Office of the Historian

501.AC/5–747

The Director of the Bureau of the Budget (Webb) to the Secretary of State

Washington, May 7, 1947.

My Dear Mr. Secretary: Reference is made to Mr. Byrnes’ letter of November 1, 1946,1 transmitting a draft of joint resolution which the Department proposed to submit to the Congress, concerning the accession of the United States to the Convention on Privileges and Immunities of the United Nations, and to subsequent correspondence with respect thereto.

As the result of conferences between representatives of the State Department and the Bureau of the Budget, it is understood that certain revisions of the joint resoultion have been agreed upon, as herein below indicated, and you are accordingly advised that there would be no objection to the submission of the Convention and the joint resolution to the Congress, subject to these revisions:

1)
The addition to the draft joint resolution of a provision as suggested by Justice and Treasury2 to cover the interpretation of the Convention and PL 291 so that neither will be construed to restrict the other, but that in case of conflict the Convention will apply.3
2)
Clarifications by State during committee hearings on the Convention as to the jurisdiction of the International Court of Justice to render advisory opinions in disputes and the relation of this jurisdiction to the present jurisdiction of the U.S. Customs and other courts.
3)
Assurances by State that it will seek to secure treament of other international organizations on an equal basis with the United Nations. It would be preferable that such treatment be made applicable through amendments to PL 291 or through a single convention applicable to all specialized international agencies rather than in a separate convention negotiated with each agency. It is understood that State has already suggested such an “omnibus” convention to United Nations authorities.
4)
The addition to the draft joint resolution of a clause reserving the position of the United States on Section 18(c) of the Convention dealing with immunity from national service obligations.

The Department will note the comments of the Secretary of the Treasury relating to Section 18(b) of the Convention which would provide income tax immunity to all employees of the United Nations. The foreign policy considerations which may lead the Department to recommend such tax immunity, even for U.S. nationals, are appreciated. It is suggested, however, that, if the Department recommends such immunity, it be prepared to assure the Congress4 that the U.S. delegation to the General Assembly will support a system for the contribution to the United Nations of tax equivalents by United Nations employees. Such a system would prevent the creation of a “tax-free” group of individuals, and would put United Nations employees in the position of contributing to the support of the Organization. The Department, moreover, may consider it desirable, in the event the Congress is not receptive to the recommendation of tax immunity, to suggest the inclusion in the joint resolution of a section which would amend the Internal Revenue Code so that U.S. nationals contributing to an internal system of tax equivalents in the United Nations could credit the payment of such contribution against their tax obligation to this Government.

Sincerely yours,

James E. Webb
  1. James F. Byrnes, Secretary of State from July 1945 to January 1947. His letter of transmittal of November 1, 1946, is not printed; accompanying enclosures, not attached to the covering letter, have not been found in the Department of State’s files. See Foreign Relations, 1946, vol. i, footnote 47, p. 98.↩
  2. During the period November 1946–May 1947 the Bureau of the Budget had carried on correspondence with the Department of Justice and the Treasury Department as indicated, not printed.↩
  3. Public Law 291, 79th Cong., 1st sess. (December 29, 1945), “An Act to extend certain privileges, exemptions and immunities to international organizations and to the officers and employees thereof …” (cited as the “International Organizations Immunities Act”), 59 Stat. 669. For documentation regarding the interest of the Department of State in the enactment of this legislation, see Foreign Relations, 1945, vol. i, pp. 1557 ff.↩
  4. The words “to assure the Congress” were underscored by a Department of State officer who also added a marginal notation: “in the hearings.”↩