Public Disclosure Authorized International Bank for Reconstruction and Development Public Disclosure Authorized SUMMARY PROCEEDINGS

Public Disclosure Authorized 1960 ANNUAL MEETING OF THE BOARD OF GOVERNORS

September 26 - 30, 1960 Washington, D. c. Public Disclosure Authorized INTRODUCTORY NOTE

THE 1960 ANNUAL MEETING of the Board of Governors of the International Bank for Reconstruction and Development was held in Washington, D. c., September 26-30 (inclusive) under the Chairmanship of The Right Honorable Harold Holt, Treasurer of the Commonwealth of Australia. The Annual Meeting was held jointly with the International Monetary Fund.

There was, in addition, the Annual Meeting of the Inter­ national Finance Corporation, the proceedings of which have been issued separately.

M. M. MENDELS Secretary INTERNA TIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

WASHINGTON, D. C. Octoher 31. 1960 1960 ANNUAL MEETING FINAL SCHEDULE

Saturday SEPTEMBER 24 4:00 p.m.-Procedures Committees

Monday SEPTEMBER 26 10:00 a.m.-FuND-BANK BOARDs-Address by the Chairman and Responses -Fund-Bank Procedures Committee Report I -Annual Address, Managing Director of Fund

Tuesday SEPTEMBER 27 10:00 a.m.-BANK BOARD -Fund-Bank Procedures Committee Report II -Annual Report Address-W.A.B. Iliff, Vice President -Bank Annual Discussion 3:00 p.m.-BANK BOARD -Bank Annual Discussion (continued)

Wednesday SEPTEMBER 28 10:00 a.m.-FuND BOARD -Fund-Bank Procedures Committee Report III -Fund Annual Discussion 3:00 p.m.-FuND BOARD -Fund Annual Discussion (continued)

Thursday SEPTEMBER 29 10:00 a.m.-IFC BOARD -IFC Procedures Committee Report -Annual Address, President of IFC -IFC Annual Discussion 5:00 p.m.-Fund-Bank Procedures Committee

Friday SEPTEMBER 30 9:45 a.m.-FuND-BANK BOARDs-Election of Executive Directors-Fund -Election of Executive Directors-Bank -Fund-Bank Procedures Committee Report IV -Comments by Heads of Organizations -Conclusion

ii CONTENTS

Page MESSAGE FROM DWIGHT D. EISENHOWER, PRESIDENT OF THE UNITED STATES...... 1 OPENING ADDRESS BY THE CHAIRMAN, THE RIGHT HONORABLE HAROLD HOLT, TREASURER OF THE COMMONWEALTH OF AUSTRALIA ...... ANNUAL REPORT ADDRESS BY W.A.B. ILIFF, VICE PRESIDENT OF THE BANK...... 8 COMMENTS OF W.A.B. ILIFF, VICE PRESIDENT OF THE BANK ON DISCUSSION OF ANNUAL REPORT...... 13 CLOSING ADDRESS BY THE CHAIRMAN...... 14 COMMITTEE REPORTS: FUND-BANK PROCEDURES COMMITTEE REPORT I...... 16 Provisional Schedule...... 18 Provisions Relating to the Conduct of the Meetings...... 19 Agenda...... 20 Fund-Bank Procedures Committee Report II...... 21

Fund-Bank Procedures Committee Report IV 1. • • • • • • • . • • • • • • • • • • • . • • • • • • • • . . • • .• 23 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS BETWEEN 1959 AND 1960 ANNUAL MEETINGS...... 24 NO. 137 ..... Amendment of Section 14(e) of By-Laws of Bank...... 24 NO. 138 ..... Increase in Subscription of Australia to Capital Stock of Bank...... 24 NO. 139 ..... Adjustment of Capital Subscription of Republic of China...... 25 NO. 140 ..... Increase in Subscription of Colombia to Capital Stock of Bank...... 26 NO. 141 ..... Increase in Subscription of Chile to Capital Stock of Bank...... 26 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS AT 1960 ANNUAL MEETING...... 27 NO. 142 ..... 1960 Election of Executive Directors...... 27 NO. 143 ..... Financial Statements, Auditors' Report and Budget...... 27 NO. 144 ..... Membership of Nepal in the Bank...... 27 NO. 145 ..... Membership of Nigeria in the Bank...... 29 NO. 146 ..... Increase in Subscription of Yugoslavia to Capital Stock of Bank...... 30 RULES FOR THE CONDUCT OF THE EIGHTH REGULAR ELECTION OF EXECUTIVE DIRECTORS. .. 31 EXECUTIVE DIRECTORS ELECTED AT EIGHTH REGULAR ELECTION...... 34 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING...... 36 OBSERVERS AT 1960 ANNUAL MEETING...... 41 OFFICERS OF THE BOARD OF GOVERNORS AND PROCEDURES COMMITTEE FOR 1960-61...... 42

1 Report III related to business of the Fund.

111

MESSAGE FROM DWIGHT D. EISENHOWER, THE PRESIDENT OF THE UNITED STATES

N A NUMBER of occasions I have had the pleas­ comc into operation shortly. This Asso~iation will O ure of personally welcoming to Washington the provide new and enlarged means of dealing with Governors of the International Monetary Fund and some of the development problems that could not the International Bank for Reconstruction and De­ otherwise be handled. My reference also included velopment. I regret that I am unable to attend their the International Finance Corporation which has opening meeting today but I wish to send them my done and will continue to do a most important work warm greetings. in assisting the investment of private capital in pro­ The Fund and the Bank have achieved much for ductive enterprise. the benefit of mankind. These international financial institutions have The Fund has made a strong contribution to finan­ steadfastly and effectively pursued the objectives for cial stability and sound practices in the field of which they were created. The people of the world foreign exchange policy. Its resources have been look to them for continuing leadership in the co:ning used to advance worthwhile programs. The recent years. increase in its resources should enable the Fund to I am sure that the discussions of the Governors at broaden and intensify its work. this Meeting will provide for further progress based On Thursday, in my statement to the United upon the good relations of the member countries Nations I spoke of the expanding role the Bank will with each other and upon the great institutions which play in the developing countries of the world. My embody so much of our hope for international reference to the World Bank, of course, included the cooperation in financial affairs. International Development Association which will

OPENING ADDRESS BY THE CHAIRMAN, THE RIGHT HONORABLE HAROLD HOLT, TREASURER OF THE COMMONWEALTH OF AUSTRALIA

y FIRST DUTY AS CHAIRMAN, and it is a most of this country have justly earned their reputation for M agreeable one, is to welcome Governors, Dele­ hospitality and friendliness. I would like to say on gates and distinguished visitors to this Meeting. It is your behalf to President Eisenhower, and I think it also my privilege to express our thanks to o~r host particularly fitting to do so on the last o~casion on country, the United States of America, and I do so which we shall have the opportunity to speak to him on behalf of all the visiting Governors and Delegates. in his official capacity from our Annual Meetings, Most of us hold pleasant recollections of previous how much we have appreciated the personal interest meetings of this kind in the United States. Those of he has shown in the work of these institutions. In you here for the first time will learn that the people welcoming us last year, he advanced the concept of an International Development Association subse­ is an admonition that I feel I must heed. I have quently formally proposed to us by his Secretary of attended thirteen of our meetings in succession; I the Treasury, Mr. Robert Anderson. have always regarded them as most important events in the life of our institutions, and have always looked It is one encouraging demonstration of progress forward with keen pleasure to the opportunity which in international cooperation that this imaginative and they afford of renewing old friendships and making constructive proposal should have been so readily new ones. and unanimously adopted in principle at last year's The Bank has had a busy and interesting year, as you meetings. I am very glad to announce this morning will hear from my colleague, Mr. Iliff. So has the that this new international agency for financing eco­ International Finance Corporation, as you will hear from my colleague, Mr. Garner. In these times, the nomic growth in the less developed countries has now day to day attention of the world is claimed by many formally come into being. This is an event of the spectacular and dramatic events, but I am sure you first magnitude and I shall have more to say about share my feeling that quiet and unremitting effort to the importance of the new institution later in the speed economic development has become more im­ course of this address. We hope that IDA will get off portant than ever before. These meetings are a to a flying start, since its affairs will be administered symbol and a part of that effort and you have my best and most earnest wishes for their success. by the Bank without the necessity of developing a This is the first meeting Mr. Black has missed in new organization. I trust that those governments eleven years of distinguished service as President of which have not yet completed their steps to mem­ the International Bank. We know that only his bership in IDA will soon do so. illness could have kept him away. We are all glad We are all happy to be present in Washington at to learn that he is well on the way to recovery and this Annual Meeting of the Fund, the Bank and the look forward to his early return to the Bank where International Finance Corporation, meeting together his experience and great skill have proved so valu­ after a year of exceptionally successful operation by able. Many of you will have read of the unique each of these institutions. What has already been recognition accorded to him during the year when achieved by the existing institutions is, we gladly over a period of a few weeks honorary Doctorates acknowledge, largely due to the men who lead them. were conferred on him by three of America's leading It is fitting that we should record our warm approval universities. We congratulate him again on these of their work. distinctions which recognize not only his great per­ First, let me pay a tribute to Per J acobsson, so sonal abilities but reflect also, I believe, the growing tireless in pursuing the high purposes of the Inter­ place in public esteem of the organization he national Monetary Fund. During the past year, administers. notable progress was made toward a freer system of Deprived of his presence, we are fortunate that he international payments and in this, as well as in the gives us a very able deputy in Mr. Iliff. We have a many other things accomplished by the Fund or with special debt to Mr. Iliff for the patience, skill and its help, his far-sighted leadership and wise guidance tact he has shown in bringing to their recent success­ have played a foremost part. ful conclusion the important negotiations on the Eugene Black is not able to be present today. Indus Waters scheme. That is a matter of regret for us all. He has, We also pay tribute to Mr. Garner, who has however, sent us a message: devoted so much of his time and energy to the task I shall be grateful if you will convey to the Members of establishing the International Finance Corporation of the Boards of Governors my profound regret that as a useful instrument of international industrial I cannot be with them at the Annual Meetings this year. Only the strictest medical orders have kept me development. away, but my doctors tell me that to rest now is the Thanks to all these men, and to those, too many best way to assure my early return to work and this to name, who have worked so faithfully with them,

