Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

207. Telegram From the Department of State to the Mission at the United Nations⁰

November 4, 1960, 6:50 p.m.

838. Re USUN 1213–1265.¹ UN Capital Development Fund.

1. USDel should try dissuade Iraq or other Dels from submitting SUNFED Resolution.

2. In efforts dissuade or if such efforts unsuccessful Del should inform Iraq and other Dels the US feels obliged vote against a UN Capital Development Fund if put to vote.

3. USDel should take every opportunity explain U.S. position fully and carefully at same time not give impression that US attempting solidify opposition or soliciting support in opposition.

4. While numerous valid and reasonable arguments in support US position well known to USDel, it is suggested in explaining US opposition to SUNFED to caucus leaders and groups of Dels from aid donors as well as developing countries following points among others may be emphasized.

(a) US traditional support of and contributions to multilateral aid programs well known.

(b) It is not additional aid machinery that is required, but more support to existing multilateral aid agencies, e.g., Special Fund and ETAP which still below target level. (Emphasize poor record of Sovs and Soviet bloc countries.) Note also many countries have not yet joined IDA; and some newly independent countries have not yet taken steps to join.

(c) IDA will be UN specialized agency; will be source of soft loans; will finance social as well as economic development of type proposed for new fund. Moreover IDA articles provide for expanding capital when this should appear desirable in light of IDA experience. Therefore, a new UN Capital Fund redundant.

(d) If UN Capital Fund established there is little likelihood that it could command substantial resources, while contributions thereto might well be at expense needed support to already established UN aid programs.

5. USDel should make clear to other delegations that if this resolution adopted US will not participate drafting Charter and US does not intend contribute to such a Fund.

6. If as reported your 1265 possibility exists of watered down version of resolution which similar to resolutions adopted at previous GA’s and on which US has abstained, USDel should communicate text requesting review present instructions and possibly obtaining authority abstain again rather than vote against.²

Herter

0. Source: Department of State, Central Files, 800.0000/11–360. Confidential. Drafted on November 3 by Gold and John Plakias, Officer in Charge of Technical Assistance, Office of International Economic and Social Affairs; cleared with Department of the Treasury; and approved and initialed for the Secretary by Wallner.
1. Telegram 1213, November 1, transmitted the preliminary text of an Iraqi draft resolution on a U.N. Capital Development Fund. (Ibid., 800.0000/11–160) Telegram 1265, November 3, reported that several delegations would not support the draft resolution on the Fund in its present form, and that a modified text might be developed instead. (Ibid.)
2. Telegram 1331 from USUN, November 9, transmitted suggested revisions for the draft resolution. (Ibid., 800.0000/11–960) On November 25, the United States expressed its opposition to the resolution in a statement before Committee II of the U.N. General Assembly. For text, see American Foreign Policy: Current Documents, 1960, pp. 87–88. On December 15, The General Assembly adopted Resolution 1521 (XV), which decided in principle that a U.N. Capital Development Fund should be established. Text is ibid., pp. 90–91.