53400 1964 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION TOKYO, SEPTEMBER 7-11, 1964 INTRODUCTORY NOTE THE 1964 ANNUAL MEETING of the Board of Governors of the International Bank for Reconstruction and Development, held jointly with that of the International Monetary Fund, took place in Tokyo, Japan, September 7-11, 1964 (inclusive) under the chairmanship of The Honorable Francisco Aquino h., President, Banco Central de Reserva de EI Salvador, and Governor for EI Salvador. The Annual Meetings of the Bank's affiliates, the International Finance Corporation (IFC) and the International Development Association (IDA), were held at the same time and place. The proceedings of the Annual Meeting of IFC are a separate publication. M. M. MENDELS Secretary INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND AFFILIATES WASHINGTON, D. C. October 31, 1964 1964 ANNUAL MEETINGS FINAL SCHEDULE Sunday SEPTEMBER 6 5:00 p.m. -Joint Procedures Committee Monday SEPTEMBER 7 9:30 a.m.-JOINT BOARDS -Opening Ceremonies -Address by Chairman -J oint Procedures Committee Report I -Annual Address of Managing Director, IMF -Annual Address of President, IBRD, IFC and IDA Tuesday SEPTEMBER 8 9: 30 a. m.-IMF BOARD -Annual Discussion 3:00 p.m. -Annual Discussion (continued) Wednesday SEPTEMBER 9 9: 30 a. m.-IBRD, IFC AND IDA BOARDS -Annual Discussion 3:00 p.m. -Annual Discussion (continued) Thursday SEPTEMBER 10 9: 30 a. m.-IMF BOARD -Annual Discussion (concluded) -Election of Executive Directors -Joint Procedures Committee Report II 3:00 p.m.-IBRD, IFC AND -Annual Discussion (concluded) IDA BOARDS -Election of Executive Directors -Joint Procedures Committee Report III 5:30 p.m. -Joint Procedures Committee Friday SEPTEMBER 11 11 :00 a.m.-JOINT BOARDS -Joint Procedures Committee Report IV -Comments by Heads of Organizations -Concluding Remarks -Adjournment ii CONTENTS Page ADDRESS BY THE PRIME MINISTER OF JAPAN, HAYATO IKEDA 1 OPENING ADDRESS BY THE CHAIRMAN, FRANCISCO AQUINO H., GOVERNOR FOR EL SAL VADOR .......................................... . 3 ANNUAL ADDRESS BY GEORGE D. WOODS, PRESIDENT OF THE BANK AND ITS AFFILIATES. 8 CONCLUDING REMARKS BY MR. WOODS ..................................... . 14 CLOSING REMARKS OF THE CHAIRMAN, FRANCISCO AQUINO H. 15 REPORTS OF JOINT PROCEDURES COMMITTEE: REPORT I ............ , ......... , ................................ , .. 16 Provisional Schedule ................. : .......................... . 18 Provisions Relating to the Conduct of the Meetings .................... . 19 Agendas ...... , ......... , ..... , ............................... . 20 REPORT III ....................................................... . 21 REPORT IV ....................................................... . 23 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK BETWEEN 1963 AND 1964 ANNUAL MEETINGS .......................... . 24 NO. 194 ..... Increase of $ I ,000 Million in Authorized Capital Stock ..... . 24 NO. 195 ..... Increase in Subscription of Ecuador to Capital Stock of Bank .. 24 NO. 196 ..... Increase in Subscription of Israel to Capital Stock of Bank ...... . 25 NO. 197 ..... Increase in Subscription of Italy to Capital Stock of Bank ....... . 25 NO. 198 ..... Increase in Subscription of Costa Rica to Capital Stock of Bank 26 NO. 199 ..... Increase in Subscription of Dominican Republic to Capital Stock of Bank .............................. . 27 NO. 200 ..... Agreement with the United Nations Educational, Scientific and Cultural Organization (Unesco) ............ . 27 NO. 201 ..... Agreement with the Food and Agriculture Organization of the United Nations (FAO) .......................... . 27 NO. 202 ..... Number of Elected Executive Directors .................... . 28 NO. 203 ..... Increase in Subscription of Panama to Capital Stock of Bank .... . 28 NO. 204 ..... 1964 Annual Meeting-Governors' Allowances .............. . 28 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK AT THE 1964 ANNUAL MEETING ........................................ . 29 NO. 205 ..... 1964 Election of Executive Directors ...................... . 29 NO. 206 ..... Loans to International Finance Corporation ................. . 29 NO. 207 ..... Financial Statements, Auditors' Report and Administrative Budget ................................ . 30 NO. 208 ..... Allocation of Net Income and Statement of Policy ............ . 30 NO. 209 ..... Membership of Malawi ................................. . 30 iii CON TEN T S (Continued) Page NO. 210 ..... Increase in Subscription of Ghana to Capital Stock of Bank 32 NO. 211 ..... Increase in Subscription of Iraq to Capital Stock of Bank . . . . . . .. 32 NO. 212 ..... Increase in Subscription of Malaysia to Capital Stock of Bank. . . .. 33 NO. 213 ..... Increase in Subscription of Sudan to Capital Stock of Bank ... . .. 34 NO. 214 ..... Settlement of Investment Disputes .......................... 34 NO. 215 ..... Appreciation ........................................... 34 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA BETWEEN 1963 AND 1964 ANNUAL MEETINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35 NO. 44 ..... Membership of the Kingdom of Belgium ...................... 35 NO. 45 ..... Membership of the Grand Duchy of Luxembourg . . . . . . . . . . . . . . .. 36 NO. 46 ..... Agreement with the United Nations Educational, Scientific and Cultural Organization (Unesco) ...................... 36 NO. 47 ..... Agreement with the Food and Agriculture Organization of the United Nations (FAO) ........................... 37 NO. 48 ..... Additions to Resources .................................... 37 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA AT THE 1964 ANNUAL MEETING ......................................... 39 NO. 49 ..... Financial Statements, Auditors' Report and Administrative Budget ................................. . 39 NO. 50 ..... Membership of Malawi ................................... . 39 NO. 51 ..... Membership of Trinidad and Tobago ........................ . 40 NO. 52 ..... Appreciation 40 RULES FOR THE 1964 REGULAR ELECTION OF EXECUTIVE DIRECTORS ............. . 41 EXECUTIVE DIRECTORS ELECTED AT 1964 REGULAR ELECTION 44 REPORTS OF EXECUTIVE DIRECTORS OF BANK Allocation of Net Income and Statement of Policy 46 Settlement of Investment Disputes ..................................... 49 Bank Loans to IFC ................................................. 51 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS. . . . . . . . . . . .. 57 EXECUTIVE DIRECTORS AND ALTERNATE DIRECTORS AT 1964 ANNUAL MEETINGS. . .. 64 OBSERVERS AT 1964 ANNUAL MEETINGS .................................... 65 OFFICERS OF THE BOARDS OF GOVERNORS AND PROCEDURES COMMITTEE FOR 1964-65.. 66 PRINCIPAL OFFICERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 67 IV ADDRESS BY THE PRIME MINISTER OF JAPAN, HAYATO IKEDA N BEHALF OF THE PEOPLE and the Government hundred countries. This increase in numbers, to- O of Japan, it gives me great pleasure to extend gether with the establishment of the International a hearty welcome to the distinguished international Finance Corporation and the International Develop- leaders in the fields of money and finance who have ment Association, is manifest evidence of the fact gathered here in Tokyo to attend the Annual Meet- that international financial cooperation has grown in ing for 1964 of the International Monetary Fund substance and strength from year to year. The tre- and the International Bank for Reconstruction and mendous progress made by the world's economy Development. since World War II presents a striking contrast to It is the earnest desire of all mankind to build a the economic depression and political chaos that world wherein each one of us can freely and fully characterized the world in the 1930's. What is this demonstrate our will to work and our creative abili- but magnificent proof that international cooperation ties and can enjoy the blessings of an abundant and based upon the spirit of Bretton Woods is steadily peaceful life. Where there is no peace there is attaining the goals of a stable international monetary no economic development. Where there is no eco- system and the development of the world economy. nomic development, there is no abundant life. Where A hundred years ago Japan was a poor feudal poverty exists there is no general well-being. And nation dependent mainly on agriculture. The new so indeed the vital challenge which we all face, government of the Meiji Era, which began in 1868, whether domestically or internationally, is to promote devoted the nation's resources and efforts to diffusing stable economic growth and reduce the disparity popular education and importing Western civilization between the rich and the poor. as a first step in Japan's modernization. As a result, Today, when rapid expansion is taking place in compulsory education extended to all the people and economic and cultural relations between nations, no by the coming of the 20th century the rate of one nation can prosper unless others also prosper. illiteracy dropped to five per cent. At that time Prosperity is indivisible. It is incumbent upon all of the basis was also laid for the steel, textile, and other us to make efforts to remove obstacles to free eco- modern industries. nomic intercourse, to strengthen international coop- In the long years that have followed until today eration and to go beyond our own national borders we Japanese have made sustained efforts, overcoming to contribute to the growth of the world economy many difficulties, to modernize and industrialize our as a whole and to the enhancement of the welfare country. of mankind. The great growth which our economy has achieved In 1952 when Japan joined the Fund and the in the nineteen years since the war was made pos- Bank,.it was my pleasure to attend the Annual Meet- sible by the conversion of our industrial structure ing in Mexico City as my country's first Governor. to one based on heavy and chemical industries. In In the twelve years which have since passed, the the last ten years our economy has grown at an people of my country have shown the keenest interest annual rate of 9 per cent net, the production of our in the deliberations and achievements of every An- manufacturing industries has increased by almost nual Meeting of these great institutions. four times, and our gross national product has ex- At the time Japan joined, the membership was panded by 2 V2 times in real terms. With the rapid about fifty; it has now swelled to more than one rise in production, the per capita national income In this country is gradually approaching, if it has nothing have become active as we see today. Experi- not yet reached, the level of the Western European ence has shown us that the state of affairs which countries. we enjoy today is not possible without free economic In 1960, when I assumed the post of Prime intercourse and international cooperation. We have Minister, I projected a program to double the also learned by experience that a climate of inter- national income in ten years, beginning in 1961, national cooperation is indeed a factor of vital im- in order to set an objective for the nation's free and portance to countries now in the process of develop- vigorous economic activities and to arouse the na- ment. And so together with all of you I wish to tion's awareness of its capabilities. The results to reaffirm the universal fact that the nations of the date of this program have exceeded our original world can grow and prosper together by mutual help expectations, but our economy has, on the whole, and cooperation and by expanding in that spirit free maintained a balance between growth and stability. economic relations between and among them. A nation's destiny-political, economic and cul- As economic interdependence and solidarity be- tural-is determined by and large by its own creative tween nations grow closer, the need becomes greater ability and by education which nurtures such ability. for each to promote the stability and growth of its The world's peace and prosperity can be brought own economy through sound fiscal and monetary about when the people of every nation positively policies and at the same time to cooperate with direct their energies toward this end. Animated by others to preserve the international monetary system this conviction, we Japanese will endeavor to raise and to provide adequately for international liquidity. still higher our standards of education and advance Even though nations may, by reason of individual cir- our sound economic growth. By seeking to increase cumstances, have different policies in respect to our imports of primary products and our exports domestic liquidity, economic growth, employment, of manufactured goods and by steadily expanding prices, and balance of payments, I sincerely wish that our assistance to the developing countries, we wish in the arena of international consultation, such as we to contribute our share to the peace and prosperity now have here, all nations will do their utmost to of the world. come together in a spirit of mutual accommodation If I have discussed somewhat at length the eco- in the common interest of prosperity for the world nomic growth of my country, it was because I wanted as a whole. to emphasize the fact that we are trying to accom- Nations which are in the process of development plish in less than twenty years since the war what need capital and technology to develop their re- we could not accomplish in eighty years before the sources and to foster modern industries which in- war, and to point out that this was made possible crease employment. This situation calls for the in a climate of international cooperation which did promotion of exchange of capital and technology in not exist in former times. a spirit of international cooperation between the There have been occasions when financial assist- already developed and the newly developing coun- ance from the IMF has helped us to solve our tries. Capital and technology thus brought into the balance of payments difficulties. Many times loans developing countries, combined with firm will and from the IBRD and cooperation extended to us by untiring efforts of the receiving countries to make Western financial institutions have covered our capi- progress, will serve to raise their industrial produc- tal shortage and helped us to advance our steady tivity and to improve their economic structures, and economic growth. In the past seven years our foreign this will enable them in turn to provide capital to trade, both import and export, expanded by more countries which follow them in the development than two times and our capital transactions, both process. long-term and short-term, which started from almost It is particularly significant that a number of 2 important proposals will be submitted and fully dis- It is my sincere belief that, through the efforts of cussed at this Annual Meeting. My country, let me the international institutions and all their members say, is prepared to contribute even more positively here assembled, the Tokyo Meeting will surely be than before to international cooperative endeavors. crowned with eminent success. At the same time I would like to see the Fund and Japan is a country with long historical traditions the Bank, cooperating with each other, further ex- and a rich cultural heritage and, at the same time, a pand their functions and their resources, invite more country filled, I think, with youthful energy ever and new countries into their fold and, as is so apparent, actively seeking to explore new horizons. In closing, carry out their high mission widely throughout the may I hope that you will fully see the conditions in world in the spirit made manifest at the time of their our country and that your stay here will be a pleasant founding. and memorable one. OPENING ADDRESS BY THE CHAIRMAN, FRANCISCO AQUINO H., GOVERNOR FOR EL SALVADOR OVERNORS, before calling on the Managing the International Finance Corporation and the Inter- G Director of the International Monetary Fund national Development Association. and the President of the International Bank for I would like to say a word, first, of appreciation Reconstruction and Development and its affiliates for the Japanese setting of this Meeting. It combines to make their statements, I shall avail myself of this the gracious hospitality of the Japanese Government opportunity, as is the established custom, to make and people with a rich source of inspiration for our a few introductory remarks. discussions. One finds here, along with the products I am pleased to welcome the distinguished Gover- of ancient arts and handicrafts, a wide-ranging and nors, official observers and guests, to this Annual well-equipped modern economy which gives its popu- Meeting of our international financial organizations. lace a living standard that is rising faster, probably, We have come together, from 102 member countries, than any other in the world today. at a time when the outlook for a more prosperous In Japan, too, there is ample evidence of the world seems to be improving. We are aware of the benefits to be derived from dealing with economic many achievements of the past, but we know that problems through channels of international coopera- important goals still remain far distant, and that our tion. Japan has received financial assistance from the progress toward them requires patient efforts, and Fund and the Bank. In other ways as well, it has wise policies of international collaboration. We are both benefited from and contributed to this process fortunate indeed to have the facilities for consultation of cooperation. It has benefited from the wider appli- and mutual assistance that are provided by the Inter- cation, which many countries are giving for Japa- national Monetary Fund, the International Bank for nese exports, to the principles of nondiscriminatory Reconstruction and Development, and its affiliates, trade, in accord with Article 13 of the General 3 Agreement on Tariffs and Trade. On the other hand, cult situations. It is a tribute to the founding fathers Japan has contributed to international cooperation that they had the vision, in conceiving the institu- by liberalizing foreign trade and payments, culminat- tions, to give them not only a strong structural ing recently in its achievement of convertible cur- organization, but also the necessary elasticity and rency status, as defined by Article VIII of the Fund. flexibility to meet the changing economic problems No less important, Japan has vigorously cooperated of a changing world. I doubt that anyone at Bretton with other industrialized countries in providing assist- Woods would have predicted that in 1964 each ance to developing nations, and in furnishing re- institution would have 102 member countries, or sources to guarantee the strength of the international that we would meet here today as the Governors monetary system. Japan has pledged a substantial of not two, but four, great financial institutions. But sum for the replenishment of the resources of IDA. these two facts testify how greatly the world has Through its continuing activities in these fields, our changed, and how our institutions have had the flexi- host country has shown its firm determination to bility to change with it. assist in the common struggle toward a more pros- Even in their earliest days, the activities of the perous world environment for us all. institutions were different from what had been antici- We meet today just twenty years after the repre- pated. The first postwar successes in financing the sentatives of a large group of countries gathered in reconstruction of war-torn economies and bringing Bretton Woods in 1944, to consider the economic stability back to war-weakened currencies were problems of their day. When they met, the world accomplished by other means. The true functions was at war. But realizing that the war would even- of the Fund and the Bank emerged, rather, in other tually be over, the leaders started to consider the fields of activity; the Fund has been increasingly problems that would have to be faced at the termina- concerned with advice and assistance to developing tion of hostilities, and began making plans and countries, and with the problems of managing the preparations to meet them. international monetary system; the Bank is concerned Two big problems dominated the economic hori- with the deep and lasting problems of economic zon in 1944. First, how to restore stability to the development. monetary systems of countries that had been forced In their pursuit of these tasks, both the Fund and by the war to abandon all conventional rules of the Bank have well earned their place in the world monetary good behavior. Second, how to reconstruct of today. Both have been financial successes, with the countries devastated by the war. These were excellent records of repayment in their financial necessary prerequisites to any efforts to ensure a transactions, and with ample accumulated reserves growing world economy and to dismantle the com- against contingencies. More important, they have a plex of trade and exchange restrictions that had fine record of service to their members, large and grown up over the previous decade. small, rich and poor. As I have indicated, it is my To meet the first problem, the Fund was created. belief that a large part of the success of the Fund To meet the second, the Bank was created. and the Bank has lain in their ability to approach I do not wish, today, to trace the history of the new problems flexibly, with a determination to adapt two institutions which had their origins at Bretton both policy and institutional arrangements to the Woods. I should like, however, to consider with needs of a changing world. With respect to institu- you a most remarkable characteristic of both the tional arrangements, the most obvious adaptation Fund and the Bank, a characteristic which I believe was the creation, first, of the International Finance