2 the record of achievement of these three organiza­ annual discussions here is even less likely to produce tions stands at the present time higher than ever the kind of sensationalism which serves as good before. On your behalf, I gladly record our thanks newspaper copy. Yet what we do here makes a to the Management and Staff of all three. growing contribution to the welfare of mankind. As I have just said-and you will concur in the Here are three international monetary and financial judgment-their record is high. I am sure we should institutions linked with the United Nations Organiza­ all like that record to be much more widely known tion and directed to world prosperity and its peace­ to the public at large. Throughout the world people ful progress. We include 68 governments in our find themselves harassed by a daily newspaper diet membership, comprising almost all the nations of the of the world's troubles. It would bring some comfort Free World. Their work is promoting economic to many to learn something of the story of construc­ growth, particularly in the less developed countries. tive cooperation demonstrated in the history of these I repeat, it is unfortunate that more is not known organizations. Sensation and strife take priority in of the work of all the international organizations I the press over the achievements, however fruitful, have mentioned. The objects of social justice and a of international teamwork. The world's peoples prospering world at peace can be promoted more would welcome the more favorable outlook which a effectively by their constructive work than by any better balanced reporting of events would supply. other means I know. When it comes to the reporting of the work of inter­ We have before us the reports of the three organi­ national institutions the drama of the United Nations zations and, no doubt, as the spokesman for each meetings commands the headlines. There is to be addresses us in turn, we shall be told more of their found a world stage on which vivid personalities play highlights. It is not my wish to go over the same out their parts voicing the frequently conflicting views ground, but as we are about to bring into operation of the major powers they represent. Great political a new institution to provide finance for the less issues are known to be involved. Tensions are cre­ developed members I would like to say something ated-challenges truculently thrown down. It is, about the general problem of development. The task perhaps, not surprising that with the distraction of all of raising standards in the underdeveloped areas of this clash and clamor, much constructive interna­ the world ranks amongst the most important ques­ tional cooperation tends to pass unnoticed except by tions of our day. Two central themes of one of the those directly involved or close to the scene. And organizations to which I have already referred, the yet. increasingly, this growing international coopera­ International Labor Organization, are the conviction tion is surmounting national boundaries and even that there can be no enduring peace without social ideological differences. justice, and the proposition that poverty anywhere A little study and understanding disclose that, in is a threat to prosperity everywhere. No more chal­ truth, tremendous progress has been made in inter­ lenging task faces the world's statesmen today than national cooperation on less spectacular levels, par­ satisfying basic human needs in countries still ticularly since the end of World War II. Let me afflicted by hunger, ignorance and disease. Mankind mention only a few. The International Labor Organ­ has never been free from these afflictions, but what ization, the World Health Organization, the Inter­ distinguishes our generation from those which pre­ national Civil Aviation Organization, and the three ceded it is the almost universal recognition that institutions represented here all provide encouraging pestilence, poverty, illiteracy and malnutrition, ac­ examples. Others will readily occur to you. Inter­ cepted in the past by many as inevitable and with national team work on this scale would have seemed fatalistic resignation, can now be overcome. impossible twenty years ago. The relatively tranquil There are today hundreds of millions of the atmosphere of goodwill which characterizes our world's submerged and afflicted people sufficiently

3 informed of what is going on elsewhere to be rest­ develop national resources, but many countries lack lessly conscious that others enjoy a richer, healthier, the means of development. Apart from the rudiments happier life. They have discovered that such a life of commerce, the only apparatus available to some is attainable given the effective application of skill, for their purpose is the apparatus of the State and energy and enterprise to resources within a modern there are cases in which this remains a rather primi­ community with efficient political, economic and tive apparatus. social institutions. It is not difficult in the kind of I range myself with those who reject the proposi­ world we live in for some national leader to harness tion that man's Utopia will be achieved by doctrinaire these aspirations in the drive toward his own political socialist principles and forms of government. It is objectives inside his own country. In the atmosphere my firm belief that only in a community life ordered of our times, the political objectives can sometimes by democratic institutions and functioning under a be reached with dramatic speed. But the major eco­ system of free enterprise can basic freedoms for the nomic tasks which follow in the wake of political individual and higher standards of living be assured. success can prove much more difficult. Political inde­ But this is not the occasion for me to debate these pendence possesses little value and can be almost issues. They have been argued widely and without meaningless unless it rests on the stable base of a pause throughout this century. They still divide viable economy. much of the world into opposing political camps. It is difficult enough for the more mature indus­ However, let us be realist enough to recognize that trialized countries to sustain the conditions for the attainment of improved standards may only be healthy growth. How much more so for those secured by some of the underdeveloped countries whose economic organization is still in its infancy. after they have first nursed industry through its Fortunately, the world's conscience is today more infancy by processes of state ownership and control. sensitive on these matters. Practical statesmen We cannot afford to allow ourselves to become too around the world also recognize that national self­ intolerant or doctrinaire in these matters. interest no less than humanitarianism dictates a What is vital is the direction in which policies are program of assistance to weaker nations. Increas­ moving, the spirit which guides them and their long­ ingly, the organizations meeting here will find them­ term goals. The economic and social systems of the selves involved in efforts to meet these problems. industrialized democracies are the fruits of genera­ Assistance may take the form of finance from the tions of experience and evolution. The newly Bank, the Finance Corporation and the International emerging countries are, understandably, impatient to Development Association, or it may be provided attain the same standards, but these standards cannot through the actions of the Fund by way of assistance be attained over night. Solid groundwork must be in balance of payments difficulties, by encouraging laid. There is need for an environment encouraging more liberal policies and in these, and other ways, to investment and with adequate incentives for promoting international trade. But perhaps the most growth. Unless these requirements are clearly recog­ important contribution will be the guidance these nized the resulting frustrations can produce political institutions can give toward the creation of the basic frictions and even become explosive. It is important structures and application of the sound financial we should all understand where we are going and policies necessary for economic viability. Guidance why things are happening the way they are. Given of this kind will call for much understanding and this knowledge, I feel sure that many of the emerging skill. It will call for diplomacy. It will also require countries will come to rely increasingly upon free a large measure of sympathetic understanding on institutions and the vigorous initiative and skill of the part of member governments. free enterprise as they succeed in creating the condi­ There is a general awareness of the need to tions for healthy growth.

4 There is a variety of ways, of course, in which the worthiness of countries seeking loans from the Bank economies of the underdeveloped countries can be has had to be a prime consideration. strengthened. The provision of capital, while impor­ For some time it has been recognized that there is tant, is only one of them, and unlikely to be forth­ need for an additional international organization to coming on the scale desired. Technical assistance is provide financial assistance to underdeveloped coun­ fundamental. The International Bank has been tries on terms more flexible than those that must active in this field and it is one of the purposes of the apply to International Bank loans. At last year's Bank to show how economic development can be Annual Meeting, we endorsed unanimously the achieved as well as to help in finding ways and means United States proposal that an International Devel­ of financing that development. The Bank, with its opment Association be established for this purpose. comprehensive economic surveys and its frequent Since then, no time has been lost and, during the technical missions has been able to smooth the path year, our Executive Directors, following consultation for many borrowers and to ensure that development with their Governments, produced an agreed set of programs and projects are soundly based. In a very Articles of Agreement for the Association. All mem­ real, if comparatively unpublicized way, the Fund ber Governments of the International Bank were has also contributed greatly in this field through the invited to join the Association, which, happily, has regular consultations with member countries and in now come into being. Speaking as an Australian, I some cases by the provision of expert services. am pleased to be able to say that all members of the The United Nations also, through its agencies, is Australian Parliament, regardless of their political giving considerable technical assistance and much is affiliations, supported Australia's membership of the also being done through bilateral arrangements, such Association, and we were amongst the first countries as the Colombo Plan. But, despite all that has been to complete all the formal requirements for mem­ and is being done, we are really only at the begin­ bership. ning of what is truly an enormous task. Other new arrivals on the international scene are To be fruitful, technical assistance must be accom­ the Inter-American Development Bank and the De­ panied by capital and the world is very short of velopment Assistance Group. The President of the Inter-American Development Bank, Senor Felipe capital in relation to the demand for it. Among Herrera, a former Executive Director of the Fund, international institutions, the main source of develop­ is personally known to many of you and admired ment finance is, of course, the International Bank. for his conspicuous ability. We shall watch with The International Bank was established to provide interest the first operations of the Inter-American finance for postwar reconstruction and for the devel­ Development Bank in the near future. opment of productive facilities and resources in the The purpose of the Development Assistance Group less developed countries. Given the limits under is to increase and to coordinate the development which it has operated, its contribution to the eco­ assistance activities of its members, who are, in the nomic development of its member countries has been main, the larger creditor nations of the world. Inter­ impressive. Excluding the early postwar reconstruc­ national economic teamwork has much to gain from tion loans, amounting to about $500 million, the the establishment of this new machinery. Bank has lent nearly $5,000 million for economic These new international efforts to increase capital development and the greater part of this has gone to aid and to direct it where it is most needed show the underdeveloped regions of the world. that a great task of our age is being recognized in The funds available to the International Bank are, practical action. There are other ways in which the however, limited. Of necessity, too, the Bank's loans more highly developed countries can assist the new have to be made on commercial terms and the credit- and underdeveloped countries. Most of the less

5 developed countries are exporters of a few primary expected of industrial countries should be extended products. A relatively minor movement in their terms as widely as possible so that all may benefit. Unless of trade can have the effect of cancelling out the this is done, the much desired expansion of liberal value of all the developmental aid they receive by way and non-discriminatory trade and payments arrange­ of grants or loans from the industrialized countries. ments throughout the world will possibly stop short, Yet, one of the striking features of international perhaps a long way short, of our more hopeful trade in recent years has been the relatively depressed expectations. state of trade in primary products as compared with It cannot be gainsaid, of course, that the past year the buoyancy of trade in industrial products. In part, has seen notable progress toward a more liberal this state of affairs is a consequence of prevailing regime in the sphere of trade and payments. Many economic influences. But the fact is that inter­ member countries have made decisive moves away national trade in primary products and minerals has from restrictions on international transactions. In been peculiarly subject in recent years to barriers many cases, the restrictions that remain are much and hindrances in the industrial countries that have less discriminatory, particularly against the dollar. done a lot of harm to the economic stability of the Nevertheless, the removal of the discrimination less developed areas. I should, therefore, like to against North America, welcome in itself, has not direct the attention of all Governors to the views on always been accompanied by equal treatment for this matter which have been put forward in the Fund other countries. Report. The responsibilities of the more highly In the transformation of the world trade and pay­ developed countries of the Free World cannot be ments situation, the United States has played a fore­ discharged by the provision, however useful, of some most and, indeed, most statesmanlike part. There is capital for financing development elsewhere. It is nothing in history to match the generosity and scope essential that the more developed countries, having of American assistance in these postwar years. now achieved a satisfactory balance of payments United States expenditures, whether by way of aid, situation themselves, should do everything possible development loans, private investment or for other to provide greater opportunities for an expansion of purposes, have contributed significantly to the eco­ world trade, not only in industrial, but also in pri­ nomic and financial strength of the non-dollar world. mary products. This is a consideration which I In general, United States economic and financial particularly hope those negotiating regional arrange­ policies also have served that end. ments in Europe will bear in mind. The United States has, in recent years, been The problem fT:-les further than the plight of the encountering some balance of payments difficulties. less developed. It affects countries such as my own However, by comparison with other countries, it still which, after liberalizing their policies on imports, has immense reserves of gold and the tendency in should be able to look for reasonable access to the some quarters to speak of the "weakness of the markets of industrialized countries for their primary dollar" is certainly misplaced. The United States has products. Such countries as these may be prepared shown a commendable steadiness in the face of the to face up to an initial loss of reserves as a conse­ deficits that have appeared in its balance of pay­ quence of the removal of import restrictions. Aus­ ments. This has been demonstrated notably in the tralia is at present in that phase; but unless the major maintenance of her foreign aid programs. industrial countries reduce their restrictions on the This sense of international responsibility is indeed exports of primary producing countries the liberaliza­ an example to follow, especially by the new creditor tion of international trade may become lopsided, and, countries whose positions have been so reinforced in consequence, difficult to maintain. Here we have by the farsighted policies of the United States. The another reason why the reductions in trade barriers increasing awareness on the part of these countries

