POST-UNRRA RELIEF

Cessation of UNRRA

Apart from special arrangements to complete programmes already in
hand, UNRRA was due to cease operations on 31st March, 1947 in
Europe and 30th June, 1947, in the Far East. Completion of the
Australian programme will involve shipments at least until the
third quarter of this year, and in special case of locomotives for
China, deliveries may continue until the end of 1948.

2. The decision to close down UNRRA was taken because the United
States, which has contributed more than 70% of UNRRA's funds, was
opposed to further contributions for relief on an international
basis. The U.S. stressed:

1. The impossibility of continuing contributions on the original
scale; and
2. That future financing of relief supplies could be made
unilaterally by loans and gifts as occasion might arise.

Americans were influenced by two major considerations:

1. A dislike of continuing governmental or intergovernmental
procurement, and a desire for the world to get back to commercial
business.

2. A desire to make relief contributions contingent upon economic
and political interests which involved discrimination against
eastern European countries of the Russian Bloc in favour of
countries such as Greece, Italy and Austria.

3. One consequence of the termination of UNRRA is that with some
exceptions future relief is likely to be given directly to needy
countries under bilateral arrangements.

Post-UNRRA Arrangements

4. The question of post-UNRRA relief was considered at the meeting
of the General Assembly held at the close of last year, when it
was decided:

1. To establish a technical committee of experts, comprising
representatives of 10 nations to study the needs of war-devastated
countries, and to estimate the amount of relief assistance
necessary to meet these needs.

2. To direct the Secretary-General to consider ways of
coordinating relief programmes, and to report on the results to
Member Governments, and the Economic and Social Council, at the
earliest possible date.

Relief Needs

5. The technical committee of experts has now completed its
deliberations. The committee estimated that a total amount of $553
million would be necessary to meet minimum relief needs during
1947. The countries affected are Austria, Greece, Italy, Poland,
Yugoslavia and Hungary. The committee was unable to form any
conclusions as to China's ability to finance minimum relief needs.

Information about Korea and Albania was also incomplete. The
relief needs are basic essential items, primarily under the
headings of food, medicine and agriculture.

6. It has been suggested that if generous contributions are
forthcoming this year, Austria may be the only country requiring
assistance in 1948.

Relief Proposals

7. On the basis of the General Assembly's resolution that the
Secretary-General should consider ways and means of collecting
funds equivalent to one day's earnings throughout the world, the
total value of Australian government and non-government
contributions for 1947 would be about A4,000,000. Before
considering a further Australian contribution to general relief,
however, it is necessary to consider other relief schemes in which
Australia will be expected to participate.

Other Relief Organizations

8. The International Children's Emergency Fund, which is to be
financed by Government contributions, voluntary contributions and
from any residuals available after the termination of UNRRA, has
been set up to assist children who have suffered as a result of
war devastation.

9. As a first estimate, the outside assistance required to provide
supplementary food aid for European Children will amount to about
$200 million, apart from external assistance which may be required
for other general relief purposes.

10. Telegram No. U.N.289 from the Australian United Nations
Delegation, New York, attached as Appendix A, suggests the
pressing need for assistance to children in war-devastated areas
and gives an indication of the attitude of various governments,
especially the United States, to the raising of funds. One
suggestion that has been made is that contributions for the Fund
should also be on the basis of the equivalent of one day's
earnings throughout the world. There is likely to be little
support for this proposal. If carried into effect, however, it
would involve a request on Australia for a further A4,000,000.

11. The United Nations Educational, Scientific and Cultural
Organization has proposed a relief fund of $100,000,000 for
educational, scientific and cultural reconstruction of war-
devastated areas. The fund is to be financed mainly from
contributions of voluntary organizations, but governments may also
be asked to help. No information is available regarding the scale
of contributions proposed by governments.

12. Apart from the foregoing, Australia is represented on the
inter-governmental Committee on Refugees, and has participated in
discussions on the formation of an International Refugee
Organization. Australia has not yet joined this organization, but
should we do so, our contribution to both organizations for the
first 12 months would amount to almost A1,000,000 (see separate
Agendum [1]).

