Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-03-29
Senator'S Seek
i. n. Bonds
Compromise
BY ]. A. O'LEARY
Star Staff Writer

Senate on the United Nations
bond issue are reported to be
searching quietly for a COM
promise that would produce a
strong bipartisan vote in sup
port of the world organization.
Leaders denied that negotia-
tons are going on, but reports
persisted in other quarters that
administration spokesman were
taking part in informal con-
ferences looking for some mid
die ground.
It is believed the administra-
ton could stand pat and muster
a majority for the bill approved
by the Foreign Relations Com
mittee, authorizing purchase
by the United States of up to
half of the U. MS 5000 million
worth 2 per cent, 25-year bonds,
provided the other nations
match United States purchases
above the first $25 million.
But indications are that
friends of the U. N. are con-
cerned over the reaction that
might flow from a narrow vic
tory that could be construed as
a lack of confidence in the U. N.
They also would like to win
a decisive victory in the Senate
for the effect it would have in
winning support in the House,
where no action has yet been
taken on the U. MS financial
troubles.
Debate Postponed
Debate on the question has
been postponed until Monday,
and efforts at compromise
probably will continue over the
week end.
Until two days ago the OPP
position to the long-term bond
issue was centered in the sub
stitute of Republican Senators
Aiken of Vermont and Hicken-
looper of Iowa, who are propos-
ing instead that the United
States lend the U. N. 500 mil
lion for only three years at
whatever interest rate the
Treasury must pay for the
money.
They believe this would re-
quire the U. N. to make every
effort during the next three
years to put it's finances on a
sound basis and to require
other nations to pay up the
overdue assessments that
created the need for the bond
issue.
Now the situation has been
complicated by more far
reaching substitute offered
Tuesday by Senator Russell,
Democrat of Georgia. Senator
Russell would scrap both the
long-term bonds and the short
term loan and merely excuse
a $38 million debt the U. N.
owes the United States. He
would also require that this
$38 million be taken out of any
future assessment against the
United States for special OPP
erations such as the Congo.
A more serious part of the
Russell substitute would pro-
hibit use of any American arms
or military personnel in any
future U. N. operation until
such use had been authorized
by an act of Congress. If Con-
gress was not in session, the
Russell plan would enable the
President by executive order
to make not more than SIS
million worth of military
equipment available to a U. N.
operation.
Some Senators believe such
restrictions on the use Of mil
itary equipment and personnel
would encroach on the Presi-
dents powers as Commander
in-ohief. They doubt such re-
strictions could be made to
stick even if approved.
There was some speculation
at the Capitol yesterday that
the existence of two subStitu-
ties would have the effect of
dividing the opponents of a
bond issue and make the ad-
ministration's path easier.
Possible Compromise
But Senator Aiken called
such speculation "wishful
thinking" on the part of those
who favor the long-term bonds.
AS to the argument that it
would divide the opposition,
Senator Aiken said the Senate
already is split into three fac
tions, which he described as
those who think the U. N. can
do no wrong, those who think
it can do no right and those
who believe the U. N. is a good
idea but must be regulated"
He placed himself in the third
category.
One possible basis of COM
promise would be some COM
bination of a short-term loan
with the bond issue, or a Short
ening of the duration Of the
bond issue.
Senator Sparkman, Demo-
crat of Alabama, who is ex-
pected to be floor manager for
the committees bond issue bill,
said the Russell amendment
would deal a severe blow" to
the U.N., not only because the
$38 million would be inadequate
but also because lit would
amount to our backing out of
emergency financing arrange
ments we supported in the
U. N. and leave other nations
which have subscribed to the
bond purchases stranded"