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., I t' INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized SIXTH ANNUAL MEETING OF THE BOARD OF GOVERNORS Public Disclosure Authorized WASHINGTON, D. C. SEPTEMBER 10-14, 1951 SUMMARY Public Disclosure Authorized PROCEEDINGS Public Disclosure Authorized NOVEMBER 30, 1951 CONTENTS PAGE Address by the President of the United States, Harry S. Truman, September 10, 195L____ _ 1 Address by Douglas C. Abbott, Chairman of the Boards of Governors of the Bank and Fund, at the Opening Session of the Joint Boards of Governors, September 10, 195L_____ 2 Address by Eugene R. Black, President of the Bank, in Presenting the Sixth Annual Report of the Bank to the Board of Governors, September 10, 195L___________________________________________ 5 Committee Reports: Joint Procedures Committee Report No. 1 _____ ---------------- __________________________ - -___________________________________________________________________ __ 11 Annex I -Agenda --- ___________________________________________________ -_____________________________________ 13 Annex II -Committee on Finance and Organization______________________________________ 13 Annex III -Committee on Finance and Organization-Terms of Reference 14 Annex IV -Informal Discussion-Subject of Discussion________________________________ 14 Annex VIn 1_Provisional Schedule ________________________________________________________________________ 15 Annex IX -Provisions Relating to the Conduct of the Meeting____________________ 16 Report No. 2______________________ --_____________________________________________________________________________________________ 17 Report of Committee on Finance and Organization____________________________________________________________ 18 Report on Marketing Activities of the Bank: Statement by the Director of Marketing of the Bank to the Committee on Finance and Organization, September 13, 195L________________________________________________ 21 Resolutions adopted by the Board of Governors between Fifth and Sixth Annual Meetings: No. 61-Terms and Conditions on which Burma shall be Admitted to Membership in the Bank ---- ___________________ ------- ____ ------_ _________ __________________________ _____________________________________ _ 23 No. 62-Terms and Conditions on which Sweden shall be Admitted to Membership in the Bank ----- _____________ ----------- ------ - -- -----_______________________________________________________________________ 24 Resolutions adopted by the Board of Governors at Six Annual Meeting: No. 63-Financial Statements and Budget_________ __ ________________________________________________________________ 26 No. 64-United Nations Assembly Resolution 377 (V) entitled "Uniting for Peace"____ 26 No. 65-Place and Date of Seventh Annual Meeting_________________________________________________________ 26 No. 66-0fficers of Board of Governors for 1951-52__________________________________________________________ 26 No. 67-Composition of Procedures Committee for 1951-52____________________________________________ 26 Draft Resolution Submitted by the Governor for Czechoslovakia to the Board of Governors of the Bank at the Sixth Annual Meeting___________________________________________________________________________ 27 Summaries of Statements of Officers of the Bank at Informal Discussion of Sixth Annual Meeting ____ -_______________________________________________ -------------- ---------------------------------------_________________________ 28 Decisions of the Executive Directors Interpreting Articles of Agreement of the Bank_________ 42 Accredited Members of Delegations at Sixth Annual Meeting__________________________________________________ 44 Observers _______ ----------__________ ------------ -----------------------------------------------------______________________________________ 49 Executive Directors and Alternate Executive Directors________________________________________________________ 50 Officers of the Board of Governors and Procedures Committee for 1951-52____________________________ 51 1 Annexes V-VII related to business of the Fund. INTRODUCTORY NOTE The Sixth Annual Meeting of the Board of Governors of the International Bank for Reconstruction and Development was held in Washington, D. C., from September 10 to September 14, 1951. The Honorable Douglas C. Abbott, Minister of Finance of Canada and Chairman of the Board of Governors of the Bank, presided. The Board of Governors considered and took action on reports submitted by the Executive Directors, and on matters raised during the Meeting. The Board met in Committee meetings and in five plenary sessions, two of which were joint sessions with the Board of Governors of the International Monetary Fund. In addition, there was an Informal Discussion between the Board and senior officers of the Bank for the purpose of exchanging views on the administration of Bank loans. M. M. MENDELS Secretary INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. November 30, 1951 ADDRESS BY THE PRESIDENT OF THE UNITED STATES, HARRY S. TRUMAN, SEPTEMBER 10, 1951 I am very happy to welcome you to Wash strictions on trade and exchange which are ington again. A great deal has happened not actually needed to further the program since your last meeting here in 1949. The of mutual defense. free nations of the world have joined to The International Bank has now been in gether in a great cooperative effort to pro existence for more than five years. Last year, tect themselves against aggression. I am in spite of international tension and uncer sorry to say much of our energy must now tainty, it loaned almost twice as much money be given to the task of building up military as it had the year before. Virtually all these defenses for the free world. loans were made to economically undeveloped Nevertheless, the tasks of the Interna countries. They are loans which will help tional Bank and the International Monetary to make these countries stronger and more Fund are as important as they ever were. prosperous. World peace and security are not merely I am glad to see that nearly half the money matters of military strength. It is just as loaned by the Bank for development pur necessary and just as important to have a poses has been loaned for the expansion of firm economic foundation on which the struc electric power production. Cheap electric ture of peace can rest. power is one of the greatest needs of many The two institutions that are meeting here of the under-developed countries. It will do today were created in recognition of that wonders in opening up new opportunities for factor. They were started even before the their people. end of World War II and, in fact, before the The Bank has also made major loans for United Nations was organized in San Fran such basic improvements as new roads, rail cisco. But these financial institutions are roads, the construction of port facilities, the part and parcel of the same great effort as increasing of agricultural production, and the United Nations-the effort to obtain the expansion of telephone and telegraph peace in the world. They are responsible for lines. Such projects as these are the founda an essential part of the work that many coun tion stones of a long-range program of eco tries must do to secure the peace and to make nomic development. the world a better place in which to live. I hope that the Bank will continue to go The major purpose of the International ahead with projects of this kind. Monetary Fund is to help the growth of a The defense program of the free nations vigorous system of world trade. In carrying will create some difficulties; there will be out this purpose the Fund tries to reduce shortages of certain capital goods. But we restrictions on foreign exchange that stifle must not slacken our efforts to create new world trade. No job, obviously, will be more sources of wealth and thereby to bring about difficult because of the special economic prob lems created by the defense programs of the higher standards of living in the economi free nations. But all of us now recognize cally under-developed areas. The cause of the principle that each member country has a freedom to which we are dedicated will not legitimate interest and vital interest in the permit us to fall behind in this effort. exchange rates and policies of every other The economic resources of the free na member country. tions taken together are sufficient to provide I am sure, therefore, that none of the both military security and economic prog countries which are members of the Fund ress. As we move forward with our defense will use the present difficulties to justify re- effort we should also do everything possible [ 1 ] to increase the prosperity and raise the liv objectives are to secure peace and to create ing standards of the free nations. We should better lives for all the peoples of the world. remember that this is one of the greatest Our faith is that free men working together positive goals of the United Nations. can attain these objectives. We have not joined together for purely de I sincerely hope that you have a success fense purposes. We are not an association ful meeting and make great advances in the for preserving things as they are. Our great year ahead. • • • ADDRESS BY DOUGLAS C. ABBOTT, CHAIRMAN OF THE BOARDS OF GOVERNORS OF THE BANK AND FUND AT THE OPENING SESSION OF THE JOINT BOARDS OF GOVERNORS, SEPTEMBER 10, 1951 The opportunity of presiding at this Sixth It might be appropriate at this point