Requests on Australia

13. It is not possible to assess accurately the full extent of the
requests that may be made on Australia for relief in 1947, nor to
distinguish between requests for government contributions and for
voluntary private contributions. The following is a preliminary
estimate of possible totals on the basis of information at present
available.

General Relief A4,000,000
Children's Fund A4,000,000
Educational, Scientific and Cultural Relief & Rehabilitation A
50,000
A8,050,000

14. Australia's possible contributions of about A1,000,000 to
refugee organizations have not been included in the above
tabulation of requirements for this year because they are likely
to involve a recurring expense over a number of years, and can be
considered more appropriately in a separate submission.

Action by Other Countries

15. At an informal meeting called by the Secretary-General of the
United Nations on 28th February, some countries were able to give
an indication of the relief programmes they intend to adopt in
1947. Denmark will provide $4 million food relief, and Norway a
small unspecified amount. The U.S. has asked Congress for $350
million to be supplied mainly as foodstuffs, although the Bill
contains authority for expenditure of some funds outside the U.S.

New Zealand and France have also offered contributions. In view of
economic circumstances the U.K. contributions will probably be
limited to the granting of Stg10 million to Austria, and the
cancellation of certain Greek debts. Australia's representative at
the meeting was instructed not to commit the Government in any
way, but to obtain all possible information.

16. Canada has confidentially mentioned a tentative figure of $25
million for all post-UNRRA relief purposes, but it has been
suggested that a relatively large proportion of any relief
contributions by Canada might go to the Children's Fund.

17. Telegrams U.N.275 and U.N.302 from the Australian United
Nations Delegation, New York, giving an indication of the attitude
to post-UNRRA relief of the countries mentioned above, are
attached as Appendices B and C respectively.

Australian Interest

18. Australia's political and economic interests in assisting
needy countries in Europe and the Far East include:

(a) Economic recovery and stability, and therefore political
security depend upon meeting the essential minimum relief
requirements of Europe and Asia.

(b) The U.S. and the U.K., which have been the principal
contributors to relief in the past have, while opposing
continuation of UNRRA, shown willingness to make a substantial
contribution to meeting relief needs, although the exact form or
amount of the assistance has not been decided.

(c) Economic recovery of Europe is of the highest importance to
recovery in the U.K. The U.K.'s willingness to provide
'substantial contributions to relief', despite very great
financial difficulties, is indicative of this importance.

(d) Apart from long term and general advantages, Australia's
contributions could be devised so as to promote goodwill and other
political and economic advantages in the countries assisted. The
countries could be chosen according to their importance to
Australia.

Decisions Required

19. The Secretary-General of the United Nations has asked urgently
for a general indication of national relief policies. He has
already initiated discussions with the various national
delegations at the United Nations, New York, and our
representatives have requested instructions as to Australia's
intentions.

20. Decisions are therefore required on the following matters:

(a) Is Australia prepared to make any further relief
contributions?
(b) If so, up to what amount, to what countries, and on what
conditions?
(c) Is Australia prepared to permit the promotion of public relief
appeals and private voluntary contributions?
21. One possible course of action would be as follows:

(a) To determine a figure of, say, A4,000,000 as the maximum
contribution by the Australian Government to all post-UNRRA relief
purposes (other than the Refugee Organization-see separate
Agendum).

(b) To appoint a Sub-Committee of the Treasurer and Ministers for
External Affairs, Supply and Shipping, Commerce and Agriculture,
and Post-War Reconstruction, to determine-
(i) to what extent Australia is in a position to supply goods and
services for relief purposes within the ceiling figures approved;

(ii) the allocation to be made over the various relief activities
and countries requiring relief, and
(iii) the conditions, if any, to be attached to any Australian
relief contributions.

Submitted for consideration. [2]

J. B. CHIFLEY
Treasurer

H. V. EVATT
Minister for External Affairs