the extent of the deficit has been established more clearly, we have a right to hope and to expect that those countries which have not contributed to certain peacekeeping operations will make voluntary contributions to restore the U.N. to solvency in keeping with the consensus reached in the General Assembly last year.20

The second report of the Committee of 14 concerns means of bringing about greater efficiency, planning and coordination in the activities of the United Nations and its specialized agencies. The report was prepared after a full exchange of views in both Geneva and New York with representatives of the specialized agencies and with senior U.N. officials. I doubt that any member of this body would question that a comprehensive review of the operations of the U.N. was long overdue. Ambassador Goldberg pointed out last Fall that the growth in the activities of the U.N. and the specialized agencies has given rise to an increasing need to assure the most effective use of the limited resources available." He expressed his doubts that this could be accomplished unless the procedures and management in each organization were subject to review from time to time.

The Committee of 14's Second Report is a document of hope which contains many forward-looking recommendations. It is significant that this "blueprint for action" was unanimously recommended by all members of the Committee of 14. I would like to mention those to which my Government attaches particular importance.

First, the recommendation that the U.N. family develop a system of longterm planning, program development, and budget preparation is of major significance, in our view. There are tremendous demands on the limited resources of the United Nations, and these demands will grow larger in the years ahead. It is essential that some rational system of priorities be set up

were bona fide obligations of the United Nations and that the surpluses should be credited to member states that contributed to the operations as soon as money is available. On this basis, the United States supported the higher deficit figure of $53 million. The Soviet Union and France, however, took the position that only $32 million was required because, in their view, no such surplus accounts exist for UNOC and UNEF, whose legality they contest." (U.S. Participation in the UN, 1966, p. 270.)

20 No voluntary contributions were made by France or the U.S.S.R. in 1966.

21 See American Foreign Policy: Current Documents, 1965, p. 112.

to insure that these resources will be devoted to the U.N.'s most pressing needs on a well-planned basis. If the Committee of 14's work results in nothing more than bringing this about, its efforts will be well rewarded. The Committee's recommendations on these problems are sound and realistic.

The Committee has also recommended that the U.N. family of organizations improve their techniques for program evaluation so that past experience will be more beneficial in the planning of new projects. Another recommendation calls for the establishment of a small inspection unit to examine actual operations of U.N. organizations, clothed with the authority to suggest changes." Both of these also are important recommendations.

Other recommendations would strengthen the machinery to coordinate activities among the U.N. organizations and to help governments obtain an over-all view of the whole range of problems engaging the U.N. and the specialized agencies. Coordination is a basic need in any large organization; the United Nations family is no exception. My Government supports the recommendations of the Committee of 14 designed to improve the capacities of the General Assembly, Economic and Social Council, Advisory Committee on Administrative and Budgetary Questions, Administrative Committee on Coordination in carrying out their responsibilities for coordinating activities within the U.N. family.

Finally, I wish to mention that very important section of the Committee's report which deals with the troublesome problem of conferences and meetings. We have all been guiltyespecially our respective governments-in failing to face up to what is required to create some order out of the present chaos in the U.N. conference program. The Secretary-General has stated that, "we are faced in 1967, on the basis of present expectations, with a meeting program which will far exceed that of any previous year." "When additional funds for economic and social development are so badly needed, we wonder whether the conference program is not out of proportion to the rest of the budget.

The United States became a member of the 8-nation inspection unit set up to implement this recommendation.

23 See U.N. doc. A/6305.

24

Obviously, the U.N. and its subsidiary bodies must meet regularly if they are to carry on their work. But must they meet as often, for as long, in as many places, with as much equipment, and as many documents as now occurs: Better controls should be imposed to prevent the undue multiplication of meetings and conferences. The Special Committee on Coordination of ECOSOC " has suggested that the General Assembly establish a committee to deal with the subject. This is an idea which deserves careful study. At the same time, we believe the Secretary-General should be encouraged to play a larger role in attacking the problem. As the Advisory Committee on Administrative and Budgetary Questions points out."... he [the Secretary-General] alone is in a position to advise on the size, scheduling and the nature of programmes which may be within the capacity of the staffing and other resources available." "

The Committee of 14's recommendations on this subject are a step in the right direction and my Government would like to see them implemented as soon as possible throughout the U.N. system."

