relaxation of tension in Europe and in West-East relationships will require progress toward the peaceful reunification of Germany in freedom. Both leaders restated their intention to continue to seek improvement in relations with the nations of Eastern Europe.

The Chancellor reaffirmed Germany's fundamental commitment to European unity and his confidence in the ability of the effective institutions already created to contribute to its achievement. The President assured the Chancellor that the United States remained convinced that a united Europe is important to the achievement of an effective Atlantic Partnership.

The President and the Chancellor agreed that the successful conclusion of the Kennedy Round trade negotiations is of major importance to the progress of the Free World, for developed and developing countries alike. They also agreed that, to attain their full promise, these historic negotiations must move forward as rapidly as possible with the active participation of the EEC [European Economic Community].

Recent developments in other parts of the world, particularly in the Far East, were also examined. The President described the situation in Viet-Nam and the efforts of the Governments of South Viet-Nam and the United States, together with their allies, to bring about a peaceful and just settlement. He expressed his appreciation for the support of the Federal Republic of Germany in the struggle to deter Communist aggression against South Viet-Nam. The Chancellor stated the determination of his Government to continue to assist in this effort for the cause of freedom.

The President and the Chancellor reviewed the aid programs of their governments and emphasized the great importance of effective aid to developing countries. In this connection, they noted that over 90 percent of all external resources flowing to these countries is provided by the Free World. They agreed that there was need for increased effort on the part of developed countries to provide funds to assure that adequate levels of aid are maintained. At the same time, they emphasized the need for greater self-help by the developing countries. The President was pleased to hear the Chancellor's description of the progress of the German Development Aid Service (German Peace Corps).

The President and the Chancellor welcomed the establishment of the Asian Development Bank to which their governments would make substantial contributions. They reemphasized the value of economic and social development in Southeast Asia as a way of promoting peace in that region.

They also discussed the arrangements between the two governments whereby United States military expenditures in Germany entering the balance of payments are offset by the Federal Republic through its purchase of United States military equipment and services. It was agreed that these arrangements were of great value to both governments and should be fully executed and continued.

The President and the Chancellor discussed social developments in the United States and in Germany. They expressed the view that their concepts of the "Great Society" and the "Formierte Gesellschaft" have much in common and that a joint discussion of experiences should take place as soon as possible.

The President and the Chancellor agreed that the tradition and practice of effective consultation between their governments-reflecting the friendship and trust which has grown up between the people of the United States and Germany-would lead to even closer and more fruitful relations in the future between the United States, the Federal Republic of Germany and their partners.

Document IV-71

German-United States Protocol Modifying the Convention of July 22, 1954 for the Avoidance of Double Taxation With Respect to Taxes on Income, Signed at Bonn, September 17, 1965, Entered Into Force, December 27, 1965 72

72 TIAS 5920: 16 UST 1875. For the text of the 1954 Convention, see TIAS 3133; 5 UST 2768. Text of the letter from President Johnson transmitting the protocol to the Senate, Sept. 29, for its advice and consent to ratification appears in the Department of State Bulletin, Nov. 1, 1965, pp. 722-723; for further information on the nature of the protocol, see ibid., Oct. 4, 1965, p. 573, and ibid., Jan. 17, 1966, pp. 90-91.

in Cyprus

Document IV-72

Report of the U.N. SecretaryGeneral (Thant), March 11, 1965 (Excerpts)1

The United Nations Operation in
Cyprus During the Period From
December 13, 1964 to
March 10, 1965

1. I have the honour to submit to the Security Council my report on the United Nations Operation in Cyprus, covering developments from 13 December 1964 to 10 March 1965, and bringing up to date the record of United Nations activities under the mandate of the Security Council in its resolutions of 4 March, 13 March, 20 June, 9 August, 25 September and 18 December 1964.2

2. During the fourth three-month period of the stationing of the United Nations Peace-keeping Force in Cyprus, the peace has been kept, the cease-fire has by and large been observed, and, despite certain difficulties which are described in chapters I and II below, the military situation in general has remained quiet.3 The inability to find a basis for a final settlement, or indeed for a return to normal conditions, has caused a renewed feeling of uneasiness among Cypriots which has made the task of the United Nations Force more difficult.

the two national contingents, maintained on the island by the Governments of Greece and Turkey under the provisions of the Treaty of Alliance of 16 August 1960. The effective strength of the Government forces is further enhanced by the presence of a substantial number of military personnel from Greece not forming part of the Greek national contingent. Moreover, it is a factor in the situation that the Turkish Cypriots naturally continue to look to the nearby mainland of Turkey for military assistance in a new crisis.

268. In its resolution of 4 March 1964 the Security Council recommended that "the Secretary-General designate, in agreement with the Government of Cyprus and the Governments of Greece, Turkey and the United Kingdom, a mediator, who should use his best endeavours with the representatives of the communities and also the aforesaid four Governments, for the purpose of promoting a peaceful solution and an agreed settlement of the problem confronting Cyprus, in accordance with the Charter of the United Nations, having in mind the well-being of the people of Cyprus as a whole and the preservation of international peace and security."

