THE WORLD BANK GROUP ARCHIVES
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Folder Title: Electric Power Development Project - Tokke Power - Norway - Loan 0138 - P037468 - Negotiations - Volume 2
Folder ID: 1705808
Project ID: P037467
Dates: 4/2/1956 – 5/2/1956
Fonds: Records of the Europe and Central Asia Regional Vice Presidency
ISAD Reference Code: WB IBRD/IDA ECA
Digitized: 7/19/2018
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:NORWAY_ Res~ (138ND) rr
1 ~i~i "~<-- · \t 11111111111111111111 11 11111111 IIl ll/1 1111111111111 ~·~i 1706808 RETURN TO \\, . _..£Li Al 995-063 Other#: 5 Box# 170972B Electric Po~er Development Project- Norway - Loan 0138 - P037468 - RECORDS GENTER ROO,. 1; ~ 1 Negotiations - Volume 2 PPE 1966 MATERIAL ox ,_)t_; 2- •
DECLASSIFIED WITH RESTRICTIONS WBG Archives THIS FILE IS CIDSED AS OF
FOR FURTHER CORRESPONDENCE SEE :
Records Center ~~ -~,~~- fay 2 , 1956 ~ -
1-l OTES 01' THE TOKKE PROJECT NORWAY ~J., sta..i4~ t.,,./ The project, which will be constructed by the NVEil-larwegian vatercourse and Electricity Boaro}, a Government institution, consists of a hich head hydro-
electric plant with an underground power house in which 400, 000 kw in 4 units will be installed. Water for the operation of the plant will come from natural lakes
and storage reservoirs in the water shed of the Tokke and Vinje Id.vers. The
project can be expanded ultimately to 800, 000 kw by the further utilization of the water resources in the catchnent area. The proposed construction, therefore, may
be considered to be the first sta~e of the ultimate development.
The development has been under consideration for about 20 years and the
Legislature has been periodically appropriating money for study and water rights for
a number of years. The topograpriical and geological surveys have been largely
completedo (0n April 23 , 1956, the Legislature approved the entire scheme of dev
elopment~ Preliminar ~ tfu.t s~ tnt:vi~ ~ etc., has been started. Construction of dams and tunnels~will be awarded to con- ~~~d.,;~'-~) ~ '/.oe,k,;i ' /.Jk~ k - tractors. po:w:oP aoY:ee, --fie~, ~ transmission fines and the installation i..£:.t.ivi ~l~~ c,J_ ,-Is 41~/f, -(~ ~ ~futf 1/t.w u~·i.c of equipment will be unde taken by the NVE fwo units of 100, 000 kw ea~h are ~J..~'t~~J· scheduled to be in operation by the end of 1961 and the remaining two unitsAby ~ '{-(~ ~ tklli 'i'~ the end of 1962 . The construction of the necessary transmission lines will keep -2 - p a~~ :UV fw f,U44~ 1&i;Jrvr- pace with the installation of generating units. A. "tbere will be international bidding on equipment, but Norwegian finns will be given preference if delivery dates are acceptableo The project is estimated to cost 500 million kroner (about ~O million) o ~~ouf~~ The cost per kw installedAis ~1137 'Rlilliea, a very reasonable figure . The cost will be financed by contributions from the National budget, by sales of bonds to municipalities and counties and by borrowing from the Bank. The Bank loan will provide for 24% of the total cost. wfl·dv .u ~ /{) it vf fl... ·I 1! { f'W'"'"'*"" · The 2 billion kwh ~ted to be produced annuall:y by the proJect,l..lrill be ~ . J- ~We~ ..,.. fed into the Southe~Grid which,.. consumes 55% of the electric energy produced in ~ Norway. Consumption in the area has been rationed in recent years owing to a shortage in generating capacityo It is estimated that the entire output of ~~~ the project will be utilized by"- 1963, practically as soon as it is completed. With the increase in rates proposed, the NVE should earn net operating revenues, before interest, equivalent to a return of about 4% on fixed assets. The net /,-uJ profits will be very small, but as ehe&p power is so important in the Norwegian economy, the rate of return is considered to be ~ in the circumstances. FORM No . 57 (5- 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: May 1, 1956 FROM: J . Trempont SUBJECT: Working Party Meeting on Norway, April 19, 2:45 p.m. Side-Letters Agreement was reached on all the drafts. Loan Agreement Section 8.01 - The closing date to be inserted in the draft is June 30, 1961. Agreement was reached on the draft. Amortization Schedule Agreement was reached on the draft. JTrempont FORM NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUN! CATION: Memorandum DATED: April )0• 1956 TO: Kr. S.R. Cope FROM: George L. Martin• New York Office. F1LED UNDER: Austria • Third loan operations. SUMMARY: Have been turned down by First National City and Banlc of .America on both Finland and Norwq. Expect to hear tomorrow from Jlanuf'acturera Truet on F1nl&nd & they will probably come along and New York Truet is aleo conaidering Finland loan. but Norn.ya juat too long. t. DET KONGELIGE DEPARTEMENT FOR HANDEL OG SKIPSFART April .30, 1956 International Bank for Reconstruction and Develop!Tlent 1818 H Street, N.w. Washington 25, D .C. Gentlemen& In connection with the proposed Loan Agreement (Tokke Project) to be entered into between the Kingdom of Norway and the International Bank for Reconstruction and Development, I 8Jl'I writing on behalf of the Kingdom ot Norway to SU1Tl!!\arlze am reaffirm certain facts relating to the external debt of the Kingdom of Norway, as follows: (1) We have subnitted to you with our letter of February J, 1956 the following: Farm la List of external pu~licly-issued privately-held bonned debt and debt p~yments during six months' period ended.a Dece~ber 31, 1955• Form Bi List of other external public debt and debt payments during six months' period ended: December Jl, 1955• 1t various times in the past we have also sub~itted to you Form Ca Description of Individual Debt, covering each or the items of debt listed in Fonns 1 and B. (2) Except as indicated in Annex l attached hereto, such forms accur ately set forth the amounts and principal terms and conditions ot all outstanding public debt of Norway, Bank or Norway and or the political subdivisions as of December 31, 1955• There has been no substantial increase in suoh external public debt since t h~t time except as 1ndic~ted i n t he memorandur.t attached marked lnnex &. • - 2 - (J) Kxcept aa stated in suoh rorms and annex, no mortgages, pledge•, charges or other liens enet in ra~or of any such debt. It is our mutual understanding that, in making the proposed loan, -,o.xr Bank mq re~ on the atataente and tacts sat forth herein and in the document• mentioned above• Very trul,Y yours, D:NGDOM 0, IORWlY BTff./{. 1· • lttaohllents • lnnex l to letter of &.pril .30 , 19'6 to International Bank tar Recon struotion and DeTelopment tram Kingdom or N CJrW&1' S t a t e m e n t or the terms &nd comitions or external public debt not included in Forms 1, Band C subffli.tted to International Bsnk rar Reconstruotion and DeTelopment with letter dated lebruary J, 1956 from the Norwegian Ministry or Commeroe and Shipping. I. Publlely-1Asued priv'.!ltely-beld bonded debt• Title apd I11usz Date or kr:•mnt 5 % Loan or 1956 City or Trondheill Janu&r7 23, 1956 lwed.1111 lrCll'lor 32,000,000 4 1/2% Loan ot 1956 &.pril 16 UM! 19, hi•• Prana1 City of Oelo 19'6 25,000,000 See enclosed forma C n. other external public debt luropean P~ents Union Credit. 25% accounting deficits ot Pebruary an&! llareh 1956 1,713,000 unite ot a/o less 25 % aeoounting surplus or Janu&t"J' 1956 32,000 and repsy,mnte or funding agre•ente ..1.. ,&.l71.-,lliilooo ...______1.... 4... 9.~ ..... ooo _____ •__ _ Net increase Jl0.000 ppjta or sic III. llatured but unredened IIUl.tiple currencie1 bond• whioh are the subject of a1spute with :rrench bondholders Norwegian Ironer race amount as or lhrch 31, 1956 Norwegian Government Loans (D1reot losn issues of 1896, 1900, 1902, 1903, 1904, &nd 1905 1,215,588 The lgrieultural Properties Bs.nk or Norway (Issue guars.nteed by the Norwegian Gm-ernment - 1904) S24,520 Mortgage B1.nk or the Kingdom or 1'orwa7 (Issues guaranteed by the Norwe1ian GoverDment - 1B8~, 1886, 1887, 1889t 1891, 1892, 1895, 1898, 1900, 1902 1905, 1907, 1909 J ___5.,.'.j.,.J .. 29..,. 1._ooo.....,_ Total I •s: · 1,WJ,108 1pc1oaw:11 1'0RJI C 1. Official titles City of Oslo 4 1./2% Loan ot 1956 2. Nmne o~ borrowers City or Oslo J. Guarsnteed. statues Direct obligation or the City 4• Creditors Holders or bearer bonds ' 5• Purpoeea For the expansion of the electrical plants or the City 6. Interest rates 4 1./2% 7. Date or loans April 16 and 19, 1956 8 • Date of final prinei,al Jl&y 1, 1971 payments 9 • Interest p&Jffient d!.tess )lay 1 (Beginning 11&7 . 1, ·1957) 10. Principal payment dates: .,. 1 { • May 1, 1964) 11. Pisoal lgenta Swiss Credit Bank, Z\\rioh 12 • Original amount if'lsued 1 S.Frs. 25,000,000 13 • Currency in which payable a Swise Francs 14• lmartisation ternun Kight annual instalments or Swiss Francs J,125,000 each, callable from llay 1, 1956 15 • Pledged revenues and usetaa None 16. IA• or «!ecree authorising Resolution by the Crown Prince Regent or the loans lpril 6, 1956 and Resolution by the City Board of Aldermen ot 11&1-ch 15, 1956• 1. Otticial title 1 City or TrondheiJn 5i Bond Loan ot 1956 2. »ame ot borrosera City or Trondheim 3• Guaranteed atatuaa Direct obligation or the City 4• Creditors Holders of bearer Band.a 5• Purpoeea l or power plant conatruction 6. Interest r ates ?. Date or loans Lo&n oontract d11ted J Mlu&ry 23, 19·56 and bonds to be d11ted February 1, 19S6 • 8. Date or final principal p919ent1 luguat 1, 19?6 9. Interest payWtent date•• February 1 and luguat 1 {Beainning luguat 1, 1956) 10. Principal p~ent dateaa llJIWlt 1 {Beginning luguat 1, 1961) 11. Fiscal !gent 1 lktiebolaget STen11ta Hmdelabanken, Stockhoba 12 • Original uount iseuech hediah lrcmll' 32,000,000 1J. CUl'9e!lOJ' 1n whiah pqabl.aa Swdilh lronor 14• bortisation tffUI Princip11l to be called according to aohedule attaahed to the Lou A&r•e•nt• Copr ot aaortiaation aahedule waa sent to IBRD with latter or lpril 11, 1956 f'rom the Ministry or COfflNl'CM and lbippinc 15 • Pledged r nenuea and &sNtH P&y11ent of electric poser in accordance with agrenent dated January 19 and 23, 1956 between liar1e• Vaesdr~•- og 11.aktrieitet••••n, Oslo, lktiebolaget STsrthllatorsen, Stockholm and ~1 16 • law or decree authorising Reeolut.ion by the CrOlnl Prinoe Becent or the loans J '!.nua?T 20, 1956 and Reaoluticm by t he City Board ot lldemen or Januar:, 5, 1956 • Secretary's Hemorandum No . 1-408 INTERNATIONAL BANK FOR HECOIJSTRUCTI G:li AND DtVELOPHENT TO: Messrs. Black, Arnason, Garner, Iliff and Cope FROM: The Secretary April 30, 1956 CLOSING OF LOAN TO NORWAY Subject to t he approval of the Executive Directors at their meet ing on Hay 3, 1956 of the proposed loan to the Kingdom of Norway (Tokke Project), t he following arrangements have been made for the execution of the loan papers: Time 3:00 Po m., Thursday, Y1ay 3, 1956 Place Bank Board Room·· Signing Officials - For Norway: Mr. Christian Brinch - For t he Bank: ¥1r. Black Seating Order From le~ to right: Messrs . Cope, Black, Brinch and Arnason I (NOTE: :t'".ir. King, Department of Operations - , Europe, Africa and Australasia, will arrange for the attendance of the signing officials; Hiss N0rsey and Mr. Delaume of the Office of the General Counsel will supervise the execution of the loan docmnents .) Representatives from Departments of t he Bank who will attend the signing are requested to be i n t he Board Room shortly before 3:00 p. m., and to t ake seats around the Board table when the signing officials are seated. cc: Department Heads Seco 10-205 .. • pril 27, 19$6 Dear Jacq ea In ae yo ar e in C Oil Y, I din a copy or th cutive 1r cto • which a j t c • ott • typevrit • I did 1t wit out lookin at yo a nd aa now oi to tJ7 nd p t he t ·o to th • I op• t e ing w t ft ell. I a, • • in clo ure A/?1- l Iv I Jr c$. :e. t oPI: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ~CLASS J, {NOT FOR PUBLIC USE) CONFIDENTIAL MAR 2 0 2018 FOR R-957 WBGAR ,Hf b EXECUTIVE (For consideration by the DIRECTORS' Executive Directors on MEETING May 3, 1956) FROM: The Secretary April 26, 1956 NOTICE OF SPECIAL MEETING OF Tllli EXECUTIVE DIRECTORS PROPOSED LOAN TO NORWAY There will be a Special Meeting of t he Executive Directors in the Board Room at 10:0o_ a. m., Thursday, May 3, 1956, to consider the proposed loan to the Kingdom of Norway. Attached is the President' s Report and Recommendations on the proposed loan together with: v/11,r Dr aft Loan Agreement 1 .. 0,/fl' 2. Statutory Loan Committee Report A report on the Tokke Hydroelectric Project /2(fJ{J. ~{~ [4.~· Current Economic Position and Prospects of Norway V "" /JTr, 5. Draft Resolution Attachments Distribution: Executive Directors and Alternates President Vice President Assistant to President Department Heads IFC - Nr. Beevor Sec. 10-196 I C 1 CLA~ M R 2 0 2018 WBG ARCHIVES Confidential Draft Subject to Change 4/24/56 Loan Number ---NO LOAN AGREEMENT (Tokke Project) between KINGDOM OF NORWAY and I NTERNATIONAL BANK FOR RECONSTRUCTION AND DE VELOPMENT Dated ------'1956 LOAN AGREEMENT AGREEMENT, dated ------, 1956, between KINGDOM OF NORWAY (hereinafter called the Borrower) and INTERNATIONAL BANK FOR REOONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank)• • - 2 - ARTICLE I Loan Regulations; Special Definitions Section 1.01. Tne parties to this Loan Agreement accept all the provisions of Loan Regulations No . 3 of the Bank dated February 15, 1955, subject, however, to the modifications t hereof set forth in Schedule 3 to this Agreement (said Loan Regulat icns No. 3 as so modified being hereinafter called the Loan Regulations), with the same force and effect as if they were fully set forth herein. Section 1.02. Wherever used in this Agreement, unless the context shall otherwise require , the term "NVE 11 shall mean Nor ges Vassdrags- wg Elektrisitetsvesen (Norwegian Watercourse and Electricity Board) . - 3 - ARTICIE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, an amount in various currencies equivalent to twenty-five million dollars ($25,000 ,ooo). Section 2.02. The Bank shall open a Loan Account on its books in the name of the Borrower and shall credit to such Account the amount of the Loan. The amount of the Loan may be withdrawn from the Loan Account as provided in, and subject to the rights of cancellation and suspension set forth in, the Loan Regulations. Section 2.03. The Borrower shall pay to the Bank a commitment charge at the rate of t hree-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not so withdrawn from t ime to time-. Section 2.04. The Borrower shall pay interest at the rate of four and three-fourths per cent (4 3/4%) per annum on the principal amount of the Loan so withdrawn and outstanding from time to time. Section 2.05. Except as the Borrower and the Bank shall otherwise agree, the charge payable for special cormnitments entered into by the Bank at the request of the Borrower pursuant to Secti on 4.Q2 of the Loan Regulations shall be at the rate of one half of one per cent (1/2 of 1%) per annum on the principal amount of any such special commitments out standing from time to time. -4- Section 2.r6. Interes t and other charges shall be payable semi annually on February land August 1 in each year. Section 2. 07. The Borrower shall repay the principal of the Loan in accordance with the amortization schedule set forth in Schedule 1 to this Agreemento - 5 - ARTICLE III Use of Proceeds of the Loan Section J.Ol. The Borrower shall cause the proceeds of the Loan or the equivalent thereof in Norwegian currency to be applied to financing the cost of imported goods and other expenditures required to carry out the Project described in Schedule 2 to this Agreement. The specific goods to be f inanced out of the proceeds of the Loan and the methods and procedures for procureme nt of such goods shall be determined by agreement between the Bank and the Borrower, subject to modification by further agreement between them. Section 3.02. The Borrower shall cause all goods financed out of the proceeds of the Loan to be used in the territories of the Borrower exclusively in the carrying out of the Project. - 6 - ARTICLE IV Bonds Section 4.01. The Borrower shall execute and deliver Bonds representing the principal amount of the Loan as provided in the Loan Regulations o Section 4.02. The Minister of Commerce and Shipping of the Borrower and such person or persons as he shall appoint in writing are designated as authorized representatives of the Borrower for the purposes of Section 6.12 of the Loan Regulations. - 7 ... ARTICLE V Particular Co venants Section 5.01. (a) The Borrower shall cause the Project to be carried out with due diligence and efficiency and in conformity with sound engineering and financial practices. (b) The Borrower shall cause to be furnished to the Bank, promptly upon their preparation, the plans and specifications for the Project and any material moiifications subsequently made therein, in such detail as the Bank shall from time to time request. (c) The Borrower shall maintain or cause to be maintained r ecords adequate to show the expenditure of the equivalent of the proceeds of the Loan, to identify the goods financed out of the proceeds of the Loan, to disclose the use thereof in the Project and t he current total expenditures, to record the progress of the Project (including the cost thereof) and to reflect in accordance with consistently maintained sound accounting practices the financial condition and operations of NVE and of any other agency or agencies of the Borrower r esponsible for the construction or operation of the Pr oject or any part thereof; shall enable the Bank's representatives to inspect the Project, the goods and any relevant records and documents; and shall furnish to the Bank all such information as the Bank shall r easonably request concerning the expenditure of the proceeds of the Loan or the equivalent of the proceeds of the Loan, the Project, the goods and the f inancial condition and operations of NVE and of any other agency or agencies responsible for the co nstruction or operation of the Project or any part thereof. • - 8 .. Section 5.02 a (a) The Borrow er and the Bank shall cooperate fully to assure that the purposes of the Loan will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reasonably