will be of considerable importance in the years to Corporation, and secondly of the International come. This is the ability and resourcefulness of both Development Association. The recent replenishment institutions to meet the most unpredictable and diffi- of the resources of IDA is a further step in this 4 direction, and is most welcome. The proposals now rary shortfall in export receipts. More recently, it before us, to transfer to the IDA $50 million of the has reviewed its policies with respect to transactions Bank's earnings, and to lend Bank funds to the IFC by countries which have not yet established par for relending, seem to me fully as significant, because values, and has streamlined its procedures for draw- they show that the impetus for imaginative responses ings in the gold tranche. Perhaps the Fund's ability to new problems is in no way being lost. Both the to adapt itself to changing conditions is most evident Fund and the Bank have created Institutes for train- in its continuing studies and actions in the field of ing the officers of member countries in the intricate international liquidity. As a result of a Fund study fields of development and monetary management. presented to our Meeting in New Delhi in 1958 the Both have developed to a high degree the techniques quotas in the Fund were enlarged; this was also the of technical assistance, and the Fund has recently occasion for an increase in the subscriptions to the moved to broaden its efforts in this field by estab- Bank. At our 1961 Meeting in Vienna, the Manag- lishing its Fiscal Affairs Department and its Central ing Director of the Fund again called our attention Banking Service. Both have established departments to the liquidity problem, outlining a plan for replen- concentrating on the problems and interests of the ishing the Fund's resources through borrowing. Such African countries. In a great many ways, institu- a plan was later adopted in the form of the General tional arrangements have been changed, and adapted, Arrangements to Borrow, entered into with several to changing needs. large industrial countries. The Report of the Execu- Equally, if not more, important has been the tive Directors of the Fund, which we are to consider evidence of a willingness to alter or adapt policies this week, calls upon us again to examine the ade- to new conditions or newly recognized problems. In quacy of quotas, and suggests new ways to be further addition to the basic policy implications of the estab- explored in which the Fund can contribute to solving lishment and buttressing of the IFC and the IDA, the problem of international liquidity. This problem it is not difficult to cite examples of the ways in has also been studied during the past year, and will which both parent institutions have met new chal- continue to be studied by a group set up by the lenges. In fact, the initiatives that these two institu- countries that are members of the General Arrange- tions have taken in the course of time are so many ments to Borrow, and it will undoubtedly be a major and so varied that I must confine myself to a few preoccupation of many Governors during the coming outstanding cases. The Bank, for instance, has week. secured coordination between its operations and The problem of international liquidity is one which those of creditor countries through the device of the rightly concerns all members of the Fund. It is true consortium. It has begun to relax the terms of its perhaps that the efficiency of the international mone- financing, in appropriate cases, and has reduced its tary system is largely dependent on the effective commitment charge on loans from ~ to % of one cooperation of a relatively small number of countries; per cent. The Bank and the IDA are shifting em- but it serves the interests of all. Thus, the success phasis toward the very important and pressing prob- of the developing countries' attempts to attain rea- lems in the field of agriculture and education. The sonable living standards will hinge on continued IDA has broken new ground by financing compo- world prosperity, which in turn will be impossible nents and materials needed by existing enterprises without adequate provisions for increasing inter- but which those enterprises could not obtain from national liquidity. Also, the strengthening of the abroad because of a scarcity of foreign exchange. international reserve currencies, through assurances The Fund has been no less flexible. For instance, that international liquidity is sufficient, is a matter of it introduced last year its compensatory financing primary importance to the many developing countries facility for assisting countries experiencing a tempo- which hold most of their foreign reserves in such 5 currencies. Moreover, the developing countries, even have already demonstrated the imagination and skill more than the industrial nations, have been subject which will keep our institutions in pace with the to wide variation in their payments situations and changing world. thus are especially in need of adequate amounts of The fact that the world is changing, and, indeed, liquidity to provide time for adjustments. in many respects must change rapidly, is now uni- I should like, therefore, to urge that whatever ac- versally recognized. In spite of the vast technical tion may be the outcome of the present deliberations advances of this century, too many people on the in the Fund and elsewhere will be taken within a face of the earth live out their lives in a grinding truly multilateral framework such as that provided poverty which knows little of the benefits of tech- by our Meeting. One of the merits of world-wide nology. The effort to raise standards of living is a organizations such as the Fund and Bank and the primary goal of national policy in all our countries; Bank's affiliates, IFC and IDA, is that they provide it is an urgent and a vital necessity for the great a forum for a balanced consideration of problems majori~y of the countries represented here. that affect countries in all stages of development The problems involved in this effort are so large and the world at large. In these times there are no that sometimes, in our moments of despair, they seem major economic problems that can be regarded as to us to be insurmountable. In our more optimistic being the concern of this or that group of countries; moments, however, we recognize that progress, while all countries have a vital interest in all major issues. often painfully slow, is nevertheless possible. We These interests are not necessarily the same and it recognize also that it is worth the great effort re- would be naive to believe that divergencies could quired to attain it. I have had some personal experi- always easily be reconciled. But it is the value of ence in dealing with these problems, both with these organizations that, in democratic fashion, they respect to the efforts of the country which I have the provide the forum for all to be heard, and for all honor to represent, and with respect to the efforts of viewpoints to be considered. In this manner these Central American countries, as a group, to find ways institutions contribute not only toward the fulfill- and means of improving their lot. From these experi- ment of their specific tasks, but also to that even ences come three observations which, I believe, may greater good, the unity of purpose of their world-wide be useful and valid in a wider application. membership. It is important that the vital question It seems to me, first, that any nation, regardless of liquidity should be approached with such a unity of how great its problem, can make a welcome of purpose, and it is for that reason that I welcome amount of progress in achieving growth and main- the central role which the Fund is playing in this taining stability if it pursues these objectives ener- matter. getically. We have been pleased with the results in It is only fair that we should stop here for a my own country of our efforts to secure a high minute and pay tribute to those who have so much rate of economic growth and social improvement contributed to these accomplishments. No institution while maintaining a stable currency and stable prices. is better than the men who run it. During the past three years the gross national product The names of Gutt, Rooth, and Jacobsson in the of El Salvador has been increasing at an average Fund; and of Meyer, McCloy, and Black in the rate of eight per cent; exports have been diversified; Bank are milestones in the history of economic prog- and, monetary reserves have grown to record levels. ress of the world. We are fortunate to have been Roads, power projects, communications systems, able to transmit their inheritance to two great education, water and sewer facilities and housing leaders: Mr. Schweitzer in the Fund and Mr. Woods developments for the lower income groups have in the Bank, on whose talent, untiring energy and received the greatest attention. The assistance pro- far vision the future of our organizations rests. They vided by the Fund, the Bank and IDA in some of 6 these national endeavors has been of paramount two problems with which our institutions are greatly importance. concerned. It was not possible for the United Secondly, it is clear that efforts to improve national Nations Conference on Trade and Development to economic welfare through regional integration need reach agreement on the vital and difficult problems not be inconsistent with broader efforts toward a free before it-problems to which solutions must be and growing world economy. Many competent ob- found if the gap between rich and poor nations is servers from outside Central America have com- to be bridged. Nevertheless, the Conference opened mented with approval on the Central American the door of understanding with respect to the difficul- Economic Integration Program. The five Central ties and objectives of both rich and poor countries, American countries: Costa Rica, Guatemala, Hon- and strengthened their determination to explore and duras, Nicaragua and El Salvador, have an economic consult further on these grave questions. In its integration program which has been under way for search for solutions to some of the most pressing the last twelve years. At present, 98.5 per cent of questions of economic development, the Conference our trade has a common tariff; we have a Bank for turned to these institutions, and in particular, to Economic Integration which is financing projects of the Bank. a regional nature in the field of both industry and Four major problems have been referred to the public works; we have established a clearing house Bank for further study. The first of these was the through which about 90 per cent of the visible intra- "Development Financing Plan" proposed by Gover- regional transactions are settled and credit is ex- nor Horowitz from Israel. Secondly, the Bank was tended to the debtor nations; and, we have recently asked to expedite its studies of investment insurance. signed an agreement establishing a system of mone- The use and terms of suppliers' credits and credit tary policy consultations which we hope to develop, insurance constituted a third area of study. Finally, in time, into a Central American Monetary Union. the Bank was invited to investigate the feasibility of All these efforts will, I am sure, facilitate the achieve- providing, through supplemental funds administered ment of the final objectives of the Fund and the Bank. by IDA, long-term assistance to countries whose My third observation-and I am sure that this programs of development are endangered by short- is widely recognized-is that the problems of eco- falls in export receipts. The Conference referred to nomic development will inevitably be a major the Fund a review of its compensatory financing preoccupation of the international community facility. I am sure that these studies will fit in well throughout the foreseeable future. Efforts to raise with the many other activities which our institutions the national incomes of the poorer countries must are undertaking to improve the economic well-being be pursued constantly and vigorously, and we can- of mankind. not afford to lose heart because of the prospect that I hope that in the course of the next few days the the task is seemingly endless. Governors will take the opportunity to express their Although I make these observations from my views on some of the many problems with which our personal experiences, I am well aware that they institutions will have to deal in the years to come. reflect preoccupations which are shared by all re- I invite you to approach them with the same spirit sponsible persons throughout the world. This was of imagination and cooperation which led to the amply demonstrated a few weeks ago when all the creation of the Fund and the Bank twenty years ago, countries represented here, and a few others, met and with a determination that the flexibility and in Geneva to consider the two most urgent issues enterprise which have characterized our past will facing the world today: trade and development, be no less evident in the years that lie ahead. 7 ANNUAL ADDRESS BY GEORGE D. WOODS, PRESIDENT OF THE BANK AND ITS AFFILIATES to join with you in I SHOULD LIKE FIRST OF ALL greeting all of our Governors, the members of extended a record volume of credits, totaling more than $280 million; and the International Finance their delegations and our guests from around the Corporation's loans, purchases of equities and other world. I wish also to add my thanks to the Prime commitments amounted to almost $21 million-in Minister for his warm words of welcome and to the aggregate more than $1,100 million. The pace express my appreciation to the Government of of our operations since the close of the fiscal year Japan for the excellent arrangements made for our is still quickening-with continuing emphasis on the meetings. basic infrastructure fields of transportation and Like my colleague the Managing Director of the power. One result is that, after a prolonged absence, International Monetary Fund, I am particularly the Bank will be back in the financial markets of pleased that our Annual Meetings are in Tokyo the world to borrow substantial sums during the cur- this year, for Japan is a vibrant example of both rent fiscal year, and in view of this fact I welcome reconstruction and development. From a state of the many representatives of banking, underwriting economic prostration, this nation has risen to take and insurance firms here today. its place among the industrial leaders of the world. Since the last Annual Meeting we have received The record of economic development in Japan has the assurance that IDA's resources will be replen- been magnificent and truly remarkable. Many ished. The additional funds to be made available policies, practices and procedures followed by Japan by 18 capital-exporting countries for commitment, are worthy of consideration by officials of countries at least through June 30, 1966, will be more than which are traveling the path of development. $750 million. I hope that these funds will be aug- Mr. Chairman, my remarks today will be divided mented, not only by special supplementary contri- into three principal parts. I will briefly report on butions from industrialized countries, such as those developments in the Bank group of institutions over so generously made by Sweden, but also by con- the past year. I will indicate some of the problems tributions from some of the developing countries, which, as I see it, will be among our principal pre- in the form of releases from their initial subscrip- occupations in the period ahead. Finally, I will tions. Ireland, Israel and Jordan have set notable say a few words about developments in the world examples by agreeing to release their entire local environment in which the Bank group operates and currency subscriptions to IDA on a convertible basis, about the possible effect of those developments upon over a period of years. the role of our organizations. In addition, there is a proposal before you that the Bank transfer to IDA a portion of its net income for I the fiscal year 1964. Assuming this is approved, The detailed record of our activities during the IDA's resources will be increased by another $50 past fiscal year is set forth in the Annual Reports million. I hope in the future the Bank can continue which you have before you. As that record suggests, to add to IDA's ability to meet the growing demands it has been a busy year for all three institutions. upon it. Bank lending for the year reached nearly $810 Last year I reported that the Bank intended to million; the International Development Association explore the possibility of modifying the pattern of 8 terms and conditions of loans in some special cases I have no doubt that in putting increased emphasis where the particular circumstances of the project on agriculture and education, we are following the or the borrowing country made a change in terms right course. Lagging production of food, the lack appropriate. During the year we have extended of diversification within the agricultural sector itself loans with a final maturity of as much as 35 years and the shortage of skilled people at all levels, in and with a grace period of as long as eight years. both government administration and productive Moreover, as of the beginning of the current fiscal enterprise, are holding back economic growth in year, the commitment charge on the undisbursed far too many countries. But let me add that, in portion of Bank loans was cut in half. view of the magnitude of the financial requirements Even more important, in my judgment, the Execu- for adequate educational and agricultural develop- tive Directors have agreed upon a restatement of ment, the Bank can do little more than serve as a policy with respect to financing local currency expen- trail blazer. We can point the way for others by ditures. It has now been made entirely clear that supporting a few strategic projects and by helping our criterion in the selection of projects is the extent to identify, and to move towards solution, a few of their prospective contribution to economic devel- of the key problems. But these efforts will be useful opment, regardless of the ratio of costs as between only if governments follow through by focussing foreign exchange and local currency. We now stand more of their attention on the critical needs of ready to finance some of the local costs of high- agriculture and education and by according them priority projects in cases where financing for imports appropriate priority in the allocation of available alone would not provide adequate support. resources-both domestic and foreign. We have also made progress in expanding the I still firmly believe that the Bank, IFC and IDA scope of Bank and IDA activities relating to agricul- can and should do more to stimulate industrial ture and education and of all three of our institutions development, the third sector which I singled out in seeking more effective means to promote indus- for special emphasis at our meeting last year. IFC trial development. is our principal instrument for financing industry. In the fields of agriculture and education, we have When the Corporation began its operations, a little negotiated partnership agreements with the Food and more than eight years ago, with its somewhat less Agriculture Organization of the United Nations and than $100 million of capital, it was an experiment. with the United Nations Educational, Scientific and It was by no means clear that IFC would have pre- Cultural Organization, under which we enjoy the sented to it a sufficient volume of business of a type benefit of the long experience of these agencies. Both which would be suitable for it to engage in. At the arrangements are off to good starts. We are now same time, there were doubts as to whether it would working together in helping governments to identify be able to revolve its funds or whether, once it had and prepare projects suitable for Bank or IDA committed its initial funds, it might not find itself financing and subsequently in appraising these proj- frozen and with no ability to continue operations. ects. Some nine educational and 21 agricultural Significantly, during the past fiscal year the projects are under active consideration for financing, cumulative total of commitments made by IFC ex- while additional proposals in both fields are in ceeded its paid-in capital. Equally significant, more various stages of discussion or investigation. Unesco than one-third of these commitments have been re- and FAO are directly involved in the examination of volved, partially through repayments but primarily most of these proposals and I am happy to record by having the commitments taken over by private at this Governors' Meeting my appreciation of the investors. The Corporation in this fiscal year made excellent cooperation we are receiving from both more commitments in more countries than ever these organizations. before. 