268. Telegram From the Department of State to Secretary of State Rusk in New York1

Tosec 70. Subject: Talk with Gromyko re UN Financing. Ref: Talking Paper—Gromyko, 18th GA-P/7, 7th Para, 9–16–63.2 Problem of UN financing likely lead to open confrontation with Soviets at first session of GA in 1964 when perforce Article 19 will be involved unless Sovs have made payment of back UN peacekeeping assessments totaling about $6 million and are fully up to date on regular budget assessments. If there is resumed or special session this confrontation could take place early in 1964. We therefore believe it important in view of impact that will have on US-Soviet relations to alert Gromyko to this prospect. Following are suggested talking points:

We hope USSR is giving most serious attention to settling its financial accounts with UN. USSR is aware of our position on application of Article 19. While this essentially matter between USSR and UN, unless issue satisfactorily resolved, it could affect prospect for long-range cooperation between us both inside and outside UN framework.

At this stage important thing is to remove the specter of such confrontation by having the Soviets settle all or most of their arrearages so that Article 19 is not brought into play. We do not want to advise Soviets on how to go about this. We do note that other countries that share USSR reservations have nevertheless paid assessments on some peacekeeping operations (e.g., France and Morocco on UNEF).

Dept assumes you will not want to discuss this issue in first go-around beyond such general exhortation and assertion of our seriousness in this matter. However, in event you find it useful to pursue matter further at future meetings, following additional talking points may prove useful in event they seem to be looking for way out.

Assuming UNOC phased out by mid-1964 could not Soviets consider paying some or all of their Congo arrears in 1964—if necessary [Page 593] “under protest”—based on fact or expectation that UNOC terminated but that they want to help UN clear up its financial problem. Or Soviets might offer to make voluntary contribution in settlement of assessed arrears. (We not sure whether UN could accept such substitution under regulations now in force, but if USSR even made probe of feasibility of such substitution this would show readiness consider settlement).

Soviets might consider paying UNEF arrears (about $14 million) as voluntary act without explicitly recognizing assessment as obligatory. (Though Soviets oppose assessments because UNEF not authorized by SC, they are aware that states concerned have accepted UNEF as useful peacekeeping operation.)

We also hope Soviets will tacitly drop their earlier insistence on withholding part of their assessment on regular budget which goes to servicing of bonds and paying for special missions (UNTSO, Field Service, etc). Organization’s operational capacity would be seriously impaired if members attempt to pick and choose among budgetary items they will support.

Ball
  1. Source: National Archives and Records Administration, RG 59, Central Files 1960–63, UN 10–4. Confidential. Drafted by Nathan A. Pelcovits (IO/UNP) on September 25; cleared by William B. Buffum, Virginia C. Westfall, Richard H. Davis, George S. Springsteen, Walter H. Lubkeman, and Ernest L. Kerley; and approved by Cleveland. Repeated to Moscow.
  2. Not printed.