139. Memorandum of a Conversation, Department of State, Washington, March 24, 19601
SUBJECT
- U.S. Contribution to UNRWA
PARTICIPANTS
- IO—Mr. Francis O. Wilcox, Assistant Secretary
- Dr. John H. Davis, Director of UNRWA
- NEA—Mr. Ludlow
- U/MSC—Mr. Bruskin
- OIA—Mr. Falk
- UNP—Mr. Palmer
After an exchange of pleasantries, Mr. Wilcox pointed out that the administration was having a difficult time on the Hill with regard to the U.S. contributions to UNRWA for FY’61. The House Appropriations Sub-Committee on Foreign Operations has requested the Department to urgently provide specific recommendations as to how the U.S. cash contribution could be reduced, and surplus farm commodities substituted for the reduced cash. Mr. Wilcox noted that the Administration was requesting $25 million unencumbered.
There followed a discussion about the possibilities of UNRWA’s using certain surplus commodities. Dr. Davis pointed out that corn could not be used by the refugees, that butter becomes rancid, and that pulses, which form a major part of the refugees’ diet, are not a surplus commodity in the U.S. Dr. Davis thought there might be a possibility that the Agency could use from the U.S. dry, edible beans, perhaps more flour than it is currently purchasing here and possibly some rice, which however is not in surplus now. Director Davis stated that in principal he would be willing to go as far as possible to meet the congressional request. However, he doubted that very much could actually be done. He would of course not wish to see any net loss to the Agency as a result of a change in the nature of the U.S. contribution.
Among the problems which Dr. Davis raised were the following:
- 1.
- Canada is keenly interested in increasing its present donation of $1.5 million worth of flour, and the Agency already is buying 50% of its flour in the U.S. at higher than world market prices.
- 2.
- Any arrangement whereby the Agency had to pay more for the food it needed than the world market rate or whereby the U.S. cash contributions were greatly reduced would result in the curtailment of other vital elements of UNRWA’s program.
- 3.
- For political and public relations reasons, it would be a risk for the Agency to reduce its purchases of rice from the UAR, should rice become surplus in the U.S.
Mr. Bruskin observed that what would be involved would be Title II surplus commodities, i.e., donations, and that perhaps a way could be found so that any change in the U.S. contribution would not be disadvantageous to the Agency.
Mr. Wilcox said that there is still much concern in Congress about the problem of rectification of the rolls, and that Senator Gore had recently questioned Under Secretary Dillon about this matter.2 There followed a discussion about the advisability of Dr. Davis making himself available informally to Senator Gore to explain what was being done about rectification. It was agreed that Senator Gore would be notified that Dr. Davis was in Washington and that should the Senator wish to see him, Dr. Davis would be willing. (At this point Mr. Wilcox was called out of the meeting.)
Dr. Davis said that the Agency could operate on a more economical basis with an all-cash U.S. contribution, following its present system of asking for bids on the items it needs. Mr. Falk said that it appeared very likely that the U.S. cash contribution will be cut, and Mr. Ludlow added that whatever amount is appropriated might have a percentage encumbrance proviso relating to resettlement. Mr. Davis repeated that he could only hope that the change would not result in a net loss to the Agency and that he wished to emphasize the Canadian problem with respect to wheat.
Dr. Davis then described how the Agency’s operations are being tightened up and how it has established improved relations with the host governments. He then went into some detail about his plans for the use of the approximately three million dollars he thinks the Agency will receive from World Refugee Year contributions. Already decisions have been made to establish a new vocational school in Damascus, from UK/WRY contribution funds and a new vocational school in Beirut, from German/WRY contributions. The prospects look good for the establishment of a vocational school for girls in Jordan. The Agency is proceeding with the construction of such projects only when funds sufficient for operations over a three year period are in hand. Dr. Davis expressed hope that before long enough funds might be available for the establishment of industrial schools in Aleppo and Gaza. He observed that in the Gaza Strip things have been improving [Page 305] for the refugees recently. Many of the UNRWA-trained refugees are getting jobs, and it is increasingly easy for refugees with vocational skills to leave Gaza.
Mr. Bruskin pointed out that it was necessary to formulate promptly some specific proposals on the possibilities of UNRWA’s using U.S. surplus foodstuffs. Mr. Ludlow suggested that Mr. Sherwood Moe of the UN Secretariat be asked to come to Washington for consultations on March 25 and 26. Mr. Palmer recommended that a detailed list of the information specifically requested by House Subcommittee be made up, so that Mr. Moe could gather all the data needed. Further, that assignments be made for the procurement and preparation of the data required, so that the Department could be fully responsive to the Sub-committee.
After the meeting Dr. Davis reached Miss Molly Flynn of the UN Secretariat by phone. He arranged for Mr. Moe to collect pertinent material and to come to Washington. Messrs. Bruskin and Palmer outlined some of the informational needs to Miss Flynn. Miss Flynn assured Mr. Palmer that following a request relayed to the Secretariat by USUN, the Agency Headquarters in Beirut had been asked to cable certain data by March 25.