the charter.

e. By having the bond issue repaid out of the
regular budget, the United States contribution for
peacekeeping operations is reduced from its pres-
ent share of about 471/4 percent to 32 percent. For
a time after July 1, 1962, our purchase of bonds
will make it unnecessary to ask Congress for ap-
propriations for UNEF and the Congo operation.

f. The U.N. bonds can be sold to nonmembers
(West Germany and Switzerland, for example)
and to nonprofit institutions. They will not, how-
ever, be sold to the general public.


Wliy is it in the national interest of the United
States to purchase our share of these U.N. bonds ?

Ever since the beginning of the United Nations,
its actions and its future have been a matter for
debate among Americans. Some have overesti-
mated its usefulness, viewing it as a cure-all or a
symbol of utopia. Others, congenitally gloomy
about the state of the world, see in each new crisis
the beginning of the end of the Organization.

Of course, no all-purpose formula fits the facts.
But the record shows that each new crisis has left
behind a stronger organization, better able to
tackle a larger problem the next time around. A

*U.N. doc. A/RES/1739(XVI).

small technical services program led to a sizable
Special Fund for preinvestment aid. A tenta-
tive peace-and-security operation at the time of
Suez led to a larger capacity to act in the Congo.

There are, of course, strict limits to United
Nations action, limits set by the willingness of its
membei-s to support extensions of the U.N.'s ex-
ecutive role. These limits are gradually widen-
ing. With the U.N.'s peacekeeping functions,
particularly its Congo operation, the U.N.'s
executive role has for the first time caught the
widespread attention of Americans.

That U.N. actions, and the United States rela-
tionship to the U.N., are now an American na-
tional issue, worthy of front-page controversy and
public statements by practicing political leaders,
simply means that the United Nations is doing
tilings that are important enough for us to argue
about among ourselves. Far from dying, the
United Nations is increasingly being recognized
as a significant mechanism of international poli-
tics — which is to say one of the most important
arenas for the exercise of national power.

The fact of the matter is that for 16 years the
United Nations has usefully served the national
interest of the United States as well as the inter-
ests of most of its other members.

In Korea it served our interest by enabling the
United States and other free nations to deal effec-
tively with Communist aggression in the name of
the United Nations Charter and pursuant to U.N.

The U.N.'s peacekeeping machinery, established
in the Middle East after the Suez crisis, has been
a major factor in keeping tliat area reasonably
quiet for the past 5 years.

In the Congo the big United Nations executive
operation was literally the only alternative to the
direct confrontation, there in central Africa, of
the military strength of gi-eat powers.

But the United Nations' growing "capacity to
act" goes well beyond its much publicized military
operations. It provides various kinds of advice
and self-starting aid for all of its less developed
members. It also provides a wide range of peace-
ful-settlement procedures, ranging from single
representatives of tlie Secretary-General to peace
observation teams, mediators, conciliation com-
missions, and the general supervision of jn-ogress
toward self-government. The peacemaking role
of the United Nations serves our interest because


Department of State Bulletin

many of the disputes contain the seeds of war.
Wliile some of the crises taken to the U.N. con-
tinue to be dangerous, in many instances the trend
lias been reversed.

Because the United Nations and in particular its
peace-and-security operations have been effective,
the Communist bloc has sought to control or de-
stroy it. Trying to paralyze action by misuse of
the veto is one way. Trying to substitute the
troika for a single Secretary-General is another
way. Trying to undermine its financial structure
and thereby to deny the United Nations the means
to carry on essential peacekeeping operations is
yet another way. TVe cannot afford to permit the
Communist bloc to destroy — either by political or
financial means — an organization that has served
and continues to serve our national interest, and
the national interest of most other U.N. members,
in the growth of a civilized system of collective

For these reasons the President will propose,
early in the next session of Congress, legislation
to authorize U.S. purchases of United Nations
bonds. Congressional approval of this proposal
will frustrate the Soviet attempt to starve the
United Nations into submission and will preserve
the U.N. for its vital executive role in interna-
tional politics.

Cultural and Educational Exchange
To Be Discussed by U.S. and Japan

The Department of State announced on Decem-
ber 26 (press release 904) that the United States
and Japan will hold a conference on cultural and
educational affairs at Tokyo for 1 week beginning
January 25. This conference is the last of three
meetings agreed to by President Kennedy and the
Japanese Prime Minister Hayato Ikeda when the
two leaders met in Washington last June.^ A joint
meeting on economic affairs was held in November
at Hakone,^ and a conference on scientific coopera-
tion was held in December at Tokyo.'

Both leaders agreed last June on the desirability
of furthering cooperation between Japan and the
United States in the fields of culture and education.

The upcoming conference will discuss concrete
ways for bringing this about. The American dele-
gation will include : Philip II. Coombs, Assistant
Secretary of State for Educational and Cultural
Affairs, Ambassador Edwin O. Reischauer, Hugh
Borton, Aaron Copland, Clarence H. Faust,
Douglas Overton, Arthur Schlesinger, Jr., Willard
Thorp, and Robert Penn Warren.

The conference will have as its objective the
study of all phases of postwar cultural and educa-
tional exchange between Japan and the United
States and will make recommendations on ways
and means of broadening this exchange. Con-
cretely, various problems will be discussed, such as
intellectual interchange through exchange of per-
sons, exchange of books and other cultural ma-
terials and arts, studies in Japan and in the United
States of the other's country, English and Japa-
nese language teaching, and study of activities of
cultural academic and professional organizations
in Japan and in the United States.

Attorney General Kennedy Completes
Plans for February Trip

Press release 912 dated December 29

Secretary Rusk announced on December 29 that
Attorney General Robert F. Kennedy has com-
pleted plans for a trip that will take him to a
number of world capitals in February.