269. Since the submission of the last report on the United Nations Operation in Cyprus [S/6102] the United Nations Mediator on Cyprus, Mr. Galo Plaza, has undertaken a third series of consultations with the parties to the Cyprus problem referred to in the Security Council resolution. During this series of consultations he visited Nicosia from 11 to 17, from 20 to 23 and again from 25 to 27 February 1965; he visited Athens from 17 to 19 and from 27 to 28 February, Ankara from 23 to 25 February and London from 28 February to 2 March. In Nicosia he had

4 Between the Governments of Cyprus, Greece, and Turkey; text in Cmnd. 1093, pp. 88-90, and 397 UNTS 287. See American Foreign Policy: Current Documents, 1959, p. 771. See ibid., 1964, p. 600.

further talks with the President and the Vice President of the Republic of Cyprus and a number of the Ministers of the Government, and also with other leaders, both official and unofficial, of the two communities in Cyprus. In Ankara he met with the Prime Minister, the Deputy Prime Minister, the Foreign Minister and other officials of the new Government of Turkey formed on 20 February; in Athens with the Prime Minister, the Foreign Minister and other officials of the Government of Greece; and in London with the Secretary of State for Foreign Affairs, the Minister of State for Commonwealth Relations and other officials of the Government of the United Kingdom.

270. In accordance with his terms of reference, the Mediator has continued from time to time to keep the Secretary-General informed about his activities. Upon his return to Headquarters on 2 March, the Mediator indicated his intention to submit toward the end of March a comprehensive report on his efforts to date."

271. When I recommended in my last report to the Security Council the extension of UNFICYP for a further period of three months, until 26 March 1965, I had some hope that this might be the last such recommendation that I would find it necessary to make. UNFICYP has now been established for about a year, and, despite the effort of all concerned and the very creditable results achieved thus far, I now see no alternative but to recommend another extension of the Force for a further three months, that is, until 26 June 1965. This, if approved, will be the fourth extension of the Force.

272. In making this recommendation, I am aware that it will become increasingly difficult to maintain UNFICYP because of the special burden on those providing contingents and also because of the growing difficulty of financing UNFICYP by voluntary contributions, particularly since these contributions have, so far, come only from a small number of States, a number of whom have contributed for each period. I wish to express my appreciation to the Governments of the contributing States, without whose generosity the

See post, doc. IV-75.

Force could not have been maintained.'

273. Consideration is being given to the possibility at some stage of reducing the size of UNFICYP, but the Commander naturally sees great difficulties in any substantial reduction in strength, owing not only to the continuing heavy commitments which the Force has to meet with its present strength, but also to recent indications of increasing tension and frustration in the island." Although UNFICYP has had remarkable success since August 1964, in keeping the peace in Cyprus, there can be little doubt, as I pointed out in my last report, that the law of diminishing returns will almost inevitably apply in time to its effectiveness in keeping the peace. One indication of this probable trend which deserves brief mention is the attitude of some sections of the local Press. which has, on several occasions in the past three months, engaged in tendentious and fanciful campaigns against UNFICYP. Such campaigns, though short-lived and unsubstantiated, cannot fail to have an adverse effect on the attitude of the population and the armed forces toward UNFICYP and have led, in some cases, to incidents and misunderstandings.

274. Another indication of the present situation of the United Nations Force in Cyprus is the renewed vigour with which, in recent weeks, a number of questions have been raised about its mandate. These questions, which have been advanced before, arise from the inevitable fact that UNFICYP by its very nature cannot wholly satisfy the aspirations and aims of either community in Cyprus. On the one hand, it cannot act as an instrument of the Government in helping it to extend its authority by force over the Turkish Cypriot community in the areas now under its control. On the other hand, it cannot assume responsibility for restoring the constitu

Par. 264 of the report (not printed here) stated that 35 governments, including 4 nonmembers of the United Nations, had pledged the equivalent of $20.6 million to finance UNFICYP through Mar. 26, 1965.

* UNFICYP, as of Mar. 8, 1965, consisted of 5.978 military personnel provided by Austria, Canada, Denmark, Finland, Ireland, Sweden, and the United Kingdom, supplemented by 173 civilian police from Australia, Austria, Denmark, New Zealand, and Sweden. These 6,151 men were under the command of Gen. K. S. Thimayya of India (pars. 3-7 of the source text).

tional position which existed prior to the outbreak of hostilities in 1963 and early 1964, nor to contribute to the consolidation of the present stalemate in the island. Both of these courses would basically affect a final settlement of the country's problems, a matter which is the province of the Mediator and not of UNFICYP. The Force's action is limited to doing its best to halt violence, to promote a reduction in tension and to restore normal conditions of life, thus creating an atmosphere more favourable to the efforts to achieve a long-term settlement.