9 Last year I said that the Executive Directors were and organize and put together a needed venture. considering how additional financial assistance could IFC and the Bank are actively trying to assist in these be made available from the Bank to privately- promotional activities. owned industrial companies without a government One of the best techniques we have found is to guarantee. They have concluded that the most join in partnership with development finance com- effective way this could be done would be for the panies in organizing the sponsorship of urgently Bank to lend to IFC funds which IFC in turn could needed new ventures. We have close relationships relend to private companies. Accordingly, there is with these companies; in fact, the Bank and its before you a recommendation by the Executive Di- affiliates have provided them with about $300 million rectors that the Articles of Agreement of the Bank in finance. We are working with them in many parts and of IFC be amended to permit the Bank to make of the world. loans to IFC, within limits, for relending to private Many of our member countries have markets for enterprise without government guarantee. industrial products which are too small to support I strongly support this recommendation. I have an economically sized industry. We are seeking to already commented on the increased pace of IFC assist, through regional economic grouping, the cre- activities. It is clear to me that it is now time to ation of larger markets. We intend to give high consider all means by which IFC resources can be priority to financing and technical assistance activi- increased so that the accelerated tempo of opera- ties designed to facilitate such regional groupings. tions can be sustained and even enlarged. I believe Over the long run, industrial growth, like eco- that IFC should not only continue its present types nomic development in general, must be based pri- of activity on an increased scale, but that there is a marily on domestic effort and domestic ownership. considerable area of additional operations it could No country wishes, nor can the people of any undertake. With increased resources, IFC could country be expected, to rely indefinitely for its indus- make much larger commitments in individual trans- trialization on decisions made primarily by foreign actions than its present resources permit and, in entrepreneurs. But, because of the shortage of local those cases where appropriate, it could provide capital, industrial experience and entrepreneurship, finance in the form of direct loans without equity the growth of industry which is entirely locally features. Such new dimensions of IFC's activities owned is likely to be slower than the balanced eco- would constitute an important new facility available nomic growth of the country calls for. It is, therefore, to our member countries for use in their develop- in the interest of the developing world to avail itself ment processes. of the advantages offered by foreign investment. There are other ways in which our assistance to The foreign investor, made to feel welcome, can be industry could be made more versatile and more a most effective instrument of economic growth, not effective. only because of the capital and technology he can During the past year IDA extended a large credit provide, but equally because of the help he can to India to finance the import of capital equipment, extend in training the labor force and developing raw materials and components which were essential local managerial and supervisory skills. Consequently, to the full utilization of existing industrial plants in we regard it as one of the important responsibilities India. For us, this is a new and special type of indus- of the Bank and IFC to do what we can to facilitate trial financing, but I believe there will be some other such investment. cases where it will be appropriate. One possible measure to that end is multilateral The development of the industrial sector is not investment insurance, the feasibility of which we merely a question of providing finance. Often the have studied in the past and to which, at the request greatest lack is entrepreneurship, someone to promote of the recent United Nations Conference on Trade 10 and Development, we shall again be turning our Nations Special Fund and on our own. We are attention. Another approach, which we have actively making plans to establish two field offices in Africa, sponsored, is the establishment of international staffed with men whose specific function will be to machinery which would be available to deal on a assist member governments on that continent in pre- voluntary basis with investment disputes between paring projects to the point where they can be pre- governments and nationals of other states. This is sented to the Bank or IDA for financing. And the proposed in the draft Convention on the Settlement partnership arrangements with FAO and Unesco of Investment Disputes on which the Executive have as one of their principal purposes an expansion Directors have submitted a report to you. If you in the flow of projects in the agricultural and the agree, the Executive Directors, assisted by a com- educational fields. But these efforts, in relation to mittee of legal experts designated by interested gov- the need, are still modest. We intend, therefore, to ernments, propose to work out a final text for explore the feasibility of other means by which the submission to governments in 1965 and I hope, Bank group may be able to help in this matter. early in 1965. This proposal, in my view, holds Another item which looms large on our agenda great promise. I recommend it and urge your unani- for the future relates to the debt service burden, mous approval of it. which now weighs heavily upon a number of our members. Over the long run, the Bank group makes II its most effective contribution in easing this burden Mr. Chairman, whatever progress we have made through IDA credits, all of which so far have been over the past year in expanding the Bank's activities repayable over a 50-year period and have carried no and adapting its policies so as more adequately to interest, but merely an annual service charge of % of meet the new needs of our membership, there re- 1%. Beyond this, as I have stated, the Bank itself has main a number of problems which pose major moved to ease the terms of its loans. Moreover, limitations on the effectiveness of our institutions. within the consortia and the consultative groups I will touch on a few examples. organized by the Bank, there has been a gratifying A problem, which has limited our activities from tendency toward some over-all improvement in the the start, is the shortage of sound, economically terms of the loans offered. This tendency has been viable projects coming forward from most of the at least partially offset, however, by a countervailing developing countries. A steady increase in the flow tendency toward a reduction in the ratio of grants to of good projects is essential for sustained expansion loans. Furthermore, a high proportion of the burden in the productive capacity of the developing nations represented by reduced interest rates and longer and is a basic necessity for the useful investment of maturities has been borne so far by only a very few the larger sums of development capital which those of the capital-exporting countries. A substantial and nations seek. broad-based improvement in the terms of develop- The Bank institutions have been putting increased ment assistance is, in my view, imperative if eco- emphasis upon providing assistance to our members nomic growth in many countries is not to be peri- in identifying promising investment opportunities and odically interrupted by debt crises. These crises are in making the necessary economic and technical troublesome in themselves but, even more trouble- studies and organizational arrangements to enable some, they have the by-product effect of delaying those opportunities to be realized. We have added and discouraging badly needed private investment. special courses in project evaluation to the cur- Meanwhile, some developing countries which have riculum of our Economic Development Institute. We relied far too much on medium- and short-term debt have undertaken more and more preinvestment find themselves in a difficult predicament; their debt studies, both as Executing Agency for the United service is now taking a very high and an increasing 11 proportion of the total capital flow that is intended countries; how to assure that a greater proportion to aid development. In most cases, it is not the of those funds is available on terms which do not aggregate volume of the debt which is the most unduly burden the economies of the recipient coun- important factor, but rather the excessive concen- try; and finally, how most effectively to apply those tration of debt service obligations in the early years. funds in a way that will permit development to go Already a few countries are faced with such a heavy forward smoothly despite fluctuations in export earn- debt service burden that they may not be able to ings. We have readily agreed to undertake these extricate themselves without special action by their studies, not only because each relates to an issue of creditors; others may not be able to avoid such diffi- continuing concern to member countries of the Bank culties unless positive affirmative measures are taken and the Fund, but also because several of them form in the near future. part of the context within which we must, during the As I said at the Geneva Trade and Development next six months, begin detailed consideration of ar- Conference, this kind of problem cannot be solved rangements for the next replenishment of IDA's simply by a debt reorganization, unless that reorgani- resources. zation is accompanied by appropriate and effective On that latter subject, all I want to say today is agreements: that, in my judgment, the provision of funds for On the part of the debtor, to take all measures developmental investment on IDA-type terms ranks possible to bring its balance of payments under high among the urgent unfinished economic business control and to meet its obligations as they fall due; on the agenda of the entire community of our mem- On the part of the creditors, to provide the ber nations. It is a subject, I can assure you, to debtor with capital on long term to meet its which we in the Bank will be giving much thought legitimate development needs; and and attention during the coming months and which, On the part of both debtor and creditors, to I trust, will command priority consideration by the avoid, in the future, the kind of short-term credit governments as well. transactions which caused the trouble in the first III place. Where all parties concerned are willing to agree Mr. Chairman, I come to the third and conclud- to appropriate disciplines of this sort in connection ing segment of my remarks. Notwithstanding the with a debt adjustment, they will find the Bank ready growth and development of the Bank family over to assist in working out the necessary new financial the past year, we cannot feel satisfied, much less regime and to help in meeting the financial require- complacent, as we appraise the effectiveness of our ments of the situation. contribution toward the acceleration of economic Then there is the all important area closely re- progress in the poorer nations. For the blunt fact lated to the debt service problem-namely, the is that, aI_though a few of the developing countries provision of adequate resources of foreign exchange are making remarkable headway, in most of them for developmental investment and particularly for the rate of growth is still disappointingly slow-and investment on IDA-type terms. This whole matter, when taken in conjunction with the rapid population as you know, was extensively discussed at the Geneva increase, still unabated, there simply has not been, Conference and in those discussions the Bank's in most of the developing world, any considerable representatives participated actively. We have been improvement in living standards. asked to continue that participation by undertaking But though visible progress to date has been a number of studies, all revolving around three basic modest at best, we should not be discouraged as issues: How best to achieve a major increase in the we look ahead. For the world now has a better flow of public and private funds to the developing understanding of development problems than ever 12 before. Further, it has the resources, if it has the more appropriate terms, more freely accessible mar- will, to move much faster toward solutions for these kets for both their primary and their processed problems. goods, better and more stable terms of trade, and Much of the underpinning is in place: A greatly assistance in other respects as well. strengthened and expanded infrastructure of physical The unanimity of approach on these propositions facilities; more effective government administrations by the developing countries dramatized what I regard with a major preoccupation in the promotion of eco- as the real significance of the Geneva Conference, nomic growth; a citizenry in many lands whose namely, that it moved the problem of economic de- capacity to produce is improving as a result of velopment from the second line of political qmcern more and better education. Above all, there is a to the forefront of the problems confronting the better understanding by the developing nations that world's leaders. It marked, I believe, the opening their economic growth depends primarily on unceas- of a new phase of the development effort, and that ing domestic effort over a period of years-that it at a time when, for the reasons I have mentioned, cannot be forced by gusty drafts of inflation nor a surge forward seems to be within the realm of hurriedly imported, in the form of external grants practical possibilities. or loans. Attention at Geneva was focussed primarily upon At the same time there has been, if I judge cor- the contributions which faster development requires rectly, much more general acceptance by the indus- from the industrialized countries in the form of trialized countries that they have a responsibility larger and more stable export markets and of more to help their less fortunate neighbors along the road capital on better terms. These requirements, unques- to a better life. And I believe it is worth noting tionably, are real. They need to be satisfied far more that this sense of responsibility is deriving less and adequately than they have been up to now. less from considerations of ideological conflict or But I suggest that the industrialized countries are special advantage-and more and more from a unlikely to meet these requirements unless the doubts realization that peace and economic health for all which now exist as to the effectiveness of their depend in large measure upon the hope or despair development assistance are resolved-and that will of those who are now the prisoners of poverty. happen only if the less developed countries them- Both the promise and the problems involved in selves demonstrate a genuine readiness to take the raising living standards throughout the developing hard domestic decisions required to accelerate eco- world were explored at length last spring at the nomic growth. I refer to such imperatives as political United Nations Conference on Trade and Develop- and economic stability, land and tax reform, appro- ment to which I have referred. That conference priate educational expansion and, above all, the was in many respects unique in the annals of inter- adoption of policies and conditions conducive to the national gatherings. For the first time the developing productive investment of capital. I refer also to the countries, some 77 strong, found it possible to need to avoid unnecessary and wasteful expenditures, submerge their divergent interests and to present a whether in connection with overstaffed bureaucracies, common front on these two key propositions: First, ill-advised investments or, as is regrettably the case that their basic concern is not so much with clashes in some countries, expenditures of sums in excess of of political ideology, but primarily and urgently with irreducible minimums for armaments. Indeed, the economic development. And second, that they can- Geneva Conference may in the long run prove hurt- not achieve a satisfactory rate of growth by their ful rather than beneficial if it serves to divert the own efforts alone; their action must be supplemented attention of the developing countries from those by action by the industrialized nations-help in the things which they must do for themselves, and in- form of capital on a more adequate scale and on duces them to concentrate instead on what the 13 developed countries can do for them. the era of Geneva, this traffic will grow, but happily In short, we will know success in the new phase our organizations are now, I believe, experienced of the development effort opened by the Geneva enough and strong enough to bear the added strain. Conference only if all parties, developed and devel- Mr. Chairman, the modernization of the less de- oping alike, act resolutely and on the basis of realistic veloped societies of the world-the object of all the cooperation between the two groups. It is precisely Bank's efforts and the goal to which our member- this kind of cooperation which the World Bank has ship rededicated itself at the Geneva Conference- been trying to encourage for the past decade and a has rightly been called the most challenging problem half. Indeed, during the formative period under of our times. The response to that challenge, by the Eugene Meyer and John McCloy and for an increas- industrialized countries, by the nations still develop- ingly active period of 14 years under Eugene Black, ing, and by the international agencies meeting here the Bank has been a principal bridge between North this week, must be-and I am optimist enough to and South, rich and poor-over which has flowed believe that it will be-affirmative, wholehearted and an increasing proportion of the serious economic bold. Certainly, it is in that spirit that we in the traffic between them. It seems inevitable that, in Bank family intend to push on with our tasks. CONCLUDING REMARKS BY MR. WOODS HIS HAS BEEN A MEMORABLE WEEK. Memorable, problems that need to be solved if mankind every- T first of all, because of the delightful hospitality where is to begin to enjoy an acceptable standard of we have enjoyed here in Tokyo-a hospitality which life. We cannot help but be sobered by the weight has convincingly demonstrated that material progress of the responsibility that is ours to develop effective and the maintenance of a lovely and graceful culture answers to these problems and to do so promptly. are in no way incompatible. The week has also been I welcome Mr. Schweitzer's comment in this gen- memorable because of the harmonious and reasoned eral regard. In the period ahead we expect to deepen tenor of the discussions-reflecting the deep, sober and broaden the areas in which the Bank and the thought given to the problems we face. On a more Fund cooperate in the interest of all of our member personal note, memorable because of the support so countries. many of you have expressed for the work of the But, above all, this has been a week of rededica- World Bank and its affiliates. You have been most tion. Rededication to our basic objective of eco- generous in your words of commendation and I nomic progress within a framework of monetary thank you for them, not only on my own behalf stability. Rededication to the path of multilateral but on behalf of my associates as well. Your con- cooperation as the best way and the right way to fidence is heartening and encouraging to all of us. achieve that objective. And rededication to the con- This has been a sobering week, too. Statements cept that each nation, developed and developing alike, made by many Governors, and particularly those has a responsibility, not only for its own citizens, from the newer nations in attendance at these Meet- but also a responsibility to do its share in the world ings, have emphasized how very urgent are the many community to improve the lot of the less fortunately 14 situated. The statement of Adam Smith remains as officers and staff upon our return to Washington. true today as it was when he wrote, "No society can I welcome this task, for it is only through continuing surely be flourishing and happy of which the far receptivity to thought-provoking new ideas and to greater part of the members are poor and miserable." new approaches to old problems that we can keep I am sure that we have reached the point of the spirit of our organizations young and vigorous. diminishing return, if indeed we have not passed it, It is only through the implementation of some of in speechmaking. Therefore, I shall make no attempt these new methods, always in the framework of to comment on the many thoughtful and lucidly sound, proven basic concepts, that we can expressed proposals and suggestions with respect to hope to meet the challenges of this Decade of Bank, IDA and IFC policies and operations which Development. various Governors have put forward for considera- Once again, my thanks to you all. I wish to each tion this week. Each of these proposals and sugges- of you and your ladies a safe and pleasant journey tions will be studied, carefully and objectively, by the home. CLOSING REMARKS OF THE CHAIRMAN, FRANCISCO AQUINO H. E HAVE SPENT A FRUITFUL WEEK discussing Before we leave, I must thank all of those who W matters of great importance for our institutions, have helped make our work a success. and now, reluctantly, we have reached the point To our friends who will be in charge of the Boards where we must take leave of our friends until next of Governors next year go my best wishes. year. To our Japanese hosts goes our deep gratitude for We may be weIJ pleased, I think, with the accom- the friendly welcome and for the countless courtesies plishments of these meetings. Governors have ex- bestowed on us during our stay in this charming land. pressed their views, often widely differing views, on a Gentlemen, the annual meetings of the Inter- broad range of subjects. It is by this frank exchange national Monetary Fund, International Bank for of opinions that we fulfill our function of forming Reconstruction and Development, International a community approach to the monetary, financial Finance Corporation and International Development and developmental responsibilities entrusted to us. Association now stand adjourned. 