United Nations-Summary analysis of ONUC provisional recorded obligations as at Dec. 31, 1961

APPENDIX 5

Analysis of the United Nations financial position as at Mar. 31, 1962

(Prepared by the U.N. Office of the Controller)

The term "unpaid obligations" means the sum represented by the unliquidated obligations entered on the United Nations books of account plus the amounts that should be in various surplus accounts plus the amounts borrowed from the Working Capital Fund and other special or trust funds and accounts in the custody of the Secretary General. It excludes, however, the Organization's residual liabilities relating to the unpaid balance of the United Nations Headquarters loan or the balance of credits due members in respect of the transfer of the League of Nations assets.

The position as at March 31, 1962, is as follows:

A breakdown of the figure for unpaid obligations as between (a) the United Nations General and Working Capital Funds, (b) UNEF, and (c) ONUC, in millions of U.S. dollars, is as follows:

! Members received credit for surplus as at Dec. 31, 1960, and this account was also charged for estimated miscellaneous income for 1962, resulting in a temporary deficit in the account; this deficit will disappear toward yearend by means of receipt of actual miscellaneous income.

The breakdown of net cash resources and deficit in millions of U.S. dollars is as follows:

It should be borne in mind that the net cash resources of the U.N. ($17.6 million) include $5.8 million in cash received from the sale of U.N. bonds during the first quarter of 1962.

There follows a schedule analyzing the UNEF and ONUC accounts payable (i.e., unliquidated obligations) as at March 31, 1962.

APPENDIX 6

Department of Defense supplies and services furnished to the United Nations for peacekeeping operations as of March 31, 1962, for which DOD is to be reim

bursed

The Department of State has inquired of both the United Nations and the U.S. Department of Defense concerning estimates of Department of Defense obligations for U.N. operations in the Congo as of March 31, 1962. The overall conclusion is that the Department of Defense agrees that the estimates of the United Nations appear to be reasonable and accurate provisional estimates.

The following table gives the key figures concerning Department of Defense obligations and expenditures for U.N. peacekeeping operations.

The Department of State understands that the United Nations and the Department of Defense agree for the UNOC account that bills submitted, but unpaid as of March 31, 1962, were $20,529,782, and that the U.N. estimate of $10,962,570 as obligated but unbilled as of March 31, 1962, appears to be a reasonable and accurate provisional estimate. The total of these figures is $31,492,352, which is the amount shown as unliquidated obligations for UNOC in the U.N. financial statement as of March 31, 1962.

The Department of State understands that the amounts shown for UNEF in the table are also agreed figures.

Department of Defense supplies and services furnished for United Nations peacekeeping operations as of Mar. 31, 1962

1 Source: Department of Defense.

Source: United Nations (latest analysis of U.N. financial position is as of Mar. 31, 1962).
See the following:

The United States has billed the U.N. but not been paid as of Mar. 31, 1962, for UNEF...
Estimated amount due but unbilled was..

The United States has billed the U.N. but not been paid as of Mar. 31, 1962, for UNOC.
Estimated amount due but unbilled was..

$637, 579 48,000

685, 579

$20, 529, 782 10,962, 570

Total unliquidated obligations (provisional estimates). 31, 492,352 Department of Defense was repaid $10,317,622 from fiscal year 1961 MSA contingency funds. However, the amount has by mutual agreement been included in both U.S. and U.N. statements of "voluntary contributions." It is reflected as a part of the 49.94-percent U.S. contribution to the U.N. Congo budget for calendar year 1960.

Department of Defense incurred certain additional costs in the Congo apart from the above peacekeeping operations:

Airlift of foodstuffs for famine relief:

Reimbursed to the Department of Defense...
Billed to Department of State, but unpaid..-.--

Total, airlift of foodstuffs for famine relief..

Airlift evacuation of troops and civilians from the Congo:

Reimbursed to the Department of Defense.

Billed to Department of State, but unpaid...

$562, 023

159,930

721, 953

101, 144 439, 187

Total, airlift evacuation of troops and civilians...

540, 331

Grand total, other assistance rendered by the Department of Defense in the Congo. 1,262, 284

APPENDIX 7

DATA UN PRICING OF SUPPLIES AND SERVICES SUPPLIED TO UNITED NATIONS BY U.S. ARMED SERVICES

The following information has been provided to the Department of State by the Department of the Air Force, which is the executive agent of the Department of Defense for assistance furnished the United Nations operation in the Congo. Department of Defense materiel is sold to the United Nations at standard prices, the same as would apply in a sale to any authorized purchaser. The standard price includes the current purchase or production cost and the firstdestination transportation (from the point of procurement or production to the point of storage in the United States). No materiel excess to the needs of the U.S. military departments has been sold to the United Nations to date. If and when such sales take place, the appropriate provisions of the foreign aid legislation will apply.

Airlift charges to the United Nations are based on a return of direct costs at rates in published USAF directives. The rates are the same as those charged any U.S. Government agency. Factors establishing these costs include such elements as depot maintenance, base maintenance, aviation fuels and oils, and crew per diem but not crew salaries. Navy sealift charges are also based on a return of direct costs.

A single 16-percent surcharge to cover accessorial charges is added to the cost of all Defense materiel sold to the United Nations. The charge is an approximate average of costs incurred by the U.S. military departments to obtain and/or prepare the materiel for readiness or position to transfer to the United Nations. Reimbursement for temporary duty travel (TDY) of Defense personnel is based on authorized costs incurred under existing travel regulations. The bill ings for TDY do not include any crew TDY included as an element of cost in the airlift charges.

JANUARY 24, 1962.