Notes to Financial Statements June 30, 1961

Public Disclosure Authorized

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oCD Public Disclosure Authorized Public Disclosure Authorized

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INTERNATIONAL DEVELOPMENT ASSOCIATION

1818 ii STREET N.W. WASIIIN(TON 25, i).c.

September 19, 1961

My dear Mr. Chairman:

In accordance with Section 2 of the By-Laws of the International Development Association, I have been authorized by the Executive Directors to submit to the Board of Governors this Annual Report of the Association covering the period from Sep- nnembcr ')A -gcln U~11tI hT, 190,117kU)V whenW-A the1L111-I i1LL1%i..A;ticles Utof .13~,rLA,1IL1-1L %_1L'.U11Uentc;cd, IIILUinto 7 force, to June 30, 1961. Sincerely yours, AzzS . . 4 I%\ I

EUGENE R. BLACK President

Chairman, Board of Governors,

TInerna-ional Tevel-5Vi'Jen A--oi-.-Lo

NCE..a 44 ,VWAS, INATIONS0I,AVE BEEN PRACn,ICING. ECON04VLJC AID AND FINANCIAL cooneration on a miiltilaiteral hasis ton n linnrrpecelpndpd exepnf The Intprnational Development Association is the newest of the international organizations established as a vehicle for this cooperation. IDA came into existence in September 1960, and, at the close of its first fiscal year, has extended credits of just over $100 million for development projects in its member countries. IDA aims, in the words of its Articles of Agreement, "to promote economic development, increase productivity and thus raise standards of living in the less developed areas of the world." It is an affiliate of the International Bank for Reconstruction and

Dv e-"p ...- 1' buAL.LA tLh I, iLtLIIa1Iank), LiIcaLWsuc 1thtwire iLLiLiV des en- tirely separate. Like the Bank, IDA helps to finance development projects which have been carefully selected and prepared; but it provides capital on more liberal terms of reDavment and is readv to heln finanee a wider ranae of nrniectc thnn the Rnnlc The establishment of IDA came after many years of discussions of the desirability of accelerating economic growth in the less developed areas by adding international funds, repayable on other than conventional terms, to the flow of development capital. After consultations which began among the member governments of the World Bank in 1958, th-e Bank's Board or Governors at its Annual Meeting in i959 approved a United States resolution calling on the Bank's Executive Directors to draft Articles of Agreement for IDA. The Articles were submitted to governments in January 1960. The Articles provided that only mem.ber governments of the Bank were eligible to join the Association, and provided for initial subscriptions aggregating $1,000 million, if all the members of the Bank became original members of the Association. The initial subscription of each original member was proportioned to that member's subscription to the capital stock of the Bank. A sufficient number of members of the Bank accepted mem- bersnip to bring the Articles into force on September 24, 1960. Under the Articles of Agreement, members of the Association are divided into two groups: Part I countries, consisting of the countries which are more advanced eco-

norrically; anA Part IT countries, c11JLi1i theL ess dcvl opVeUFU1nations. I e t -Wo groups make their payments on subscriptions in different ways. A Part I country makes an initial payment of 23% and pays the balance in four equal annual installments; all these funds are convertible and usable yli the Asso.iation for development . redits. A Part II country makes its payments on the same installment basis; but of the total, only 10%-half paid initially and the rest in four installments-is in convertible funds. The remainder is paid in the member's own currency and may not be used by IDA without the member's consent. Part I countries are to be contributors for iDA purposes, altnough tne Association may extend credits for projects in their dependent and associated territories. All Part II countries are eligible to receive IDA credits; those assisted may receive a blend of Bank lonsnan-A TTnA credi,an til ol- --- 1 A - -r-AQ -L A- __ 4F- _- LA t,aLza A.JatnJ- ani'a U±L-.'L -LL h , Vll Llb I.. IUI1IILaMll a., ii4y ULJ assisted by IDA ctedits only. IDA has begun its work at an opportune time. In the era of economic growth and political change which has followed the war. the demand for develonment canital has markedly expanded. In a growing number of developing countries, however, the need for, and the ability to make effective use of, outside capital is increasing faster than the ability to service conventional loans; some countries have already begun to draw close to the limit of the debt they can prudently assume on conventional terms. The problem is comllpounded by the circu1sLanLces or many newly independent countries: tney are not able to rely to the same extent as before on the financial support of the metro- politan powers, including guarantees on loans floated abroad; but they have not yet

developed a credit standing of thleir ow sucient to enable 4-hm t- borrow on 1 scale they require. IDA has no policy of allocating its funds in advance. An effort is being made, however, to assure wide geographic distribution of development creditsf tacing into