6 of the role they shoJld play in helping to provide Bank can be justly proud of the way in which this capital for development elsewhere is most encourag­ matter was brought to a successful conclusion. ing, and a happy augury for the future. During our meetings this week we shall also be The redistribution of the world's currency reserves dealing with the affairs of the International Finance which has been a consequence of the U.S. balance of Corporation. Its operations have shown a sharp up­ payments deficits has undoubtedly been a healthy ward turn in the last fiscal year and we believe this to development. It has played an indispensable part in be a welcome indication of enlarged activities ahead. the widespread dismantling of restrictions against In the year before us, we can be sure, the Bank dollar imports around the world. That, in turn, has and its affiliates, the Corporation and the IDA, will contributed to the recent revival of United States be kept very busy. The demands made on them may exports. At the present time there is probably a be expected to increase; and, of course, the IDA better balance in the relative competitive positions will have to be set up as a going concern. of the dollar and non-dollar exporting countries than The Fund, we hope, can look forward to another at any other time during the past 20 years. year in which no great call will be made on its The favorable climate for international trade and resources. Broadly considered, the world economic payments during the past year has shown up in the outlook seems to point to a continued growth of results of the Fund's operations. Repurchases sub­ world production and trade, though possibly at a rate stantially exceeded new drawings and the amount slower than last year's. In these circumstances, the committed under stand-by agreements was substan­ Fund will doubtless wish to give close attention to tially reduced. The easy international payments other problems. Ranking high among these is the situation during the year also made it a suitable one need to ensure that any growth in world trade forti­ for the enlargement of the Fund's resources to $14 fies rather than weakens the broad equilibrium in billion. This increase in the Fund's resources has international trade and payments which has so re­ given members added confidence and it has undoubt­ cently been achieved. If the basic objective of a edly helped some member countries to face up to the liberal and non-discriminatory world trade and pay­ removal of restrictions on current trade and payments. ments system is to be more completely fulfilled, it is For the International Bank, the past year has also essential that the benefits of high levels of world been one of considerable achievement. New lending trade and growing economic strength should be was slightly below last year's level but was still high widely shared. Prosperity is indivisible. It is an as compared with earlier years. A notable develop­ obligation of international social justice, as well as ment during the year was the evidence that member economic and political common sense, to make the nations of the Bank were prepared to work together advance of well-being a world-wide and not merely in cooperation with the Bank to find development a regional matter. On this advance rest the highest finance for particular projects. The Indus Waters hopes of men and women of goodwill throughout settlement was a particularly good example of this the world. May our discussions together here this spirit of cooperation. Everyone connected with the year do something worthwhile to sustain these hopes.

7 ANNUAL REPORT ADDRESS BY W.A.B. ILIFF, VICE PRESIDENT OF THE BANK

T MIGHT BE WELL if I began with a look at the is needed to predict a broader membership in this I growth of our institution. As yet we are only 15 institution and an increasing demand on its resources. years old; but we have grown in stature, and I would Our growth record, of course, would not have been hope in wisdom, considerably beyond the normal possible if our funds available for lending had failed expectations at that tender age. to keep pace. Ten years ago, 48 nations were members of the Ten years ago, our available funds came almost Bank. Loans amounting to some $800 million had entirely from the paid-in capital of the United States been made to help to finance projects in 14 countries. and Canada and from $250 million in borrowed Five years ago, 56 nations were numbered among money, all of which had been raised in the American our members, and we had invested about $2,300 market. million in 37 different countries. Five years ago, while the Bank's sources of finance Today, our membership embraces 68 nations; our had taken on more of an international complexion, commitments exceed $5,000 million in 53 different the paid-in subscriptions of the United States, countries. amounting to $635 million, exceeded the sum of all This year's lending total is slightly below that of usable subscriptions from our other members. last year. But this is an accident of the calendar, Today, the international character of the Bank's rather than any sign of a slackening pace. If the finances is thoroughly established. Members' paid-in year had closed but one loan later, this would have capital available for lending - exclusive of the been a record lending year. The significant statistic United States' subscription - amounts to more than is the fact that in the last three years our lending has $1,000 million. Of the Bank's outstanding funded .almost equalled the total of our first ten years. debt which now exceeds $2,000 million, more than Bank loans during the year under review con­ half is held outside the United States - a very formed, in type, to our usual pattern, with heavy remarkable change from the situation five years ago. emphasis on transportation and electric power. For Ten years ago - even five years ago - we were the fifth year in succession, Asia and the Middle still largely a dollar bank; today we are in every East, taken together, received the largest part of the sense of the word an international bank. total. This year, Africa was second. Mauritania and The Bank's securities have been established in the the United Arab Republic became Bank borrowers money markets of Belgium, Canada, Germany, the for the first time. In Latin America, our lending Netherlands, Switzerland, and the United Kingdom, during the year brought our total investment in that as well as the United States. Investors in more than part of the globe to over $1,000 million. 40 different countries are holders of Bank securities. The time is not far off when new countries enter­ An indication of how deep, as well as wide, are the ing the community of independent nations will have international sources of funds available to the Bank brought the total number of sovereign states to more came to us shortly after the close of the last fiscal than 100. Most of these new nations will be ill sup­ year. On July 13 last, the Bank was able to an­ plied with development resources and determined to nounce a borrowing from the Central Bank of do something about their poverty. Most of them, Germany of the equivalent of $240 million, part in therefore, will probably become members of the dollars and part in deutsche mark, with a 12-year World Bank. Accordingly, little skill in clairvoyance maturity. This is not only our largest borrowing ever

:8 undertaken outside the United States; it is by far the as easy to see new sources of capital as it is to see largest single borrowing we have made anywhere the needs for it. But there does not appear to be since we floated an issue of $250 million in the any shortage in sight of development capital prepared United States market in the summer of 1947. to move on conventional terms. The volume of pri­ Over the past three years, Germany has been our vate international lending and investment in foreign most important source of borrowed funds. securities has been growing; foreign bonds publicly There have been three other issues since the end issued in the major capital markets during 1958 and of the fiscal year under review; first, a roll-over 1959 amounted to more than three times the total operation, which continued for another three years floated in 1952 and 1953. And this is exclusive of a $30 million issue that matured July 11 last. Sec­ refunding operations. ondly, the sale outside the United States of $100 This expansion has been marked by an increase in million in two-year 3Y2 % bonds; this issue was the number of countries able to invest abroad, nota­ heavily oversubscribed; and finally, a public issue in bly, of course, those countries of Western Europe Switzerland of 4%, I5-year bonds amounting to 60 where sustained improvement on domestic and for­ million Swiss francs; this issue also was oversub­ eign account has come about. scribed. Taking into account this last Swiss issue, Even the present pattern of interest rates suggests the aggregate of World Bank bonds and notes out­ the possibility of a continuing growth in the supply standing in Swiss francs will amount to about Sw. of conventional development capital. While attention Frs. 690 million. today is directed to the recent rise in long-term inter­ Increased interest in the Bank's own obligations est rates in Europe, it should not be overlooked that has been accompanied by a widening interest in the European interest rates in general are significantly purchase of World Bank loans on the part of lower now than they were at the peak of the earlier investors around the world. During the fiscal year European boom in 1957. Moreover, since 1957, under review, sales of parts of our loans, without our controls over capital movements have been eased. guarantee, amounted to the record figure of almost These are indications that the supply of capital in a quarter of a billion dollars. These sales have Europe has expanded substantially in the past three brought back to the Bank more than $800 million years, giving still further support to the view that over the past decade - and of this, $500 million capital flows to the low income countries can con­ came from outside the United States. They are, in tinue to increase. effect, equivalent to repayments to the Bank before The past decade has brought to the Bank a steady maturity, and this speedy replenishment of our lend­ stream of new members, new borrowers and new lend­ ing resources means, of course, that our need to go ers. It has also brought some new problems which to the market for new funds is correspondingly are taxing both our resources and our ingenuity. reduced. More important, these sales - being with­ Ten years ago, the international financial com­ out the Bank's guarantee - are an encouraging sign munity was still concerned primarily with recovery of confidence on the part of private investors in the and reconstruction in the nations which had been unsupported credit of our borrowing member gov­ belligerents in World War II. Development in the ernments. underdeveloped lands was then a second priority It is worth noting, in passing, that the over-all claim on the supply of investment capital. financial position of the Bank continues to grow Five years ago, the emphasis had already changed, stronger. A further $86.5 million was added to our but the scope and complexity of modern develop­ reserves during the past fiscal year and these reserves ment problems were not fully appreciated by any now stand at more than half a billion dollars. of us. True, some of the fundamentals of the devel­ So far as the future is concerned, it is not always opment business had become well known, and were

9 being actively discussed. In this institution we were a development program in earnest, and sets out to absorbed with many borrowers in dealing with the find capital to finance it, that country can, with great problems of adequate project preparation and, to­ rapidity, reach the point where its ability to borrow gether with our sister institution, the Fund, of pre­ foreign capital on conventional terms is very limited venting an unhealthy evaporation of effort and in comparison with the amount that it could effec­ resources through inflation. We are still absorbed in tively employ. This is certainly the case with India these matters and, no doubt, we shall continue to be and Pakistan today; it may already be the case with so, as long as there is an International Monetary some other countries also. Fund and a World Bank. For example, assuming India's proposed Third But today we have two new categories of prob­ Five-Year Plan to be a fair and realistic estimate of lems to add to the old. the development progress that can be made in India First, we have the problem of what I will call the over the next five years, then the financing of the Plan New Countries - those countries to whom national will require a substantial acceleration of foreign aid. independence, and sometimes a fundamental social India's external debt already creates an onerous bur­ revolution, has come, in some instances, with little den on her economy, and, if hard loan continues to or no preparation or warning. The striking examples, be piled upon hard loan, the service and repayment of course, are the new countries of Africa. In some burdens will very quickly reach an intolerable level. of these countries we know now that the first road­ Clearly this is a situation in which, if the tempo of blocks on the path to development are the lack of the progress in the underdeveloped world is not to be most basic services of government, particularly ade­ dangerously retarded, some other forms of develop­ quate education. Somewhere, somehow, men and ment financing must be made available on a sub­ women must be found, or trained, to build the very stantial scale. The Free World has begun to realize foundations of government without which economic this, and, accordingly, we are experimenting with a and social progress cannot be built. whole orchestra of novel financial instruments - Here is a category of problems which obviously bilateral and multilateral- which, we hope, will has not been fully anticipated by the community of provide orderly and constructive ways of dealing with nations. The human resources available to be brought financial imbalances that arise primarily from the to bear on these situations are pitifully meager. All momentum of a country's development effort. The development agencies, national, regional and inter­ objective must be to bring some harmony out of national, will have to stretch to the limit their these new instruments. The risk is that - if we are resources - and their ingenuity - to meet the de­ not careful - we could produce not an orchestra, mand. In the Bank, we hope, and expect, to be able but nothing more than a haphazard ensemble mak­ to do our share. Many countries, struggling with the ing quite discordant noises. new realities of national independence are coming to In considering these new problems one can dis­ us now for technical assistance in a wide variety of cern a trend in the international community-a trend forms, and we are doing our best to provide what in the direction of greater reliance on the multi­ help we can. But something more than the existing lateral approach, Today's trend differs importantly forms of technical assistance is required. The New from similar trends in the past; the search now is not Countries present the United Nations, the Bank, and for once-and-for-aU solutions to the broad problems all other agencies interested in development with a of development; rather it is a search for solutions new kind of problem. Collectively, we have not yet to specific problems - solutions which can be fitted managed to fashion an adequate response. together like pieces of a jigsaw puzzle to make a The other problem that begins to confront us arises more hopeful prospect for a picture of peace and from this circumstance: once a country embarks on human betterment.