275. The fact that the anticipated debate on Cyprus in the General Assembly during its nineteenth session did not take place has undoubtedly been one factor which has added to prevailing feelings of frustration and uncertainty in Cyprus. While the last months have been relatively peaceful, this should not blind anyone to the equally significant fact that both sides in Cyprus are now better prepared to fight, from a military point of view, than before, and consequently the results of any renewal of fighting are likely to be more severe than heretofore.

276. In recommending the extension of UNFICYP for a further three months, I once again appeal to the parties concerned to make the most sincere and determined effort, by negotiations, both among themselves directly and through the Mediator, to find an agreed basis for long-term solutions of their intercommunal problems. Only this can afford real assurance against a renewal of violence in Cyprus with all of its disastrous consequences.

277. In chapter III of the present report, I outlined the activities carried out by UNFICYP in its efforts to promote a return to normal conditions in Cyprus. These efforts seem to have reached their limits, in the face of the rigid positions taken by the Government, on the one hand, and by the leaders of the Turkish Cypriot community, on the other. If a break-through in this unsatisfactory and dangerous situation, which is little short of an uneasy truce with opposing armed elements facing each other in several points

See American Foreign Policy: Current Documents, 1964, p. 134. The debate did not take place because of the "no-voting understanding" reached as a result of the UN. financial crisis.

in the island, is to be achieved, bold decisions are required from the Government and from the Turkish Cypriot leadership. I cannot emphasize too strongly how tenuous is the peace in the areas where Government forces and Turkish Cypriot fighters are poised against one another across a narrow no-man's land. In my judgement, there is a clear need for a gradual and progressive dismantling of fortifications with a view to achieving in the shortest possible time and under adequate protection and guarantees from UNFICYP, the removal of all fortifications and armed military posts in the island not essential for the defence of Cyprus against external attack. My Special Representative and the Commander of the Force have discussed this question with the Government and the Turkish Cypriot leaders and will shortly submit to them concrete proposals to this end. I strongly urge the parties to give their support to these efforts.

Document IV-73

Statement Made by the U.S. Representative (Stevenson) in the U.N. Security Council, March 19, 1965 (Excerpt) 10

United States Hope for a Rapid Solution of the Cyprus Problem

Mr. President, as this Council considers the extension of the mandate of the United Nations peacekeeping force in Cyprus, we are once again the beneficiaries of an excellent report prepared by the Secretary-General." In clear, precise, yet judicious language he has set out for us the essential elements of the current situation in Cyprus. His report makes easier our task of forming balanced judgments on what needs to be done to move closer to the objectives of the Security Council resolution of March 4 [1964].12

Secretary-General's

recommendation that the United Nations peacekeeping force in Cyprus be extended for a further 3-month period. My delegation believes that the United Nations force has discharged its delicate task with admirable propriety, efficiency, and energy. And we believe that the continued presence of UNFICYP on Cyprus is still essential to the creation of the conditions necessary to the working out of an agreed solution.

The Secretray-General's report documents the dangers, the provocations, the crises, and the frustrations with which these soldiers of peace must cope from day to day-and in the middle of the night, as well. Yet they have managed to be in the right places at the right time to prevent many ugly incidents from leading to local strife and to keep local strife from spreading throughout this land SO long poisoned by communal bitterness.

The service to peace rendered by the men and their leaders who are wearing the insignia of the United Nations on the island of Cyprus has, we believe, earned universal gratitude and admiration. So I wish to join the other speakers and express the thanks of the United Nations for a job well done to General [K. S.] Thimayya and to the officers and men from Canada, Ireland, the United Kingdom, Denmark, Finland, and Sweden who stand the peace watch for all of us on Cyprus. We owe our thanks, too, to the contingents of civilian police from Australia, Austria, Denmark, New Zealand, and Sweden who serve in the U.N. Force. And we are grateful as well to the enlightened statesmen of these nations which have made the forces available in the service of peace and in keeping faith with the first responsibility of this organization.

We welcome, Mr. President, the draft resolution submitted by the delegations of Bolivia, the Ivory Coast, Jordan, Malaysia, the Netherlands, and Uruguay and shall vote for it. We believe that its sponsors have acted wisely not only in proposing the extension of UNFICYP for another 3 months but also in noting the continued uneasiness which prevails at several points, in reaffirming the Council's previous resolutions,

13 Infra.

and in calling on the parties concerned to act with the utmost restraint and to cooperate fully with the U.N. Force.

The mere presence of the UN. Force on Cyprus, important as it is, is not enough, Mr. President. To be effective, it must be permitted to carry out the mandate assigned to it by this Council in its resolution of March 4, 1964. My delegation has read with concern in the SecretaryGeneral's report of instances of failure to cooperate with UNFICYP and of instances in which the freedom of movement of UNFICYP was denied or seriously abridged. I think that this Council is entitled to expect that, so long as it keeps a force on the island, the parties will respect the rights of that force and cooperate fully with it a point that is covered in the draft resolution before us. It was reassuring, therefore, to hear the Foreign Minister of Cyprus [Spyros Kyprianoul state on Wednesday [March 17] that his Government will "strengthen" its cooperation with UNFICYP.