Public Disclosure Authorized International Bank for Reconstruction and Development International Development Association Public Disclosure Authorized SUMMARY PROCEEDINGS 1961 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS Public Disclosure Authorized Vienna, Austria September 18-22, 1961 Public Disclosure Authorized INTRODUCTORY NOTE HE 1961 ANNUAL MEETING of the Board of Governors of the T International Bank for Reconstruction and Development, held jointly with that of the International Monetary Fund, was held in Vienna, Austria, September 18-22 (inclusive) under the chairman­ ship of the Honorable Sunthom Hongladarom, Minister of Finance of Thailand. The Annual Meeting of the Bank's affiliate, the Inter­ national Development Association (IDA) was held in conjunction with the Bank's meeting. The Annual Meeting of the International Finance Corporation, the proceedings of which have been issued separately, also took place in the same period. M. M. MENDELS Secretary INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D. C. November 15,1961 1961 ANNUAL MEETINGS FINAL SCHEDULE Saturday SEPTEMBER 16 4:00 p.m.-Procedures Committees Monday SEPTEMBER 18 10:00 a.m.-JOINT BOARDS -Address by the President of Austria -Address by the Chairman -Joint Procedures Report I -Annual Address, Managing Director of Fund Tuesday SEPTEMBER 19 10:00 a.m.-BANK AND IDA BOARDs-Joint Procedures Report II -Annual Address, President of Bank and IDA -Annual Discussion 3:00 p.m.- -Annual Discussion (continued) Wednesday SEPTEMBER 20 10:00 a.m.-FuND BOARD -Joint Procedures Report III -Annual Discussion 3:00 p.m. -Annual Discussion (continued) Thursday SEPTEMBER 21 10:00 a.m.-IFC BOARD -Joint Procedures Report IV -Annual Address, President of IFC -Annual Discussion 4:30 p.m. -Procedures Committees Friday SEPTEMBER 22 10:00 a.m.-JOINT BOARDS -Joint Procedures Report V -Comments by Heads of Organizations -Conclusion ii CONTENTS Page ADDRESS BY DR. ADOLF SCHARF. PRESIDENT OF THE AUSTRIAN REPUBLIC ............... ADDRESS BY THE CHAIRMAN, THE HONORABLE SUNTHORN HONGLADAROM, MINISTER OF FINANCE OF THAILAND.... .. .. .. 2 ANNUAL ADDRESS BY EUGENE R. BLACK, PRESIDENT OF THE BANK...... 7 COMMENTS OF EUGENE R. BLACK, PRESIDENT OF THE BANK ON DISCUSSION OF ANNUAL REPORT....................................................... 13 STATEMENTS REFERRING TO THE DEATH ON SEPTEMBER 18. 1961, OF DAG HAMMARSKJOLD. SECRETARy-GENERAL OF THE UNITED NATIONS Statement by the Chairman, The Honorable Sunthorn Hongladarom... 15 Statement by the President of the Bank, Eugene R. Black. .. 15 Statement by the Managing Director of the Fund, Per Jacobsson. 16 CLOSING ADDRESS BY THE CHAIRMAN... 17 REPORTS OF PROCEDURES COMMITTEES: REPORT I... .. 18 Provisional Schedule. .. 20 Provisions Relating to the Conduct of the Meetings. .. 21 Agendas. .. 22 & 23 REPORT II .................................................................. 24 REPORT V .................................................................. 27 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK BETWEEN 1960 AND 1961 ANNUAL MEETINGS ..................................... 29 NO. 147 ..... Amendment of Section 14(c) of By-Laws of Bank .................... 29 NO. 148 ..... Membership of Cyprus ........................................... 29 NO. 149 ..... Membership of New Zealand ..................................... 30 NO. 150 ..... Membership of Dominican Republic ............................... 32 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK AT THE 1961 ANNUAL MEETING ................................................. 33 NO. 151 ..... Financial Statements, Auditors' Report and Budget. ................. 33 NO. 152 ..... Membership of Liberia ........................................... 33 NO. 153 ..... Membership of Sierra Leone ...................................... 34 NO. 154 ..... Membership of Togo ............................................ 36 NO. 155 ..... Membership of Senegal .......................................... 37 III CONTENTS Page RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA BEFORE 1961 ANNUAL MEETING........... .. 39 NO.1 ....... Extension of Period for Completing Membership. .. 39 No.2 ....... Agreement Between the United Nations and the Association........... 39 NO.3 ..•.... Membership of Federation of Nigeria. .. 40 No.4 ....... Extension of Period for Completing Membership .................... , 40 RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA AT THE 1961 ANNUAL MEETING. • . .. .. .. .• 41 NO.5 ....... Financial Statements, Auditors' Report and Budget. .. 41 No.6 ....... Membership ofCypn:ls............................................ 41 No.7 ....... Membership of Liberia. .. 42 No.8 ....... Membership of Sierra Leone. .. 