4~~~~~~~~~~~~~~~~~~~~~~~ account the priority which should be given to the poorer countries. At the same time, it probablv will be necessary to observe a limit on credits for some countries wllich could quickly present enough suitable projccts to absorb a disproportionate amount of ID A runds. In administering its funds, IDA will have the same regard as the Bank to the obsenrance by recipient countries of sound financial and economic policies and to the careful selection and preparation of projects or programs .ich nma be financed. Where imports of goods or services are being paid for by IDA funds, the Association will normally require that procurement be based on full international competition. IDA now has a lengthening list of Drop)osals under investigation all over the world. They include projects for the development of electric power, transportation, agriculture and other activities of a kind traditionally finaniced by the Bank. They also include projects of a kind not hithcrto financed by the Bank: for instance, for municipal water supply and teclhnical training.

111 I oLdL1UI1tu I1 X sple l' UperatioUn aU tileIIC eeu ror tile type of' duevlop- ment capital that IDA can provide, its resources are small. At the end of the fiscal year, 51 member governments of the Bank had accepted membership of IDA (15 as Pahrf I menmiers and 36 as Part I nmemmbcrs) Subscrirptinnc amoiined to the equivalent of almost $906 million, including $756 million which IDA may convert as needed for its operations. IDA received payments of $208 million on these subscriptions, including $178 million in convertible form. Further payments on initial subscriptions are to be made annually over four years. The 'Articies of Agreement require iDA to keep the adequacy of its resources under regular review. The first review is to take place within the first five years of operation, with reviews at five-year intervals thereafter. The Articles of Agreement also provide, hlowever, that gencral orindivi,hual-- rinrcrases in the- -ubscription of r-lllcbr governments may be authorized at any time. Although IDA is a separate legal entity with its own financial resources, it is closely affiliated with the Bank. The sanme Executive Directors represent rconntriPe tflat are members of both the Bank and IDA. The President of the Bank is ex officio President of IDA, and the officers and staff of the Bank serve as the officers and staff for IDA. This joint administration not only makes for operating economies, but also assures the effective coordination of the policies and procedures of the two institutions. IIJA, like the Bank, nas entered into an agreement with the United Nations. Thne agreement establishes on a formal basis, and includes IDA within, a liaison committee which has been operating on an informal basis for a number of years. The committee Consistsf of the Secretary General of the U. N., the Managing Director of the U. N. Special Fund, the Executive Director of the U. N. Technical Assistance Board, and the President of the Bank and IDA, or their designated representatives.

OPERATIONS

IDA operations began on November 8, 1960, when the Executive Directors of the Asso- cciion01 hldIIU tllirL fiirs[ecting. In its first eight months of operations, ending June 30, 1961, IDA extended development credits totaling $101 million in four countries. The credits are on identical terms: each is for 50 years, uvithout interest, Repayment is due in foreign exchange; amortiza- tion is to begin after a ten-year period of grace; thereafter, 1% of the principal is repayable annually for ten years and 3% is repavable annually for the final 30 years. A service charge of 3/4 of 1% per annum, payable on the amounts withdrawn and outstanding, will be made to meet IDA's administrative costs. These terms do not necessarily set a de- tailed pattern for future iDA credits, but they indicate that iDA's assistance is to be given on a basis strikingly different from the basis on which assistance has hitherto been available from international sources.

.IUU1i L1ldI Udet1101i VIDAk cdits1L up to JuInI 20J are giVenl UbUeW.

HONDURAS $9 million credit for highwvays signed May 12, 1961

This development credit, the first to be extended by IDA, will make $9 million available to Honduras to assist in carrying out a program of highway development and maintenance.* -. TT1 ne-_ program_t lbeing1 _'-_ _ nnancedr -_ 1I includes1 1 -a o6-mlne' 1 extension. _ - orr mne.1 - TTTvvesrern Highway of Honduras, from its present terminus at Santa Rosa de Copan to the border of El Salvador; the construction of feeder roads in Western Honduras; the continuation for two years of a highway maintenance program.; and a high way planningsuvy The highway extension will traverse a region which, although one of the most populous in Honduras, has remained until now inaccessible bv road and limited mainly to subsistence agriculture. The new road should stimulate production on existing farms

61 and open new land to settlement; it will also provide the first direct link between Puerto Cortes on the Caribbean in the north with El Salvador and Guatemala in the south. and should thus greatly reduce transport costs between the rapidly developing northwestern region of Honduras and the other tivo countries, contributing to the economic inte- gration of all three.

