We are trying to say that it is not an either/or concept or proposition, that the bonds must be bought by the U.S. Treasury, or by the nongovernmental institutions. It can be done by both. That is our position on this particular phase of the question.

I return to my statement, Mr. Chairman.

Part of this resolution, which in full is appended to my statement, supports the position that "the opportunity be given to the American public to subscribe to such bonds."

We have supported the U.N. bond issue for we consider adequate funds for the United Nations absolutely necessary to the success of its program of peace among the nations of the world. We have supported the U.N. bond issue because this means of providing money for the U.N. operation is a reasonable proposal.

We have also supported the legislation to make it possible for the individual American citizen to purchase peace bonds. Such action is evidence of further support for the U.N., is similarly a reasonable and practical financial proposal, and gives the U.N. a broad base foundation and support not only from member states but from many individual persons who treasure this means to peace.

This bond issue has become necessary because of the failure of some member nations to pay their share of the United Nations' peace-andsecurity operations. Since the bonds are to be repaid through the regular assessed budget of the United Nations, the repayments are thus a binding obligation on all members under the charter, and subject these countries to the 2-year arrearage rule. What they have failed to pay as a contribution, they will pay as an obligation under the U.N. bond issue legislation.

The American Veterans Committee believes that a weakening of the United Nations would serve the interest of the Communist bloc of nations. The Communist bloc does not want the United Nations to oppose its aggressive intentions in Korea. They want the U.N. to bring stability neither to the Middle East nor to the Congo.

The Soviet bloc attempted to cripple the Secretariat by imposition of a "troika" head. It attempted to limit U.N. activities by refusing to pay its share of special assessments for peace-and-security operations in the Congo and the Middle East.

The Communist bloc recognized, by its opposition, the value to the Western allies of the United Nations. Eleven of the thirteen votes cast in the U.N. General Assembly against the bond issue were cast by Communist bloc nations.

We believe that it is in the national interest of the United States to support the United Nations. It is not alone because the United Nations is a roadblock to Communist takeover that we urge support for this bond issue. AVC urges your support because of the positive and constructive role the U.N. has played in our chaotic world and because the United States must continue to show unflagging support for the U.N.

There have been frustrating moments for the United States. There will be more. There have been frustrating moments for the United Nations. There will be more. On balance, the United Nations has been, and will continue to be a positive force for progress, peace, and stability.

86138-62-19

The American Veterans Committee respectfully urges the members of the U.S. House Foreign Affairs Committee to give their wholehearted support to the proposed purchase by the United States of $100 million worth of the $200 million United Nations bond issue.

PURPOSE AND USE FOR THE BOND MONEY

The problem of adequate financing for the U.N. has arisen out of the peace-and-security projects. We are especially interested in the bond issue money being used to pay for these costly but necessary projects.

We are vitally interested in the continuation and expansion of U.N. health, education, science, food, culture program. And, of course, the organization must be guaranteed the money to run from Monday through Friday.

THE NONPROFIT ORGANIZATION PROPOSAL

AVC does not believe that we must make a choice between the U.S. peace bond proposal and the possibility of sale of bonds by a nonprofit organization which may be authorized to purchase bonds from the U.N. Both are possible and must become, we have resolved in convention, a reality.

The United States can purchase bonds and sell them to citizens who want to buy them. Other persons can organize the nonprofit organization to sell U.N. bonds. The United States need not wait for the nonprofit organization; the latter need not sit back for the Government to act.

In summary, for the American Veterans Committee (AVC) I urge the House Foreign Affairs Committee to approve and recommend legislation to authorize the $100 million bond purchase.

This represents a statement of position, a spirit of support of the U.N., of the U.N. bond issue, of the belief and the necessity of it, but at the same time the practicality of it. And where the AVC may not bring the expert views on the whole international situation that the State Department can or even the staff, of course, of the House Foreign Affairs Committee, we bring a view and spirit and a feeling in support of the U.N. and of the U.N. bond issue proposal.

That completes my statement, sir.

