UN FINANCIAL MATTERS UN FINANCIAL SITUATION The United Nations estimated its deficit to be $109.1 million at the end of 1976. The deficit has been increasing about $4 million each year as the result of (1) deliberate withholding by the U.S.S.R. and certain other members of a portion of their assessed contributions, and (2) payments in nonconvertible, and therefore largely unusable currencies. In consequence, the $40 million UN working capital fund has long been depleted. The organization has no cash reserves on hand to meet current obligations and is dependent upon the month-to-month inflow of annual contributions. The 30th General Assembly in 1975 established a 54-member/Negotiating Committee on the Financial Emergency of the United Nations "to bring about a comprehensive settlement of the critical financial situation of the United Nations." The Committee met seven times between April 14 and May 20 and five times between September 22 and December 15, 1976. During its debate, the U.S. Representative, David L. Stottlemyer, pointed out on April 29 that the United States has paid all its assessments in full throughout the history of the United Nations and has also made special supplementary contributions. He also announced that, beginning in 1977, the United States would be in a position to pay its assessment within 30 days of notification by the Secretary General, because of a change in the U.S. fiscal year. Nevertheless, it was made clear that earlier payment by the United States would contribute only marginally to the solution of the UN financial crisis. In the U.S. view, reaffirmed by Ambassador Scranton in a September 16 letter to the chairman 1/ Members of the Committee were Argentina, Austria, Bangladesh, Bolivia, Canada, Chad, Colombia, Cuba, Ecuador, Egypt, Finland, France, Gabon, German Democratic Republic, Federal Republic of Germany, Ghana, Greece, Grenada, India, Indonesia, Iran, Ireland, Italy, Jamaica, Japan, Jordan, Kenya, Kuwait, Libya, Malawi, Mexico, Morocco, Nigeria, Pakistan, Philippines, Poland, Spain, Sudan, Swaziland, Sweden, Trinidad and Tobago, Tunisia, Turkey, U.S.S.R., United Kingdom, United States, Upper Volta, and Venezuela. There were six vacancies. of the Committee, a comprehensive solution was called for, and the member states responsible for the crisis should (1) pay their arrears either through voluntary contributions or through direct payment of past assessments, (2) discontinue withholding, and (3) contribute only in currencies usable by the United Nations. If appropriate steps toward resolving the crisis were taken by the member states responsible, the U.S. Representative said that the United States would participate in arrangements to restore and continue the financial viability of the United Nations. The Committee failed to reach a consensus on a solution to the financial difficulties of the organization. Consequently, it made no recommendations in its brief report to the General Assembly. However, the Assembly on December 22 adopted by consensus a resolution2/recommended by its Fifth Committee (Administrative and Budgetary) that (1) requested the Committee to keep the financial situation of the United Nations under review, submitting, if necessary, a supplementary report on further developments, and (2) decided to include the question of the UN financial emergency in the agenda of its next session. UN REGULAR BUDGET On December 22, 1976, the General Assembly approved a supplemental appropriation of $38,119,100 for the 1976-77 biennium. The initial budget of $745,813,800 was adopted in 1975 by the 30th Assembly, with the United States abstaining. The new total, $783,932,900, is an increase of $171,382,900 or 28% higher than the budget for the 1974-75 biennium. The supplemental appropriation related to several program areas. Some of the more important were programs concerning transnational corporations ($2.8 million); decisions of the Trade and Development Board arising from UNCTAD IV ($2.3 million); rationalization of the salary and allowance structure, including implementation of the International Civil Service Commission recommendations (see p. 396) and a salary increase for Geneva-based general service staff ($15 million); UN building improvements ($5 million); and additional costs for major conferences, including the Law of the Sea Conference, Conference on Desertification, and Conference on Science and Technology for Development ($5.4 million). 2/ Resolution 31/191. Such a large supplementary increase in the first year of the biennium was unacceptable to the United States, but the appropriation was nevertheless approved by the Fifth Committee on December 22 by a vote of 71 to 10, with 1 abstention (U.S.), and adopted by the plenary Assembly the same day by a recorded vote of 119 to 10 (Bulgaria, Byelorussian S.S.R., Czechoslovakia, German Democratic Republic, Hungary, Mongolia, Poland, Romania, Ukrainian S.S.R., U.S.S.R.), with 1 abstention (U.S.). SCALES OF ASSESSMENT The U.S. shares of the assessed budgets of the United Nations, the specialized agencies, and the IAEA were as follows in 1976: The General Assembly fixes rates of assessment for the members of the United Nations, normally on a triennial basis. The assessment rates of the specialized agencies are determined by each agency and are in many, but not all, cases based on the UN scale. The Committee on Contributions/in 1976 recommended to the General Assembly a scale of assessments for 1977-79 based upon national income statistics submitted by the member states for the years 1972-74. Among the recommended changes affecting the major contributors, the assessment of the 3/ Resolution 31/207 A. 4/ An expert body appointed by the General Assembly for 3-year terms. Richard V. Hennes of the United States was a member during 1976. On Dec. 22 he was reappointed for another 3-year term beginning Jan. 1, 1977. |