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World Bank Document INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized 1978 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS SUMMARY PROCEEDINGS Public Disclosure Authorized Public Disclosure Authorized WASHINGTON, D.C. SEPTEMBER 25-28, 1978 Public Disclosure Authorized INTRODUCTORY NOTE The 1978 Annual Meeting of the Board of Governors of the Interna- tional Bank for Reconstruction and Development, held jointly with that of the International Monetary Fund, took place in Washington, D.C., Sep- tember 25-28 (inclusive). The Honorable Tengku Razaleigh Hamzah, Governor of the Fund and Bank for Malaysia, served as Chairman. The Annual Meetings of the Bank's affiliates, the International Finance Cor- poration (IFC) and the International Development Association (IDA), were held in conjunction with the Annual Meeting of the Bank. The Summary Proceedings record, in alphabetical order of member countries, the texts of statements by Governors relating to the activities of the Bank, IFC and IDA. The texts of statements concerning the IMF are published separately by the Fund. P. N. DAMRY Vice President and Secretary THE WORLD BANK Washington, D.C. December, 1978 v CONTENTS Page Opening Remarks by Jimmy Carter, President of the United States ......................... I Opening Address by the Chairman, Tengku Razaleigh Hamzah Governor of the Bank and Fund for Malaysia ............... 5 Annual Address by Robert S. McNamara, President of the World Bank ........................... 12 Report by Cesar E. A. Virata, Chairman of the Development Committee ................. 40 Statements by Governors and Alternate Governors ................ 43 Page Page Afghanistan ............ 43 Maldives .............. 125 Australia .............. 48 Mauritius .............. 126 Austria ................ 50 Morocco .............. 129 *Bahamas .............. 53 Nepal ................ 131 Bangladesh ............. 55 Netherlands ........... 133 Belgium ............... 62 New Zealand ........... 135 *Cameroon ............. 66 Nicaragua ............. 138 Canada ............... 71 Pakistan ............... 139 China ................. 74 Papua New Guinea ...... 143 *Denmark .............. 76 Paraguay ............. 147 Egypt ................ 80 Romania .............. 152 Fiji ................... 83 Solomon Islands ........ 155 France ................ 85 South Africa .......... 157 *Germany .............. 90 Spain ................ 159 India ................. 95 Sri Lanka ............. 162 Indonesia ............. 100 Suriname ............. 165 Ireland ............... 103 Thailand ............. 167 Israel ................. 104 Turkey ............... 168 Italy ................. 106 United Kingdom ....... 170 Japan ................ 110 United States .......... 174 Korea ................ 115 *Uruguay ............. 179 Luxembourg ........... 117 Western Samoa ........ 182 Malaysia .............. 121 Yugoslavia ............ 184 :Speaking on behalf of a group of countries. vii Concluding Remarks by Mr. McNamara ...................... 186 Concluding Remarks by Chairman, Tengku Razaleigh Hamzah ..... 187 Remarks by R. D. Muldoon, Governor of the Fund for New Zealand ................. 188 Documents of the Boards of Governors ....................... .189 Schedule of Meetings .................................... 189 Provisions Relating to the Conduct of the Meetings ............ 190 Agendas .............................................. 191 Reports of the Joint Procedures Committee .................... 192 Report I .............................................. 192 Report II ............................................. 193 Report IV ............................................ 194 Report V ............................................. 195 Resolutions Adopted by the Board of Governors of the Bank Between the 1977 and 1978 Annual Meetings ............ 197 No. 321 . Agreement with the United Nations Development Programme ....................................... 197 No. 322 ... Agreement with the International Fund for Agricultural Development ............................ 197 No. 323 . .. Director Remuneration of Executive Directors and their Alternates .................................... 197 No. 324 . .. Benefits of Executive Directors and their Alternates. 198 No. 325 ... Rules for the 1978 Regular Election of Executive Directors ................................. 198 No. 326 ... Membership of the Solomon Islands .............. 198 Resolutions Adopted by the Board of Governors of the Bank at the 1978 Annual Meeting .......................... 201 No. 327 .. Review of the Performance of the Development Committee ........................................ 201 No. 328 .. Membership of the Republic of Cape Verde ........ 