Mr. Chairman, for these reasons the United States fully endorses the beneficial proposals of the Committee of 14. We are confident that their adoption would contribute substantially toward developing a more effective United Nations. We urge the Fifth Committee to approve promptly the Ad Hoc Committee's report and the resolution now before the Committee. We hope that this Committee will propose that the recommendations be implemented as soon as possible by all of the organizations within the UN. family. We know that, if asked to do so, the Secretary-General will take appropriate steps to encourage their implementation, and that he will submit a comprehensive report to the the next Assembly on progress achieved.

When we consider that the total funds available to the U.N. and the specialized agencies now amounts to half a billion dollars annually; that the needs of Member States in the field of economic and social developments are vast, and that these needs

→Economic and Social Council.

UN. doc. E/4215.

* See U.N. doc. A/6307.

See ante, doc. II-8.

compete with every nation's domestic demands and other obligations, it is evident that each agency within the U.N. family must operate as efficiently as possible.

The Advisory Committee on Administrative and Budgetary Questions, which has done excellent work, stated in its recent report to the General Assembly: "Neither the Council nor the General Assembly has ever found a procedure for applying a system of priorities." But, Mr. Chairman, if the U.N. is to make the wisest use of the limited funds available, it must establish more effective control over its budgets, its programs must be better coordinated, and it must establish an effective system of priorities in its work. Implementation of the Committee of 14's recommendations will do much to bring this about.

The fear is sometimes expressed that the introduction of greater coordination and budgetary control into the U.N. system will result in a decrease in emphasis on U.N. Economic and Social programs. I believe the contrary to be true. The countries which contribute the major portion of the funds for these important programs will be more willing to continue doing so, if they can be assured that a genuine attempt is being made to avoid wasteful duplication of programs and swollen administrative costs. For that matter, I am sure that all Member States wish to make certain that their financial contribution for economic and social programs, whether large or small, is used in a way that brings the most progress to the ends it is intended to serve. The citizens of every Member State have a right to expect that the funds they make available will be spent in the most prudent manner possible. As a member of the United States Senate, which must approve all U.S. contributions to the United Nations, I can assure this Committee that our own Congress will find it very difficult to understand if the U.N. does not act to improve its cost-effectiveness and its organizational efficiency.

Mr. Chairman, the U.N.'s $126.5 million expenditure budget for 1967in its present form without the supplementaries which the SecretaryGeneral indicated are yet to be submitted to the Committee is $5.3 million higher than the 1966 budget after taking into consideration the reductions recommended by the

ACABQ. It is, however, significant that the 1966 budget included $3.3 million in non-recurring expenditures. Thus, the 1967 figure reflects a real addition of $8.6 million, or a 7 per cent increase over the 1966 budget even before the supplementaries.

Any budget is a statement of goals and an allocation of expenditures for achieving them. The determination of both are matters of judgment. Although the U.N. budget is prepared by the Secretary-General and examined and commented upon by the ACABQ, the final decision rests with the Member States who must take into account the resources they can furnish. The United States recognizes that the U.N. budget is likely to expand in order to meet the needs of the world community, but, as President Johnson stated in a March 15 memorandum, we are concerned that "further expansions of the activities of the international organizations be governed by the test of feasibility and reasonableness." "

We would expect that all members would be willing to support measures designed to achieve maximum efficiency in operations, and to prevent wasteful and unnecessary duplication in U.N. activities. I hope that I can report back to my colleagues in the U.S. Senate, at the end of this 21st session of the General Assembly, that the U.N. fully recognizes the need for better program and financial management and is taking action to correct present weaknesses.

