LETTER TO MR. ELMER R. STAATS FROM CHESTER BOWLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000800020017-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: May 2, 2003
• Sequence Number: 17
• Publication Date: May 20, 1961
• Content Type: LETTER

Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
C 0 P Y ER: 61-4290
20 May 1961
In accordance with our conversation of April 20, I am
enclosing a memorandum outlining the current status of the UN
financial problem. A paper entitled "United Nations Funding
of Emergencies," which deals with the long-range problem, is
being cleared within the Department and will be made available
to your staff soon.
With my warmest regards,
Since rely,
Memorandum outlining status
of UN financial problem.
Mr. Elmer B. Staats,
Deputy Director,
Bureau of the Budget.
Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
 Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
UNITED NATIONS CASH PROBLEM
Status as of May 1, 1961
(In Millions)
following is a summary of the latest estimates of the United
Nations cash situation for calendar year 1961:
Income
Disbursements
Shortage
Loans From
Special Fund
Balance
Required
January 1, 1961
5.
1st quarter
241.2
43.7
2.5
2.5
-
2nd quarter
19.7
50.1
30.4
23.5
6.9
3rd quarter
43.5
52.0
8.5
-
!5.5
4th quarter
6.3
47.1
20.8
-
40.8
110.7
192.9
82.2
31.
56.2
Above figures:
1. Exclude collections in 1961 of ONUC assessments for 1961.
2. Assume 1961 ONUC disboursements of $79 million, with $41
million unliquidated obligations at December 31, 1961.
3. Assume December 31, 1961 unliquidated obligations for
UNEF $17.3 million, regular budget $3 million.
The above estimates of income and disbursements for calendar year
1961, excluding collections for ONUC 1961, indicate a deficit of
$56.2 million as of December 31, 1961, plus borrowings of $31 million
and unliquidated obligations of approximately $61.3 million. Much of
the unliquidated obligations will be amounts owed to governments for
the reimbursement of extra and extraordinary costs in connection with troops
furnished to UNEF and ONUC.
Assuming collections of $47.5 million from the United States for
ONUC 1961, and Canadian and UK payment of their ONUC 1961 assessments
during 1961, it appears that the United Nations will be able to manage
as far as current cash is concerned at least through December 31, 1961.
Additional sources of funds will be required thereafter, however.
Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
 Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
General Assembly Action on Congo 1961 Costs
The Secretary General estimated the calendar year 1961 costs of
ONUC at $135 million; the Ad3isory Committee on Administrative and Budgetary
Questions cut this estimate to $120 million. The General Assembly at its
resumed session appropriated $100 million to cover the cost of the operation
for 10 months, January 1-October 31, 1961.
The Assembly assessed the total against the membership on the basis
of the regular United Nations assessment scale, with a reduction in
assessments for those countries least able to pay. The reduction was made
possible by a United States voluntary contribution of $15.3 million.
It is proposed to handle the United States contribution toward 1961
Congo costs as follows:
1. The assessment of $32.2 million will be submitted as a supplemental
appropriation request, under "Contributions to International Organizations"
in the State Department budget, for appropriation this spring.
2. Five million dollars of the voluntary contributions will be paid
from Mutual Security fiscal year 1961 contingency funds.
3. The balance of $10.3 million of the voluntary contribution will
be included in Mutual Security fiscal year 1962. Part or all of this
will probably be a waiver of airlift and related costs.
Other Actions
1. Our contributions to ONUC 1960 costs, both assessed and voluntary,
have been paid.
2. Defense has been reimbursed the $10.3 million initial airlift costs.
3. On April 28 we forwarded $10 million as an advance contribution
to UNICEF, which the Secretary General can borrow.
4. We can pay an additional $10 million to UNTA and the Special Fund
as an advance contribution on our 1961 pledge which could be borrowed by
the Secretary General, if and when it is needed.
Future Steps
1. The General Assembly established a committee to study the problem
of methods of financing peace and security operations, which is to report
to the 16th General Assembly this fall.
2. It now appears that the United Nations can survive cash-wise
through the end of 1961 without governmental advances. Some steps toward
providing governmental advances or loans will have to be taken early in
1962, however.
Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
 Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6
3. The Department is now working on a plan which would provide for
cash advances to meet the problem of financing peace and security
operations, with repayment spread over a period of years.
Approved For Release 2003/05/23 : CIA-RDP80BO1676R000800020017-6