SUDAN $13 million credit for agriculture signed Iune 14, 1961 The Roseires Dam project on the Blue Nile provided the occasion for the first joinf TDA-\World Bank operation, the IDA credit being extended in conjunction -ith a Bank loan of $19.5 million. The German Government also took an important share in this operation by providing, through Kreditanstalt fur Wiederaufbau, a long-term loan equivalent to $18.4 million. A total of $50.9 million is thus being made available to the Sudan to finance this important extension of irrigation, on which depends the future development of the country. The water to be stored by the dam, which will cross the Blue Nile at a point about 66 miles downstream from the Ethiopian border, will more than double supplies available Irrigat aL ionlJ tur..±- v 'o- ~ I I A01 0 I,n ,1,4± IL Willl lh'...a IL JSJVaaIUIL, L'J L'fl.lfl for .iato duing periods of seasor.al shrae wilmaeit_It osbet rn nearly 900,000 acres under irrigation for the first time, and also greatly to incease yields and diversify crop production in other areas where water supplies are at present inade- quate. The dam will be about ten miles long, with a concrete central section 196 feet high and more than two-thirds of a mile long. Bccause of work interruptions in flood seasons, construction is expected to take several years.

CHILE $19 172illionl credit for highways signied jun2e 28, 1901 This development credit, extended jointly with a World Bank loan of $6 million for road maintenance equipment, will cover the foreign exchange cost of construction,

re 1a 1-1:0&_ -- A A_Ans o 4 4 1 A;_ mA g AAAAJA.-- _A A2 ---AA1 A,Ao _ . &- I1ll UllILdLIUll dLlU .,VulIlulluALIVI U Ll Ill%ll aU1UdIy I dJ 111U3III %.4lLi%, LIl OUULIIGLII provinces, the country's most important agricultural region. Existing dirt roads in Southern Chile become impassable during the five-month rainy season each year; and the damape caused there bV the eartholuakes of Mva 1960 has only partially been repaired. With the help of the credit, about 600 miles of roads will be newly built or relocated, and 1,600 miles of existing roads will be improved, providing an integrated all-weather road system connecting the main producing areas with consumption and processing centers. The benefits of good road transport in the Southern zone sllould be felt by the whole Chilean economMLy. The ten provinces already produce about 53% of the country's total agricultural output; with better communi- cations they could further reduce Chile's dependence on imported produce, agricultural and livestionlc nrnroidctf

I N D I A $60 million credit for highvays signed lune 21.,1961 The credit will cover half the cost of improvements to the National Highways of india during the first 31/2 years of the Third Five-Year Plan which began April 1, 1961. The funds will be used mainly for the construction of about 660 miles of highways, including 19 major bridges, which will open up some of the less developed parts of Ini,X mrv co1necion betweenV.FLVCimportantdlL agric-ulLural adil inustrial centers, ailu relieve traffic congestion in the vicinities of the tvo principal cities and ports, Calcutta and Bombay. Demand for rail and road transport rose very rapidly vwith tfle growth of agircultural and industrial production during the Second Five-Year Plan, and this trend is expected to continue during the Third Five-Year Plan. While the railways must expand to meet the growing demand for long distance and bulk movements of freight, there is also pressing need for an improved road network to enable motor vehicle transport to make tne.1 snorter1 _I . nauls1 and1_ ,to move highi-value1 goods._ Trw ne 1iuATTh A crecuir1'. wiii'11 1neip 1 to. nnance works to eliminate some of the major deficiencies in the 15,000-mile National Highways system which links the main centers of population. All the works are located in the region of the Cangetic Plains in n=rtlern India, and in coastal areas around Calcutta and Bombay where population density is highest, and where 40% of India's vehicles are registered. Financial Statatemnts

Sta,tement onfCondition -,,,- - - - A Statement of Income and Expenses . . . B Stfaemepnt rof Hoings nof Cu1rrPncies nand Notes C Statement of Subscriptions and Voting Powver ... D SummnarvStatenmentof Develon ent Credits...... E.. Notcs to Financial Statements ...... F

Opinion of Independent Auditor.G

Oiher AppendiUIs

AlttLnA aIIJtdIVt.s JJUU L.L Adii-rtv I B u dg e t 5 ...... -.... Governors and Alternates ...... I

ExecuLIve DLLULI rctoIrLLJ andAl3aL a-UY VotiL- ± LJ ...... ) Principal Officers ...... K APPENDIX A

Statement of Condition June 30, 1961 Expred in- United States Currency-Yee-c- F-TaZUJVE S.flcflWn-J,- FIppena:x

ASSETS DUE FROM BANKS AND OTHER DEPOSITORIES (See Appendix C) Member currencies Unrestricted ...... $ 12,774,534 Subject to restrictions-Note B ...... 5,965,200 $ 18,739,734

INVESTMENTS Governmnent obligations (tmcost or amortized cost), United States (face amount $38,400,000) ...... $ 37,993,220 Time deDosits maturing within six months- United States dollars ...... 20,000,000 Accrued interest ...... 146,321 58,139,541

RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS (Seea ppendix C) Non-negotiable, non-interest-bearing, demand notes Unrestricted ...... $108.159.600 Subject to restrictions-Note B ...... 24,132,588 132,292,188

EFFECTIVE DEVELOPMENT CREDITS HELD BY ASSOCIATION-UNDISBURSED (SeeAApendix E) ...... - 90000

TOTAL ASSETS .$218,171,463

LIABILITIES, SUBSCRIPTIONS AND ACCUMULATED NET INCOME LIABILITIES Accounts payable and other liabilities .$ 108,013 Undisbursed balance of effective development credits (See Appendix E) . . 9,000,000

SUBSCRIPTIONS (See Appendix D)-Note C Amounts subscribed ...... $905,560,000 Less portion for which payment is not yet due-Note D Unrestricted ...... $577,617,200 Subject to restrictions-Note B ...... 119,664,000 697,281,200 208,278,800 Prepayments and payment on account of pending subscription 429,925

ACCUMULATED NET INCOME The period from September 24, 1960 to June 30, 1961 .354,725

TOTAL LIABILITIES, SUBSCRIPTIONS AND ACCUMULATED NET INCOME . $218,171,463

10 APPENI)IX B

Statement of Income and Expenses For the Period from September 24, 1960 to June 30, 1961

Expressed in United States Currency - See Notes to Finanicial Staeemenes, 1ppendix F

INCOME

Tncom,efro,n v es...... ens...... (ZO....$892,75C Other income .20,908

(2 11 1o01, GROSS I N ...... C O M E 9-13,383

EXPENSES

Administrative expenses:

Personal services. $2S9,89 Contributions to staff benefits .36,801 Fees and compensation .119,128 Representation .407 Travel .79,859 Supplies and materials .5,420 Office occupancy .24,659 Communication services .14,772 Furniture and equipment .7,967 Priting.5,975 Insurance .3,703 Handling and storage of gold .72

GROSS EXPENSES .$558,658

NET INCOME $354,725

-~~ ~ ~~~1 APPENDIX C

btatement of Holdings of Currencies and Notes june 30, 1961

Exrc6e in United S;Latest.1CZLCurecy-C IV'oAe; to rmFiJcj,a OS;aJCTcetJs ippena?;x F'

Non-negotiable, ch,,*t r on-,trs:ba,, Member currency Currcncy demand notes Total

Afghanistan ...... Afghani ...... $ 363,600 - YS 363,600 Australia ..... , F.Pound ...... - 3,632,400 3,632,400 Austria ... Schilling ...... - 907,200 907.200 Bolivia ... Boliviano ...... - 190,800 190,800 Canada ... Dollar ...... - 6,809,400 6,809,400 Ceylon .. . Rupee ...... = 545,4vO 54nfl Chile ... Escudo ...... 635,400 - 635,400 China . New Taiwan dollar ...... - 5,446,800 5,446,800 Colombia ..... Peso .635,400 - 635,400 Costa Rica ..... Colon .36,000 - 36,000 Dennm.ark ...... Krone ...... -7 1573200i1 Ethiopia ... Dollar ... - ,90,000 90,000 Finland .. ... Markka .689,400 - 689,400 France ..... New franc. 9532,800 - 9,532,800 Ghana ..... Pound - 424,788 424,788 Guatemala ..... Quetzal .72,000 - 72,000 Haiti ..... Gourde .136,800 - 136,800 Honduras ...... Lempira .54,000 - 54,000 iceland ...... Kroao ...... - 18ofty India .. Rupee ...... 18,000 7,245,000 7,263,000 Iran .. Rial ...... - 817,200 817,200 Iraq .. Dinar ...... - 136,800 136,800 Ireland ... Pouind ...... - 545,400 545,400 Israel. ------Po.,nd . .. . - 302.400 3 A,l400 Japan .... Yen - 6,046,200 6,046,200 Jordan ., ...... ,.... Dinar ...... 54,000 54,000 Korea .r.,..,,. ., Hwan ...... 226,800 - 226,800 Malaya . Dollar ...... - 453,600 453,600 Mexico ...... Peso . . 1,573,200 - 1,573,200 Morocco .... Dirham ...... 635,400 - 635,400 Netherlands ...... ,,.Guilder ... 4,...... 4,993,200 4,993,200 Nicaragua ..... Cordoba . .54,000 - 54,000 Norway .... Krone ...... - 1,209,600 1,209,600 Pakistan ...... Rupee 1...... 1,816,200 1,816,200 Paraguay ...... Guarani ...... 54,00 - 54,000 Philippines ...... Peso-...... 907,200 907,200 Saudi Arabia ...... Riyal ...... 666,000 00 South Africa ...... Rand ...... 1,816,200 - 1,816,200 Spain ...... Peseta 1...... 1,816,200 1,816,200 Sudar ...... Sudan.Puu,,d Pound;8,80...... - 181,8008i8000 ~~~~~~~J.181,800- Sweden ...... Krona 1...... 1,816,200 1,816,200 Thailand ...... Baht -...... 545,400 545,400 Tunisia ... Dinar ...... 271,800 - 271,800 Turkey ... Lira ...... - 1,044,000 1,044,000 Uni'ted Arab Repubfic ...... Pound ...... - ,0-,4- 15,4 United Kingdom ...... Pound ...... 85,200 23,520,000 23,605,200 United States ...... Dollar ...... 650,934 57,652,200 58,303,134 Viet-Nam ...... ,.Piastre ...... 271,800 - 271,800 Yugoslavia ...... Dinar ...... 727,200 - 727,200