10 The historic transformation which is going on in IDA's future operations. On the financial side, IDA the underdeveloped world today defies any general will be able to venture further than the Bank is able "solution"; but it does offer infinite possibilities to to go in countries which, through no fault of their the practitioners of economic development. By own, have only a limited capacity to service conven­ marrying the needs of development with international tional foreign debt. On the project side, IDA can cooperation, more and more statesmen the world support whatever development undertakings appear over are trying to make something of these infinite to hold the most promise, provided that they can possibilities. Instead of searching for an elusive pass the test of careful and adequate preparation grand design, they are seizing on specific develop­ which the Bank is accustomed to apply. With this ment opportunities, and trying to use these oppor­ proviso, IDA can be expected to finance all types of tunities as a means of promoting harmony and investment financed by the Bank and a broader tranquility within and among the nations. range besides. This trend is immensely encouraging to us in the Beyond these generalizations, a discussion at this Bank. We have always believed that the way to put time of IDA policies would be premature. It is only muscle on the skeleton of international cooperation through tackling specific operations that we can adapt is to make real in as many specific situations as the various techniques and policies possible under possible the prospect of economic growth. While we IDA's charter to the urgent needs of its less devel­ claim no special place, we have been one of the oped member countries. Our aim is to get off to a pioneers in this endeavor and are privileged today to quick start now - to get some concrete projects be given new and exciting tasks to perform. before us. Of special importance to us, of course, is the new We realize that our administration of IDA will be International Development Association. As you, Mr. watched carefully. We have to demonstrate that a Chairman, announced yesterday, the Articles of bank can handle monies soundly and effectively Agreement of IDA are now in force, the specified where an orthodox financial return is not a first minimum amount having been subscribed by member consideration. It is our hope that, through IDA, governments. IDA will soon be ready to start we shall be able to reach peoples hitherto inaccessible operations. to the Bank, and to give them the prospect of better, Member governments have given to the World healthier and more productive lives. Bank the responsibility for administering IDA. Its IDA is but one of several new departures in the birth is a milestone in our career. Here, multilateral field of development which will be tested in the administration will be tested in a new field. And time immediately ahead of us. here will be a rare opportunity to demonstrate how Several regional organizations, notably in Latin new kinds of financial instruments can make possible America, are about to strike out in a parallel direc­ the new approaches which the development problem tion. The formation of the Inter-American Develop­ today demands. IDA's initial resources are very ment Bank and the possible future development modest, compared with the needs of the under­ activities of the Organization of American States both developed world. But I feel sure that those resources forecast the new wind of change which is beginning will be augmented over the years, and that the Bank to blow across the Latin American continent. Hop­ and IDA together will be able to assist their less ing that this will be a wind favorable to development, developed member countries with greater effective­ we in the World Bank expect that the effective ness and on a broader front than the Bank has demand for basic development services in this part of hitherto been able to do alone. the world will increase importantly, and we shall be The Executive Directors and the President of the ready to play our part beside the new institutions. Bank use the word "flexibility" to set the tone for In the past year, studies to which the Bank and other

11 organizations contributed have been concluded in for finance, but for efficient and effective develop­ Argentina and Venezuela, and indications are that ment programing. If international cooperation is the Bank may soon be able to initiate lending pro­ really to serve the desired objective, it must encour­ grams in these two countries. age the orderly programing of projects and resources, Improved opportunities for lending have already primarily by the recipient country itself. Where this opened up in Chile, Colombia and Mexico. In gen­ vital condition is met, these credit consortia can eral, the prospects for development throughout Latin provide further convincing evidence of the worth of America appear quite hopeful. the international approach. The Bank is also following with interest the move­ Finally, in this general context, it is perhaps ment to amend the function and membership of the appropriate to mention the Indus Waters Treaty Organization for European Economic Cooperation. between India and Pakistan, which was signed last Among other objectives, this movement aims at giv­ week. This will have been welcomed by the Gover­ ing to the Atlantic Community a means of increasing nors as a solution of a critical and long-standing and coordinating their collective assistance to under­ dispute between these two important members of developed countries. A review of the Bank's role in our organization. this movement is contained in the Annual Report The settlement contemplates the construction of a before you. system of works in Pakistan at a cost of over $1,000 Not all the new approaches to the development million - the largest of its kind ever to be under­ problem today are as formal as these. For example, taken anywhere. It would not have been possible for some time now a group of governments, who without the generous financial assistance extended by have been providing large-scale development assist­ the Governments of Australia, Canada, Germany, ance to India, are holding informal discussions with New Zealand, the United Kingdom, and the United the Bank to exchange information about assistance States. programs and intentions, and to achieve some coordi­ This assistance - apart from a conventional loan nation of effort. A meeting was held this month in from the Bank - will be entirely in the form of Paris to give preliminary consideration to India's grants or in loans repayable in local currency. It Third Five-Year Plan and to India's estimation of will be channelled through an Indus Basin Develop­ the foreign exchange assistance which that plan ment Fund established by an international agreement. would require. A further meeting will probably be This Fund will be administered by the Bank. The held next spring. contracting for the works will be thrown open to A similar consortium will meet in Washington international bidding in accordance with the Bank's next week to review assistance to Pakistan in the light usual procedures. of Pakistan's development plans. A few other coun­ The arrangements for the financing of this vast tries have approached the Bank with a view to undertaking offer another example of the possibilities holding meetings of the same sort. that exist for developing multilateral techniques in Here again is an effort to marry the needs of the financing of economic development; and may I development with international cooperation to the add, Mr. Chairman, that membership in the Indus end of more effective development assistance. This Club, as well as in the international consortia that I is not, may I say, a device whose application can be have mentioned, is still open to any aspiring candi­ made universal. If these consortia are to serve dates willing to contribute the entrance fee. development over the long run they must not be I believe that what we are undertaking today in the regarded primarily as a fund-raising exercise or as a World Bank, and what we have been asked to under­ means of securing temporary accommodations in take through the International Development Associa­ political and economic crises. The need is not just tion, promises to grow enormously in importance and

12 in scope in the years immediately ahead. Develop­ is an over-all solution, in present world circum­ ment techniques implemented through international stances, to the broad problems of peace. cooperation are, I am convinced, about to emerge The task to which we ought to devote ourselves as a much more significant force in the thinking of today is to try, by dealing with specific situations as those who are honestly concerned with the promotion we find them, to improve the material lot of our less of economic and social progress and with the main­ fortunate fellowman. Our task is to live with the tenance of peace. world problems of today so that we may kindle, and But we cannot be so ambitious, or so presump­ not kill, hope in a better future. And if the needs of tuous, as to offer any ready-made over-all solution to development can rely on the presence of international problems which, by their very nature, can only be cooperation we shall be able to serve the ends of effectively tackled step by step and one at a time. It peace and freedom in the most tangible way open to seems to me that there is no over-all solution to the us, and with the most effective tools to our hand. broad problems of development any more than there

COMMENTS OF W.A.B. ILIFF, VICE PRESIDENT OF THE BANK ON DISCUSSION OF ANNUAL REPORT

AT THE VERY OUTSET I want to say a word of improvement which various Governors have put 1"\... thanks on behalf of Mr. Black for the expres­ forward for consideration. sions of confidence in his leadership and of personal I might mention particularly the suggestions that regard for him which so many of the Governors the Bank should adopt a more flexible policy with have voiced during this past week. respect to financing local currency expenditures and I can assure you that Mr. Black is straining at with respect to restricting its loans to specific pro­ the leash of his convalescence, and he will be much ductive projects. In both respects, however, the heartened, as the Executive Directors, Mr. Knapp, Bank's freedom of action is sharply limited by the and I, and all the members of the staff, by the provisions of its Charter. Governors' general comments about the Bank's per­ I can assure you, however, that we will use such formance during the past year and their many expres­ latitude as we do have to fit our financing as best we sions of support. Support from them, who audit can to the particular development needs of each our record at these meetings each year, is the most borrowing country. valuable support we can have. It helps us recharge Our approach is, and will continue to be, doctri­ our batteries for the coming year and to bring new naire in one respect only, and that is in our insistence vigor to our work and to our approaches to the that each investment we make should provide a full problems that are wrapped up in that vague word measure of return to the member concerned in terms "development. " of promoting its economic strength. It will go on being our resolve to make the Bank a We have taken note too of the suggestion of the constantly more effective development agency, and Governor for Germany regarding the importance of we welcome the several suggestions for change and supporting local financial institutions and the advan-

13 tages of using them as a channel for Bank loans for just as speedily as possible is no longer an issue. certain types of development projects. This responsibility is accepted by all as a primary In the past the Bank has played an active role in task of our generation. The debate now is over ways encouraging the establishment and growth of devel­ and means, about how much it's possible to do and opment banks in many countries, and I agree that how best and how fast it can be done. this is a field that deserves increased emphasis and Thus, the birth of IDA comes at a peculiarly attention. opportune time. Just as a greatly intensified inter­ There was to my mind one notable feature of our national attack is being mounted on poverty, disease meeting this week which was perhaps not fully and illiteracy throughout the developing world, IDA noticed. In years past we have often heard eloquent gives the Bank a useful tool, a new tool, a tool both voices pleading for greater recognition of the prob­ adaptable in character and adjustable in size with lems of underdevelopment and for more capital, which to participate fully in that attack. more technical assistance, and more of other forms No more constructive task could have been en­ of help to speed solutions of these problems. trusted to us. Today the area of discussion has shifted. One And now when the time comes for the Governors thing emerges not only from our discussions here but and their delegations and our distinguished guests to also from the great debate now in progress in the leave Washington, may I ask them to take with them General Assembly Hall of the United Nations. And the best wishes of all of us in the Bank for the future it's this: The urgency of promoting the economic and for a pleasant journey home. and social development of the lower income lands

CLOSING ADDRESS BY THE CHAIRMAN

EFORE BRINGING our deliberations formally to an that the quality of the contribution must rank B end, may I just say a few words in conclusion amongst the highest in the history of these organiza­ myself. tions. The meetings have been conducted in a spirit I would like to thank those Governors who have which would make them a model for other inter­ been so kind as to say pleasant things about my own national gatherings. occupancy of the Chair in what has been I assure you Without wishing to introduce a note of smugness a most comfortable and enjoyable period of office, into our affairs or to ignore the difficulties and prob­ and I would like on behalf of the staff to say how lems of others, I would just like to say that anybody much they appreciate the well-merited tributes which who had an opportunity to contrast what has gone on have been paid to them. here in this last week with what has been happening I think we can all feel that we have come to the at another international gathering in New York could end of what has been a most successful series of be pardoned for the feeling that we lived in different meetings. I am a comparative newcomer to your worlds. And yet, Gentlemen, here are nearly 70 meetings myself, this being only the second of the governments of the world represented - 68 member annual series I have attended. I hope many more lie governments meeting here - in a spirit of friend­ ahead. But those who have been here many times liness and cooperation. tell me that they have never known a series of meet­ I said at the outset that it was my own conviction ings in which more valuable suggestions have come that the significance of the work of these institutions forward, and from my own observation, I would say would grow with the years and that judgment has

14 been strongly confirmed by the experience of this felt, therefore, that we should try to cram into the week. Even the best informed of us will go away hours as much discussion time as we could prac­ from these meetings feeling that we have had a liberal ticably manage. I am not unaware of the problems education in the affairs of other countries of the which arise when there are conferences of an infor­ world and certainly will be fortified in our own mal kind being held, and even the social gatherings, policies by what we have been able to learn here. which may be social in form and indeed in spirit, I am sure that those who come from the weaker themselves play an important part in building friend­ and less developed countries will feel greatly heart­ ships and enabling discussions to be furthered. And, ened and encouraged by the attention focused on therefore, although I called for your assistance in their problems, not only by others in a similar situa­ seeing that we started promptly at the time, I was tion but by the spokesmen for the stronger countries, not unaware of the difficulties which some of you stronger economies, who are in a position to give had to face in carrying out my request. increased practical help and have given every indica­ tion that they intend to do so. If world prosperity is * * * * * to increase, if the peace of the world is to be main­ I do thank you most warmly and sincerely for all tained, then I am convinced that these organizations the help you have given in making possible the will have an increasing part to play in bringing about successful conduct of what I believe will rank as one those most desirable objectives. How we conduct of the most successful of the many happy meetings in our affairs in the years ahead will, I believe, make the history of these important international organi­ an increasing contribution to those ends. zations. I would like to thank the Delegates for the coop­ Now the Annual Meetings of the Boards of Gover­ eration and assistance they have given to the Chair. nors of the International Monetary Fund, the Inter­ As interest in the discussions increases, as our num­ national Bank for Reconstruction and Development, bers grow, it becomes imperative that we make the and the International Finance Corporation stand most effective use of the time available to us. And I adjourned.

