53392 SUMMARY PROCEEDINGS 12th ANNUAL MEETING OF THE BOARD OF GOVERNORS INTRODUCTORY NOTE TWELFTH Board of Governors of TInternational ANNUAL MEETING of the and Development was heldthe HE Bank for Reconstruction in Washington, D. c., September 23-26 (inclusive) under the Chairmanship of Miguel Cuaderno, Sr., Governor of the Central Bank of the Philippines. The Twelfth Annual Meeting included four plenary sessions, two of which were held jointly with the International Monetary Fund, and two meetings of the Joint Procedures Committee. There were, in addition, the First Annual Meeting of the International Finance Corporation, the proceedings of which have been issued sepa- rately; and a joint informal discussion on "Current Problems of Credit and Fiscal Policy" in which Mr. William McChesney Martin, Jr., Chair- man, Board of Governors of the Federal Reserve System, Mr. H. V. R. Iengar, Governor, Reserve Bank of India, Mr. Juan Pardo, Minister of Finance, Lima, Peru and Sir Dennis Robertson, Professor of Political Economy, Cambridge University, participated. M. M. MENDELS Secretary INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D. C. November 30, 1957 TWELFTH ANNUAL MEETING FINAL S C HED.ULE Saturday SEPTEMBER 21 3 :30 p.m. -JOINT Procedures Committee Monday SEPTEMBER 23 9: 15 a.m. - Address by the President of the United States 10:00 a.m. -JOINT BOARDs-Opening Session - Opening Address by Chairman -Joint Procedures Committee Report I 12:00 noon-BANK BOARD-Annual Address-President of Bank Tuesday SEPTEMBER 24 10:00 a.m. - FUND BOARD - Annual Address - Managing Director of Fund 11 :00 a.m. - FUND BOARD - Joint Procedures Committee - Report II - Annual Report Discussion 3:00 p.m. - FUND BOARD - Annual Report Discussion (continued) Wednesday SEPTEMBER 25 10:00 a.m. -BANK BOARD-Joint Procedures Committee-Report III - Annual Report Discussion 3 :30 p.m. -JOINT Informal Discussion Thursday SEPTEMBER 26 9:30 a.m. -JOINT Procedures Committee 11:00 a.m. -JOINT Boards-Joint Procedures Committee-Report IV - Comments of President of Bank - Comments of Managing Director of Fund - Closing Session ii CONTENTS Page ADDRESS BY THE PRESIDENT OF THE UNITED STATES, DWIGHT D. EISENHOWER ...........·· OPENING ADDRESS BY THE CHAIRMAN, MIGUEL CUADERNO, SR., GOVERNOR OF THE CENTRAL BANK OF THE PHILIPPINES. . · . · . . . . . . . . . · . . . · . . · · . . . . . . . · . . · · . . · . . . . · · . · . 3 ANNUAL ADDRESS BY EUGENE R. BLACK, PRESIDENT OF THE BANK............... . . . . . . . . 7 COMMENTS OF PRESIDENT OF BANK ON DISCUSSION OF ANNUAL REPORT..... ......·····... 12 CLOSING ADDRESS BY THE CHAIRMAN. . · . · . · . · . · . . . . · . . . . . . . . · . . . · · . . · · . . · · · · . . · · · . · · 14 COMMITTEE REPORTS: JOINT PROCEDURES COMMITTEE REpORT No. I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ANNEX I ........ Provisional Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ANNEX II ....... Provisions Relating to the Conduct of the Meeting. . . . . . . . . . . . . . . . . . . 18 ANNEX III ...... Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 JOINT PROCEDURES COMMITTEE REPORT No. IIIl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 JOINT PROCEDURES COMMITTEE REPORT No. IV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS BETWEEN ELEVENTH AND TWELFTH ANNUAL MEETINGS: NO. 104 ..... IFC Agreement with United Nations...................................... 23 NO. 105 ..... Increase of Subscription of Israel to Capital Stock of Bank. . . . . . . . . . . . . . . . . . . 23 NO. 106 ..... Terms and Conditions on which Ghana shall be Admitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 NO. 107 ..... Increase in Subscription of Haiti to Capital Stock of Bank. . . . . . . . . . . . . . . . . . . 25 NO. 108 ..... Terms and Conditions on which Saudi Arabia shall be Admitted to Mem- bership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 NO. 109 ..... Terms and Conditions on which Ireland shall be Admitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 NO. 110 ..... Increase in Subscription of Paraguay to Capital Stock of Bank. . . . . . . . . . . . . . . . 29 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS AT TWELFTH ANNUAL MEETING: NO. 111 ..... Financial Statements, Auditors' Report and Budget. . . . . . . . . . . . . . . . . . . . . . . . . . 30 NO. 112 ..... Terms and Conditions on which the United Kingdom of Libya shall be Admitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 NO. 113 ..... Terms and Conditions on which the Federation of Malaya shall be Ad- mitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 NO. 114 ..... Terms and Conditions on which Tunisia shall be Admitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 NO. 115 ..... Terms and Conditions on which Morocco shall be Admitted to Membership in the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 NO. 116 ..... Increase in Subscription of El Salvador to Capital Stock of Bank. . . . . . . . . . . . . . 36 NO. 117 ..... Increase in Subscription of Honduras to Capital Stock of Bank. . . . . . . . . . . . . . . 36 NO. 118 ..... 18% Capital Subscriptions of the Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNUAL MEETING............ ..·... 38 OBSERVERS AT TWELFTH ANNUAL MEETING............. .... . . . . . . . . .. .. .. .... .... .... 43 OFFICERS OF THE BOARD OF GOVERNORS AND PROCEDURES COMMITTEE FOR 1957-58..... .. .. 44 1 Report No. II related to business of the Fund. iii ADDRESS BY THE PRESIDENT OF THE UNITED STATES OF AMERICA DWIGHT D. EISENHOWER r IS A GREAT PERSONAL PRIVILEGE to welcome to our first time in history, dreams of a better material life country and to our capital city the Governors of have become everyday hopes among millions accus- the International Bank, the International Monetary tomed to poverty. And, for the first time in history, Fund, and the International Finance Corporation. We the aim of fostering higher living standards has are honored by the presence of such distinguished become a central concern of governments everywhere company in our midst. I think that in these days and and of the international community. This is an aim times it would not be amiss for me to say that the we all wish to advance. welcome I assure you is not perfunctory. We are Our economies can help generate an ever-better lot delighted you are here. We are more than pleased that for our people if we are both forward-looking and you have again assembled to tackle problems through prudent in our private and public policies. The task your daily meetings that are important to the whole ahead, it seems to me, is to strengthen those policies world. So I assure you that the welcome, both officially that foster healthy economic growth. We must have and personally, is a very warm and sincere one. growth that does not endanger stability. We must As the chief financial officers of your own countries have stability that does not throttle growth. and as the Governors of your great financial institu- During your sessions here you will doubtless be tions, you must deal with some of the most vital and concerned with this whole range of problems. For my perplexing problems facing our generation. After a part, disclaiming-and perhaps needlessly-any idea quarter century marked by general wars and by that I am either a trained economist or financial depression, the nations of the world are now engaged expert, I shall not make the mistake of attempting to in a great effort to win for their peoples sustained counsel you on these technical issues. I leave their prosperity in peacetime. I might remark here that probing in your competent hands. But may I say this. when I told someone I was going to appear before this Among the basic problems on your agenda, none is body they suggested to me that I make this observa- currently more pressing than inflation-the tendency tion: The world through this quarter of a century of to rising prices. While this tendency is stronger at tribulation proved that it could live with and survive some times than others and in some places more than adversity. He said now their problem is to show us others, it is a world-wide phenomenon today. Par- and teach us how to live with prosperity. In all our ticular aspects may differ among countries, but lands there is a surging confidence that steady eco- thoughtful men everywhere recognize inflation as a nomic growth can be reality, and that the good things threat to sound economic growth. Wise and coura- of life can be made available in a growing stream to geous leaders in every land are sounding a call to their all our peoples. fellow citizens to join in the defense of their currencies. In recent years, the world has experienced unprece- It is a call that must be heeded, for inflation not only dented economic growth. Investment, productivity destroys the savings, pensions, and insurance policies and trade have expanded on a scale and at rates not of the frugal, its aftermath can be a depression which previously known. The results are evident all over the saps the strength and vigor of government, of industry, globe in higher living standards. In our age, for the and of people. 1 Aside from the many technical phases of inflation, We all recognize that sound domestic policies are there seem to me to be certain common-sense aspects the essential keystone to the avoidance of inflation. of the matter which we must squarely face. In the developing of such policies, the international First, how many of our personal and governmental financial institutions which are meeting here this week demands and desires can we safely expect our econo- have been playing a significant role by giving valuable mies to satisfy at one time. Inflation may appear to advice and by extending financial assistance to their some as the easy way to avoid this question. At times members. the world may try, through financial and monetary The less well-developed countries of the world are devices, to obtain more from its economic resources often faced with special economic problems. We all than can be produced, whether for current purposes recognize that basically the impulse for meeting these or for capital investment. The history of recent times problems and for building up a country's production reaffirms that in reality this cannot be done. We must come from within. Economic development is a cannot successfully put a continued overload on our homespun product, the result of a people's work and resources. Rising prices have confirmed this axiom. determination. It is not a product that can be imported Demands on our economies come from both public from some other country. However, a helping hand and private sectors. In dealing with inflation, a from abroad can often be of the greatest significance country's policies must relate to excessive demands in furthering economic development by providing from both these sectors. For those of us charged with technical or financial assistance. In this great effort, public responsibilities, this means conscientious efforts the resources and experience of private investment to limit government demands on the economy-a should be mobilized to the maximum extent. We look, difficult task in this day of heavy defense outlays. moreover, to the organizations represented here to To central bankers we must look for conscientious give encouragement and assistance to the efforts of efforts to maintain credit policies that are consistent their member countries to achieve a better life for with sound economic growth. To fail to do these their peoples. things is to ask the economy to carry more than it I have mentioned the vital importance of promoting can. It will react to this pressure in rising prices. If a sound economic base for better living for all our unchecked, this leads to reaction and downturn and peoples. I am sure you realize that there is another all the evil consequences we know so well. It may be reason for maintaining strong economies. This is the well occasionally to recall the old story about the dog need to be certain of our security in this troubled that jumped off the bridge to get the bone he thought world. he saw in the water, thereby losing the one he had Sound economies are the backbone of successful in his mouth. defense. They are essential not only to the maintenance Aside from this first question of the impetus to of our military establishments but also to the creation inflation from overloading the economy with excessive of those conditions of well being which are in a very demands, there is, second, how much do we as indi- real sense a primary line of defense for the entire vidual nations pay ourselves for what we produce. If free world. our efficiency in production and the payments which It is important that we remember that what each of we make for productive efforts of all sorts rise in step us decides in his own country affects the fortunes of in