request with regard to the general status of the Loan. On the part of the Borrower, such information shall include information with respect to financial and economic conditions in the territories of the Borrower and the international balance of payments position of the Borrow er. (b) The Borrower and the Bank shall from time to time exchange views t hrough their representatives with r egard to_ matters relating to the purposes of the Loan and the maintenance of the service thereof. The Borrower shall promptly inform the Bank of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Loan or the maintenance of the service thereof. (c) The Borrower shall afford all reasonable opportunity for accredited representatives of the Ban.k to visit any part of the territories of the Borrower for purposes related to the Loan. Section 5.03 . It is the mutual intention of the Borrower and the Bank that no other external debt shall enjoy any priority over the Loan by way of a lien on governmental assets or by way of priority in the allocation or realization of foreign exchange . To t hat end, the - 9 - Borrower undertakes that, except as the Bank shall otherwise agree, if any lien shall be created on any assets of the Borrower, or of any of its political subdivisions or of any agency of the Borrower or of any such political subdivision, as security for any external debt, such lien will j~so facto equally and ratably secure the payment of the principal of, and interest and other charges on, the Loan and the Bonds , and that in the creation of any such lien express provision will be made to that effect. If the Borrower, for constitutional reasons, shall be unable to make the foregoing undertaking effective with respect to any lien on assets of a political subdivision or agency of a political subdivision, the Borrower shall grant to the Bank an equivalent lien satisfactory to the Bank. The foregoing provisions of this Section shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security f or the payment of the purchase price of such property; (ii) any lien on commer cial goods to secure a debt maturing not more than one year after the date on which it is originally i ncurred and to be paid out of the proceeds of sale of such commercial goods; (iii) any lien arising in the ordinary course of banking transactions to secure a debt maturing not more than one year after the date on which it is originally incurred; or (iv) any lien upon real estate, property in Norway or revenues or receipts in currency of the Borrower, if such lien is given by a political subdivision or - 10" by an agency of a political sutdivision of the Borrower under arrange ments or circumstances which would not result in priority in the allocation or realization of foreign exchange. Section 5.04. The Borrower shall cause NVE to operate and maintain its plants, equipment and property,and from time to time make all necessary renewals and repairs thereof,in conformity with sound engineering, financial and public utility practices. Section 5o05. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid without deduction for, and free from, any taxes or fees imposed under the laws of the Borrower or laws in effect in its territories; provided, however, that the provisions of this Section shall not apply to taxation of, or fees upon, payments under any Bond to a hold~r thereof other than the Bcnk when such Bond is beneficially owned by an individual or corporate resident of the Borr~Ner. Section 5.06. The Loan Agreement and the Bonds shall be free from any taxes or fees that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execution, issue, delivery or registration thereof and the Borrower shall pay all such taxes and fees, if any, imposed under the laws of the country or countries in whose currency the Loan and the Bonds are payable or laws in effect in the territories of such country or countries. Section 5.07. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid free from all restrictions imposed under the laws of the Borrower or laws in eff ect in its territories. - 10a - Section 5.08. The Borrower shall satisfy the Bank that adequate arrangements have been made to insure the goods financed with the proceeds of the Loan against risks i ncident to their purchase and importation into the territories of the Borrow er. - 11 - ARTICLE VI Remedies of the Bank Section 6.01. (i) If any event spedfied i n paragraph (a) or paragraph (b) of Section 5.02 of the Loan Regulations shall occur and shall continue f or a period of thirty days, or (ii) if any event speci fied in paragraph ( c) of Section 5.02 of the Loan 11egula tions shall occur and shall co 1tinue for a period of sixty days after notice thereof shall have been given by the Balli< to t he Borrower, then at any subsequent time during the continuance thereof, the Bank, at its option, may declare the principal of the Loan and of all the Bonds then outstanding to be due and payable immediately, and upon any such declaration such principal shall become due and payable immediately, anything in this Agr eement or i n the Bonds to the contrary notwithstanding. - 12 ~ ARTICLE VII Effective Date; Termination Section 7.01. 'Ihe following event is specified as an additional condition to the effectiveness of this Agreement within the meaning of Section 9.01 (a) (ii) of the Loan Regulations : that the Borrower shall have obtained assurances satisfactory to the Bcinl< concerning the financing for the Project to be provided by, and the sale of power to,counties, municipalities, power companies and industrial users of power in Norway. Section 7.02. 'Ihe following are specified as additional matters, within the meaning of Section 9.02 (c) of the Loan Regulations, to be included in the opinion or opinions to be furnished to the Bank : (a) That proposals made by the Ministry of Industries and Handicraft to counties and municipalities concerning the f1nancing for the Project to be provided by, and the sale of power to, such counties and nrunici palities constitute valid offers to such counties and municipalities, which may be accepted in the manner outlined in such opinion. (b) That existing laws, decrees and regulations give to the Borrower or to the agency or agencies of the Borrower which are ta .. 1.3 - carry out the construction and operation of the ~roject sufficient powers to carry out such construction and operation including the power to obtain all land and water rights as and when needed. Section 7e03. A date 60 days after the date of this Agreement is hereby specified f or the purposes of Section 9.04 of the Loan Regulations. - 14 - AR TI CLE VIII Miscellaneous Section 8.01. The Closing Date shall be June 30, 1961g Section 8.02. The following addresses are specified for the purposes of Section 8.01 of the Loan Regulations: For the Borrower: Royal Norwegian Ministry of Commerce and Shipping Fr. Nansens pl. 4 Osl<.�, Norway For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.c. United States of America Section 8.03. 'Ihe Secretary General of the Royal Norwegian Ministry cf Commerce and Shipping of the Borrower is designated for the purposes of Section 8.03 of the Loan Regulations. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Loan Agreement to be signed in their respective names and delivered in the District of Columbia, United States of America, as of the day ,�nd year first above written. KINGDOM OF NORWAY By Authorized Representative INTERNA TIOWi.L BANK FOR RECOrlSTRUCTIOH AND DEVELOPMENT By President - 15 ... SCHEDULE 1 Amortization Schedule Principal Amount Outstanding Payment of Principal After Each Payment (expressed in (expressed in Date Payment Due dollars)* dollars)* February 1, 1961 $ 25,ouu,ooo August 1, 1961 $555,ooo 24,4!+5,ooo February 1, 1962 568,ooo 23,877,000 August 1, 1962 581,COO 23,296,000 February 1, 1963 595,ooo 22,701,000 August 1, 1963 609,000 22,092,000 February 1, 1964 624,000 21,468,f)OO August 1, 1964 639,000 20,829,000 February 1, 1965 654,ooo 20,11,,000 August 1, 1965 669,000 19,506,000 February 1, 1966 685,ooo 18,821,000 August 1, 1966 701,000 18,120,000 February 1, 1967 718,000 17,402,000 August 1, 1967 735,ooo 16,667,000 February 1, 1968 753,000 15,914,000 August 1, 1968 771,000 15,143,000 February 1, 1969 789,000 14,354,000 August 1, 1969 808,000 13,546,ooo February l, 1970 821,000 12,719,000 August 1, 1970 847,000 11,872,000 February 1, 1971 867,000 11,00,,000 August 1, 1971 887,000 10,118,000 February 1, 1972 908,000 9,210,000 August 1, 1972 930,000 8,280,000 Fe bruary 1, 1973 952,000 7,328,000 August 1, 1973 975,000 6,353,000 February 1, 1974 998,000 5,355,ooo August 1, 1974 1,021,000 4,334,ooo Fe bruary 1, 1975 1,046,000 J,288,000 August 1, 1975 1,010,000 2,218,000 February 1, 1976 1,096,000 1,122,000 August 1, 1976 1,122,000 *To the extent tha~ any part of the Loan is r epayable in a currency other than dollars (see Loan Regulations, Section 3.02), the figures in these columns represent dollar equivalents determined as for purposes of withdrawal. - 16 - Premiums on Prepayment and Redemption The following percentages are specifi.ed as the premiums payable on repayment in advance of maturity of any part of the principal amount of the Loan pursuant to Section 2.05 (b) of the Loan Regulations or on the redemption of any Bond prior to its maturity pursuant to Section 6.16 of the Loan Regulations : Time of Prepayment or Redemption Premium Not more than 5 years before maturity••••• 1/2 of 1% More than 5 years but not more than 10 years before maturity• ••••••••••••••••• 1% More than 10 years but not more than 15 years before maturity •••••••••••••••••• 1 3/4% More than 15 years before maturity•••••••• 2 1/2% - 17 - SCHEDULE 2 Description of the Project The Project, the first stage of development of the Tokke Vinje River system, will be located about 170 kilometers west of Oslo in the county of Telemark, extending from the southwesterly part of the Hardanger plateau down to lake Bandak in the central p.art of sout hern Norway. It will consist of a number of storage reservoirs, diversion dams and tunnels, an underground power plant and transmission system, designed to produce approximately two billion kWh of electric energy on an annual average. The first unit is scheduled to go into corrunercial operation in 1961, the next t wo in 1962 and the last by the middle of 1963. A. Storage Reservoirs Dams and tunnels will be constructed at levels varying from approxi mately 1100 to 680 meters above sea level., and an intake dam at about 465 meters above sea level. Reservoirs for seasonal regulation will be cr eated with total storage capacity of at least 1220 million cubic meters to supply water for the normally low water winter season. This storage capacity will be provided mainly in the following lakes: Totak, Kjelavatn, Bordalsvatn, Langeidvatn, Songavatn, Staavatn, Langesaevatn. B. Hydro-electric Installations Dams will be erected in the Tokke and Vinje rivers with an intercon necting tunnel and headworks. A tunnel about 15 kilometers long will conduct water to a surge tani.:.. and an underground power house in which will ' - 18 ... be installed four 100 M.v high-head Franci s type hydroelectric generators. The net operating head will be approxi mately 370 meters at full load. A step- up subst ation with seven 80 MVA transformers will be located underground adjacent to the powerhouse. A switching station will be erected above ground and will be connected to a 300 kV single-circuit transmission line. C. Transmission System The transmission system will consist of about 280 kilometers of 300 and 130 kV transmission lines. New substations will be installed at Skien and Saaner and t he existing substation and junction at Flesaker will be enlarged. All power generated will be fed i nto the southeastern Norwegian grid, which includes Oslo, and will be sold wholesale to industry and distribut ing authoritie s. - 19 - SCHEDULE 3 Modifications of Loan Regulations No. 3 ,,, For the purposes of this Agreement the provisions of Loan Regulations No~ 3 of the Bank, dated February 15, 1955, shall be deemed to be modified as follows: (a) The following sentence is added to Section J.05: 11 If a withdrawal is applied for on account of expenditures in the currency of the Borrower, the value of the currency of the Borrower in terms of the currency or currencies to be withdravm shall be as reasonably determined by the Bank. 11 (b) Section 4.01 shall read as follows: ''Withdrawal from the Loan Account. The Borrower shaJ.l be entitled, subject to the provisions of these Regulations, to withdraw from the Loan Account (i) such amounts as shall have been expended for the reasonable cost of imported goods to be financed under the Loan Agreement; (ii), if the Bank shall so agree, such amounts as shall be required to meet the reasonable cost of such goods; and (iii) if the Bank shall so agree, amounts which, together with all amounts already withdrawn under (i) and (ii), shall not exceed at the time of withdrawal fifty per cent of the total expenditures on the Project, in dollars, or such other cur rencies (other than the currency of the Borrower), as may • 20 - be agreed between the Bank and the Borrower. Except as shall be otherwise agreed between the Bank and the Borrower, no withdrawals shall be made on account of expenditures prior to the Effective Date. 11 (c) Section 4.03 shall read as follows: 11 ApPlications for Withdrawal or for Special Commitment. When the Borrower shall desire to withdraw any amount from the 11:)an Account or to request the Bank to enter into a special commitment pursuant to Section 4.02, the Borrower shall deliver to the Bank a written application in such form, and containing such statements and agreements, as the Bank shall reasonably request. Since the rate at which 11:)an proceeds are withdrawn affects the cost to the Bank of hold ing funds at the Borrower I s disposal, applications for with drawa::i_, w'i.th the necessary documentation as hereinafter in this Article provided, shall, except as the Bank and the Borrower shall otherwise agree, be made promptly in relation to delivery of goods (or in the case of advance and progress payments to suppliers, in relation to such payments), or, as t he case may be, s hall be made promptly in relation to expenditures on the Project. n 2 ( STATUTORY LOAN COMMITTEE REPORT To: The President, International Bank for Reconstructi on and Development Report of Loan Committee under Section 4(iii) of the Articles of Agreement on the Proposed Loan (Tokke Project) to the Kingdom of Norway The undersigned Committee constituted under Section 7 of Article V of the Articles of Agreement of International Bank for Reconstruction and Development (the Bank) hereby submits its report pursuant to Section 4(iii) of Article III of said Articles in respect of the proposal that the Bank grant to the Kingdom of Norway a loan in an amount in various currencies equivalent to U.S.$25,ooo,ooo. The purpose of said loan is to assist in the f inancing of a project for hydroelectric development of the Tokke Vinje River System. 1 ~ The Committee has carefully studied the merits of the proposal to grant such a loan, and of the purposes to which the proceeds of the loan are to be appliedo 2. The Committee is of the opinion that the project toward the financing of which the proceeds of such loan are to be applied comes within the purposes of the Bank as set forth in Article I of said Articles of Agreement, and that said project is designed to promote the development of the productive facilities and resources of the Kingdom of Norway and is in the i nterests of the Kingdom of Norway and of the members of the Bank as a whole. J. Accordingly, the Committee finds that said project merits financial assistance from the Bank, and hereby recommends said project for such assistance. COMMITTEE Dated at Washington, D. C. ( 5 C DRAFT INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RESOLU'IION NO. Approval of Loan to the Kingdom of Norway (Tokke Project) in the amount of $25,000,000. RESOLVED: 1. THAT, in accordance with the recommendations of the President, dated April 26, 19.56, the Bank shall grant a loan to the Kingdom of Norway in an amount in various currencies equivalent to $25,ooo,ooo, to mature on and prior to August 1, 1976, to bear interest (including conunission) at the rate of 4 3/4% per annum, and to be upon other terms and conditions substantially in accordance with the terms and conditions set forth in t he form of Loan Agreement (Tokke Project) between the Kingdom of Norway and the Bank which has been presented to this meeting. 2.. THAT the rate of commission to be charged in connection with 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 pay ment of said interest and service charge; and that the amount of said commission so paid to the Bank shall be set aside in t he special reserve as provided i n Section 6 of Article IV of the Articles of Agreement of the Bank. ------~-- FORM No. 57 ( 5- 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DA TE: April 26, 1956 FROM : B. B. King ~ SUBJECT: Norway - Procurement Dr. Vogt/l\ nformed me that the goods to which the preferential margin was 1'4\1j1Yto be applied were: N. kr. million Turbines 25 Generators 22 47 This figure includes frei ght and duty. The net cost of the two would probably be less than N. kr. 42 million (S6 million). Import duty on machinery is generally lo%. cc: Mr. Marshall FORM No. 