15 COMMITTEE REPORTS

FUND-BANK PROCEDURES COMMITTEE

Chairman ...... AUSTRALIA Vice Chairmen ...... MEXICO AND PAKISTAN Reporting Member ...... LIBYA Other Members: CANADA, CHINA, DOMINICAN REPUBLIC, FRANCE, GER­ MANY, GHANA, INDIA, IRELAND, KOREA, LEBANON, NORWAY, UNITED KINGDOM, UNITED STATES, URUGUAY, VIET-NAM

REPORT I September 24, 1960 Sir: The Fund-Bank Procedures Committee, at its first meeting at 4:00 p.m. on September 24, 1960, considered the matters of business which had been proposed for the 1960 Annual Meetings of the Boards of Governors of the Fund and the Bank.

I have the honor to submit the following recommendations of the Committee:

1. SCHEDULE OF MEETINGS The Committee recommends that the provisional schedule ... ' be adopted, and that the Secre­ taries of the Fund and the Bank, in consultation with the Chairman, be authorized to modify it as necessary.

2. CONDUCT OF MEETINGS The Committee recommends that the provisions relating to the conduct of the Meetings, be approved.

3. FUND AGENDA::

4. BANK AGENDA

The Committee recommends that the agenda ... J be adopted by the Board of Governors of the Bank and that any proposed additions to the agenda be submitted in writing to the Fund-Bank Procedures Committee, through the Chairman, for its recommendations.

1 See page 18 (Conference reference omitted). "See page 19 (Conference reference omitted).

3 Fund business omitted.

4 See page 20 (Conference reference omitted).

16 5. EIGHTH REGULAR ELECTIONS OF EXECUTIVE DIRECTORS The Committee considered the Reports of the Executive Directors of the Fund and Bank regarding the Eighth Regular Elections of Executive Directors. . . .' The Committee recommends the

adoption of the draft resolutions e relating to these elections and the proposed rules Cl for their conduct attached to the said Reports.

6. LATER REPORTS OF THE COMMITTEE The Committee also considered the other individual items of business on the proposed agendas of the Fund and the Bank and will make recommendations as to their disposition in separate Committee reports to the two Boards. The report on the Bank items will be given at the meeting of the Bank Board on Tuesday morning. The report on the Fund items will be presented at the meeting of the Fund Governors on Wednesday morning. At these meetings any Governor who wishes to speak will have an opportunity to be heard on any item of business before the Governors. The Committee will make a later report to the Boards of Governors on: a. Place and Date of next Annual Meeting. b. Election of Officers and Fund-Bank Procedures Committee for 1960-61.

Approved:

I sl HAROLD HOLT I sl A. N. ANEIZI AUSTRALIA-CIllIirll1{/1l F ARAJ BUGRARA LIBYA-Reportillg Memher

This Report was approved and its recommendations were adopted by the Boards of Governors 011 September 26, 1960.

1 (Conference references omitted). e See page 27 (Bank resolution only). o See page 31 (Bank rules only).

17 PROVISIONAL SCHEDULEl

Saturday SEPTEMBER 24 4:00 p.m.-Procedures Committees

Monday SEPTEMBER 26 10:00 a.m.-FUND-BANK BOARDs-Address by the Chairman and Responses -Fund-Bank Procedures Committee Report I -Annual Address, Managing Director of Fund

Tuesday SEPTEMBER 27 10:00 a.m.-BANK BOARD -Fund-Bank Procedures Committee Report II -Annual Address, President of Bank -Bank Annual Discussion 3 :00 p.m.-BANK BOARD -Bank Annual Discussion (continued)

Wednesday SEPTEMBER 28 10:00 a.m.-FuND BOARD -Fund-Bank Procedures Committee Report III -Fund Annual Discussion 3 :00 p.m.-FuND BOARD -Fund Annual Discussion (continued)

Thursday SEPTEMBER 29 10:00 a.m.-IFC BOARD -IFC Procedures Committee Report -Annual Address, President of IFC -IFC Annual Discussion 5 :(JO p.m.-~ Fund-Bank Procedures Committee

Friday SEPTEMBER 30 9 :45 a.m.-FuND-BANK BOARDs-Election of Executive Directors-Fund -Election of Executive Directors-Bank -Fund-Bank Procedures Committee Report LV -Comments by Heads of Organizations -Conclusion

1 The provisional schedule was substantially followed; for final schedule see page ii.

18 PROVISIONS RELATING TO THE CONDUCT OF THE MEETINGS

ATTENDANCE

I. All Sessions of the Boards of Governors of the Fund and the Bank, including Joint Sessions, shall be open to the press and invited guests, unless otherwise decided. Committee meetings shall be closed. 2. Meetings of the Procedures Committee shall be open only to Governors who are members of the Committee and their delegations. 3. Committee meetings, if any, with the exception of Procedures Committee Meetings, shall be open to Delegates who are not Committee Members. 4. Accredited observers may attend all Sessions of the Boards of Governors and their Committees, other than the Procedures Committee, unless decided otherwise. 5. Sessions of the Boards of Governors and Committee meetings shall be open to such members of the Joint Secretariat and the technical staffs as may be necessary.

PUBLIC INFORMATION

6. The Chairman of the Boards of Governors, the Managing Director of the Fund and the President of the Bank are authorized to communicate to the press such information concerning the pro­ ceedings of the Annual Meeting as they deem suitable. Copies of such communications shall be available to any Governor on his request.

RECORDS

7. The Secretaries of the Fund and the Bank are authorized to prepare verbatim transcripts of the proceedings of Sessions of the Boards of Governors and their Committees. The transcripts of Committee proceedings, and any summary records thereof, will be confidential and available only to the Chairman, the Managing Director of the Fund and the President of the Bank, and the Secretaries, unless otherwise decided.

8. Reports of Committees shall be signed by the respective Committee Chairman and Reporting Member.

19 AGENDA'

1. Fifteenth Annual Report

2. Financial Statements and Annual Audit (Pages 36 to 46 of Fifteenth Annual Report)

3. Administrative Budget

4. Allocation of Income to Reserve

5. Application of Nepal for Membership in the Bank

6. Application of Nigeria for Membership in the Bank

7. Increase in Subscription of Yugoslavia to Capital Stock of Bank

8. Eighth Regular Election of Executive Directors

9. Place and Date of Next Annual Meeting

10. Election of Officers and Procedures Committee for 1960-61

1 Conference references omitted.

20 FUND-BANK PROCEDURES COMMITTEE

REPORT II

September 24, 1960

Sir:

The Fund-Bank Procedures Committee at its first meeting held on Saturday, September 24, 1960, considered the items of business on the Agenda of the Board of Governors of the Bank.

I have the honor to submit the following report and recommendations of the Committee:

1. FIFTEENTH ANNUAL REPORT The Committee noted that provision has been made for discussion of the Fifteenth Annual Report at this Meeting.

2. FINANCIAL STATEMENTS, ANNUAL AUDIT AND ADMINISTRATIVE BUDGET The Committee considered the Financial Statements and Auditors' Report contained in the Fifteenth Annual Report and the Administrative Budget together with a report thereon, dated September 6, 1960.

The Committee recommends to the Board of Governors the adoption of the draft resolution ... 1

3. ALLOCATION OF INCOME TO RESERVE The Committee considered the Report of the Executive Directors, dated September 8, 1960, on the allocation of income to reserve. The Committee recommends that the Board of Governors note with approval the allocation of the net income of the Bank for the fiscal year ended June 30, 1960 to the reserve against losses on loans and guarantees.

4. APPLICATION OF NEPAL FOR MEMBERSHIP IN THE BANK The Committee then considered the Report of the Executive Directors, dated September 8, 1960, concerning the application of Nepal for membership in the Bank and recommends the adoption

by the Board of Governors of the draft resolution ... 1

5. APPLICATION OF NIGERIA FOR MEMBERSHIP IN THE BANK The Committee then considered the Report of the Executive Directors, dated June 21, 1960, concerning the application of Nigeria for membership in the Bank and recommends the adoption by the Board of Governors of the draft resolution ... ~

1 See page 27 (Conference reference omitted). ~ See page 29 (Conference reference omitted).

21 6. INCREASE IN SUBSCRIPTION OF YUGOSLAVIA TO CAPITAL STOCK OF THE BANK The Committee then considered the Report of the Executive Directors, dated September 16, 1960, concerning the increase in sUbscription of Yugoslavia to Capital Stock of the Bank, and recom­

mends the adoption by the Board of Governors of the draft resolution ... 1

Approved:

/ s/ HAROLD HOLT /s/ A. N. ANEIZI AUSTRALIA-Chairman LIBYA-Reporting Member

This Report was approved and its recommendations were adopted by the Board of Governors on September 27, 196()

1 See page 30 (Conference reference omitted).

22 FUND-BANK PROCEDURES COMMITTEE

REPORT IV'

September 29, 1960 Sir: The Fund-Bank Procedures Committee held its second meeting on September 29, and submits the following report:

1. MR. BLACK The Committee recommends that the Boards of Governors express their regret over Mr. Black's inability to attend the 1960 Annual Meetings, extend their wishes for his rapid recovery, and request the Chairman to convey these expressions to Mr. Black.

2. PLACE AND DATE OF THE NEXT ANNUAL MEETINGS The Committee recommends that the 1961 Annual Meetings be convened in Vienna, in Septem­ ber, 1961. The Committee further suggests that for planning purposes Washington, D. C. be considered the place of the 1962 and 1963 Annual Meetings.

3. OFFICERS AND PROCEDURES COMMITTEE OF FUND AND BANK The Committee recommends that the Governor for Thailand be elected Chairman and that the Governor for India be elected Vice-Chairman of the Boards of Governors. to hold office until the close of the next Annual Meetings. The Committee further recommends that a Procedures Committee of the Fund and Bank be established to be available after the termination of this Meeting, and until the close of the next Annual Meetings, for consultation at the discretion of the Chairman, normally by correspondence, and also if occasion requires, by convening when necessary. This Committee shall be comprised of the Governors for the following members: Argentina, Austria, China, Denmark, Ethiopia, France, Germany, Guatemala, India, Jordan, Luxembourg, Malaya, Morocco, Spain, Thailand, Turkey, United Kingdom, United States and Venezuela. It is further recommended that the Chairman and the Vice-Chairman of this Committee shall be the Governors for Thailand and India, respectively, and that the Governor for Argentina shall serve as Reporting Member.