coordination, there is no impetus to rising prices. the rest of us. Each country can render a great service But if our efficiency does not increase, if our produc- to every other country by keeping its own economic tivity does not rise, we as nations will tend to fall into house in order. The world has shrunk and our sense the costly error of overpaying ourselves for the work of interdependence is keen. So, too, must be our sense we do. Along that road, as so many countries are of cooperation. That nations choose to act coopera- again discovering, lies the spur to further inflation. tively through these great international organizations 2 is ground for confidence that your decisions here and increased understanding and cooperation in the years at home will be wise and sound. ahead. Your labors can hasten that day when all men And so, I salute the great accomplishments you and can live and work in what we may describe as a your organizations have achieved. I trust your days in neighborhood of the nations. Washington will be most pleasant and productive of OPENING ADDRESS BY THE CHAIRMAN, MIGUEL CUADERNO, SR., GOVERNOR OF THE CENTRAL BANK OF THE PHILIPPINES AT THE OPENING OF THIS ANNUAL MEETING, I wish, threatened to aggravate the world-wide inflationary f i first of all, to express on your behalf the deep conditions over which many of us felt deeply con- appreciation we all feel for the generous hospitality of cerned even as we met here last year. The common the Government of the United States of America and problem in most countries was the mounting pressure for the heart-warming greeting of President Eisen- on prices and balances of payments in the course of hower. And I wish, also, to express our thanks for the their economic expansion which compelled them to friendly welcome that has been extended to all of us, make difficult internal adjustments. It is gratifying to the Governors, our alternates and advisers, and to our note that in spite of a continued proliferation of distinguished observers and guests. In turn, speaking policies of restraint, no large-scale attempts at tighter for you, I welcome with great pleasure Dr. Per quantitative restrictions on trade and exchange were Jacobsson, the new Managing Director of the Fund, resorted to. Many member countries utilized the and the representatives of our new members, Ghana, resources of the International Monetary Fund to tide Ireland, Saudi Arabia and the Sudan. them over their short-term balance of payments I know that it is not in recognition of personal difficulties. merit that you have chosen me to preside over the Led by the United Kingdom and the Scandinavian Annual Meeting of the Boards of Governors. Instead, countries, many industrial countries adopted monetary you have given recognition to my country and its and fiscal policies of restraint during 1956. Although devotion to international cooperation. It is for this these measures did help to repress excessive buoyancy reason that I convey to you the profound gratitude of and to relieve accompanying strains on prices as well the Republic of the Philippines for the honor bestowed as on balances of payments, by early 1957 new infla- on her when you elected me to be the Chairman of tionary pressures had again emerged, rendering the Boards of Governors of the International Bank uncertain the outlook for prices, production and trade for Reconstruction and Development and of the in the industrial nations. International Monetary Fund. And now, I should like It is unfortunate that economic disturbances that to take advantage of the traditional privilege of the are often triggered by tensions and investment un- Chairman to express his views on matters of concern certainties among the industrial nations are often to the 64 countries which are members of our two translated into the most violent developments for the outstanding international financial institutions. countries that are underdeveloped. During the past twelve months the unsettling With a few exceptions the rate of capital formation political events in some parts of the world have in underdeveloped countries continues to be influenced 3 largely by the demand for primary products which behind in the procession of economic progress or be these countries produce for the industrial markets of content to live from one balance of payments crisis to the world. The volume of trade in these primary another. The only way out is to achieve the momentum products has fallen in relation to total world trade that is indispensable to development. This means a with prices exhibiting very little change. On the other rate of investment that will support adequate growth hand, prices of the capital equipment and manufac- and an economic pattern that provides both internal tured consumer goods imported by the underdeveloped flexibility and the strength to adjust to the changing countries have shown continuous increases as a result structure of world demand. of the cost-price inflation prevailing in the manu- But we all know that such an economic pattern facturing countries. requires great resources to finance development. It is reported by the Fund that while in 1956 there Where domestic savings are small and where the was in general little change in the average export foreign exchange reserves at a country's call are only prices of primary producers, the export prices of enough for its trade and payments, the provision of industrial countries rose by about four per cent; that additional resources for basic development needs the value of the exports of industrial countries in- involves great sacrifices in consumption and even in creased from 1955 to 1956 much more than that of less urgent investment. In the attempt to secure the non-industrial countries; and that the value of exports additional resources through the creation of credit, from industrial to non-industrial countries rose much which underdeveloped countries unfortunately feel more than that of exports in the opposite direction. impelled to do, they risk the stability of the price and The Fund reports also that the export prices of monetary structure itself. The greater availability of manufacturing countries and the increase in trans- capital from abroad would, of course, facilitate portation costs produced a deterioration in the terms development. It would not, however, obviate the need of trade of primary producing countries which for sound financial policies in the underdeveloped probably amounted to some four to five per cent, countries. although there were considerable differences in the Even as we are gathered here, many underdeveloped changes in the terms of trade of various industrial countries find themselves in dire straits. With foreign countries. exchange reserves already depressed to dangerously The squeeze reSUlting from the deterioration in low levels, their ability to grapple with the economic their terms of trade has made it extremely difficult for ills that plague their very existence and to reach a underdeveloped countries to pursue their goal of a stable and balanced economic structure look anything more viable pattern in their economies. but hopeful. Yet, as President Black of the Bank said As a matter of record, it has become almost an recently, "Let us make no mistake. Economic develop- annual ritual for the Fund to report that significant ment in these countries today is not just a process; it economic progress has taken place in many countries. is also an idea-a rallying cry for more and more But any news of major improvements in the economic millions who are aroused against their traditional position of underdeveloped countries is exceptional poverty." indeed. Yet these are the very countries where eco- It is true that some of the countries facing the nomic development at an increasing pace is vitally problems of development today have not followed the necessary if the ever-growing gap in living standards soundest or most adequate monetary and fiscal between the developed and the underdeveloped policies that are within their ability to follow. The countries is to narrow in the interests of external present predicament of some underdeveloped coun- equilibrium and world peace. tries clearly demonstrates the tremendous strains on The underdeveloped countries are facing a serious limited resources of too rapid a pace of development dilemma. They must either allow themselves to fall by methods that induce inflationary fevers. Neither 4 have some of them fully exploited the production These regional or group policies need to be recon- potentials that lie within their grasp in the form of ciled, it seems, with the Fund's policies for the fertile land, forests, mineral resources, and their large re-establishment of a fully multilateral world trading reservoirs of untapped labor. system. Unless the protectionist sentiments which still Whatever their own mistakes have been, there run high among some of the metropolitan countries remain many factors over which they have no control are done away with, the underdeveloped countries will and which bear heavily on them in the pursuit of their be driven to perpetuate the use of trade and exchange economic goals. These factors, external to these controls to maintain their payments position, and to countries, are often the root causes of internal diffi- enable them to develop their economies. I am con- culties. I may mention as one of these factors the trade vinced that a multilateral trading system, buying and policies of the industrial nations. As has been pointed selling in the best markets, is in the interest of the out on more than one occasion by the Executive underdeveloped as well as the developed countries. Board of the Fund, the protectionist trade policies of But the underdeveloped countries cannot trade on such the highly developed countries "continue to embarrass a basis if there are restrictions and discriminations other countries, especially those which are under- against their exports in the great industrial countries. developed." There is need of a more understanding As urged by the Fund 1957 Annual Report, "coun- trade policy with respect to the underdeveloped tries in a strong surplus position, whilst applying such countries, especially by those countries which have anti-inflationary policies as are appropriate to their shown great magnanimity in extending aid to them. circumstances should seek not to apply them in such It is clear that the solution to the problem of a way as to make it more difficult for other countries economic development does not lie solely in the to correct their positions. They should, accordingly, pursuit by individual countries of domestic monetary pay special attention to the contribution which they and fiscal policies to keep external accounts in balance. can make to the removal of both their own difficulties The solution to the problem of development with and those of other countries through such measures stability is the collective responsibility of both devel- as reduction of trade barriers and the encouragement oped and underdeveloped countries. of capital exports." While we still have these unsolved trade problems, I would venture to suggest that accelerated meas- the establishment of a common market has been ures be taken to place payments restrictions on a proposed by six leading industrial countries of non-discriminatory basis, especially in the case of Western Europe. This event is being looked upon with countries which belong to preferential tariff systems some concern by countries outside continental Europe. or regional common markets. Twelve years after the The raw materials-producing countries should feel end of World War II we find that the world's key particularly concerned about the preferential position currencies, those that are most widely used in inter- which may be given to the overseas territories of the national payments, are still not freely convertible in common market nations since these territories are to terms of one another. Worse yet, there is the ever- some extent their competitors. By and large, it would present possibility that distinctions by currency area seem that the common market would work at cross may be employed to reinforce tariff preferences and purposes with the Fund's main objective, since it differential tariff rates. It is time, it seems, that might "revert to a strict balancing of payments within decisive steps were taken to end the increasingly its own narrow limits and thus to a merely regional, unjustifiable discriminations by regions and by though somewhat expanded, bilateralism." It could currency areas. easily become the instrument for perpetuating restric- I am confident that we can look to the Fund for tions and discriminations against countries outside constructive leadership in securing a well-balanced its orbit. world, maintaining trade at a high level without 