TOTAL .. $18,739,734 $132,292,188 $151,031,922 (1)

(;) Of this amount the equivalent of $120,934,134 is unrestricted and the equivalent of $i0,380,988 is subject to maintenance of value (see Note E).

12 1 APPENDIX D

Statement of Subscriptions and Voting Power June 30, 96

S U B S C R I P T I O N S VOTING POWER

MEMBER Amounts Amounts Total Percent paid in not yet due Number Percent (Note C) of total (Nose E) (Notes B and D) of votes of total INITIAL SUBSCRIPTIONS PART I MEMBERS Australia ...... 520,180,000 2.23 S 4,641,400 $ 15,538,600 4,536 2.19 Austria ...... 5,040,000 .56 1,159,200 3,880,800 1,508 .73 Canada ...... 37,830,000 4.18 8,700,900 29,129,100 8,066 3.90 Denmark ...... 8,740,000 .97 2,010,200 6,729,800 2,248 1.09 Finland ...... 3,830,000 .42 880,900 2,949,100 1,266 .61 France ...... 52,960,000 5.85 12,180,800 40,779,200 11,092 5.37 Germany ...... 52,960,000 5.85 12,180,800 40,779,200 11,092 5.37 Italy .... 18,160,000 2.01 4,176,800 13,983,200 4,132 2.00 Japan ...... 33,590,000 3.71 7,725,700 25,864,300 7,218 3.49 Netherlands ...... 27,740,000 3.06 6,380,200 21,359,800 6,048 2.93 Norway ...... 6,720,000 .74 1,545,600 5,174,400 1,844 .89 South Africa ...... 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22 Sweden ...... 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22 United Kingdom ...... 131,140,000 14.48 30,162,200 100,977,800 26,728 12.94 United States ...... 320,290,000 35.37 73,666,700 246,623,300 64,558 31.25 SUB-TOTAL ...... $739,360,000 81.65 $170,052,800 $569,307,200 155,372 75.20

PART II MEMBERS Afghanistan ...... 1,010,000 .11 $ 232,300 $ 777,700 702 .34 Bohivia. - : -...... 1060000 .12 2431R00 816;200 712 a4 Ceylon ...... 3,030,000 .33 696,900 2,333,100 1,106 .54 Chile ...... 3,530,000 .39 811,900 2,718,100 1,206 .58 China ...... 130,260000 3O 8 9 3- 6959,800 02 3.17 Colombia ... 3,530,000 .39 811,900 2,718,100 1,206 .58 Costa Rica ...... 200,000 .02 46,000 154,000 540 .26 Ethiopia ...... 500,1.06!!500 0 385(,00 .29600n Ghana ...... 2,360,000 .26 542,800 1,817,200 972 .47 Guatemala ...... 400,000 .05 92,000 308,000 580 .28 -- ...... ---l 760,000 .08 174,800 585,200 652 .32 Honduras ...... 300,000 .03 69,000 231,000 560 .27 Iceland ...... 100,000 .01 23,000 77,000 520 .25 India ...... 40,350,000 4nd.46 9,20,00 31,069500 8,570 4.]5 Iran ...... 4,540,000 .50 1,044,200 3,495,800 1,408 .68 Iraq ...... 760,000 .08 174,800 585,200 652 .32 Ireland ...... 3,030,000 .33 696,900 2,333,!00 1,106 .54 Israel ...... 1,680,000 .19 386,400 1,293,600 836 .40 Jordan ...... 300,000 .03 69,000 231,000 560 .27 Korea ...... !,260 000 J4 289,800 970 200 752 .36 Malaya ...... 2,520,000 .28 579,600 1,940,400 1,004 .49 Mexico ...... 8,740,000 .97 2,010,200 6,729,800 2,248 1.09 Morocco ...... 3,530,000 .39 811,900 2,718,100 1,206 .58 Nicaragua ...... 300,000 .03 69,000 231,000 560 .27 Pakistan ...... 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22 Parag-uay ...... 300,000 .03 69,000 231,000 560 .27 Philippines ...... 5....,040,000 .56 1,159,200 3,880,800 1,508 .73 Saudi Arabia ...... 3,700,000 .41 851,000 2,849,000 1,240 .60 Spa' nI ...... 10,090,VVV .J .2,320V,700 V { 7,76930 2,518. Sudan ...... 1,010,000 .11 232,300 777,700 702 .34 Thailand ...... 3,030,000 .33 696,900 2,333,100 1,106 .54 unsiaU...... :. , 50,0 .7 3 300 1,1:62,70 8 2 .3 Turkey ...... 5,800,000 .64 1,334,000 4,466,000 1,660 .80 United Arab Republic .. 6,030,000 .67 1,386,900 4,643,100 1,706 .83 Vict-Nam ...... 1,,;0,000 .;17 347,300 1,;62,700 802 .39 Yugoslavia ...... 4,040,000 .45 929,200 3,110,800 1,308 .63 SUB-TOTAL ...... S166,200,000 18.35 S38.226,000 $127,974,000 51,240 24.80 TOTAL ...... $905,560,000 100% $208,278,800 $697,281,200 206,612 100%

