10911 * VOL. 2 International Bank for Reconstruction and Development A P I E N D I C E S TENTH ANNUAL REPORT * 1 9 5 4-1 9 5 5 International Bank for Reconstruction and Development A P P E N D I C E S TENTH ANNUAL REPORT * 1954-1955 WASHINGTON 25, D.C. contents Appendix Page A Balance Sheet . . . . . . . . . . . . . . . . . 4 B Comparative Statement of Income and Expenses . . . . . . . 6 C Statement of Currencies Held by the Bank . . . . . . . . . 7 D Statement of Subscriptions to Capital Stock and Voting Power . . . 8 E Funded Debt of the Bank . . . . . . . . . . . . . 9 F Statement of Loans . . . . . . . . . . . . . . . 10 G Notes to Financial Statements . . . . . . . . . . . . 22 H Opinion of Independent Auditor . . . . . . . . . . . 24 I Loans and Advisory Assistance: Country-by-Country Summary . . 25 Africa... .................................. 26 Asia .................................................. 28 Australia ............................................... 35 Europe ................................................ 36 Western Hemisphere . . . . . . . . . . . . . . 42 J Bank Loans Classified by Purpose and Area . . . . . . . . 51 K Administrative Budget for the Fiscal Year Ending June 30, 1956 . . 52 L Voting Power and Subscriptions of Member Countries . . . . . 53 M Governors and Alternates . . . . . . . . . . . . . 54 N Executive Directors and Alternates and their Voting Power . . . . 55 0 Principal Officers of the Bank . . . . . . . . . . . . 57 APPENDIX A Balance Sheet EXPRESSED IN UNITED STATES CURRENCY ASSETS Due from Banks and Other Depositories (See APPENDIX C) Member currencies, including $10,421,043 United States dollars Unrestricted ......................................... $ 14,017,477 Subject to restrictions-NOTE B . . . . . . . . 101,063,415 $115,080,892 Non-member currencies . . . . . . . . . . . 7,947,336 $ 123,028,228 Investment Securities United States Government obligations ($395,249,000 face amount; at cost plus accumulated discount and less amortized premium) .. . . . . . . . . $394,991,672 Canadian Government obligations (Can $40,675,000 face amount; at cost plus accumulated discount and less amortized premium). 37,101,866 United Kingdom Government obligations (£3,625,000 face amount; at cost) . . . . . . . . 10,052,414 Swiss Government obligations (Sw fr 20,000,000 face amount; at cost) . . . . . . 4,630,599 $446,776,551 Accrued interest . . . . . . . . . . . . . 2,415,768 449,192,319 Receivable on Account of Subscribed Capital (See APPENDIX D) Receivable in United States currency Calls on subscription to capital stock-NOTE C . . . . $ 2,730,000 Receivable in other member currencies-NOTE B Non-negotiable, non-interest-bearing, demand notes $832,076,642 Amounts required to maintain value of currency holdings . . . . . . . . . . 3,257 832,079,899 834,809,899 Effective Loans Held by Bank (See APPENDIX F)-NOTE D (Including undisbursed balance of $442,185,762) . . . . 1,795,552,265 Accrued Interest, Commitment and Service Charges on Loans-NOTE D . . . 11,884,630 Receivable from Purchasers on Account of Effective Loans Sold or Agreed to be Sold . . . . . . . . . . . 30,739,043 Other Receivables and Other Assets . . . . . . . . 641,708 Special Reserve Fund Assets-NOTE E Due from Banks-member currency-United States . . . $ 258 Investment securities-United States Government obligations ($59,076,000 face amount; at cost plus accumulated discount) 59,022,028 Accrued loan commissions-NOTE D . . . . . . . . 3,234,455 62,256,741 Staff Retirement Plan Assets (Segregated and held in trust) . . . . . . . . . . 3,422,969 Total Assets . . . . . . . . . . . . $3,311,527,802 .4- APPENDIX A June 30, 1955 See Note A of Notes to Financial Statements, Appendix G [T.ABILITJES, RESERVES AND CAPITAL Liabilities Accounts payable and accrued expenses, including $8,364,889 bond interest $ 8,882,855 Deposit for subscription to capital stock-Note General . . . . . . . 2,000,000 Collection on loans in advance of due date . . . . . . . . . . . 431,562 Undisbursed balance of loans (See APPENDIX F) On loans held by Bank . . . . . . . . . . . . . . . . $ 442,185,762 On loans sold or agreed to be sold . . . . . . . . . . . . . 13,656,099 455,841,861 Funded debt (See APPENDIX E) (Of this amount $23,527,103 is due within one year) . . . . . . . . 851,590,413 Bonds called for redemption not presented . . . . . . . . . . . $ 41,111 Less funds on deposit with Fiscal Agent therefor . . . . . . . . . 41,111 - Reserves for Losses Special reserve-NOTE E . . . . . . . . . . . . . . . . $ 62,256,741 Supplemental reserve against losses on loans and guarantees-NOTE F . . . 121,501,401 183,758,142 Staff Retirement Plan Reserve . . . . . . . . . . . . . . . 3,422,969 Capital (See APPENDIX D) Capital stock Authorized 100,000 shares of $100,000 par value each Subscribed 90,280 shares . . . . . . . . . . . . . . . $9,028,000,000 Less-Uncalled portion of subscriptions-NOTE G . . . . . . . 7,222,400,000 1,805,600,000 Contingent Liability-LOANS SOLD UNDER GUARANTEE-NOTE H . . $18,821,400 Total Liabilities, Reserves and Capital . . . . . . . . . . $3,311,527,802 *5.- APPENDIX B Comparative Statement of Income and Expenses FOR THE FISCAL YEARS ENDED JUNE 30, 1954 AND JUNE 30, 1955 EXPRESSED IN UNITED STATES CURRENCY-See Note A of Notes to Financial Statements, Appendix G July .1-June 30 1953-1954 1954-1955 Income Interest earned on investments . . . . . . . . . . . . . . . $ 9,381,722 $ 9,682,052 Income from loans: Interest ........................................37,785,728 44,327,397 Commitment charges . . . . . . . . . . . . . . . . . 3,057,763 3,643,206 Commissions ..................................... 11,713,368 13,306,897 Service charges.. . . . . . . . . . . . . . . . . . . 90,804 192,814 Other income . . . . . . . . . . . . . . . . . . . . 231,912 692,753 Gross Income . . . . . . . . . . . . . . . . . $62,261,297 $71,845,119 Deduct-Amount equivalent to commissions appropriated to Special Reserve-NOTE E . . . . . . . . . . . 11,713,368 13,306,897 Gross Income Less Reserve Deduction . . . . . . . . . . $50,547,929 $58,538,222 Expenses Administrative expenses: Personal services . . . . . . . . . . . . . . . . . . $ 3,532,341 $ 3,767,648 Fees and compensation . . . . . . . . . . . . . . . . 462,786 567,006 Representation ....................................67,927 75,216 Travel .........................................767,225 834,700 Supplies and material . . . . . . . . . . . . . . . . . 42,230 51,884 Rents and utility services . . . . . . . . . . . . . . . . 