15 JOINT PROCEDURES COMMITTEE Chairman . ............................................. EL SALVADOR Vice Chairmen ............................................. ETHIOPIA IRAQ Reporting Member . .......................................... GREECE Other Members AUSTRALIA GERMANY, FEDERAL REPUBLIC OF SENEGAL BELGIUM INDIA SWEDEN BOLIVIA JAPAN UNITED KINGDOM CANADA NEPAL* UNITED STATES COLOMBIA PAKISTAN VENEZUELA * * FRANCE * Not a member of IFe. ** Not a member of IDA. REPORT I September 6, 1964 Mr. Chairman: The Joint Procedures Committee of the Fund, the Bank, IFC and IDA met on Sunday, September 6, 1964, and considered the matters of business which had been proposed for the 1964 Annual Meetings of the Boards of Governors. The Committee submits the following report and recommendations: 1. SCHEDULE OF MEETINGS It is recommended that the provisional schedule . . .1 be adopted, and that the Secretaries, in consultation with the Chairman, be authorized to change it as necessary. 2. CONDUCT OF MEETINGS It is recommended that the Provisions Relating to the Conduct of the Meetings, ... 2 be approved. 3. AGENDAS It is recommended that the agendas ... a be adopted by the respective Boards of Governors and that proposed additions to any agenda be submitted in writing through the Secretaries to the Joint Procedures Committee for its recommendations. 1 See page 18. 2 See page 19 . · See page 20. 3 16 4. ELECTIONS OF EXECUTIVE DIRECTORS The Committee considered the reports of the Executive Directors of ... the Bank regarding the Elections of Executive Directors . . . The Committee recommends the adoption of the draft resolution .... ' 5. OTHER REPORTS OF THE .JOINT PROCEDURES COMMITTEE The Committee also considered the other items of business on the proposed agendas of the Fund, Bank, IFC and IDA, and will make recommendations as to their disposition to the respective Boards of Governors. The report concerning the Fund will be presented at the meeting on Thursday morning. The report concerning Bank, IFC and IDA matters will be presented at the meeting on Thursday afternoon. The Committee will report later on: a. Place and Date of 1965 and 1966 Annual Meetings; and b. Election of Officers and Joint Procedures Committee for 1964-65. Approved: / s/ XENOPHON ZOLOT AS /s/ FRANCISCO AQUINO H. GREECE-Reporting Member EL SALVADOR-Chairman FUND /s/ GEORGE MAVROS GREECE-Reporting Member BANK, IFC AND IDA This Report was approved and its recommendations were adopted by the Boards of Governors on September 7, 1964. 1 Resolution No. 205 on page 29 adopted Rules for the 1964 Regular Election of Executive Directors; for the Rules, see page 41. 17 PROVISION AL SCHEDULE 1 Sunday SEPTEMBER 6 5:00 p.m. -Joint Procedures Committee Monday SEPTEMBER 7 9:30 a.m.-JOINT BOARDS -Opening Ceremonies -Address by Chairman -Joint Procedures Committee Report I -Annual Address of Managing Director, IMF -Annual Address of President, IBRD, IFC and IDA Tuesday SEPTEMBER 8 9: 30 a. m.-IMF BOARD -Annual Discussion 3:00 p.m. -Annual Discussion (continued) Wednesday SEPTEMBER 9 9: 30 a. m.-IBRD, IFC AND -Annual Discussion IDA BOARDS 3:00 p.m. -Annual Discussion (continued) Thursday SEPTEMBER 10 9:30 a.m.-IMF BOARD -Annual Discussion (concluded) -Election of Executive Directors -Joint Procedures Committee Report II 3:00 p.m.-IBRD, IFC AND -Annual Discussion (concluded) IDA BOARDS -Election of Executive Directors -Joint Procedures Committee Report III 5:30 p.m. -Joint Procedures Committee Friday SEPTEMBER 11 11: 00 a. m.-JOINT BOARDS -Joint Procedures Committee Report IV -Comments by Heads of Organizations -Concluding Remarks -Adjournment 1 The final schedule on page ii is the same as this provisional schedule. 18 PROVISIONS RELATING TO THE CONDUCT OF THE MEETINGS ADMISSION 1. Sessions of the Boards of Governors of the Fund, the Bank, IFC and IDA, including joint sessions, shall be open to accredited observers, the press and guests. 2. Meetings of the Joint Procedures Committee shall be open only to Governors who are members of the Committee and their advisers. 3. Sessions of the Boards of Governors and meetings of the Joint Procedures Committee shall be open to the Secretariat and technical staff as may be necessary. PROCEDURE AND RECORDS 4. The Chairman of the Boards of Governors will establish the order of speaking at each session. Governors signifying a desire to speak will generally be recognized in the order in which they asked to speak. 5. With the consent of the Chairman, a Governor may extend his statement in the record following advance submission of the text to the Secretaries. 6. The Secretaries will have prepared verbatim transcripts of the proceedings of the Boards of Governors and the Joint Procedures Committee. The transcripts of proceedings of the Joint Procedures Committee will be confidential and available only to the Chairman, the Managing Director of the Fund, the President of the Bank and its Affiliates, and the Secretaries. 7. Reports of the Joint Procedures Committee shall be signed by the Committee Chairman and the respective Reporting Members. PUBLIC INFORMATION 8. The Chairman of the Boards of Governors, the Managing Director of the Fund, and the Presi- dent of the Bank and its Affiliates are authorized to communicate to the press such information concerning the proceedings of the Annual Meetings as they may deem suitable. 19 BANK AGENDA 1. 1963-64 Annual Report 2. Financial Statements and Annual Audit 3. Administrative Budget 4. Allocation of Net Income 5. Application for Membership of Malawi 6. Applications for Increases in Subscriptions: (a) Ghana (b) Iraq (c) Malaysia (d) Sudan 7. Settlement of Investment Disputes 8. Loans to IFC 9. Regular Election of Executive Directors to. Place and Date of 1965 and 1966 Annual Meeting 11. Officers and Procedures Committee for 1964-65 IDA AGENDA 1. 1963-64 Annual Report 2. Financial Statements and Annual Audit 3. Administrative Budget 4. Applications for Membership (a) Malawi (b) Trinidad and Tobago 20 JOINT PROCEDURES COMMITTEE REPORT IIF September 6, 1964 Mr. Chairman: At the meeting of the Joint Procedures Committee held on September 6, 1964, the items of business on the agendas of the Boards of Governors of the Bank, IFC and IDA were considered. A. The Committee submits the following report and recommendations on Bank and IDA business: 1. 1964 ANNUAL REPORT The Committee noted that provision has been made for discussion of the 1964 Annual Report of the Bank and IDA at this Meeting. 2. FINANCIAL STATEMENTS, ANNUAL AUDITS AND ADMINISTRATIVE BUDGETS The Financial Statements, Auditors' Reports and Administrative Budgets contained in the 1964 Bank and IDA Annual Report, together with reports dated August 17, 1964 were considered. It is recommended that the Boards of Governors of the Bank and IDA adopt the draft resolu- tions ... 2 3. ALLOCATION OF NET INCOME OF THE BANK AND STATEMENT OF POLICY The report of the Executive Directors of the Bank on the Allocation of Net Income and State- ment of Policy ... :1 was considered. It is recommended that the Board of Governors of the Bank adopt the draft resolution ... 4 4. APPLICATIONS FOR MEMBERSHIP IN THE BANK AND IDA The Committee considered the reports of the Executive Directors of the Bank and IDA on the applications of Malawi for membership in the Bank and IDA and of Trinidad and Tobago for membership in IDA. It is recommended that the Boards of Governors of the Bank and IDA adopt the draft resolu- tions .. ." 1 Report II is related to business of the Fund. 2 See pages 30 and 39. 3 See page 46. 4 See page 30. 5 See pages 30 and 39. 21 5. APPLICATIONS FOR INCREASES IN SUBSCRIPTION TO CAPITAL STOCK OF THE BANK The Committee considered the reports of the Executive Directors of the Bank concerning the applications of Ghana, Iraq, Malaysia and Sudan for increases in their subscriptions to the capital stock of the Bank. It is recommended that the Board of Governors of the Bank adopt the draft resolutions ... 1 6. SETTLEMENT OF INVESTMENT DISPUTES The report of the Executive Directors of the Bank dated August 6, 1964 on the Settlement of Investment Disputes was considered ... 2 It is recommended that the Board of Governors of the Bank adopt the draft resolution ... a 7. BANK LOANS TO IFC The joint report of the Executive Directors of the Bank and the Board of Directors of IFC dated August 6, 1964 on Bank Loans to IFC and the letter from the Chairman to the Board of Governors of the Bank dated August 7, 1964, transmitting said joint report, were considered ... 4 It is recommended that the Board of Governors of the Bank adopt the draft resolution attached to said letter. 5 * * * * B. The Committee submits the following report and recommendations on IFC business: H Approved: /s/ FRANCISCO AQUINO H. / s/ GEORGE MA VROS EL SALVADOR-Chairman GREECE-Reporting Member This Report was approved and its recommendations were adopted by the Boards of Governors on September 10,1964. With reference to Item 6 of the Report, the Governor for Bolivia stated that he wished the record to show that he was against the resolution on behalf of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nica- ragua, Panama, Paraguay, Peru, Uruguay, Venezuela, and the Philippines. The Governor for Iraq made the same statement on behalf of Iraq. 1 See pages 32-34. 2 See page 49. 3 See page 34. · See page 51. 5 See page 29. 6 The part of this Report dealing with IFC business appears in the IFC "Proceedings" for 1964. 22 JOINT PROCEDURES COMMITTEE REPORT IV September 10,1964 Mr. Chairman: The Joint Procedures Committee met on September 10 and submits the following report: 1. OFFICERS AND JOINT PROCEDURES COMMITTEE The Committee recommends that the Governor for Ethiopia be elected Chairman, and that the Governors for Brazil and Norway be elected Vice Chairmen, of the Boards of Governors to hold office until the close of the next Annual Meetings. It is further recommended that a Joint Procedures Committee of the Bank, IFC, IDA and the Fund be established to be available after the termination of these Meetings, and until the close of the next Annual Meetings, for consultation at the discretion of the Chairman normally by correspondence and, if occasion requires, by convening; and that this Committee shall consist of the Governors for the following members: Brazil, Ethiopia, France, Federal Republic of Germany, India, Ivory Coast, Korea, Kuwait, Liberia, Libya, Mauritania, Mexico, Morocco, New Zealand, Norway, Panama, Thailand, United Kingdom, United States, and Yugoslavia. It is recommended that the Chairman of the Joint Procedures Committee shall be the Governor for Ethiopia and the Vice Chairmen shall be the Governors for Brazil and Norway and that the Governor for Korea shall serve as Reporting Member. 2. PLACE AND DATE OF THE 1965 AND 1966 ANNUAL MEETINGS The Committee recommends that the 1965 and 1966 Annual Meetings be held in Washington, D.C., in late September. Approved: /s/ FRANCISCO AQUINO H. /s/ XENOPHON ZOLOTAS EL SALVADOR-Chairman GREECE-Reporting Member FUND /s/ GEORGE MAVROS GREECE-Reporting Member BANK, IFC, AND IDA This Report was approved and its recommendations were adopted by the Boards of Governors on September 11, 1964. 23 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK BETWEEN 1963 AND 1964 ANNUAL MEETINGS RESOLUTION NO. 194 INCREASE OF $1,000 MILLION IN AUTHORIZED CAPITAL STOCK WHEREAS the original authorized capital stock of the Bank amounted to $10,000 million in terms of United States dollars of the weight and fineness in effect on July 1, 1944; WHEREAS the Board of Governors, by Resolutions Nos. 128 and 131, increased the authorized capital stock to $21,000 million; WHEREAS it is desirable further to increase the authorized capital stock of the Bank by $1,000 million in order to provide for the admission of new members and for future increases in members' subscriptions; WHEREAS the Board of Governors expects that in the circumstances members will not wish to avail themselves of their right to subscribe a proportionate share of such increase pursuant to Article II, Section 3 ( c) of the Articles of Agreement of the Bank; Now THEREFORE the Board of Governors hereby resolve as follows: 1. The authorized capital stock of the Bank shall be increased by $1,000 million in terms of United States dollars of the weight and fineness in effect on July 1, 1944, divided into 10,000 shares having a par value of $100,000 each. 2. In the absence of notice to the contrary from any member on or before December 31, 1963, such member will be deemed to have waived its right to subscribe its propor- tionate share of such increase. (Adopted December 31,1963) RESOLUTION NO. 195 INCREASE IN SUBSCRIPTION OF ECUADOR TO CAPITAL STOCK OF BANK RESOLVED: THAT, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Ecuador to 43 shares of the capital stock of the Bank in addition to the 128 shares of said capital stock already subscribed by Ecuador, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Ecuador's subscription shall be received by the Bank on or before July 31, 1964, pro- vided, however, that the Executive Directors may extend this period if they consider that extraordinary circumstances warrant such extension; 24 ( c ) That before such subscription shall be accepted by the Bank, (i) Ecuador shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Ecuador shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2 % in gold or United States dollars, and 18 % in currency of Ecuador; and (d) With respect to the subscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in Ecuador's currency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscrip- tions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted January 27,1964) RESOLUTION NO. 196 INCREASE IN SUBSCRIPTION OF ISRAEL TO CAPITAL STOCK OF BANK RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Israel to 333 shares of the capital stock of the Bank in addition to the 333 shares of said capital stock already subscribed by Israel, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Israel's subscription shall be received by the Bank on or before July 31, 1964, pro- vided, however, that the Executive Directors may extend this period if they consider that extraordinary circumstances warrant such extension; ( c) That before such subscription shall be accepted by the Bank, (i) Israel shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Israel shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2 % in gold or United States dollars, and 18 % in currency of Israel; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Israel's currency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscrip- tions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted January 27,1964) RESOLUTION NO. 197 INCREASE IN SUBSCRIPTION OF ITALY TO CAPITAL STOCK OF BANK RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Italy to 25 3,060 shares of the capital stock of the Bank in addition to the 3,600 shares of said capital stock already subscribed by Italy, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Italy's subscription shall be received by the Bank on or before August 20, 1964, pro- vided, however, that the Executive Directors may extend this period if they consider that extraordinary circumstances warrant such extension; (c) That before such subscription shall be accepted by the Bank, (i) Italy shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Italy shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2 % in gold or United States dollars, and 18 % in currency of Italy; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Italy's currency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscrip- tions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted February 20,1964) RESOLUTION NO. 198 INCREASE IN SUBSCRIPTION OF COSTA RICA TO CAPITAL STOCK OF BANK RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Costa Rica to 27 shares of the capital stock of the Bank in addition to the 80 shares of said capital stock already subscribed by Costa Rica, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Costa Rica's subscription shall be received by the Bank on or before September 16, 1964, provided, however, that the Executive Directors may extend this period if they consider that extraordinary circumstances warrant such extension; ( c ) That before such subscription shall be accepted by the Bank, (i) Costa Rica shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Costa Rica shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2 % in gold or United States dollars, and 18 % in currency of Costa Rica; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Costa Rica's cur- rency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted March 16, 1964) 26 RESOLUTION NO. 199 INCREASE IN SUBSCRIPTION OF DOMINICAN REPUBLIC TO CAPITAL STOCK OF BANK RESOLVED: THAT, pursuant to Article II, Section 3(b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Dominican Republic to 53 shares of the capital stock of the Bank in addition to the 80 shares of said capital stock already subscribed by Dominican Republic, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Dominican Republic's subscription shall be received by the Bank on or before Septem- ber 16, 1964, provided, however, that the Executive Directors may extend this period if they consider that extraordinary circumstances warrant such extension; (c) That before such subscription shall be accepted by the Bank, (i) Dominican Republic shall have taken all action necessary to authorize such subscrip- tion and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Dominican Republic shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2% in gold or United States dollars, and 18% in currency of Dominican Republic; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Dominican Repub- lic's currency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted March 16, 1964) RESOLUTION NO. 200 AGREEMENT WITH THE UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CUL TURAL ORGANIZATION (UNESCO) RESOLVED: THA T the agreement in the form of the Memorandum of Understanding between the United Nations Educational, Scientific and Cultural Organization (Unesco) and the Bank and the Inter- national Development Association attached to the Report of the Executive Directors to the Boards of Governors, dated March 19, 1964, is hereby approved. (Adopted April 30, 1964) RESOLUTION NO. 201 AGREEMENT WITH THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (FAO) RESOLVED: THA T the agreement in the form of the Memorandum of Understanding between the Food and Agriculture Organization of the United Nations (FAO) and the Bank and the International 27 Development Association attached to the Report of the Executive Directors to the Boards of Governors, dated March 19, 1964, is hereby approved. (Adopted April 30, 1964) RESOLUTION NO. 202 NUMBER OF ELECTED EXECUTIVE DIRECTORS RESOLVED: TRA T at the Regular Election of Executive Directors to be held during the 1964 Annual Meeting of the Board of Governors, there shall be elected 15 Executive Directors. (Adopted May 18,1964) RESOLUTION NO. 203 INCREASE IN SUBSCRIPTION OF PANAMA TO CAPITAL STOCK OF BANK RESOLVED: TRA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Panama to 86 shares of the capital stock of the Bank in addition to the 4 shares of said capital stock already subscribed by Panama, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Panama's subscription shall be received by the Bank on or before November 25, 1964, or by such later date as the Executive Directors may determine; ( c) That before such subscription shall be accepted by the Bank, (i) Panama shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Panama shall have paid to the Bank on account of the subscription price of one-half of such additional shares 2% in gold or United States dollars, and 18% in currency of Panama; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18% portion payable in Panama's currency shall be left uncalled on the conditions set forth in Resolution No. 129 governing subscrip- tions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted May 25,1964) RESOLUTION NO. 204 1964 ANNUAL MEETING-GOVERNORS' ALLOWANCES RESOLVED: Governors and Alternates attending the 1964 Annual Meeting of the Board of Governors in Tokyo shall receive their actual transport expenses to and from Tokyo and $75.00 for each night which attendance at such meeting requires them to spend away from their normal place of residence, 28 this amount being reduced to $15.00 for each night when accommodation is included in the price of transportation. (Adopted August 14,1964) RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK AT THE 1964 ANNUAL MEETING RESOLUTION NO. 205 1964 ELECTION OF EXECUTIVE DIRECTORS RESOLVED: (a) THAT the proposed RULES FOR THE 1964 REGULAR ELECTION OF EXECUTIVE DIRECTORS' are hereby adopted; and (b) THAT a Regular Election of Executive Directors shall take place at the Annual Meeting of the Board of Governors in 1966. (Adopted September 7, 1964) RESOLUTION NO. 206 LOANS TO INTERNATIONAL FINANCE CORPORATION WHEREAS the Executive Directors have communicated to the Chairman of the Board of Governors a proposal to introduce modifications in the Articles of Agreement, as set forth in their Report dated August 6, 1964 entitled "Bank Loans to IFC"; and WHEREAS the Chairman of the Board of Governors has brought the proposal before the Board; Now, THEREFORE, it is hereby resolved as follows: (a) The Board of Governors hereby approves the Report of the Executive Directors dated August 6, 1964 entitled "Bank Loans to IFC". (b) The Board of Governors shall vote by mail or telegram on the proposed Resolution set forth in Annex A to the said Report of the Executive Directors dated August 6, 1964. (c) The proposed Resolution shall be adopted and the proposed amendment approved by the Board of Governors when it shall have received the replies from a majority of the Governors exercising two-thirds of the total voting power, and the favorable vote of Governors exercising a majority of the votes cast. (d) Upon the approval of the proposed amendment by the Board of Governors the Bank shall ask all members by circular letter or telegram whether they accept the proposed amendment. (e) Notwithstanding paragraph (d) of this Resolution, any member may notify the Bank that it accepts the proposed amendment at any time after the Governor appointed by such member has voted in favor of the proposed Resolution and prior to the receipt of the circular letter or telegram referred to 'in paragraph (d) of this Resolution. 