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (8- 55) OUTGOING WIBB CLASS OF SERVICE: letter Telegram DATE: APRIL 26, 1956 TO: JACQUES TREMPONT 38 AVENUE DE LA J ONCTION BRUSSELS COUNTRY ( BELGIUM TEXT: Cable No. BOARD MEETING MORNING MAY THR~ STOP WOULD LIKE TO GIVE YOU OPPORTUNITY MAKING ECONOMIC PRESENTATION WHICH WOULD REQUIRE YOUR RETURN TO BANK LATEST LUNCHTIME WEDNESDAY STOP BUT YOUR RETURN END WEEK AS PLANNED IS ALSO AGREEABLE IF YOU SO PREfER PIEASE CABLE YOUR INTENDED ARRIVAL TIME GREETINGS UMBRICHT Signed: l AUTHORIZED BY: ~ NAME: V . Umbricht 'tJ For Use bv Archives Div ision DEPT: Assi stant Director of Operations Checked for Dispatch Europe, Africa and Australasia SIGNATURE: BBK:ing :VUmbricht:ms ORIGINAL (File Copy) (IMPORTANT: See over for guide in preparing Outgoing Wire} (.,' GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minumum charge for 22 words including address and text. Full Rate Full rate messages are nom1ally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. IBF Govt. This is a preferential rate extended to the Bank by some of its member countries. Messages are senc at full rate speed and at about half the cost. This rate normally should be used whenever available. It is at present available for the following countries: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras • Syria Burma Ecuador Jordan Uruguay Chile El Salvador • Lebanon Venezuela • China • Ethiopia Nicaragua Yugoslavia Colombia * France Pakistan Costa Rica Greece Panama • In these countries the letter telegram rate is lower than IBF government rate and should be used for messages when immediate transmission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having a code with them. Day Letter Day letters are delivered during the day of transmission and should be used only fot messages in the United States and to Mexico and Canada. There is a minimum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only last name of addressee and cable address whenever possible. The Bank cable address "INTBAFRAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination must always be added. (No charge is made for the name of a country). 3. Text Messages to Bank Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 2008. Type text in capital letters and double space between lines. The text should be edited to elirrinate unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma,• "Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. A1rma1l, Newyork, enduse. 4. Signature Type in last name of sender. Use INTBAFRAD as part of the signature only when addressee does not know the address of the sender. 5. Authorization Type in name and department of staff member authorizing message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 210 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for t~e despatch of of cables outsrde of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. (, t .. ~- ~~~ I • 7--< fl:4;. 1-/ a -· , I I I • ,' I I I r . I ' I At r. n .ncn •• • 1011, I t of th tollovi draft dooumentat (i) ..nt {draft 4/24/'6 wit on •• 10, 14 20.) (.11) Letter r ..Ji;. I (1 ) Lett.er 1'e al'din withdrawal• t1 d te (d tt 4/24/S6). I I L ,. (T) Preea rele se {d 4/2S/'6). 'I Am:-e•iit•1ittt 1, in he to tift D1t' ct.or•• but .. enjamin B. n I • I l C l I I ril 25, 195 Christians ncloae •• 1.. ot ch ot the follow! do ntaa (1) Loa ent (draft 4/24/56 with on pag s 10, 14 and 20.) (11) tt r re ing e 1 ri nd onstruction of the proj ct (draft 4/18/56). ... (iii) Lett r re rdi rat at.rueture (draft 1+/1 /56). (iy) tter re 1 vithd.ravala efor• t • ett ctive te (draft 4/24/56). (v) Pres rel se (draft 4/25/56). k it As ou will se by th ncloe copy ot 1 tter, I two cop1ea of all the bove doc ente to Carste Nielsen. lb ve however, s nth copies of revised withdra al form Ala, two of which u will al o time clo • 1.ncer ly ur , Benjoin • K ,r. Obri tia Br inch c/o r. Hallvard Hilles Bank of rw epre entative 2 Wall tr t v Yorl, York BBKing/'fhn~ a ril 5, 195 My dear Ueleen, At ~ . rinch'a a gest1o, I ming you two copiee of eac of tbe follow! raft documen'tas (i) Loan A.gr nt (drat 4/24/56 with amall cha ea on page 10, 14 an:1 20 . ) (11) Letter regardi ngineering co truction of the proj ct ( raft 4/18/5 ). (111) Lett r re ard1 rate atr ctur {draft 4/18/56). {iv) Letter re arding withdr ~al betor th effectiv dat {dr ft 4/24/56) . (v) Presa rel e (draft 4/25/56). We oxpect that the Lo n Agr nt i v in the f o in whi ch it will b pr sented to the ecutiv Director, but fur ther cha e are, of cour , po ible. Sine r l.y yours, B nje.min B. ing • r . C raten Chief, For i Lon Division Th Royal rw gian Vd.ni try- of Co ere O lo, orwq cos • Brin BBKi /vh~ .. April 24, 1956 Dear Dabriel, Many thanks for your letter of April 16/ which was j ust what the doctor ordered. I had no idea I wasr in such company rm en I wrote to you on the 9th. Sincerely yours, B. B. King Mr. Gabriel Kielland Norges Bank Oslo, Norway 'BKin : p • Mr. nj 1n. ta prU 2h, 1956 J. Burke 1Cnapp of 2S M1ll1on I ~ · articular co exc t to no that Part III ( bare. I Nalit:e the "vindow b i would not ( a) 1lill blq' wholesale - c. t . the final sem.enc~• oj t 1n c ule 21 (b) ( ara- .. ' FoR'1 No. 57 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ts. 48 > OFFICE MEMORANDUM DATE: April 24, 1956 TO: Files /J ti,./(_ _.. FROM: B. B. King 1"}17 r SUBJECT: Norway - Public Issue 1 . A series of meetings was held on Monday and Tuesday, April 16 and 17, to discuss the situation arising from the deterioration of the New York and Toronto markets. 2. Meeting 10 a.m., April 16 Present: Messrs. Brinch, Cope and King. Mr. Brinch said that: (a) Instead of an issue at 99 and 4-1/2% Harriman Ripley felt they could not do better than 98 and 4-3/4%. This meant an increase in cost from about 5% t~ 5.39% . (b) Harriman Ripley did not feel that they could float an issue if the Canadian issue went through. (c ) This created a new situation. He considered the issue price too high compared with the Bank ' s inter est rate and also high compared with loans being r aised by the City of Oslo and the United Paper Company in Switzerland. This would re act unfavorably on Norway ' s cr edit. (d) The circumstances were the same as they were two years ago when the market pr i ce had been too high and the Bank had agreed to make the full $25 million loan. 3. Mr. Cope said that we must consider the question in the light of the imminent rise in the Bank ' s interest rates. He would like Mr. Brinch to see Mr. Black as soon as possible. Meeting 12 a.m. , April 16 Present: Messrs. Black, Brinch, Cope and King . Mr. Brinch r epea ted his previous points, adding that if Norway were "pressed" to go to the market with such a difference in costs, it would be "discrimination" against Norway in favor of countries which could not possibly go to the market. · Mr. Black said that it was not a question of pressure, but of the Articles of Agreement. The Bank could not compete with the private mar ket for that reason and also because it depended on its good relations with the market. Mr. Brinch said he understood that and that he had always been prepared to cooperate to the extent of accepting a differential of 0.25% in cost. But 0. 64% was too high. • - 2 - Mr. Black said that it was the Bank's rates that were out of line. The question boiled down to what was a reasonable differential; he would like to think about it further. Meeting 4 p.m., .April.16 Present: Messrs. Black, Garner, Cope and King . Mr. Black said that after talking to Mr. Woodall of Harriman Ripley & Co. he thought two suggestions might be made to Harriman Ripley and to Brinch, both based on an issue at 100 and 4-3/4%: (a) An issue of $12 .5 million with a "standby" from the Bank for half the amount. (b) An issue without standby but possibly reduced, for example, to $10 million. 6. Mr. Cope said that if the Bank's standby had to be invoked, it would be bad for Norway's credit. He was doubtful whether Mr. Brinch would accept. 7. Mr. Black called Mr. Woodall to say that he would put these suggestions to Mr. Brinch, but that he could not say how far Brinch would accept the first (standby) one. 8. Meeting 4:45 p.m., April 16 Present: Messrs. Black, Brinch, Cope and King. Mr. Black put his suggestions to Mr. Brinch, saying that he was trying to find a middle way. Mr. Brinch said he would prefer not to use the standby suggestion. 9. Mr. Black called Mr. Woodall to ask him to see how far he could get with an issue at 100 and 4-3/4% without a standby. 10. Meeting noon April 17 Present: Messrs. Black, Garner and Cope. Mr. Black said that Mr. Woodall had telephoned to say that he could not go ahead at any price above 98 and that under current market conditions it was not certain whether even this would be possible. In these circumstances he did feel we could force the Norwegians into the market. He told Mr. Cope to tell Mr. Brinch that he (Yir. Black) still felt that Norway would be well advised to accept 98 but that if the Norwegian Government declined, to say that the Bank would lend the full $25 million. 11. Meeting 4 p.m., April 17 Present: Messrs. Brinch, Cope and King. Mr. Brinch said he had heard from Mr. Woodall that it would be 11 unwise 11 to go ahead at 100 and 4-3/4%. Mr. Cope said that Mr. Black had received similar information. - 3 - 12. Mr. Cope then said that the Bank placed a good deal of importance on the market issue and would still like the Norwegian Government to go ahead on the basis of 98 and 4-3/4%. However, if the Norwegian Govern ment did not feel it could go ahead, the Bank would not attempt to force them into the market and was prepared to make a loan of the full $25 million. He said that this decision was not because of the absolute cost of the proposed public issue or even of its cost compared with that of a Bank loan, but because in present market conditions there were real risks of failure. 13. Mr. Brinch said that his government did not feel it could go ahead and would gratefully accept the alternative presented by the Bank. 14. Mr. Cope then made the following points in connection with the loan: (a) A rate of disbursement of 50%of expenditure was the limit. This would mean disbursement in about 5 years. (b) A grace period up to July/August 1961 was the longest accept able to the Bank. (c) Interest rates were still sub judice. BBKing:iw / cc. Messrs: Cope / Delaume Marshall Verheyen Alt-- L,v r;r y DRAFT 4/24/56 ffiat~.7 International Bank for Reconstruction and Development 1818 H Street, N. W. 1-Jashl.ngton 25, D. C. Gentlemen: Referring to Section 3.01 of the Loan AgreerrBnt (Tokke Project) of even date herewith between us, we request your agreement that upon compliance with the provisions of the Loan Agreerrent we shall be en titled to withdraw from tre wan Account an amount not exceeding 50% of expenditures made after January 1, 1956, and before the Effective Date, provided, however, that the amount withdrawn in respect of such expenditures shall not exceed the equivalent of $350,000. Please indicate your agreement by signing the form of confirmation on the enclosed copy of this letter and returning the copy to us. Very truly yours, KINGDOM OF NORWAY By Confirmed: I NTE.~NATIONAL BANK FOR RECONSTRUCTION MID DEVELOPMENT By • FO RM No. 57 ( 5- 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 2), 1956 FROM: B. B. King SUBJECT: Norway - Procurement Dr. Vogt informed Mr. Delawne and myself that the maximwn preference for imported goods was the lesser of the following: (a) 25%. (b) Import duty, plus lo% of the d~sti c content of the goods as manufactured in Norway. A few examples may explain how this works more clearly: (i) Turbines and generators. Import duty is lo%. Assuming there are no imported parts or materials (which is not quite the case), the maximum preference would be 10 plus 10. 2o%. (ii) Penstocks. Imported duty is lo%. Imported materials are about 50% of the total cost; domestic content is therefore also one-half. Maximwn preference is 10% plus (half of 10%) - 15%. (iii) If the\ e were wholly domestic goods, for whi ch duty were 2o%, the 25% rule would apply, since it is lees than 20 plus 10 ZI 30. cc: Messrs. Cope Delaume Marsh.~11 I _/ i. ,~ -A ~ -;i. s. ,?11, DET KONG ELI GE · DEPARTEMENT FOR I NDUSTRI OG HANDVERK vu, SVAII .. OPP'OITT J. NR. CERTIFIC~TE The undersit.ned :·,.inist€·r of the Royal Norwegian ~,'iinistry of Industries and Handicraft, thereunto duly empowered, hereby certifies, a. Attached h€reto, marked Annex A, is a true and correct copy o! the proposal made by this 1-linistry to the Counties o! Vest-Agder, Aust-Agder, Telemark, Vestfold, Buskerud, Oslo og Akershus, Llstfold, Oppland and Heel.mark and to the Municipality of Oslo, dated February 20, 1956, concerning the financing for the Tok.ke project to be provided by, and the sales of power from the project to, such counties and municipality...... b. The Ministry of Industries c.:.nd 1- :c.nc.icraft authorized such counties to extend the offer constituted by the :proposal to municipalities, power companies and industrial users of power located in these counties, if they should desire to do so. c. The above mentioned proposal has been duly and validly accepted pursuant to action by the Fyl~esting (of the respective counties) or by the Council (of the . respective Irlunicips.lities) and notification to this office by duly authorized officers of the following counties and munici palities: NANE Ai Aremark kr. 1ao.ooo 150 kW I-,oclenes 120.000 100 Onsoy 1.200.000 1000 Eidsber g 1.200.000 1000 Tune 2.400.000 2000 :S orge 840.000 700 Glemmen 2.400.000 2000 Skjeber g 1.200.000 1000 Varteig 120.000 100 Rygge 1.020.000 850 Hobol 480.000 400 Trogstad 840.000 700 Spydebcrg 900.000 750 Rolvsoy 600.000 500 Mysen 420.000 i50 Va ler 240.000 200 Kr a}:eroy 960.000 800 Degernes 240.000 200 • skim 3.600.000 3000 Sc1. r psborg 12.000.000 10000 5000 Fredrikstad 6.000 • 000 Moss 6.000.000 5000 H&lden 6.000.000 5000 Vestfold Kraf' tsels kap, county of Vestfold 6.000.000 5000 Tonsberg (milllicipality in county of Vestfold) 4.800.000 4000 Mun icipalities in county of Telemark; Skien 1.800.000 1500 .Notodden 2.400.000 2000 Tinn 1.200.000 1000 Drangedal 180.000 t50 Sannidal 120.000 100 Ska. toy 120.000 100 Rauland 108.000 90 Kragero 120.000 100 Skiensfjordens komm. kraft selskap 6.000.000 5000 LangesWldsf' jordens komm. kraftselskap 2.520.000 2100 DET KONGELIGE DE ..A ..TEMENT FOR INDUSTRI 0G HANDVl: ..K - 3 - Kragerodistriktets kraft- kr. 600.000 ~JO kW l ag Midt-Telemark lr~aftlag 684.ooo 5·70 Vest-Telemark kraftlag 900.000 750 613.S~-lt.gQ.~t (cowity) 12.000oOOO 10000 Municipalities in county of ~Yi~1'eDJ.sll Royken 480.000 4-oo Nedre Eiker 1.980.000 1650 Hurum 360.000 300 Honefoss og Norderhov 1'".raft verk 1.200.000 1000 Drammen 1.200.000 1000 Tyristrand 240 . 000 200 d. The proposal has ceen .c:W.y a,i validly accepted by the followi!'lg power companies and industri· 1 users of power, iiAME , COUNT Y I N WHICH AMOUNTS OF JUiOUNTS OF LOCAm:D BONDS SUB POWER TO BE SCRIBED PURCP.iASED N. Feterson & Son Ostfold kr. 1.200.000 1000 kW A/S Eaf slund • 18.000.000 15000 And.H. l(i::cr & Co. Ltd. • 1.800.000 1, 00 A/8 Fr :.dri~stad Hek. Vc. r ,:sted • 120.000 100 A/S Yven fapirfabrik • 1.44-0.000 1200 Titan A/S • 360.000 300 De 11:ordis ~:e Fabriker De-Po-Fa • 4.800.000 4000 Horsk Spr cenestofindu Buskerud og 720.000 600 stri A/S Alrn rshus A/S Christiania Fort Buskerud 1.800.000 1500 land Ce~entfabrik A./S Vittingfos • 600.000 500 Tinfos J ernver k ~/S Telereark 30.000.000 25000 Kamme r fos Bruk • 120.000 100 Skien Sapef'abri kk A/S • 12.000 10 .lulde l ss lakt eriet, Skien • 24.ooo 20 Nordby Trikotasje • 12.000 10 fabrikk ~ KONQl:LIQIE DIEP'AIIITIEMl:NT ,-0111 INDUSTIIII 0G HANDVIEIIIK - 4 e. In addition, this office has been inf or .::nally advised that, subject to f ornal action to be taken at a l at f-: r ci ate, it is the intention of the following counties and municipalities to accept such proposal: NAMS fu •iOTJ11~~s OF !_: O] DS A:·lOu lf.i S OF POWER to BE SUBSCRIBhD TO BE PURCfull>ED Torsnes (county of kr. 120.000 100 kW tistfold) · Hvaler (county of 60.000 50 Ostfold) Odo 14.400.000 12000 A.kershus (county) 24.000.000 20000 Telemark (county) 12 . 000 . 000 10000 Lier (county of Eusl~cruci ) 1.200.000 1000 Nore C -- • -- ) 120.000 100 OVre Eiker ( - - • -- ) 1.200.000 1000 0 s 1 o, April 23, 1956. ( I ~~ Gustav pjaastad Hinister of Industries and Handicraft • Translat ion from Norwegian A 392/56 IDV. DM/ BE To the County Commissioners of: Vest-Agder, Au•t-Agder, Telemark, Vestfold, Buskerud, Akershus, Oslo, ¢stfold, Oppland, and Hedmark. Development of the Tokke-Vinje River Systemo With reference to this Ministry's letter of 20th ulto and subsequent conferences, the last one on the 8th, a revised draft of the general principles for the parti t pation of the counties in the financial arrangements for o/• the Tokke project is herewith transmitted. The changes which have been made, compared with the draft principles previously submitted, are in the main as followsz Under section l the ctates of payment have been Extended half a year for all 5 instalments. The period of redemption of the loan has been extendea from January 1st 1976 to January 1st 1996 with semi-annual redemption payments. Under section 2 the right and obligation to purchase electric power has been extended to June 30th 1996. After that time the owners of certificates shall have the right to become ordinary purchasers of power from Tokke on the condi- tions to be stipulated in further detail o Preferential rights have been granted in respect of 50 ,000 kW fr?m the main Tokke plant, in addition to the 150,000 kW for which the counties have been allowed to subscribe. A substantial change has been made under section 3 in connection with the calculation ot the price to be charged for the electric power. The current price for state-suppl1ea power in force at any time shall be charged until June ~0 th -2- 1976. From July 1st 1976 the price shall be equal to act ual costs with the addition of 10%. Under section 10 a provision has been included concerning the appointment of a committee to represent the counties in relation to the Government authorities in all matters arising out of the contract. In the appendix to the general principles (concern ing the calculation of actual cost) the factor in sub-section c of section 3 has been somewhat changed. Besides the three amendments just mentioned, it will be found that certain changes have been made in the formulation. In connection with the revision of the general principles it has been endeavoured to comply as far as possible with the wishes that have been expressed, inter alia, by extending the terms of payment, by levelling out the price of the ele~tric power, and by giving the counties an appro priate opportunity to put forward their wishes and advice, and to protect their interests, and also by opening the way for the continued purchase of electric power after June 30th 1996. In view of the negotiations for a loan abroad, the Ministry of Commerce has requested that it should be endeavoured to obtain the consent of the Storting not later than immediately after Easter. If this is to be done, the formal proposal must be presented not later than the middle of March. With reference to the above it is requested that the matter be dealt with by the county authorities as soon as possible. In order to have a general view of the position for the purpose of preparing the statement to be presented -3- to the Storting, i~ is requested that the attitude of the County Executive ColDlllittee should be reported as soon as possible, and that the County Council's decision, if any, should thereafter be reported not later than March 15th next. To facilitate the handling of the matter, some extra copies of the appendix are enclosed herewith o Oslo, February 20th 19560 B¥ authority Dagfinn Mellum ~------ J.S.Oiverholt-Hanssen Correct/ translation certified O~o,)larc~ 14tb 1956 · I llt1 /l~~~0t1 ," ~ J. W tsberg / /. · · Authoris d translator. .