427,102 545,340 Communication services . . . . . . . . . . . . . . . . 130,986 168,538 Furniture and equipment . . . . . . . . . . . . . . . 37,218 69,793 Books and library services . . . . . . . . . . . . . . . 66,198 68,722 Printing ....................... .............. ....50,758 74,099 Contributions to staff benefits . . . . . . . . . . . . . . 359,864 391,801 Insurance .......................................21,786 24,501 Handling and storage of gold . . . . . . . . . . . . . . 687 Other expenses.. . . . . . . . . . . . . . . . . . . 5,294 9,027 Total Administrative Expenses . . . . . . . . . . . . $ 5,972,402 $ 6,648,275 Interest on bonds . . . . . . . . . . . . . . . . . . 20,649,318 26,048,451 Bond issuance and other financial expenses-NOTE I . . . . . . . . . 3,617,806 1,162,009 Gross Expenses . . . . . . . . . . . . . . . . $30,239,526 $33,858,735 Net Income-Appropriated to Supplemental Reserve against losses on loans and guarantees-NOTE F . . . . . . . . . . $20,308,403 $24,679,487 *6- APPENDIX C * u*' C,zelIr of Currencies Field bvy tl-he P.' JUNE 30, 1955 See Note A of Notes to Financial Statements, Appendix G Member Currencies Amount expressed Total expressed Unit of in member currency in United States Member currency (Restricted) Rate of exchange dollars Australia ........................... Pound 150,966 $ = 0.4464 $ 338,163 Austria ............................ Schilling 1,345,208 $ = 26.00 51,739 Belgium ............................ Franc 31,449,610 $ = 50.00 628,992 Bolivia ......... ...... .. Boliviano 2,249,308 $ = 190.00 11,838 Brazil ......... ...... .. Cruzeiro 347,677,296 $ = 18.50 18,793,367 Burma ......... ...... .. Kyat 61,568 $ = 4.7619 12,929 Canada ......... ........ Dollar 4,261,071 $ = 1.10 3,873,701 Ceylon ......... ...... .. Rupee 75,794 $ = 4.7619 15,917 Chile ......... ...... .. Peso 688,399,517 $ = 110.00 6,258,177 China . . . . . . . . . Gold Yuan 21,544,341 $ = 20.00 1,077,217 Colombia ........ ...... . Peso 12,110,611 s = 1.949981 6,210,631 Costa Rica .................. .......Colon 1,984,955 $ = 5.615 353,509 Cuba ................... ......... Peso 51,702 $ = 1.00 51,702 Denmark ........ ...... . Krone 3,176,796 $ = 6.90714 459,929 Dominican Republic . . . . . Peso 972 $ = 1.00 972 Ecuador ............................ Sucre 8,282,641 $ = 15.00 552,176 Egypt ............................ Pound 16,132 $ = 0.3482 46,324 El Salvador . . . . . . . . Colon 423,142 $ = 2.50 169,257 Ethiopia ........................... Dollar 1,265,173 S = 2.48447 509,232 Finland ............................ Markka 1,570,162,604 S = 230.00 6,826,794 France ............................ Franc 1,693,537,829 $ = 349.60 4,844,216 Germany ........................... Mark 3,032,722 $ = 4.20 722,077 Greece ............................ Drachma 22,420,000 S = 5.00 4,484,000 Guatemala .......................... Quetzal 344,030 $ = 1.00 344,030 Haiti ............................ Gourde 32,927 $ = 5.00 6,585 Honduras .......................... Lempira 348,104 $ = 2.00 174,052 Iceland ............................ Krona 2,835,003 $ = 16.2857 174,079 India ............................ Rupee 2,944,483 $ = 4.7619 618,341 Indonesia . . . . . . . . Rupiah 2,177,975 $ 11.40 191,050 Iran ............................ Rial 676,699 $ = 32.25 20,983 Iraq ............................ Dinar 1,385 $ = 0.35714 3,879 Israel ............................ Pound 13,096 $ = 1.80 7,275 Italy ............................ Lira 303,069,669 $ = 350.00 865,913 Japan ............................ Yen 149,440,028 $ = 360.00 415,111 Jordan ............................ Dinar 3,668 $ = 0.3571 10,269 Lebanon ........................... Pound 1,611,326 $ = 2.19148 735,269 Luxembourg ........................ Franc 452,948 $ = 50.00 9,059 Mexico ............................ Peso 144,534,450 $ = 12.50 11,562,756 Netherlands ......................... Guilder 4,597,434 $ = 3.80 1,209,851 Nicaragua .......................... Cordoba 628,119 $ = 5.00 125,624 Norway ............................ Krone 533,721 $ = 7.14286 74,721 Pakistan ............................ Rupee 407,881 $ = 3.30852 123,282 Panama ............................ Balboa 18,380 S = 1.00 18,380 Paraguay ........................... Guarani 4,296,235 S = 21.00 204,583 Peru . . . . . . . . . . Sol 1,359,329 $ = 6.50 209,127 Philippine Republic . . . . . Peso 2,376,076 $ = 2.00 1,188,038 Sweden ... . . . . .... Krona 78,678,774 $ = 5.17321 15,208,889 Syria ............................ Pound 22,368 $ = 2.19148 10,207 Thailand ........................... Baht 86,997 S = 12.50 6,960 Turkey ............................ Lira 26,493 $ = 2.80 9,462 Union of South Africa . . . Pound 95,507 $ = 0.3571 267,421 United Kingdom . . . . . . Pound 156,987 $ 0.3571 439,564 United States . . . . . . . Dollar 147,449 $ = 147,449 Uruguay . . . . . . . . Peso 2,803,562 $ = 1.519 1,845,603 Venezuela .......................... Bolivar 4,559,747 $ 3.35 1,361,118 Yugoslavia ......... . . .. Dinar 2,154,487,700 $ 300.00 7,181,626 Restricted Currency (NOTE B) . . . . . . . . . . . . . . . . . . . . $101,063,415 Unrestricted Currency (Austria, Belgium, Canada, Denmark, France, Germany, Italy, Netherlands, Norway, Sweden, Union of South Africa, United Kingdom and United States) 14,017,477 $115,080,892 Non-Member Currencies (Afghanistan and Switzerland) . . . . . . . . . . . . . . . . 7,947,336 Total . ......................................................$123,028,228 .7- APPENDIX D Statement of Subscriptions to Capital Stock and Voting Power JUNE 30, 1955 EXPRESSED IN UNrrED STATES CURRENCY- See Note A of Notes to Financial Statements, Appendix G Amounts Paid in Iln currency of In non-interest- Subject to Subscriptions In member other bearing, non- call to meet United than United negotiable Amounts obligations Amount States States dollars demand notes due of Bank Number Member Shares (Note J) dollars (Note B) (Note B) (Note C) (Note G) of votes Australia . . . . 2,000 $ 200,000,000 $ 4,000,000 $ 360,368 $ 35,639,632 $ - $ 160,000,000 2,250 Austria ................ 500 50,000,000 1,000,000 606,710 8,393,290 - 40,000,000 750 Belgium .............. 2,250 225,000,000 4,500,000 4,844,422 35,655,578 - 180,000,000 2,500 Bolivia ............... 70 7,000,000 140,000 12,600 1,247,400 - 5,600,000 320 Brazil ..... .... 1,050 105,000,000 2,100,000 18,900,000 - - 84,000,000 1,300 Burma ........... 150 15,000,000 300,000 27,000 2,673,000 - 12,000,000 400 Canada . ........ 