5 discrimination on the basis of countries or currencies. countries urgently need. Facilities such as schools, I know, of course, that a multilateral system of world hospitals, housing, waterworks, etc., represent a kind payments cannot be introduced overnight. Countries of Social Overhead which the underdeveloped coun- must, of course, have sufficiently realistic exchange tries need before other types of economic activity can rates not to upset trade relations, but equally, if not begin to move forward rapidly. These countries are more important, is the need for measures in the field unable to secure loans from any foreign or inter- of fiscal and credit policies to ensure the internal national financial institution on account of the fact stability, without which equilibrium in the external that these projects are largely non-self-liquidating. field is impossible. Only an institution authorized to make grants-in-aid Both the World Bank and the Monetary Fund have and acting through international channels could meet gone a long way in rendering assistance to their the requirements of such countries. member countries. Under President Black, the needs It is encouraging to learn that the $300 million of the underdeveloped countries have become the Development Loan Fund sponsored by President paramount concern of the Bank. Eisenhower has been approved by the United States I am glad to note the progress which has attended Congress. This plan offers some relief for the intense the efforts of President Black in obtaining the free use capital needs of the underdeveloped countries in their of the Bank's 18% capital, and my Government struggle for development in a world characterized by extends its full support to his efforts. I am able to capital scarcity. announce that the Government of the Philippines has Fellow Governors: In concluding my statement at decided to release the whole of its 18% capital sub- this, our opening session, may I plead as I have always scription, equivalent to $2.7 million, in five equal done in previous annual meetings, for a more sympa- annual installments. This release will be made available thetic understanding of the problems of the under- in dollars and will therefore be of maximum usefulness developed countries. All these years, we have re- to the Bank. iterated our faith in the Bank and the Fund, which The Economic Development Institute which the have focused attention on such problems and have Bank started in 1956 is proving to be of great benefit suggested means for solving them. We are aware that to the underdeveloped countries. It is a unique without these institutions we would have been opportunity, indeed, that this Institute offers to those tragically handicapped in our efforts to deal with the who are sent to it by the underdeveloped countries. problem of economic development in an environment A broad perspective of the problems of economic of financial stability. Year after year, we have seen development is acquired, and the effectiveness in their operations grow in magnitude and widen in carrying out new responsibilities generally improves. scope. We are confident that their accomplishments in Under Mr. Jacobsson and Mr. Cochran the Fund has the future will be even greater than they have been in become the trusted friend and adviser of all countries. the past. We expect of them the foresight and boldness It has been a never-failing source of counsel on that our dynamic world requires. Let us not hesitate monetary and exchange problems and policies. Its to ask of them the service that we need, being equally timely financial assistance has been most helpful, in a prepared to give them the cooperation they require. concrete way, to many member countries during these It is through such intimate collaboration that we shall troubled times. succeed in meeting the difficult problems of an While existing institutions can be of assistance in expanding world in whose prosperity all nations, the industrialization of the underdeveloped countries, developed and underdeveloped, must share. they will not be able to meet what many of these 6 ANNUAL ADDRESS BY EUGENE R. BLACK, PRESIDENT OF THE BANK T IS A PLEASUREto again welcome you to Washington. have lent over $214 million. Asia, which in earlier I I would like to extend a special word of welcome to years presented few opportunities for Bank lending, the representatives of our four newest members-The has received more loan capital in the past 15 months Republic of Ireland, Saudi Arabia, Sudan and Ghana. than any other continent. We now have 64 member countries, 12 of which have There was also increased emphasis on lending for become independent nations since World War II. industry. In support of India's privately-owned steel This is the ninth of the Bank's Annual Reports that industry, the Bank lent $20 million to double the I have been privileged to present to you. On the steel-finishing capacity of the Indian Iron and Steel Biblical precedent-and even on the economists' Company. This follows up the $75 million loan the conventional reckonings of business fluctuations-the Bank made last year to Tata Iron and Steel Company fat years should by now be well behind us, and the which will help increase capacity at Tata's main works lean ones should be with us. There were certainly by 60%. Another loan is financing a strip mill at the times during the past year when events gave cause for Kawasaki Steel Corporation in Japan. Large loans in some anxiety. Happenings in the Middle East threat- Australia, Iran and Italy will also be partly used to ened to bring major economic dislocation and, at promote the growth of industry. Although basic times, the world outlook has been bleak. services will no doubt continue to claim the lion's In some countries political instability has slowed share of the Bank's activities, it seems that with the down the rate of growth; in others, failure to maintain present world-wide shortage of capital our funds will sound economic and fiscal policies has frustrated be in increasing demand for large-scale industrial hopes of progress. investments. Prices are, on the whole, still rising-slowly and In the field of electric power, the year's largest loan unobtrusively in some countries, but at an alarming was made to Uruguay. This will help to build a pace in others. This movement has continued to eat hydroelectric project harnessing important water away the value of money. In nearly every part of the resources in the interior. With the aid of this and two world, investment demand has been high with the earlier loans, Uruguay will increase its total generating supply of savings insufficient to meet it. In these capacity by over 100 per cent. Other power loans circumstances interest rates have climbed to new peaks. included finance for the construction of three hydro- Yet the picture as a whole shows further progress electric stations in Chile and completion of a major and continued high production. In many countries in hydroelectric undertaking on the Danube in Austria. all parts of the world real income remains at an Since the end of the year under review, the Bank has all-time record. International trade and export earn- lent $66 million for the large Yanhee project in ings have grown at a very rapid pace, thus providing Thailand. one of the most important foundations for further We have also continued to lend for transport. Two borrowing abroad. of the year's loans are helping to open up remote In this setting of continued economic expansion, I areas of Africa. In Ethiopia new roads are being built can once more report a large amount lent by the Bank to penetrate rich agricultural land. A network of and important additions to its capital resources. dependable highways already completed has contrib- During the fiscal year which ended last June we again uted to doubling the volume of Ethiopia's principal made loans totaling nearly $400 million. And already exports. In Ruanda-Urundi, lying in the very heart of in the three months that have elapsed since then, we Africa, a loan will help to improve transport services 7 radiating from the administrative capital. In the Another source of finance upon which we were able current fiscal year the Bank has lent $90 million for to draw was our 18% capital. During the year we improvements on the Indian railways. received more than $100 million from new releases- Two loans for air transport will help Australia and about the same amount as in the previous year. With India to acquire the latest types of aircraft for their our rate of disbursements continuing to rise and in air lines. At the same time these loans helped the the interests of the further expansion of the Bank's borrowing countries to widen their access to sources lending operations, I felt it my duty to draw attention of private capital abroad. Both were linked with the to the large sums that had not yet been released. In raising of funds in the New York capital market by subsequent discussions that we have had with member these two countries. governments, we have on the whole found growing Finally, I ought to make brief mention of our loans understanding of the Bank's position and increasing for agriculture. These provided substantial sums for recognition of the need to make the whole 18% farm improvement in Italy. They furnished foreign capital available to the Bank as soon as possible. If I exchange some of which was used for imports of farm seem to return to this subject unduly often, it is equipment in Australia. Smaller but nevertheless because of my conviction that ready access to the significant sums are providing more plentiful farm 18% capital was one of the basic assumptions on credit in Costa Rica and financing land reclamation which the Bank was founded. It is vital to the full in Japan. development of its strength. This volume and diversity of lending would not Another important source of funds during the year have been possible without large additions to our was, of course, our net earnings. This year's figure borrowed funds. In fact, during the past year we of $36 million was, in fact, a record. borrowed nearly $325 million-more than in any Apart from our lending we have continued to previous fiscal year. We re-entered the New York receive, and to meet to the best of our ability, a market on a substantial scale for the first time in three variety of requests for assistance of other kinds. I years, and sold two bond issues of $100 million each. might perhaps mention one of a new and interesting We also sold a United States dollar bond issue, in a nature. The potentialities of atomic fission for meeting principal amount of $75 million, entirely outside the part of the mounting need for power in countries with United States. Moreover the Bank obtained a loan high-cost conventional fuels have been discussed at from the Swiss Government equivalent to nearly length both at our meeting last year and in many $50 million. This was our first direct borrowing from other places. Recently we completed arrangements a government. In addition, shortly after the end of the with the Italian Government to undertake a joint year we borrowed $100 million from the central bank study of the commercial feasibility of producing of Germany. electric power from atomic energy in southern Italy It speaks well of the Bank's financial standing and of the best site and design for a reactor. I believe around the world, I think, that apart from its bond that a thorough and impartial study of this kind will sales within the United States, it has within the last not only be valuable for Italy but will also provide 15 months been able to place its securities in more data useful in assessing the possibilities of using atomic than 20 other countries in an amount equivalent to energy elsewhere. $222 million. In addition, I can announce to you that The debates of the next few days will cover some we have now made another agreement with the central very timely and important matters. Doubtless you will bank of Germany under which we will borrow $75 be discussing the shortage of capital, particularly in million. Even without taking this transaction into the less developed countries. Stress will be put on the account, more than one-half the Bank's outstanding urgent need for more external capital for the develop- obligations are now held outside the United States. ment of the less developed lands. There will also be, 8 I am sure, considerable discussion of the problems of productive investment must be balanced with con- inflation. I would like in the time left to me today to cessions to the traditions of the people and with a try to put these matters in perspective. legitimate concern for national defense. These subjects occupy our thoughts today because Governments cannot afford to take great risks with they are basic to the difficulties which loom so large