The Press THURSDAY, OCTOBER 1, 1964. U.N.’s Shaky Finances

Press, Volume CIII, Issue 30560, 1 October 1964, Page 16

The Press THURSDAY, OCTOBER 1, 1964. U.N.’s Shaky Finances

The Security Council’s protracted discussion about renewing the mandate for the peace-keeping force in Cyprus raises again the vexed question of United Nations finances. After returning from abortive discussions in Moscow about the 52 million dollars Russia owes to the United Nations, U Thant said the peace-keeping force in Cyprus would have, to be withdrawn on September 26 unless the money for its extension (about £2 million for three months) was in sight The continued deterioration, in Cyprus made him change his attitude. The Secretary-General then told the Security Council that, if it decided to prolong the force’s mission, he would draw on the United Nations treasury to pay the difference between what he could induce members to subscribe and the cost. The expedient would be based on a General Assembly resolution of last year authorising the Secretary-General to spend limited amounts on his certificate that the amounts related to the maintenance of peace and security. There is some doubt about the amount the Assembly’s resolution authorises the Secretary-General to spend without waiting for an appropriation, but it was felt that, if the Security Council authorised continuance of the Cyprus force, legal complications would not be allowed to stand in the way.

Though all the financial details are not yet clear, the method devised to finance the Cyprus force continues a technique first used in 1962 to avoid further disputes about imposing assessments for peace-keeping interventions. Indonesia and the Netherlands agreed then to divide the expense of troops sent to New Guinea during the interim United Nations administration before cession to Indonesia. The method was used again when the United Arab Republic and Saudi Arabia agreed to share the cost of a small United Nations group in the Yemen. The technique was varied in the case of Cyprus, because the cost of the peace-keeping operation was too big for the chiefly-interested parties—Cyprus, Greece, and Turkey—to bear without help. Other countries gave donations (the United States more than 4 million dollars), and Britain and Canada agreed to pay the costs of the contingents they supplied. A somewhat similar arrangement will meet the financial problem for the next three months, but it will leave untouched the larger and more intractable problem of United Nations finance.

The United Nations owes about £3O million on the Congo force (which was withdrawn on June 30), plus about £6O million in bonds issued to meet deficits caused by non-payment of the assessments for the Congo and Middle East forces. Russia owes the United Nations 52 million dollars, and. it has repeatedly said that it would not pay its assessments for the Congo and Middle East. Moreover, Russia defies the members that wish to impose the penalty fixed by the Charter for members owing the equivalent of two years’ assessments—the loss of their General Assembly vote. The United Nations’ title to these sums is clear. Russia’s principal argument that no nation was bound to pay the peace-keeping assessments if it voted against them was rejected by the World Court; and last year the World Court’s decision was supported in the General Assembly by 72 votes to 12. Some members are adamant that Russia must not evade this obligation, contending that, if it is allowed to do so, the United Nations will abandon a principle, and thus help to reduce, itself to impotence. The United States Secretary of State (Mr Rusk) has said that his country will move at the General Assembly in November that the Charter will automatically apply to defaulting nations. A resolution of the United States Congress endorses that stand.

At the same time, the United States and Britain, like Russia, have become concerned about the great enlargement of the United Nations. A two-thirds majority could, theoretically, be formed now in the General Assembly by nations that have only 10 per cent of the world’s population and contribute only 5 per cent of the United Nations’ budget. Such a group could force the larger countries to pay for an operation they opposed. The United States and Britain propose that peace-keeping decisions be referred to a strengthened Security Council, the General Assembly to have jurisdiction only if a veto prevents the Security Council from acting. Mr Khrushchev has appeared generally to favour this idea. Insistence by the United States and Britain that Russia first must meet its obligations is countered by Russian threats to walk out of the organisation. Diplomatic ingenuity will be taxed to solve a dispute which, if not settled before November, will make the next meeting of the General Assembly crucial to the existence of the United Nations.