3,250 325,000,000 6,500,000 53,053,182 5,446,818 - 260,000,000 3,500 Ceylon ...............150 15,000,000 300,000 32,997 2,667,003 - 12,000,000 400 Chile ............... 350 35,000,000 700,000 6,300,000 - - 28,000,000 600 China ..... .... 6,000 600,000,000 9,270,000 1,080,000 106,920,000 2,730,000 480,000,000 6,250 Colombia . . . . 350 35,000,000 700,000 6,300,000 - - 28,000,000 600 Costa Rica . . . . 20 2,000,000 40,000 360,000 - - 1,600,000 270 Cuba ................ 350 35,000,000 700,000 63,000 6,237,000 - 28,000,000 600 Denmark . . . . 680 68,000,000 1,360,000 2,294,066 9,945,934 - 54,400,000 930 Dominican Republic . 20 2,000,000 40,000 3,600 356,400 - 1,600,000 270 Ecuador ................ 32 3,200,000 64,000 576,000 - - 2,560,000 282 Egypt ................ 533 53,300,000 1,066,000 95,940 9,498,060 - 42,640,000 783 El Salvador . . . . 10 1,000,000 20,000 180,000 - - 800,000 260 Ethiopia .. . . 30 3,000,000 60,000 540,000 - - 2,400,000 280 Finland ................ 380 38,000,000 760,000 6,840,000 - - 30,400,000 630 France ............... 5,250 525,000,000 10,500,000 27,938,215 66,561,785 - 420,000,000 5,500 Germany .. . . 3,300 330,000,000 6,600,000 4,160,172 55,239,828 - 264,000,000 3,550 Greece ................ 250 25,000,000 500,000 4,500,000 - - 20,000,000 500 Guatemala . . . . 20 2,000,000 40,000 360,000 - - 1,600,000 270 Haiti ................ 20 2,000,000 40,000 10,800 349,200 - 1,600,000 270 Honduras . . . . 10 1,000,000 20,000 180,000 - - 800,000 260 Iceland . . . . . 10 1,000,000 20,000 180,000 - - 800,000 260 India ................ 4,000 400,000,000 8,000,000 721,800 71,278,200 - 320,000,000 4,250 Indonesia . . . . 1,100 110,000,000 2,200,000 198,000 19,602,000 - 88,000,000 1,350 Iran ................ 336 33,600,000 672,000 60,480 5,987,520 - 26,880,000 586 Iraq ................ 60 6,000,000 120,000 20,880 1,059,120 - 4,800,000 310 Israel ................ 45 4,500,000 90,000 8,100 801,900 - 3,600,000 295 Italy ................ 1,800 180,000,000 3,600,000 5,685,714 26,714,286 - 144,000,000 2,050 Japan ................ 2,500 250,000,000 5,000,000 450,000 44,550,000 - 200,000,000 2,750 Jordan ................ 30 3,000,000 60,000 15,410 524,590 - 2,400,000 280 Lebanon. . . . . 45 4,500,000 90,000 810,000 - - 3,600,000 295 Luxembourg . . . 100 10,000,000 200,000 118,000 1,682,000 - 8,000,000 350 Mexico . . . . . 650 65,000,000 1,300,000 11,700,000 - - 52,000,000 900 Netherlands . . . 2,750 275,000,000 5,500,000 3,447,369 46,052,631 - 220,000,000 3,000 Nicaragua .. . . 8 800,000 16,000 144,000 - - 640,000 258 Norway ................ 500 50,000,000 1,000,000 370,000 8,630,000 - 40,000,000 750 Pakistan .1. . . I,000 100,000,000 2,000,000 180,008 17,819,992 - 80,000,000 1,250 Panama ................ 2 200,000 4,000 36,000 - - 160,000 252 Paraguay .. . . 14 1,400,000 28,000 252,000 - - 1,120,000 264 Peru ................ 175 17,500,000 350,000 262,269 2,887,731 - 14,000,000 425 Philippines .. . . 150 15,000,000 300,000 1,200,000 1,500,000 - 12,000,000 400 Sweden ............... ,000 100,000,000 2,000,000 18,000,000 - - 80,000,000 1,250 Syria ................ 65 6,500,000 130,000 43,642 1,126,358 - 5,200,000 315 Thailand ............... 125 12,500,000 250,000 42,500 2,207,500 - 10,000,000 375 Turkey . . . . . 430 43,000,000 860,000 113,114 7,626,886 - 34,400,000 680 Union of South Africa. 1,000 100,000,000 2,000,000 6,060,000 11,940,000 - 80,000,000 1,250 United Kingdom . 13,000 1,300,000,000 26,000,000 21,270,000 212,730,000 - 1,040,000,000 13,250 United States . . 31,750 3,175,000,000 635,000,000 - - - 2,540,000,000 32,000 Uruguay ............... 105 10,500,000 210,000 1,890,000 - - 8,400,000 355 Venezuela . . . . 105 10,500,000 210,000 1,365,000 525,000 - 8,400,000 355 Yugoslavia . . . . 400 40,000,000 800,000 7,200,000 - - 32,000,000 650 Totals . . 90,280 $9,028,000,000 $749,330,000 $221,463,358 $832,076,642 $2,730,000 $7,222,400,000 104,280 *8- APPENDIX E FLiw'uecl Debt of the Bank JUNE 30, 1955 EXPRESSED IN UNrrED STATES CURRENCY- See Note A of Notes to Financial Statements, Appendix G Principal Annual sinking Issue and maturity outstanding fund requirement Payable in United States Dollars 2%,a Serial Bonds of 1950, due 1956-62 . . . . . . . . . . . $ 70,000,000 None 3% Three Year Bonds of 1953, due 1956 . . . . . . . . . . . 75,000,000 None 21/2% Five Year Bonds of 1954, due 1959 . . . . . . . . . . 50,000,000 None 31/2% Fifteen Year Bonds of 1954, due 1969 . . . . . . . . . . 100,000,000 1957-66 $ 4,000,000 1967-68 $ 5,000,000 31/2% Nineteen Year Bonds of 1952, due 1971 . . . . . . . . . 60,000,000 1957-66 $ 2,000,000 1967-70 S 2,500,000 3% Twenty-Five Year Bonds of 1947, due 1972 . . . . . . . . . 150,000,000 1958-62 $ 3,000,000 1963-67 $ 4,500,000 1968-72 $ 7,500,000 33/8% Twenty-Three Year Bonds of 1952, due 1975 . . . . . . . . 50,000,000 1958 $ 1,000,000 1959-74 $ 1,500,000 3% Twenty-Five Year Bonds of 1951, due 1976 . . . . . . . . . 50,000,000 1963 $ 1,000,000 1964-75 $ 2,000,000 31/4% Thirty Year Bonds of 1951, due 1981 . . . . . . . . . . 100,000,000 1966-67 $ 2,000,000 1968-73 $ 3,000,000 1974-80 S 4,000,000 Sub-Total .................................... $705,000,000 Payable in Canadian Dollars 4% Ten Year Bonds of 1952, due 1962 (Can$13,600,000) . . . . . . $ 12,363,636 * 31/2% Fifteen Year Bonds of 1954, due 1969 (Can$25,000,000).. . . . . 22,727,273 1959-65 Can$800,000 1966-68 Can$900,000 31/4% Ten Year Bonds of 1955, due 1965 (Can$15,000,000) . . . . . 13,636,364 1958-64 Can$500,000 Sub-Total . . . . . . . . . . . . . . . . . $ 48,727,273 Payable in Netherlands Guilders 31/2% Fifteen Year Bonds of 1954, due 1969 (f40,000,000) . . . . . . $ 10,526,316 1960-69 f4,000,000 Payable in Pounds Sterling 31/2% Twenty Year Stock of 1951, due 1971 (£5,000,000) . . . . . . $ 14,000,000 1957-71 £ 166,700 31/2% Twenty Year Stock of 1954, due 1974 (£5,000,000) . . . . . . 14,000,000 1960-74 £166,700 Sub-Total .. ..... .. ........ ... .......... $ 28,000,000 Payable in Swiss Francs 21/2% Serial Bonds of 1950, due 1955-56 (Sw fr 5,000,000) . . . . . . $ 1,163,467 None 31/2% Ten Year Bonds of 1952, due 1962 (Sw fr 50,000,000) . . . . . 11,634,673 None 31/2% Twelve Year Bonds of 1951, due 1963 (Sw fr 50,000,000) . . . . 11,634,671 None 31/2% Fifteen Year Bonds of 1953, due 1968 (Sw fr 50,000,000) . . . . 11,634,671 None 31/2% Fifteen Year Bonds of 1953 (Nov. Issue), due 1968 (Sw fr 50,000,000) 11,634,671 None 31/2% Eighteen Year Bonds of 1954, due 1972 (Sw fr 50,000,000) . . . . 11,634,671 None Sub-Total ..................... S.................