· ...... Translation from Norwegian Appepdix ~~ the General Principles. The Calculation of the Actual Cost of Electric Power from Tokke. The fixed capital invested in the Tokke power plant shall be considered to include all costs involve d in the development of the auxiliary power plant of Haukeli, and of the waterfalls from Vinjevatn and Alnot to Bandakvatn together with regulation constructions, power plant at Dalen, and power transmission installations, - all according to plans to be approved by the Storting for the first stage in the development or the Tokke and VinJe river systems. The following iteas shall be included: a) the actual eost, together with interest and compound interest, up to the time when the plant is put into operation, as tar as the watercourses or watercourse rights are concerned which the state has acquired or will acquire in the river system for this development proJect. b) the expenditures incurred by the state, also together with interest, for raising state loans, for technical and legal assistance, surveying, planning, accomplished construction work, etco e) the capital required for auxiliary power plant, regula tion installations, the power plant at Dalen, and the transmission installations, including local and central ' administration as well as interest on Ctll)ital expendi tures up to the date when the plant is put into operationc d) any possible aefic1t on .operations during the first period of starting up, until the next 30th June after the power plant has been coapleted. - 2- Special annual accounts shall be kept for t he Tokke power plant, based on the period from July 1st t o June 30th. The annual operating costs in connection with the regulation, power, and power transmission installations shall be calculated separately for each budget year in the ~eriod up to June 30th 1976 and shall include the following items: a) interest on the debenture loan (for which certificates are to be issued) and interest and redemption payments on the foreign loans that may be raised by the Govern ment for this development project of Tokke, according to the conditions stipulated for such loans. b) interest on the previous capital investaent of the state, cf. section 1, and on future appropriations in annual budgets to provide the fixed capital investments. c) The annual expenditures for local and central admini stration, operation, pensions, materials, insurance, refunds, maintenance and renewals, as well as charges and taxes. d) Any other established expenditures, e.g. unforeseen compensation payaents etco 3• For the period from July 1st 1976 until June 30th 1996 the calculated annual actual cost shall include the following items: a) the expenditures mentioned under sections 2 c) and d) above. b) interest and redemption payments on the debenture loan {tor which certificates are to be issued). c) interest and redemption payments - or, alternatively, provisions for the reserve for renewals - on the -3- and appropriations previous capital investment;or the state, er. section 2 b), calculated on the basis of complete redemption on the annuity principle of the capital inveat.. nt during the period. The annual expenditures during this period shall be allocated according to the actual net kWh production during the year. In connection with such allocation the production in the different seasons shall be distinguished according to the following principles: l kWh in the period from October 16th to April 15th• l unit l " n It n " April· 16th to May 15th• o.8 units l " " " " " May 16th to October 15th• Og4 unite This graduation shall be without preJudice to the sales price charged for the eleotric power not reserved for the owners of certificates according to this agreement. In this connection the term "net production• ahall be under5tood as the total production after deduction or the power plant's own consumption, contractual obligations to supply power free of charge (including a proportionate share · of supplies at reduced prices) as well as losses in trans mission. Correot translation certified /;arch 14th 1956 l t/ ;( l 1 ~.J_ 1< <; ~" / ,,, ,_ .. - ~. - -- Jo Wulf erg, t'' /. < Authorised translatoro / ~"'t\ o ~\.l " -4 Translation troa •orwegian {o AY'Y\ell A General Prineiples tor the participation or the countiee in the r1nancial arrangements for the Tokke projeoto In connection with the development of the principal Tokke project {Dalen) the Norwegian Government will raise a loan or 180 mill okr., divided into 150,000 certificates of • 1200 kr. each, issued to the name of the holder • Payment is to be made in five annual instalments of 240 kro each from January 1st 1957 to January 1st l~l. The amounts paid up shall bear intereet at the rate of 4~ poa., payable at the end of eaoh period • No redemption payaents are to be made on the loan until the end of 1975, whereafter it shall be paid off by the redemption of 3,750 certificates each half-year from July 1st 1976 to January 1st 1996, such redemption payments being allocated as far as possible among the owners in the eame proportion as they have participated in the loan. From euch time as the electric power can b~ supplied from the principal Tokke project until June 30th 1996 the owners of the certificates shall be entitled and obliged to purchase electric power, to be transmitted and supplied once reduced from a sub-etation to be agreed upon, at the rate of l kW and an annual output or 6ooo kWh per certificate, of which 3600 kWh to be supplied from October 16th to April 15th, 450 kWh from April 16th to May 15th, and 1950 kWh from May 16th to October 15th. In years when the water supply 1e poor and in the event of accidents ocourring to the machinery, the owners (of certificates) ehall, together with other supplies of 50 ,000 kW, enjoy a preferential right to the supply of 150,000 kW before other suppliee are made from the main Tokke plant. -2- From the time when the first engine unit is able to supply electric power until the plant 1s capable of supplying the owners in full, available electric power is to be distributea pro rata to the owners and the recipients of the 50,000 kW mentioned above, and the same shall apply if the plant a t a later stage, owing to Act of God,should be unable to effect supplies 1n fullo The electric power which the owners of certificates are thus guaranteed rroa Tokke, shall not be pleaded as a reason tor withdrawing supplies of state-controlled electric power whieh the owners receive under the ordinary contracts for atate-eontrolled power. After July let 1996 the owners of oertitioatea shall have the right to take their places as ordinary b~era ot power from the main Tokke plant on the general teras ot purehase then 1n toree, and for the aaount or power to wbieh they had previously been entitled according to their oertitieatea. Thia provision 18 aubJect to the condition that the aain Tokke plant 18 then still being operated by the Norwegian Governaent essentially according to the same general principles as before. In conaideration or the power supply mentioned 1n section 2, the owners of certificates shall pay a price equivalent to the current price tor state-controlled power until June 30th 1976. From July let 1976 onwards ~he prioe shall be equal to actual costs, calculated in accordance with the provisions set out in the appendix hereto, with the addition of 10~. The counties holding certitioates sball be entitled to resell the electric power within their areas or suppl.7, but not outside suoh area except with the special consent ---~------;------=~aaiilliE -}- of the Government. The counties may rely on such consent being given in cases where the sale of power is intended to promote an efficient distribution and utilisation of the electrio power, considered from the point of view of public interestso The existing legal provisions concerning statu- tory concession for the sale of electric power at any tiae in force will have to be observed. If an owner takes out a greater effeot or more energy than the aaxiaum stipulated above ·("Excess consumption~ that shall have no bearing on this agreeaent, but shall be settled as a a,parate aatter according to the arrangeaenta (including the scale of pricea) prevailing at any tille within the gric1 area. In other reapect1 the provisions or the atanciarci contract for the supply or power rraa atate-ownec1 power plants in Eastern Morway shall appl.7 as tar as they are applicable and appropriate 1n relation to tbis agreeaent. 4. The electric power 1a to be supplied once reduced from a transmission voltage or about ,00 kV down to preferably about 130 kV, or possiblJ to other voltages that aay be agreed upon if suitable to both parties, or tranallitted at about 130 kV to the plaee where it 1a taken over. The recipient shall pay the additional coat involved 1n supplying the electric power at different voltages. Provided the counties concerned participate as owners or certificates, there will be one place of taking over the electric power 1n the eastern coastal area of the Aust-Agder county for power supplied to that county, one 1n the aurrounc11ngs of Skien tor power supplied to the county of Teleaark, and power to the countiee of Vestfold and Buskerud will be aup~1led over the existing ·------~- 130 kV network from Skien and Flesaker,and to the county of ¢stfola at SAner. If electric power 18 supplied to other counties, special agreements will be 111.de for the ex•bange of power until the 300 kV network has been extended, cf. the Govern ment's previous agreement with the AbJ,ra power company. In cases where it is considered to be expedient, it is presumed that an agreement will be made according to which owners of certificates may themselves builo certain sections of the power lines as well as the installations for the reduction of voltage from that levelo In oases where the owners themselves pay for such installations, it is understood that the capital investment required for this purpose will be taken into account in the allocation of electric power, and that they will receive a reasonable annual refund of their costs incurred for such purpose. Similarly, a reasonable refund shall be payable if the power plant shall make use of property or installations belonging to owners of certificates for their power translllission installationBo 5. Reference is made to the appendix with regard to the calculation of actual eo~ts. 6. The counties in Eastern Norway as well as the Agder counties and the Municipality of Oslo shall have preferential rights to purchase certificates. Such certifi- cates cannot be transferred to other holders except with the consent of the Government. It is a condition that no owner shall pay for the certificates purchased by drawing on funds provided directly or indirectly by loans obtained from the -5- state banks, the life insurance companies or the Joint stock banks o 7. If the loan is oversubscribed, the state reserves the right to make reduction in the manner which is considered to be most fair and expedient, taking into account, inter alia, how it is intended to utilise the electric power ~ 8. In addition to the above arrangements tor the supply of power to the. owners or certificates, 1t 1s under stood that the Government shall make a special agreement concerning the supply of electric power to the municipalities involved in the regulation proJecto It is understood that not less than 50~ of the power supplied according to the rights involved in the ownership of certificates, shall be used for productive purposes. 10. The counties owning certificates shall designate members to form a small committee which is to represent the eounties in all matters arising out of this agreement. The collllllittee shall be organised in order to ensure that any matters arising shall be dealt with rapidly anQ effectively. The committee may subait their wishes, advice and proposals, and may otherwise take care of the rights and interests enjoyed by the owners of certificates according to this agreement. The Government authorities on their part may consult with the committee {council) in all matters affecting the rights and interests of the owners {of certi ficates). I I \ Correct translatiQtl certified, Oslo, March-- 14th 1956. _( / /1 (--1 ,~ · «- I <; / J. Wul :sberg I ' Authorise translator. 0 ,:) FORM No . 57 ( 5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DA TE: A.pril 23, 1956 FROM, B. B. King ~ SUBJECT: Norway J Mr. Brinch informed me this morning that the Storting had approved unanimously the Storting Conunittee•s recommendations on the Tokke Proposition. ~. cc: Messrs . Cope/Umbricht Delaume Marshall Verheyen FORM No. 61 ( 3. 54) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CONFIDENTIAL STAFF LOAN COMMITTEE ~ ~-~ DtCL SFE MAR 2 0 20 MEMORANDUM 'I' O THE STAFF LOAN COMMITTEE Nor:·1ay The Technical Report on the Tokke Hydroelectric Project, Norway (T. O.llOa), referred to in para. 10 of Memorandum SLC/0/848, •IN or;,ray - Proposed Loan of :;Ji 25 i1il l ion" distributed on April 20, is attached for information. Herbert G. A. Woolley S3cretary Staff Loan Committee. April 23, 1956 DECLASSIF D COr1FIDENTIAL MAR 2 0 2018 SLC/0/848 WBG ARCHIVES April 20, 1956 --STAFF LOAN COI~.fIT'rEE Memorandum from Department of Operations Europe, Africa and Australasia NORWAY - PROPOSED LOAN OF $25 MILLION I 1. On March 5, 1956 the Committee considered SLC/0/833, "Norway - Proposed Loan and Public Issue"~ Since that time, there has been a marked deterioration in the New York and Toronto bond markets. The representatives of the Norwegian Goverrutent, who had been invited to negotiate a loan as part of the joint operation, were informed by the New York underwriters that they were not prepared to make an issue, if there was to be a simultaneous Canadian issu~ and that the cost of~ New York issue would have to be considerably more than originally envisaged. 2. In their discussions with the Bank, the Norwegian representatives contended that, in prevailing conditions, the cost of the New York issue would be too high and the uncertainty too great. They therefore asked the Bank to make a loan of the full amount of ~25 million, which was originally intended as the total for the combined operation. After the Norwegian representatives had been wged to reconsider the possibility of going to the market and had again expressed their desire for a Bank loan for the full amount, the l:anagement agreed to submit a loan of $25 million to the Executive Directors. J. Apart from this, the operation follows in general the outline described in SLC/0/833 . The prii.1cipal modifications of or additions to that outline are as follows: (i) The period of disbµrsement ~ill now be about five years instead of three. This change has been made because, in general conformity with Bank policy, disbursement will not exceed hclf of total expendi ture on the project. As the loan is now so much l arger than originally intended, a longer period · of disbursement is necessary. (ii) Disbursement will be made primarily against local expenditure, but the Bank will finance those im ports for which it has the appropriate currency available. (iii) It is expected that the Starting will consider the Proposition relating to the Tokke project, which must be approved by the Norwegian Parliament before the loan can be signed, on or about April 23rd. - 2 - (iv) In the case of the Franco-Norwegian dispute, which has now been taken to the International Court of Justice at The Hague, the Norwegian Government is expected to file a Counter-Memorial on April 20. The President's Report will be amended accordingly, when confirmation is received • . (v) The President's Report (paragraph 10) refers to the preference granted to domestic suppliers in inter national bidding. The Working Party believes that, in view of the preyalence of such practices and the illJ.Portance to Norway of the industries involved, the Bank cannot object, so long as prices are reasonable. I concur with this view. 4. The following docUments which embody th~ agreements reaqhed with the Norwegian representatives are being distributed to the Committee: Draft President ts Report; _ Draft Loan Agreement and .letters of representation; Economic Report (EA-59); Technical Report {TO-llOa). 5. It is proposed to distribute docU?nents to the Executive Directors on April 27 for consideration at a meeting on or about May 7. I do not think it is neces~ary to have a discussi9p in Committee unless other members wish it. Comment~ on the documents could be given to Ivir .. Kingi extension 3066, not l ater than April 24. S. R, Cope Director FORM No. 61 "("'\. A/0#,tv~Y L -v/ .?f" - { ( 1 ,, ~ .:.f: , 3. 54) ss\f .v INTERNATIONAL BANK FOR RECONSTRUCT I ON AND DEVELOPMENT CON'F'IDENTIAL \)\1C'L~ 1~\i \A~i 1 ~ ,\\\'1~ STAFF LOAN COMMITTEE SI.C/M/620 ~ :Vdnutes of staff Loan Committee Heeting held Mondey, March 5, 1956 at 3: 00 p . m.., in Room 1005 1. Present: 1-'.tr . R. L. Garner Mr o A. Broches Mr . '.J. A. B. Iliff -lf- Iv'.ir. H. ~1. Larsen r1r., So R. Cope Yir . J. c. de Wilde Ur. L. B. Rist Mr. F,. w. Rembert }:r . R. H. De1m.ith Mr . P. J. Ramm Hr. B• I-I . Colquhoun Mr. H. Go Ao 'Woolley , Secretary In attendance: Mr. G. R. Delaume Yd.ss V. Morsey Nr. 1v. L. Jago Nr. E. Symonds Mr .. B .. B. King Nr. J • A. T rempont Mr. L. G. Marshall Mr. M. M. Verheyen -l!'