Approved:

/ s/ HAROLD HOLT /s/ A. N. ANEIZI AUSTRALIA-Chairman OMAR M. MUNTASSER LIBYA-Reporting Member

This Report was approved and its recommendations were adopted by the Boards of Governors on September 30, 1960.

1 Report III related to business of the Fund.

23 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS BETWEEN 1959 AND 1960 ANNUAL MEETINGS

RESOLUTION NO. 137 AMENDMENT OF SECTION 14 (e) OF By-LAWS OF BANK

RESOLVED: THAT effective November 1, 1959, the figure "15,500" in Section 14(e) of the By-Laws of the Bank shall be changed to "$17,000".

(Adopted December 28, 1959)

RESOLUTION NO. 138 INCREASE IN SUBSCRIPTION OF AUSTRALIA TO CAPITAL STOCK OF BANK

RESOLVED: THAT, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Australia to 1,330 shares of the capital stock of the Bank in addition to the 4,000 shares of said capital stock heretofore subscribed by Australia, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Australia's subscription shall be received by the Bank on or before June 6, 1960, pro­ vided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; (c) That before such subscription shall be accepted by the Bank, (i) Australia shall have taken all action which may be necessary to authorize such sUbscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Australia shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2 % in gold or United States dollars and 18 % in currency of Australia; and (d) With respect to the subscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in the currency of Australia shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted April 6, 1960)

24 RESOLUTION NO. 139 ADJUSTMENT OF CAPITAL SUBSCRIPTION OF REPUBLIC OF CHINA

WHEREAS, the Republic of China has requested that (a) it be permitted to adjust its subscription to shares of the capital of the Bank so that such subscription shall have substantially the same relation to the subscriptions of the other members of the Bank as the quota of the Republic of China in the International Monetary Fund has to the quotas of the other members of the Fund, and that (b) this be effected by a transfer by it to the Bank of 2,250 shares of capital stock out of the 6,000 shares presently held by it and the subsequent doubling of its resultant subscription on substantially the basis set forth in Resolutions Nos. 128 and 129 of the Board of Governors; RESOLVED THAT: 1. The Republic of China may transfer to the Bank, and the Bank is authorized to accept, 2,250 shares of the capital stock of the Bank presently held by the Republic of China. 2. The Bank shall make payment for said 2,250 transferred shares (a) by paying U.S. $2,000,000 in a manner and on a date or dates to be agreed upon by the Bank and the Republic of China, and (b) by delivery to the Republic of China, upon such transfer, of notes or currency of the Republic of China in the total amount of T81 0,000,000. 3. The Republic of China shall remain obligated to the Bank with respect to the said shares to the same extent as it would be obligated under Article VI, Section 4(a) and (c) (iv) if it had ceased to be a member on the date of such transfer holding, at the time, a subscription equal to the number of transferred shares. 4. After the transfer of the said 2,250 shares shall have been effected pursuant to the foregoing, the Republic of China may subscribe to an additional 3,750 shares of the capital stock of the Bank on the following terms and conditions: (a) The subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) With respect to the subscription price of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in the currency of the Republic of China shall be left uncalled, as set forth in Resolution No. 129 of the Board of Governors, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors; (c) The subscription shall be receivd by the Bank on or before August I, 1960 or such later date as the Executive Directors may determine; Cd) The Republic of China shall represent to the Bank that it has taken all action necessary to authorize such subscription and shall furnish to the Bank such information thereon as the Bank may request; and (e) The subscription shall become effective as of the date when all the terms and conditions speci­ fied in sub-paragraphs (a), (c) and (d) of this paragraph (4) shall have been complied with. 5. The President or any Vice President or any staff member designated by any of them for the purpose is hereby authorized in the name and on behalf of the Bank to take any and all such further action and execute and deliver any and all such documents and to do any and all such acts and things as they or any of them shall deem necessary or proper in order to carry fully into effect the purposes of this Resolution. (Adopted June 30, 1960)

25 RESOLUTION NO. 140 INCREASE IN SUBSCRIPTION OF COLOMBIA TO CAPITAL STOCK OF BANK

RESOLVED: THAT, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Colombia to 233 shares of the capital stock of the Bank in addition to the 700 shares of said capital stock heretofore subscribed by Colombia, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Colombia's subscription shall be received by the Bank on or before September 15, 1960, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; (c) That before such SUbscription shall be accepted by the Bank, (i) Colombia shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Colombia shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2% in gold or United States dollars and 18% in currency of Colombia; and (d) With respect to the subscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in the currency of Colombia shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted luly 18,1960)

RESOLUTION NO. 141 INCREASE IN SUBSCRIPTION OF CHILE TO CAPITAL STOCK OF BANK

RESOLVED: THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Chile to 233 shares of the capital stock of the Bank in addition to the 700 shares of said capital stock heretofore sub­ scribed by Chile, upon the following conditions: (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Chile's subscription shall be received by the Bank on or before September 15, 1960, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; (c) That before such subscription shall be accepted by the Bank, (i) Chile shall have taken all action which may be necessary to authorize such SUbscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Chile shall have paid to the Bank, on account of the subscription price of one-half of such additional shares, 2 % in gold or United States dollars and 18% in currency of Chile; and

26 (d) With respect to the sUbscription price of the other one-half of such shares, the 2 % portion payable in gold or United State dollars and the 18 % portion payable in the currency of Chile shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted August 1, 1960)

RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS AT 1960 ANNUAL MEETING

RESOLUTION NO. 142 1960 ELECTION OF EXECUTIVE DIRECTORS

RESOLVED: (a) That the proposed Rules for the Conduct of the 1960 Election of Executive Directors are hereby adopted; and (b) That the said Election of Executive Directors shall take place at the Annual Meeting of the Board of Governors in 1960. (Adopted September 26, 1960)

RESOLUTION NO. 143 FINANCIAL STATEMENTS, AUDITORS' REPORT AND BUDGET

RESOLVED: THAT the Board of Governors of the Bank consider the Financial Statements and Auditors' Report, included in the Fifteenth Annual Report, and the Administrative Budget attached to the Report dated September 6, 1960, as fulfilling the requirements of Article V, Section 13, of the Articles of Agreement and of Section 19 of the By-Laws of the Bank. (Adopted September 27, 1960)

RESOLUTION NO. 144 MEMBERSHIP OF NEPAL IN THE BANK

WHEREAS, the Royal Government of Nepal * has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Bank; and

* His Majesty's Government oj Nepal

27 WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after consultation with representatives of Nepal, have made recommendations to the Board of Governors regarding this application; Now, THEREFORE, the Board of Governors hereby

RESOLVES: THAT the terms and conditions upon which Nepal shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) "Bank" means International Bank for Reconstruction and Development. (b) "Articles" means the Articles of Agreement of the Bank. (c) "Dollars" or "$" means United States dollars of the weight and fineness III effect on July 1, 1944. (d) "Subscription" means the capital stock of the Bank subscribed to by a member. (e) "Member" means member of the Bank. 2. Subscription: By accepting membership in the Bank, Nepal shall subscribe to 100 shares of the capital stock of the Bank at the par value of $100,000 per share. 3. Membership in the Fund: Before accepting membership in the Bank, Nepal shall accept membership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Nepal shall pay to the Bank on account of the subscription price of one-half of such shares: (i) Gold or United States dollars equal to 2% thereof; and (ii) An amount in its own currency which, at the appropriate prevailing exchange rate, shall be equal to 18% thereof. (b) With respect to the SUbscription price of the other one-half of such shares, the 2 % portion payable in gold or United States dollars and the 18 % portion payable in the currency of the member shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. 5. Representation and Information: Before accepting membership in the Bank, Nepal shall repre­ sent to the Bank that it has taken all action necessary to sign and deposit the instrument of acceptance and sign the Articles as contemplated by paragraph 6 (d) and (e) of this reso­ lution and Nepal shall furnish to the Bank such information in respect of such action as the Bank may request. 6. Acceptance of Membership: Nepal shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Nepal shall have complied with the following requirements: (a) Become a member of the International Monetary Fund; (b) Made the payments called for by paragraph 4 of this resolution; (c) Furnished the representation, and such information as may have been requested, pursuant to paragraph 5 of this resolution; (d) Deposited with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this resolution;

28 (e) Signed the original copy of the Articles held in the Archives of the Government of the United States of America. 7. Limitation on Period tor Acceptance of Membership: Nepal may accept membership in the Bank pursuant to this resolution until March 31, 1961 provided, however, that, if extra­ ordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Nepal may accept membership pursuant to this resolution, the Executive Directors may extend such period. (Adopted September 27, 1960)

RESOLUTION NO. 145 MEMBERSHIP OF NIGERIA IN THE BANK

WHEREAS, the Government of the Federation of Nigeria on August 17, 1959, applied for admission, on the attainment by that country of constitutional independence, to membership in the International Bank for Reconstruction and Development in accordance with Section 1 (b) of Article II of the Articles of Agreement of the Bank; and WHEREAS, it is expected that the Federation of Nigeria will attain constitutional independence in October 1960; and WHEREAS, pursuant to Section 20 of the By-Laws of the Bank, the Executive Directors, after consultation with representatives of the Government of the Federation of Nigeria, have made recom­ mendations to the Board of Governors regarding this application; Now, THEREFORE, the Board of Governors hereby

RESOLVES: THA T the terms and conditions upon which Nigeria shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) "Bank" means International Bank for Reconstruction and Development. (b) "Articles" means the Articles of Agreement of the Bank. (c) "Dollars" or "$" means United States dollars of the weight and fineness in effect on July 1, 1944. (d) "Subscription" means the capital stock of the Bank subscribed to by a member. (e) "Member" means member of the Bank. 2. Subscription: By accepting membership in the Bank, Nigeria shall subscribe to 667 shares of the capital stock of the Bank at the par value of $100,000 per share. 3. Membership in the Fund: Before accepting membership in the Bank, Nigeria shall accept membership in and become a member of the International Monetary Fund. 4. Payments on Subscription: (a) Before accepting membership in the Bank, Nigeria shall pay to the Bank on account of the SUbscription price of one-half of such shares:

29 (i) Gold or United States dollars equal to 2% thereof; and (ii) An amount in its own currency which, at the appropriate prevailing exchange rate, shall be equal to 18% thereof. (b) With respect to the sUbscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in the currency of the member shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2% and 18% portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors.

5. Representation and Information: Before accepting membership in the Bank, Nigeria shall represent to the Bank that it has taken all action necessary to sign and deposit the instrument of acceptance and sign the Articles as contemplated by paragraph 6 (d) and (e) of this resolution and Nigeria shall furnish to the Bank such information in respect of such action as the Bank may request.

6. Acceptance of Membership: Nigeria shall become a member of the Bank, with a subscription as set forth in paragraph 2 of this resolution, as of the date when Nigeria shall have complied with the following requirements: (a) Become a member of the International Monetary Fund; (b) Made the payments called for by paragraph 4 of this resolution; (c) Furnished the representation, and such information as may have been requested, pursuant to paragraph 5 of this resolution; (d) Deposited with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this resolution; (e) Signed the original copy of the Articles held in the Archives of the Government of the United States of America.