$ 59,336,824 Gross Total . . . . . . . . . . . . . . . . . $851,590,413 Each issue, except the 2% Serial Bonds of 1950, is subject to year for the five years following the date of this statement: redemption prior to maturity at the option of the Bank at the prices and upon the conditions stated in the respective bonds. Year Ending June 30 Amount The amounts shown as annual sinking fund requirements arc 1956-- 23527,103* the principal amounts of bonds to be purchased or redeemed 1957. . . . . . . . . . . . ....,466,7603 to meet each year's requirement, except that in the cases of the 19578.... . . . . . . . . 85,466,760 31h7% Twenty Year Stock of 1951 and of 1954 the amount 195 9. . .. ...... . . . . 17,921,305 shown is the amount of funds to be provided annually for pur- 19059 ....................... 72,148,578 chase or redemption. 1960_ ___. . __._._._. _. __. _. _._ ._ ._ _ 72_ 148_ 578 The following table shows the aggregate principal amount of Total . . . . . . . $221,212,324 the maturities, sinking fund and redemption requirements each * The Bank has called for redemption on August 1, 1955 the outstanding balance of Can$13,600,000 of the 4% Ten Year Bonds of 1952, due 1962, and the U. S. dollar equivalent of this amount is included in the above table as due in the year ending June 30, 1956. .9. APPENDIX F S-ttc- - iof Loanvz EXPRESSED IN UNITED STATES CURRENCY Interest rate Loan Date of Original (including number Borrower and guarantort Prograin or project loan agreement maturities commission) 29 AU AUSTRALIA Equipment for development . . . . . Aug. 22, 1950 1955-1975 41/4% 66 AU Equipment for development . . . . . July 8, 1952 1957-1972 43/4 % 96 AU Equipment for development . . . . . Mar. 2, 1954 1957-1969 43/4 % 111 AU Equipment for development . . . . . Mar. 18, 1955 1958-1970 458% AUSTRIA (Guarantor) 102 AUA Austrian Electric Power Corp. and Drau River Power Co. Electric power development . . . . . July 19, 1954 1959-1979 43/4% *118 AUA Vorarlberger Illwerke Electric power development . . . . . June 14, 1955 1960-1979 43/4% 14 BE BELGIUM Equipment for steel and power industries . Mar. 1, 1949 1953-1969 4¼%/40t 48 BE Equipment and materials for 10-year Development Plan of the Belgian Congo . Sept. 13, 1951 1957-1976 4½% 107 BE Waterways and port improvements . . Dec. 14, 1954 1965-1969 458% BELGIUM (Guarantor) 47 BE Belgian Congo Equipment and materials for 10-year Development Plan of the Belgian Congo . Sept. 13, 1951 1957-1976 41/2% 65 BR BRAZIL Railway rehabilitation . . . . . . June 27, 1952 1955-1967 45s% 75 BR Highway maintenance and improvement . Apr. 30, 1953 1954-1959 41/4% 92 BR Railway rehabilitation . . . . . . Dec. 18, 1953 1959-1969 47/g% BRAZIL (Guarantor) 11 BR Brazilian Traction Electric power development (First Installment) and telephone equipment . . . . . Jan. 27, 1949 1953-1974 4/2% 11 BR-S Brazilian Traction (Second Installment) Electric power development . . . . . Jan. 18, 1951 1955-1976 41/4% 95 BR Brazilian Traction Electric power development . . . . . Feb. 24, 1954 1955-1974 47/g% 25 BR Sao Francisco Hidro Elet. Co. Electric power development ...... May 26, 1950 1954-1975 41/4¼% 64 BR Comissao Estadual de Energia Eletrica Electric power development . . . . . June 27, 1952 1957-1977 43/4 % 76 BR CEARG & CEMIG Electric power development . . . . . July 17, 1953 1957-1973 5% 93 BR Usinas Eletricas do Paranapanema Electric power development . . . . . Dec. 18, 1953 1958-1974 5% 101 CE CEYLON Electric power development . . . . . July 9, 1954 1959-1979 43¾% CHILE (Guarantor) 5 CH Fomento and Endesa Electric power development . . . . . Mar. 25, 1948 1953-1968 41/2% 6 CH Fomento Agricultural development . . . . . Mar. 25, 1948 1950-1955 33/4 % 49 CH Fomento Exploration and use for irrigation of underground water resources . . . Oct. 10, 1951 1955-1961 43/8°% 83 CH Fomento and Cia. Manufacturera de Papeles y Cartones Construction of paper and pulp mills Sept. 10, 1953 1958-1970 5% *10- APPENDIX F A %It i See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold3 loans Principal balance of principal not vet and repayments held by amount effective amount effective2 refundings to Bank Total sales Portion matured4 Bank disbursed loans, $ 100,000,000 $ - $ - $ - $ 7,371,000 $ - $ 92,629,000 $ 100,000,000 $ - 50,000,000 - - - 3,800,000 - 46,200,000 50,000,000 - 54,000,000 - - - - - 54,000,000 48,214,957 5,785,043 54,500,000 - - - 10,400,000 - 44,100,000 5,411,552 49,088,448 12,000,000 - - - - - 12,000,000 1,260,950 10,739,050 10,000,000 10,000,000 - - Note3 - - - - 16,000,000 - - - 16,000,000 2,500,000 - 16,000,000 - 30,000,000 - - - 1,550,000 - 28,450,000 30,000,000 - 20,000,000 - - - - - 20,000,000 3,164,627 16,835,373 40,000,000 - - - 2,624,450 - 37,375,550 40,000,000 - 12,500,000 - - - - - 12,500,000 4,406,200 8,093,800 3,000,000 - - 600,000 - - 2,400,000 2,941,367 58,633 12,500,000 - - - - - 12,500,000 5,241,699 7,258,301 75,000,000 - - 893,651 4,028,411 1,106,349 70,077,938 75,000,000 - 15,000,000 - - - - - 15,000,000 15,000,000 - 18,790,000 - - - - - 18,790,000 16,859,031 1,930,969 15,000,000 - - 467,414 - - 14,532,586 13,938,034 1,061,966 25,000,000 - - - - - 25,000,000 - 25,000,000 7,300,000 - - - 1,047,000 - 6,253,000 6,589,185 710,815 10,000,000 - - - - - 10,000,000 1,857,137 8,142,863 19,110,000 - - - - - 19,110,000 2,066,998 17,043,002 13,500,000 - - 1,361,000 - - 12,139,000 13,500,000 - 2,500,000 - - 755,000 1,745,000 1,745,000 - 2,500,000 - 1,300,000 - - 80,000 549,000 - 671,000 843,276 456,724 20,000,000 - - - - - 20,000,000 1,980,980 18,019,020 *11 - APPENDIX F Statement of Loans EXPRESSED IN UNITED STATES CURRENCY Interest ra te Loan Date of Original (including number Borrower and guarantor, Program or project loan agreement maturities commission) 43 CO COLOMBIA Highway construction and rehabilitation Apr. 10, 1951 1954-1961 3 /8% 84 CO Highway construction and rehabilitation Sept. 10, 1953 1956-1963 43/4 % 68 CO National railways project . . . . . Aug. 26, 1952 1957-1978 43/4% COLOMBIA (Guarantor) 18 CO Caja de Credito Agricultural development . . . . . Aug. 19, 1949 1952-1956 3Y/2% 108 CO Caja de Credito Agricultural development . . . . . Dec. 29, 1954 1957-1961 41/4% 38 CO CHIDRAL Electric power development . . . . . Nov. 2, 1950 1954-1970 4% 113 CO CHIDRAL Electric power development . . . . . Mar. 24, 1955 1959-1975 434% 39 CO Caldas Hidro-Elec. Co. Electric power development . . . . . Dec. 28, 1950 1952-1971 4% 54 CO Hidroelectrica del Rio Lebrija Electric power development . . . . . Nov. 13, 