1 See page 41. 29 (f) The proposed amendment shall enter into force for all members on the date when the Bank shall have certified by formal communication addressed to all members that the proposed amendment has been accepted by three-fifths of the members, having four-fifths of the total voting power, and the formal communication shall so specify. (Adopted September 10,1964) RFSOLUTION NO. 207 FINANCIAL STATEMENTS, AUDITORS' REPORT AND ADMINISTRATIVE BUDGET RESOLVED: THA T the Board of Governors of the Bank consider the Financial Statements, Auditors' Report and Administrative Budget, included in the 1963-64 Annual Report, as fulfilling the requirements of Article V, Section 13, of the Articles of Agreement and of Section 19 of the By-Laws of the Bank. (Adopted September 10,1964) RFSOLUTION NO. 208 ALLOCATION OF NET INCOME AND STATEMENT OF POLICY RESOLVED: 1. THAT the Report of the Executive Directors dated July 30, 1964 on "Allocation of Net Income and Statement of Policy" is hereby approved; 2. THAT the allocation of $47,455,851 of the net income of the Bank for the fiscal year ended June 30, 1964 to the Supplemental Reserve against Losses on Loans and Guarantees is hereby noted with approval; 3. THAT the Bank transfer to the International Development Association by way of grant $50,000,000 being the remainder of the net income of the Bank for the fiscal year ended June 30, 1964, such transfer to be made at the time and in the manner to be decided by the Executive Directors; and 4. THA T the following Statement of Policy is hereby approved: "Any transfers to the Association will be made only out of net income which (i) accrued during the fiscal year in respect of which the transfer is made and (ii) is not needed for allocation to reserves or otherwise required to be retained in the Bank's business and, accordingly, could prudently be distributed as dividends." (Adopted September 10,1964) RFSOLUTION NO. 209 MEMBERSHIP OF MALAWI WHEREAS the Government of Malawi has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Bank; and 30 WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after consultation with representatives of the Government of Malawi, have made recommendations to the Board of Governors regarding this application; Now, THEREFORE, the Board of Governors hereby RESOLVES: THA T the terms and conditions upon which Malawi shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) "Bank" means International Bank for Reconstruction and Development. (b) "Articles" means the Articles of Agreement of the Bank. (c) "Dollars" or "$" means United States dollars of the weight and fineness in effect on July 1,1944. (d) "Subscription" means the capital stock of the Bank subscribed to by a member. (e) "Member" means member of the Bank. 2. Subscription: By accepting membership in the Bank, Malawi shall subscribe to 150 shares of the capital stock of the Bank at the par value of $100,000 per share. 3. Membership in the Fund: Before accepting membership in the Bank, Malawi shall accept membership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Malawi shall pay to the Bank on account of the subscription price of one-half of such shares: (i) Gold or United States dollars equal to 2% thereof; and (ii) An amount in its own currency which, at the appropriate prevailing exchange rate, shall be equal to 18% thereof. (b) With respect to the subscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in the currency of the member shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. 5. Representation and Information: Before accepting membership in the Bank, Malawi shall represent to the Bank that it has taken all action necessary to sign and deposit the instrument of acceptance and sign the Articles as contemplated by paragraph 6 (d) and (e) of this resolution and Malawi shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: Malawi shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Malawi shall have complied with the following requirements: (a) Become a member of the International Monetary Fund; (b) Made the payments called for by paragraph 4 of this resolution; ( c ) Furnished the representation, and such information as may have been requested, pur- suant to paragraph 5 of this resolution; 31 (d) Deposited with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and con- ditions prescribed in this resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this resolution; (e) Signed the original copy of the Articles held in the Archives of the Government of the United States of America. 7. Limitation on Period for Acceptance of Membership: Malawi may accept membership in the Bank pursuant to this resolution until March 15, 1965, or by such later date as the Executive Directors may determine. (Adopted September 10,1964) RESOLUTION NO. 210 INCREASE IN SUBSCRIPTION OF GHANA TO CAPITAL STOCK OF BANK RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Ghana to 267 shares of the capital stock of the Bank in addition to the 467 shares of said capital stock already subscribed by Ghana, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Ghana's subscription shall be received by the Bank on or before March 15, 1965, or by such later dates as the Executive Directors may determine; (c) That before such subscription shall be accepted by the Bank, (i) Ghana shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Ghana shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2% in gold or United States dollars; and 18% in currency of Ghana; and (d) With respect to the subscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in Ghana's currency shall be left uncalled on the conditions set forth in Resolution No. 129 as governing sub- scriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted September 10,1964) RESOLUTION NO. 211 INCREASE IN SUBSCRIPTION OF IRAQ TO CAPITAL STOCK OF BANK RESOLVED: THAT, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Iraq to 32 400 shares of the capital stock of the Bank in addition to the 150 shares of said capital stock already subscribed by Iraq, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Iraq's subscription shall be received by the Bank on or before March 15, 1965, or by such later date as the Executive Directors may determine; ( c) That before such subscription shall be accepted by the Bank, (i) Iraq shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Iraq shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2% in gold or United States dollars and 18 % in currency of Iraq; and ( d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Iraq's currency shall be left uncalled on the conditions set forth in Resolution No. 129 as governing sub- scriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted September 10,1964) RESOLUTION NO. 212 INCREASE IN SUBSCRIPTION OF MALAYSIA TO CAPITAL STOCK OF BANK RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Malaysia to 833 shares of the capital stock of the Bank in addition to the 500 shares of said capital stock already subscribed by Malaysia, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944: (b) That Malaysia's subscription shall be received by the Bank on or before March 15, 1965, or by such later date as the Executive Directors may determine; (c) That before such subscription shall be accepted by the Bank, (i) Malaysia shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Malaysia shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2% in gold or United States dollars; and 18 % in currency of Malaysia; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Malaysia's currency shall be left uncalled on the conditions set forth in Resolution No. 129 as governing sub- scriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted September 10,1964) 33 RESOLUTION NO. 213 INCREASE IN SUBSCRIPTION OF SUDAN TO CAPITAL STOCK OF BANK RESOLVED: THAT, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Sudan to 400 shares of the capital stock of the Bank in addition to the 200 shares of said capital stock already subscribed by Sudan, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Sudan's subscription shall be received by the Bank on or before March 15, 1965, or by such later date as the Executive Directors may determine; (c) That before such subscription shall be accepted by the Bank, (i) Sudan shall have taken all action necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank shall request, and (ii) Sudan shall have paid to the Bank on account of the subscription price of one-half of such additional shares, 2% in gold or United States dollars; and 18% in currency of Sudan; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in Sudan's currency shall be left uncalled on the conditions set forth in Resolution No. 129 as governing sub- scriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted September 10,1964) RESOLUTION NO. 214 SETTLEMENT OF INVESTMENT DISPUTES RESOLVED: (a) The report of the Executive Directors on "Settlement of Investment Disputes," dated August 6, 1964, is hereby approved. (b) The Executive Directors are requested to formulate a convention establishing facilities and procedures which would be available on a voluntary basis for the settlement of investment disputes between contracting States and Nationals of other contracting States through con- ciliation and arbitration. (c) In formulating such a convention, the Executive Directors shall take into account the views of member governments and shall keep in mind the desirability of arriving at a text which could be accepted by the largest possible number of governments. (d) The Executive Directors shall submit the text of such a convention to member governments with such recommendations as they shall deem appropriate. (Adopted September 10,1964) RESOLUTION NO. 215 ApPRECIATION RESOLVED: THAT the Governors of the International Monetary Fund, the International Bank for Recon- struction and Development, the International Finance Corporation, and the International Develop- 34 ment Association express their deepest appreciation to the Government and to the people of Japan for their unstinting and gracious hospitality; and THA T they express particular appreciation to the Governor and Alternate Governors for Japan and their associates for their contributions to the outstanding success of the 1964 Annual Meetings. (Adopted September 11,1964 on recommendation of Joint Procedures Committee as presented by the Reporting Member) RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA BETWEEN 1963 AND 1964 ANNUAL MEETINGS RESOLUTION NO. 44 MEMBERSHIP OF THE KINGDOM OF BELGIUM WHEREAS, the Government of the Kingdom of Belgium has applied for admission to membership in the International Development Association in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Association (hereinafter called "Articles"); and WHEREAS, pursuant to Section 9 of the By-Laws of the Association, the Executive Directors, after consultation with representatives of the Government of Belgium, have made recommendations to the Board of Governors regarding the application of Belgium for admission to membership in the Association; Now, THEREFORE, the Board of Governors hereby RESOLVES: THA T the terms and conditions upon which Belgium shall be admitted to membership in the Association shall be as follows: (a) The terms and conditions of the membership of Belgium in the Association other than those specifically provided for in this Resolution shall be those set forth in the Articles with respect to the membership of original members listed in Part I of Schedule A thereof (including, but not by way of limitation, the terms and conditions relating to subscriptions, usability of currencies, and voting rights) . (b) Upon accepting membership in the Association, Belgium shall initially subscribe funds in the amount of $8,250,000 expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960. (c) Payment of the subscription shall be made in three equal instalments on or before Novem- ber 8,1965, November 8,1966 and November 8,1967. (d) Belgium may accept membership in the Association pursuant to this Resolution until March 1, 1964, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which it may accept membership pursuant to this Resolution, the Executive Directors may extend such period. (Adopted March 1, 1964) 35 RESOLUTION NO. 4S MEMBERSHIP OF THE GRAND DUCHY OF LUXEMBOURG WHEREAS, the Government of the Grand Duchy of Luxembourg has applied for admission to mem- bership in the International Development Association in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Association (hereinafter called "Articles"); and WHEREAS, pursuant to Section 9 of the By-Laws of the Association, the Executive Directors, after consultation with representatives of the Government of Luxembourg, have made recommenda- tions to the Board of Governors regarding the application of Luxembourg for admission to member- ship in the Association; Now, THEREFORE, the Board of Governors hereby RESOLVES: THA T the terms and conditions upon which Luxembourg shall be admitted to membership in the Association shall be as follows: (a) The terms and conditions of the membership of Luxembourg in the Association other than those specifically provided for in this Resolution shall be those set forth in the Articles with respect to the membership of original members listed in Part I of Schedule A thereof (includ- ing, but not by way of limitation, the terms and conditions relating to subscriptions, usability of currencies, and voting rights). (b) Upon accepting membership in the Association, Luxembourg shall initially subscribe funds in the amount of $375,000 expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960. (c) Payment of the subscription shall be made in three equal instalments on or before Novem- ber 8,1965, November 8,1966 and November 8,1967. (d) Luxembourg may accept membership in the Association pursuant to this Resolution until March 1, 1964, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which it may accept membership pursuant to this Resolution, the Executive Directors may extend such period. (Adopted March 1,1964) RESOLUTION NO. 46 AGREEMENT WITH THE UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION (UNESCO) RESOLVED: THAT the agreement in the form of the Memorandum of Understanding between the United Nations Educational, Scientific and Cultural Organization (Unesco) and the International Bank 36 for Reconstruction and Development and the Association attached to the Report of the Executive Directors to the Boards of Governors, dated March 19, 1964, is hereby approved. (Adopted AprU30, 1964) RESOLUTION NO. 47 AGREEMENT WITH THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (FAO) RESOLVED: THA T the agreement in the form of the Memorandum of Understanding between the Food and Agriculture Organization of the United Nations (FAO) and the International Bank for Reconstruc- tion and Development and the Association attached to the Report of the Executive Directors to the Boards of Governors, dated March 19, 1964, is hereby approved. (Adopted AprU30, 1964) RESOLUTION NO. 48 ADDITIONS TO RESOURCES WHEREAS, pursuant to Resolution No. 28 of the Board of Governors adopted on September 18, 1962, the Executive Directors of the International Development Association have considered its prospective financial requirements and have reported to the Board of Governors their conclusions that: (a) the existing freely usable resources of the Association will be wholly committed in the near future; (b) if the steady progress of development is not to be seriously impeded, a substantial amount of the future net capital inflow into the less developed countries must be made available on terms which would place little or no burden on their balance of payments; and (c) in order to meet part of the need for assistance of this character, it is desirable that the Association be provided with additional resources which should be available for new com- mitments for the period up to at least June 30, 1966; and WHEREAS, the governments of the countries listed in paragraph (b) below have expressed their intention, subject to any necessary legislative authorization, to contribute additional resources to the Association equivalent to $741,375,000 in amounts as described below, which together with the equivalent of $8,625,000 which Belgium and Luxembourg have expressed their intention to con- tribute as initial subscriptions, would mean a total of the equivalent of $750 million in additional freely usable resources available to the Association to accomplish the foregoing objective. 37 Now, THEREFORE, the Board of Governors: RESOLVES THAT: (a) The Report of the Executive Directors, dated September 9, 1963, is accepted by the Board of Governors, and its conclusions adopted. (b) The Association is authorized to accept additional contributions, as follows: Country ($ U.S.*) Country ($ U.S.*) Australia 19,800,000 Japan ..................... 41,250,000 Austria 5,040,000 Luxembourg ................ 375,000 Belgium 8,250,000 Netherlands ................. 16,500,000 Canada 41,700,000 Norway .................... 6,600,000 Denmark .................. . 7,500,000 South Africa ................ 3,990,000 Finland ................... . 2,298,000 Sweden .................... 15,000,000 France .................... . 61,872,000 United Kingdom ............. 96,600,000 Germany .................. . 72,600,000 United States ................ 312,000,000 Italy ..................... . 30,000,000 * In terms of United States dollars of the weight and fineness in effect on January 1,1960. (c) Such contributions shall not be regarded as additional subscriptions and, in accordance with the provisions of Article VI, Section 3 ( a) of the Articles of Agreement of the Associa- tion shall not carry voting rights. (d) Payment of such contributions shall be made in freely convertible currencies in three equal instalments on or before November 8, 1965, November 8, 1966, and November 8, 1967. (e) The rights and obligations of the Association and the contributing members in regard to such contributions shall be the same (except as otherwise provided in this Resolution) as those which govern the ninety percent portion of the initial subscriptions of original members payable under Article II, Section 2(d) of the Articles of Agreement by members listed in Part I of Schedule A of the Articles. (f) None of such contributions shall become payable unless the following condition has been satisfied: At least 12 members whose contributions, as listed above, aggregate not less than $600 million shall each have given the Association, on or before March 1, 1964, or such later date as the Executive Directors may determine, formal notification that it will make the con- tribution authorized hereunder for such member in accordance with the terms of this Resolu- tion; provided that, for the purpose of determining whether the conditions set forth in this paragraph with respect to number of members and amount of contributions have been satis- fied, account shall be taken of the subscriptions of Belgium and Luxembourg upon their acceptance of membership in the Association. (g) In the event any member listed above ceases to be a member or the Association permanently suspends its operations, the additional resources contributed or to be contributed pursuant to the agreements referred to in (f) above shall be treated for the purposes of Article VII, Sections 4 and 5, of the Articles of Agreement in the same manner as though they were subscriptions, and disposition thereof shall be made in the manner provided in those sections for the disposition of subscriptions as therein defined. (Adopted June 29,1964) 38 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA AT mE 1964 ANNUAL MEETING RESOLUTION NO. 49 FINANCIAL STATEMENTS, AUDITORS' REPORT AND ADMINISTRATIVE BUDGET RESOLVED: THA T the Board of Governors of the Association consider the Financial Statements, Auditors' Report and Administrative Budget, included in the 1963-64 Annual Report, as fulfilling the require- ments of Article VI, Section 11, of the Articles of Agreement and of Section 8 of the By-Laws of the Association. (Adopted September 10,1964) RESOLUTION NO. 50 MEMBERSHIP OF MALAWI WHEREAS the Government of Malawi has applied for admission to membership in the International Development Association (hereinafter called "Association") in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Association (hereinafter called "Articles"); and WHEREAS, pursuant to Section 9 of the By-Laws of the Association, the Executive Directors, after consultation with representatives of the Government of Malawi, have made recommendations to the Board of Governors regarding the application of Malawi for admission to membership in the Association; Now, THEREFORE, the Board of Governors hereby RESOLVES: THA T the terms and conditions upon which Malawi shall be admitted to membership in the Association shall be as follows: (a) The terms and conditions of the membership of Malawi in the Association other than those specifically provided for in this resolution shall be those set forth in the Articles with respect to the membership of original members listed in Part II of Schedule A thereof (including, but not by way of limitation, the terms and conditions relating to subscriptions, payments on subscriptions, usability of currencies, and voting rights). (b) Upon accepting membership in the Association, Malawi shall subscribe funds in the amount of $760,000 expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960. (c) Before accepting membership in the Association, Malawi shall make all payments on its initial subscription which would have been payable on or before the date of acceptance had it