43 No.9 ....... Membership of Togo. .. 43 NO. 10 ...... By-Laws. .. 44 NO. 11 ...... Procedures Committee. .. 44 NO. 12 ...... Membership of Senegal. .. 45 ACCREDITED MEMBERS OF DELEGATIONS AT 1961 ANNUAL MEETINGS. .. .. 46 EXECUTIVE DIRECTORS AND ALTERNATE DIRECTORS AT 1961 ANNUAL MEETINGS. •. •• . •.. 52 OBSERVERS AT 1961 ANNUAL MEETINGS. .•• .. • . .•• . •. •• .• . • .• . .. •• .. 53 OFFICERS OF THE BOARDS OF GOVERNORS AND PROCEDURES COMMITTEES FOR 1961-62 ...... , 55 iv ADDRESS BY THE PRESIDENT OF THE AUSTRIAN REPUBLIC, DR. ADOLF SCHARF T GIVES ME GREAT PLEASURE to welcome the the International Monetary Fund would open up a I Governors of the International Bank for Recon­ new era of cooperation between large and small struction and Development, of the International countries in the monetary field, a cooperation de­ Monetary Fund, of the International Finance Cor­ signed, amongst other objectives, to avoid the recur­ poration, and the International Development Asso­ rence of the type of economic crisis humanity had ciation, on behalf of the Austrian Republic. suffered from for generations. The Austrians consider it a great honor and privi­ For me the significance of the World Bank and lege to have had their capital chosen as the location the Monetary Fund lies mainly in the refutation for this year's Assembly. I hope that your consulta­ their activities give to the old assertion that people tions will lead to the desired results and that all par­ are incapable of learning the lessons of history. The ticipants will enjoy their stay. Rest assured that German professor and economist, Noll von der Nah­ everything will be done to facilitate your work and mer, has written the following on the economic to make the time you spend in Vienna profitable and crisis between the two World Wars: "It is very pleasant. depressing to find that the world crisis and world The Assembly of the World Bank and its affiliated inflation could have been avoided or at least attenu­ institutions and the Monetary Fund constitute the ated in its effects and shortened in its duration, had greatest concentration of knowledge and experience appropriate counter-measures been taken. Since in the field of finance. In your capacity, as heads of then, the science of economics has widened in scope ministries of finance and central banks, and as inter­ and deepened in perception. We have at our dis­ national bankers, you continually make decisions posal today a whole arsenal of weapons to fight which not only determine direction and speed of economic depressions." May I add, that in the hands economic development in a large part of the world, of the International Bank and the International but affect the personal destinies of millions of people. Monetary Fund these weapons have proved to be The realization that close cooperation between extraordinarily effective. large and small countries is the best way to avoid The economic development of Austria in the post­ economic setbacks and depressions led to the crea­ war years gives a good example of the value of inter­ tion of the International Bank and the International national financial assistance. Those of you who Monetary Fund. It did so at a time the Second visited this country 15 years ago and who see it World War was still demanding its daily sacrifice in again today will readily notice the difference. In human lives and causing destruction in all parts of 1946 little more than ash and rubble were left of the world. the industrial centers. In many cases, the workmen From the very beginning, Austria has learnt to and employees cleared the sites on their own initia­ appreciate the value of the kind of international tive and set the few remaining machines in motion. cooperation embodied in the Articles of the Bretton Step by step the capacities for production were built Woods Agreements. Our little country had suffered up which now supply the population with their cur­ severely from the international crises which afflicted rent needs and assure the financial independence of the world, particularly the one of 1929. When the the country. Austrian Republic was resurrected in 1945, we real­ The credit for this goes in the first place to the ized that the founding of the International Bank and Austrian people. Without the self-discipline and the 1 spirit of sacrifice with which they assumed the task and compromise. of reconstruction and put an end to the postwar infla­ Abandoned by the rest of the world and torn by tion, little could have been achieved. We are well internal strife, Austria was in a very difficult situa­ aware, however, that the process of recovery, a tion between the two wars. The passions of oppos­ process which transformed a country ravaged by war, ing groups in that time reached such