1951 1954-1972 4A2% *119 CO Ferrocarriles Nacionales de Colombia National railways project . . . . . June 15, 1955 1958-1980 43/4% 3 DE DENMARK Equipment and materials for reconstruction and development . . Aug. 22, 1947 1953-1972 41/4% ECUADOR (Guarantor) 94 EC Comite Ejecutivo de Vialidad (Guayas) Highway construction . . . . . . Feb. 10, 1954 1958-1964 45/s% 104 ES EL SALVADOR Coastal highway project . . . . . . Oct. 12, 1954 1959-1966 41/2% EL SALVADOR (Guarantor) 22 ES Comision del Rio Lempa Electric power development . . . . . Dec. 14, 1949 1954-1975 41/4% 31 ET ETHIOPIA Highway rehabilitation . . . . . . Sept. 13, 1950 1956-1971 4% 32 ET Foreign exchange for Development Bank . Sept. 13, 1950 1956-1971 4% 42 ET Rehabilitation and extension of telephone and telegraph systems . . Feb. 19, 1951 1956-1971 4% 21 Fl FINLAND Equipment for timber production . . . Oct. 17, 1949 1950-1951 3% FINLAND (Guarantor) 16 Fl Bank of Finland Electric power development and equipment for wood-products industries and limestone powder production . . . . Aug. 1, 1949 1953-1964 4% 61 FI Bank of Finland Electric power, wood-products industries and agricultural development Apr. 30, 1952 1955-1970 43/4% 70 Fl Bank of Finland Electric power, wood-products industries and agricultural development (Supplemental Loan Agreement) . . . Nov. 13, 1952 1955-1970 43/4% 112 Fl Bank of Finland Electric power and wood-products industries development.. . . . . . Mar. 24, 1955 1958-1970 4 Yg% -12 APPENDIX F June 30, 1 91S5 (colIhillted) See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold3 loans Principal balance of principal not yet and repayments held by amount effective amount effective2 refundings to Bank Total sales Portion matured4 Bank disbursed loans5 $ 16,500,000 $ - $ - $ 1,294,000 $ 800,000 $ 800,000 $ 14,406,000 $ 16,500,000 $ - 14,350,000 - - - - - 14,350,000 7,416,537 6,933,463 25,000,000 - - - - - 25,000,000 9,004,353 15,995,647 5,000,000 - 74,559 1,500,000 2,000,000 2,000,000 1,425,441 4,925,441 - 5,000,000 - - - 3,000,000 - 2,000,000 - 5,000,000 3,530,000 - - 76,000 148,000 148,000 3,306,000 3,530,000 - 4,500,000 - - - - - 4,500,000 - 4,500,000 2,600,000 - - 97,000 194,000 194,000 2,309,000 2,600,000 - 2,400,000 - - 44,200 84,800 84,800 2,271,000 2,400,000 - 15,900,000 15,900,000 - - Note3 - - - 40,000,000 - - 599,000 2,257,000 936,000 37,144,000 40,000,000 - 8,500,000 - - - - - 8,500,000 372,689 8,127,311 11,100,000 - - - 250,000 - 10,850,000 114,549 10,985,451 12,545,000 - - 11,000 1,000,000 184,000 11,534,000 12,545,000 - 5,000,000 - - - - - 5,000,000 5,000,000 - 2,000,000 - - - - - 2,000,000 1,236,912 763,088 1,500,000 - - - - - 1,500,000 818,671 681,329 2,300,000 - 197,869 2,102,131 - - - 2,102,131 - 12,500,000 - - 1,513,990 1,559,010 1,559,010 9,427,000 12,500,000 - 20,000,000 - - - 20,000,000 17,793,959 2,206,041 3,479,464 - - - - - 3,479,464 2,625,019 854,445 12,000,000 - - - 2,288,000 - 9,712,000 78,288 11,921,712 13 APPENDIX F Statetrnent of Loans EXPRESSED IN UNITED STATES CURRENCY Interest rate Loan Date of Original (including numinber Borrower and guarantor, Programii or project loan agreement maturities commission) FRANCE (Guarantor) I FR Credit National Equipment and materials for reconstruction and development . May 9, 1947 1952-1977 41/4% 100 FR Central Office of French Overseas Railways Railway improvement . . . . . . June 10, 1954 1956-1966 4'/2% 46 IC ICELAND Electric power development . . . . . June 20, 1951 1956-1973 43/8%o 53 IC Agricultural development . . . . . Nov. 1, 1951 1956-1973 41/2 % 69 IC Fertilizer plant.. . . . . . . . . Aug. 26, 1952 1954-1969 43/4 % ICELAND (Guarantor) 79 IC Iceland Bank of Development Agricultural development . . . . . Sept. 4, 1953 1958-1975 5% 80 IC Iceland Bank of Development Construction of radio transmitter building. Sept. 4, 1953 1954-1966 43/4% 17 IN INDIA Railway rehabilitation . . . . . . Aug. 18, 1949 1950-1964 4% 19 IN Agricultural development . . . . . Sept. 29, 1949 1952-1956 31/2% 23 IN Electric power development . . . . . Apr. 18, 1950 1955-1970 4% 72 IN Electric power development, flood control and irrigation . . . . Jan. 23, 1953 1956-1977 47/8% INDIA (Guarantor) 71 IN Indian Iron & Steel Company Expansion of iron and steel production facilities . . . Dec. 18, 1952 1959-1967 43/4% 106 IN Tata Hydro, Andhra and Tata Power Companies Electric power development . . . . . Nov. 19, 1954 1958-1974 434% * 109 IN Industrial Credit and Investment Foreign exchange Corp. of India for development of private industry . Mar. 14, 1955 1960-1969 458% 26 IRQ IRAQ Construction of a flood control project . June 15, 1950 1956-1965 33/4% ITALY (Guarantor) 50 IT Cassa per II Mezzogiorno Equipment and materials for Development Plan of Southern Italy. Oct. 10, 1951 1956-1976 41/2% 88 IT Cassa per II Mezzogiorno Equipment and materials for Development Plan of Southern Italy. Oct. 6, 1953 1958-1978 5% *117 IT Cassa per II Mezzogiorno Electric power, irrigation and industrial projects . . . . . . June 1, 1955 1958-1975 43/4% JAPAN (Guarantor) 89 JA Japan Development Bank Electric power development . . . . . Oct. 15, 1953 1957-1973 5% 90 JA Japan Development Bank Electric power development . . . . . Oct. 15, 1953 1957-1973 5% 91 JA Japan Development Bank Electric power development . . . . . Oct. 15, 1953 1957-1973 5% 4 LU LUXEMBOURG Equipment for steel mill and railroads . . Aug. 28, 1947 1949-1972 41¼% *14- APPENDIX F JUtile 3()0 955 ,,a ww See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold3 loans Principal balance of principal not yet and repayments held by amount effective amount effective' refundings to Bank Total sales Portion matured4 Bank disbursed loans' $ 250,000,000 $ - $ - $ 38,000 $ 29,342,000 $ 8,306,000 $ 220,620,000 $ 250,000,000 $ - 7,500,000 - - - 609,000 - 6,891,000 2,808,571 4,691,429 2,450,000 - - - - - 2,450,000 2,450,000 - 1,008,000 - - - - - 1,008,000 1,008,000 - 854,000 - - 40,000 - - 814,000 854,000 - 1,350,000 - - - - - 1,350,000 1,350,000 - 252,000 - - 15,960 - - 236,040 246,128 5,872 34,000,000 - 1,200,000 4,498,981 8,298,536 4,759,302 20,002,483 32,800,000 - 10,000,000 - 2,796,187 1,557,000 4,940,813 3,875,000 706,000 7,203,813 - 18,500,000 - 690,000 121,000 1,420,000 315,000 16,269,000 16,497,594 1,312,406 19,500,000 - 9,000,000 - - - 10,500,000 830,979 9,669,021 31,500,000 - - - 31,500,000 1,242,996 30,257,004 16,200,000 16,200,000 - - Note3 - - - 10,000,000 10,000,000 - - - - - - 12,800,000 - 6,506,054 6,293,946 - - - 6,293,946 10,000,000 - - - - - 