202 No. 329 .. Financial Statements, Accountants' Report and Administrative Budget ............................. 203 No. 330 .. Allocation of Net Income ...................... 204 Resolutions Adopted by the Board of Governors of IFC Between 1977 and 1978 Annual Meetings ............... 205 No. 100 ... Increase of Capital ........................... 205 No. 101 ... Increase in Subscription by Argentina Pursuant to Article II, Section 2(d) of the Articles of Agreement of the International Finance Corporation ..................... 210 No. 102 .. Membership of the Republic of Mali ............. 211 Resolution Adopted by the Board of Governors of IFC at the 1978 Annual Meeting .......................... 213 No. 103 . Financial Statements, Accountants' Report and Administrative Budget .............................. 213 viii Resolution Adopted by the Board of Govemors of IDA Between 1977 and 1978 Annual Meetings ............... 213 No. 106 . Agreement with the International Fund for Agricultural Development ............................ 213 Resolutions Adopted by the Board of Governors of IDA at the 1978 Annual Meeting .......................... 214 No. 107 ... Membership of the Republic of Cape Verde ........ 214 No. 108 ... Financial Statements, Accountants' Report and Administrative Budget ............................... 216 Report of the Chairman of the Development Committee .......... 217 Review of the Performance of the Development Committee ........ 218 Report of the Executive Directors of the Bank and IDA .......... 223 Proposed Cooperation Agreement with the International Fund for Agricultural Development .................... 223 Reports of the Executive Directors of the Bank ................. 230 Proposed Agreement with the United Nations Development Programme ....................................... 230 Allocation of Net Income ................................ 250 Executive Directors' Administrative Arrangements ............ 251 1978 Regular Election of Executive Directors ................ 252 Rules for the 1978 Regular Election of Executive Directors ........ 253 Executive Directors Elected at 1978 Regular Election ............ 256 Reports of the Board of Directors of IFC ...................... 259 Increase in Authorized Capital of the Corporation and Increase of Members' Subscriptions thereto .............. 259 Increase in Subscription by Argentina Pursuant to Article II, Section 2(d) of the International Finance Corporation ..... 288 Annual Report of the Development Committee ................. 289 Accredited Members of Delegations at 1978 Annual Meetings ..... 306 Observers at 1978 Annual Meetings .......................... 335 Executive Directors, Alternates and Advisors ................... 338 Officers of the Boards of Governors and Joint Procedures Committee for 1978-79 .............................. 339 Reference List of Principal Topics Discussed ................... 341 Ix i OPENING ADDRESS BY THE PRESIDENT OF THE UNITED STATES JIMMY CARTER Mr. Chairman, Managing Director de Larosiere, President McNamara, Governors of the Fund and the Bank, and distinguished visitors: On be- half of the American people, I want to welcome you to Washington again for your thirty-third Annual Meetings. We meet as a group, dedicated to the cause of international coopera- tion. In the political field, you and I share the belief that cooperation among leaders can lead to peace. We have learned that lesson once again in the last few days. I know that you will join me in saluting the statesmanship and the cour- age of President Anwar Sadat and Prime Minister Menachem Begin. Your tremendous influence as leaders in your own nations can con- tribute greatly to maintaining the momentum toward peace both in the Middle East and throughout the world. In the economic field, also, cooperation brings large benefits to the people who look to us for leadership. Three decades of existence of the Fund and the Bank have brought progress and a better life for the people of the world. Like you, I want to build on that record to achieve still further economic cooperation, progress, and a better life. Since your meeting last year, our countries acting together have made tangible progress on world economic problems. The issues that remain, as you and I well know, are very difficult. But they, like other difficult questions, are not insoluble. You assembled in this room are the economic leaders of the world. The task before you is to consolidate past gains and then to push ahead in ways that will foster economic growth in both developing and the indus- trialized nations. Our goal is to achieve progress for all peoples, not just a few. The basic strategy has already been agreed. In Mexico City, at the IMF Interim Committee, agreement
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