the food supply in order to build steel mills with labor in so many of the countries represented here. We all driven from the land; there must be a balance between feel the pressure of investment demands on the industry and agriculture. And free governments cannot limited supply of savings available for investment; the seal themselves off from the world and demand of need to increase foreign exchange earnings and the their people great sacrifices in the name of self- difficulties that stand in the way; the many competing sufficiency; they must earn the trade and investment and conflicting claims which governments everywhere of the outside world to provide goods and services for today have to reconcile with the limited means at their development programs; they must balance invest- their command. ment for export with investment for the home market. In large part, all of these problems are signs of The largest single cause of imbalance is the volume growing pains-the natural consequence of a decade of unproductive investment which governments feel of unprecedented growth in the world and of the they have to undertake. One obvious item is military compelling desire to go on growing. While circum- expenditure. Many countries today are spending one- stances differ from country to country, some govern- quarter or one-third or more of their budgets on arms, ments are clearly running out of breath simply because and often the foreign exchange drain is even more they have been running very fast-sometimes, indeed, burdensome. too fast. From a strictly economic point of view, It is a trite observation to say that this is a sad therefore, today's problems need not be cause for commentary on the progress that humanity has made undue discouragement or alarm. toward a better and a fuller life. The hard facts are, The shortage of development capital and the dangers however, that many countries are today exposed to of inflation are more serious when viewed as political threats to their security; defense priorities are heavy; problems. The past decade was one of record promises the need for sizable military establishments make as well as record achievement. If practice does not difficult and courageous choices unavoidable. Where continue to live up to promise, at least in part, many these circumstances exist, one must refrain from governments may face stormy weather. If the economic criticism. course is fairly easy to chart, holding the ship of state But do they everywhere exist? Are there not too on that course is going to require some difficult and many governments today who, for reasons no more courageous decisions. valid than prestige, or ostentation, are channeling into Those decisions, in my view, relate primarily to expenditure on arms scarce resources which are thus questions of balance-balance between consumption denied to the needs of development? Where this is and investment; balance between productive and non- happening I think that great risks are being taken with productive investment; balance between industry and the hopes and expectations of their people for eco- agriculture, balance between investment to increase nomic growth. export earnings and investment for the home market. There is another, equally large, category of non- People will not voluntarily save for tomorrow if productive investment causing imbalance in the less they cannot today see some improvement from the developed countries today which might be labeled, investment of yesterday; in a free society there must simply, waste. be a balance between rising consumption and rising Some waste is inevitable in any development investment. And free governments cannot give invest- process. Perhaps considerable waste is inevitable in ment an overriding priority over all other concerns; those countries which have recently achieved their 9 national independence and are experimenting with the today is to fix the price of utility services at a figure forms of free, self-government, while being at the same which, in fact, entails a subsidy for the benefit of those time weighed down by a tremendous load of legitimate consumers best able to pay. This approach seriously development demands. distorts development. It remains true, however, that every ill-planned or The economic facts of life may not be the most badly-executed development project not merely con- inspiring facts with which to persuade people. They sumes scarce resources; it also undermines the faith may not always be the most important facts. But of people in the ability of free governments to produce decisions of policy, reached without giving them due concrete results to buttress their promises. Power weight, will almost certainly lead to a maximum of plants so built that they operate far below their waste and distortion and a minimum of higher living capacity; new highways constructed at the expense of standards. failing to maintain old ones; new farm land that is A third, and perhaps most important, cause of cleared and irrigated and then left to lie fallow; social imbalance in the development of the less developed expenditure undertaken without the talent or the countries today is simply the fact that some govern- resources to make the service useful-all these things ments are trying to do too much. The serious threat are monuments to waste. of inflation makes it extremely dangerous for govern- I frankly think a great deal of this kind of waste ments to extend their activities beyond those areas stems, not from a lack of knowledge, but from where only government can provide the necessary inadequate weight being given to the evidence of capital. financial and economic experts in the countries con- Particularly, I deplore the decisions of governments cerned. It stems from decisions based more on short- which tend to reduce investment in their own legiti- range political considerations than on economic facts. mate spheres of activity in order to branch out into One area in which this tendency prevails to a fields where private enterprise, domestic or foreign, is regrettable extent is the field of public utility financing. willing to do the job. And it is equally harmful where Where there is no domestic bond market, the choice whole areas of economic activity become paralyzed between subsidies and adequate rate structures can be because governments cannot make up their minds critically important in the context of balanced develop- whether or not to allow private enterprise do a job ment. In one or two countries, for example, a good it is willing to do. case could be made that subsidies to government- What government does not already have its hands owned utilities are being financed at the cost of full without reaching out into new fields? What reductions in the government's education program. government has so much foreign exchange that it can Actually less is being spent on education in these afford to bar a responsible foreign investor? countries today despite an increased national budget. There is no ideological argument here. Just common At the same time money is being used to subsidize sense. No country ever achieved balanced economic public utility services-to provide cheap power to growth without substantial help from the private industries which, without any appreciable effect on entrepreneur-domestic and foreign. By not courting their own costs of production, are fully capable of his help, governments in the less developed countries paying the economic cost of these services. This are simply increasing their already onerous burdens. money might better have been used to build and staff For the industrialized countries, too, in their new schools. relations with the less developed world, the big When the choice is as clear and as compelling as questions today are, in my opinion, questions of this, I cannot understand why it is so difficult for balance. And here again difficult and courageous governments to accept adequate rate structures. Yet decisions are needed to prevent imbalance from aggra- the wide-spread tendency in underdeveloped countries vating development problems further. 10 The industrialized countries, which have contributed developed lands. The application of impartial stand- the bulk of the Bank's subscribed capital, have done ards of economic and financial worth are just as so, I believe, because they have felt they had an necessary in the administration of development aid interest in raising living standards in the less developed as they are in the planning of domestic investment lands-an enduring interest apart from short-range programs. political or commercial interests. Over the long run it In this respect, as well as for many other reasons, is only by helping to raise living standards that they the very large increase in private foreign investment can hope to influence events in the underdeveloped in the less developed countries over the past two years world in directions compatible with their own security is very encouraging. Private investment is almost and beliefs in individual freedom. always less wasteful of talent and resources than is But this is a complex argument. And among the government investment. Private investors know from mass ofthe people in the industrialized countries today experience how much more than capital is needed to the meaning of events in the less developed lands is make the complicated machinery of development only vaguely appreciated. While things like foreign work. The technical and management skills they bring aid and foreign trade are more or less accepted policy with them set an invaluable example in the techniques aims, the challenge of the underdeveloped world is, which can be used to keep waste at a minimum. perhaps understandably, very much on the periphery I do not underestimate the degree of skill and of their lives. This lack of public understanding has resolution necessary to keep all these problems of tended, I think, to obscure and distort the real purpose balance within bounds. My plea is that governments of development aid. recognize the need for balance so that development It is easy to describe the interests of the industri- may result in higher living standards and may flourish alized West in the less developed countries in terms of alongside free institutions. defense or of diplomacy or of new markets and If governments become the prisoners of their own, sources of supply. It is easy to argue that if there isn't more or less arbitrary development targets, in all "foreign aid", then there won't be allies or as much probability something will have to give under the money to buy a given line of exports. pressures of inflation and the impatience generated Now there is some truth in all these assertions. because practice is not living up to promise. And Ultimately, development aid is related to all these perhaps the greatest danger is not that development interests. But in the long run it is only related insofar will give but that government by the consent of the as development aid helps to raise living standards and governed will be abandoned. bring about the stability and confidence on which At the same time, if governments do not have clearly lasting alliances and lasting commercial relationships defined development goals-are willing only to talk are built. about the objective of higher living standards or to It is the achievement of higher living standards, not subordinate that objective to short-range policy con- export promotion, which should guide development siderations-then our task is an impossible one. The policy. The one leads to a natural market; the other attainment of higher material living standards, like often to only a temporary, subsidized market. It is most other worthwhile things in life, has a price; it the achievement of higher living standards, not a can only be achieved if governments, leaders and desire to win allies or to gain an advantage in diplo- people are willing to pay the price. matic maneuver, which should guide development For my part, it will be my aim that the Bank should policy. The one leads to a solid foundation of mutual make, over the years ahead, a continued and significant respect; the other, only to temporary accords. contribution to the capital requirements of that basic And waste, too, should be a primary concern of the development on which higher living standards depend. industrialized countries in their dealings with the less If tight money market conditions persist, funds will 11 inevitably become more expensive, but I remain But at most, ours is a supporting role. The real hopeful that, in the future, as in the past, international problems are yours and the hopes of millions and savings will continue to flow to the Bank on a scale millions of people hang on your ability to resolve that will ensure that no meritorious loan application them wisely. will be turned away. COMMENTS OF PRESIDENT