10,000,000 10,000,000 10,000,000 - - - - - 10,000,000 10,000,000 70,000,000 70,000,000 - - Note3 - - - 21,500,000 - - - 3,244,288 - 18,255,712 13,423,641 8,076,359 11,200,000 - - - 1,653,591 - 9,546,409 8,640,934 2,559,066 7,500,000 - - - 1,245,000 - 6,255,000 5,458,663 2,041,337 12,000,000 - 238,017 382,983 2,704,000 1,285,000 8,675,000 11,761,983 - .15- APPENDIX F Statement of Loans EXPRESSED IN UNITED STATES CURRENCY Interest rate Loan Date of Original (including number Borrower and guarantor' Program or project loan agreement maturities commission) MEXICO (Guarantor) 12 ME Financiera and Comision Electric power development . . . . . Jan. 6, 1949 1953-1973 41/2% 13 ME Financiera and Comision Electric power development . . . . . Jan. 6, 1949 July 1, 1950 41/2% 24 ME Mexican Light and Power Co. Ltd. Electric power development . . . . . Apr. 28, 1950 1953-1975 41'2% 33 ME Consortium of Eight Mexican Foreign exchange for small Banks & Nacional Financiera private enterprises . . . . . . . Oct. 18, 1950 1952-1957 312% 56 ME Financiera and Comision Electric power development . . . . . Jan. 11, 1952 1955-1977 41/2% 103 ME Ferrocarril Del Pacifico, S.A. de C.V. Railway rehabilitation . . . . . . Aug. 24, 1954 1959-1969 4 /8% 2 NE NETHERLANDS Equipment and materials for reconstruction and development . . Aug. 7, 1947 1954-1972 41/4% 2a NE Equipment and materials for reconstruction and development (Supplemental Loan Agreement) . . . May 25, 1948 1953-1954 41/4% NETHERLANDS (Guarantor) 7, 7a NE N.V. Stoomvaart Mij. "Nederland" Purchase of S.S. Raki and S.S. Roebiah July 15, 1948 1949-1958 3-9/16% 8 NE N.V. Vereenigde Schvrt. Mij. Purchase of S.S. Almkerk ...... July 15, 1948 1949-1958 3-9/16% 9 NE N.V. Ned.-Amer. Stoomvaart- Mij. "Holland-Amerika Lijn" Purchase of S.S. Alblasserdijk . . . . July 15, 1948 1949-1958 3-9/16% 10,10a NE N.V. Rotterdamsche Lloyd Purchase of S.S. Friesland and S.S. Drente . July 15, 1948 1949-1958 3-9/16% 15 NE Herstelbank Equipment for reconstruction and mod- ernization of particular industrial plants July 26, 1949 1952-1964 4% 59 NE KLM Royal Dutch Airlines Purchase of aircraft . . . . . . . Mar. 20, 1952 1954-1958 4V/8% 45 NI NICARAGUA Highway construction . . . . . . June 7, 1951 1954-1961 41/8% 52 NI Construction of grain storage facilities . . Oct. 29, 1951 1954-1962 41/8% 81 NI Highway construction . . . . . . Sept. 4, 1953 1957-1963 43/4% 82 NI Electric power development . . . . . Sept. 4, 1953 1955-1963 43/4% NICARAGUA (Guarantor) 44 NI Banco Nacional de Nicaragua Agricultural development . . . . . June 7, 1951 1954-1958 4% 97 NO NORWAY Purchase of merchant ships . . . . . Apr. 8, 1954 1957-1974 43/4% 115 NO Capital equipment for general development Apr. 19, 1955 1960-1975 43/4% 60 PAK PAKISTAN Railway rehabilitation . . . . . . Mar. 27, 1952 1954-1967 458% 62 PAK Agricultural development . . . . . June 13, 1952 1954-1959 41/8% PAKISTAN (Guarantor) 99 PAK Sui Gas Transmission Co. Construction of natural gas transmission line . . . . June 2, 1954 1956-1974 43/4% *120 PAK Karachi Electric Supply Corporation, Ltd. Electric power development . . . . . June 20, 1955 1957-1970 4Y8% *16- APPENDIX F June 30, 1955 (coil tlilllc'd1 See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold, loans Principal balance of principal not yet and repayments held by amount effective amount effective2 refundings to Bank Total sales Portion matured4 Bank disbursed loans5 $ 24,100,000 $ - $ - $ 900,700 $ 1,135,300 $ 1,135,300 $ 22,064,000 $ 23,428,898 $ 671,102 10,000,000 - 10,000,000(Refunding) - - - - - 26,000,000 - - 850,000 606,000 606,000 24,544,000 26,000,000 - 10,000,000 - 9,472,112 328,078 - - 199,810 527,888 - 29,700,000 - - - 200,000 - 29,500,000 18,532,757 11,167,243 61,000,000 - - - 2,420,000 - 58,580,000 19,267,473 41,732,527 191,044,212 - - 103,271,212 12,351,000 3,879,000 75,422,000 191,044,212 - 3,955,788 - - - 3,955,788 3,955,788 - 3,955,788 - 4,000,000 - - - 4,000,000 4,000,000 - 4,000,000 - 2,000,000 - - - 2,000,000 2,000,000 - 2,000,000 - 2,000,000 - - - 2,000,000 2,000,000 - 2,000,000 - 4,000,000 - - - 4,000,000 4,000,000 - 4,000,000 - 15,000,000 - 7,548,015 776,629 3,298,411 2,098,371 3,376,945 7,451,985 - 7,000,000 - - 3,500,000 3,500,000 3,500,000 - 7,000,000 - 3,500,000 - - 344,000 29,000 29,000 3,127,000 2,366,130 1,133,870 550,000 - 3,006 26,994 29,000 29,000 491,000 546,994 - 3,500,000 - - - - - 3,500,000 1,746,900 1,753,100 450,000 - - 20,000 - - 430,000 450,000 - 1,200,000 - 6,879 373,121 29,000 29,000 791,000 1,193,121 - 25,000,000 - - - 2,016,000 - 22,984,000 25,000,000 - 25,000,000 - - - - - 25,000,000 10,000,000 15,000,000 27,200,000 - - 832,400 735,600 735,600 25,632,000 14,586,067 12,613,933 3,250,000 - - - 997,000 740,000 2,253,000 2,684,391 565,609 14,000,000 - - - 1,806,000 - 12,194,000 12,198,921 1,801,079 13,800,000 13,800,000 - - Note3 - - - *17- APPENDIX F Statemnent of Loans EXPRESSED IN UNITED STATES CURRENCY Interest rate Loan Date of Original (including number Borrower and guarantor' Program or project loan agreement maturities commission) PANAMA (Guarantor) 86 PAN Instituto de Fomento Economico Agricultural development . . . . . Sept. 25, 1953 1955-1960 45/Y% 87 PAN Instituto de Fomento Economico Construction of grain storage facilities . . Sept. 25, 1953 1955-1961 4Y8% 55 PA PARAGUAY Agricultural development . . . . . Dec. 7, 1951 1954-1960 43/8% 57 PE PERU Port development . . . . . . . . Jan. 23, 1952 1954-1967 41/2% 67 PE Agricultural development . . . . . July 8, 1952 1954-1959 41/8% 98 PE Agricultural development . . . . . Apr. 12, 1954 1956-1961 41/4% 114 PE Irrigation project . . . . . . . . Apr. 5, 1955 1959-1980 43/4 % PERU (Guarantor) 105 PE Banco de Fomento Agropecuario del Peru Agricultural development . . . . . Nov. 12, 1954 1957-1963 41/4% *116 PE Compania Nacional de Cemento Portland del Norte S.A. Construction of cement plant . . . . Apr. 19, 1955 1958-1970 4v/s% 40 SA SOUTH AFRICA Expansion of transport facilities. . . . Jan. 23, 1951 1956-1965 334% 77 SA Expansion of transport facilities. . . . Aug. 28, 1953 1955-1963 434 % SOUTH AFRICA (Guarantor) 41 SA Electricity Supply Commission Electric power development . . . . . Jan. 23, 1951 1954-1970 4% 78 SA Electricity Supply Commission Electric power development . . . . . Aug. 28, 1953 1955-1963 43¾% 35 TH THAILAND Railway rehabilitation . . . . . . Oct. 27, 1950 1954-1966 33/4% 36 TH Irrigation project . . . . . . . . Oct. 27, 1950 1956-1971 4% 37 TH Port construction and development . . Oct. 27, 