ployees, the United Nations pays that money, that withholding, to the Argentine Government in the imaginary case I am using. That money is paid as a credit to their assessment from year to year. It is those adjustments from the previous year for their employees in the U.N. that are reflected in this column. It is a way of trying to make sure that the girls-and other employees, too-aren't discriminated for or against because of the country they happen to come from. Mr. ZABLOCKI. The United States is the only member nation of the United Nations that doesn't get credit for tax equalization fundsMr. CLEVELAND. The reason is that the United States prefers a different procedure, which is collecting from each of the individuals on the form 1040 the same amount of money. We are not prepared to, never have been prepared to have the U.N. collect taxes for us from the girls who work for the U.N. We would rather collect it from the girl ourselves. This was the original setup 15 years ago, and it has prevailed. Mr. ZABLOCKI. There is no direct relation, then, between the credits in this case and tax equalization? Mr. CLEVELAND. This is an offset. This is a way of making a payment to the countries. Mr. ZABLOCKI. Looking at it generally, these credits seem to correspond percentagewise with each country's assessment. Mr. CLEVELAND. The big countries tend to have more people. We have submitted a full statement which I understand will be a footnote to appendix 12 of these hearings. Chairman MORGAN. It will be in the hearings. Mr. ADAIR. Mr. Secretary, I am reading from the unclassified book relating to the Agency for International Development, and under the general heading of the "United Nations Fund for the Congo," the fiscal year 1961 contribution was roughly $2812 million. The fiscal year 1962 estimate was $33 million. The fiscal year 1963 request is $34.3 million. Does this $11-million-plus to which we have made reference earlier come out of these funds? Mr. CLEVELAND. No, sir. The figures you are reading are the annual figures for our contribution to the U.N. Economic Fund for the Congo, which is, in effect, an aid program from a number of countries for the Congo, to help them buy imports, and so on. Mr. ADAIR. Just specifically from what funds-we touched upon this earlier does this $11 million come? Mr. CLEVELAND. It comes from the AID appropriation. Mr. ADAIR. The $148 million or so that was authorized? Mr. CLEVELAND. Last year Chairman MORGAN. $153 million. Mr. CLEVELAND. It was specifically a line item in the appropriation bill, and in the authorization bill as well. Mr. ADAIR. I don't believe it was Mr. CLEVELAND. Not in the legislation Mr. ADAIR. I don't find it in the authorization specifically. Mr. CLEVELAND. It isn't in the bill specifically, but it was in the breakdown of the total figure. Mr. ADAIR. It is not, then, part of this economic money here? Mr. CLEVELAND. That is an economic fund. You will find, I thinkin the comparable book last year you would have also found a mili tary page, a Congo military page. This year you don't have that because there is to be the bond money. Mr. FASCELL. One other question. I would like to know why in all the tables you have two Congos. Mr. CLEVELAND. One of them is the ex-French Republic of the Congo, and they insist on calling themselves the Congo, and so does the ex-Belgian Congo. They have come to be known by their capitals, Brazzaville and Léopoldville. Both of them are extremely stubborn about hanging on to the name. Mr. Nix. Mr. Chiperfield raised a question earlier that had to do with Cuba's being given the benefit of certain funds paid by the United States. Do you recall that? Mr. CLEVELAND. Yes. Mr. Nix. Is that also true of payments by the Soviet Union? Mr. CLEVELAND. No. The Soviet Union was not, being a large country. Mr. Nix. I don't mean that. I mean were the funds paid by them treated in the same way as the funds paid by the United States? Mr. CLEVELAND. As far as the assessment was concerned, yes. We were both assessed at the regular percentage. Then in addition to that we made a voluntary contribution. They did not. Mr. ZABLOCKI. It was because of this voluntary U.S. contribution that Cuba's assessment could be reduced. There was no Soviet money contributed to offset that reduction. Mr. Nix. Had there been would there have been the same