OF BANK ON DISCUSSION OF ANNUAL REPORT O ment and staff ofExecutive Directors, Manage- N BEHALF OF THE the Bank, I should like to programming their development effort, in the efficient planning and execution of their development projects, express our sincere thanks to the Governors for their and, with the cooperation of the International kind and sympathetic reception, during yesterday's Monetary Fund, in the formulation of economic and discussion, of our stewardship of the Bank over the financial policies which will permit growth within past year. Your words of encouragement mean a great a framework of stability. And we shall continue in deal to all of us, and your suggestions and criticisms, the future, as we have in the past, to fashion our too, are a welcome spur to our continuing efforts to lending in such a manner as to help achieve these improve the Bank's performance. They indicate the ends. vitality of this cooperative undertaking. Concurrently, it is our constant purpose to try, I was greatly impressed by the wide area of agree- through every device available to us, to increase the ment among the Governors who spoke yesterday. To resources at our disposal and to broaden our lending find in this group a unanimity of view as to the activities. In this connection, I was greatly encouraged pressing urgency of development was not surprising, by the affirmative response of so many Governors to but I think we can all be gratified at the remarkable our efforts to obtain a larger and freer use of the 18% degree of agreement in the views expressed as to the portion of our capital, and particularly by the response measures necessary to achieve this goal. As might have of those Governors representing countries which been expected, there were differences of emphasis. The themselves are hard pressed for investment resources. Governors of capital-exporting countries tended to The releases which were announced here yesterday stress the importance of domestic policies in the under- will add greatly to the financial strength of the Bank developed countries; the Governors of the under- and its ability to mobilize funds for development loans. developed countries, on the other hand, quite naturally May I add that, in addition to the releases already put greater emphasis on the importance of an increased announced, the Governor for Sweden has authorized flow of foreign capital, both public and private. me to say that, subject to formal confirmation by the These differences of emphasis seem to me of authorities in Stockholm, Sweden is prepared to secondary importance. Vigorous development requires release the balance of the 18% portion of its capital progress in each sphere, and it is our purpose in the subscription over the next two years in two equal Bank to help in each sphere. instalments, the funds to be usable anywhere outside We shall certainly continue in the period ahead, as the dollar area. we have in the past, to give our member countries all The Bank is, of course, simply one contributor to possible assistance and encouragement in effectively the international flow of capital for development. 12 One of our most useful roles, I believe, is to try to and financially, and for which provision for adequate stimulate the international investment of funds from management has been made. other sources. We shall not relax our efforts to perform Thirdly, I am convinced that we must adhere to our policy of treating each member country-indeed, this role, particularly insofar as affects the flow of each loan application-on its individual merits and private capital. And in connection with this whole that we must not allocate our funds on any regional subject, we shall carefully consider the suggestion of or other arbitrary basis. the Governor for Turkey that an expert study be made Finally, I would add a word about the statement of of the capital needs for development and of ways by the Governor for Ceylon to the effect that no dividend which those needs may be satisfied. should be considered without at the same time con- Turning now to our lending policies and techniques, sidering a reduction of the 1% commission. I agree the Governor for Greece, in expressing what he thought with that view, but, under present circumstances, I should properly characterize the Bank's approach, firmly believe that there should be neither dividend used the phrase "alert conservatism." I should like to nor reduction of the I % commission and the Executive adopt that phrase as my own. What it means, I think, Directors have so decided. Only by building up is that we must always keep our lending policies and reserves and thus maintaining the unquestioned techniques under review so that they may be refined financial strength of the Bank can we perform the and adjusted, as occasion demands, to the particular broad lending functions which are our primary needs of our members. We have never adopted any responsibility. rigid pattern for our loans and it is our firm intention Though I am persuaded that we must be conserva- to keep our procedures flexible and to try to find ever tive in these respects, I am equally persuaded that we new ways to assist the development efforts of our must remain alert. All institutions which have become members. accepted by the community of nations, as I think the But there are certain basic policies of the Bank Bank has become accepted by its membership, must which I feel should not be changed. at all times guard against complacency. We must For one thing, I am convinced we must continue always be hospitable to new ideas. The Bank's to relate the amount of our loans to the real credit- management is aware that the hopes and aspirations worthiness of the borrowing countries and to the of peoples everywhere hang on the success or failure extent of their domestic efforts to mobilize savings of the development process in which the Bank is for development and to maintain economic and participating. We are not yet privileged to look back financial stability. and to count our achievements. For the challenges Secondly, I think experience has amply proved that lie ahead are far greater than those that have yet the desirability of continuing to identify our loan capital with specific projects and programs which been met; they require all the effort and ingenuity at are soundly conceived, economically, technically our command. 13 CLOSING ADDRESS BY THE CHAIRMAN AS CHAIRMAN, I have indeed been gratified to note To the Executive Directors and to Mr. Black and f i the interest shown by all the Governors in the Mr. Jacobsson I express, on your behalf, deep appre- problems which confront all of us and which are of ciation for the conduct of our two institutions. We such pressing interest to both the Bank and the Fund. must pay tribute to the great energy and ability that This year, in particular, I think that we have been they are bringing to bear in their management of the fortunate in having one of the most constructive Bank and of the Fund. I am sure that they, with their annual meetings in the history of our two institutions. splendid staffs, will continue the remarkable record Not only has our formal business been handled already achieved. expeditiously, but we have been privileged to partici- I deeply appreciate the kind words directed to me pate in two interesting and helpful discussions on the by some of my colleagues. operations and activities of the Bank and the Fund. And I also sincerely thank my two Secretaries, Mr. I must make special mention also of the panel Mendels and Mr. Horne, who have been so helpful discussion which took place yesterday afternoon, and and efficient that they made the performance of my from which I, personally, and I am sure most of my duties very easy indeed. colleagues here, have derived great benefit. To our new members I express a hearty welcome, I want to take this opportunity to say publicly once and to my successor, my congratulations. I promise more how grateful we are to all the distinguished him a rewarding task. panelists who were good enough to participate in Finally, I express on behalf of all the Governors the discussion. our sincere appreciation to the Government of the Once again, an Annual Meeting has proved con- United States, which has once again extended to us clusively the great value of our coming together, its usual generous hospitality and every facility to renewing associations, exchanging ideas, and engaging make our stay in this beautiful city so pleasant and in discussion, formally and informally, of our common enjoyable. problems. Despite the occasional doubts that I have The Twelfth Annual Meeting of the Boards of heard expressed about the value of these annual Governors of the International Bank for Reconstruc- sessions, I am satisfied after our meeting this week tion and Development and the International Monetary that they render great service. Fund is adjourned. 14 COMMITTEE REPORTS JOINT PROCEDURES COMMITTEE Chairman . ............................................. PHILIPPINES Vice Chairman . ........................................ PANAMA Reporting Member . ..................................... AUSTRIA Other Members: CHINA, ECUADOR, FINLAND, FRANCE, INDIA, SYRIA, UNION OF SOUTH AFRICA, UNITED KINGDOM, UNITED STATES REPORT NO.1 September 21, 1957 The Joint Procedures Committee, at its first meeting at 3 :30 p.m. on September 21, 1957 considered the matters of business which had been proposed for the Twelfth Annual Meeting of the Boards of Governors of the Bank and the Fund. I have the honor to submit the following recommendations of the Committee: 1. SCHEDULE OF MEETING The Committee recommends that the provisional schedule in Annex 11 be adopted, and that the Secretaries of the Bank and the Fund, in consultation with the Chairman, may modify it as neces- sary. 2. CONDUCT OF MEETING The Committee recommends that the provisions relating to the conduct of the Meeting, as con- tained in Annex IJ2, be approved. 3. BANK AGENDA The Committee recommends that the agenda attached as Annex lIP be adopted by the Board of Governors of the Bank and that any proposed additions to the agenda be submitted in writing to the Joint Procedures Committee, through the Chairman, for its recommendations. 4. FUND AGENDA4 1 See page 17 3 See page 19 2 Seepage 18 4 Fund business omitted. 15 5. LATER REPORTS OF THE COMMITTEE The Committee also considered the individual items of business on the proposed agendas of the Bank and the Fund and will make recommendations as to their disposition in separate Committee reports to the two Boards. The report on the Fund items of business will be presented at the meeting of the Fund Governors Tuesday at 11 :00 a.m. The report on the Bank items will be given at the meeting of the Bank Board Wednesday morning at 10 :00 a.m. In addition, the Committee will make a later report to the Joint Boards of Governors on: a. Place and Date of Thirteenth Annual Meeting. b. Election of Officers and Joint Procedures Committee for 1957-58. /s / MIGUEL CUADERNO, SR. /s / REINHARD KAMITZ PHILIPPINES-Chairman /s/ FRANZ STOEGER-MARENPACH AUSTRIA-Reporting Member This Report was approved and its recommendations were adopted by the Boards of Governors at the Joint Session on September 23, 1957. 16 ANNEX I PROVISION AL SCHEDULEl Saturday SEPTEMBER 21 3 :30 p.m. -JOINT Procedures Committee Monday SEPTEMBER 23 9:15 a.m. -Address by the President of the United States 10:00 a.m. -JOINT BOARDs-Opening Session - Opening Address by Chairman -Joint Procedures Committee Report I 12:00 noon-BANK BOARD-Annual Address-President of Bank Tuesday SEPTEMBER 24 10:00 a.m. - FUND BOARD - Annual Address - Managing Director of Fund 11:00 a.m. - FUND BOARD-Joint Procedures Committee Report II - Annual Report Discussion Wednesday SEPTEMBER 25 10:00 a.m. -BANK BOARD-Joint Procedures Committee Report III - Annual Report Discussion 3:30 p.m. -JOINT Informal Discussion "CURRENT PROBLEMS OF CREDIT AND FISCAL POLICY" Thursday SEPTEMBER 26 9:30 a.m. -JOINT Procedures Committee 11 :00 a.m. -JOINT BOARDs-Joint Procedures Committee Report IV - Comments of President of Bank -Comments of Managing Director of Fund - Closing Session Friday SEPTEMBER 27 10:00 a.m. -INTERNATIONAL FINANCE CORPORATION ANNUAL MEETING Address by President of Corporation Annual Report Discussion 1 The Provisional Schedule was substantially followed; for final schedule see page ii. 17 ANNEX II PROVISIONS RELATING TO THE CONDUCT OF THE MEETING ATTENDANCE 1. All Sessions of the Boards of Governors of the Bank and the Fund, including Joint Sessions and the informal discussion, shall be open to the press and invited guests, unless otherwise decided. Committee meetings shall be closed. 2. Meetings of the Joint Procedures Committee shall be open only to Governors who are members of the Committee and their Delegations. 