- rvrr .. M. M. Mcmdels -i~ 1!- Part only. 2. Norway The Connnittee conside red Memorandum SI.C/0/833, ''Norway - Proposed Loan and Public Issue, 11 and AGREED (a) with the r ecommendati ons in paragraph 5; (b) that a brief statement on the proposed loan should be made to the E:{ecutive Direct or s at their next meeting; and (c) copies of the Economic Report, after minor changes had been made, should b e distributed to the Executive Di r ectors prior to t he filing of the registration statement f or th_e proposed public issueo J. The meeting adjourned at 4:50 Porn• I .. .&.TT.AC o. 1 PROPOS IaW TO Nl!4t Principal Dat! R!J?apd u. . t 1, 1961 t SSS,000 ebruary l, 1962 568,000 .l ugust 1, 1962 sa1,ooo Februar7 l, 1963 S95,ooo Au uat 1, 1963 6o9,000 Febr IT 1, 1964 624,000 .l i\ist 1, 1964 639, 000 . F bruary l, 196$ 694,000 Au t 1, 196S 669,000 Vebr r7 l, 1966 68S,ooo A t l, 1966 101,000 COPY April 20, 1956 International Bank for Reconstruction and Development 1818, H Street N. W. Washington 25,, D. C. United States of America Gentlemen; I hereby select Mr. Christian Brinch, Secretary General of the Roxal Norwegian Ministry of Commerce and Shipping, to serve on the committee to be appointed by International Bank for Reconstruction and Development under Article V of its Articles of Agreement, to report on the proposed loan (Tokke Project) to Kingdom of Norway . Very truly yours Arne Skaug Governor for Norway of International Bank for Reconstruction and Development. FORM No, 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ( 8- 55) OUTGOING W I B B CLASS OF SERVICE: DA TE: All1L ID, J,,s6 TO: COUNTRY ( EXT: Cable No. ca, U lllAft Ud AORDIIC. Ulll Wn.t, nRlIOHr ll'fmlD DOOUlllffl ACCORDl u: Signed: AUTHORIZED BY: NAME: For Use bv Archives Division DEPT: Qf'l'ICI Checked for Dispatch SIGNATURE: ORIGINAL (File Copy) (IMPORT ANT: See over for guide in preparing Outgoin9 Wire) GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full race messages with a minumum charge for 22 words including address and text. Full Race Full race messages are normally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. IBF Govt. This is a preferential race extended co the Bank by some of its member countries. Messages are sent at full race speed and at about half the cost. This race normally should be used whenever available. It is at present available for the following countries: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras • Syria Burma Ecuador Jordan Uruguay Chile El Salvador • Lebanon Venezuela • China • Ethiopia Nicaragua Yugoslavia Colombia • France Pakistan Costa Rica Greece Panama • In these countries the letter telegram race is lower than IBF government rate and should be used for messages when immediate crans!I)ission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This race should be used only for confidential messages co staff members having a code with chem. Day Letter Day letters are delivered during the day of transmission and should be used only fot . messages in the United States and co Mexico and Canada. There is a minimum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only lase name of addressee and cable address whenever possible. The Bank cable address "INTBAF.RAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination muse always be added. (No charge is made for the name of a country). 3. Text Messages co Bank ·Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Exe. 2008. Type text in capital letters and double space between lines. The text should be edited co elirrinace unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma," "Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. Airmail, Newyork, enduse. 4. Signature Type in last name of sender. Use INTBAFRAD as pare of the signature only when addressee does not know the address of the sender. / 5. Authorization ,/ Type in name and department of staff member authorizing· message and have authorizing staff member "V sign the original (pink copy). A list of authorized signatures is kept in the cable office. (, Forward messages in triplicate in a cable envelope co Room 210 for despatch. The cable service is Cll'),B'h from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for the despatc~ of cables outside of these hours. '- ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. I , l.{J r. I~ • FORM NO. 27 ( 1 1 - 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB DATE: APRIL 19, 1956 CLASS OF SERVICE DESIRED TO. UTGJELD ) NIGHT LETTER[!] CODE D ./f OSLO ( WR.WAY i;- . FULL RA1E D TELETYPE D TEXT: I DRAFT PRESIDENT' S REPORT SIF.S SITAT ON APRIL 20 COMMA 1956 COMMA THE NORWEGrAN GOVERNMENT FIIED A COUNTER- MEMCRIAL. STOP IT IS MY UNDERSTANilNG THAT THIS COUNTER- MEMORIAL RAISES OBJECTIONS TO THE JURISDICTION OF THE COURT STOP SITATSLUTT TELECRAFm HVIS NOE AA BEMERKE BRINCH For Use by Archives DivisiorJ AUTIIORIZED BY: n,,. ~ Checked for Dispatch NAME B. B. King ~ DEP T. Operations , Europe, Africa and Australasia FIL E COPY t lld r . S LI ~· .- ., ) t • ooke.r pr1l 19, 1956 ~. R. Cope opo Loan tot Kingd ot Ol"Wl!lif I attach f or our oontide 1al info ti , t or ... tati n to th AC, a of a pro- OnJll.7 . tta nt • ,., l •C A, t I , CONFIDENTIAL MAR 2 0 2018 April 19, 1956 WBGARCHIVE l. egotiat1ons are alaost completed for a Bank loan of 5 million to the Kingdo ot Norva,. 2. The loan would be diaburaed in about 5 years in U.s. dollars and po - sibl7 European aurrenci••· It would be for 20 years with a grac period ot bout 5 years. The interest rate on the lo n is not yet determined. 3. The purpose or the loan is the Tokk hydro- lectric power project con- siat1ng of dams and tunnel to creat r servoirs having tor capacity ot 1 1 220 million cubic ters, diver ion in th To e inje riv r , and a 15 kilometer tunnel to an und r ound ver plant in vh1oh four 100,000 kw, high-head Francis turbin will be in talled. :Annual generation, which will be bout 2 billion kwh, will be fed into the lo grid over a h1 h voltage • transmis ion ystem with two n v substation and an enlarg ent to ex1 ting sub-st tion. The project 1s cheduled to be ut into initial oper tion in 1961 and completed by the middle of 1963. 4. Th project will be constructed and op r ted by or es Vs dr gs -og Elektrisitet v sen ( orwegis.n teroourse and Electricity Board), an. ene7 of the orve ian Go ernm nt. Th total cot of the project i et to b • 500 million (equivalent to bout $70 Ilion). Th coat per kilowatt in- ta.lled will ba quiva.l nt to J7 \ilhich i v ry low considering the storage it will provide. 5. Mot or the xp nditur on the project will b ford estic goods and s rvicea. The loan will, therefore, b for the oat part disbursed gain t local expenditure. 6. We hope to be able to submit doc ents to the Ex cutiv Director on abo\1t April 30th. DRAFr 4/18/$6 Internatiqnal Bank fo~ Reconstruction and Development 1818 H Street, N. w. Washington 25, D. c. Gentlemen: In connection with the Loan Agreement of even date herewith between the Kingdom of Norway and the International Bank for Reconstruction and Development, I a.TJ1 writing on behalf of the Kingdom of Norway to swnmarize and reaffirm the intentions and policy of tre Government of the Kingdom of Norway concerning the engineering and the construction of the Tokke Project as follows: 1. It is the intention of the Government of Norway to engage suf ficient additional senior experienced engineers to engineer and supervise the construction of the project to ensure its completion according to the schedule outlined in Schedule 2 of the Loan Agreement. 2. It is the intention of the Governrrent to employ contractors for the construction of parts of the project particularly the storage facili ties and transmission lines providing the '\,lse of contractors does not increase costs or cause delays. Very t~uly you:ps, KINGDOM OF NORWAX By DRAFT 4/18/56 ffiat::7 International Bank for Reconstruction and Development 1818 H Street, N. w. - Washington 25, n. c. Gentlemen: In connection with tbe Lo an Agreement of even date herewith between the Kingdom of Norway an~ the International Bank for Reconstruction and Development, I am writing on behalf of the Kingdom of Norway to summarize and reaffirm the following: It is the int~ntion of the Goverrunerrt of Norw main- tain a rate structure for NVE that will provide revenues sufficient to cover all operating expenses including adequate maintenance, adequate M1ortization or contribution to a renewal fund, interest, taxes and to leave a reasonable surplus for reinvest11Jant in NVE•s facilities,) KINGDOM OF NORWAY By FORM No. 57 (5- 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 18, 1956 FROM: J . Trempont SUBJECT: Working Party Meeting on Norway , April 18. 2:30 p.m. 1. Draft Loan Agreement Amortization schedule: August 1961 - August 1976 Disbursement proportion: 50 percent (January 1961) Interest dates: February 1, August 1 (31 semi-annual payments) Closing date: June 30, 1961. 2. Disbursement Withdrawal forms and forecast forms will be discussed at a separate meeting with the Treasurer's Department. 3. President's Report Mr . Brinch will confirm that the Norwegian counter-memorial has been filed with the International Court of Justice at The Hague on April 20, stating preliminary objection to the jurisdiction of the Court. 4. Press Release A meeting has been tentatively arranged with Mr. Young , Assistant Director of Information, to examine a draft press release by Friday, April 20. JTrempont/vhn • FORM No. 57 (5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 18, 1956 FROM: J . Trempont SUBJECT: Working Party Meeting on Norway, April 18, at 10 a .m. 1 . There will be no public issue in Canada arrl in New York . The Bank ' s loan will be for $25 million to be disbursed within a period of about 5 years at the rate of 50 percent of total expenditure. The loan will be for 20 years with a grace period of about 5 years. The interest and payment dates will be February 1st and August 1st. 2. Tentative schedule: Papers off to S.L.C. on Friday, April 20 S.L.C. meeting on Wednesday, April 25 Papers off to Board on Friday, April 27 Board meeting on Friday, May 4. JTrempont/vhn FORM No. 57 (5- 48) INTERNATIONAL BANK FOR REC ONSTR UCTION AND OFFICE MEMORANDUM TO: Files DA T E : April 18, 1956 FROM: Jo Trempont ~ SU BJ ECT: _N_o_rw_a_,y"------ lo The Working Party met on April 17 at 10 A.M. with the Norwegian representatives (Messrs. Brinch, Eriksen and Vogt). 2. A new situation developed yesterday with regard to the public issues to be made in conjunction with the Bank's loan. The Canadian and New York bond markets have deteriorated and the cost of public issues has gone up considerably. A Canadian issue is not considered anymore. The New York issue is still under consideration. 3. The Working Party decided to continue to examine formal documents with the hypothesis of a Bank loan of unlmown amount tied with a New York public issue of unknown amount . · 4. The Working Party proceeds in examining the Draft Loan Agreement between the Kingdom of Norway and the Bank: Section 2.06. The Norwegian delegation agreed on the two proposed yearly periods for the payment of interest and other charges. Section 3.03. The Norwegians asked to postpone discussion of this point until a decision is taken in New York. Section S.07. The NVE insures all goods up to deli very on site. Section 7.01 (b) . Agreement on new draft suggested by the Legal Department as to include power companies and industries. Section 7.02 (a). Remains unchanged. Section 8 .01. Agreement is reached on the proposed closing dateo Amortization Amortization period will be determined later on, when it Schedule. will be clear what is going to happen in the New York market. Schedule II. Agreement was reached on the description of the project. Schedule III (b). Amounts spent before the eff€ctive date go as far back as 1918 (beginning of acquisition of water rights) . The Working Party will consider how far back expenditure will be eligible. cc: Messr~ ope/King, Marshall, Delaume and Verheyen .. FO RM NO. 27 ( 11. 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB DATE : APRIL 18, 1956 .CLASS OF SERVICE DESIRED TO: INDUS~DEPAR~TET NIGHT LETTER [iJ CODE D /\ OSID c_NCRWAY / I} - FULL RATE D TELETYPE D TEXT: vmDENSBANKEN FORUTSETTER FOELGENDE ERKLlRINGI!R AVGITT STOPP QUOTE l IT IS THE INT:ENTION OF THE GOVERNMENT OF NORWAY TO ENCAGE SUFFICIENT ADDITIONAL SENICR EXPERIENCED ENGINEERS TO ffiGINEER AND SUPERVISE THE CONSTRUCTION OF THE ffiOJECT TO ENSURE ITS COMPLETION ACCCRDING TO THE SCHEDULE OUTLINED IN SCHEDULE 1WO OF THE L.QAN AGREEMENT STOP QUarE 2 IT IS THE INTENTION OF THE GOVERNMENT TO EMPLOY GONTRACTCRS FOR THE CONSTRU::TION OF PARTS OF THE PROJECT PARTICULARLY THE STORAGE FACILITIES AND TRANSMISSION LINES PROVIDING THE USE OF CONTRACTCRS DOES NOT INCREASE COSTS CR CAUSE DELAYS STOP QUOTE 3 IT IS THE INT:ENTION OF THE GOVERNMENT OF NORWAY TO CONTINUE TO MAINTAIN A RATE STRUCTURE FOR NVE THAT WILL PROVIDE REVffiUE-S SUFFICIENT TO covm AU. OPERATING EXPENSES INCLUDING ADE<~UATE MAINTJ!NANCE COMMA inEQUATE AMCRTIZATION OR CONTRIBUTIONS TO A RENFtIAL FUND COMMA INTEREST COMMA TAXES AND TO LEA VE A REASONABLE SURPLUS FOR REINVESTMENT IN NVE' S FACILITIES STOP UNQUOTE BEMERKER PUNKI 1 SELVFOELGELIG JEVNFOl!ll SAMTALE MID STATSRAADEN STOPP PUNKT 2 I SAMSVAR MED PROPOSITIONEN ANBEFALES GODKJENT FCRUTSATT STCRTINGET IKKE ElIDRER RETTNINGSLINJENE STOPP PUNKT 3 BANKEN LEGGl!ll MEGEN VEKT PAA GODKJENNING DENNE RETNINGSLINJE SOM ER INKLUDERT OGSM I ANDRE IAANFAVTALER STOPP For Us e by Archives Division AUTiiORI ZED BY: Checked for Dispatch NAME DEPT. F I LE COPY "E! Ud 91 S "' . ,, FORM No . 27 ( 11- 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB DATE: APRIL 18, 1956 CLASS OF SERVICE DESIRED TO: INDUSTRIDEPARTEMENTET NIGHT LETTER ~ CODE D OSLO NORWAY FULL RA'IE D TELETYPE D PAGE 'lWO TEXT: vrsm TIL \~DRAGSVFSENETS UTTALEI.SE 18 NOVEM3ER 1955 HVOR SP.MME PRINSIPP BLEV TILRAADD OG ANBEFAI.ER GODKJ»TN ING STOPP TELECRAFSVAR UTBES VOGT For Use by Archives Division AU1HORizEo BY: Onr/' Checked for Dispatch NAME Bo Bo King 'frV1L DEPT. Operations, Europe, Africa and Australasia FILE COPY - 'c \ J \·. . ,. ) ' c.. FORM No. 27 ~~\- ( 11- 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBE DATE: Ap:bil 18 1956 CLASS OF SERVICE DESIRED TO: NIGHT LETTER [!J CODE D UTGJELD FULL HA1E D TELETYPE D i:( OSW lOORWAY ) TEXT: Meddel telegrafisk om Oslo Kommunes siste laan er 1D1i1i: medtatt i representations as to external debt of Norway Brinch For Use by Archives Division AUTIIORIZED BY: n""' Checked for Dispatch NAME B. King w/ Operations DEPT. Europe, Africa & Australasia FILE COPY • ) I r- 0 , r ,J T ., ... QC .... I l .o I I. I . ~ I l !'.) L .... - - . c;m \H ss s o\ u • .., ... t I 't; ..• f ,i.-";'° .. 'I\,, • I 'i I-'_... _ .- 'l"°\:~1w1, _ \1· __. . - • 11 I"' I I • - J - · ~ - ~ ' ~- t:_- ~ •, ~ - .-_I .I I' Mr:. S .• · • C.o~ · April .17, 19$6 • I 11 • . •.... ; 111 --·· I - • .r_1-.•• I ~ . ·.. N orwaY; .. l --: • I ,i i 1 rMr.:: enney of· • r, t, ,·.; ~-· ...... - ' rri ·-,i'. ip;J..e7 tol~ y rdar that th y 'planned I _y 2nd· if there. ;wai ·~o. be • · 4,0n!B,'!,, ~'.They wou'.l.d like you, '~\ 1 rshall ~?d mys lr. to c . 1 r pos ibl. • • I r 1 . r • ,. II " - - IJ. 1' "' . L , , . r I I I ...... IL I I ..,. ,. "i I_ I• . r .. I I Fil April 17, 1956 B. • ing • • K nney told hi11 prelimin ry id a on a schedul of inking fund p ym nt for the public iss • Baa on an ieeu or 10 Jllillion, th i-ann 1 contributio would start at 300,000 in ov b r 1959 and go up by 101 000 a ti.Jn • his would ean a 11 balloon" on the final ,m nt in y 1971. in 1ap FORM No . 27 ( 11- 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBE DATE: APRIL 17, 1956 CLASS OF SERVICE DESIRED NIGHT LETTER [!J CODE TO: UTGJEI.D ) D [/( OSIJl ~AI FULL RATE D TELETYPE D TEXT: Paa gruDd marked.ate stilling 1 Nev York er banlcen gaatt med paa foreslaa bevilget fulde beloep her etop Harrim instruert avbryte arbeidet statement atop Mulig noedveIJdig forhandle viss refusjon paaloepne omkostninger Nev York Brincb For Use by Archives Division AUTIIORIZED BY: Checked for Dispatch NAME Benjamin B. Operations, DEPT. Europe, Africa & Australasia FILE COPY t :r ') .... r :f']'. :J.... .i: r'I: r')t I 'V)_[ r ') t1 ) ' l j .t f'I" :::J I: Pd / t • LUFTPOST NORGES BANK BANQUE DE NORVEGE TELEGRAFADRESSE: HOVEDBANK OSLO, April 16 , 1956. PEKO/GK/Gra. Mr . B. B. King , Internationai Bank for Reconstruction and Development , 1818 H Street, N. W. Washington 25, D. C. Dear Ben: // Thanks for your letter of Apr~l 9th (a memorable date in this country)o I have collected some figures on the credit situation, which I hope will give you the desired information. If not, call again. The liquidity position of the banks at the close of March is the tightest recorded since the war. The credit squeeze works satifactorily. 'l'he foreign exchange situation is fairly good. Our present trouble is 'the question of wages and prices. Best r egards yours 0....-"'4-c<-- / ~/~ 7 4°"1t6Rlft.. k,'e.Jl~J PEKO/GK/Gra. 16/4-56. Money and Credit Situation in Norway 1st Quarter 1956. 1) Changes in liquidity: Effects on the market through Norges Bank and Government transactions (mill. kr.): (Reduction in liquid resources - ) 12.22. 12.ll January - 95 -141 February -109 - 10 Mar ch -134 - 41 •rotal - 338 -192 Of which through: Government loans - 191 - 40 Net sale of foreign exchange (Norges Bank) 2 - 161 Cash surplus on government accounts - 225 - 203 Payment of 11 tax deposits 11 from banks to Norges Bank - 30 Instalments on Gov . debts 25 52 Payments to the State banks 67 153 Increase in Norges Bank's loans and securities 14 7 Effects on: Notes in circulation - 155 - 191 Sight- deposits of banks with Norges Bank (folio) -302 71 Treasury Bills 104 -104 Other items 15 32 2) Reserve requirements: Commercial Savings- Mill. kr. Banks Banks Total January 1956 212. 4 28. 2 240. 6 February 11 217. 4 27. 7 245. 1 March II 218. 1 27. 6 245.7 Excess Reserves : (Monthly average) January 1956 348. 4 50. 8 399. 2 February II 289. 3 46. 