Dr. GERLACH. Yes. Mr. WHALLEY. We use them directly or indirectly? Dr. GERLACH. Yes, sir. Mr. SELDEN. Are there any further questions? Mr. WHALLEY. Before you raised the rates or change them do they just have a meeting, talk about them and set them, or do you talk about this weeks before as to what might happen? Dr. GERLACH. It took quite a while. When the Pan American Institute held its general assembly in Buenos Aires in 1961 the Brazilians served notice that they would not pay any more dues until the Institute changed its basis of quota assessments from population to the Pan American Union scale applied to the other inter-American organizations. They were joined in this attitude during the next 2 or 3 years, between assemblies, by a number of other countries, notably Chile, the Dominican Republic, gradually Mexico, and pretty soon all of them. Mr. WHALLEY. Did we make any statement that we would not be bound by any new systems they would put into effect? Dr. GERLACH. We made it clear we were limited by statute to a payment of $50,000 a year. We did not object in principle to their changing the quota basis from population to the Pan American Union scale. I must admit I can see no reason why there should be discrimination against the one inter-American organization when the same scale is applied to all of the others. Mr. WHALLEY. This is the only organization that is different. Is that right? Mr. ALLEN. Yes. In 1948 the Pan American Union adopted the scale of a modified ability to pay, followed by all of the other interAmerican organizations. Mr. WHALLEY. Did we agree in 1948? Mr. ALLEN. Yes, sir; we agreed, not on the basis of strict ability to pay but on a modified basis. Mr. WHALLEY. What does modified mean? Mr. ALLEN. In this case with respect to the Pan American Union that the ceiling of two-thirds was put on for the wealthiest country, which is us, which is less than our strict ability to pay. The remaining 34 percent was divided among the other countries in proportion to their U.N. scale, which had been previously adopted by the United Nations. Mr. WHALLEY. What you are trying to say is that this would bring us in line with all the other international agencies? Mr. ALLEN. Yes, sir. Mr. GROSS. Are you under the State Department? Dr. GERLACH. I am Chief of the Geography and Map Division of the Library of Congress. Mr. GROSS. I mean your organization. Where do you get your direction, or are you autonomous? Dr. GERLACH. This is an international organization. Mr. GROSS. Mr. Allen, you are State Department? Mr. ALLEN. Yes, sir. This is an inter-American organization and part of the Organization of American States. Therefore the general guidance and direction comes from the Inter-American Conference. which is the meeting held periodically of the Foreign Ministers of the participating American Republics. It is therefore inter-American as distinct from a U.S. Government agency. Mr. GROSS. Someday, Mr. Allen, I would like to sit down, when the monsoon season comes or the snow falls, with someone in the State Department and find out why for purposes of contributions to international organizations it is predicated upon assumed wealth and prosperity, but when it comes to voting in international organizations it is quite a different story. In the United Nations, for instance, we have one vote and tiny Luxembourg has one vote, and so on. I would like some Poohbah in the State Department to explain this system to me, or whatever you are pleased to call it. Mr. ALLEN. I don't pretend to be a Poohbah, sir, but I would be happy to have a chance to visit with you. I think there is some similarity to the way in which we operate within the United States where, regardless of the wealth of the person or the amount of income tax he pays, when he goes to the polls he has one vote. Mr. CUMMINS. Of course the obvious person to talk to this about is Assistant Secretary Sisco who was before Mr. Fascell's subcommittee recently. One other point. We have been using the phrase "ability to pay" and ability to pay in international organizations has normally meant income statistics and not GNP. This is only a reflection of income statistics for each country. Mr. GROSS. Is that net income? Mr. CUMMINS. Net income, not per capita income. On this basis, as Mr. Allen mentioned earlier, the U.S. percentage in the OAS would be much higher than 66 percent and the modification is to set a ceiling of 66 percent in the OAS. Mr. GROSS. I don't care how thick or thin you slice it-I don't like it. Mr. SELDEN. Are there any further questions? (No response.) Mr. SELDEN. We thank you for your testimony, gentlemen. As soon as you get the information requested for the record, we shall have another meeting and go into this matter further. If there are no further comments, the meeting is adjourned. (Thereupon, at 11:50 a.m., the subcommittee adjourned.) COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES EIGHTY-NINTH CONGRESS SECOND SESSION ON H.R. 15785 TO FACILITATE THE CARRYING OUT OF THE OBLIGATIONS OF THE UNITED STATES UNDER THE CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS OF OTHER STATES, SIGNED ON AUGUST 27, 1965, AND FOR OTHER PURPOSES 65-910 JUNE 28, 1966 Printed for the use of the Committee on Foreign Affairs U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1966 UNITED STATES OF AM COMMITTEE ON FOREIGN AFFAIRS THOMAS E. MORGAN, Pennsylvania, Chairman CLEMENT J. ZABLOCKI, Wisconsin L. H. FOUNTAIN, North Carolina CORNELIUS E. GALLAGHER, New Jersey RONALD BROOKS CAMERON, California JOHN C. CULVER, Iowa ROY H. McVICKER, Colorado FRANCES P. BOLTON, Ohio E. ROSS ADAIR, Indiana WILLIAM S. MAILLIARD, California E. Y. BERRY, South Dakota BOYD CRAWFORD, Staff Administrator PHILIP B. BILLINGS, Staff Consultant JUNE NICH, Senior Staff Assistant HELEN L. HASHAGEN, Staff Assistant LOUISE O'BRIEN, Staff Assistant MARY M. LALOS, Staff Assistant DORIS B. MCCRACKEN, Staff Assistant JEAN E. SMITH, Staff Assistant ROBERT J. BOWEN, Clerical Assistant |