Professor Urges 'Complex Solution' To United Nation's Payment Crisis

The solution to the United Nations' financial problems may lie in a "system so complex that no one will be able to tell who has won," a Law School professor said last night.

Commenting on his letter in yesterday's New York Times, Louis B. Sohn, Bemis Professor of International Law, said last night that a complex system would enable all sides in the dispute to benefit from the final solution.

In his letter, Sohn stated that simple solutions to the United Nations' financial crisis "are likely to fall, because any such solution would be interpreted as a defeat of one side or another."

Sohn, who is also John Harvey Gregory Lecturer on World Organization, outlined a possible solution which contained provisions likely to please all sides.

His proposal calls for the major powers to contribute to a special United Nations fund, a total of $3 billion in the form of interest-free loans. The money would be used to provide loans for developing countries at an interest rate of about four per cent.

The interest on the loans, which would amount to more than $100 million per year, would be used to finance the operations of the United Nations.

Under the plan the funds provided by the major powers would come from reduced military budgets. This would be done to please the Soviet Union which has advocated budgetary arms control in the past.

The interest provided would be put into a special United Nations peace-keeping fund. The fund would provide for both present and past peace-keeping expenses and would thus satisfy the demands of the United States, Sohn believes.

The developing nations have frequently asked the United Nations to make avail lable low-interest loans for developmental purposes. Sohn feels the proposal would therefore meet with their approval.

Sohn said last night that he thinks his proposal would stand an excellent chance of being accepted since it would provide many countries with "a welcome way to get out of a corner."