3. Committee meetings, if any, with the exception of Joint Procedures Committee Meetings, shall be open to Delegations who are not Committee members. 4. Accredited observers may attend all Sessions of the Boards of Governors and their Committees, other than the Joint Procedures Committee, unless decided otherwise. Observers wishing to speak at a meeting are requested to consult the Secretaries in advance. 5. Sessions of the Boards of Governors and Committee meetings shall be open to such members of the Joint Secretariat and the technical staffs as may be necessary. PUBLIC INFORMATION 6. The Chairman of the Boards of Governors, the Managing Director of the Fund and the President of the Bank are authorized to communicate to the press such information concerning the pro- ceedings of the Twelfth Annual Meeting as they deem suitable. Copies of such communications shall be available to any Governor on his request. RECORDS 7. The Secretaries of the Bank and the Fund are authorized to prepare verbatim transcripts of the proceedings of Sessions of the Boards of Governors and their Committees, and of the informal discussion. The transcripts of Committee proceedings, and any summary records thereof, will be confidential and available only to the Chairman, the Managing Director of the Fund and the President of the Bank, unless otherwise decided. 8. Reports of Committees shall be signed by the Committee Chairman and the Reporting Member. 18 ANNEX III AGENDA 1. TWELFTH ANNUAL REPORT 2. FINANCIAL STATEMENTS AND ANNUAL AUDIT (Appendices A-H of Twelfth Annual Report) 3. ADMINISTRATIVE BUDGET (Appendix I of Twelfth Annual Report) 4. ALLOCATION OF INCOME TO RESERVE 5. BOND REGULATION No. 1 OF THE BANK 6. ApPLICATION OF THE UNITED KINGDOM OF LIBYA FOR MEMBERSHIP IN THE BANK 7. ApPLICATION OF THE FEDERATION OF MALAYA FOR MEMBERSHIP IN THE BANK 8. ApPLICATION OF TUNISIA FOR MEMBERSHIP IN THE BANK 9. ApPLICATION OF EL SALVADOR FOR INCREASE IN CAPITAL SUBSCRIPTION TO THE BANK 10. ApPLICATION OF HONDURAS FOR INCREASE IN CAPITAL SUBSCRIPTION TO THE BANK 11. EIGHTEEN PER CENT PORTION OF CAPITAL SUBSCRIPTIONS TO THE BANK 12. PLACE AND DATE OF THIRTEENTH ANNUAL MEETING 13. ELECTION OF OFFICERS AND PROCEDURES COMMITTEE FOR 1957-58 19 JOINT PROCEDURES COMMITTEE REPORT NO. 1111 September 23, 1957 I have the honor to present the third report of the Joint Procedures Committee. The Committee at its meeting held at 3 :30 p.m. on Saturday, September 21, 1957, considered the items of business on the Bank Agenda. TWELFTH ANNUAL REPORT The Committee noted that provision has been made for discussion of the Twelfth Annual Report immediately following the presentation of this report of the Committee. FINANCIAL STATEMENTS, ANNUAL AUDIT AND ADMINISTRATIVE BUDGET The Committee considered the Financial Statements, Auditors' Report and Administrative Budget attached as Appendices to the Twelfth Annual Report, together with a supplemental Report, dated September 16, 1957, giving additional information concerning the Budget. The Committee recommends to the Board of Governors the adoption of the draft resolution attached hereto as Annex 12. ALLOCATION OF INCOME TO RESERVE The Committee considered the Report of the Executive Directors, dated August 8, 1957, on the allocation of income to reserve. The Committee recommends that the Board of Governors note with approval the allocation of the net income of the Bank for the fiscal year ended June 30, 1957, to the reserve against losses on loans and guarantees. BOND REGULATION NO. 1 OF THE BANK The Committee next considered the Report of the Executive Directors, dated August 8, 1957, con- cerning a revision of Bond Regulation No. 1 of the Bank, submitted to the Board of Governors for review in accordance with Section 16 of the By-Laws. The Committee recommends that the record of the Proceedings of the Twelfth Annual Meeting state that Bond Regulation No.1, dated December 21, 1956, has been reviewed and noted by the Board of Governors. APPLICATION OF THE UNITED KINGDOM OF LIBYA FOR MEMBERSHIP IN THE BANK The Committee then considered the Report of the Executive Directors, dated August 8, 1957, con- cerning the application of the United Kingdom of Libya for membership in the Bank and recommends the adoption by the Board of Governors of the draft resolution 3 attached to that Report. 1 Report No.2 related to business of the Fund. 3 See page 30 2 See page 30 20 APPLICATION OF THE FEDERATION OF MALAYA FOR MEMBERSHIP IN THE BANK The Committee then considered the Report of the Executive Directors, dated September 19, 1957, concerning the application of the Federation of Malaya for membership in the Bank and recommends the adoption by the Board of Governors of the draft resolution 1 attached to that Report. APPLICATION OF TUNISIA FOR MEMBERSHIP IN THE BANK The Committee then considered the Report of the Executive Directors, dated August 20, 1957, concerning the application of Tunisia for membership in the Bank and recommends the adoption by the Board of Governors of the draft resolution 2 attached to that Report. APPLICATION OF MOROCCO FOR MEMBERSHIP IN THE BANK At the suggestion of the Governor for France, the Committee recommends that if a report con- cerning the application of Morocco for membership in the Bank should be received from the Executive Directors in time for consideration by the Board of Governors at this Annual Meeting, the reporP should be given such consideration. INCREASE IN SUBSCRIPTION OF EL SALVADOR TO THE CAPITAL STOCK OF THE BANK The Committee next considered the Report of the Executive Directors, dated September 19, 1957, concerning the application ofEl Salvador for an increase in subscription to the capital stock of the Bank. The Committee recommends the adoption by the Board of Governors of the draft resolution 4 attached to that Report. INCREASE IN SUBSCRIPTION OF HONDURAS TO THE CAPITAL STOCK OF THE BANK The Committee next considered the Report of the Executive Directors, dated September 19, 1957, concerning the application of Honduras for an increase in subscription to the capital stock of the Bank. The Committee recommends the adoption by the Board of Governors of the draft resolutionS attached to that Report. EIGHTEEN PER CENT PORTION OF CAPITAL SUBSCRIPTIONS TO THE BANK The Committee considered the Report of the Executive Directors, dated September 19, 1957, con- cerning the 18% Capital Subscriptions of the Bank. The Committee recommends the adoption by the Board of Governors of the draft resolution 6 attached to that Report. /s /MIGUEL CUADERNO, SR. /s / REINHARD KAMITZ PHILIPPINEs-Chairman AUSTRIA-Reporting Member This Report was approved and its recommendations were adopted by the Board of Governors on September 25, 1957. 1 See page 31 4 See page 36 2 See page 33 5 See page 36 3 See page 34 6 See page 37 21 JOINT PROCEDURES COMMITTEE REPORT NO. IV September 26, 1957 I have the honor to submit the Report of the Joint Procedures Committee on its second meeting which was held this morning. 1. PLACE AND DATE OF TlDRTEENTH ANNUAL MEETING The Committee recommends that the Thirteenth Annual Meeting be convened in New Delhi, India, preferably late in September or early in October 1958. 2. OFFICERS The Committee recommends that the Governor for Belgium be elected Chairman and the Governors for the United States, the United Kingdom, China, France and India be elected Vice-Chairmen of the respective Boards, to hold office until the election of officers at the close of the next annual meeting. 3. JOINT PROCEDURES COMMITTEE The Committee recommends that a Joint Procedures Committee be established to be available after the termination of this Meeting, and until the selection of a new Joint Procedures Committee at the next annual meeting, for consultation at the discretion of the Chairman, normally by correspondence, and also if occasion requires by convening immediately before the Annual Meeting of the Boards. The Committee further recommends that the Joint Procedures Committee shall consist of the Governors for Belgium, Chairman; Honduras, Vice-Chairman; Thailand, Reporting Member; and Afghanistan, Argentina, China, France, Greece, Haiti, Iceland, India, Indonesia, Iran, Israel, the United Kingdom and the United States. /s / MIGUEL CUADERNO, SR. /s / REINHARD KAMITZ PHILIPPINES-Chairman /s / FRANZ STOEGER-MARENPACH AUSTRIA-Reporting Member This Report was approved and its recommendations were adopted by the Boards of Governors at the final Joint Session on September 26, 1957. 22 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS BETWEEN ELEVENTH AND TWELFTH ANNUAL MEETINGS RESOLUTION NO. 104 IFC AGREEMENT WITH UNITED NATIONS RESOLVED: THAT the Board of Governors of the International Bank for Reconstruction and Development hereby approves the terms and conditions of the agreement between the United Nations and the Bank, acting on behalf of the International Finance Corporation, presented by the Executive Directors to the Board of Governors with their Report, dated January 7, 1957. Adopted January 31, 1957 RESOLUTION NO. 105 INCREASE IN SUBSCRIPTION OF ISRAEL 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 Israel to 30 shares of the capital stock of the Bank in addition to the 45 shares of said capital stock heretofore 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 April 24, 1957, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; and (c) That before such subscription shall be accepted by the Bank, (i) Israel shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Israel shall have paid to the Bank, on account of the subscription price of such additional shares, two percent in gold or United States dollars and eighteen percent in currency of Israel. Adopted February 18, 1957 RESOLUTION NO. 106 TERMS AND CONDITIONS ON WmCH GHANA SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of the Gold Coast, on August 8, 1956, applied for admission, on the attainment by that country of constitutional independence, to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and 23 WHEREAS, on March 6, 1957, the Gold Coast attained constitutional independence, changing its name to Ghana; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of Ghana, have made recommendations to the Board of Governors with regard to the application of that country for admission to membership in the Bank; Now, THEREFORE, the Board of Governors, having considered the recommendations of the Executive Directors, hereby RESOLVES: THAT the terms and conditions upon which Ghana shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) The term "Bank" means International Bank for Reconstruction and Development. (b) The term "Articles" means the Articles of Agreement of the Bank. (c) The term "dollars" or "$" means United States dollars of the weight and fineness in effect on July 1, 1944. (d) The term "subscription" means the capital stock of the Bank subscribed to by a member. (e) The term "member" means member of the Bank. 2. Subscription: By accepting membership in the Bank, Ghana 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, Ghana shall accept member- ship in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Ghana shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of Ghana, which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. (b) Ghana shall agree that, if it tenders any part of the payment called for in paragraph (a)(i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, Ghana 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(a) and (b) of this resolution and Ghana shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: After the Bank shall have informed the Government of the United States of America that Ghana (i) has made the payments called for by paragraph 4 of this reso- lution; (ii) has made the representation called for by paragraph 5 of this resolution; and (iii) has furnished the information requested by the Bank pursuant to said paragraph 5, and after Ghana shall become a member of the International Monetary Fund, Ghana shall become a member of 24 the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Ghana shall have complied with the following requirements: (a) Ghana shall deposit 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 conditions 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; (b) Ghana shall sign the original copy of the Articles held in the Archives of the Government of the United States of America. 