The amounts reported include the annual contributions, and, where applicable, advances to the organizations' working capital funds. Credits due the United States are deducted. This table does not include:

-Loans (or repayment thereof) such as the loan to the United Nation for the construction of its headquarters, the purchase of U.N. bonds, or loans under the Indus Basin and Tarbela Development Funds.

-Commodities unless a contribution was pledged in kind.

-Contracts and/or research grants by U.S. Government agencies for services or research performed by an international organization.

b This amount includes $518,503 owed towards a Tax Equalization Adjustment and a reduction of $3,052,207, the amount not required due to U.S. withdrawal of membership, November 6, 1977.

• Total amount appropriated in Fiscal Year 1977 of which $3,545,453 was contributed for balance of unpaid contribution for C. Y. 1974; $38,944,999 for balance of C.Y. 1975-76 unpaid contribution; $2,200,000 for 1977 Working Capital Fund advance; $400,000 for 1977 Tax Equalization Adjustment; and $1,775,000 for U.S. assessment share for 1975-76 UNESCO supplemental budget (minus a credit of $204,960 from Prior Year Surpluses).

Includes $38,764 for English Translation Service and a Tax Equalization Adjustment of $16,565.

Amount actually paid. The U.S. assessment was $39,631,908. The amount of $697,115, which represents the difference between calculating the U.S. assessment at 25% and 25.43%, was not appropriated because of the legislative "ceiling" of 25% on U.S. contributions to the United Nations and affiliated agencies.

'Percentage share of cost estimates. U.S. percentage of pledges made as of December 1977 amounted to 46.97%.

Due to change in budget year, only this second half amount actually paid from F.Y. 1977 appropriation. First half ($30,849) paid from T.Q. funds.

h Includes $9,963 for the English Translation Center.

The United States contributed $500,000 for Chile refugees; $3,400,000 for resettlement of Angolan returnees to Portugal; and $3,544,979 for resettlement of Indochinese refugees.

¡ Contribution includes cash, commodities, and services.

Percentage relates to cash component only.

United Nations

Section 503 of the Foreign Relations Authorization Act, Fiscal Year 1978 (Public Law 95-105, August 15, 1977, 91 Stat. 844, 858), required the United States to make a major effort toward reform and restructuring of the United Nations system; it also set out certain specific proposals to be included in the program, which the United States was to develop for presentation to the United Nations Special Committee on the Charter of the United Nations and on the Strengthening of the Role of the Organization. Section 503 required the President to report upon his recommendations for reform of the United Nations to the Speaker of the House of Representatives and to the Chairman of the Senate Committee on Foreign Relations. Two proposals addressed the question of United Nations finances: one suggested supplementing them through contributions from commerce, services and resources which the United Nations regulated; the other would have adjusted assessment scale contributions to "reflect more accurately" actual ability of member nations to contribute.

President Carter's report pointed out that further study was required of proposals to supplement United Nations finances from outside sources, all of which were surrounded by debate, but affirmed that, provided autonomous revenues were subject to the same scrutiny and controls as current member state appropriations, the United States was prepared to join in further exploration of the various proposals upon this subject. In regard to the proposed adjustment of assessments to reflect ability to pay, the President noted that "a principal result would be to increase" the United States assessment "significantly above" the current ceiling of twenty-five percent. He added:

Because the United States is largely responsible for a major deviation from the capacity-to-pay principle, we believe it would be unwise to seek immediate adherence to that principle without congressional authorization for the higher appropriations that would be required.

The President's report addressed as well the problem of eliminating the existing United Nations deficit, which as of September 1977 had been more than $120 million:

MEETING THE U.N. DEFICIT

The United Nations faces serious financial difficulties largely as a result of the continuing refusal of certain member states to pay assessments for peacekeeping operations and because of the practice of making some payments in nonconvertible currencies. As of September 30, the resulting deficit was more than $120 million. For years some states, including some responsible for the deficit, have suggested they would participate in a balanced program of voluntary payments of sufficient magnitude to eliminate the existing deficit. We believe this approach should be explored anew.

Dept. of State, Reform and Restructuring of the U.N. System, Selected Docs. No. 8 (1978), p. 7; Sen. Comm. Print, Proposals for United Nations Reform, 95th Cong., 2d sess. (1978), p. 5.

The accompanying report of the Secretary of State discussed these questions more extensively. Excerpts follow:

FINANCING THE UNITED NATIONS

Adjusting Assessments To Reflect Ability To Pay

The U.N. assessment scale is determined by the General Assembly under Article 17, paragraph 2 of the Charter. It provides that "the expenses of the Organization shall be borne by the members as apportioned by the General Assembly." Certain specialized agencies (ILO, FAO. UNESCO, and WHO) derive their scales of assessments directly from that of the United Nations; other agencies (ICAO. IMCO, and IAEA) use the U.N. scale as a point of departure for the computation of their scales of assessments.

From the outset of the United Nations, the expenses of the organization have been apportioned broadly according to the capacity