become a member of the Association as an original member listed in Part II of Schedule A of the Articles. (d) Malawi may accept membership in the Association pursuant to this resolution until March 15, 1965, or by such later date as the Executive Directors may determine. (Adopted September 10,1964) 39 RESOLUTION NO. 51 MEMBERSHIP OF TRINIDAD AND TOBAGO WHEREAS, the Government of Trinidad and Tobago has applied for admission to membership in the International Development Association (hereinafter called "Association") in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Association (hereinafter called "Articles"); and WHEREAS, pursuant to Section 9 of the By-Laws of the Association, the Executive Directors, after consultation with representatives of the Government of Trinidad and Tobago, have made recommendations to the Board of Governors regarding the application of Trinidad and Tobago for admission to membership in the Association; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Trinidad and Tobago shall be admitted to member- ship in the Association shall be as follows: (a) The terms and conditions of the membership of Trinidad and Tobago in the Association other than those specifically provided for in this Resolution shall be those set forth in the Articles with respect to the membership of original members listed in Part II of Schedule A thereof (including, but not by way of limitation, the terms and conditions relating to sub- scriptions, payments on subscriptions, usability of currencies, and voting rights) . (b) Upon accepting membership in the Association, Trinidad and Tobago shall subscribe funds in the amount of $1,350,000 expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960. (c) Before accepting membership in the Association, Trinidad and Tobago shall make all pay- ments on its initial subscription which would have been payable on or before the date of acceptance had it become a member of the Association as an original member listed in Part II of Schedule A of the Articles. (d) Trinidad and Tobago may accept membership in the Association pursuant to this Resolu- tion until March 15, 1965, or by such later date as the Executive Directors may determine. (Adopted September 10,1964) RESOLUTION NO. 52 ApPRECIATION RESOLVED: THAT the Governors of the International Monetary Fund, the International Bank for Recon- struction and Development, the International Finance Corporation, and the International Develop- ment Association express their deepest appreciation to the Government and to the people of Japan for their unstinting and gracious hospitality; and THAT they express particular appreciation to the Governor and Alternate Governors for Japan and their associates for their contributions to the outstanding success of the 1964 Annual Meetings. (A dopted September 11, 1964 on recommendation of Joint Procedures Committee as presented by the Reporting Member) 40 RULES FOR THE 1964 REGULAR ELECTION OF EXECUTIVE DIRECTORS 1 1. DEFINITIONS: In these Rules, unless the context shall otherwise require, (a) "Articles" means the Articles of Agreement of the Bank. (b) "Board" means the Board of Governors of the Bank. ( c) "Chairman" means the Chairman of the Board or a Vice Chairman acting as Chairman. (d) "Governor" includes the Alternate Governor or any temporary Alternate Governor, when acting for the Governor. (e) "Secretary" means the Secretary or any acting Secretary of the Bank. (f) "Election" means the 1964 Regular Election of Executive Directors. 2. DATE OF ELECTION: The election shall be held during the 1964 Annual Meeting of the Board at a time to be fixed by the Board. 3. BASIC RULES-SCHEDULE B: Subject to the adjustments set forth herein, the provisions of Schedule B of the Articles shall apply to the conduct of the election, except that "five percent" shall be substituted for "fourteen percent" in Paragraphs 2 and 5 and "ten percent" shall be substituted for "fifteen percent" in Paragraphs 3, 4 and 5 thereof. 4. EXECUTIVE DIRECTORS TO BE ELECTED: Fifteen Executive Directors shall be elected. 5. NOMINATIONS: (a) Any person nominated by one or more Governors entitled to vote in the election shall be eligible for election as Executive Director. (b) Each nomination shall be made on a Nomination Form furnished by the Secretary, signed by the Governor or Governors making the nomination, and deposited with the Secretary. (c) A Governor may nominate only one person. (d) Nominations may be made until 12 o'clock noon on the day preceding the election. The Secretary shall post and distribute a list of the persons nominated. 1 Adopted by Resolution No. 205; see page 29. 41 6. SUPERVISION OF THE ELECTION: The Chairman shall appoint such tellers and other assistants and take such other action as he deems necessary for the conduct of the election. 7. BALLOTS: One ballot form shall be furnished before a ballot is taken to each Governor entitled to vote. On any particular ballot only ballot forms distributed for that ballot shall be counted. 8. BALLOTING: Each ballot shall be taken as follows: (a) The roll of members whose Governors are entitled to vote shall be called in alphabetical order. After a member's name is called the Governor for such member shall deposit his signed ballot in the ballot box. (b) When a ballot shall have been completed, the Chairman shall cause the ballots to be counted and shall announce the names of the persons elected before the end of the session at which the election is held. If a succeeding ballot is necessary, the Chairman shall announce the names of the nominees to be voted on and the members whose Governors are eligible to vote. ( c ) If the tellers shall be of the opinion that any particular ballot is not properly executed, they shall, if possible, afford the Governor concerned an opportunity to correct it before tallying the results; and such ballot, if so corrected, shall be deemed to be valid. 9. When on any ballot the number of nominees shall not exceed the number of Executive Directors to be elected, each nominee shall be deemed to be elected by the number of votes received by him on such ballot; provided, however, that if, on such ballot, the votes of any Governor shall be deemed under Paragraph 4 of Schedule B to have raised the votes cast for any nominee above ten percent of the eligible votes, no nominee shall be deemed to have been elected who shall not have received on such ballot a minimum of five percent of the eligible votes, and a succeeding ballot shall be taken for which any nominee not elected shall be eligible. 10. If, as a result of the first ballot, the number of Executive Directors to be elected in accordance with Paragraph 4 above shall not have been elected, a second and, if necessary, further ballots shall be taken. The Governors entitled to vote on such succeeding ballots shall be only: (a) those Governors who voted on the preceding ballot for any nominee not elected; and (b) those Governors whose votes for a nominee elected on the preceding ballot are deemed under Paragraph 4 of Schedule B to have raised the votes cast for such nominee above ten percent of the eligible votes. 11. The votes of a Governor shall not be deemed under Paragraph 4 of Schedule B to have raised the total votes for a nominee above ten percent of the eligible votes if without the votes of such Governor such total would be more than five percent but not more than ten percent of the eligible votes. 42 12. If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all, of such Governors could be deemed under Paragraph 4 of Schedule B to have raised the total votes received by such nominee above ten percent of the eligible votes, the Chairman shall determine by lot the Governor or Governors, as the case may be, who shall be entitled to vote on the next ballot. 13. ABSTENTION FROM VOTING: If a Governor shall abstain from voting on any ballot he shall not be entitled to vote on any subsequent ballot and his votes shall not be counted within the meaning of Section 4(g) of Article V toward the election of any Executive Director. If at the time and place of any ballot a member shall not be represented by a Governor, such member, and its Governor, if any, shall be deemed to have abstained from voting on that ballot. 14. ELIMINATION OF NOMINEFS: If on any ballot two or more nominees shall receive the lowest number of votes, no nominee shall be dropped from the next succeeding ballot, but if the same situation is repeated on such succeeding ballot, the Chairman shall eliminate by lot one of such nominees from the next succeeding ballot. 15. ANNOUNCEMENT OF RFSULT: After the last ballot the Chairman shall cause to be distributed a statement setting forth the result of the election. 16. EFFECTIVE DATE OF ELECTION: The effective date of the election shall be November 1, 1964. Incumbent elected Executive Directors shall serve through the day preceding such date. 17. GENERAL: Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Board. Whenever possible, any such questions shall be put without identifying the members or Governors concerned. 43 EXECUTIVE DIRECTORS ELECTED AT 1964 REGULAR ELECTION 1. JOHN M. GARLAND (Australia), elected by votes of: Australia ......................... . 5,580 New Zealand ..................... . 1,917 South Africa ..................... . 2,250 Viet-Nam ........................ . 550 10,297 2. GENGO SUZUKI (Japan), elected by votes of: Burma ........................... . 650 Ceylon .......................... . 850 Japan ........................... . 6,910 Nepal ........................... . 350 Thailand ......................... . 850 9,610 3. A. F. W. PLUMPTRE (Canada), elected by votes of: Canada .......................... . 7,750 Ireland .......................... . 850 Jamaica .......................... . 517 9,117 4. MUMTAZ MIRZA (Pakistan), elected by votes of: Iran ............................ . 1,150 Iraq ............................ . 400 Jordan ........................... . 400 Kuwait .......................... . 917 Lebanon ......................... . 340 Pakistan ......................... . 2,250 Saudi Arabia ..................... . 983 Syrian Arab Republic .............. . 583 United Arab Republic .............. . 1,671 8,694 5. PIETER LIEFTINCK (The Netherlands), elected by votes of: Cyprus .......................... . 400 Israel ............................ . 916 Netherlands ...................... . 5,750 Yugoslavia ....................... . 1,317 8,383 6. ANDRE VAN CAMPENHOUT (Belgium), elected by votes of: Austria .......................... . 1,250 Belgium ......................... . 4,750 Korea ........................... . 500 Luxembourg ...................... . 450 Turkey .......................... . 1,400 8,350 7. JOAQuiN GUTIERREZ CANO (Spain), elected by votes of: Greece .......................... . 750 Italy ............................ . 3,850 Portugal ......................... . 1,050 Spain ............................ . 2,250 7,900 44 EXECUTIVE DIRECTORS ELECTED AT 1964 REGULAR ELECTION (Continued) 8. ABDERRAHMAN TAZI (Morocco), elected by votes of: Afghanistan ...................... . 550 Algeria .......................... . 1,050 Ghana .......................... . 717 Indonesia ........................ . 2,450 Laos ............................ . 350 Libya ........................... . 450 Malaysia ......................... . 750 Morocco ......................... . 950 Tunisia .......................... . 550 7,817 9. REIGNSON C. CHEN (China), elected by votes of: China 7,750 7,750 10. VILHJALMUR THOR (Iceland), elected by votes of: Denmark ........................ . 1,983 Finland .......................... . 1,010 Iceland .......................... . 400 Norway ......................... . 1,583 Sweden .......................... . 2,250 7,226 11. JORGE MEJIA-PALACIO (Colombia), elected by votes of: Brazil ........................... . 3,983 Colombia ........................ . 1,183 Dominican Republic ............... . 383 Ecuador ......................... . 421 Philippines ....................... . 1,250 7,220 12. JOHN M. GARBA (Nigeria), elected by votes of: Burundi ......................... . 400 Congo (Leopoldville) ............... . 850 Ethiopia ......................... . 350 Guinea .......................... . 450 Kenya ........................... . 583 Liberia .......................... . 400 Mali ............................ . 423 Nigeria .......................... . 917 Sierra Leone ...................... . 400 Sudan ........................... . 450 Trinidad and Tobago ............... . 517 Uganda .......................... . 583 United Republic of Tanganyika and Zanzibar ................... . 583 6,906 13. LUIS MACHADO (Cuba), elected by votes of: Costa Rica ....................... . 330 El Salvador ....................... . 357 Guatemala ....................... . 330 Haiti ............................ . 400 Honduras ........................ . 310 Mexico .......................... . 1,983 Nicaragua ....................... . 310 Panama .......................... . 254 Peru ............................ . 600 Venezuela ........................ . 1,650 6,524 45 EXECUTIVE DIRECTORS ELECTED AT 1964 REGULAR ELECTION (Continued) 14. MANUEL SAN MIGUEL (A rgentina) , elected by votes of: Argentina ........................ . 3,983 Bolivia .......................... . 460 Chile ............................ . 1,183 Paraguay- ........................ . 310 Uruguay ......................... . 355 6,291 15. MOHAMED NASSIM KOCHMAN (Mauritania), elected by votes of: Cameroon ....................... . 450 Central African Republic ........... . 350 Chad ............................ . 350 Congo (Brazzaville) ................ . 350 Dahomey ........................ . 350 Gabon .......................... . 350 Ivory Coast ...................... . 450 Malagasy Republic ................ . 450 Mauritania ....................... . 350 Niger ........................... . 350 Rwanda ......................... . 400 Senegal .......................... . 583 Somalia ......................... . 400 Togo ............................ . 400 Upper Volta ...................... . 350 5,933 REPORTS OF EXECUTIVE DIRECTORS OF BANK July 30,1964 REPORT OF THE EXECUTIVE DIRECTORS ALLOCATION OF NET INCOME AND STATEMENT OF POLICY 1. On July 27, 1950 the Executive Directors adopted a resolution providing, among other things, that the net income of the Bank for the fiscal year ended June 30, 1950 and the net income of the Bank accruing thereafter, and until further action by the Executive Directors or the Board of Governors, should be allocated to a reserve (now called Supplemental Reserve) against losses on loans and guarantees made by the Bank. The Board of Governors at the Fifth Annual Meeting in 1950 adopted Resolution No. 55 noting with approval the policy of the Executive Directors in establishing and maintaining such reserve. At all subsequent Annual Meetings the Board of Governors noted with approval the allocation of the net income of the Bank to the said reserve. 2. In connection with their review of the financial policy of the Bank in September 1963 the Executive Directors concluded that the automatic allocation of all net income of the Bank to the Supplemental Reserve against Losses on Loans and Guarantees was no longer necessary and that the allocation of net income accumulated during any future fiscal year should be considered at the end of each such year. Accordingly, pursuant to a resolution adopted on September 24, 1963 46 they discontinued the above-mentioned allocation with effect from July 1, 1963. At the Eighteenth Annual Meeting the Board of Governors on September 30, 1963 noted this action of the Executive Directors with approval. 3. In their report to the Board of Governors dated September 24, 1963 the Executive Directors noted that the effect of the action taken by them was that the net income of the Bank accruing during the fiscal year 1963-64 would be reflected on the books of the Bank as "net income," subject to any further decision which the Executive Directors or the Board of Governors might appropriately take with respect thereto by way of allocation to the Supplemental Reserve or otherwise. 4. The Bank's net income for the fiscal year ended June 30, 1964 amounts to $97,455,851. In addition the Bank had commission income for that fiscal year amounting to $33,176,093, which was appropriated to the Special Reserve created under Article IV, Section 6 of the Bank's Articles of Agreement. As of June 30, 1964 the Special Reserve totalled $288,119,454 and the Supple- mental Reserve amounted to $558,115,003. Total reserves therefore amounted to $846,234,457, of which the $288,119,454 in the Special Reserve is kept in liquid form, the remainder being used in the business of the Bank. 5. The Executive Directors have considered what action to take, or to recommend that the Board of Governors take, with respect to the net income for the fiscal year ended June 30, 1964. In view of the size of the Bank's reserves the Executive Directors have determined that it is not necessary that the entire net income should be added to the Supplemental Reserve and that it would be sufficient if approximately one-half of the $97,455,851 of net income should be added to that reserve. Accordingly, pursuant to Resolution No. 64-29 adopted on July 30, 1964 they allocated $47,455,851 to the Supplemental Reserve against Losses on Loans and Guarantees. 6. The Executive Directors considered the disposition of the balance of net income in the amount of $50,000,000 and concluded that it was not necessary to retain this amount in the Bank's business. They further considered whether they should recommend to the Board of Governors that this amount of $50,000,000 be distributed as a dividend and concluded against making such recommendation, on the ground that such a distribution would not constitute the most effective use of the Bank's resources. They further concluded that, in the light of the need for additional development assistance on flexible terms, the purposes of the Bank and the interests of its members would best be served by the transfer of the amount of $50,000,000 to the International Development Association by way of grant. 7. In that connection the Executive Directors examined whether, if the Board of Governors shares the views of the Executive Directors with respect to the allocation to the Supplemental Reserve and the disposition of the balance of net income set forth in paragraphs 5 and 6 of this Report, the Board of Governors could, consistently with the Articles of Agreement, dispose of this balance by transferring it to the International Development Association. Acting pursuant to Article IX of the Articles of Agreement, the Executive Directors decided this question in the affirmative. The text of their decision is attached to this Report as Attachment A. 47 8. While the conclusions of the Executive Directors with respect to the desirability of a grant to the International Development Association were reached with respect to net income for the fiscal year 1963-64 only, they have noted that similar action might be appropriate in future years. While such action would have to be decided upon with respect to each fiscal year in the light of all relevant circumstances, and particularly taking into account the need for additions to the Bank's reserves, the Executive Directors consider it appropriate that the Bank should at this time adopt a state- ment of policy with respect to possible transfers in future years in the following terms: "Any transfers to the Association will be made only out of net income which (i) accrued during the fiscal year in respect of which the transfer is made and (ii) is not needed for allocation to reserves or otherwise required to be retained in the Bank's business and, accordingly, could pru- dently be distributed as dividends." 9. The Executive Directors hereby recommend that the Board of Governors approve the present Report and adopt the draft resolution ... 1 This Report was approved and its recommendations were adopted by the Board of Governors on September 10, 1964. ATTACHMENT A DECISION OF THE EXECUTIVE DIRECTORS OF THE BANK ON QUESTION OF INTERPRETATION OF ARTICLES OF AGREEMENT 1. WHEREAS the net income of the International Bank for Reconstruction and Development (the Bank) for the fiscal year ended June 30,1964 amounts to $97,455,851; and 2. WHEREAS the Executive Directors have considered what action to take, or to recommend that the Board of Governors take, with respect to such net income; and 3. WHEREAS the Executive Directors have determined that out of such net income $47,455,851 should be added to the Supplemental Reserve against Losses on Loans and Guarantees; and 4. WHEREAS the Executive Directors are of the opinion that the balance of such net income in the amount of $50,000,000 need not be added to reserves or otherwise retained in the Bank's business and would, accordingly, be available for distribution or such other disposition as may be proper under the Bank's Articles of Agreement; and 5. WHEREAS the Executive Directors are further of the opinion that a distribution should not be recommended at this time and that the purposes of the Bank and the interests of its members would best be served by the transfer of the amount of $50,000,000 to the International Develop- ment Association (the Association) by way of grant; and 1 See page 30. 