8 336. 1 Mar ch II 92. 0 38. 5 130. 5 - 2 - 3 ) Treasury Bills (3 months) held by banks and others: End_of_March_l926: 267. 3 mill. kr. (of which banks 249. 6) Matur it1_dates of bills as per arch 31, 1956: Apr il 3 ' 1956 15. ~) II 9 , II 55. 5) II 17, 11 20. 9 ) 112. 3 5 II 24, II 20. 5) May 2, II 52. 2 ) II II 9, 29. 1 ) 122. 4 II 18, II 30. 3 ) II 24, II 10. 8 ) June 2, II 4. 45) It 9 , II 7. 0) II 17, II 11. 6) 32. 55 ti 24 , II 9. 5 ) 4) Increase or decrease (-l in loans and de12osits of ,joint- stock banks and savings- banks: 1956 ·1955 a) Total loans: Jan Febr. Jan/Febr Jan. :B'ebr. Jan/Febr. De c. Com. banks - 56 124 68 54 107 161 - 124 Savin s banks- 1 1 24 1 4 All banks - 69 132 68 ... 28 126 204 - 82 of which .,,.. mortgages: 4 3 Z 2 -1 39 1... 16 ..., 36 .., 52 1 The Febr uary increase in loans i s due to this year' s large herring- and cod fisheries and increased l ogging. b) Deposits ( all banks) : Dec.1954 De c. 1955 Jan. 1955 Jan. 56 Febr. 56 Demand deposits - 427 3 276 41 43 Fixed II - 15 5 26 - 29 4 Savings account 1 47 89 64 14 6 months notice 46 68 42 60 38 Total deposits - 392 113 43 1 136 91 Increase in bankers' checks 241 62 - 232 - 61 5 - 1~6 ,,s ,t (ill- 1S % The different movement in deposits on demand from Dec. 54 Jan. 55 , as compared with Dec. 55- Jan. 56 , can probably be explained by the abolishment of the tax on bank deposits last year. This development is further reflected in the movement of bankers' checks at the turn of the yearo FORM No. 57 (5. 48) INTERNATIONAL BANK FOR RECONSTRUCTI ON AN D DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 16, 1956 FROM: J. Trempont I-- SUBJECT: Working Party Meeting on Norway The Working Party met on April 13, at 3:00 p.m., with Mr. Eriksen, representative of the Norges Bank, and Dr. Vogt, representative of the State Board for Watercourse and Electricity. 1. Dr. Vogt reported of a meeting Mr. Brinch and he had with the Norwegian Parliamentary Committee last Tuesday, on the Tokke Proposition. Last Wednesday the representatives of the various parliamentary groups met in a secret session on the same subject. From these meetings, it is assumed that the Storting Committee Report and its Recommendations will be ready for the end of next week and that the Storting will deliberate on it in plenary session on April 23 or 24. No problem is anticipated on the principles of the loan and the project itself; diff iculties could arise from details of the Regulation Plan. The Regulation Plan will probably be considered in June. 2. Mr . Marshall discussed with Dr. Vogt the latest technical details on the project. 3. The Working Party arranged the agenda for further technical meetings and meetings on the text of the draft Loan Agreement itself. cc: Messrs. Cope/Umbricht / Marshall Delaume Verheyen ~~~c~-,-. • FORM N O , 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (a. 55l ~--- ~ OUTGOING WIBB CLASS OF SERVICE: DATE: , ~ , Iii!~ A.PRil, ,IIJ. 47;,v TO: t 1DSBf PAL\CI Jl01'lt COFEIIWiltf• tllMABl COUNTRY ( .'EXT: Cable No . IOd\ Signed: AUTHORIZED BY: NAME: For Use bv Archives Division DEPT: Checked for Dispatch SIGNATURE: ORIGINAL (File Copy) (IMPORTANT: See over for guide in preparing Outgoing Wire) GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minumum charge for 22 words including address and text. Full Rate Full rate messages are normally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. IBF Govt. This is a preferential rate extended to the Bank by some of its member countries. Messages are sent at full rate speed and ac about half the cost. This race normally should be used whenever available. le is at present available for the following countries: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras • Syria Burma Ecuador Jordan Uruguay Chile El Salvador • Lebanon Venezuela • China • Ethiopia Nicaragua Yugoslavia Colombia • France Pakistan Costa Rica Greece Panama • In these countries the letter telegram race is lower than IBF government rate and should be used for messages when immediate crans~ission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having a code with them. Day Letter Day letters are delivered during the day of transmission and should be used only for messages in the United States and to Mexico and Canada. There is a min1mum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only last name of addressee and cable address whenever possible. The Bank cable address "INTBAFRAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination must always be added. (No charge is made for the name of a country). 3. Text Messages to Bank Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Exe. 2008. Type text in capital letters and double space between lines. The text should be edited to elirrinate unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma," "Stop," etc. Use common abbreviations whenever possible, i.e. reourlec, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. Airmail, Newyork, enduse. 4. Signature Type in last name of sender. Use INTBAF RAD a s pare of the signarure only when addressee does not know the address of the sender. 5. Authorization Type in name and department of staff member authorizing message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 210 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for the despatch of of cables outside of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. \.! I (?. FORM No. 26 (I. 50) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INCOMING WIBB APRIL 15, 1956 1215 DATE OF WIRE: ROUTING TO: I1TERNATI01'AL BANK POR RECOISTRUCTION ACTION COPY TO MR BROCHES A1'D DEVELOPMlfflT FROM: OSLO INFORMATION COPY TO loecoded By TEXT: SEVE1'TEEN BROCHES PRIMO MORTGAGE BAU WILLING IICLUDE EXTEMAL DEBT NEGATIVE PLEDGE I1' LET'l'ER OR I1' LOAN AGREEMDT BUT KOT I1' GUARANTEE AOREEMEJlr OK OROU1'DS ROT AOE1'CY AS OUTLIIED MY ..,.- '1< ~-o I .,:,. , LETTER PIVE. PLEASE ADVISE YOUR REACTIOI SECUKDO REVISED SECTION PIVE ZERO FOUR IK MAIL AKD LEIKODK WILL'WRITE RE MEAJURO SECT I OK POURTEE1' LAW. ARRIVE PAI.ACE HOTEL COPEIHAOEN MOKDAY MORSEY Notification made. DUPLICATE • ,• i· • .ii.. ,' pc;ril IN ri i I I l ., I LJdV DRAFT . 4/13/S6 [Plac!7 ffiatf}] International Bank for Reconstruction and Development 1818 H Street, N. w. Washington 25, D. c. Gentlemen: In connection with the proposed Loan Agreement (Tokke Project) to be entered into between the Kingdom of Norway and the International Bank for Reconstruction and Development, I am writing on behalf of the Kingdom of Norway to sunnnarize and r eaff iI .1 certain f acts relati ng to the external debt of the Kingdom of Norway, as follows: (1) We have submitted to you with our letter of February 3, 1956 the f ollowi.ng: Form A: List of external publicly-issued pr ivately-held bonded debt and debt payments during six months I period ended Decemqer 31, 1955. Form B: List of other external public debt and debt payments during six months' period ended December 31, 1955. At various times in t~ past we have also subrni tted to you Form C: Description of I ndividual Debt, covering each of the items of debt listed in Forms A and B. (2) Except as indicated in Annex A attached hereto, such forms accurately set forth the amounts arid princ:ipal terms and condi tions of all outstar1ding public debt of Norway, Bank; of Uorway and of t he political subdivisions as of December JL, 19$5. - 2 - There has been no substru1tial increase in such external public debt since that time except as indicated in the memorandum attached marked Annex A. * (3) Except as stated in such forms and annex, no mortgages, pledges, charges or other liens exist in favor of any such debt. It is our mutual understanding that, in making the proposed loan, your. Bank may rely on the statements and facts set forth herein and in the docmnents mentioned above. Ver KINGDOI1 OF NORWAY By Attachments * Annex A should include a statement of the terms and conditions of any debt not included in Forms A, Band C, e.g., the matured but unredeemed bonds which are the subject of dispute with French bondholders, the City of Trondheim loan made in January (including a statement of the security for that loan), and any increases in the EPU debt. N~,- _.. FORM NO. 27 ( 11- 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ~ OUTGOING W IBE DATE : APRIL 13 , 1956 CLASS OF SERVICE DESIRED TO : VIR.G INI l ~ORSEY NIGHT LETTER LJQt: CODE D CARE OF KARSTEN NL..,,LSEN UTGJELD FULL RATE D TELETYPE D OSLO (iWKlAY) TEXT: V FIFTEEN YOUR SIXTEZN PRIMO GREE BROCHES For Use by Archives Division AU1HORIZED BY: K"'\\ Checked for Dispatch NAME Broches ~ / DEPT. Office of the General Counsel AB r oches/aro.k FILE COPY • ,· -;- · ,. r lid av £ ,· r .J FO RM NO . 27 ( 11. 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM ENT OUTGOING WIBB DATE: APRIL 13, 1956 CLASS OF SERVICE DESIRED NIGHT LETTER @ CODE TO: VIRGINIA HORSEY D CARE OF KARSTEN NIELSEN FULL RATE D TELETYPE UTGJELD D OSLO ( NORWAY) TEXT: // SIX'rEEN YOUR FIFI'EEN PRihO NO'.::ED SECUNDO AGREED TERCERO S TISFACTOO.Y STOP ASS 1., •iE YOG WILL }1AIL ALL DOCUi'-1ENTS NEEDED HERE BEFORE LEAVING E OSLO STOP HAVE PLE ASANT VACATION vRCX::HES For Use by Archives Division AUIBORI ZED BY , h Checked for Dispatch NAME A. Broches I/, DEP T. Office of the General Counsel ABroches/amk FILE COP Y ~--- -- ,· ,.. . ' . FORM No. 26 ( 1. 50) INTERNATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT INCOMING WIBB APRIL 13, 1956 1210 ROUTING DATE OF WIRE: INTERNATIONAL BAR POR RECONSTRUCTION ACTION COPY TO MR. BROCHES TO: AND DEVELOPMENT OSLO INFORMATION COPY TO FROM: Decoded By TEXT: FIFTEEN BROCHES PRIMO TEXTS MINISTER INDUSTRIES CERTIFICATE 701 B REVISED TO INCLUDE REFERENCE INDUSTRIES MAILED YESTERDAY. SECUNDO I PREFER OMIT REPEREBCE INDUSTRIES !ff 702A AND OPINION SINCE CERTIFICATE MINISTER INDUSTRIES POOD SUFFICE ON THAT POINT AND MINISTER JUSTICE NOT IN POSITION TO KNOW ACTION REQUIRED BUY INDIVIDUAL INDUSTRIES. PLEA.SE CABLE YOUR REACTION OSLO TERCERO TOKKE PROPOSITION CONTEMPLATES GOVERNMENT WILL UNDERTAKE OBLIGATION TO BANK TO CARRY OUT PROJECT ACCORDING TIME SCHEDULE AND THAT ALL FUIIDS WILL BE VOTED IN YEARLY BUDGETS REGARDLESS OP AMOUNTS LOANS RAISED. SEE PAGE 18 NORWEGIAN TEXT. BELIEVE THEREFORE PRACTICAL DANGER DELAY IN OBTAINING FUNDS SLIGHT. PURPOSE LOANS TO COUNTIES AND INDUSTRIES PRIMARILY TO COMMIT THEIR FUNDS TO REDUCE LEVEL OTHER INVESTMENT RATHER THAN 1110 PROVIDE FUNDS NEEDED BY GOVERNMENT MORSEY DUPLICATE .. FORM No . 57 (5- 48) INTERNATIONAL BANK FOR REC ONSTRUCT ION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DAT E: April 13, 1956 FROM: B• :S o King SU BJ ECT: _N_o_rw_a_,y'----- Mr. Brinch called me today from New York to say that: (i) The Storting Committee would give their recommendation on Tokke to the Storting on Thursday, April 19. (ii) The Storting will consider the recommerrlation on Monday, April 23. cc: Messrs. Cope/Umbricht / Marshall Delaume Verheyen CABLE ADDRESS: u LADYCOURT," NEW VOR SULLIVAN & CROMWELL April 12, 1956 Mr. Benjamin King, International Bank for Reconstruction and Development, 1818 H Street , N. W• , Washington, D.C. Dear Ben: I am enclosing herewith three copies of the revised draft of the Prospectus, one copy of which is for Ivan Eriksen. Sincerely, (Enclosures) FoRM No. 58 ( 5- 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT E MEMORANDUM TO: Mr. s. R. Cope DATE: April 12, 1956 FROM: A. Broches SUBJECT: Norway I understand that neither you nor Technical Operations Department see any ·objection to not having formal and binding acceptances by the counties and municipalities before the loan is declared effective. I can agree with that point-of-view but I wonder whether we should not have some pretty firm information as to what Norway is going to do in the un likely event that the assurances will not be forthcoming in the end. In other words, I believe that, if we do not already possess it, we should obtain a satisfactory explanation of how Norway is going to finance the project without delay in the absence of financing obtained from the counties and municipalities. (Dictated over telephone by Mr. Broches) FO RM No. 57 J~ ~ ( 5. 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: The Working Part1 DA TE: April 12, 1956 FROM: B. B. King SUBJECT: Norway - Aide-Memoire Loan Agreement (1) Section 2.06. May 15/Nov. 15 is acceptable to the Bank. Eriksen will check with Brinch. (2) Section 3101. Procurement question still being reviewed by the Management. (3) Section 3103. We expect to hear from Brinch plans for use of foreign bond issue proceeds and county loans. (4) Section 5107. Insurance question subject to Working Part1 agreement. (5) Sections 7101/7 202. Nature of subscribers in addition to counties to be discussed with Dr. Vogt. (6) Schedule 1. Grace period to be discussed with Brineh. (7) Schedule 2. Project Description to be checked by Dr. Vogt. Side-letter (8) Draft re engineers am contractors to be discussed first with Dr. Vogt, then with Brinch. Disbursement ( 9) Revised withdrawal application forms being prepared. by Treasurer's Dept. (10) Quarterly' forms for import forecast and statement of imports during previous quarter being prepared by Treasurer's Dept. Minimum amount to be decided. (ll) Draft of letter regarding disbursement procedure being prepared by Treasurer's Dept. (12) Amount and timing of expenditure before effective date to be discussed with Dr. Vogt. Decision as to inclusion in "eligible" expenditure to be made. - 2 - Reports (13) Economic report should be available on stencils by April 1.3, cleared with Mr. Brinch April 16/17, distributed to SLC and ED 1s April 18. (14) Technical report is to be revised after discussion with Dr. Vogt and. if possible distributed to SLC April 20 for possible meeting April 24. (15) President's report is to be distributed to SLC in draft (certain details may still be lacking) April 20 for possible meeting April 24. The section on the Franco-Norwegian dispute should be shown to the French ED. Miscellaneo;us (not connected with loan) (16) ..llQ. Mr. Brinch to see Mr. Mend.els. (17) W for Finland. Letter to Nielsen already given to Eriksen to be discussed with Brinch • cc: Messrs. Cope/Umbricht ./ . Ramm/Verheyen Marshall Delaume • ------P ~1 \~ & . ~v FORM No . 57 ~ (5. 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT .... ~ OFFICE MEMORANDUM TO: The Working Party DATE: April 12, 1956 FROM: Bo Bo King w, SUBJECT: Norway - Insurance clause 5.07 l o The question of the Bank' s interpretation of "adequate arrangements" came up yesterday in discussion with Mr. Eriksen. 2o !t is my understanding that the Bank has frequently accepted self insurance by governments as adequate with or without a special fund f or the purpose. In principle, I think we should accept it in this case, especially as the amount of imports is so small. 3. However, I think we should discuss with Dr. Vogt how the NVE• s self insurance scheme operates, in particular: (i) the percentage applied annually to the fund and the inter est rate at which it accumulates§ (ii) the time at which contributions from each project are ma.de to the fund (end of construction); (iii ) whether withdrawals from the fund can be made, in the event of accident, more or less automatically (without parliamentary action); (iv) whether, as we would expect, the fund is a universal one for NVE projects as a wholeJ (v) what wo uld happen if there was a 12.,.ss gi:eater than the whole fund (the cost of one generator or turbine for •I./ Toldce is about ~e the present fund) • (vi) In general, 'What past experience has been with the fund. 4. If we are satisfied with the answer s to the above and any other questi ons, then we could agree orally on the definition of 11 adequate11 • So Please call me to let me know whether you agree with paragraphs 2 and 4. ~/ cc: Messrs. Cope/Umb-~t Marshall /1,;u Verheyen Delaume The World Bank Group Archives Record Removal Notice & Records Management File Title Barcode No. Electric Power Development Project - Norway - Loan 0138 - P037468 - Negotiations - Volume 2 1705808 Document Date Document Type April 12, 1956 Letter Correspondents I Participants To: Broches From: Virginia Morsey Subject I Title Norway - Letter No. 10 Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina April 16, 2018 Archives 01 (March 2017) The World Bank Group Archives Record Removal Notice & Records Management File Title Barcode No. Electri c Power Development Project - Norway - Loan 01 38 - P037468 - Negotiations - Volume 2 1705808 Document Date Document Type April 12, 1956 Outgoing wire Correspondents I Participants To: Virginia Morsey From: Delaume Subject I Title Norway Loan Exception(s) Attorney-Cli ent Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina April 16, 2018 Archives 01 (March 2017) t tJ~ ,1:.'&- ir FORM No. 57 (5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENV .....-<.--&, OFFICE MEMORANDUM TO: Mr. S. R. Cope fl.L. ~ DATE: April 11, 1956 FROM: J. Trempont~ lO/. SUBJECT: Norwegian Ee~ nom.y In view of your talks with Mr. Brinch next week, I have sununarized a few indications we have on developments since the economic report was written. Industrial Production 1. Aluminum output will be considerably expanded in 1956. Production at present is at the rate of 100,000 tons a year, or 44,000 tons more than in 1954. Large new aluminum works are projected. at Mosjpen in Northern Norway with a yearly capacity of 100,000 tons; while the state works at Aardal and Sunndal have prepared. plans for exp'ansion, calculated to in crease output by about 36,000 tons a year. When these plans have been realized, the country's total production of aluminum will be in the neighborhood of 250,000 tons a year. For the time being exploitation of the capacity of the Mosj~en works will be limited to 60,000 tons a year, as only 1.2 milliard kwh of power will be available, am utiliza tion of the full capacity of 100,000 tons would require 2 milliard kwh. (The remaining 800,000 kwh will eventually be generated by the aluminum works itself, by the use of local hydro resources.) These works, in con trast to those at Aardal and Sunndal, will be privately owned. 