1950 1954-1966 33/4% 27 TU TURKEY Construction of grain storage facilities. . July 7, 1950 1954-1968 3 7/s % 28 TU Port construction and development . . July 7, 1950 1956-1975 41/4% 28 TU-S Port construction and development . . Feb. 26, 1954 1956-1975 47%% 63 TU Electric power development, irrigation and flood control . . . . June 18, 1952 1957-1977 43/4% TURKEY (Guarantor) 34 TU Industrial Development Foreign exchange Bank of Turkey for development of private industry . . Oct. 19, 1950 1957-1965 33/4% 85 TU Industrial Development Foreign exchange Bank of Turkey for development of private industry . . Sept. 10, 1953 1958-1968 47/s% UNITED KINGDOM (Guarantor) 58 SR Southern Rhodesia Electric power development . . . . .. Feb. 27, 1952 1956-1977 43/4% 74 NR Northern Rhodesia Railway development . . . . . . Mar. 11, 1953 1956-1972 43/4% 110 EA East Africa High Commission Railway, harbour and road transport projects . . . . Mar. 15, 1955 1958-1974 43/4% URUGUAY (Guarantor) 30 UR U. T. E. Electric power development and telephone equipment . . . . . Aug. 25, 1950 1955-1974 41/4% *18- APPENDIX F J Line 30. 1955 un/in See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold3 loans Principal balance of principal not yet and repayments held by amount effective amount effective2 refundings to Bank Total sales Portion matured' Bank disbursed loans' $ 1,200,000 $ - $ - $ - $ - $ - $ 1,200,000 $ 407,426 $ 792,574 290,000 - - - - - 290,000 83,225 206,775 5,000,000 - - 200,000 100,000 100,000 4,700,000 1,731,824 3,268,176 2,500,000 - - 68,000 538,000 141,000 1,894,000 2,018,640 481,360 1,300,000 - - 121,750 245,750 93,250 932,500 1,300,000 - 1,700,000 - - - 342,000 - 1,358,000 1,180,850 519,150 18,000,000 - - - 496,000 - 17,504,000 2,597,444 15,402,556 5,000,000 - - - 748,000 - 4,252,000 150,000 4,850,000 2,500,000 2,500,000 - - Note3 - - - - 20,000,000 - - - 934,000 - 19,066,000 20,000,000 - 30,000,000 - - - 3,202,000 - 26,798,000 30,000,000 - 30,000,000 - - 143 4,200,560 1,911,260 25,799,297 30,000,000 - 30,000,000 - - - 6,620,000 - 23,380,000 28,545,799 1,454,201 3,000,000 - - 102,000 189,000 189,000 2,709,000 3,000,000 - 18,000,000 - - - - - 18,000,000 16,867,332 1,132,668 4,400,000 - - 152,000 275,000 275,000 3,973,000 4,165,076 234,924 3,900,000 - - 153,000 144,000 144,000 3,603,000 2,912,755 987,245 12,500,000 - - - - - 12,500,000 9,023,658 3,476,342 3,800,000 - - - - - 3,800,000 - 3,800,000 25,200,000 - 2,356,000 - - - 22,844,000 15,039,352 7,804,648 9,000,000 - - - - - 9,000,000 6,503,129 2,496,871 9,000,000 - - - - - 9,000,000 1,078,178 7,921,822 28,000,000 - - - 4,437,000 - 23,563,000 28,000,000 - 14,000,000 - - - 2,047,347 - 11,952,653 14,000,000 - 24,000,000 - - - 7,973,000 - 16,027,000 14,203,077 9,796,923 33,000,000 - - 825,000 500,000 - 31,675,000 31,203,449 1,796,551 *19- APPENDIX F Statement of Tloans EXPRESSED IN UNITED STATES CURRENCY Interest rate Loan Date of Original (including number Borrower and guarantor' Program or project loan agreement maturities commission) 20 YU YUGOSLAVIA Equipment for timber production . . . Oct. 17, 1949 1950-1951 3% 51 YU Equipment for electric power, coal mining, non-ferrous metal development, industry, forest products, agriculture and fishery, and transportation projects . . . . Oct. 11, 1951 1955-1976 41/2% 73 YU Expansion of electric power, mining, in- dustry, forestry and transportation . . Feb. 11, 1953 1956-1978 47/s% Totals * Denotes loans not yet effective. NOTES: 1 Loans made (a) to the member or (b) to a political subdivision or a public or private enterprise in the territories of the member with the member's guarantee. 2 Agreements providing for these loans have been signed, but the loans do not become effective and disbursements thereunder do not start until the borrower and guarantor, if any, take certain action and furnish certain documents to the Bank. 3 The Bank has entered into agreements to sell the below listed portions of loans which are not yet effective: Principal amount Loan agreed to be sold 106 IN . . . . . . . . . . . . . . . . . . . . . . . $1,364,000 116 PE . . . . . . . . . . . . . . . . . . . . . . . . 310,000 117 IT . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 118 AUA . . . .. . . . . . . . . . . . . . . . . . . 153,000 119 CO . . . . . . . . . . . . . . . . . . . . . ....866,000 120 PAK . . . ... . . . . . . . . . . . . . . . . . . .. 2,049,600 Total ................. .................... $9,742,600 The total of both effective and non-effective loans sold or agreed to be sold is the equivalent of $203,995,255. 4 This includes amounts which, according to information available to the Bank, have been prepaid prior to maturity. I This includes $13,656,099 of effective loans which the Bank has agreed to sell. Of the undisbursed balance, the Bank has entered into irrevocable commitments to disburse $12,026,024. *20 APPENDIX F Juune 30, 1 955 t contined See Notes A, D and H of Notes to Financial Statements, Appendix G Effective loans sold Effective Undisbursed Original Loans Cancellations Principal or agreed to be sold3 loans Principal balance of principal not yet and repayments held by amount effective amount effective2 refundings to Bank Total sales Portion matured4 Bank disbursed loans5 $ 2,700,000$ - $ - $ 2,700,000 $ - $ - $ - $ 2,700,000 $ - 28,000,000 - - 379,000 - - 27,621,000 27,118,219 881,781 30,000,000 - - - - - 30,000,000 24,706,157 5,293,843 $2,324,058,464 $138,400,000 $50,088,698 $140,266,283 $194,252,655 $61,388,030 $1,801,050,828 $1,679,727,905 $455,841,861 Less exchange adjustment 5,498,563 $1,795,552,265 SUMMARY OF CURRENCIES REPAYABLE ON EFFECTIVE LOANS EXPRESSED IN UNITED STATES CURRENCY Amount Repayments Effective loans Currency repayable and sales held by Bank Austrian Schillings . . . . . . . . . . . . . . . . . $ 557,617 $ - $ 557,617 Belgian Francs.. . . . . . . . . . . . . . . . . . . 5,909,315 1,313,168 4,596,147 Canadian Dollars . . . . . . . . . . . . . . . . . . 75,046,985 6,398,981 68,648,004 Danish Kroner . . . . . . . . . . . . . . . . . . 1,978,872 131,205 1,847,667 French Francs . . . . . . . . . . . . . . . . . . 23,675,831 576,444 23,099,387 German Marks . . . . . . . . . . . . . . . . . . 3,459,560 19,048 3,440,512 Italian Lire.. . . . . . . . . . . . . . . . . . . . 4,903,794 217,791 4,686,003 Luxembourg Francs . . . . . . . . . . . . . . . . . 103,864 - 103,864 Netherlands Guilders . . . . . . . . . . . . . . . . 12,384,993 46,614 12,338,379 Norwegian Kroner . . . . . . . . . . . . . . . . . 