(The AVC resolution referred to is as follows:)

AMERICAN VETERANS COMMITTEE RESOLUTION ON "THE PURCHASE OF UNITED NATIONS BONDS BY PRIVATE INDIVIDUALS AND NON-GOVERNMENTAL INSTITUTIONS AND ORGANIZATIONS"

(Adopted at the 14th annual convention in Atlantic City, June 1962)

The resolution by which the United Nations General Assembly authorized the creation and sale of United Nations bonds-Resolution 1739 (XVI) adopted December 20, 1961, authorizes the Secretary General to issue United Nations bonds in accordance with the terms and conditions set forth in the annex to that resolution.

Paragraph 7 of the annex to Resolution 1739 (XVI) reads as follows: "The bonds shall be offered to states members of the United Nations and members of the specialized agencies and of the International Atomic Energy Agency, as well as to the official institutions of such members and, if the Secretary General, with the concurrence of the Advisory Committee on Administrative and Budgetary Questions shall so determine, to nonprofit institutions or associations."

While at least one of the proposals relating to purchase of United Nations bonds presently before the Congress includes a provision that the opportunity be given to the American public to subscribe to such bonds, there is no certainty that such a provision will survive the legislative process. If such a provision is incorporated in the final legislation, the American Veterans Committee welcomes the provision, and urges the American public to subscribe, on whatever terms may be contained in the legislation.

The American Veterans Committee calls attention to the circumstance that, despite the activities of many groups whose aims include support of and strengthening of the United Nations, there has been as yet no concerted move to open the possibility of participating directly in the important activity of financing the United Nations to interested American private individuals, and nongovernmental institutions and organizations.

The American Veterans Committee therefore calls for the necessary planning and negotiation with the office of the Secretary General of the United Nations so that, if there is no provision for public subscription in the legislation, a nonprofit association which will meet the criteria set forth in paragraph 7 of the annex to Resolution 1739 (XVI) may be promptly established, and so that interested individuals, institutions and organizations may be able to subscribe to the United Nations bonds.

The American Veterans Committee urges that the Federal Government take whatever action may be appropriate so that United Nations bonds in the hands of private individuals or corporations receive the same freedom from Federal income tax now granted to certain municipal securities, so that the 2 percent interest payable on the United Nations bonds may be tax free.

The American Veterans Committee announces its willingness to participate actively and to cooperate with other interested groups in the establishment of such a nonprofit association.

Chairman MORGAN. Thank you, Dr. Cooke.

Dr. Cooke, when was action taken by the American Veterans Committee in adopting the resolution?

Dr. COOKE. June 3, 1962, sir.

Chairman MORGAN. Is that in your annual convention?

Dr. COOKE. Yes, sir, the 14th annual convention. The international affairs platform came before the convention on the third day of our convention, June 3.

Chairman MORGAN. Was there any objection to the adoption of this resolution in your convention?

Dr. COOKE. No; this has wholehearted support. The U.N. has had fairly consistent support these 14 years. We have had some real battles on international affairs I assure you, but not on this resolution. Chairman MORGAN. Dr. Cooke, what is the membership of the American Veterans

Dr. COOKE. We have about 12,000.

Chairman MORGAN. Do the members of the other major veterans organizations like the Legion, Veterans of Foreign Wars, the AMVETS, belong to your organization?

Dr. COOKE. No; the AMVETS came out of World War II essentially. But they are a separate organization. We work together in what is known as WVF, the World Veterans Federation. We are, with the AMVETS, two of the 78 organizations that make up the WVF.

All these are separate: The Legion, Veterans of Foreign Wars, Purple Heart, Blinded Veterans, and the one you just mentioned, the American Veterans of World War II.

We are AVC-American Veterans Committee. We pride ourselves on the membership of the Secretary of Labor, Arthur Goldberg; the Secretary of Agriculture, Mr. Freeman.

We have had any number of Members of the Senate, Senator Javits, Senator Douglas; Members of the House, Congressman Fitts Ryan, Congressman Barratt O'Hara, all who have been members of the AVC. I know the Congressman, Representative Barratt O'Hara, will speak for himself as to the AVC.

Our group is a non-Communist group of veterans. We are a smaller group than the others I have mentioned. We have consistently supported U.S. policy, United Nations. And this represents one of our positions.

Chairman MORGAN. Thank you, Dr. Cooke.

Mr. JOHNSON. Did you say how many members there are in your organization?

Dr. CookE. Yes; 12,000.

Chairman MORGAN. Dr. Judd?

