B. The United Nations Budget

12. UNITED STATES OBSERVATIONS ON THE UNITED NATIONS BUDGET FOR 1960: Statement Made by the U.S. Representative (Fulton) in Committee V of the U.N. General Assembly, October 5, 1959 1

MR. CHAIRMAN: We believe that we have had a constructive series of general statements on the Budget Estimates for 1960.2 The United States Delegation appreciates the observations of those representatives who have taken part in this discussion. It is refreshing to find such widespread agreement. We agree with the sentiments expressed by each of the distinguished delegates who stressed efficiency and effectiveness from our Secretariat, with economy constantly in mind. We are especially mindful of the position of the new members who have pointed out very well the necessity of making every item count, and their need for special consideration.

This is our Organization and our Budget. When I say "our", I mean that the United Nations belongs to the people of the world. With their interests in mind, I look forward to a productive and constructive session. We must provide here an adequate forum where the interests and problems of all nations are considered-both small and large-and an adequate budget provided in the light of those interests.

We have begun that session with helpful general statements by the Secretary General and the Chairman of the Advisory Committee.* And, as a number of my colleagues have noted, we have the benefit of an unusually good foreword to the budget. The Secretary General devotes particular attention to an informative description of work programs and the machinery by which they are carried forward. We value and appreciate the effort which went into this Foreword. The extra summaries of information with the estimates are also valuable. As usual, the Advisory Committee report selects and highlights the important issues in its "Appraisal of the Estimates." I want to join with others here who have expressed their thanks to the Chairman, Mr. Aghnides, and the members of his Committee.

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As to the Budget Estimates themselves-the United States Delegation supports the recommendations of the Advisory Committee.

We have had significant observations on specific parts of the estimates-both by the Secretary General and distinguished representatives. We listened with interest, and we are going to consider those comments very carefully when we come to the section-by-section reading of the estimates.

There has been comment that the organization and administration of the Secretariat can be tightened up; that there may be some looseness in the assignment of staff or in the scheduling of work. Efficiency, economy, and effectiveness are of concern to us all-and certainly most immediately of concern to our United Nations Secretary General.

Our United States Delegation has concurred with the Advisory Committee, in urging the designation of a senior Secretariat official with overall supervision of budget, personnel, and general management of the Secretariat as a principal staff aide of the Secretary General. We have held this view without, in any way, lessening the high regard and respect which we hold for the officials now concerned with these matters.

We welcome the suggestions from the representative of the USSR and from the Advisory Committee concerning possible management surveys. We will consider these carefully. The views of other representatives on this question will be helpful. We should take note of two special efforts made by the Secretary General to obtain more efficient action by the Secretariat. First, he has framed his budget on a self-denying and stringent basis. No additional professional staff are proposed except in Addis Ababa for the new Economic Commission for Africa. This Commission will be of great help to our African friends. We agree that this approach should promote an evaluation of staff assignments and procedures and assist in a general "toning-up" of the Organization.

Second, on a modest but practical basis the Controller has been carrying out a series of administrative management studies. These range from the introduction of simplified organization and procedures, to the production of a new field administration handbook, and to more economical use of communications and reproduction facilities. These have led, and should continue to lead, to savings and greater efficiency. We hope that this good and important work will continue. Mr. Chairman, I was glad to hear speakers refer to their support for the work of the United Nations related to peace and security. The progress report on the United Nations Emergency Force makes clear its major contribution to peace and security. The Commander and the Secretary General tell us that, to continue to fulfill the mission of the Force, its present strength must be maintained. An important element of our budgetary provisions for 1960 for peace and security will be for UNEF.

One of the administrative issues before us relates to the form of the budget. We think that the last three years' experience has been satisfactory. We favor continuing with the present form for a fur

6

For the establishment of this Commission, see American Foreign Policy: Current Documents, 1958, pp. 96-99.

7 See ibid., 1959, pp. 1052-1059.

* See U.N. docs. A/C.5/776 and A/4228.

ther period, perhaps the same as that covered by the Economic and Social Council five-year appraisal."

Another of the important issues involves the public information activities of the United Nations. In general, the United States Delegation approves the steps taken by the Secretary General, in implementing Resolution 1335 (XIII).10 We recognize that the action outlined in his report represents only first steps. The objectives set forth in last year's resolution are necessarily of a long-range nature. We believe that the Secretary General has made a very real effort to meet the recommendations of some members of this Committee for stabilization in public information expenditures. The course of action proposed by him in paragraph 18 of his report represents a practical approach at this time.

The administration of expanding field offices and field operations should be of increasing concern to us as the Advisory Committee properly observes in its report. Let me emphasize that we favor the decentralization of work where that is the efficient way of accomplishing our tasks—and it often is so. But, at the same time, we must maintain an effective central administrative control in the interest of economy and of avoiding confusion and duplication. We can certainly all agree on that. We members will want to consider carefully the implications of an international-agency mechanism which now includes not only the seven major headquarters locations of the United Nations and the Specialized Agencies, but also 247 established field offices in 83 other cities.

