I f (~ot for public use) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 89440 t SM 58-26 OR XECUTIVE (For consideration by the Executive Directors at their 1tJRECTORS' next Regular i eeting) ~EE TING Decem:Jer 3, 1958 Linutes of the l ?Oth Special Leeting of the Executive Directors held in the 13oard Room of the Bank on December 1, 1958,, at 2:30 p. m. 1. Th2re ~'ere present: (c:) Chairman I Eugene R. Blac!c, President f ( b) ii anagernent { A. B. Iliff, Vice President -:.r 1 • L Burke I:napp, Vice ?resident D. Son:1ers, Vice President and General Counsel (c) Executive Directors and Alternates acting as Execl-:.tive :lJirectors Jose Aragones Thomas Basyn C. Brignone B. B. Callaghan Tom D. Coughran Otto Donner Lennart Hanrnarskiold Alan B. Hockin (Alternate) Ismail bin Ii ohamed Ali Ali Akbar Khosropur (Alterrnte) Rene Larre Kan Lee Pieter Lieftinck Jorge hejia-Palacio Jorge A. i':ontealegre (Alternate) B. K. ~ 1 ehru Guy F. Thorold I'akeshi Fatanabe - 2 - (d) Alternates not acting as Executive Directors B. N. Adarkar (Temporary Alternate) Harry Gorn Carlo Gragnani John s. Hooker Nicola Miljanic Erik Thrane Max Thurn A. J. J. van Vuuren Geof.frey H • 1dilson (e) Staff Hembers Participati:ig M. H. f!iend els, Secretary John H. Collier, Department of Operations - Europe, etc. Christian Fin..ne, Department of Technical Operations Douglas J. Fontein, Legal Department Jean-11arie Jentgen, Department o.f Operations - Europe, etc. Alexander H. Saitzoff, Department o.f Technical Operations Alexander Stevenson, Department of Operations - Europe, etc. E. R. 1. h"eimar, Department of Operations - Europe, etc. Lyell Doucet, Office of the Secretary PROPOSED LOAfJ - lf:J.IOll OF SOUTH ARICA 2. The Executive Directors considered the President's Report and Recommenda- tions and related docmnents (R 58-121) on a proposed loan to The Union of South Africa and adopted the .folloi.:ring resolution: RESOLUTION NO. 462 Approvcil of loan to The Union of South Africa (Fifth Transnort Pro.iect) in the amount of :;~25,000,000 (See Annex 11 A11 attached) 3. Hr. Callaghan expressed appreciation to the Executive Directors for their approval of the loan and to the Jfanagement and Staff for their efficient handl- ing of the negotiations. Sec. 58-liliB - 3 - f l ! f PROPO..SED LOAN - AUSTRIA 4. The Executive Directors considered the President's Report and Recommenda- tions and related documents (R 58-120, R 58-120/l and R 58-116) on a proposed loan to the 5sterreichische Elektrizit~tswirtschafts A.G. and the Bsterreichische Donaukraftwerke A.G. and adopted the following resolution: RESOLUTIOH NO. l:i63 Approval of Loan to 5sterreichische Elektrizit~tsw:irtschafts­ Aktiengesellschaft (Verbundgesellschaft) and Bsterreichische Donaukraftvrerke Aktiengesellschaft (Aschach Project) in the amount of ~:125,000,000 to be guaranteed by the Republic of Austria (See Annex "B 11 attached) S. hr. Basyn e...x:pressed appreciation to the Executive Directors for their approval of the loan and to the i.'ianagement and Staff for their efficient handl- ing of the negotiations. PARIS OFFICE ACCQ JIODATION 1 6. The Executive Directors approved the report (R 58-125) regarding the Bank's Paris office accommodation. PROPOSED INCREASE rn CAPITAL SUBSCRIPTIOH 7. The Executive Directors f\lrther considered the draft report (R 58-123) to the Board of Governors regarding a proposed increase in the authorized capital of the ~ank and of memoranda thereon .from the President (R 58-126) and Dr. Lieftinck (R 58-127). DATE OF :TEXT IEETHJG 8. It ;,·;as decided that a Special Heeting of the Executive Directors would be held on Friday, December 5, at a t:L'lle to be announced, and that the next Regular Meeting would be held at 10:00 a. m., Tuesday, December 9, 1958. ADJOURhEEl'IT 9. There being no .f\lrther business, the meeting adjourned at 4:45 p.m. Sec. 58-448 ANNEX 11 A11 INTERNATIC'NAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RESOLU'nOH NO. 462 Approval of Loan to The Union of South Africa (Fifth Transport Project) in ~~_e~~ount of $25,00o,ooo. RESOLVED: 1. THAT, in accordance with the recommendations of the President, dated November 24, 1958, the Bank shall grant a loan to The Union of South Africa in an amount in various currencies equivalent to $25,00o,ooo, to mature on and prior to December 1, 1968, to bear interest (including commission) at the rate of 5-3/4% per annum, and to be upon other terms and conditions substantially in accordance with the terms and conditions set forth in the form of loan Agreement (Fifth Transport Project) between The Union of South Africa and the Bank which has been presented to this meeting. 2. THAT the rate of commission to be charged in connection 1.:ith said loan shall be 1% per annum of the principal amount of said loan from time to time outstanding and held or guaranteed by the Bank; that said commission shall be included as part of the interest and service charge on said loan and shall be payable semi-annually on the dates for the payment of said interest and service charge; and that the amount of said commission so paid to the Bank shall be set aside in the special reserve as provided in Section 6 of Article IV of the Articles of Agreement of the Bank. INTERNATIONAL BAl'Jl\ FOR ANNEX "B 11 P..ECONS':'RUCTION AED DEVELOFNENT RESOLtJTlOi1l NO. li63 Approval of Loan to eisterreichische Elektrizit~tswirtschafts­ Aktiengesellschaft (Verbundgesellscl~aft) and 5sterreichische Donaukraftwerke Aktiengesellschaft (Aschach Project) in the amount of ~':25;000,000 to be guaranteed by the Republic of Austria. RESOLVED: 1. THAT, in accorda~ce with the recommendations of the President, dated November 2L, 1958, the Ban.~ shall grant a loan to Bsterreichische Elektrizit~tswirtschafts-Aktiengesellschaft (Verbundgesellschaft) and Bsterreichische Donaukraftwerke Aktiengesellschaft, to be guaranteed by the Republic of Austria, in an amount in various currencies equivalent to f;25,ooo,ooo, to mature on and prior to September 15, 1983, to bear interest (including commission) at the rate of 5-3/4% per annum, and to be upon other terms and conditions substantially in accordance with the terms and conditions set forth in the for:n of Loan Agreement (Aschach Project) between the Ban:c and Bsterreichische Elektrizit~tswirtschafts-Aktiengesellschaft (Verbundgesellschaft) ar..d Bsterreichische Donaukraftwerke and the fonn of Guarantee Agreement (Aschach Project) beti-1een the Republic of Austria and the Bank which have been presented to this meeting. 2. THAT the rate of corrnnission to be charged in conn.ectionwith said loan shall be 1% per annun of the principal arnount of said loan from tL~e to time outstanding and held or guaranteed by the Bank; that said commission shall be included as part of the interest and service charge on said loan and shall be payable semi-annually on the dates for the payment of said interest and service charge; and that the arr.aunt of said commission so paid to the Bank shall be set aside in the spe~ial reserve as provided in Section 6 of Article IV of the Articles of Agreement of the Bank.