48 6. WHEREAS the Executive Directors accordingly are considering a proposal to recommend to the Board of Governors of the Bank at its next Annual Meeting that the Board decide to transfer $50,000,000 out of the Bank's net income for the fiscal year ended June 30, 1964 to the Associa- tion by way of grant; and 7. WHEREAS the Executive Director for the United Kingdom has requested that, before taking action on this proposal, the Executive Directors decide, in accordance with Article IX of the Articles of Agreement of the Bank, the question whether, if the Board of Governors shares the views of the Executive Directors recorded in the third, fourth and fifth clauses hereof, the Board of Governors may, consistently with the Articles of Agreement of the Bank, make the proposed transfer of $50,000,000 to the Association; Now THEREFORE, the Executive Directors, having considered the question of interpretation, hereby decide it in the affirmative. August 6,1964 REPORT OF THE EXECUTIVE DIRECTORS SETTLEMENT OF INVESTMENT DISPUTES 1. At its Seventeenth Annual Meeting in September 1962 the Board of Governors adopted the following Resolution: "RESOL VED: THA T the Executive Directors are requested to consider the desirability and practicability of establishing institutional facilities, sponsored by the Bank, for the settlement through con- ciliation and arbitration of investment disputes between governments and private parties and, if they conclude that such action would be advisable, to draft an agreement providing for such facilities for submission to governments." 2. During 1962-63 the Executive Directors studied the subject-matter on the basis of a staff paper in the form of a convention for the settlement of investment disputes. At the end of that fiscal year the Executive Directors, on the recommendation of the President, decided to convene informal consultative meetings of legal experts designated by member countries, to consider the subject-matter in more detail. The working document for these meetings was a Preliminary Draft of a Convention for the Settlement of Investment Disputes between States and Nationals of Other States, prepared by the Bank's staff in the light of the discussions of the Executive Directors during 1962-63 and the views of governments. The consultative meetings were held on a regional basis in Addis Ababa (December 16-20, 1963), Santiago de Chile (February 3-7, 1964), Geneva (February 17-21, 1964) and Bangkok (April 27-May 1, 1964) with the administrative support and assistance of the United Nations Economic Commissions and the European Office of the 49 United Nations. They were attended by legal experts designated by 86 countries and proved valuable not only in identifying and elucidating technical problems but also in supplementing the Bank's information regarding the attitudes of some governments. 3. Reviewing the results of the work done over the past two years, the Executive Directors have concluded that it would be desirable (a) to establish institutional facilities, sponsored by the Bank, for the settlement through voluntary conciliation and arbitration of investment disputes between governments and foreign investors; and (b) to provide for such facilities within the framework of an inter-governmental agreement. 4. The Executive Directors are further of the opinion that as a result of the discussions and consultations which have taken place over the past two years, the issues of policy as well as the technical problems arising in connection with such an agreement have been adequately identified and elucidated and that the time has come to seek to resolve these issues and problems with a view to arriving at a broad consensus. 5. In that connection the Executive Directors have concluded that it would be advisable at this time for the Executive Directors to undertake the formulation of a convention on the settle- ment of investment disputes between States and Nationals of other States, assisted in this task by legal experts representing member governments which wish to participate in the preparation of a text. 6. In recommending that such a convention be formulated by the Executive Directors and submitted to governments, it is the understanding of the Executive Directors that the formulation, and submission to governments, of a convention would be an act of the Executive Directors which would not commit governments. The Executive Directors would submit the text to governments with such recommendations as they may deem appropriate. 7. The Executive Directors recommend that the Board of Governors approve this report and adopt the ... resolution. 1 This Report was approved and its recommendations were adopted by the Board of Governors on September 10, 1964. 1 See page 34. 50 August 6,1964 JOINT REPORT OF THE EXECUTIVE DIRECTORS OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND OF THE BOARD OF DIRECTORS OF THE INTERNATIONAL FINANCE CORPORATION' BANK LOANS TO IFC INTRODUCTION 1. In the pursuance of its purposes the Bank, in addition to providing finance for the public sector, has always paid due regard to the need for growth and expansion of the private sector of the economy. A great many of the Bank's loans are designed, either directly or indirectly, to stimulate private investment, particularly in the less developed countries. However, Bank support for private enterprises has been inhibited by the guarantee requirements of the Bank's Articles of Agreement. On the one hand, such enterprises are often reluctant to seek a government guarantee of repayment and on the other, governments often find it politically or constitutionally difficult to give such a guarantee. 2. To overcome this difficulty the Bank first undertook to promote the establishment of local development finance companies and to use these as intermediaries for lending to private industry, thus avoiding the problem inherent in government guarantees. Subsequently, the Bank sponsored the establishment of the International Finance Corporation whose function is to make investments in privately owned productive enterprises without government guarantee. On a further review of the problem, the Executive Directors have concluded that there exists a need for assistance to private borrowers that neither local development finance companies nor IFC can provide at the present time. 3. In exploring what might be the most desirable and effective way in which the Bank could meet this need, two principal approaches were considered. The most direct method of achieving the objective, which is to permit Bank funds to flow to private enterprises without governmental guaran- tee, would be for the Bank itself to make loans to such enterprises. Another method would be for Bank funds to be channeled through IFC, which was brought into existence especially to supple- ment the activities of the Bank by investing without government guarantee in productive private enterprises and whose particular task it is to stimulate economic growth by assisting the private sector. The President concluded that the second method was preferable and the Executive Directors of the Bank and the Board of Directors of IFC agreed with this view. 1 The proposed amendment of the Articles of Agreement was brought before the Board of Governors of the Bank by the following letter dated August 7, 1964, from the Chairman, F. Aquino h.: "In accordance with Article VIII of the Articles of Agreement of the Bank, I herewith bring before the Board of Governors a proposal to introduce modifications in the Articles of Agreement emanating from the Executive Directors of the Bank. The proposal is contained in a report of the Executive Directors dated August 6, 1964, which is attached to this letter. I recommend that the Board of Governors take note of the proposal and take the steps necessary to obtain action thereon. A draft resolution for this purpose is attached hereto." (See page 29). 51 ROLE OF IFC 4. When IFC was established in 1956, there was incorporated in its Articles of Agreement a prohibition against investments in capital stock. Since the amendment of its Articles in Septem- ber 1961 to permit it to make such investments, IFC has been able to provide financing in any form that may be appropriate. At present, its activities fall into three main categories: first, the making of selected direct investments, usually on a mixed loan and equity basis; second, the pro- vision of equity capital to industrial finance companies; third, assisting growth of capital markets by engaging in underwriting and standby transactions. 5. IFC's resources are limited to its own subscribed capital and reserves, which presently total about $120 million. On the basis of the types of operations which IFC is presently carrying out, and taking into account the rate at which it may be expected to revolve its portfolio, IFC's Board of Directors believes that IFC might require additional funds in one or two years' time. It is important that steps be taken now to increase IFC's resources in order to enable it to operate on the scale and in the manner described in paragraph 8 below. 6. The President of the Bank and of IFC has stated that it is not possible to make exact forecasts of the amount of Bank-derived funds that would be lent by IFC, or the pace at which IFC operations would increase if its resources were augmented in the manner proposed, but that he is confident that the additional resources would be used if they were available. The Executive Directors of the Bank and the Board of Directors of IFC concur in this view. IFC's experience is that there exists a demonstrable demand in the developing countries for additional equity capital, frequently coupled with a need for substantial loan funds in amounts which IFC has not previously been able to satisfy. 7. In some of its investments IFC has been able to combine its financing with that from other institutions which provide loan capital. Many of these institutions work only in particular regions and difficulties are experienced in finding long-term capital for enterprises in countries outside these regions; and, sometimes, the amounts involved are beyond the resources of the institution concerned. In some cases, monies have been provided by means of short or medium-term suppliers' credits or from tied governmental programs. If IFC could make available for its member countries, on a wide geographical basis, non-guaranteed and non-tied loans in larger amounts than its present resources permit, there would be added an important element to the range of financing available from the Bank and its Affiliates. Without attempting to estimate the volume of operations that would follow, the Directors consider that the added flexibility is desirable. 8. It is proposed that the Bank make loans to IFC along the lines of Bank loans to develop- ment finance companies for relending. Such loans would supplement the funds now available for IFC loan operations and would enable IFC to expand its activity in several ways. They would pro- vide a source of additional funds for the loan portions of investments made by IFC on a mixed loan and equity basis. They would also be available to reimburse IFC for the loan portions of invest- ments already made. They would permit IFC to enter into much larger transactions than it does at present. And finally, they would provide IFC with funds sufficiently large that, in appropriate cases, it could finance enterprises by means of fixed-interest loans not carrying equity or other special features. 52 9. This proposal would require an amendment to the Articles of Agreement of the Bank to permit the Bank to make loans to IFC without government guarantees and an amendment of the Articles of Agreement of IFC to remove the prohibition against borrowing from the Bank. 10. The Articles of Agreement of the Bank would be amended by the addition to Article III of a new Section 6 reading as follows: "( a) The Bank may make, participate in, or guarantee loans to the International Finance Cor- poration, an Affiliate of the Bank, for use in its lending operations. The total amount outstanding of such loans, participations and guarantees shall not be increased if, at the time or as a result thereof, the aggregate amount of debt (including the guarantee of any debt) incurred by the said Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus. (b) The provisions of Article III, Sections 4 and 5 ( c) and of Article IV, Section 3 shall not apply to loans, participations and guarantees authorized by this Section." 11. The new Section 6(a) would authorize the Bank to assist IFC by means of loans, partici- pations in loans or guarantees of loans made by others. While the present intention is that the Bank should assist IFC by means of direct loans, it would nevertheless seem desirable to authorize the Bank to guarantee loans made by others to IFC, should this course of action prove appropriate at some future time. The President has recommended, and the Executive Directors agree, that it would be desirable to establish in the Bank's Articles of Agreement a limitation on the amount of the Bank's financial assistance to IFC. Hence, Section 6 (a) would limit loans to IFC made or guaran- teed by the Bank by reference to a four to one ratio between IFC's aggregate debt and its unimpaired subscribed capital and surplus. 12. Paragraph (b) of the new Section 6 would provide that Sections 4 and 5 ( c) of Article III and Section 3 of Article IV of the Articles of Agreement shall not apply to loans or guarantees authorized by paragraph (a). Section 4 of Article III lays down general conditions for Bank loans and guarantees. These conditions include the requirement of a government guarantee and other conditions which are inappropriate in the context of the proposed financing for IFC. Section 5 (c) of Article III provides that when the Bank makes a loan the amount of the loan shall be credited to a loan account on which the borrower shall be permitted to draw only to meet expenses in connec- tion with the project as they are actually incurred. This section is inappropriate in the case of loans to IFC because it is contemplated that IFC might borrow from the Bank to reimburse itself for loans already made. Finally, Section 3 of Article IV dealing with the currencies to be provided by the Bank should not be applied to loans to IFC. That section provides that as a rule Bank loans will be used only to finance expenditures in foreign currency, whereas it is in the nature of IFC's operations that the loans it makes should be available for local as well as foreign expenditures. 13. The Articles of Agreement of IFC would be amended by deleting from Article IV, Sec- tion 6 the second sentence reading as follows: "The Corporation shall not lend to or borrow from the Bank."; and by adding the following sentence to Article III, Section 6(i): "if and so long as the Corporation shall be indebted on loans from or guaranteed by the Bank, the total amount outstanding of borrowings incurred or guarantees given by the Corporation shall not be increased if, at the time or as a result thereof, the aggregate amount 53 of debt (including the guarantee of any debt) incurred by the Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus;". RECOMMENDA TIONS 14. On the basis of the foregoing: (a) The Executive Directors of the Bank recommend that the Board of Governors adopt the draft resolution attached hereto as Annex A; and (b) The Board of Directors of IFC recommends that the Board of Governors of IFC adopt the draft resolution attached hereto as Annex B. 15. The procedures for amending the Articles of Agreement of the Bank and IFC are not identical. The Articles of Agreement of the Bank prescribe a two stage procedure, requiring that the proposed amendment be first approved by the Board of Governors and thereafter accepted by three-fifths of the members, having four-fifths of the total voting power, whereas under the Articles of Agreement of IFC only one step is necessary, namely, approval of the amendment by the Board of Governors by a favorable vote of three-fifths of the Governors, exercising four-fifths of the total voting power. The text of the relevant provisions of the respective Articles of Agreement is set forth in Annex C. 16. The Executive Directors of the Bank and the Board of Directors of IFC recommend that the Chairman of the Boards of Governors of the Bank and IFC transmit this report, in accord- ance with the provisions of the respective Articles of Agreement, to the Boards of Governors and ask these Boards to take steps to obtain action on the proposed amendments. 17. The Executive Directors of the Bank and the Board of Directors of IFC also recommend that the action on this Report and the draft resolutions hereto attached as Annexes A and B be taken by votes without meeting in accordance with the following procedure: (a) No particular form of vote shall be required so long as the Governor gives a clear indication by letter or cable addressed to the Secretary as to whether or not the Governor approves the resolution or resolutions on which he is voting. (b) The period during which votes may be cast shall commence with September 10, 1964 and, in the case of the Bank, shall end on May 31, 1965 or such later date as may be fixed by the Executive Directors of the Bank; and in the case of IFC, until the date when the resolution has received the required votes. (c) Votes cast on the proposed resolutions shall be held by the Secretary until counted. ( d) The Secretary shall canvass the votes so cast and report thereon to the Executive Directors of the Bank, and the Board of Directors of IFC, who shall record the results, and the Presi- dent shall notify all members. (e) The resolutions, if adopted, shall be deemed to have been adopted on the last day allowed for voting. (f) The Secretary shall take such further action as he shall deem necessary or appropriate in the circnmstances. This Report was approved and its recommendations were adopted by the Boards of Governors of the Bank and IFe on September 10,1964.* * See Bank Resolution on page 29, and IFe Resolution in the IFe "Proceedings." 54 ANNEX A (DRAFT RESOLUTION) LOANS TO INTERNATIONAL FINANCE CORPORATION WHEREAS the Executive Directors have communicated to the Chairman of the Board of Governors a proposal to introduce modifications in the Articles of Agreement; and WHEREAS the Chairman has brought the proposal before the Board of Governors; Now THEREFORE the Board of Governors resolves as follows: In accordance with the recommendations of the Executive Directors, the Board of Governors hereby approves the amendment of the Articles of Agreement by the addition to Article III of a new Section 6, entitled Loans to the International Finance Corporation and reading as follows: "( a) The Bank may make, participate in, or guarantee loans to the International Finance Corporation, an Affiliate of the Bank, for use in its lending operations. The total amount outstanding of such loans, participations and guarantees shall not be increased if, at the time or as a result thereof, the aggregate amount of debt (including the guarantee of any debt) incurred by the said Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus. (b) The provisions of Article III, Sections 4 and 5 (c) and of Article IV, Section 3 shall not apply to loans, participations and guarantees authorized by this Section." ANNEX B (DRAFT RESOLUTION) BORROWING FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WHEREAS the Board of Directors has communicated to the Chairman of the Board of Governors a proposal to amend the Articles of Agreement; and WHEREAS the Chairman has brought the proposal before the Board of Governors: Now THEREFORE the Board of Governors resolves that, in accordance with the proposal of the Board of Directors, the Articles of Agreement are hereby amended as follows: 1. By deleting from Article IV, Section 6 the second sentence reading as follows: "The Corporation shall not lend to or borrow from the Bank." 2. By adding to Article III, Section 6(i) a sentence reading as follows: "if and so long as the Corporation shall be indebted on loans from or guaranteed by the Bank, the total amount outstanding of borrowings incurred or guarantees given by the Corporation shall not be increased if, at the time or as a result thereof, the aggregate amount of debt (including the guarantee of any debt) incurred by the Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus;." 55 ANNEX C ARTICLE VIII OF THE ARTICLES OF AGREEMENT OF THE BANK AMENDMENTS ( a) Any proposal to introduce modifications in this Agreement whether emanating from a member, a governor or the Executive Directors, shall be communicated to the Chairman of the Board of Governors who shall bring the proposal before the Board. If the proposed amendment is approved by the Board the Bank shall, by circular letter or telegram, ask all members whether they accept the proposed amendment. When three-fifths of the members, having four-fifths of the total voting power, have accepted the proposed amendments, the Bank shall certify the fact by formal communication addressed to all members. (b) Notwithstanding (a) above, acceptance by all members is required in the case of any amendment modifying (i) the right to withdraw from the Bank provided in Article VI, Section 1; (ii) the right secured by Article II, Section 3 ( c ) ; (iii) the limitation on liability provided in Article II, Section 6. ( c) Amendments shall enter into force for all members three months after the date of the formal communication unless a shorter period is specified in the circular letter or telegram. ARTICLE VII OF THE ARTICLES OF AGREEMENT OF IFC AMENDMENTS (a) This Agreement may be amended by vote of three-fifths of the Governors exercising four- fifths of the total voting power. (b) Notwithstanding paragraph (a) above, the affirmative vote of all Governors is required in the case of any amendment modifying: (i) the right to withdraw from the Corporation provided in Article V, Section 1; (ii) the pre-emptive right secured by Article II, Section 2 ( d) ; (iii) the limitation on liability provided in Article II, Section 4. (c) Any proposal to amend this Agreement, whether emanating from a member, a Governor or the Board of Directors, shall be communicated to the Chairman of the Board of Governors who shall bring the proposal before the Board of Governors. When an amendment has been duly adopted, the Corporation shall so certify by formal communication addressed to all members. Amendments shall enter into force for all members three months after the date of the formal com- munication unless the Board of Governors shall specify a shorter period. 