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-Rationalization of the U.N.'s fragmented assistance programs;

Strengthened leadership within the central Secretariat and the entire U.N. system for development and economic cooperation;

Streamlining of the Economic and Social Council; -Better consultative procedures to insure effective agreement among members with a particular interest in a subject under consideration; and

-A mechanism for independent evaluation of the implementation of programs.

The United States proposes that 1976 be dedicated as a year of review and reform of the entire U.N. development system. An intergovernmental committee should be formed at this session, to begin work immediately on recommendations that can be implemented by the General Assembly in its 1976 session. We consider this a priority in any strategy for development.

For the full text of Secretary Kissinger's address to the Seventh Special Session of the U.N. General Assembly, see Dept. of State Bulletin, Vol. LXXIII, No. 1891, Sept. 22, 1975, pp. 425-441; Report by Congressional Advisers to the Seventh Special Session of the U.N., Joint Committee print, 94th Cong., 1st Sess., Oct. 13, 1975, pp. 35–61.

Sec. VII of the resolution of the U.N. General Assembly, adopted on Sept. 16, 1975, at the close of the Seventh Special Session, is entitled “Restructuring of the Economic and Social Sectors of the United Nations System(A/RES/3362 (SVII). It established an Ad Hoc Committee to prepare detailed action proposals and to be open to participation by all states, with executive level participation by United Nations organs, specialized agencies of the U.N., and the International Atomic Energy Agency. For the text of Res. 3362 (S-VII), see post, Ch. 10, § 3, pp. 576-586.

E. FINANCING

Twenty-five Percent Limitation

Under Section 203 of the Foreign Relations Authorization Act, Fiscal Year 1976 (P.L. 94–141; 89 Stat. 762; 22 U.S.C. 287e note), approved November 29, 1975, the following exception is made to the twenty-five percent limitation on U.S. contributions to the United Nations and affiliated agencies:

Appropriations are authorized and contributions and payments may be made to the following organizations and activities notwithstanding that such contributions and payments are in excess of 25 per centum of the total annual assessment of the respective organization or 334/3 per centum of the budget for the respective activity: the International Atomic Energy Agency, the joint financing program of the International Civil Aviation Organization, and contributions for international peacekeeping activities conducted by or under the auspices of the United Nations or through multilateral agreements.

United Nations

On October 10, 1975, David L. Stottlemyer, United States Representative in Committee 5, presented a statement on the United Nations program budget in which he stressed the need to economize and stated that the United States would not support any increase in the Working Capital Fund. He stated, in part:

In the current economic climate, we believe that "austerity" should be the guiding principle. :

At the same time . . . we recognize that certain significant decisions have been taken since the Secretary-General's program budget was prepared which might require additional resources. Most notable was the resolution adopted by the 7th Special Session of the General Assembly which imposed certain requirements on the total United Nations system ... we would expect the Secretary-General to absorb a certain proportion through the redeployment of existing resources.

My delegation would like to emphasize that roughly 75% of the expenditures by the United Nations under the regular budget are to meet personnel costs and that the largest part of the program budget increase for 1976–77 is to provide for additional staff resources. We note that some 830. new posts were approved in the current biennium, but that only half of these have been filled. At the same time, the Secretary-General has requested another 826 new posts for 1976–77. My delegation believes that such expansion cannot be justified, especially given current world economic difficulties, the budgetary stringency being practiced by a number of member states, and the financial predicament in which the United Nations is entangled. In particular, we seriously question the "backdoor approach” to the expansion of staff resources by which temporary posts are converted to a permanent basis. We also find wisdom in the comments . . . concerning the large number of posts at the higher salary levels resulting from an evident "grade creep," and urge the Secretary-General to take immediate and effective steps to correct this trend. My delegation also believes that, rather than as a matter of course expanding the Secretariat to meet new needs, the Secretary-General should make a new and serious effort to improve the utilization and productivity of existing staff. ...

In requesting funds to cover anticipated inflation in 1976 and 1977, the Secretary-General is applying the concept of “full budgeting." The United States joins the many other delegations who do not support this concept, since it eliminates a major incentive for economy and savings. ... we would request the representative of the Secretary-General to furnish information as to the amount of money included in the estimates to meet inflationary costs in the second year of the biennium, i.e., 1977.

We will propose that this amount be deleted from the 1976/ 77 appropriation.

the views of my delegation concerning the United Nations' financial problem should be well-known to all assembled in this hall. We have been deeply concerned about this situation since it poses a particular threat to the ability of this Organization to assist the member states, both collectively and individually, but especially the developing countries. We are committed to finding a comprehensive solution to this longstanding problem, and, given the will of all member states, we firmly believe that a satisfactory solution can be found. My delegation has been, and continues to be, prepared to work with other delegations to that end. ...

The United States cannot support any increase in the size of the Working Capital Fund. In our opinion, such a course of action would solve nothing; in fact, it would probably only delay the time when the total membership would be compelled to face up to the Organization's financial problems.

Press Release USUN-113(75), Oct. 10, 1975.

United Nations Emergency Force On July 3, 1975, the United States transmitted to the SecretaryGeneral of the United Nations a check in the amount of $17,278,413, which covered the United States contribution toward the apportioned costs of the United Nations Emergency Force (UNEF) (including the United Nations Disengagement Observer Force) through the period ending April 24, 1975. The payment represented a total of $34,614,613 contributed toward the total UNEF costs of $119,800,000 for the period October 24, 1973, to April 24, 1975.

