At this morning's session of Committee Two the committee adopted, with 28 votes for, 20 against and 10 abstaining, a joint resolution submitted by the delega­tions of Burma, Chile, Cuba, Egypt and Yugoslavia. The operative part of this reso­lution is as follows:

"REQUESTS the Economic and Social Council to submit to the General Assem­bly at its seventh regular session a detailed plan for establishing, as soon as circum­stances permit, a special fund for grants-in-aid and for low-interest long-term loans to under-developed countries for the purpose of helping them, at their request, to accelerate their economic development and to finance non-self-liquidating projects which are basic for their economic development;

FURTHER requests the Economic and Social Council, in implementing para­graph 11, to prepare for consideration by the General Assembly at its seventh regu­lar session a series of recommendations concerning:

(a) The size, composition and administration of the fund and, with respect to administration, keeping in mind that the creation of a new international organiza­tion should be considered only if a careful examination of the functions of existing organizations proves that the required functions cannot be carried out by them;

(b) The manner in which the contributions to the fund will be collected, keeping in mind the desirability of universal participation and the utilization of any savings that may accrue from any programme of disarmament, as one of the sources of contributions;

(c) The character of the contributions of states members of the United Nations and of those which are not members;

(d) The policies, conditions and methods to be followed in the making of grants and loans from the special fund to under-developed countries;

(e) The principles which countries receiving grants and loans from the special fund should observe;

13. REQUESTS the Secretary-General to assist the council in carrying out the responsibilities placed upon it by this resolution;

14. INVITES governments to make suggestions to the Economic and Social Council with respect to the recommendations mentioned in paragraph 12, above."

2. This resolution calls for the Economic and Social Council to prepare for the next session of the General Assembly recommendations concerning the establish­ment of an international developmental authority. You are already in possession of a statement made before Committee Two by Mr. Bourget on November 27th. In this general debate, and in subsequent interventions, we made it clear that Canada did not favour the establishment of such an organization at this time and that our commitments were such that we would not be in a position to contribute funds. Together with the United States and some of the Western European delegations we tried to induce the under-developed areas to accept an alternative resolution from Brazil and Greece calling for approval of the action taken at the last session of ECOSOC and instructing the Secretary-General to carry out certain additional stud­ies concerning the financing of economic development. This resolution was also passed, but the adoption of the joint resolution referred to above renders it largely ineffective.

3. The states supporting the joint resolution came largely from the Latin Ameri­can, Arab and Far Eastern blocs. Those opposing, in addition to ourselves and the United States, were the Western European states, the other Commonwealth coun­tries (with the exception of India and Pakistan) and Brazil, Turkey, Israel, Greece, Liberia and Iceland. The Soviet bloc and certain of the Central American Republics abstained.

4. There has been a long and active discussion of this question in Committee Two at this assembly. Prior to the vote this morning Congressman Mansfield, the United States delegate, in one of the frankest speeches ever made in Committee Two, made it absolutely clear that his country was not prepared to make any contribution to any such project at this time and he appealed to other states not to risk the United Nations integrity by adopting an unrealistic and illusory resolution. Nevertheless Dr. Santa Cruz of Chile, who is the driving force behind this project, was able to rally a substantial majority for the resolution.

5. This resolution appears to us to be significant for two reasons. Firstly, it opens the door for the establishment of an international developmental authority to which we are opposed in principle at this time. Although the sponsors said they appreci­ated the fact that no funds would be forthcoming for the present, we are convinced that it will not be long before they press for contributions from the industrialized nations. In the second place, the resolution was adopted without the support of any of the major powers and with all of the North Atlantic community and other responsible powers in opposition. At previous meetings of ECOSOC and at previ­ous assemblies the under-developed areas had responded to an appeal from the industrialized nations to exercise restraint and realism in considering this question.

6. The congressional members of the United States delegation are very much upset at this turn of events. They feel it will further antagonize public opinion in the United States and seriously reduce the prospects of the under-developed coun­tries receiving aid in the future from Congress. It will also debase the currency of United Nations resolutions.

7. This resolution is subject to approval by plenary. With the above considera­tions in mind the United States, in plenary, will try to invoke article 18, subparagraph 2, of the charter so as to have this resolution require a two-thirds majority at the plenary stage. In addition, the United States will seek to influence certain dele­gations to withdraw their support by making representations here and in the various capitals. In this latter connection the United States delegation have suggested the possibility that Canada might reinforce their representations. We would appreciate your comments on both aspects of this strategy.

¹⁸ Voir le document 247./See Document 247.