treatment of it? That is what I am trying to get. Is there any discrimination, any difference between the treatment of the funds paid by the United States and those paid by the Soviet Union? Mr. CLEVELAND. We made two different kinds of payments. They only made one kind of payment. They were only assessed an amount Mr. Nix. The fact that they only made one kind of payment is the reason why it was not treated in the same way as those by the United States? Mr. CLEVELAND. Right. And they haven't even made that payment. They have boycotted the whole kit and caboodle. Mr. ZABLOCKI. May I ask that the vote on Resolution 1732 (XVI) be also included in the record at the point at which I made an inquiry about who sponsored that proposal? Chairman MORGAN. Without objection, it is so ordered. The committee stands adjourned. (Whereupon, at 12:55 p.m., the committee adjourned.) OPERATIONS AND FINANCING OF THE UNITED NATIONS (Prepared by the Department of State) CONTENTS I. Summary and current status___ A. The President's request.. B. Key subsequent actions.. 2. Bond purchases by other nations_ II. The United Nations financing program. C. The Secretary General's program. 1. Advisory court opinion on arrearages- 3. Financing to June 30, 1962. III. Merits of the financing program. A. Financing plan advantages__ 2. Small annual repayments. 333 3. Basis for collections program_ 334 4. Assessments made part of regular budget_ 334 IV. Requested International Court of Justice opinion. A. The opinion requested... B. Relation to loss of vote under article 19. D. Relation to loans and repayments.. V. Financing the United Nations programs A. Regular budget__. 1. Magnitude and form. 2. Preparation and presentation_ 3. How the budget is voted.. 4. How cost sharing is determined. 5. Collection of contributions__ B. The United Nations peace and security operations in the 1. The cost of UNEF and ONUC operations_. 334 338 339 2. Budgeting and accounting for UÑEF and ONUC. 339 340 C. Voluntary programs.. 341 1. United Nations expanded technical assistance pro- 341 2. United Nations Children's Fund (UNICEF). 341 3. United Nations Relief and Works Agency for Palestine 342 4. United Nations Fund for the Congo... 342 VI. Description of United Nations peace and security operations which A. United Nations Emergency Force (UNEF). 2. Subsequent development and present status. 2. Subsequent development and present status. VII. Possibility of charter revision... LIST OF SUBAPPENDIXES TO "OPERATIONS AND FINANCING OF THE UNITED NATIONS" 1. The United Nations financial position and prospects (the United Nations bond issue resolution). 2. United Nations bond purchases by other nations as of July 16, 1962. 3. Opinion of the legal adviser of the Department of State on legal issues arising in respect of the issuance of bonds and the contracting of loans by the United Nations. 4. Analysis of the United Nations financial position 5. Analysis of the United Nations financial position 7. Data on pricing of supplies and services supplied 9. Summary of 1961 and prior-year arrearages owed the United Nations, showing arrearages owed Dec. 31, 1961; arrearages paid, Jan. 1 to May 31, 1962; and arrearages owed, May 31, 1962. 10. Summary as of May 31, 1962, of collections and arrearages for 1961 and prior years of United Nations accounts for the regular budget, Emergency Force and the Congo, showing amounts owed, by nations. 11. 1962 assessments for the United Nations regular budget, as of May 31, 1962. 12. 1962 assessments for the United Nations Emergency Force, as of May 31, 1962. 13. 1962 Assessments for the United Nations Congo account, as of May 31, 1962. 14. U.S. contributions to United Nations operations in the Congo through June 30, 1962. 15. U.S. contributions to United Nations Emergency Force through June 30, 1962. 16. Statement by the Acting Secretary General on financial position and prospects. 17. Statement by U.S. representative in Committee 5 on United Nations Emergency Force and Congo financing. 18. Resolution of the United Nations on scale of assessments for the financial years 1962, 1963, and 1964. 19. Resolution of the United Nations financing the United Nations Emergency Force for Jan. 1 to June 30, 1962. 20. Resolution of the United Nations financing the 21. Resolution of the United Nations financing the See footnotes at end of table. |