INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized 1985 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS SUMMARY PROCEEDINGS Public Disclosure Authorized Public Disclosure Authorized Seoul, Republic of Korea October ~ll, 1985 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION INTERNATIONAL DEVELOPMENT ASSOCIATION 1985 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS SUMMARY PROCEEDINGS Seoul, Republic of Korea October 8-11, 1985 INTRODUCTORY NOTE The 1985 Annual Meeting of the Board of Governors of the International Bank for Reconstruction and Development, held jointly with that of the Inter­ national Monetary Fund. took place in Seoul. Republic of Korea, October 8- 11 (inclusive). The Honorable Mamoudou Toure. Governor of the Bank and Fund for Senegal, served as Chairman. The Annual Meetings of the Bank's affiliates. the International Finance Corporation (lFC) 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. T. T. THAHANE Vice President and Secretarv The World Bank Washington. D.C. lanuary. 1986 III CONTENTS Page Opening Remarks by Chun 000 Hwan President of the Republic of Korea Opening Address by the Chairman Mamoudou Toure Governor of the Bank and Fund for Senegal ...................... 5 Annual Address by A. W. Clausen President of the World Bank ....................................... 16 Report by Ghulam Ishag Khan Chairman of the Development Committee ......................... 37 Statements by Governors and Alternate Governors ........................ 41 Page Page * Algeria ...................... 41 Lesotho ..................... 134 Australia .................... 43 Luxembourg ................ 137 Austria ...................... 48 Malaysia ................... 140 Bangladesh .................. 50 Malta ....................... 142 Belgium ..................... 54 Nepal ....................... 146 *Brazil ....................... 56 Netherlands ................. 149 Bolivia ...................... 59 New Zealand ............... 154 Canada ...................... 63 Pakistan .................... 157 China ........................ 67 Papua New Guinea ......... 161 *Denmark .................... 68 Paraguay ................... 163 Egypt ........................ 70 Peru ........................ 166 Fiji .......................... 74 St. Christopher and Nevis .. 176 France ....................... 77 *Solomon Islands ............ 182 Germany .................... 80 South Africa . .. 184 Greece ....................... 85 Spain ....................... 187 Hungary ..................... 87 Sri Lanka ................... 191 India ........................ 91 *Sweden ..................... 194 Indonesia .................... 93 Thailand .................... 197 Iran, I.R. of ................. 99 Tonga ...................... 199 Ireland ...................... 105 United Kingdom ............ 200 Israel ....................... 108 United States ............... 205 Italy ........................ III *Venezuela .................. 214 *Jamaica ..................... 118 Western Samoa ............. 217 Japan ....................... 121 Yugoslavia ................. 218 Korea ...................... 130 *Zaire ....................... 219 Lao People's Democratic Republic ................ 132 * Speaking on behalf of 1I RrouP oj countries v Page Concluding Remarks by Mr. Clausen ...................................... 226 Concluding Remarks by the Chairman, Mamoudou Toure ................. 229 Remarks by Ramiro Zambrano Cardenas, Temporary Alternate Governor of the Fund for Colombia .......... 231 Documents of the Boards of Governors .................................... 233 Schedule of Meetings ................................................... 233 Provisions Relating to the Conduct of the Meetings ..................... 234 Agendas ................................................................. 235 Joint Procedures Committee ............................................... 236 Report I ................................................................. 237 Report III ............................................................... 239 Resolutions Adopted by the Board of Governors of the Bank Between the 1984 and 1985 Annual Meetings ...................... 240 No. 402 ..... Direct Remuneration of Executive Directors and their Alternates ........................................ 240 No. 403 ..... Membership of the Kingdom of Tonga .................... 240 Resolutions Adopted by the Board of Governors of the Bank at the 1985 Annual Meeting ........................................ 243 No. 404 ..... Financial Statements, Accountants' Report and Administrative Budget. .................................... 243 No. 405 ..... Allocation of Net Income ................................. 243 No. 406 ..... Multilateral Investment Guarantee Agency ................ 244 No. 407 ..... Resolution of Appreciation ................................ 245 Resolutions Adopted by the Board of Governors of IFC Between the 1984 and 1985 Annual Meetings ...................... 246 No. 145 ..... Membership of the Hungarian People's Republic .......... 246 No. 146 ..... Membership of the Kingdom of Tonga .................... 247 Resolutions Adopted by the Board of Governors of IFC at the 1985 Annual Meeting ........................................ 249 No. 147 ..... Financial Statements, Accountants' Report and Administrative Budget. .................................... 249 No. 148 ..... Resolution of Appreciation ................................ 249 VI Page Resolutions Adopted by the Board of Governors of IDA Between the 1984 and 1985 Annual Meetings ..................... , 250 No. 135 ..... Membership of the Hungarian People's Republic .......... 250 No. 136 ..... Membership of the Kingdom of Tonga .................... 251 Resolutions Adopted by the Board of Governors of IDA at the 1985 Annual Meeting ....................................... , 254 No. 137 ..... Financial Statements, Accountants' Report and Administrative Budget. .................................... 254 No. 138 ..... Resolution of Appreciation ................................ 254 Reports of the Executive Directors of the Bank ........................... , 255 Allocation of Net Income ............................................... 255 Convention Establishing the Multilateral Investment Guarantee Agency ................................................. , 256 Report of the Chairman of the Development Committee .................. , 260 Annual Report of the Development Committee ............................ 261 Accredited Members of Delegations at 1985 Annual Meetings ........... , 274 Observer at 1985 Annual Meetings ........................................ 292 Representatives of International Organizations ............................ , 293 Executive Directors, Alternates and Advisors ............................. , 294 Officers of the Boards of Governors and Joint Procedures Committee for 1985-86 ............................................. 295 Reference List of Principal Topics Discussed .............................. 296 vii OPENING REMARKS BY H. E. CHUN DOO HWAN PRESIDENT OF THE REPUBLIC OF KOREA It is a great pleasure today to witness the opening of the joint Annual Meetings of The World Bank and the International Monetary Fund here in Seoul. On behalf of the Korean people, and in the name of the Government of the Republic of Korea, I extend my sincere welcome to all of you who have come from afar to visit our country. First of all, I wish to praise the historic achievements of the two institutions in re-establishing anew an economic order out of chaos that prevailed after World War II. We should all appreciate the work of economic reconstruction to which the Bank and the Fund made an indispensable contribution. In particular, I have the greatest respect for the individual countries that cooperated closely with the two institutions to overcome the difficult challenges of the postwar era. The Korean people feel that there is a special significance to your fortieth joint meetings of the Bank and the Fund, because it has been during these forty years that Korea has managed to raise itself from one of the world's most underprivileged and disadvantaged countries to one of the world's most promising and developing. These were difficult strides, but we are grateful that the efforts proved to be worthwhile. Now it is my wish, indeed my duty, to express Korea's deep gratitude to your two institutions for the assistance, support, and encouragement which my nation received in the course of its development. And I want to avail myself of this solemn occasion to pledge Korea's firm commitment to fulfill its responsibilities as a member of your organizations. We all live today in a global community of interdependent nations. Increased interaction and specialization have made international cooperation imperative. No nation can manage its economy successfully without taking into account its economic relations with other countries. Today, a nation by itself can achieve neither security nor prosperity, unless its policies are geared to the common well-being of all nations.