In conclusion, Mr. Chairman, my Delegation wishes to congratulate the Secretariat on the excellence of its presentations to the Committee. We fully appreciate the arduous work that has gone into the documents before us and we are duly grateful. We also wish to again congratulate both the Committee of 14 and the ACABQ, and their respective Chairmen, for their excellent work. In general we shall support the Advisory Committee's recommended reductions totaling $1,730,600 in the expenditure estimates for 1967. But we are concerned as to whether even these economies are sufficient, and whether further economies could not be made without any adverse effect on the approved programs.

28 Advisory Committee on Administrative and Budgetary Questions.

20 See ante, doc. II-1.

We shall carefully follow the debate in this Committee and give attentive consideration to the further statements of the Representatives of the Secretary-General on the individual sections. We also plan to examine carefully the supplementaries yet to be submitted. We are confident that by making a close and judicious examination of the items before this Committee, we can place the U.N., and indeed the entire United Nations family of organizations, in a stronger position to fulfill its primary role of fostering and preserving human justice and world peace.

Document II-15

Resolution 2150 (XXI), Adopted by the U.N. General Assembly, November 4, 1966

30

Approval of the Recommendations of the Ad Hoc Committee of Experts To Examine the Finances of the United Nations and the Specialized Agencies

The General Assembly,

Recalling its resolution 2049 (XX) of 13 December 1965 establishing the Ad Hoc Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies,"

Noting with appreciation the work done by the Ad Hoc Committee with the co-operation of the United Nations Secretariat, the specialized agencies and the International Atomic Energy Agency and other United Nations organs and related bodies,

Noting further that the Ad Hoc Committee, in compliance with paragraph 6(b) of the above-mentioned resolution, has submitted its recommendations to the General Assembly in its report dated 19 July 1966,

33

Bearing in mind that certain subsequent actions must be taken by

30 U.N. doc. A/6316, pp. 81-82. This resolution, recommended by Committee V of the UN. General Assembly, was adopted unanimously.

31 Text in American Foreign Policy: Current Documents, 1965, pp. 113-114.

32 U.N. doc. A/6343; see also supra.

Member States, the United Nations organs and related bodies, and the specialized agencies and the International Atomic Energy Agency, to ensure the effective implementation of the recommendations made by the Ad Hoc Committee,

Recognizing that the full implementation of the recommendations made by the Ad Hoc Committee would also require the co-operation of the specialized agencies and the International Atomic Energy Agency in the spirit of Article 58 of the Charter of the United Nations and in the light of the agreements between them and the United Nations,

1. Approves the report of the Ad Hoc Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies and the recommendations contained therein;

2. Urges that the recommendations and comments contained in the report be given the most attentive consideration by Member States and by the United Nations organs and related bodies with a view to the earliest implementation of the recommendations;

3. Requests the Secretary-General, as chief administrative officer of the United Nations, to take the appropriate measures to give effect to those recommendations requiring his action, including the submission of proposals to the competent United Nations organs and related bodies;

4. Recommends to the specialized agencies and the International Atomic Energy Agency that they give the most attentive consideration to the recommendations contained in the report and that they take appropriate measures, within their respective areas of competence, with a view to the earliest possible implementation of those recommendations;

5. Requests the Secretary-General, as Chairman of the Administrative Committee on Co-ordination, to encourage the adoption of the appropriate measures by the specialized agencies and the International Atomic Energy Agency, particularly those requiring concerted action;

6. Further requests the SecretaryGeneral to transmit the present resolution and the report of the Ad Hoc

35

In examining the draft resolution before us, the United States took careful note of the fact that it is sponsored by four countries which have been among the staunchest supporters of an effective United Nations. We note, too, that other equally staunch supporters-the U.K., Italy, the Democratic Republic of the Congo and Norway-have this morning raised serious and fundamental objections to the proposal-and all eight are countries which the U.S. counts as good friends. We have therefore approached this text with these considerations in mind and we find that we must join those who have fundamental objections to it.