7. Limitation on Periodfor Acceptance of Membership: Ghana may accept membership in the Bank pursuant to this resolution until October 15, 1957; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Ghana may accept membership pursuant to this resolution, the Executive Directors may extend such period until such later date as they may determine. Adopted April 4, 1957 RESOLUTION NO. 107 INCREASE IN SUBSCRIPTION OF HAITI 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 Haiti to 55 shares of the capital stock of the Bank in addition to the 20 shares of said capital stock heretofore subscribed by Haiti, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Haiti's subscription shall be received by the Bank on or before September 30, 1957, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; and (c) That before such subscription shall be accepted by the Bank, (i) Haiti shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Haiti shall have paid to the Bank, on account of the subscription price of such additional shares, two percent in gold or United States dollars and eighteen percent in currency of Haiti. Adopted April 18, 1957 25 RESOLUTION NO. 108 TERMS AND CONDITIONS ON WHICH SAUDI ARABIA SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of Saudi Arabia has applied for admission to membership in the Inter- national Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of Saudi Arabia, have made recommendations to the Board of Governors regarding this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Saudi Arabia shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) "Bank" means International Bank for Reconstruction and Development. (b) "Articles" means the Articles of Agreement of the Bank. (c) "Dollars" or "$" 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, Saudi Arabia shall subscribe to 100 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, Saudi Arabia shall accept membership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Saudi Arabia shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of Saudi Arabia, which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. (b) Saudi Arabia shall agree that, if it tenders any part of the payment called for in paragraph (a)(i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, Saudi Arabia 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 Saudi Arabia shall furnish to the Bank such information in respect of such action as the Bank may request. 26 6. Acceptance of Membership: Saudi Arabia shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Saudi Arabia 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, pursuant to paragraph 5 of this resolution; (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 conditions pre- scribed 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 Periodfor Acceptance of Membership: Saudi Arabia may accept membership in the Bank pursuant to this resolution until November 29, 1957; provided, however, that, if extraor- dinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Saudi Arabia may accept membership pursuant to this resolution, the Executive Directors may extend such period. Adopted May 24, 1957 RESOLUTION NO. 109 TERMS AND CONDITIONS ON WHICH IRELAND SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of Ireland has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of Ireland, have made recommendations to the Board of Governors regarding this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Ireland 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. 27 2. Subscription: By accepting membership in the Bank, Ireland shall subscribe to 300 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, Ireland shall accept member- ship in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Ireland shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of Ireland, which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. (b) Ireland shall agree that, if it tenders any part of the payment called for in paragraph (a) (i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, Ireland 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 Ireland shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: Ireland shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Ireland 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, pursuant to paragraph 5 of this resolution; (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 conditions pre- scribed 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 ofthe Articles held in the Archives of the Government of the United States of America. 7. Limitation on Periodfor Acceptance of Membership: Ireland may accept membership in the Bank pursuant to this resolution until December 31, 1957; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Ireland may accept membership pursuant to this resolution, the Executive Directors may extend such period. Adopted July 5, 1957 28 RESOLUTION NO. 110 INCREASE IN SUBSCRIPTION OF PARAGUAY 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 Paraguay to 16 shares of the capital stock of the Bank in addition to the 14 shares of said capital stock heretofore subscribed by Paraguay, 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 Paraguay's subscription shall be received by the Bank on or before September 30, 1957, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; and (c) That before such SUbscription shall be accepted by the Bank, (i) Paraguay shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Paraguay shall have paid to the Bank, on account of the subscription price of such additional shares, two percent in gold or United States dollars and eighteen percent in currency of Paraguay. Adopted July 24, 1957 29 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS AT TWELFTH ANNUAL MEETING RESOLUTION NO. 111 FINANCIAL STATEMENTS, AUDITORS' REpORT AND BUDGET RESOLVED: THAT the Board of Governors of the Bank consider the Financial Statements, Auditors' Report and the Administrative Budget, included as appendices of the Twelfth 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. RESOLUTION NO. 112 TERMS AND CONDITIONS ON WHICH THE UNITED KINGDOM OF LmYA SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of the United Kingdom of Libya has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of the United Kingdom of Libya, have made recom- mendations to the Board of Governors with regard to this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which the United Kingdom of Libya 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, the United Kingdom of Libya shall subscribe to 30 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, the United Kingdom of Libya shall accept membership in and become a member of the International Monetary Fund. 30 4. Payments on Subscription: (a) Before accepting membership in the Bank, the United Kingdom of Libya shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of the United Kingdom of Libya, which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. (b) The United Kingdom of Libya shall agree that, if it tenders any part of the payment called for in paragraph (a) (i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, the United Kingdom of Libya 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 the United Kingdom of Libya shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: The United Kingdom of Libya shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when the United Kingdom of Libya 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, pursuant to paragraph 5 of this resolution; (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 conditions pre- scribed 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: The United Kingdom of Libya may accept membership in the Bank pursuant to this resolution until March 31, 1958; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the United Kingdom of Libya may accept membership pursuant to this resolution, the Executive Directors may extend such period. RESOLUTION NO. 113 TERMS AND CONDITIONS ON WmCH THE FEDERATION OF MALAYA SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of the Federation of Malaya has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and 31 WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of the Federation of Malaya, have made recom- mendations to the Board of Governors with regard to this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which the Federation of Malaya 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, the Federation of Malaya shall subscribe to 250 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, the Federation of Malaya shall accept membership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, the Federation of Malaya shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of the Federation of Malaya which, at the appropriate pre- vailing exchange rate, shall be equal in value to 18% of its subscription. (b) The Federation of Malaya shall agree that, if it tenders any part of the payment called for in paragraph (a) (i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, the Federation of Malaya 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 the Federation of Malaya shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: The Federation of Malaya shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when the Federation of Malaya 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, pursuant to paragraph 5 of this resolution; (d) Deposited with the Government of the United States of America an instrument stating that 32 it has accepted in accordance with its law the Articles and all the terms and conditions pre- scribed 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: The Federation of Malaya may accept membership in the Bank pursuant to this resolution until March 31, 1958; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an exten- sion of the period during which the Federation of Malaya may accept membership pursuant to this resolution, the Executive Directors may extend such period. RESOLUTION NO. 114 TERMS AND CONDITIONS ON WHICH TUNISIA SHALL BE ADMITTED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of Tunisia has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II ofthe Articles of Agreement of the Bank; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of Tunisia, have made recommendations to the Board of Governors with regard to this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Tunisia 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, Tunisia shall subscribe to 120 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, Tunisia shall accept member- ship in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Tunisia shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of Tunisia which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. 33 (b) Tunisia shall agree that, if it tenders any part of the payment called for in paragraph (a)(i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, Tunisia 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 Tunisia shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: Tunisia shall become a member of the Bank with a subscription as set forth in paragraph 2 of this resolution, as of the date when Tunisia 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, pursuant to paragraph 5 of this resolution; (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 conditions pre- scribed 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: Tunisia may accept membership in the Bank pursuant to this resolution until March 31, 1958; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Tunisia may accept membership pursuant to this resolution, the Executive Directors may extend such period. RESOLUTION NO. 115 TERMS AND CONDmONS ON WHICH MOROCCO SHALL BE ADMITIED TO MEMBERSHIP IN THE BANK WHEREAS, the Government of Morocco has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section l(b) of Article II of the Articles of Agreement of the Bank; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after con- sultation with representatives of the Government of Morocco have made recommendations to the Board of Governors with regard to this application of said country; Now, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Morocco shall be admitted to membership in the Bank shall be as follows: 34 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, Morocco shall subscribe to 350 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, Morocco shall accept mem- bership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Morocco shall pay to the Bank: (i) Gold or United States dollars equal to 2% of its subscription; and (ii) An amount in the currency of Morocco which, at the appropriate prevailing exchange rate, shall be equal in value to 18% of its subscription. (b) Morocco shall agree that, if it tenders any part of the payment called for in paragraph (a) (i) above in gold, the Bank shall have the right to reject any such gold which, in its opinion, may not be sold freely and unconditionally by the Bank to members requiring certification or other evidence as to the origin of gold purchased by them. 5. Representation and Information: Before accepting membership in the Bank, Morocco 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 Morocco shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: Morocco shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Morocco 