It is not just a matter of arranging common premises and services where possible and practicable-although this is a desirable general aim stressed by the Advisory Committee. Broader matters of coordination among agencies are involved. We can and should ask what progress has been made in strengthening and simplifying the system for administrative and financial supervision and assistance to field offices and projects the Bureau of Technical Assistance operations, the United Nations Childrens Fund, the Special Fund, and the Technical Assistance Board. Recently the central administrative servicing for United Nations Information Centres was brought together with the similar functions performed for special missions. We believe that much more can be done along these lines.

Here is a subject to which we hope the Secretary General, the Advisory Committee, the Administrative Committee on Coordination, the Economic and Social Council, and the Specialized Agencies will devote special attention in the coming months. This Committee will want to return to the problem in the future.

A fourth administrative issue has been on the minds of several delegations. It was mentioned here last year, and again this year, by the representatives of Canada and the Netherlands. Last week, the representative of Argentina quite properly reminded us of the

'Under U.N. ECOSOC Res. 743D (XXVIII) of July 31, 1959; text in U.N. ECOSOC Official Records, Twenty-eighth Session, Supplement No. 1 (E/3290), pp. 23-24.

10

'Text in American Foreign Policy: Current Documents, 1958, pp. 108-109.

importance of the discussion to come under the item concerning administrative and budgetary coordination with the Specialized Agencies. The overall report of the Advisory Committee on its visits to the other agencies is a useful document. This marks the end of one phase and the beginning of another step in the coordination of growing international programs.

The Advisory Committee report makes several things clear: Administrative and financial review processes of the United Nations and the Specialized Agencies need simplification and improvement. The processes of coordination need new vigor-not necessarily new machinery, but new techniques. We need to take a look at the relation between administrative and financial review on the one hand and so-called program review on the other.

Frankly, our United States Delegation is not yet certain what the next steps should be. We know that something must be done. We will listen with interest to the remarks of other delegations, and will be glad to join with them to work out constructive proposals.

Our Committee members have one of the really major issues before the General Assembly at this session-the "cash problem", although that really is an inadequate reflection of the basic situation we face. This issue will receive full consideration later when we will have special reports from the Secretary General and the Advisory Committee. But the general lines of the problem are clear. The amount of arrears in assessments has created a serious situation. Without an improvement in the payments, early next year-only five months from now-the United Nations will have no cash or working capital upon which programs can be continued and carried forward. United Nations will be receiving contributions each month at a rate less than its monthly expenditures. We must all share this responsibility. We like the forthright statement of the able representative of the United Kingdom on the problem of the cash position.11

The

Allow me to summarize briefly the views of our United States Government.

1. The cash problem would be with us even if there were no unusual arrears in assessments. Expansion in United Nations operations which we members have approved creates a need for working cash balances pending receipt of contributions.

2. The arrears in connection with UNEF assessments make the cash problem a critical one. The only way to solve the present critical phase of this chronic problem of arrears is for members to make every effort to pay those arrears. We members of this Committee are here dealing not with the politics of a situation nor with legal interpretation of the Charter. We are providing for expenses of the Organization, expenses incurred in performing its essential function of preserving peace and security.

I can understand that people may hold different opinions on problems in the area involved. They may maintain their reservations, and suggest different arrangements for the future. These possible

1

11 See U.N. doc. A/C.5/PV.713.

future changes should be carefully considered. But paying an assessment is something we must do, even if under protest and with distaste, as responsible members of the United Nations. It is in all our interests to do so in order that this organized form of cooperation among the peoples of the world shall continue in full and efficient operation. We on the United States Delegation receive complaints from home, and each of you Committee members do too, but we must all do our duty to live up to our share of the burdens when we are all receiving benefits from the United Nations and its associated organizations.

3. Two immediate measures are possible to provide emergency cash, pending improvement in the payment situation: first, an increase in the Working Capital Fund; and second, loans from special accounts of the United Nations or from banks. The United States agrees with the Secretary General that both these measures should again be taken. And we can increase the Working Capital Fund without real hardship. The assessment burden can be held to no more than it is this year, yet that will provide from $3 to $4 million additional for the Working Capital Fund.

Mr. Chairman, I have concluded my remarks on a serious note. But the United Nations cash problem does need emphasis and attention. When we have no really major problems in respect of the United Nations Budget itself, and when there is a definite improvement in the international atmosphere, we feel that corrective action should not really be difficult.

Such united action would do much to further facilitate international cooperation. We have so many fundamental programs in which we must work together to better the lot of mankind. I know that all members want to work for economical and efficient administrative and financial planning for the constructive United Nations tasks of the future. In this manner we will fully justify the present optimism of all the peoples of the world, and our member governments.

13. THE UNITED NATIONS BUDGET FOR 1960: Resolution 1443 (XIV), Adopted by the U.N. General Assembly, December 5, 1959 12

The General Assembly

Resolves that for the financial year 1960:

1. Appropriations totalling $US63,149,700 are hereby voted for the following purposes:

"U.N. General Assembly Official Records, Fourteenth Session, Supplement No. 16 (A/4354), pp. 50–51. This resolution was adopted by a vote of 71 (including the U.S.) to 0, with 9 abstentions.

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