Evening star., 1948-06-04
The U. n. Headquarters Loan
The Cause for Peace and We Ourselves Will Suffer
If Congress Fails to Approve 1t Now
By Newbold Noyes, Jr


bers There would be an Office building for the
secretariat, providing working accommodations
for 4.2O0 people, and possibly another building
for the cnices OF delegations and specialized
U. N. agencies Already on the site is struc-
ture formerly occupied by part of New York
City's municipal government, which would be
converted to library with a capacity Of 325,000
books.
To provide such plant, we would make our
loan, without interest repayable by 1882 in in
stallrnents beginning July l, 1851 The buildings
themselves would be our security. U. N could
not sell them, change them or cucumber them
without our approval II U. N. dissolved or de-
cided 1t did not need the buildings they would
revert to us.
We would turn the money over to U. N, not
in one chunk, but gradually while the buildings
were going up, as construction bills came due
Thus u N. would not make money on the deal
by banking the funds. We, Of course, theoreti-
cally, would lose about 50 900 900 year at first
in interest not collected on the money-pro-
gressively less after that as loan was repaid
Actually, however, from a strict dollars and
cents point of view, the transaction is eminent-
ly worth our while.
1t Is estimated, in the first place, that U. N
delegates and the organizations stafi spent
about $20,000,0Oo in the United States during
the last year. That is not all we gain by having
them in this country. We save around $780,
600 year as result of not having to send our
delegation to a u N. headquarters abroad.
Sound Financial Investment.
Assuming, then, that this loan is a necessary
condition to the U. Ms locating here-and
it is just that-then instead of our sacrificing
100000 year in the transaction, the United
States as a community would make at least
$18,300,000 year on it, with the Government
collecting its share.
Such calculation omits the fact that all the
money would be spent in this country. It
omits, too, the increase OF New York real
estate values resulting from establishment Of
the headquarters there-another clear gain.
Already, property adjacent to the cite has
doubled in value.
Finally, 1t must be remembered that the
United States is 40 per cent of the U. N, when
it comes to finances. We reap 40 per cent of
the benefit accruing to U. N. through the gen.
erous conditions of this loan. And If the
money were borrowed elsewhere, on less gen.
erous terms. We would have to bear 40 per
cent Of that burden.
In fact, our Government is the only agency
to which U. N. can logically turn in seeking
this loan. The possibility of private loan
mas been investigated and found out OF the
question. There are legal barriers, since the
world organization is immune to suit. There
are financial barriers, in that for a private
loan each member nation would have to put
up collateral in dollars. which many of them
would not be willing to do. And If the loan
Is to be made by a member state, ours Is the
i. one to do it. Certainly no other member would
be willing to advance the money for the con-
struction Of headquarters in this country
U. N. is ready to start building as soon as we
make the money available. It's officials hope
to complete the work by 1885, 1t is true that
the full $65,000,000 cannot be lin the bag" for
U. N. until Congress has appropriated the
money as well as approved the loan. The
present BILL of course. is not an appropriation
and 1t is almost certain that an appropriation
cannot be made until the next Congress. But
this bill would authorize the Reconstruction
Finance Corp. to advance S25 100000 in
the meantime to get the work underway It
also would put Congress on record with its ap-
proval, morally committing us to following
through with the rest of the money next
autumn.
That is q commitment which, as the richest
nation on earth, We can well afford to make.
1t is also commitment which, as moral leader
In the quest for peace. We can Ill afford to