HC Deb 29 November 1961 vol 650 cc430-3
21. Mr. A. Henderson

asked the Lord Privy Seal whether he will make a statement on the present financial situation of the United Nations organisation.

Mr. Heath

The latest estimates by the Secretariat indicate that at the end of 1961 the organisation will face a total deficit of expenditure over income of about 100 million dollars, of which some 30 million dollars will be an uncovered cash deficit. This may rise to 60 million dollars by the end of the first quarter, and to 90 million dollars by the end of the second quarter of 1962.

Mr. Henderson

Is not this a disastrous position? Does the Lord Privy Seal agree with Mr. Adlai Stevenson that the United Nations is now facing bankruptcy? Can he tell us which countries have failed to pay their contributions and what is likely to be done to remedy this serious financial position?

Mr. Heath

It is evident from the figures which I have given—which start with a 30 million dollars uncovered cash deficit, mounting to 90 million dollars by the second quarter of 1962—that the financial situation of the United Nations is extremely dangerous. There are eighty-seven countries which are in default of their payments and I will publish that list in the OFFICIAL REPORT if the right hon. and learned Gentleman would like it. There have been informal discussions between ourselves and other Powers about this matter, and I understand that it is to come up for discussion in the Assembly shortly.

Mr. Biggs-Davison

Would it not save the United Nations' and, what is more important, British taxpayers' money if the expensive and disastrous U.N. adventure and military presence in Katanga, which has undermined peace and order and caused terrible bloodshed, were brought to a speedy conclusion?

Mr. Heath

My hon. Friend's views about this matter are well known to the House. What is important is that the countries of the United Nations should pay their assessed amounts to its funds. [HON. MEMBERS: "What for?"]

Mr. Healey

While strongly agreeing with what the Lord Privy Seal has just said about the duty of the members of the United Nations to pay their contributions, would not the right hon. Gentleman agree that it is disgraceful that when the United Nations' finances are in this state the British delegate at the United Nations should have threatened to stop paying our part of the contribution toward the cost of the operation in the Congo if a majority of the Assembly passed a resolution contrary to our wishes?

Mr. Heath

The hon. Gentleman must distinguish between the assessed contribution and the voluntary contribution. Her Majesty's Government have paid a very substantial voluntary contribution as well.

Sir J. Vaughan-Morgan

Does not my right hon. Friend agree that it is about time that some of these countries, which are in almost semi-permanent default to the United Nations, were at least disfranchised so that they would be unable to vote at the United Nations?

Mr. Heath

Under the Charter, that is permissible after a period of two years in default.

Following is the text:

    cc432-3
  1. UNITED NATIONS COSTS: DEFAULTERS 244 words