FINANCE CRISIS

Press, Volume CII, Issue 30143, 29 May 1963, Page 17

FINANCE CRISIS

Compromise Bid At U.N. (N.Z.P.A.-Reuttr— Copyright) NEW YORK. May 28. The United Nations today will resume debate on its financial crisis. Draft resolutions were reported to be in the offing after intensive private efforts had been made to reach a .'Compromise while the General Assembly’s Budgetary Committee was in recess.

A usually reliable source said there nad been progress towards an agreed formula, and the drafts might be published later this week. At least three separate resolutions were believed to be under preparation: one setting down a proposed special rate of assessments for peace-keeping costs, - a second draft dealing with the financing of the United Nations operation in the Congo, and a third on the Middle Elast Emergency Force. Diplomats of Argentina, Brazil, India, Nigeria and Pakistan, broadly representing the under-developed countries, and the - United States, Britain, Canada, Sweden and the Netherlands, representing the Western industrialised nations, have been negotiating the terms. Officials in Washington said yesterday that the United States would press strongly for the automatic suspension of the Soviet Union's vote in the General Assembly if it l did not pay its dues.

Officials said that if the General Assembly failed to sustain Article 19 of the .United Nations Charter — which calls for automatic loss of voting rights in the event of non-payment of dues—it might mark the first step in a steady erosion of the Charter itself.

The Soviet Union announced last week that it would no longer pay for United Nations operations of which it did not approve. Unless this decision is changed, Russia will become delinquent in its dues next year and subject to loss of voting rights in the General Assembly.