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Volume #14 - 63.

CHAPTER III

UNITED NATIONS

PART 1

REPRESENTATION AT UNITED NATIONS IN NEW YORK, GENEVA AND PARIS

SECTION B

ASSESSMENT OF CONTRIBUTION TO UNITED NATIONS BUDGET

63.

DEA/11547-A-40

Under-Secretary of State for External Affairs
to Deputy Minister of Finance ,

Ottawa, August 30th, 1948

I am enclosing copies of confidential telegrams (No. 904 of August 20 and No. 910 of August 21†) from the Canadian Permanent Delegate to the United Nations regarding the Canadian contribution to the United Nations Budget.

You will note that according to one proposal Canada's assessment may be raised to 3.5%, an increase of .3% which would amount to approximately $100,000. on the proposed United Nations Budget of $33,419,587. for 1949. This increased ratio of payment would result in a per capita Canadian comribution slightly less than that of the United States but would fall considerably short of a revised assessment based on Canada's ability to pay, an assessment based presumably on national income.

This proposed increase, which may be recommended by the Contributions Committee, should be considered together with an amendment which will be put forward by the United States (Agenda Item 47) to provide for the recognition of the principle of a percentage ceiling in the scale of United Nations assessments. As you are aware the United States accepted only with reservations its present ratio of 39.89% in recognition of temporary post-war dislocation. At the forthcoming session of the General Assembly the United Slates will attempt to secure:

(a) Acceptance at this time of the ceiling principle.

(b) A token reduction of the United Stales share.

(c) Agreement to fix the ceiling for the United States contribution at 33.33% for normal times.

(Note: Reduction of the United States contribution to 33.33% would increase Canadian contribution to 3.55%.)

It seems apparent that proposals may he made to increase the Canadian contribution. In this Department, we consider that the Delegation should resist firmly any effort of this nature, particularly if the contributions of certain great powers which enjoy a privileged position in the organization remain low. We should be grateful for your observations on this subject for use in preparing instructions for the Delegation.

Yours sincerely,
L.B. PEARSON



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