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, pursuant to paragraph 5 of this resolution; (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 conditions pre- scribed 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: Morocco may accept membership in the Bank pursuant to this resolution until March 31, 1958; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during 35 which Morocco may accept membership pursuant to this resolution, the Executive Directors may extend such period. RESOLUTION NO. 116 INCREASE IN SUBSCRIPTION OF EL SALVADOR 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 EI Salvador to 20 shares of the capital stock of the Bank in addition to the 10 shares of said capital stock heretofore subscribed by EI Salvador, 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 EI Salvador's subscription shall be received by the Bank on or before November 26, 1957, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; and (c) That before such SUbscription shall be accepted by the Bank, (i) EI Salvador shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) EI Salvador shall have paid to the Bank, on account of the subscription price of such additional shares, two percent in gold or United States dollars and eighteen percent in currency of EI Salvador. RESOLUTION NO. 117 INCREASE IN SUBSCRIPTION OF HONDURAS 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 Honduras to 20 shares of the capital stock of the Bank in addition to the 10 shares of said capital stock heretofore subscribed by Honduras, 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 Honduras' subscription shall be received by the Bank on or before November 26, 1957, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; and (c) That before such subscription shall be accepted by the Bank, (i) Honduras shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Honduras shall have paid to the Bank, on account of the subscription price of such additional shares, two percent in gold or United States dollars and eighteen percent in currency of Honduras. 36 RESOLUTION NO. 118 18% CAPITAL SUBSCRIPTIONS OF THE BANK THE BOARD OF GOVERNORS, HAVING IN MIND that eleven years have now elapsed since the Bank started operations; that some member Governments have placed, or are in the process of placing, at the Bank's disposal in a usable form the whole amount of their 18% capital subscription; that about 35% (or the equivalent of $581,000,000) of the 18% capital sUbscriptions of the Bank's member Governments still remains unusable by the Bank in its lending operations; and that the demands on the lendable resources of the Bank are continually increasing; RECORD their support of the efforts which the President of the Bank has been making, and is making, to secure that all member Governments should, over the minimum period of time permitted by their economic circumstances, place and leave at the Bank's disposal the whole amount of their 18% capital subscriptions in a form usable in the Bank's lending operations. Resolutions Nos. 111 to 118 were adopted by the Board o/Governors on September 25,1957. 37 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNU AL MEETING Country Governor Alternate Governor Adviser AFGHANISTAN ··.·.·.· Dr. Najib-Ullah Abdul Karim Hakimi ARGENTINA ·.··.·.·.· Carlos ColI Benegas· R. Corominas Segura Alejandro Frers J. Gonzalez del Solar Carlos Luzzetti Jorge Moreno Juan Carlos Pinasco AUSTRALIA ·.·...·.·.· Sir Arthur Fadden Sir Roland Wilson B. B. Callaghant B. E. Flemingt L. Armstrong R. W. Cole R. J. Whitelaw AUSTRIA ··.·......·.· Reinhard Kamitz Wilhelm Teufenstein Max A. Thurnt Edgar Plan BELGIUM ···..·....·.. Henri Liebaert Jean Van Nieuwenhuyse Andre van Campenhout Cecil de Strycker Maurice Toussaint BOLIVIA ·········..·.· Miguel Gisbert N. Fernando Pou Munt BRAZIL ···.·.·..·.·.. Eurico de Aguiar Salles Gabriel de Carvalho Roberto Coutinho de Gouvea Helvecio Xavier Lopes Joao Menezes Roberto de Oliveira Campos Casimiro Antonio Ribeiro BURMA ·············· Boh Khin Maung Gale U Mo Myit· U Thet Tunt CANADA ············· Donald M. Fleming A. F. W. Plumptre Louis Rasminskyt A. B. Hockint A. E. Ritchie M. Sakellaropoulo G. S. Watts CEyLON ····.··.·..··· Stanley de Zoysa Rajendra Coomaraswamy A. T. Jayakoddy D. L. Kannangara CHILE ·····.·····.·.· Felipe Herrera Mariano Puga Carlos Villarroel'" Javier Urrutia CHINA ··············. Chia-Kan Yen Kan Leet Felix S. Y. Chang R. C. Chen Ching-Yao Hsieh Ke-Ho King Beue Tann Tswen-Lin Tsui Stephen S. C. Yao Kuo-Hwa Yu · Temporary t Executive Director t Alternate Director 38 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNUAL MEETING (Continued) Country Governor Alternate Governor Adviser COLOMBIA ............ Ignacio Copete-Lizarralde Eduardo Arias Robledo Jorge Mejia-Palaciot German Botero de los Rios CosTA RICA .......... Mario Fernandez P. Jorge Hazera Jaime Solera B.* CUBA ................ Joaquin Meyer Luis Machadot Enrique E. Serrano Avila DENMARK ............ Svend Nielsen Hakon Jespersen Torben Friis Henrik Meiner DOMINICAN REpUBLIC. Jose Ernesto Garcia Aybar ECUADOR ........... . Jose R. Chiriboga V. EGyPT .............. . Ahmed Zaki Saad Albert Mansour Abdel Moneim EI-Banna Adel EI-Gowhary Ahmed Kishty EL SALVADOR ....... . Carlos J. Canessa Luis Escalante-Arce Rolando Duarte Jorge Sol ETHIOPIA ........... . Ato Menasse Lemma George P. Rea FINLAND ............ . Klaus Waris Ralf Torngren Jouko J. Voutilainen FRANCE ............. . Pierre Mendes-France Rene Larret Jean-Maxime Levequet J. P. Barre Pierre Calvet Jean Cottier Jacques Larche Jean de Largentaye Guy de Lavergne Gabriel Pallez Claude Pierre-Brossolette Michel Poniatowski Pierre QueuiIIe Jean Sadrin Pierre-Paul Schweitzer Maurice P. Viaud Jacques Waitzenegger GERMANy ........... . Joachim von Spindler* Otto Donnert Ludger Westrick* Karl-Heinz Drechslert Ulrich Beelitz Otmar Emminger Curt Erbstoesser Rolf Gocht Guenther Grosse Wilhelm Hanemann Helmut Klein Mrs. Hilde Maria Wallroth Eduard Wolf * Temporary t Executive Director t Alternate Director 39 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNUAL MEETING (Continued) Country Governor Alternate Governor Adviser GHANA ·····......... K. A. Gbedemah A. Eggleston D. C. Ferguson A. K. Kwateng H. Millar-Craig W. Sutherland GREECE · . . . . . . . . . . . . . Gregory Cassimatis John P. Paraskevopoulos Costa P. Caranicas GUATEMALA .·........ Mario Asturias Arturo Perez Galiano HAITI ····.··........ Colonel Maurepas Alcindor Adrien W. Bonnefil* Jules Blanchet Louis Celestin Marcel Daumec Louis Goldman HONDURAS ·....··.·.· Jorge Bueso-Arias Ignacio Agurcia h. * Roberto Ramirez* IcELAND ·.........·.. Petur Benediktsson Benjamin Eiriksson* Bjorn Tryggvasont INDIA · · . · . . . . . . . . . . . T. T. Krishnamachari H. M. Patel V. Narahari Raot B. K. Madan* P. J. J. Pintot G. L. Mehta* B. N. Adarkar C. S. Krishna Moorthi Govindan Nair I. G. Patel INDONESIA ····....... Loekman Hakim Khouw Bian Tie Mr. Soemarno* IRAN ····........·... Ali Asghar Nasser Djalaledin Aghili Ali Akbar Khosropurt Mohammad Hassan Sadri IRAQ · · . . . . . . . . . . . . . . Ali Mumtaz AI-Daftari Mudhafar Hussain Jamil IRELAND ··........... Seamas 0 Riain T. K. Whitaker ISRAEL ···............ David Horowitz Avraham Salmon ITALy ··.······...... Donato Menichella Giorgio Cigliana-Piazza Carlo Gragnanit Paolo Baffi Domenico Brancatisano Attilio Cattani Alfredo Di Cristina Mario Ercolani Attilio Jaschi Giovanni U go JAPAN ···............ Hisato Ichimada Naokado Nishihara* Takeshi Watanabet Taiji Sakata* Hirosuke Dan Gengo Suzuki* Tokusaburo Fujisawa Koichi Kakimizu Takeshi Kanematsu )Toshio Katagiri Satoshi Matsumoto Teruo Ohta Taro Sekine Seiyu Soejima Katsuro Veda Tadashi Veno Koichiro )Tamasaki · Temporary t Executive Director t Alternate Director 40 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNUAL MEETING (Continued) Country Governor Alternate Governor Adviser JORDAN · . . . . . . . . . . . . . Mohammad Ali Rida KOREA · . . . . . . . . . . . . . Chin Hyung Kim Hahn-Been Lee Byong Hyun Shin LEBANON . . . . . . . . . . . . Andre Tueni Raja Himadeh Charles Marchal LUXEMBOURG . . . . . . . . . Pierre Werner Ernest Goergen'" MEXICO · . . . . . . . . . . . . . Rodrigo Gomez Raul Martinez Ostos Mario Ramon Beteta Javier Marquez Alfredo Navarrete NETHERLANDS · . . . . . . . H. J. Hofstra A. M. de Jong P. Lieftinckt J. Grooters Miss G. A. Koen L. R. W. Soutendijk H. M. H. A. van der Valk NICARAGUA . . . . . . . . . . Enrique Delgado Rafael A. Huezo Jorge A. Montealegre~ Ricardo Parrales NORWAy ··........... Carsten Nielsen Sven Viigt Christian Berg-Nielsen Aif Eriksen Hallvard Hillestad Gabriel Kielland PAKISTAN · . . . . . . . . . . . Syed Amjad Ali M. A. Mozaffar Zahiruddin Ahmad* M. Shoaib*t PANAMA · · . . . . . . . . . . . Ricardo M. Arias Espinosa Julio E. Heurtematte PARAGUAy . . . . . . . . . . . Osvaldo Chaves Pablo T. Fuster* Victor A. Panet Miguelangel Baez Gonzalez PERU · . . . . . . . . . . . . . . . Juan Pardo H. Emilio Foley Carlos Gibson Fernando Berckemeyer* PHILIPPINES · . . . . . . . . . Miguel Cuaderno, Sr. Eduardo Z. Romualdez Dominador Aytona Alfonso Calalang Felix de la Costa H. B. Reyes Vicente G. Sinco Colonel Jaime Velasquez SAUDI ARABIA . . . . . . . . Rasem K. AI-Khalidi Saleh AI-Shalfan SUDAN · · · . . . . . . . . . . . Hamza Mirghani SWEDEN · . . . . . . . . . . . . Gunnar Straeng Gunnar Lange S. F. Joge N. T. Montan Erik Westerlind SYRIA · . . . . . . . . . . . . . . Husni A. Sawwaf Sadek Ayoubi THAILAND . . . . . . . . . . . . Serm Vinicchayakul Prayad Buranasiri Pipat Krairiksh Bua Sajisevi '" Temporary t Executive Director ~ Alternate Director 41 ACCREDITED MEMBERS OF DELEGATIONS AT TWELFTH ANNUAL MEETING (Continued) Country Governor Alternate Governor Adviser TuRKEY. . . . . . . . . . . . . Hasan Polatkan Ziya Muezzinoglu* Sinasi Arik Fikri Diker Munir Mostar CemalOkten Sefik Kazim Yur UNION OF SOUTH AFRICA............ J. F. Naude M. H. de Kock A. M. Grobler J. A. Lombard H. R. W. de Wet J. B. DeK. Wilmot UNITED KINGDOM... .. Rt. Hon. Peter Thorneycroft Sir Leslie Rowan G. F. Thoroldt Rt. Hon. Nigel Birch* D. B. Pitblado~ C. S. Bennett G. D'Arcy Edmondson A. W. France R. E. Heasman N. Jordan-Moss H. King Sir Frank Lee J. G. Littler G. J. MacGillivray C. W. McMahon E. W. Maude L. Pliatzky F. J. Portsmore A. Schofield R. S. Symons UNITED STATES. . . . . . . Robert B. Anderson C. Douglas Dillon John S. Hooker~ W. Randolph Burgess* Wallace F. Bennett Frank A. Southard, Jr.* Dennis A. Fitzgerald Gabriel Hauge Alfred Hayes Henry Kearns William McC. Martin, Jr. A. Willis Robertson WaIter Schaefer Brent Spence Lynn U. Stambaugh Henry O. Talle Samuel C. Waugh Sinclair Weeks URUGUAy ........... . Nilo R. Berchesi VENEZUELA .......... . J. J. Gonzalez Gorrondona Hernan Avendano M. Luis Alfredo Briceno Felix Miralles Ernesto Peltzer VIET-NAM ........... . Vu Quoc Thuc Huynh Van Lang Buu Hoan Tran Kim Phuong Bui Kien Thanh yUGOSLAVIA ......... . Avdo Humo Augustin Papic Janko Smole~ S. Martinovic V. Milovanovic V. Prita * Temporary t Executive Director ~ Alternate Director 42 OBSERVERS Libya ................................................. . A. N. Aneizi Abdurrazak O. Missallati Malaya ................................................ . The Hon. Colonel Sir Henry H. S. Lee H. A. Fell Morocco ............................................... . Mr. Chefchaouni Francois Bizard EI-Mehdi Ben Aboud Driss Sebti Tunisia ................................................ . Hedi Nouira Mongi Slim Habib Bourguiba, Jr. Bank for International Settlements ........................ . Roger Auboin Georges Royot Contracting Parties to the General Agreement on Tariffs and Trade ............................................... . Eric Wyndham White Food and Agriculture Organization of the United Nations .... Harold A. Vogel C. W. McLean Mrs. P. Okura-Leiberg International Labour Organisation ........................ . R. P. Straus Organisation for European Economic Co-operation ......... . J. Flint Cahan Bertran Larcher Organization of American States .......................... . Loreto Dominguez Mrs. Elba A. G. de Kybal Michael Zuntz Technical Assistance Board .............................. . Sudhir Sen United Nations ......................................... . Philippe de Seynes Sune Carlson Henry Bloch l Brian Meredith Milic Kybal 43 OFFICERS OF THE BOARD OF GOVERNORS AND PROCEDURES COMMITTEE FOR 1957-58 OFFICERS Chairman . ................................... Belgium Vice Chairmen ... ............................. United States United Kingdom China France India PROCEDURES COMMITTEE Chairman . ................................... Belgium Vice Chairman . ............................... Honduras Reporting Member . ........................... Thailand Members . ................................... Afghanistan Argentina China France Greece Haiti Iceland India Indonesia Iran Israel United Kingdom United States 44