13 APPENDIX E

Summary Statement of Development Credits June 30, 1961

E.xpressed iri United Stadtes Currelncy - 0CSVQcN7 LU ZFlU,tJUil 57aCrci77ct7 dppcnadixa F

Effective development creditsv held Development Member in whose territoriesdevelopment Disbursed Undisbursed credits not yet credits have been made (1) portion portion Total effective (2)

Chile ...... - $ - - $19,000,000

.H.nd.Iuras...... - 9,000,000 9,000,000.

India ...... - - - 60,000,000

Sudan ...... - - - 13,000,000

TOTALS .. . S - $9,000,000 $9,000,000 $92,000,000

(1) All development credits have been made to member governments.

(2) Agreements providing for these development credits have been signed, but the development credits do not become effective and disu,remePnts thepreiundpr dro not start unti! thip 1bnrrowPr tk-Pes certain action and furnishes certain documents to the Association.

14 APPENDIX F

Notes to Financial Statements June 30, 1961

NOTE A Amounts in currencies other than United States dollars have been translated into

(i) In the cases of 40 members, at the par values as specified in the "Schedule of Par Values", published by the international Monetary Fund. (ii) In the cases of the remaining 11 members (Afghanistan, Bolivia, Canada, Chile, China, Korea, Malaya, Paraguay, Thailand, Tunisia and Viet-Nam), at the rates used by such members in making payments of subscriptions to the Association.

NOTE B Pursuant to Article IV, Section 1 (a) these amounts may be used by the Association for ad.mnistrative expenses incurred by the Association n the territories of any Part II member whose currency is involved and, insofar as consistent with sound monetary nnlir;ec in nnurnment- fnr annnrc ,ntA cepri&rec nrnrrl,,ref ;in fh- F-rrt-o-;- -f o-rb maember and required for projects financed by the Association and located in such territories; and in addition vhen and to the extent justified by the econo.nic and financial situation of the member concerned as determined by agreement between the member and the Association, such currency shall be freely convertible or otherwise usable for projects financed by the Association and located outside the territories of the member.

NOTE C Subscriptions are expressed ;n terms of United States dollars of the weight and fineness in effect on January 1, 1960. NOTE D Payment of this portion of the subscriptions of members is due on November 8 in each of the years 1961 through 1964 as follows: One and one quarter percent of the subscription of each member is payable annually in gold or freely convertible currency; eighteen percent of the subscription of each member is payable annually (a) in gold or freely convertible currency by Part I members and (b) in the currency of the subscribing member by Part II members.

NOTE E Under Article IV, Section 2 each member is required, if the par value of its currency is reduced or the foreign exchange value of its currency hasr in the oni;non of the Associ-in- depreciated to a significant extent within that member's territories, to maintain the value of the Association's holdings of its ninety percent currency, including the principal amount of any notes substituted therefor, and the Association is required if the par value of the m.ember's currency iss inc-eased, or the foreign exchange value of the member's currency has in the opinion of the Association appreciated to a significant extent within that member's territori-es t retourn to the member thei;ncrease in the v-ilue of such ninety percent currency held by the Association; provided, however, that the foregoing shall apply~onlys long,y-c asand.. i-he extienti i-h-t, sc-~-h cu..ecy1-h1-flnn h--ie heck- -;,i, disbursed or exchanged for the currency of another member.