Following the Attorney General's visit to
Japan,^ Mr. and Mrs. Kennedy will go to Indo-
nesia, where they will be from February 12 to 18.
This visit is in response to an invitation from the
Indonesian Attorney General, Dr. Gunawan, who
extended the invitation personally while visiting
the United States last April.

On his way to Berlin from Djakarta, Mr. Ken-
nedy will visit Tehran and make a brief stop in
Rome. During the Tehran visit, February 19, the
Attorney General plans to call on Government
officials. The visit in Rome will be of a private

The Attorney General will be in West Berlin
from approximately February 22 to 24 and also
plans a brief trip to Bonn.

' Bulletin of July 10, 1961, p. 57.
' Hid., Nov. 27, 1961, p. 890.
= /6irf., Jan.8, 1962, p. 66.

' For an announcement of the visit, see Bulletin of
Jan. 8, 1962, p. 50.

January 15, 1962


People on the Move

hy Richard R. Brown

Director, Ofice of Refugee and Migration Affairs '

It is a real pleasure and a distinct honor to be
asked to appear before this combined meeting of
the National Council of Women in the United
States and the United States Committee for
Kef ugees. It is most gratifying that you are will-
ing to devote time to considering the problems
of refugees and migration. Unfortunately within
recent months there has been an almost universal
waning of interest in these problems in spite of
the efforts of a few groups and some governments
to place emphasis upon finding solutions to the
problems of people on the move.

Observant and well-read people today witness
what seems to be a flood of refugees on the move.
Most often they look upon this movement of
peoples as a phenomenon of this — the 20th — cen-
tury and attribute it to the general unrest and
turmoil generated throughout the world during
the past generation and more particularly within
the last decade. To a degree their assumptions
are correct, yet it must be borne in mind that
refugees and the causes creating refugees are as
old as mankind itself. Although archeologists
are constantly uncovering new evidences of mass
movements of ancient peoples and ethnologists are
beginning to fit together the jigsaw pieces which
make up the puzzle of races and cultures, the pre-
historic movements of man appear motivated more
by the disasters of nature in the form of floods,
famine, earthquakes, and climatic changes rather
than because of conflicts between men.

Later, as we unfold the pages of history and

1 Address made before a joint meeting of the National
Council of Women in the United States and the United
States Committee for Refugees at New York, N.Y., on
Dec. 5 (press release 838 dated Dec. 4).

historians document the behavior and conduct of
men, we find that the mass movement of peoples
has a direct relationship to war, the aftermath of
war, economic depressions, boimdary changes, and
political upheavals. Both group and individual
searching for freedom and the pureuit of happi-
ness have been prime factors in causing migration
and creating the homeless, stateless nomads which
we today identify variously as displaced persons,
expellees, refugees, and escapees.

Our I^rd began the Christian era as an escapee.
When still as an infant in swaddling clothes, his
parents spirited Him into Egypt to escape the
wrath of Herod and the repulsive controls of the
Roman army of occupation. But even for Joseph
and Mary this was no new experience, for as
Jews they were well steeped in the Old Testament
history which recounted the long and tortuous
wanderings of their forefathers.

Aiding World's Homeless

With the donning of the mantle of a world
power by the United States as witnessed by the
present generation, our nation has been catapulted
into the unsought but not unwanted role of leader-
ship in attemjjting to solve the problems of the
world's homeless and stateless people. Private re-
sources blended with Federal Government ap-
propriations have been rushed into each new crisis
with such generosity as to stimulate other nations
to respond in like manner. Citizen and agency
sponsorships have permitted Federal immigration
legislation to be im2:)lemented to the maxinmm ex-
tent and with such dispatch as to continue to as-
sure the world of this couTitry's willingness to
accept its share of the displaced populations in


Department of Stale Bulletin

need of a new country and the opportunity to be-
come restored as independent, self-sustaining citi-

It is not happenstance that the United States
has spent in the neighborhood of $1.2 billion for
displaced pereons, refugees, and escapees since
World "War II. It is not accidental that private
agencies from popular support and private gifts
have been proportionately us generous. It is no
coincidence that almost three-quarters of a million
persons have been admitted to this country during
tliat same period.

The traditional generous response of the United
States to the plight of the human flotsam and
jetsam is as natural as the American way of life
itself. Certainly this is true from the standpoint
of the humanitarian motives which dominate our
refugee assistance programs. It is equally true
with respect to our foreign policy interests, for in-
variably each refugee problem affects the decisions
of this and other nations in social, economic, and
political considerations. Today's refugee prob-
lems are replete with undertones and overtones
directly affecting our foreign policies and our pos-
ture in the community of nations.

Our national interests may be related to the
causes which create refugees, or they may be con-
cerned with the results of refugees arriving in a
country. In consequence our Government has con-
scientiously and consistently taken the initiative
or lent full support to efforts of others in financing
and furthering refugee assistance programs.
Through regular annual appropriations it has been
the principal contributor to the work of the United
Nations High Commissioner for Eefugees, to the
operations of the United Nations Relief and Works
Agency, and to the programs of the Intergovern-
mental Committee for European Migration. It
has carried on unilateral programs through the
United States Escapee Program and more recently
the program for assisting Cuban refugees who
have confronted the United States for the first
time with the problems attendant to being a coun-
try of first asylum.

I am sure that most of you are aware tliat the
focus of attention is being rapidly shifted from
Europe to the Far East and to Africa. Except
for the Hungarian exodus in 1956 the real prob-
lem in Europe for the last few years has not been
the movement of people but rather the inrmiobility
of large nimabers of refugees, some of whom had
been in camps since the end of World War II. A

similar situation obtained with respect to the more
than a million Palestine refugees in the Middle
East who have been displaced and unsettled since
the politicogeographic determinations made in

Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 25 of 101)