7. Limitation on Period for Acceptance of Membership: Nigeria may accept membership in the Bank pursuant to this resolution until March 31, 1961 provided, however, that, if extra­ ordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which Nigeria may accept membership pursuant to this resolution, the Executive Directors may extend such period. (Adopted September 27, 1960)

RESOLUTION NO. 146

INCREASE IN SUBSCRIPTION OF YUGOSLAVIA TO CAPITAL STOCK OF BANK

RESOLVED:

THA T, pursuant to Article II, Section 3 (b) of the Articles of Agreement of the Bank, the Board of Governors hereby authorizes the acceptance by the Bank of the subscription of Yugoslavia to 267 shares of the capital stock of the Bank in addition to the 800 shares of said capital stock heretofore subscribed by Yugoslavia, upon the following conditions:

30 (a) That the subscription price per share shall be $100,000 in terms of United States dollars of the weight and fineness in effect on July 1, 1944; (b) That Yugoslavia's subscription shall be received by the Bank on or before December 31, 1960, provided, however, that if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of this date, the Executive Directors may extend it; (c) That before such subscription shall be accepted by the Bank, (i) Yugoslavia shall have taken all action which may be necessary to authorize such subscription and shall have furnished to the Bank such information thereon as the Bank may request, and (ii) Yugoslavia shall have paid to the Bank, on account of the SUbscription price of one-half of such additional shares, 2% in gold or United States dollars and 18% in currency of Yugoslavia; and (d) With respect to the SUbscription price of the other one-half of such shares, the 2% portion payable in gold or United States dollars and the 18 % portion payable in the currency of Yugoslavia shall be left uncalled, as set forth in Resolution No. 129, on the same basis as the 2 % and 18 % portions of subscriptions made pursuant to Resolution No. 128 of the Board of Governors. (Adopted September 27, 1960)

RULES FOR THE CONDUCT OF THE EIGHTH REGULAR ELECTION OF EXECUTIVE DIRECTORS

1. Definitions: In these rules, unless the context shall otherwise require, (a) "Articles" means the Articles of Agreement of the Bank. (b) "Board" means the Board of Governors of the Bank. (c) "Chairman" means the Chairman of the Board or a Vice Chairman acting as Chairman. (d) "Governor" includes the Alternate Governor or any temporary Alternate Governor, when acting for the Governor. (e) "Secretary" means the Secretary or any acting Secretary of the Bank. (f) "Election" means the Eighth Regular Election of Executive Directors. 2. Date of Election: The election shall be held during the 1960 Annual Meeting of the Board at a time to be fixed by the Board.

3. Basic Rules-Schedule B: Subject to the adjustments hereinafter set forth, the provisions of Schedule B of the Articles shall apply to the conduct of the election, except that "seven percent" shall be substituted for "fourteen percent" in paragraphs 2 and 5 and "eleven percent" shall be substituted for "fifteen percent" in paragraphs 3, 4 and 5 thereof.

4. Executive Directors To Be Elected: Thirteen Executive Directors shall be elected.

5. Nominations: (a) Any person nominated by one or more Governors entitled to vote in the election shall be eligible for election as Executive Director. (b) Each nomination shall be made on a Nomination Form furnished by the Secretary, signed by the Governor or Governors making the nomination, and deposited with the Secretary. (c) A Governor may nominate not more than one person. (d) Nominations may be made until 12 o'clock noon on the day preceding the election. The Secretary shall post and distribute a list of the persons nominated.

31 6. Ballots: One ballot form shall be furnished to each Governor entitled to vote before a ballot is taken. On any particular ballot only ballot forms distributed for that ballot shall be counted.

7. Supervision of the Election: The Chairman shall supervise the election and shall appoint such tellers and other assistants, and take such other action, as he deems necessary for the conduct of the election.

8. Balloting: Each ballot shall be taken as follows: (a) The roll of members whose Governors are entitled to vote shall be called in alphabetical order. After a member's name is called the Governor for such member shall deposit his signed ballot in the ballot box. (b) When a ballot shall have been completed, the Chairman shall cause the ballots to be counted and shall announce the names of the persons elected before the end of the session at which the election is held. If a succeeding ballot is necessary, the Chairman shall announce the names of the nominees to be voted on, and the members whose Governors are eligible to vote. (c) If the tellers shall be of the opinion that any particular ballot is not properly executed, they shall, if possible, afford the Governor concerned an opportunity to correct it before tallying the results; and such ballot form, if so corrected, shall be deemed to be valid.

9. When on any ballot the number of nominees shall not exceed the number of Executive Directors to be elected, each nominee shall be deemed to be elected by the number of votes received by him on such ballot; provided, however, that if, on such ballot, the votes of any Governor shall be deemed under paragraph 4 of Schedule B to have raised the votes cast for any nominee above eleven percent of the eligible votes, no nominee shall be deemed to have been elected who shall not have received on such ballot seven percent of the eligible votes and a succeeding ballot shall be taken on which any nominee not elected shall be eligible.

10. If, as a result of the first ballot, the number of Executive Directors to be elected in accordance with paragraph 4 above shall not have been elected, a second and, if necessary, further ballots shall be taken. The Governors entitled to vote on such succeeding ballots shall be only (i) those Governors who voted on the preceding ballot for any nominee not elected, and (ii) those Governors whose votes for a nominee elected on the preceding ballot are deemed under para­ graph 4 of Schedule B to have raised the votes cast for such nominee above eleven percent of the eligible votes.

11. The votes of a Governor shall not be deemed under paragraph 4 of Schedule B to have raised the total votes for a nominee above eleven percent of the eligible votes if without the votes of such Governor such total would be more than seven percent but not more than eleven percent of the eligible votes.

12. If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all, of such Governors could be deemed under paragraph 4 of Schedule B to have raised the total votes received by such nominee above eleven percent of the eligible votes, the Chairman shall determine by lot the Governor or Governors, as the case may be, who shall be entitled to vote on the next ballot.

32 13. Abstention from Voting: If a Governor shall abstain from voting on any ballot, he shall not be entitled to vote on any subsequent ballot and his votes shall not be counted, within the meaning of section 4(g) of Article V, towards the election of any Executive Director; provided, however, that if such abstention shall have first occurred on the last of several ballots, the votes of such Governor shall be deemed to have been cast for the election of the Executive Director elected on such ballot by the least number of votes. If, at the time any ballot is taken, a member shall not be represented by a Governor at the session at which the ballot is taken such member, and its Governor, if any, shall be deemed to have abstained from voting on that ballot. 14. Elimination of Nominees: If, on any ballot, two or more nominees shall receive the lowest number of votes, no nominee shall be dropped from the next succeeding ballot, but if the same situation shall continue on such succeeding ballot, the Chairman shall eliminate by lot one of such nominees from the next succeeding ballot. 15. Effective Date of Election: The effective date of the election shall be November 1, 1960. Incumbent elected Executive Directors shall serve through the day preceding such date. 16. General: Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Board. Whenever possible, any such questions shall be put without identifying the members or Governors concerned.

The Rules tor the Conduct ot the Eighth Regular Election were approved by Resolution No. 142, page 27.

33 EXECUTIVE DIRECTORS ELECTED AT EIGHTH REGULAR ELECTION

l. GENGO SUZUKI (Japan), elected by votes of:

Japan ...... 6,910 Thailand ...... 850 Burma ...... 650 Ceylon ...... 400 8,810

2. LOUIS RASMINSKY (Canada), elected by votes of:

Canada...... 7,750 Ireland...... 850 8,600

3. JOHN M. GARLAND (Australia), elected by votes of:

Australia...... 5,580 Union of South Africa...... 2,250 Viet-Nam...... 550 8,380

4. ANDRE VAN CAMPENHOUT (Belgium), elected by votes of:

Belgium ...... 4,750 Austria ...... 1,250 Turkey ...... 1,400 Korea ...... 500 Luxembourg ...... 450 8,350

5. REIGNSON C. CHEN (China), elected by votes of:

China ...... 7,750

6. MOHAMED SHOAIB (Pakistan), elected by votes of:

Pakistan ...... 2,250 United Arab Republic ...... 1,516 Iran ...... 1,150 Saudi Arabia ...... 983 Sudan ...... 450 Iraq ...... 400 Ethiopia ...... 350 Jordan ...... 310 Lebanon ...... 295 7,704

7. PIETER LIEFTINCK (Netherlands), elected by votes of: Netherlands...... 5,750 Yugoslavia...... 1,050 Israel...... 583 7,383

34 EXECUTIVE DIRECTORS ELECTED AT EIGHTH REGULAR ELECTION (Continued)

8. AKE LUNDGREN (Sweden), elected by votes of: Sweden ...... 2,250 Denmark ...... 1,983 Norway ...... 1,583 Finland ...... 1,010 Iceland ...... 400 7,226

9. JORGE MEJIA-PALACIO (Colombia), elected by votes of: Brazil...... 3,983 Philippines ...... 1,250 Colombia ...... 1,183 Haiti ...... 400 Ecuador...... 378 7,194

10. JOSE ARAGONES (Spain), elected by votes of: Italy...... 3,850 Spain...... 2,250 Greece...... 750 6,850

11. OMAR S. ELMANDJRA (Morocco), elected by votes of: Indonesia ...... 2,450 Morocco ...... 950 Malaya ...... 750 Ghana ...... 717 Tunisia ...... 550 Libya ...... 450 Afghanistan ...... 350 6,217

12. JUAN HAUS SOLIS (Bolivia), elected by votes of: Argentina ...... 3,983 Chile ...... 950 Uruguay ...... 355 Bolivia ...... 320 Paraguay ...... 310 5,918

13. LUIS MACHADO (Cuba), elected by votes of: Mexico ...... 1,983 Cuba ...... 950 Peru ...... 600 Venezuela ...... 355 Guatemala ...... 330 EI Salvador...... 310 Honduras ...... 310 Nicaragua ...... 310 Costa Rica ...... 290 Panama ...... 252 5,690

The Governorfor the Dominican Republic having abstained from voting, his votes did not count toward the election of any Executive Director.