2. Whaling expeditions in the Antarctic reported 488,720 barrels of whale oil as of February 10, after 42 days of catching; last year, after 43 days, the result was 459,370 barrels. The U>foten cod fisheries, after four weeks catching, totaled 8,076 tons as against 7,335 tons at the same time last year. J. Insufficient precipitation has made it necessary to cut the elec- tric power quota for subscribers in Fast Norway to 86 percent of normal consumption. Wage Claims, Prices and Subsidies 4. The wholesale price index for March 1956 is 4 percent above the March 1955 figure. On March 19, subsidies on coffee, sugar and margarine have been ~bolished; subsidies on flour have been reduced (altogether= N.kr. 135 million a year). The consequent increase in consumer prices for these products ranges from 8.6 percent for sugar to 21 percent for margarine. This raises the cost of living index by 1.2 percent. Further substantial price increases are generated. by a cut of N.kr. 135 million in subsidies to agriculture. In partial compensation, allowances for large families and the age limits eligible for them are to be raised. Prices have been tem porarily blocked at their level on March 17. This measure is described to have been taken to help bridge over the difficult period of the next few .. - 2 - months (negotiation of new wage tariffs and discussion of new farm-price agreements). 5. The Prime Minister has indicated his intention to raise the income of farmers by N.kr. 100 million and that of wage-earners by N.kr. 400 mil lion. But it is likely that the government plans are to be upset by the wage claims of the trade unions, which go far beyond the limit of 20 l>re/ hour considered economically justifiable by the government. Recent reports indicate that wage negotiations have broke down. A serious labor conflict threatens, should mediation fail. Public Borrowing 6. New lottery bonds have been issued on March 15 (N.kr. 75 million, 15 years). Still more attractive prizes are again exempt from income tax. n 7. A Swiss loan ($3.5 million, 12 years, redemption beginning after , the sixth year, 5.3 percent) will be used to put into operation in Feb ruary 1958 a German paper machine (annual production, 45,000 metric tons of newsprint). The City of Oslo is also negotiating for a Swiss loan (Swiss francs 25 millionl 15 years, redemption beginning after the seventh yea:r, 4t percent). Prospects for the Balance of PaYD1ents in 1956 8. It was recently stated that the deficit on goods and services could be reduced below N.kr. 300 million ($42 million) in 1956. While there are m.a.ny uncertainties, the government believes that a further reduction of the deficit should have priority over an;y increase in imports greater than now expected. Therefore, a relatively tight import policy is continuing. However, imports of some goods subject to quota restricti0n (medical appliances, some iron and steel products) have been eased. The government bas also announced its intention to raise later the liberalization percentage within :EPU and to make a start on the partial liberalization of dollar imports. 9. Import surplus in January 1956, ships excluded, was valued at N.kr. 179 million, as against N.kr. 192 million in the same month of last year. Imports in February, ships excluded, were valued at N.kr. 542 million, with exports of N.kr. 390 million, as against N.kr. 613 million and 434 million in January. Corresponding figures for February 1955 were N.kr. 506 and N.kr. 371 million. Scandinavian Cooperation 10. The consultative Nordic Council held a ten-day meeting in Copen- hagen from January 27 through February 3. For the first time Finland was represented. Before adjourning, the Council was invited to hold its next session in Helsinki in 1957. The main subject discussed was the proposed establishment of a Nordic customs union. The Council agreed that the Economic Cooperation Committee, which is examining all - 3 - of the problems involved in developiDg a common market, should continue its studies and report to the Council in due course. The Committee's recommendations will then be discussed by the Council, but the final decision will be made by the Parliaments of the five Nordic countries. DuriDg the general debate, the eight non-labor members of the Norwegian delegation expressed fear that a joint market might briDg more disad vantages than advantages for Norway. The eight labor members spoke in favor of the economic integration proposals, as did representatives from the other Nordic countries, regardless of political party. r11,JA.JL$H 11. The Norwegian, F!!-eneh and Russian governments have signed a protocol in February on regulatiDg the waterflow from Lake Enare into the Pasvik river which marks the border between Norway and USSR. Final proposals for a coordinated exploitation of the PasT.ik river's water power are expected next summer. .. FO RM No. 57 ( 5. 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DA TE: April 11, 1956 FROM: J. Trempont i SUBJECT: Working Party Meeting on NorwaY The Working Party met on April 11, at 10:30 a.m., 'With Mr. Eivilld Eriksen, representative of the Norges Bank, to consider the draft Loan Agreement. Section 2.06 - Mr. Brinch will indicate next "Week the preference of the Norwegian Government for the dates of semi annual payment of interest an:l other charges. The Working Party will inquire as to the convenience of the Treasurer's Department. In last Loan Agree ment, dates were May 15 an:l November 15. Section 3103 - To be raised after the arrival of Mr. Brinch an:l Dr. Vogt. Section 5.0l(c) - When the Bank's requirements for accounting reports from NVE were explained to Mr. Eriksen, he withdrew his reservations on this clause. Section 5.07 - Would the Bank consider as adequate an insurance against the risks between the port and the site of the project the self-insurance system of the Nor wegian Government. The Bank shall decide later on the exact meaning of the word "adequate". Section 7 10l(b) - Three counties have to be ta.ken out: West Agder, Oppland and lied.mark. 11 and II is added tentatively after "Municipality of Oslo". Section 7 102(a) - has to be drafted again. The Bank awaits docu ments from its legal expert now in the field. L • '·N'v'IW ' \1/f~, I .APR 11/ REC'D DET KONGELIGE HANDELSDEPARTEMENT (THE ROYAL NORWEG I AN MINISTRY OF COMMERCE ) Oslo, April 11th, 1956. By airmail. Dear Mr . President: I have the pleas~o acknowledge the receipt of your let~er of March 27th which I received today. It is my sincere hope that a public issue of bonds of the Kingdom of Norway in the United States in conjunction with a Bank loan will be possible also this year. I also share the view that it would be to my country's advantages to make an issue in the Canadia~ market if it can be done on acceptable terms. When it is the question of market loans it goes without saying that we must give the cost question careful consideration. You will remember that two years ago when the idea of joint o~erations came up in connection with our first Bank loan it was agreed that a New York operation at that time would be too costly. I am not very up to date on market possibilities just now , but according to indications given some months ago it seems probable that market loana are f easible in connection with our third Bank loan. I understand that Mr. Brinch will leave for New York and Washington today. Y~ incerely, Arne Sk{::,V President Eugene R. Black, International Bank for Recon struction and Development, Washington 25, DC11 .. •-" \, .J y !"' • () I, 1 J .. .. ., ; j j ) ._ ' 0 0 ' rt :o .. r .t FORM NO. 26 ( 1. 50) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INCOMING WIBB ,p· ;• ..01 l 10r'J' DATE OF WIRE : ; l..'...l, ' -,.:.u ROUTING ACTION COPY TO FROM: INFORMATION COPY TO De c oded By TEXT : B ./ T :V A ff. WILL • ,ADI 05LO UNTIL !OU, CABLES EI\'ED Notification bej.ng made tor !11 1.s:s 1~rntry· DUPLICATE • FORM No. 26 ( 1. 50) INTERNATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT INCOMING WIBB APRIL 10 1956 DATE OF WIRE : 1 ROUTING INTERNATIONAL BA!.;K FOR RECO~TRUCTION AND ACTION COPY TO MR . SOMMERS TO: DEVELO IMENT OSLO INFORMATION COPY TO FROM: Decoded By TEXT : THIRTEEN SO.Mr COPENHAGEN PALACE JOTEL THURSDAY TWELFTH,.. HAPPY RETURN WASHINGTON EARLY ?ffi:XT WEEK IF SCHEDULE LOANS AND AVAILABILITY MANPOWER MAKE IT DESIRABLE . OTHERWISE WILL VISIT SPAIN ANll RETURN WASHINGTON ABOUT Tr/ENTIFIF'l'H APRIL. PLEASE AlJVISE YOUR PREFEREHCE MORSEY Noi if'i cat ion being made for Miss Morsey DUPLICATE • RM No. 57 ( 5 . 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 10, 1956 FROM: J. Trempont ~ SUBJECT: Working Party Meeting on Norwa..y The Working Party met on April 10, at 10:30 a.m., with Mr. Eivind Eriksen, representative of the Norges Bank. The following points were made: 1. Disbursement will be made on a pro-rata basis, except to the extent it should be decided to finance ~orts of specific goods. The pro-rata basis should be calculated on the basis of a percentage that would make for complete disbursement within a period of 3 years. 2. The Bank will be kept informed of the imports to be made during the first 3-year period.a - a) by a quarterly letter of forecast (from NVE through Norges Bank) of aizy- substantial im ports expected; b) by a statement of substantial imports actually made during the previous quarter. 3. Where NVE contracts with foreign suppliers are expressed in Norwegian kroner and the Bank decides to finance specific imports, it would disburse the equivalent in the currency of' the originating country ( use of 18% funds) • 4. A letter will be sent by the Treasurer's Department to the Norwegian Government summarizing the procedure. 5. The draft applications for withdrawal of funds were reviewed and agreed. JTrempont/vhn .. The World Bank Group Archives Record Removal Notice & Records Management File Title Barcode No. Electric Power Development Project - Norway - Loan 0138 - P037468 - Negotiations - Volume 2 1705808 Document Date Document Type April 10, 1956 Letter Correspondents / Participants To: Broches From: Virginia Morsey Subject/ Title Norway - Letter No. 8 Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina April 16, 2018 Archives 01 (March 2017) Record Removal Notice &Archives Records Management File Title Barcode No. Electric Power Development Project- Norway- Loan 0138 - P037468 - Negotiations - Volume 2 1705808 Document Date Document Type April 9, 1956 Incoming wire Correspondents / Participants To: Broches From: Virginia Morsey Subject I Title Norway Loan Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina April 16, 2018 Archives 01 (March 2017) FORM NO, 26 (1.50) INTERNATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT INCOMING WIBB APRIL 9, 1956 1920 DATE OF WIRE: ROUTING INTERNATIONAL BANK FOR RECONSTRUCTION MR BROCHES TO: AM> DEVELOPMEN'l' ACTION COPY TO OSLO INFORMATION COPY TO FROM: !Decoded By TEXT : TWELVE iyrocHEs PLEASE CONSIDER PROCEDURE OUTLIMED MY CABLE ELEVEw/oN ASSUMPTION MAJORITY ACCEPTANCE MAY BE IBFORMAL AT DATE LOAN SIOIIATURE. BRINCK PEELS PRACTICAL DAlfOER AlfY CHANGES AS RESULT ACTION FYLICESTHINOENE ALMOST NIL MORSEY DUPLICATE • The World Bank Group Archives Record Removal Notice & Records Management File Title Barcode No. Electric Power Development Project - Norway - Loan O138 - P03 7468 - Negotiations - Volume 2 1705808 Document Date Document Type April 9, 1956 Incoming wire Correspondents / Participants To: Broches From: Virginia Morsey Subject/ Title Norway Loan Exception(s) Attorney-Client Privilege Additional Comments The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group. Withdrawn by Date Vlada Alekankina April 16, 2018 Archives 01 (March 2017) • - April 9, 1956 My dear Nielsen, Many thanke for your lett rs ot April 7th. We have only just got them but they seem to answer all our questions Yery satisfactorily. Yours sincerely, B. B. King Mr. Carsten Nielsen Det Kongelige Hand lsdepartement Oslo, Norway in iap AIR MAIL April 9, l9S6 Mr. Halvard Roald Nor va dr gs-og Elektrisi tstawaen Hoveds t7,N t Oslo, Morway Dear Mr. Roaldt I ppreciate very uch your ndingv th int' tion on tbe Forecast of Inco s te nts. Erik.mm i here and n looking !orward t.o • tin w1 th Dr. Vogt and • Birnch. Yours r1nc rely, /:l//f L• Gray Marshall Public Utili ti Division par nt of 'l\JohJd.cal O r Uons LGMzfmc F ORM N o . 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (8- 55) OUTG OING WIBE CLASS OF SERVICE: LETTER TELEGRAM DATE: APRIL 9, 1956 TO: VIRGINIA MORSEY HOTEL CONTINENTAL OSLO COUNTRY (NORWAY) i EXT: Cable No. ELEVEN TO ASSIST IN SCHEDULING WORK ASSIGrS PLEASE CABLE ESTIMATED DATE RETURN STOP REPEAT OUR CABLE TEN PLEASE DISCUSS FOLLOWING WITH THAT COUNTY COUNCILS (FYLKESTHINGENE) WILL NOT HAVE TAKEN FINAL ACTION BEFORE SIGNING OF LOA.N STOP IF THIS IS CORRECT FIRST HOW DOES THIS AFFECT LEGAL OPINION TF.AT COUNTIES ASSURANCES ARE VALID AND BINDING SECOND WHAT TYPE OF ASSURANCES WOULD WE GET STOP PLEASE SEND US FULL TEXT OF ROYAL RF.SOLlITION Signed: SOMMERS AUTHORIZED BY: NAME: DSommers J.-121 For Use bv Archives Division DEPT: Office of the General Counsel Checked for Dispatch SIGNATURE: ORIGINAL (File Copy) (IMPORT ANT: See over for guide in preparing Outgoing Wi re) ' .. GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minumum charge for 22 words including address and text. Full Rate Full rate messages are normally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. !BF Govt. This is a preferential rate extended to the Bank by some of its mem her countries. Messages are sent at full rate speed and at about half the cost. This rate norma lly should be used whenever available. It is at present available for the following countries: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras * Syria Burma Ecuador Jordan Uruguay Chile El Salvador * Lebanon Venezuela * China • Ethiopia Nicaragua Yugoslavia Colombia * France Pakistan Costa Rica Greece ~anama * In these countries the lette.r telegram rate is lower than IBF government rate and should be used for messages when immediate transmission is not required. Code Code messages are transmitted at full rate (or !BF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having a code with them. Day Letter Day letter s a re delivered during the day of transmission and should be used only for messages in the United States and to Mexico and Canada. There is a minimum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only last name of addressee and cable address whenever possible. The Bank cable address " INTBAFRAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination must always be added. (No charge is made for the name of a country). 3. Text Messages to Bank ·Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 2008. Type text in capital letters and double space between lines. The text should be edited to elilT'inate unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma, " "Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. A1rma1l, Newyork, enduse. 4 . Signature Type in last name of sender. Use INTBAFRAD as part of the signature only when addressee does not know the address of the sender. 5. Authorization Type in name and department of staff member authorizing message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 210 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for the despatch of of cables outside of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. 1 ,\~'1 lN v~i:1 . ·,,. I ''"'J.'l':. :i • April 9, 1956 D r Gabrielz Eivind Eriksen has arrived here safely in spit of th snow 1n New York. We ve talked bout rious things today., among th th changes which have tak place in the first quarter of thi year in the credit situation in Norway. I understand ther · h s been quite tightening in th rket. Eriksen ugg sted. t t you might b bl to send me some figur s for the first quarter which mi ht illustr te these developments. If' you could do this • without too much trouble I would be at ful for anything you could send me . Of cour e I l ve the ehoic of what would be the most suitable information up to you. Even at this late dat I would like to say that I very much enjoyed th v ning I spent with you nd your family. I hope Mr • Kj lland and the girls are all as well as when I saw them last. Ky best wishes to th and to yourself. Sincerely yours, B. B. King Mr. Gabriel Kjelland Norges B nk Oslo, orway in rap~ Mr • • A. B. Ilift April 9, 1956 V. Umbricht Nor\18.y - International Competition A question has arisen as to competitive bidding in a local exepnditure loan, as exemplified in the Bank's next Nol'\legian operation. As some of the Norvegian negotiators have al ready arrived, I should like to have early advice on the mattero VUmbricb""t: • DET KONGELIGE HANDELSDEPARTEMENT K O NTOR E T FO R UTENLANDSK S T ATSGJE L D Hd. jnr. 1017/56 G CN/BH Oslo, April 7, 1956• My dear Your letter of March JO, 1956 has been studied, and we are now able to comment as follows: 1. The Wholesale Price Index in Statistiske Meldinger is based on 1938 = 100. To get the figures based on 1949 = 100, we have for instance computed the -1950 figure (according to Table No. 47 in Statistiske Meldinger: 209) to be 209/184 or 113,5869, rounded to 114.:. As f ar as we can see the figures in the Prospectus are correct. 