Mr. JUDD. I have one major revision to suggest in Dr. Cooke's testimony. He said that the AVC consisted of veterans of World War I and World War II and the Korean war. He should have included also the Spanish-American War, to cover our colleague from Illinois. Dr. CookE. We welcome any members. I don't believe we have any Spanish-American War veterans, Dr. Judd. We do have World War I veterans.

I think personally, Mr. Judd, that your commencement address at our college a few years ago was greatly appreciated. We would appreciate your coming again one day.

Mr. JUDD. Thank you very much.

The question I want to ask is, Do you have an opinion on whether the U.N. itself ought to make bonds available for private purchase by citizens of the United States and other countries?

Dr. COOKE. Not directly. That is a position we took. I believe that is the right position.

Mr. JUDD. Will you explain why?

Dr. CookE. I don't believe the United Nations can work directly with individual citizens in 104 nations or member states around the world; that it would have to work through an organization in those member states and those organizations in the member states that would be nongovernmental and nonprofit, which would then in turn sell directly to citizens in the country.

But I can't conceive of the United Nations attempting to work individually with selling bond purchases to individual citizens in 100some member nations. It seems to me just the enormous bookkeeping of it would make it almost an impracticality and burden on the sale. Whereas, if we had a nonprofit organization in our own country, Mr. Judd, and the United Nations were to sell the bonds to that organization, and that organization in turn would sell to me, sell to you, that organization would be responsible for the individual sales, the bookkeeping, and the United Nations would be dealing then with 100-odd member states and maybe a hundred-odd nonprofit organizations.

Mr. JUDD. I see that it would be simpler that way. On the other hand, there is a possibility that the U.N. would be a great deal stronger if more of its financial support came from direct contributions or purchases of bonds by persons rather than through governments.

It was set up as an association of free governments, as the United States was set up as a confederation of free States, but the United

States now depends largely on direct support by individual citizens and businesses, and not by the States. Whether that change is good or bad, some people disagree; but it is a fact.

Perhaps the U.N. might have greater influence and greater independence if it had a considerable body of its financial support from people who favor it and who may not even be in complete agreement with their own government on given issues.

I don't think what you suggest should be opposed. I think it is a proper method. But I don't know that it ought to exclude

Dr. COOKE. The direct purchase.

Mr. JUDD. Yes; making such purchase available. I don't see what harm it would do. It might result in a real outpouring of popular support for the U.N. that would astonish many people and greatly strengthen its efforts in the most important fields.

Thank you very much.

Dr. COOKE. May I add, our national executive committee meets Thursday, August 9. I would like to carry that view to them, Mr. Judd, and have them consider whether it is just as feasible to sell directly to the citizens by the U.N. as to sell through the nonprofit organizations.

Our main point this morning though was not to have anyone reach the conclusion that either the U.S. Treasury must do the sale in the United States or the nonprofit organization, whereas actually you are bringing a third choice. We have three ways of doing it.

Chairman MORGAN. Mr. O'Hara.

Mr. O'HARA. Thank you, Mr. Chairman.

Dr. Cooke, your statement is one I would expect in its content from a national officer of the AVC, and also in its presentment, in its diction, one I would expect from a professor of English.

Dr. COOKE. Thank you, sir.

Mr. O'HARA. Dr. Cooke, I agree with Dr. Judd. It would be a fine thing if the American people were accorded an opportunity of proving their faith in the U.N. by buying bonds as their own personal investments for peace. Yesterday when the subject was brought up, three or four members of this committee said they would buy bonds. So we could write our constituents that we were putting our own money back of our preaching.

But we don't want the suggestion to lead to confusion. A bond issue open to public subscription is supplemental to the issue contemplated in the pending bill. It is not an alternative. If the present bill should be defeated, what repercussion would you expect?

Dr. COOKE. I think they would be serious, Mr. O'Hara. They would redound against the United States seriously. I think though, if it came to a choice between the U.S. Treasury purchasing $100 million worth of bonds and selling it to the citizens, and the nonprofit organizations, I believe the AVC would support the purchase by the U.S. Treasury and the resale through the peace bond proposal to the citizens.

If it comes to absolutely an either-or, and I don't think it is an either-or, and I don't think it is an alternative, and I don't think Congressmen should use this alternative method to defeat it, but I just express a hope they don't.