56 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS ° AFGHANISTAN ° BRAZIL Governor . ..................... Abdullah Yaftali Governor .. . . . . . . . . . . . Octavio Gouvea de Bulhoes Alternate Governor ............ " Faruq Achikzai Alternate Governor . ....... Denio Chagas Nogueira Adviser ......................... Wilfred Lewis Advisers: Mauricio C. Bicalho Joao Baptista Pinheiro ° ALGERIA Antonio A. Coutinho Lawrence Smith Jose Luiz Silveira Governor ...................... Bachir Boumaza Miranda Alternate Governor . ............. Seghir Mostefai Advisers: Kamel Abdallah-Khodja Yahia Khelif ° BURMA Ali Yahia Abdennour Georges Simon Governor ... .................... U Kyaw Nyein Nourredine Delleci Alternate Governor . ............ " U Kyaw Nyun °ARGENTINA °BURUNDI Governor . . . . . . . . . . . . . . . . . . . . . . .. Felix Elizalde Governor . . . . . . . . . . . . . . . . . . . . .. Eric Manirakiza Alternate Governor . .......... Manuel San Miguel A lternate Governor . . . . . . . . . . . .. Francois Dupont Advisers: Rodolfo Barbagelata Guillermo Walter Klein ° CAMEROON Carlos S. Brignone:j: Jesus Sabra Guillermo J. Cano Governor ...................... Laurent Ntamag Alternate Governor . .... Francois David Ndjountche ° AUSTRALIA Advisers: Alfred Ekoko Mpondo David Libon Governor ......................... Harold Holt Theodore Koule Paul Monthe Alternate Governor . ........... Sir Roland Wilson Advisers: L. B. Brand K. W. Pearson ° CANADA Roy Daniel R. J. Whitelaw Governor .................... Walter L. Gordon John M. Garlandt Alternate Governor . .......... A. F. W. Plumptret Advisers: ° AUSTRIA A. J. Barry R. W. Lawson Richard P. Bower D. C. Taylor Governor . .................... Wolfgang Schmitz S. J. Handfield-Jones:j: Alternate Governor . ............... Hugo Rottky Advisers: Franz Fuchs Andreas Korp °CENTRAL AFRICAN REPUBLIC Carl Giessrigl Franz Oellerer:j: Governor .............. Francois Giscard d'Estaing Kurt Harrer Edgar Plan Alternate Governor . ......... Jean Paul Mokodopo Rudolf Horak Ludwig Strobl ° CEYLON ° BELGIUM Governor ........................ N. M. Perera Governor ....................... Andre Dequae Alternate Governor H. Jinadasa Samarakkody Alternate Governor . ..... Andre van Campenhout*t Advisers: Advisers: Gamani Corea William Tennekoon Jacques Mertens de Maurice Toussaint J. B. Kelegama Wilmars °CHAD ° BOLIVIA Governor .................. Georges Diguimbaye Governor .................... Raul Lema Pelaez A lternate Governor . . . . . . . . . . . . . . . Boukar Abdoul Alternate Governor . .............. Adolfo Linares Adviser ......................... Jean Nendigui * Temporary t Executive Director :j: Alternate Director o IDA Member 57 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) ° CHILE ° DENMARK Governor ........................... Felix Ruiz Governor .......................... Kjeld Philip Advisers: Alternate Governor ................. Otto Muller Luis Escobar Francisco Garces Advisers: Miss Alice Brunt Torben Friis ° CHINA °DOMINICAN REPUBLIC Governor . . " . " ............... Ching-Yu Chen Alternate Governor . ............. " Kuo-Hwa Yu Governor . ......... Jose Andres Aybar Castellanos Advisers: Alternate Governor . ...... Jose Maria Cabral Vega* Felix Chang Nai-Shen New Adviser . ................ Jose Manuel Armenteros Philip C. C. Chang I. S. Sun R. C. Chent Martin Wong ° ECUADOR K. H. King Governor . ............. Victor J. Maspons y Bigas Alternate Governor ............. Felipe Orellana * ° COLOMBIA Adviser ..................... Gustavo Polit Ortiz Alternate Governor Hernando Agudelo Villa * Advisers: °EL SALVADOR Camilo Herrera Augusto Ramirez Guillermo Herrera Moreno Governor . . . . . . . . . . . . . . . . . . . Francisco Aquino h. Carrizosa Eduardo Soto P. Alternate Governor . ............. Abelardo Torres Alvaro Lopez Vicente Uribe Advisers: Walter Beneke Roberto Daglio °CONGO (Brazzaville) °ETHIOPIA Governor ........................... Paul Kaya Governor ........................ Yilma Deressa Alternate Governor . ......... Bernard Banza Bouiti Alternate Governor . ............ Bulcha Demeksa Adviser ....................... Stanislaw Kirkor °CONGO (Leopoldville) Governor .. .................. Dominique Ndinga °FINLAND Adviser ........................ Louis Lamonzie Governor ......................... Esko Rekola Alternate Governor ................ R. v. Fieandt Adviser ......................... Eino Suomela:j: aCOSTA RICA Governor ., ...................... Alvaro Castro °FRANCE Alternate Governor . ......... Jose Antonio Castro* Advisers: Governor ............... Valery Giscard d'Estaing German Gago Rufino Gilt A lternate Governor . . . . . . . . . . . . . . Maurice Perouse Advisers: Bernard Clappier Paul Mentre ° CYPRUS Pierre Esteva Claude Pierre- Governor Renos Solomides Julien-Pierre KoszuI Brossolette Jean de Largentaye Gerard M. Teyssier Rene Larret ° DAHOMEY Governor .............. Francois Djibode Aplogan °GABON Alternate Governor . ............ Marcel Tokpanou Advisers: Governor . ............... Andre Gustave Anguile Robert Julienne Pierre Sanner Alternate Governor . . Etienne M'Boumba-Moundounga * Temporary t Executive Director t Alternate Director o IDA Member 58 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) ° GERMANY, FEDERAL REPUBLIC OF ° ICELAND Governor . . . . . . . . . . . . . . . . . . . . . Kurt Schmuecker Governor .......................... Thor Thors Alternate Governor ............ Fritz G. Fechner* Alternate Governor . ............ Johannes Nordal* Alternate Governor . ............. Hans Henckel* Advisers: °INDIA Helmut Abramowski:j: Franz Klamser Governor .................. T. T. Krishnamachari Ulrich Beelitz Helmut Koinzer A lternate Governor . . . . . . . . . . . . . S. Bhoothalingam Otto Donnert Viktor Baron von Alternate Governor . ............... B. K. Madan* Guenter Duerre der Lippe Advisers: Otmar Emminger Egon Montzka J. J. Anjaria R. V. Krishnan Ulrich Engelmann Klaus Oertel A. K. Ghosh I. G. Patel Rolf Gocht Otto Pfleiderer R. K. Jerath K. S. Sundara Walter O. Habermeier Peter Scholz C. S. Krishna Rajant Hans Carl Count Moorthi von Hardenberg INDONESIA ° GHANA Alternate Governor Soerjono Sastrohadikoesoemo Governor ...................... K. Amoako-Atta Advisers: Alternate Governor . ....... J. H. Frimpong-Ansah* Bermawie Alwie R. Sardjono Advisers: H. Hutagalung Rachmat Saleh E. Abdallah J. H. Mensah R. S. Natalegawa Sumanang W. Baidoe-Ansah °GREECE °IRAN Governor . . . . . . . . . . . . . . . . . . . . . George I. Mavros Governor ................. Amir Abbas Hoveyda Alternate Governor . ...... John P. Paraskevopoulos Alternate Governor . ........... Jahangir Amuzegar Advisers: Advisers: Costa P. Caranicas Nicolas Kyriazidis Nader Akrami Ali Akbar Khosropur:j: George Gondicas °IRAQ ° GUATEMALA Governor .............. Abdul Rahman AI-Habeeb Governor ............ " Carlos E. Peralta Mendez A lternate Governor ............ Khalil Al-Shamma' Alternate Governor Jorge Lucas Caballeros Mazariegos °IRELAND Advisers: Alternate Governor T. K. Whitaker Jorge Gonzalez Jorge Papadopolo Alternate Governor . ............... S. F. Murray* del Valle Emilio Peralta Eduardo Palomo Manuel Rubio- °ISRAEL Escobar Sanchez Governor . . . . . . . . . . . . . . . . . . . . .. David Horowitz GUINEA Alternate Governor . ................ Jacob Arnon Advisers: Governor . . . . . . . . . . . . . . . . . . . . .. Ousmane Baldet Dr. Avraham Neeman Mordekhai Shneerson Alternate Governor . ............... Marcel Cros* A vraham Neeman Adviser ....................... Mamady Camara ° ITALY Governor . ........................ . Guido Carli A lternate Governor Lyonel Lajoie" Advisers: ° HONDURAS Federico Caffe Emilio Ranalli Mario Ercolani Sergio Siglienti:j: Governor ............. Edgardo Dumas Rodriguez Florio Gradi Alfredo Vernucci Alternate Governor . ...... Enrique Ortez Colindres* Giuseppe Lo Faro Antonino Zecchi Adviser . ........................ Jacques Harari Rinaldo Ossola * Temporary t Executive Director :j: Alternate Director ° IDA Member 59 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) °IVORY COAST ° KUWAIT Governor . . . . . . . . . . . . . . . . . . . . . . . . Raphael Saller Alternate Governor ........ Abdlatif Y. AI-Hamad Alternate Governor . .......... Mohamed Diawara Adviser ....................... Adnan Mahhouk Adviser ........................ Francis Le Patre JAMAICA °LAOS Governor ....................... D. B. Sangster Governor . ............... Sisouk Na Champassak Alternate Governor ............ G. Arthur Brown Advisers: Advisers: Sitha Sis om bat Bouakham Soulivong R. I. Mason S. J. Stephens ° LEBANON °JAPAN Alternate Governor . ............... Raja Himadeh Governor . ...................... Kakuei Tanaka Alternate Governor . ........ Masamichi Yamagiwa Alternate Governor .... ........... Shinichi Ishino* ° LIBERIA Alternate Governor . ............ Yoshio Katagiri* Governor .............. Charles Dunbar Sherman A lternate Governor ................ Masao Kaya * Alternate Governor . ............. J. Milton Weeks A lternate Governor . . . . . . . . . . . . Haruo Mayekawa * Advisers: Alternate Governor . ............. Tadashi Sasaki* George A. Blowers S. Edward Peal Alternate Governor . .......... Makoto Watanabe* Advisers: Hirotake Fujino Naotsugu Nabeshima ° LIBYA Masaru Fukuda Keiya Nagamatsu !chiro Gengo Keijiro Nakahashi Alternate Governor ................ Ali A. Attiga Akira Harada Keiichiro Niwayama Adviser .................... Kassem M. Sherlala Yukio Hasumi Eiji Ozaki:j: Masaya Hattori Moriyuki Saito ° LUXEMBOURG Koichi Inamura Toshio Shimanouchi Shiro Inoue Gengo Suzukit Governor Pierre Werner Ryosaku Kaji Hideo Suzuki Yusuke Kashiwagi Keijiro Tanaka Ichiro Katakami °MALAGASY REPUBLIC Hiroshi Tanimura Tetsuo Kondo Norio Tsukagoshi Governor . . . . . . . . . . . . . . . . . . . . Ralison Rakotovao Michiya Matsukawa Taketoshi Yamashita Alternate Governor . .......... Louis Rakotomalala Hiromichi Miyazaki Masateru Yoshida Adviser . .................. Jean-Jacques Boissard Shichiro M urai Takeshi Y oshizawa °JORDAN ° MALAYSIA Governor ...................... Adel Shamayleh Governor ........................ Tan Siew Sin Alternate Governor . ............. Adeeb Sughayer Alternate Governor . ............. Lim Swee Aun* Advisers: H. F. G. Leembruggen G. K. Rama Iyer ° KENYA Governor ........................ J. S. Gichuru Alternate Governor . ............. J. N. Michuki* °MALI Governor .................... Louis-Pascal Negre Alternate Governor . ................. Eli Lobel* Governor ........................ Jung Han Rhi Adviser ............................ Oumar Ly Alternate Governor .............. Wan Mo Hong* Advisers: So Y ong Chung ° MAURITANIA Byoung Kyu Suh Sangjin Chyun Seung Doo Y oon Governor ........ Mohamed Lamine Ould Hamoni Moon Yong Rhie Alternate Governor . ............. Mamadou Kane * Temporary t Executive Director :j: Alternate Director ° IDA Member 60 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) °MEXICO ° PAKISTAN Governor ................... Antonio Ortiz Mena Governor ........................... M. Shoaib Alternate Governor Jose Hernandez Delgado Alternate Governor . ............. Mumtaz Mirzat Advisers: Adviser ....................... Ziauddin Ahmad Enrique Basulto Francisco Ruiz Jaramillo de la Pena ° PANAMA Juan Gallardo Moreno Jose Saenz Arroyo Governor . ..................... Julio E. Linares Alfredo Navarrete Enrique Sosa Alternate Governor . ........... Carlos A. Velarde Victor L. Urquidi Adviser ...................... Federico Humbert °MOROCCO °PARAGUAY Alternate Governor . ........... " Mamoun Tahiri Governor .................. Cesar Romeo Acosta Adviser . ................... Abderrahman Tazit Alternate Governor . ......... Oscar Stark Rivarola °NEPAL °PERU Alternate Governor Yadav Prasad Pant Governor . ....................... , Celso Pastor Alternate Governor . ............ Tulio De Andrea ° NETHERLANDS Advisers: Governor . ..................... H. J. Witteveen Enrique Ayulo Pardo Javier Otero Alternate Governor . ................ S. Post hum a Carlos Ferreyros Juan Pardo Althaus Advisers: Alfonso Montero V. M. de Miranda C. van der Tak J. Everts H. M. H. A. van °PHILIPPINES Miss G. A. Koen der Valk Governor .................... Andres V. Castillo Pieter Lieftinck t Alternate Governor . ............. Rafael S. Recto Advisers: NEW ZEALAND Benito Legarda, Jr. Andre Navato Governor . . . . . . . . . . . . . . . . . . . .. E. L. Greensmith Pablo Lorenzo Alternate Governor . .................. J. D. Lang PORTUGAL Adviser . ........................ E. G. Buckton Alternate Governor . ......... L. M. Teixeira Pinto °NICARAGUA Advisers: Governor . . . . . . . . . . . . . .. Guillermo Sevilla-Sacasa J. Amado de Freitas Andre Goncalves Alternate Governor . .............. Andres Garcia Albino Cabral Pessoa Pereira °NIGER °RWANDA Governor .................. Courmo Barcourgne Governor ........................ , G. Cyimana Alternate Governor . ............... Lucien Bayle Alternate Governor . ........... J. B. Habyarimana Adviser ........................ M. Uzamugura °NIGERIA °SAUDI ARABIA Governor ......... Chief Festus Sam Okotie-Eboh Alternate Governor . ................. E. O. Ogbu Governor ..................... Ahmed Zaki Saad Advisers: A. E BaBey J.&R~ °SENEGAL B. A. Ehizuenlen Governor .................. Amadou Karim Gaye A lternate Governor ................ Ibrahima Tal ° NORWAY Governor ...................... O. C. Gundersen °SIERRA LEONE Alternate Governor . ............. Christian Brinch Governor . ....................... R. G. O. King Advisers: Alternate Governor . ......... Sheikh Batu Daramy Erling Borresen Karl Skjaeveland Advisers: Eigil A. Nygaard J. E. M. Snell A. B. Taylor * Temporary t Executive Director t Alternate Director ° IDA Member 61 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) ° SOMALIA TRINIDAD AND TOBAGO Governor . ................. Awil Hagi Abdullahi Governor . ...................... John F. Pierce Alternate Governor . ... Francesco Palamenghi-Crispi Alternate Governor ............... F. A. Francis Advisers: Adviser ............... Mrs. Patricia R. Robinson Chandra Dias Ismail Haibeh Leone Fici °TUNISIA °SOUTH AFRICA Governor ..................... Ahmed Ben Salah Alternate Govenor ............ Moncef Belkhodja* Governor ......................... T. E. Donges Adviser .......................... Ismail Khelil:j: Alternate Governor . .......... J. B. deK. Wilmot* Advisers: S. J. P. du Plessis J. Pickard °TURKEY K. E. Pakendorf A. J. 1. van Vuurent Governor Ferit Melen A lternate Governor Ziya Kayla °SPAIN Advisers: Mahir Ablum Orhan Tureli Governor ............... Mariano Navarro Rubio Kamuran Gurun Alternate Governor . ... Juan Antonio Ortiz Gracia* Advisers: Luis Garcia de Llera Jose Miguel Ruiz- °UGANDA Francisco Gimenez Morales Alternate Governor ......... A. J. P. M. Ssentongo Torres Juan Sarda Joaquin Gutierrez Canot Huberto Villar Enrique Manzanares Sarraillet °UNITED ARAB REPUBLIC Juan Francisco Marti Governor ................... A. M. EI Kaissouni de Basterrechea Alternate Governor . ............ Hamed El Sayeh Advisers: °SUDAN Salah El-Din Hamed A. Guerguis Marzouk Awad Y ousri Moustafa Governor ................ Abdel Rahim Mirghani Mounir Hemaya Hassan Mostafa Rady Alternate Governor . .......... Mohamed KhogaIi* Ahmed Kishty °SWEDEN °UNITED KINGDOM Alternate Governor . ............. G. von Sydow* A lternate Governor . . . . . . . . . . . .. H. K. Wickman * Governor .................... The Earl of Cromer Advisers: Alternate Governor . ............. Sir Denis Rickett Lennart Klackenberg Lennart Olofsson Alternate Governor . ......... Maurice Macmillan* Sigge Lilliehook Alternate Governor . .............. Sir Eric Roll*t Advisers: °SYRIAN ARAB REPUBLIC I. P. Bancroft J. A. Kirbyshire A. K. Cairncross F. J. Ports more Governor . . . . . . . . . . . . . . . . . . . Moustafa Chammaa A. L. Coleby C. Raphael Alternate Governor . ......... Abdul Hadi Nehlawi J. J. Cowperthwaite N. M. P. Reillyt T. Fitzgerald L. P. Thompson- °THAILAND D. F. Hubback McCausland Governor . . . . . . . . . . . . . . .. Sun thorn Hongladarom H. L. Jenkyns Alternate Governor . ......... Chanchai Leetavorn* Advisers: °UNITED REPUBLIC OF TANGANYIKA Kiatikorn Phromyothi Chalalit Thanachanan AND ZANZIBAR Aran Thammano Governor ......................... Paul Bomani Alternate Governor . ............... Salim Rashid °TOGO Advisers: Governor ....................... Boukari Djobo B. F. Masesa C. M. Tibazarwa Alternate Governor . .................. Jean Tevi John G. Scott * Temporary t Executive Director t Alternate Director ° IDA Member 62 ACCREDITED MEMBERS OF DELEGATIONS AT 1964 ANNUAL MEETINGS (Continued) °UNITED STATES URUGUAY Governor . . . . . . . . . . . . . . . . . . . . . . . Douglas Dillon Governor ............... Raul Ybarra San Martin Alternate Governor . ............ John C. Bullitt*t Alternate Governor . ................. Hector Rios Alternate Governor ............ William B. Dale* Alternate Governor . ........... Robert V. Roosa* VENEZUELA Advisers: Gardner Ackley Clarence E. Kilburn Governor . ......... General Rafael Alfonzo Ravard Robert W. Barnett Tom Killefer Alternate Governor . .............. Luis Vallenilla Joseph W. Barr Harold F. Linder Advisers: Henry J. Bittermann Russell B. Long Alfonso Espinoza Ernesto Peltzer Benjamin Caplan William McChesney G. E. Hernandez Samuel Rieber Robert Carswell Martin, Jr. van der C. Marcos Sandoval Charles A. Coombs Clifford Matlock J. Dewey Daane Lawrence C. McQuade °VIET-NAM Dixon Donnelley Abraham J. Multer Robert G. Pelikan Gove'rnor ....................... Tran-Qui-Than E. Jay Finkel Edwin O. Reischauer Alternate Governor . ............ Truong-Thai-Ton* Alfred Hayes Ralph Hirschtritt Henry S. Reuss Alternate Governor .............. Tu-Ngoc-Dinh* John S. Hooker James J. Saxon Adviser . ................... Nguyen-Thanh-Hung Douglass Hunt Fred B. Smith G. Griffith Johnson George H. Willis °YUGOSLA VIA Governor ........................ Kiro Gligorov °UPPER VOLTA Alternate Governor . ................ Zoran Zagar Governor . . . . . . . . . . . . . . . . . . .. Edouard Yameogo Advisers: Alternate Governor . ........ Pierre Claver Damiba Aleksandar Bogoevt Denes Vajs Adviser ....................... Georges Sanogoh Milivoje Spasic * Temporary t Executive Director t Alternate Director o IDA Member 63 EXECUTIVE DIRECTORS AND ALTERNATES AT 1964 ANNUAL MEETINGS Executive Directors A lternate Executive Directors Alice Brun Eino Suomela John C. Bullitt Reignson C. Chen Otto Donner Helmut Abramowski John M. Garba Mohamed Nassim Kochman John M. Garland A. J. J. van Vuuren Joaquin Gutierrez Cano Sergio Siglienti Fernando Illanes Carlos S. Brignone Rene Larre Pieter Lieftinck Aleksandar Bogoev Luis Machado Rufino Gil Jorge Mejia-Palacio Jose Camacho Mumtaz Mirza Ali Akbar Khosropur A. F. W. Plumptre S. J. Handfield-Jones K. S. Sundara Rajan Sir Eric Roll N. M. P. Reilly Gengo Suzuki Eiji Ozaki Abderrahman Tazi Ismail Khelil Andre van Campenhout Franz Oellerer 64 OBSERVERS AT 1964 ANNUAL MEETINGS Malawi International Labor Organization C. V. B. Munthali Y. Sakurai B. W. T. Mutharika H. S. Norman-Walker A. G. Perrin Organization for Economic Co-operation and Development Northern Rhodesia Thorkil Kristensen R. C. H. Hallett Jean Cottier J. C. R. Dow Gunter Keiser Bank for International Settlements F. G. Conolly European Monetary Agreement Gabriel Ferras Alexandre Hay Milton Gilbert H. H. Mandel Permanent Secretariat of the General Treaty for Central Center for Latin American Monetary American Economic Integration Studies Eduardo Palomo Escobar Fernando Rivera Contracting Parties to the United Nations General Agreement on Tariffs and Trade Philippe de Seynes J. Robert Herbin Herbert E. Tennekoon Charles P. Holmes Development Assistance Committee Economic Commission for Africa F. A. N'Liba Nguimbous Willard L. Thorp Oscar Spencer Giampietro Morelli European Economic Community Special Fund Franco Bobba Paul G. Hoffman Frederic Boyer de la Giroday Clinton A. Rehling Robert Triffin Claude de Kemoularia European Investment Bank Union Africaine et Malgache de Giandomenico Sertoli Cooperation Economique Guy Trancart M. Foalem Inter-American Development Bank Ignacio Copete-Lizarralde World Health Organization Robert B. Menapace T. Graydon Upton Dr. Alan Penington 65 OFFICERS OF THE BOARDS OF GOVERNORS AND JOINT PROCEDURES COMMITTEE FOR 1964-65 OFFICERS Chairman ............................... Ethiopia Vice Chairmen . .......................... Brazil Norway JOINT PROCEDURES COMMITTEE Chairman ............................... Ethiopia Vice Chairmen . .......................... Brazil Norway Reporting Member ....................... Korea Members ............................... France Germany, Federal Republic of India Ivory Coast Kuwait Liberia Libya Mauritania Mexico Morocco New Zealand Panama Thailand United Kingdom United States Yugoslavia 66 PRINCIPAL OFFICERS October 1, 1964 GEORGE D. WOODS FEDERICO CONSOLO President Special Representative for United Nations Organizations J. BURKE KNAPP V ice President S. R. COPE Director of Operations-Europe GEOFFREY M. WILSON Vice President HAROLD N. GRAVES, JR. Director of Information SIMON ALDEWERELD Director of Technical Operations HOWARD C. JOHNSON Director-New York Office A. BROCHES General Counsel MICHAEL L. LEJEUNE Director of Administration RICHARD H. DEMUTH M. M. MENDELS Director of Development Services Secretary IRVING S. FRIEDMAN JOHN D. MILLER Economic Adviser to the President Director-European Office JOHN H. ADLER PIERRE L. MOUSSA Director-Economic Development Director of Operations-Africa Institute ESCOTT REID GERALD M. ALTER Director of Operations-South Asia Director of Operations-Western and Middle East Hemisphere LEONARD B. RIST I. P. M. CARGILL Special Adviser to the President Director of Operations-Far East ORVIS A. SCHMIDT ROBERT W. CAVANAUGH Special Adviser to the President Treasurer DRAGOSLAV A VRAMOVIC BERNARD CHADENET Assistant Director-Economic Department Associate Director of Technical Operations (in charge) 67