Press Release USUN-72(75), July 3, 1975. Dept. of State Bulletin, Vol. LXXIII, No. 1885, Aug. 11, 1975, p. 230.

United Nations Peacekeeping Force in Cyprus

Carlyle E. Maw, Under Secretary of State for Security Assistance, on June 4, 1975, announced a determination pursuant to section 653(b) of the Foreign Assistance Act of 1961, as amended, that a supplementary contribution not to exceed $4.8 million from Security Supporting Assistance Funds to the United Nations Peacekeeping Force in Cyprus (UNFICYP) was in the security interest of the United States. The announcement ordered the

determination and its justification to be reported to Congress and no funds to be provided to the UNFICYP pursuant thereto until 10 days after such report had been made.

See Fed. Reg., Vol. 40, No. 118, June 18, 1975, p. 25696. Sec. 653(b) of the Foreign Assistance Act of 1961, as amended by P.L. 93–559 (22 U.S.C. 2413), approved Dec. 30, 1974, provides as follows:

Notwithstanding any other provision of law, no military grant assistance, security supporting assistance, assistance under Chapter 1 of part 1 of this Act, or assistance under part V of this Act, may be furnished to any country or international organization in any fiscal year, if such assistance exceeds by 10 percent or more the amount of such military grant assistance, security supporting assistance, assistance under Chapter 1 of part I of this Act, or assistance under part V of this Act, as the case may be, set forth in the report required by subsection (a) of this section, unless-

(1) the President reports to the Congress, at least ten days prior to the date on which such excess funds are provided, the country or organization to be provided the excess funds, the amount and category of the excess funds, and the justification for providing the excess funds; and (2) in the case of military grant assistance or security supporting assistance, the President includes in the report under paragraph (1) his determination that it is in the security interest of the United States to provide the excess

funds. This subsection shall not apply if the excess funds provided in any fiscal year to any country or international organization for any category of assistance are less than $1,000,000.

On July 3, 1975, the United States presented to the Secretary, General of the United Nations a check in the amount of $4,800,000, which completed the United States contribution to the United Nations Peacekeeping Force in Cyprus (UNFICYP) for fiscal year 1975. It brought the cumulative total of United States support for UNFICYP to $76.1 million.

Press Release USUN-74(75), July 3, 1975. Dept. of State Bulletin, Vol. LXXIII, No. 1885, Aug. 11, 1975, p. 230.

United Nations Disaster Relief Organization On May 6, 1975, Ambassador John Scali, United States Representative to the United Nations, signed a grant agreement for a $750,000 United States contribution to the United Nations Disaster Relief Organization (UNDRO) to strengthen that body's capacity to provide an efficient and effective worldwide service of mobilizing and coordinating disaster relief. In a press release issued that day, the U.S. Mission to the United Nations took note of Secretary of State Kissinger's address to the General Assembly on September 23, 1974, calling for a substantial strengthening of the world's capacity to deal with natural disaster, especially the improvement of UNDRO, and to the resolution subsequently introduced by the United States to that effect, and approved by

the General Assembly on November 29, 1974 (U.N.G.A. Res. 3243 (XXIX)).

Press Release USUN-36(75), May 6, 1975. See also the 1974 Digest, Ch. 10, § 3,

p. 511.

United Nations Relief and Works Agency for Palestine

Refugees in the Middle East

On June 14, 1975, Secretary of State Henry A. Kissinger made a determination in accordance with the provisions of section 903(c) of the Foreign Assistance Act of 1961, as amended (22 U.S.C. $ 2443(c)), “that a reasonable number of countries other than the United States will contribute a fair share toward the settlement of the current deficit of the United Nations Relief and Works Agency for Palestine Refugees in the Middle East (UNRWA) within a reasonable time after enactment of the Foreign Assistance Act of 1974 (P.L. 93–559, approved Dec. 30, 1974, 88 Stat. 1795).” The determination provided that in accordance with the provisions of section 903(b) of the Foreign Assistance Act of 1961, as amended (22 U.S.C. $ 2443(b)), no obligations were to be incurred on the basis thereof prior to June 23, 1975.

On July 11, 1975, Ambassador W. Tapley Bennett, Jr., Acting Representative of the United States to the United Nations, presented a check for $6 million as a special United States contribution to UNRWA, to the Director of the New York Liaison Office. He made the following statement:

This $6 million completes the donation by the United States of $16 million in special contributions to UNRWA in 1975. These amounts, which are in addition to the regular $23.2 million United States contribution to UNRWA for 1975, were authorized by the United States Congress at its own initiative in response to testimony before its committees by the State Department on UNRWA's critical financial deficit. That deficit was reduced by 40 percent, from $40 million to $24 million, by these contributions.

The United States believes that UNRWA's humanitarian work, although amply justified by its very nature, is also essential to the search for peace in the Middle East. In support of this conviction, the United States has contributed, from the establishment of UNRWA through June 30, 1974, a total of almost $581 million, or about 58 percent of all contributions made by governments in that period.

The United States urges other countries who have not yet contributed in proportion to their resources to join it in providing those funds for that vital work.

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