U.N. BONDS Govt. Decides To Complete Purchase

Press, Volume CII, Issue 30109, 18 April 1963, Page 10

U.N. BONDS Govt. Decides To Complete Purchase

(New Zealand Press Association)

WELLINGTON, April 17

New Zealand will meet its commitment to buy the equivalent of one million dollars of United Nations’ bonds.

The Prime Minister (Mr Holyoake) said today that ‘the Government's decision to subscribe to the bond issue was made last year, but it was decided to spread the payment over two financial years. The first 500.000 dollars was paid last June. The balance of the bonds would be purchased over the next three months.

Mr Holyoake stressed the serious financial plight of the United Nations which made the bond issue necessary. “That problem, unfortunately, still remains today. Only 35 member countries, New Zealand among them, have fully met their assessed share of the expenses of the United Nations operation in the Congo.” he Said. “Forty-eight countries have paid nothing and the remainder have fallen into

arrears. At the end of 1962 the total arrears for this one operation amounted to 73 million dollars. “But for the success of the bond issue, itself an emergency measure, the United Nations efforts in the Congo could not have been sustained, and the whole purpose ot the operation, now approaching a hopeful stage, where civilian reconstruction rather than military action, is the essential task remaining, would have been frustrated.

United States Contribution “Aided by the generosity of the United States, which agreed to contribute dollar for dollar to match the total contributions of other member countries, the bond issue to date has realised a total of some 130 million dollars in payments from 43 countries and has financed United Nations’ peacekeeping forces in the Congo and also the Middle East over the last year.

“Despite this effort however, the organisation’s financial position remains critical. “Last year the General Assembly accepted an advisory opinion of the International Court of Justice that the costs of operations in the Congo and the Middle East were part of the expenses of the United Nations and were a legitimate obligation on all members.

“Since then however, no agreement has been reached on the methods by which such expenses should be assessed. A special session of the assembly is to be called next month to consider this problem which is of the utmost importance for the future of the United Nations. "New Zealand believes the costs of collective security involve collective responsibility. Since peace benefits all. all should bear the cost of keeping it We have paid our assessed portion of all United Nations’ costs fully and promptly, and will continue to do so. The Government will give firm support to efforts in the United Nations to induce all members of the United Nations to meet their financial obligations," said Mr Holyoake.