15 APPENDIX G

Opinion of Independent Auditor

1710 II Street, N.W. Washington 6, D. C. August 9, 1961

INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C.

In our opinion, the accompanying financial statements present fairly, in terms of United States currency, the financial position of the International Development Association at June 30, 1961, and the results of its operations from September 24, 1960 (the date when the Articles of Agreement establishing the Association entered into force) to June 30, 1961, in conformity with generallv accepted accounting principles. Our cxamination of these statements was made in accordance with generally accepted auditing standards, and accord- ingly included review of the allocation of expenses incurred jointly with the International Bank for Reconstruction and Development, tests of the accounting records and such other auditing procedures as we considered necessary.

PRICE WATERHOUSE & CO.

Financial Statements Covered by the Foregoing Opinion

APPENDIX Statement of Condition ...... A Statement of Income and Expenses ...... B Statement of Holdings of Currencies and Notes .. C Statement of Subscriptions and Voting Power .. D Summary Statement of Development Creditsr.. E Notes to Financial Statements .. F

16 APPENI)x H

For the Fiscal Year Endine June 30. 1962

There is outlined below the Administrative Budget for the fiscal year ending June 30, 1962, as prepared by the President and approved by the Executive Directors in accordance with Section 8 of the By-Laws. The administrative expenses incurred during the partial year ended June 30, 1961, are shown below for information.

dIctual Expenses Budget

1961 1962

STA FF

Personal Services ...... $259,895 $647,500 StaffBenefits...... ,1,000 Travel ...... 79,859 300,000 Consultants ...... 118,612 250,000 Representation ...... 407 $495,574 2,500 $1,291,000

OTHER ADMINISTRATIVE EXPENSES

Fees & Compensation ...... 516 7,000 Supplies & Materials ...... 5,420 15,000 Office Occupancy ...... 24,659 66,000 Cnmm.inrtin,, ,, 14 779 33000 Furniture & Equipment ...... 7,967 11,000 Printing ...... 5,975 0,000 Insurance ...... 3,703 6,500 Other ...... 72 63,084 500 159,000

CONTINGENCY - 50,000

GRAND TOTAL ...... A-,-__1__c

117 APPENDIX I

Governors and Alternates June 30, 1961

Member Government Governor Alternate

Afghanistan ...... Abdullah Malikyar Abdul Hai Aziz Australia ...... Harold Holt Sir Roland Wiison Austria ...... Josef Klaus Hubert Schmid Bolivia ...... Humberto Fossati Rocha Adolfo Linares Canada ...... Donald M. Fleming A. F. W. Plumptre Ceylon ...... Felix R. Dias Bandaranaike H. S. Amerasinghe Chile . . .AALEduardo Figueroa AlvaroOrrego Barrus China ...... Chia-Kan Yen Tse-kai Chang Colombia ...... Hernando Agudelo Villa Jorge Cortes-Boshell Costa Rica ...... Alvaro Castro Alvaro Vargas

Denmark ...... Otto Muller Poul Biorn Olsen Ethiopia ...... Yawand-Wossen Mangasha Taffara Deguefe Finland ...... R. v. Fieandt Reino Rossi France ...... Minister of Finance Pierre P Schw-e Germany ...... Ludwig Erhard Franz Etzel Ghana ...... F. K. D. Goka Hubert C. Kessels Guatemala ...... Manuel A. Bendfeldt Jauregui Max Jimenez Pinto Haiti ...... Herve Boyer Antonio Andre Honduras ...... Celeo Davila Thian Milln Bprmnldez Iceland ...... Petur Benediktsson Thor Thors

Inuia . .tz orarji Ri. iDesai L. K. jha` Iran ...... Abdol Hossein Behnia Djalaleddin Aghili Iraq ...... Mudhaffar H. Jamil Abdul Hassan Zalzalah Ireland ...... Seamas 0 Riain T. K. Whitaker Israel ...... David Horowitz Jacob Arnon Italy ...... Donato M-he Giorg Japan ...... Mikio Mizuta Masamichi Yamagiwa Jordan ...... Hashem Jayousi Hazem Nuseibeh Korea ...... Chang Soon Yoo Han Been Lee Libya 2 ...... Ahmed Lahsairi A. A. Attiga

Malaya ...... Tan Siew Sin Dato' Ismail bin Dato' Abdul Rahman Mexico ...... Antonio Ortiz Mena Jose Hernandez Delgado Morocco ...... M'Hamed Douiri Mohared Amine Bengeloun Netherlands ...... J. Zijlstra S. Posthuma Nicaragua ...... Guillermo Sevilla-Sacasa J. J. Lugo Marenco Norway ...... Arne Skaug Thomas Lovold Pakistan ...... Mohamed Shoaib M. A. Mozaffar Paraguay ...... Cesar Romeo Acosta Federico Mandelburger Philippines ...... Andres V. Castillo' Eduardo Z. Romualdez Saudi Arabia ...... Ahmed Zaki Saad

