15 August 1962.
Sirs,
I have the honour to refer to the discussions that took place on 13 and 14 August
1962 at the United Nations Headquarters between representatives of the Government
of Indonesia, the Government of the Netherlands and the Secretariat concerning certain
financial arrangements which are envisaged in connexion with the United Nations Administration
of West New Guinea (West Irian).
In response to the request of the representatives of the two Governments these arrangements
are set forth below.
The Secretary-General will prepare, in consultation with the two Governments, a budget
covering the total anticipated costs involved in its administration of the Territory,
and will request the two Governments to make advances of funds in such currencies
and at such time(s) as may be required to cover the anticipated costs.
The funds made available by the Governments to the Organization will be treated as
“trust funds” in accordance with United Nations Financial Regulations 6.6 and 6.7
and will be administered in accordance with the established United Nations financial
regulations and rules relating to trust funds, reserve and special accounts, and,
in particular, United Nations Financial Regulations 10.1 (d), 10.2 and 11.3 relating
to the arrangements in respect of (a) the maintenance of an internal financial control
to provide for an effective current examination and/ or review of financial transactions
in order, to ensure the regularity of the receipt, custody and disposal of the funds,
the conformity of obligations and expenditures with the purposes and rules relating
to the trust funds, and the economic use of these resources; (b) providing that no
obligations shall be incurred until allotments or other appropriate authorizations
have been made in writing under the authority of the Secretary-General and (c) maintaining
a separate special account for all funds received in trust from the Governments.
As soon as possible after the termination of the United Nations responsibility for
administration of the Territory an audited statement of the income and expenditures
arising from and in connexion with its administration of the Territory will be rendered
to the two Governments, and any balance of funds in the trust fund that are not required
to cover commitments entered into by the Organization in this connexion will be refunded
in equal shares to the two Governments.
If, after preparation of the initial budget, unforeseen developments should occur
giving rise to the need for additional funds from the two Governments, the Secretary-General
would prepare a supplemental budget in consultation with the two Governments, and
request such additional deposits in the trust fund as would be required.
It may be anticipated that the budget estimates would consist of two major parts,
the first relating to what may be described as the normal territorial operations and
accounts, and the second relating to expenses to be incurred by the United Nations
for staff and other costs (salaries, United Nations pension contributions, insurance,
travel expenses, communications costs, etc.) Which may not be dealt with appropriately
as part of the normal territorial operations, The second part of the budget would
also include the costs of any security personnel that might be required and for which
no provision has been made in the existing butget for the Territory.
It is my understanding that the representatives of the two Governments participating
in the discussions expressed agreement with the arrangements set forth above, but
I would be pleased to have you advise me of your Government's concurrence regarding
them.
Accept, Sirs, the assurances of my highest consideration.
(sd.) U THANT,
Acting Secretary-General.
His Excellency
Dr. J. H. van Roijen
Ambassador Extraordinary and Plenipotentiary
of the Netherlands to the United States
of America
His Excellency
Mr. C. W. A. Schurmann
Permanent Representative of the Netherlands
to the United Nations
711 Third Avenue
New York 17, N.Y.