First, Mr. Chairman, we wish to call the Committee's attention to General Assembly resolution A/RES/1739 (XVI) dated 20 December 1961.3" That resolution was proposed by the Secretary-General as a means of giving the United Nations a breathing space, for a time, from its financial difficulties which were beginning to mount because of the refusal of certain members to pay their duly assessed con

23 Text in American Foreign Policy, 19501955: Basic Documents, vol. I, pp. 134-161.

34 U.S.-U.N. press release 4968.

85 U.N. doc. A/C.5/L.876, sponsored by the Representatives of Argentina, Brazil, India, and Nigeria.

36 Text in American Foreign Policy: Current Documents, 1961, pp. 111-113.

tributions for the Congo and the Middle East operations.

The resolution and possible solutions were debated over a considerable period of time. Not all nations, including several of the present cosponsors, were in full agreement as to the best method of resolving the mounting financial crisis. However, at the end of the debate this resolution was passed. It constituted an appeal to the members of the United Nations to purchase United Nations bonds up to a total of $200 million, provided for the method of repayment; and it was well known by all concerned that most of the funds raised would be used to pay for Congo and UNEF 37 expenses for the year beginning in mid-1962 and ending in mid-1963.

The resolution itself set forth the terms and conditions under which the bonds would be repaid and provided for inclusion of amounts to repay the in bonds "annually the regular budget of the United Nations."

It was on this basis, Mr. Chairman, that 64 countries purchased United Nations bonds. In presenting the request to parliaments, these nations, including the United States, relied on the commitment-and had every right to do so--of the General Assembly as to the basis on which the bonds would be repaid.

The United States itself, which purchased $76 million of the total issue, assured the United States Congress that the United Nations would live up to its commitment as to repayment. If the United Nations should change the method of repayment, namely from inclusion in the regular budget, and especially if it should attempt to repay them on any basis other than according to the regular scale of assessments, this would constitute a major breach of faith and raise serious questions about the reliability of the United Nations.

In addition, we wish to recall to the Committee's attention that the interest on these bonds is nominal. Strong objections were raised to making any loans to the United Nations at 2%, which is far below prevailing rates. Because the United States Treasury can borrow money only at much higher rates, this difference in itself has made this transaction very costly to the United States.

37 United Nations Emergency Force.

Perhaps equally important are the contributions which the United States has already made to both the Congo and UNEF peacekeeping operations. United States contributions—both assessed and voluntary-excluding the period during which these costs were financed from bond proceeds, totalled nearly 50% of total contributions. In fact the cost of both operations, including the portions financed from the sale of bonds, totalled $577 million from the beginning of the operations to the end of 1964. Of this amount, the United States contributed $244.5 million. The United States paid in full all of its assessments and substantially more.

Meanwhile, there are those nations among the United Nations membership who have refused to pay well over $100 million of the assessments made against them for these operations. And the General Assembly has set aside the application of Article 19 on these amounts. If these amounts were paid in full, the bond issue could largely be retired from these payments alone and thereby remove the burden from the budget and the issue from this Committee.

38

Mr. Chairman, it would therefore be doubly inappropriate for the General Assembly to revise its method of repaying the bonds to extract greater amounts from the countries, including the United States, that have paid and continue to pay their assessed contributions in full to the United Nations and who have also made and continue to make very large voluntary contributions to the support of the many and diversified activities of the United Nations and its family of agencies.

Mr. Chairman, I have been further instructed to advise the sponsors of the proposed resolution and the Committee that the United States domestic legislation which authorized our purchase of United Nations Bonds contains the following proviso:

Section 3: There shall be deducted from the annual payment of the assessed share of the United States of the budget of the United Nations an amount equal to the corresponding annual installment of principal and interest due to the United States on

38 See American Foreign Policy, 1950-1955: Basic Documents, vol. I, pp. 134-161; and American Foreign Policy: Current Documents, 1965, p. 104.