South Africa ...... T. E. Donges M. H. de Kock Spain ...... Mariano Navarro Rubio Juan Antonio Ortiz Gracia Sudan ...... Abdel Magid Ahmed Hamzah Mirghani Hamzah Sweden ...... G. E. Straeng N. G. Lange Thailand -...... -.-. Sunthorn Hnnglndnrnm Rennmn Wnna wnn Tunisia ...... Ahmed Ben Salah Turkey ...... Kemal Kurdas Ziya Kayla United Arab Republic .. Aodue Moneim El Kaissouni izzat Trabouisi United Kingdom ...... John Selwyn Brooke Lloyd Sir Denis Rickett United States ...... Douglas Dillon George W. Ball Viet-Nam ...... Tran Huu Phuong Vu Quoc Thuc Yugoslavia ...... Nikola Mincev Vladimir Ceric

I As of August 1, 1961 2 Joined on August 1, 1961 3 As of July 5, 1961

18 1 APPENDIX J

Fvoctu'tieo nir.i,ito.rc and Altornatoe and 1Vtitinn P,,ino

June 30, 1961

Director Alternate Casting votes of Total votes

APPOINTED

John M. Leddy Eric Cocke, Jr. Uinted States 64,558

David B. Pitblado Geoffrey M. Wilson United Kingdom 26,728

Rene Larre Jacques Waitzenegger France 11,092

Otto Donner H. Gorn Germany 11,092

B. K. Nehru C. S. Krishna Moorthi India 8,570

ELECTED

Gengo Suzuki Prayad Buranasiri Japan, Ceylon, Thailand 9,430 (Japan) (Thailand)

Mohamed Shoaib Ali Akbar Khosropur Pakistan, United Arab Republic, Iran, Saudi 9,386 (Pakistan) (Iran) Arabia, Sudan, Iraq, Ethiopia, Jordan

Louis Rasminsky L. Denis Hudon Canada, Ireland 9,172 (Canada) (Canada)

Ake Lundgren Jaakko Lassila Sweden, Denmark, Norway, Finland, Iceland 8,396 (Sweden) (Finland)

Pieter Lieftinck Augustin Papic Netherlands. Yugoslavia. Israel 8.192 (Netherlands) (Yugoslavia)

John MVI.Garland A. J. J. van Vuuren Austraiia, South Africa, Viet-Nam 7,856 (Australia) (South Africa)

Jose Aragones Sergio Siglienti Italy, Spain 6,650 (Spain) (Italy)

Reignson C. Chen China 6,552

Omar S. Elmandjra S. El Goulli Morocco, Malaya, Ghana, Tunisia, Afghanistan 4,686* (Morocco) (Tunisia)

Luis Machado Lempira E. Bonilla Mexico, Guatemala, Honduras, Nicaragua, Costa 4,488 (Cuba) (Honduras) Rica

Andre van Campenhout Ernst A. Rott Turkey, Austria, Korea 3,920 (Belgium) (Austria)

Jorge Mejia-Palacio Jose Camacho Philippines, Colombia, Haiti 3,366 (Colombia) (Colombia)

Tuan Haus Solis Carlos S. Brignone Chile, Rolivia, Paraguay 2,478 (Bolivia) (Argentina)

*Libya, with 702 votes, should be added as of August 1, 1961

19 APPENDIXK

Principal Officers of IDA

EUGENE R. BLACK ...... President

SiR VWILLiAMyt LIAFF ...... Vi-. P-eid

J. BURKE KNAPP ...... Vice President

LEONARD B. 'IST ROBERT 1.V. CAVANAUGH.I Special Representative for Africa Treasurer

RICIIARD H. DENIUTiH MI. tI. A.4£-D- Director, Technical Assistance and Planning Staff Secretary

S. R. COPE A. BROCHES Director of Operations-Europe,Africa and Australasia General Counsel

JOSEPH RucINSKI WlLLIAM F.1O.;ELL Director of Operations-South Asia and Middle East Director of Administration

ORVIS A. SCHMIDT HAROLD TN. TRAVES,J. Director of Operations-WVesterrt Hemisphere Director of Information

I. P. M. CARGILL jOH.S D. MILLER Director of Operations-FarEast Special Representative for Europe

SIMON ALDEWERELD JOHN C. DE W\ILDE Director of Technical Operations Acting Director, Economic Staff