2. The figures in the Prospectus for the Cost of Liv'ing Index is taken from Table 48, letter (b), in the Statitiske Meldinger, which gives values excluding contributions to Trade Unions• Table 48, letter (a) includes such expenditures. For the years 1950-52 the figures are the same. For 1953 the Prospectus wil l have 136, while you have 135 which corresponds to Table 48, letter (a). However, we regret that we cannot find out how the figures collected by you for 1954-55 have been compiled. The Prospectus figures is supposed to be t he more suitable ones if , you find the values excluding the above item could be used. J. The General Balance of Payments figures given by you in Annex I is compiled on information from the National Budget 1956 , which was based on figures available in December 1955• The figures have since been revised and the Draft Prospectus (Proof of ~rch 23) - 2 - was based on information available in February. Just recently we have been told by the Central Bureau of Statistics that according to latest information the figure on page 24 in the Prospectus re garding ttShipping loans (net)" should be reduced from 592 million to 53 5 million with a corresponding increase of "Other items (net)" nrom -11 to JI;, leaving unchanged ~t 344 million the increase of foreign exchange reserves. Therefore in your Annex I the following figures in second column should be changed: Actual payments on ships~from 644 to 701 (Total Imports) from 7802 to 7158 Deficit for current transactions from -64 to -121 Total amount to be financed from -196 to -253 Municipal & private loans, Miscellaneous from -11 to JI; 4. As regards the problem raised in your Annex II Mr • Eriksen, who is leaving for V&ashington ri::11 today, has promised to explain the discrepancies. I hope the above will be helpfull. If more information is necessary we are ready to assist you. ~ Today I received your letter of April 3 • Many thanks for congratu lations. I am looking forward to seeing you in September. c::·l:._ Carsten Nielsen Mr . Benjamin B. King, International Bank for Reconstruction and Development , Washington 25, D.c. DET KONGELIGE HANDELSDEPARTEMENT (THE ROYAL NORWEGIAN MINISTRY OF COMMERCE) Hd . jnr .. 959/1956 CN/GH Oslo, April 7 , 1956. My dear King : // In reply to your letter of March 21 , I can give the followin g inf ormation : 1. Statistiske Meldinger - Ma rch iss~~ has not yet been rece ived.,. From St atistics Bureau we have been informed tha t the avera ge industrial wages for men during last quarter of 1955 was 4, 79 kroner Loans by the State Banks as per De cember 31 , 1955 were 4, 413.9 million kroner. The forrespondin g figure for the Credit Associations is expected to be available in a weeks time. Mr. Elsas of the Minist~r of Finance has s ee~ prepared a revised version of' his memorandum " oney Flow9 whole .//. year" , of which 2 copies are enclosed. /' t ~ The Bank of Norwa y ha s provided figures showing the ship mortgage debt as of December 31 , 1952 and 1953. I>/. A statement is attachedo (~t- Best regards , ~~- ') Yours sincerely, ~~~ Carsten Nielsen lVIr . Benjamin B . King Interna tional Bank for Reconstruction and Development, 1818 H. 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Telegramadresse: VASSDRAG OSLO Deres ref. Deres brev av Var ref. HR/TM Mr . L. Gray Marshall, International Bank For Reconstruction and Developmen~, 18 18 H Street , NoW . Washington 25, D. C., UoS. Ao Dear Mr o Marshall , Enclosed I am sending our answers to some questions you have asked about our Forecast of Income Statementso The other questions you have asked I hope should be covered by the verbal explanations givvn to Mr . Finne o Yours faithfully Halvard Roald FORM N o. 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (8- 55) OUTGOIN G WIBB CLASS OF SERVICE: Letter Telegram DATE: APRIL 6, 1956 TO: CARS'.IEN NIEL.SEN UTGJELD OSLO COUNTRY ( NORWAY ) .EXT: Cable No . FOR VOGT POSSIBLY HELPFUL FOR YOU 'IO KNOW '.IECHNICAL DISCUSfilONS WOULD INCLUDE 1) REGULATION 2) PROJECT DESCRIP'n:ON 3) COST ES'.IIMA'.lES AND SCHEDULE OF EXPENm '!URE 4) CONS'lRUC'.IrON SCEEDULES 5) RATE CALCULATIONS AND AVl<'....RAGE RA'.IE OF RE'roRN 6) ADDITIONAL SENIOR ENGINEERS 7) CONTRACTOR CON'lRACTS 8) RENEWAL RESERVES 9) PROJEC'1ED CASH FLOW AND PROFORMA BALANCE SHEE'.IS 10) AN'ITCIPA '1ED TOKKE ENERGY COO'.IS 11) 'IERMS COUNTIES PAR'n:CIPA'lION 12) IN'.IERNA'ITONAL BIDDING AND FOREIGN EXCHANGE REQUIREMEN'.IS MARSHALL I N'.IBAFRAD Signed: AUTHORIZED BY: ~ For Use bv Archives Division NAME: Dr. E. Wayne Re rt DEPT: Technical Opera ~ Checked for Dispatch SIGNATURE: ORIGINAL (File Copy) (IMPORTANT: See over for guide in preparing Outgoing Wire) GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minumum charge for 22 words including address and text. Full Rate Full rate messages are normally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. IBF Govt. This is a preferential rate extended to the Bank by some of its member counrries. Messages are sent ar full rate speed and at about half the cost. This rate normally should be used whenever available. It is at present available for the following countnes: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras * Syria Burma E cuador Jordan Uruguay Chile El Salvador * Lebanon Venezuela * China * Ethiopia Nicaragua Yugoslavia Colombia * France Pakistan Costa Rica Greece Panama • In these countries the letter telegram rate is lower than IBF government rate and should be used for messages when immediate transmission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having a code with them. Day Letter Day letters are delivered during the day of transmission and should be used only for messages in the United States and to Mexico and Canada. There is a minimum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only last name of addressee and cable address whenever possible. The Bank cable address "INTBAFRAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination must always be added. (No charge is made for the name of a country). 3. Text Messages to Bank Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 2008. Type text in capital letters and double space between lines. The text should be edited to elirrinare unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma," "Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. A1rina1J, Newyork, enduse. 4. Signature Type in last name of sender. Use INTBAFRAD as part of the signature only when addressee does not know the address of the sender. 5. Authorization Type in name and department of staff member authorizing· message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 210 for despatch. The cable service is open from 9:00 a.m. to S:45 p.m. on working days. Special arrangements should be made for the despatch of of cables outside of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. r :J • N FO RM NO . 27 ( 1 1. 53 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB ; NIGHT LETTER I!] CODE D FULL RA1E D TELETYPE D TEXT: toua / B For Use by Archives Division AU1HORIZED BY : Checked for Dispa tch FILE COPY c ,.. l·'d IO ~ ~ ~dV l I', ft I I (j .,.. ~------~------~------~ ,,.. FoRM No. 27 ~,- ( 1 1- 53 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ~ OUTGOING WIB B DATE: .lJ'.UL 5, 19S6 CLASS OF SERVICE DESIRED NI GHT LETTER [iJ CODE D FULL RA1E D TELETYPE D TEXT: ( ,. PI.EASE DISCUSS FOLLOWI!ll W1'fH ~RUD COU>If TOP PJGE TWINTY-OD DlW'T STORTilll PROPOSl'l'ION SmGESTS THAT COlJift'I OOUllCllS ·(FILIFSTHI!mERE) WILL JOT HAVE T,ADB FINAL ACTION BEPORE SIGNOO OF LOAN STOP D' THIS IS CORBECT FIRST HOW DOES THIS AFFECT LmAL OPINION THAT COUNTIES 4S SURUCES OE VU.ID AND BilmOO SECORD WAT TYPE 01 .ASSURANCES WOULD WE GET STOP PLEASE SEND 00 FULL TEIT OF ROYAL RESOLtlrIOll BROCBES For Use b y Ar chi ves Division I AUTIIORIZED BY: Checked for Di spatch NAME .l~ BllOClli'S DEPT. onxo1 01 !BE GENERAL COlJISIL COi Mr . ling FILE COPY -'Bl'Odhe•/JIIJ> Nr • D.iau. c- - .. ~·:i Pilea April 5, 19S6 • • in lorwa.z I spok to Mr~ IC nney today. Be said the ew York bond •rket was still in poor hape. Gov rnaent · were yieldin 3.10 and a AAA 1asu bad been mad at 3.45. He till hoped they could stick to 4t, 0 99, but he re rded thia as the Y ry iniauni. They still aill to stick to the original schecbile. cc, Messrs. bricht/De.lawae 1n : • prU $, n t t ld• t t. al • • ' i ... FORM NO. 26 ( 1. 50) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INCOMING WIBB DATE OF WIRE: APRIL 4, 1956 1822 ROUTING TO: INTERNATIONAL B,\NK FOR RECONSTRUCTI01' ACTION COPY TO MR BROCHES AND DEVELOPMENT INFORMATION COPY TO FROM: HELSINKI Joecoded By TEXT: V NINE BROCHES PRIMO NORWAY PRESUME YOUR CABLE EICIIT SUPERSEDES PARAGRAPH ONE YOUR LETTER TWO. NO OBJECTION EFF'ECTIVE DATE SECUNDO PRESENT PLANS REMAIN HELSINKI THIS WEEK ARRIVE OSLO HOTEL CONTIENENTAL SUNDAY MORSEY ; (!_ NOTIFICATION BEING MADE I I I / I DUPLICATE • FORM NO . 27 ( 11- 53) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OUTGOING WIBB uJU( DATE: APRIL 4, 1956 CLASS OF SERVICE DESIRED TO: VIRGINIA 1 !ORSEY NIGHT LETTER \xx ! CODE D / ' CARE OF ASP S UOMEN PANKKI [//I HELSINKI (FINLAND) FULL RA'IE D TELETYPE D TEXT: TEN FOR YOUR Il\lFORMATION STEVENSON IS ASKING NORWEGIANS TO INCLUDE IN ROYAL RESOLUTION SPECIFIC AUTHORIZATION TO EXECUTE QUOTE ANY LOAN PURCHASE AND OI'HER AGREEMENT UNQUO'I'E Stop TOLD HIM WE HAD NO OBJECTION BROCHES For Use by Archives Division AUTIIORIZED BY: ~11 Checked for Dispatch 11 NAME A. Broches ~ j. / DEPT. Office of th~eneral Counsel FILE COPY >RM No. 57 (5. 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT OFFICE MEMORANDUM TO: Files DATE: April 4, 1956 FROM: J. Trempont;, SUBJECT: Working Party Meeting on Norway In view of the forthcoming arrival of formally invited negotiators from Norway for the proposed Tokke loan, the Working Party met on .April 4 to consider the questions listed in the memorandum of .April 2. A. Disbursement of the proceeds of the loan 1. The Bank should reserve the right to finance imports in any event as expressed now in Section 3.01, so that eventually we could use I.funds from the 18 percent capital. 2. To be kept informed of possible opportunities to finance imports, we should ask for a quarterly lump forec~st by NVE of expected foreign purchases, together with a statement of foreign purchases actu ally made in the last quarter. 3. Draft withdrawal applications will be prepared in appropriate revised form before the arrival of Mr. Eriksen by the Treasurer's Depart ment. 4. The Treasurer's Department will inform the Working Party before next Monday of what currencies the Bank has which it should like to disburse under this loan for non-specific purposes. B. Counterpart of public bond issue money 5. The maximum the Bank wants would be expenditure at a rate not greater than 30 percent of total expenditure on the project until the total expenditure reaches N.kr. 400 million. 6. The minimum the Bank wants would be an oral statement by Mr. Brinch or, preferably, a letter from the Norwegian Government stating that they would not use these funds right away. 7. The Legal Department will discuss with Harriman Ripley1 s whether it would be necessary to mention a letter of intention in the Prospect~. C. Proceeds of bond issues to counties 8. The Bank has no particular views on the timing of their use. We should inquire what their intentions are in this respect from the Norwegians. .. - 2 - D. Letter from NVE 9. The Bank shall require from NVE,. as the expression of a moral obligation, a letter similar to the one sent in the case of the recent loan to Ceylon regarding use of additional senior engineers and contrac tors. A draft of such letter will be prepared by the Technical Operations Department and cleared with the Legal Department. E. Operations of NVE 10. The Norwegians are expected to object to the inclusion of NVE's operations as a whole in Section 5.0l(c). The Bank should keep to this point. F. Procurement 11. The form ... requirements about procurement subject to decision on memorandum to be submitted to the Management raises a problem, Section 3.01 being a standard form. 12. This is usually done by oral notification. G. Grace period 13. The Ban1c usually grants a grace period until the first unit comes into operation. This is too long in the case of Tokke. Four or five years should be the maximum. The Working Party is of the opinion that it does not matter too much. H. Closing date 14. June 30, 1959 was agreed. I. Premiums on repayment 15. The current schedule will be provided by the Treasurer's Department. cc: Messrs. Cope/Umbricht King Delaume/Morsey Marshall/Jago Ramm/Verheyen JTrempont/vhn • FORM No. 27 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEYE LOPMENT (a. 55 l OUTGOING WIBB CLASS OF SERVICE: NI GHT IErTER DATE: April 3, 1956 TO: VIRGINIA MORSEY CARE OF ASP SUOMEN PANKKI HEISINKI COUNTRY ( FINLAND ) TEXT: Cable No. NUMBER EIGHT STEVENSON HAS BEEN INFORMED THAT NORWEGIANS PLAN TO SUBMIT ROYAL RESOIDTION TO CROWN PRINCE ON FRIDAY AND THAT TEXT WILL SAY THAT OUR :WAN WILL BE DEEMED TO HAVE BEEN MADE ON EFFECTIVE DATE LOAN AGREEMENT STOP IF YOU STILL PREFER SIGNATURE DATE SUGGEST YOU GET IN TOUCH WITH NORWEGIANS STOP WE HAVE NO PREFERENCE ONE WAY OR THE OTHER AND STEVENSON PREFERS EFFECTIVE DATE STOP HAVE CONFIRMED TO STEVENSON THAT WE ABE SATISFIED THAT ROYAL RESOLUTION AS DRAFTED IS SUFFICIENT IEGAL BASIS FOR OUR :WAN STOP IF YOU HAVE ANY COMMENTS PIEASE CABIE BROCHES Signed: AUTHORIZED BY: NAME: A• Broches jf . , For Use bv Archives Division DEPT: Office of the Gjineral Counsel Checked for Dispatch SIGNATURE: -- ABroches: ea ORIGINAL (File Copy) (IMPORT ANT: See over for guide in ~reparing Outgoirui Wire) GUIDE FOR PREPARING OUTGOING WIRES 1. Class of Service Type in class of service desired. Each class is described as follows: Letter Telegram Letter telegrams are normally delivered the morning after day of despatch. The cost is half the cost of full rate messages with a minumum charge for 22 words including address and text. Full Rate Full rate messages are normally transmitted and delivered immediately. There is a minimum charge for 5 words, including address and text. IBF Govt. This is a preferential rate extended to the Bank by some of its member countries. Messages are sent at full rate speed and at about half the cost. This rate normally should be used whenever available. It is at present available for the following countries: Bolivia Cuba Guatemala • Peru Brazil Dominican Republic Honduras • Syria Burma Ecuador Jordan Uruguay Chile El Salvador • Lebanon Venezuela • China • Ethiopia Nicaragua Yugoslavia Colombia • France Pakistan Costa Rica Greece Panama • In these countries the letter telegram rate is lower than IBF government rate and should be used for messages when immediate transmission is not required. Code Code messages are transmitted at full rate (or IBF Govt.) speed and cost. This rate should be used only for confidential messages to staff members having a code with them. Day Letter Day letters are delivered during the day of transmission and should be used only for messages in the United States and to Mexico and Canada. There is a minimum charge for 50 words in text. Teletype To be used only for messages to the New York Office, United Nations, and certain commercial firms. For information, call Cable Post (Ext. 2008). 2. Address Use only last name of addressee a-nd cable address whenever possible. The Bank cable address "INTBAFRAD" is registered in Paris, Beirut, Rio de Janeiro, Bogota, and Guatemala City. The name of the country of destination must always be added. (No charge is made for the name of a country). 3. Text Messages to Bank Missions and to Resident Representatives should be numbered. These numbers may be obtained by calling Ext. 2008. Type text in capital letters and double space between lines. The text should be edited to elitrinate unnecessary words and unnecessary punctuation. If punctuation is needed, spell out the words "Comma," "Stop," etc. Use common abbreviations whenever possible, i.e. reourlet, reurfive, etc. Write as one word hyphenated wo,rds, hyphenated names, and certain two-word groups, e.g. Airmali, Newyork, enduse. 4. Signature Type in last name of sender. Use INTBAFRAD as part of the signature only when addressee does not know the address of the sender. 5. Authorization Type in name and department of staff member authorizing message and have authorizing staff member sign the original (pink copy). A list of authorized signatures is kept in the cable office. Forward messages in triplicate in a cable envelope to Room 210 for despatch. The cable service is open from 9:00 a.m. to 5:45 p.m. on working days. Special arrangements should be made for tfie despatch of of cables outside of these hours. ANY QUESTIONS REGARDING INCOMING AND OUTGOING WIRES SHOULD BE REFERRED TO THE CABLE POST, EXT. 2008. , -· - ' I ""'0 ( (. The orkin rty pril 2, 1956 B. B. Kin Norway e otiators have been invited fr Norw y for th propo Tokke loan. • ikeen or th Bank of orw: y is exp ct d to .rriv on • out Monday., April 9; he will be primarily concerned with tters arr cting disbursement. e ect Dr . o of th N on abou.t .April 12th and • Srinch on April 16th. I would llk to hav Working arty e ting on ednesday., April 4th o consider an ber of questions which will coae up in th n oti tions and which I ve listed below. If any er of th or · n Part y thinks of any other subject w should disc a., pl s call me. A. Disbursement e know littl bout th expect purchases fort proj ct and 7 know little or n th orw com • Q. 1. Should we r eex-ve th r1 t to financ imports in n7 nt? Q. 2. How should we k pinto ed of possible opportuni.ti s to financ imports? (Suggestion, six-monthly stat· ent by VE of xp cted pure ses) . Q. ). Are draft ithdrawal appll tion ready in appropriat revi ed font? Q. 4. t curr ncies do w v which w would lik to disbur6e under thi loan? • Counterpart I t is .fairly certain that t orw gi ns will obj ct to th phrasing of eection 3.oJ s to timin and a OWlt of disbars the Tok.lte account. Q. , . hat iB the maximum w wo l d ant? (Sugg stion: :xp ditur at a rate not eater than 30 of total expenditur on the proj ct until th total xpcndi tur r c es r . 400 million) . Q. 6. ti th minim w would nt? Q. 1• ould it b necessary to tion a lett er of intention in tne prospectus? • 8. 0 w h • n:r v1 t tiain of theil' se? D. Letter trClll - Q.. 9. • r equir fl"au ·, or ot overn• of en ne s, c tr ctora. etc. ? • ct tot incl eion of VE•s op r tiona as Q.. 10. t hold our atti t e ? r. ent • 11. at requir llbout procur•en ? d ci sion on s i tt to • 12 . In t :fo s ould t e b ? o. ace Period ~. 13. hould t 1 be r or .fiv y rs, d how c doe it ter? • 14. t sho d t i s b (S ~ st1ons June 30, 1959} • t i n t h curr nt ch le? cc, Messr • .. FORM No. 61 (3.54) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CONFIDENTIAL 1 CLASSIF • N~-~ MAR 2 0 201 STAFF LOAN COMMITTEE CHI MEMORANDUM TO THE srm LOAN COMMITTEE Nor1-151 A copy of the Technical Report (I' . o. 110) on the Tokke Hydroelectric Project is attached for information. Comments , if any, should be sent, to reach Mr. Marshall (ext. 3770) by the close of business on ,April 6. Herbert G. A. Woolley secretary staff Loan Committee. April 2, 1956