35 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING

Country Governor Alternate Governor Adviser

Afghanistan ...... Abdullah Malikyar M. A. Kazimi* Fakir Mohd Munif Argentina ...... Julio Gonzalez del Solar Carlos S. Brignonet Roberto Alemann Ricardo Lumi Juan Pascual Martinez Australia ...... Harold Holt Sir Roland Wilson J. M. Garlandt J. T. Larkin G. A. Low A. W. McCasker M. W. O'Donnell F. C. Pryor J. O. Stone Austria ...... Eduard Heilingsetzer Wilhelm Teufenstein Ernst Rottt Franz Fuchs Edgar Plan Felix Pronay Hubert Schmid Belgium ...... Hubert Ansiaux Jean-Paul van Bellinghen Andre van Campenhout * t Jacques de Groote Maurice Toussaint Bolivia ...... Eufronio Hinojosa Fernando Pou Munt Brazil ...... Sebastiao Paes de Almeida Mauricio C. Bicalho Helio Barroso Gabriel Costa Carvalho* Antonio de Abreu Coutinho Paulo Poock Correa * Jose Lopes Oliveira Burma ...... Thakin Tin U Kyaw Nyun Daw Tin Yi U Soe Saing Canada ...... Donald M. Fleming A. F. W. Plumptre C. L. Readt Grey Hamilton S. J. Handfield-Jones W. A. Kennett D. C. Taylor Ross Wilson Ceylon ...... R. S. S. Gunewardene* P. M. Jayarajan D. W. Rajapatirana * P. H. Siriwardene Chile ...... Walter Muller Alvaro Orrego Luis Aguirre Gunter Koenig Javier Urrutia China ...... Chia-Kan Yen T. K. Chang Kan Leet I-Shuan Sun Beue Tann Martin Wong Kuo Hua Yu Colombia ...... Ignacio Copete Lizarralde Jorge Ospina Delgado* Jorge Mejia-Palaciot Jose Camachot Benllini Galindo Jaime Recaman

* Temporary t Executive Director t Alternate Director

36 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING (Continued)

COllI/try Gorernor Alternate Governor Ad"iser

Costa Rica ...... Alvaro Castro J. Angel Coronas * Juan Hernandez Cuba ...... Gonzalo de la Pezuela Luis Machadot Denmark ...... Kjeld Philip P. Bjorn Olsen Tyge Dahlgaard t Torben Friis J. Borglum Jensen Dominican Republic S. Salvador Ortiz Gabriel Costa Carvalho* Ecuador ...... Jose Ceballos Carrion Juan Jose Aguirre Pericles Gallegos El Salvador ...... Carlos J. Canessa Luis Escalante Arce Ethiopia ...... Yawand-Wossen Mangasha Taffara Deguefe Finland ...... R. v. Fieandt Reino Rossi Eero Asp Heikki Valvanne France ...... Wilfrid Baumgartner Pierre-Paul Schweitzer Rene Larret Jean Cottiert Pierre Cal vet Bernard Clappier Pierre Esteva Andre George Julien-Pierre Koszul Jean de Largentaye Andre de Lattre Roland Tenconi Pierre M. Viaud Jacques Waitzenegger Olivier Wormser Germany ...... Ludwig Erhard Hans Henckel * Otto Donnert Joachim von Spindler* Harry Gornt Ulrich Beelitz Otmar Emminger Wilfried Guth Wilhelm Hanemann Karl Hohmann Franz Klamser Helmut Koinzer Wolfram Langer Otto Pfleiderer Mrs. Elisabeth Scheibe Karl-Gerhard Seeliger Dankmar Seibt Fritz Stedtfeld Eduard Wolf Ghana ...... K. A. Gbedemah H. C. Kessels A. Adomakoh J. O. T. Agyeman R. Akwei K. Amoako-Atta E. R. Hayford A. K. Kwateng Greece ...... Gregory Cassimatis John P. Paraskevopoulos Costa P. Caranicas Guatemala ...... Manuel Bendfeldt J. Max Jimenez-Pinto Jorge A. Montealegret Marco Tulio Benitez Gil Haiti ...... Marcel Daumec Joseph Chatelain Lucien Hibbert Edriss Vincent

* Temporary t Executive Director t Alternate Director 37 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING (Continued)

Country Governor Alternate Governc'r Adviser

Honduras ...... Celeo Davila Juan Milla Bermudez Lempira Bonilla Iceland ...... Petur Benediktsson Jonas H. Haralz* Thorhallur Asgeirsson Benjamin Eiriksson India ...... Morarji R. Desai B. K. Nehru t C. S. Krishna Moorthit L. K. Jha* B. N. Adarkar M. V. Rangachari* J. Ganju P. Govindan Nair I. G. Patel R. V. Subrahmanian V. Y. Tonpe Indonesia ...... Soemarno R. Soerjadi * R. A. Kartadjoemena Khouw Bian Tie Iran ...... General Ali Akbar Zargham Djalaleddin Aghili Ali Akbar Khosropurt Mohammad H. Sadri Iraq ...... Hashim Jawad Abdul Hassan Zalzalah Najdat F. Safwat Ireland ...... T. K. Whitaker IsraeL ...... David Horowitz Jacob Arnon Aryeh Manor A vraham Salmon Italy ...... Donato Menichella Giorgio Cigliana-Piazza Carlo Gragnani t Paolo Baffi Aldo Baldari Guido Forte Giovanni Luciolli Renato de Mattia Ugo Mosca Giovanni de Paolis Giorgio Rota Japan ...... Mikio Mizuta Masamichi Yamagiwa Takeshi Watanabet Y oshisuke Isoda * Toyoo Gyohten Masao Kaya* Shiro Inouye Gengo Suzuki * Y oshiaki Irobe Yusuke Kashiwagi Akira Kaya Hidemichi Kira Yasushi Mieno Takeshi Nakajima Tsunekazu Sakano Hideo Suzuki Jordan ...... Hashem Jayousi Hazem Nuseibeh A. K. Humud* Korea ...... Ye Yong Chun Byong H. Shin * In Suk Choo Won Hoon Chung Sangjin Chyun Jin Nam Park Chung Pum Song Lebanon ...... Andre Tueni Raja Himadeh Libya ...... A. N. Aneizi A. A. Attiga * Luxembourg ...... Pierre Werner Pierre Guill Malaya ...... Tan Siew Sin Abdul Jamil bin Abdul Rais* Ismail bin Mohamed Alit

* Temporary t Executive Director t Alternate Director

38 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING (Continued)

Country Governor Alternate GOI'ernor Adviser

Mexico ...... Antonio Ortiz Mena Raul Martinez-Ostos Mario Ramon Beteta Alfredo Navarrete* Javier Marquez Antonio Ortiz Salinas Gustavo Petricioli Iturbide Manuel Valladares Morocco ...... M' Hamed Douiri Mohamed Amine Bengeloun Omar S. Elmandjrat Mohamed Kasri * Gilbert Pierre Netherlands ...... J. Zijlstra S. Posthuma Miss G. A. Koen C. van der Tak H. M. H. A. van der Valk A. F. M. van der Ven Nicaragua ...... Juan Jose Lugo Marenco Federico E. Lang Ricardo Parrales-Sanchez Norway ...... Arne Skaug Gabriel Kielland Erling Borresen Hallvard Hillestad Pakistan ...... M. Shoaibt M. A. Mozaffar G. Ahmed Wazir Ali N. H. Jafarey W. A. Sheikh Panama ...... Erasmo de la Guardia Julio E. Heurtematte Paraguay ...... Cesar Romeo Acosta Federico Mandelburger Peru ...... Fernando Berckemeyer Emilio Foley Luis Barua Castaneda Carlos Gibson Javier Otero Gaymer Philippines ...... Miguel Cuaderno, Sf. Manuel S. Enverga Fortunato de Leon Gregorio S. Licaros Placido Mapa Manuel Marquez Juan Pajo Gilberto Teodoro Roberto Villanueva Saudi Arabia ...... Ahmed Zaki Saad Spain ...... Mariano Navarro Rubio Juan Antonio Ortiz Gracia Jose Aragonest Jaime Alba Agustin de Alcocer F. Garcia Monco E. Garcia Tejedor J. M. Gonzalez Valles Tomas Lamamie de Clairac Alberto Monreal Epifanio Ridruejo Juan Sarda Sudan ...... Hamzah Mirghani Hamzah Sweden ...... Gunnar Lange Krister Wickman * Lennart Hammarskiold t Carl-Henrie Nauckhoff Thailand ...... Sun thorn Hongladarom Mrs. Suparb Yossundara * Prayad Buranasirit Manas Leeviraphan Nukul Prachuabmoh M. L. Sai Snidvongs

* Temporary t Executive Director t Alternate Director

39 ACCREDITED MEMBERS OF DELEGATIONS AT 1960 ANNUAL MEETING (Continued)

COlllltry Governor Alternate Go.'ernor Adviser

Tunisia ...... Hedi Nouira Abderrazak Rassa * Hassan Belkhodja Salaheddine El Goulli Turkey ...... Ekrem Alican Memduh Aytur* Mahir Ablum Sinasi Arik Mumtaz Baysal KamilOnur Union of South Africa ..... M. H. de Kock A. J. J. van Vuuren:l: A. G. Dunn J. B. de K. Wilmot United Arab Republic ...... Abdel Moneim El Kaissouni lzzat Traboulsi Hassan El Abd Sadek EI Ayoubi Adel El-Gowhari Mohamed Hassan EI-Ibiary Hamed El Sayeh United Kingdom ... Selwyn Lloyd Sir Denis Rickett The Earl of eromert Anthony Barber* G. M. Wilsont Sir Frank Lee* G. R. Bell Sir Robert L. Hall D. F. Hubback M. C. Kennedy G. J. MacGillivray I. Y. Malley R. M. Mays-Smith T. M. O'Neill L. Pliatzky F. J. Portsmore C. Raphael N. M. P. Reilly R. S. Symons R. J. McMoran Wilson United States ...... Robert B. Anderson C. Douglas Dillon John S. Hookert Julian B. Baird* Vance Brand Frank A. Southard, Jr. * Robert Cutler T. Graydon Upton*t Bradley Fisk Alfred Hayes Tom KiIlefer Edwin M. Martin William McC. Martin. Jr. Don Paarlberg . Brent Spence M. S. Szymczak Alfred H. Von Klemperer Henry C. Wallich Samuel C. Waugh William B. Widnall Uruguay ...... Raul Ybarra San Martin Jorge Giucci* Venezuela ...... Rafael Alfonzo Ravard Ernesto Peltzer* Viet-Nam ...... Nguyen Huu Hanh Huynh Van Lang Buu Hoan yugoslavia ...... Nikola Mincev Vladimir Ceric Nikola Miljanict Lazo Janicic Slobodan Martinovic Vaso Milovanovic

* Temporary t Executive Director :l: Alternate Director

40 OBSERVERS AT 1960 ANNUAL MEETING

Cyprus ...... R. D. Theocharis

Laos ...... Tianethone Chantharasy

Nepal...... Himalaya Shumsher Rana

Nigeria ...... W. W. Woodall S. O. Oti

Portugal ...... A. Cabral Pessoa

Bank for International Settlements ...... Guillaume Guindey H. H. Mandel

Contracting Parties to the General Agreement on Tariffs and Trade ...... Eric Wyndham White

European Economic Community ...... Robert Marjolin Franco Bobba Robert Triffin

European Investment Bank ...... Giandomenico Sertoli

Food and Agriculture Organization of the United Nations .... c. W. McLean

Inter-American Development Bank ...... Felipe Herrera Robert Menapace Milic Kybal Jose C. Cardenas

International Labor Organization ...... David S. Blanchard

Organisation for European Economic Co-operation ...... Gunter Keiser Ottino Caracciolo di Forino Francis M. L. Black

Organization of American States ...... Gustavo Polit Theodore A. Sumberg Michael Zuntz

United Nations ...... Philippe de Seynes Roberto M. Heurtematte Henry S. Bloch Paul Hoffman T. A. Raman David Pollock

United Nations Educational, Scientific and Cultural Organization ...... Rene Maheu Guillermo Nannetti

World Health Organization ...... Dr. Rodolphe L. Coigney

41 OFFICERS OF THE BOARD OF GOVERNORS AND PROCEDURES COMMITTEE FOR 1960-61

OFFICERS Chairman ...... Thailand Vice Chairman ...... India

PROCEDURES COMMITTEE Chairman ...... Thailand Vice Chairman ...... India Reporting Member ...... Argentina Members ...... Austria China Denmark Ethiopia France Germany Guatemala Jordan Luxembourg Malaya Morocco Spain Turkey United Kingdom United States Venezuela

42