288,156 - 288,156 South African Pounds . . . . . . . . . . . . . . . . 5,792,579 - 5,792,579 Swedish Kronor . . . . . . . . . . . . . . . . . . 3,113,863 158,015 2,955,848 Swiss Francs . . . . . . . . . . . . . . . . . . . 58,622,668 12,745,372 45,877,296 United Kingdom Pounds.. . . . . . . . . . . . . . . . 40,532,109 2,807,703 37,724,406 United States Dollars.. . . . . . . . . . . . . . . . . 1,443,357,699 279,365,554 1,163,992,145 $1,679,727,905 $303,779,895 $1,375,948,010 Undisbursed Balance of Effective Loans . . . . . . . . . . . . . . . . . 455,841,861 $1,831,789,871 Receivable from Purchasers on Account of Effective Loans Sold or Agreed to be Sold . . . . 30,739,043 30,739,043 $334,518,938 $1,801,050,828 Exchange Adjustment . . . . . . . . . . . . . . . . . . . . . . . . .-. . 5,498,563 Effective Loans Held by Bank . . . . . . . . . . . . . . . . . . . . . . . . . $1,795,552,265 *21. APPENDIX G Notes to Finiancial Statements JUNE 30, 1 9 5 5 NOTE A (a) Whenever (i) the par value of a member's cur- Amounts in currencies other than United States dollars rency is reduced, or (ii) the foreign exchange value of a have been translated into United States dollars: member's currency has, in the opinion of the Bank, depreciated to a significant extent within that member's (i) In the cases of 46 members, at the par values as territories, the member shall pay to the Bank within a specified in the "Schedule of Par Values", published by reasonable time an additional amount of its own cur- the International Monetary Fund; and rency sufficient to maintain the value, as of the time of initial subscription, of the amount of the currency of (ii) In the cases of the remaining 10 members (Canada, such member which is held by the Bank and derived China, France, Greece, Indonesia, Israel, Italy, Peru, from currency originally paid in to the Bank by the Thailand and Uruguay), the par values of whose cur- member under Article II, Section 7 (i), from currency rencies are not so specified, at the rates used by such referred to in Article IV, Section 2 (b), or from any members in making payments of capital subscriptions additional currency furnished under the provisions of to the Bank. the present paragraph, and which has not been repur- chased by the member for gold or for the currency of any (iii) In the cases of non-member currencies, Swiss member which is acceptable to the Bank. francs and Afghanistan afghanis, at the rates of 4.2975 francs and 16.80 afghanis, respectively, to I United (b) Whenever the par value of a member's currency States dollar. is increased, the Bank shall return to such member within a reasonable time an amount of that member's No representation is made that any of such currencies is currency equal to the increase in the value of the amount convertible into any other of such currencies at any rate or of such currency described in (a) above. rates. See also Note B. NOTE B (c) The provisions of the preceding paragraphs may be waived by the Bank when a uniform proportionate These currencies and notes are derived from the 18% of change in the par values of the currencies of all its the subscriptions to the capital stock of the Bank which members is made by the International Monetary Fund. is payable in the currencies of the respective members. Such 18% may be loaned by the Bank, and funds received The equivalent of $3,257 is due from 1 member in order to by the Bank on account of principal of loans made by the maintain the value of its currency as required under Bank out of such currencies may be exchanged for other Article II, Section 9. currencies or reloaned, only with the approval in each case of the member whose currency is involved; provided, how- NOTE C ever, that, if necessary, after the Bank's subscribed capital Under Article II, Section 8 (a) (i), any original member of is entirely called, such currencies may, without restriction the Bank whose metropolitan territories suffered from by the members whose currencies are offered, be used or enemy occupation or hostilities during World War II had a exchanged for the currencies required to meet contractual right to postpone payment of l/2 of 1% of the amount of its payments of interest, other charges or amortization on the subscription payable in gold or United States dollars until Bank's own borrowings or to meet the Bank's liabilities June 25, 1951. All members who received such a post- with respect to contractual payments on loans guaranteed ponement have made payment in full except China who has by it. These currencies of the several members, and the made payments totaling $270,000 and has stated that it notes issued by them for any part of such currencies, as recognized its obligation to the Bank and would pay the permitted under the provisions of Article V, Section 12, balance of $2,730,000 as soon as it was in a position to do are held on deposit with designated depositories in the so. territories of the respective member. NOTE D Article II, Section 9 provides for the maintenance of value The principal disbursed and outstanding on loans and the of such 18% currencies as follows: accrued charges for interest, commitment fee, service *22- APPENDIX G charge and loan commission are receivable in United States NOTE H dollars except the following amounts for which the dollar The Bank has sold under its guarantee $58,527,344 of equivalent is shown: loans of which amount $39,705,944 has been retired. The following table sets forth the maturities of the guaranteed Principal Outstanding . . . . . . $211,955,865 obligations outstanding: Accrued Interest, Commitment and Service Charges . . . . . . 1,780,738 Period Amount Accrued Loan Commissions . . . . 468,283 July 1, 1955 to June 30, 1956 . . . . $ 2,963,400 July 1, 1956 to June 30, 1957 . . . . 3,102,000 Total . . . . . . . $214,204,886 July 1, 1957 to June 30, 1958 . . . . 1,532,000 July 1, 1958 to June 30, 1959 . . . . 1,029,000 July 1, 1959 to June 30, 1960 . . . . 1,000,000 NOTE E Thereafter . . . . . . . . . . 9,195,000 The amount of commissions received by the Bank on loans made or guaranteed by it is required under Article IV, Total . . . . . . . . $18,821,400 Section 6, to be set aside as a special reserve to be kept available for meeting obligations of the Bank created by NOTE I borrowing or by guaranteeing loans. On all loans granted The Bank has written off against income all discount and to date the effective rate of commission is 1% per annum. premium on bonds sold or redeemed in the respective years in which sale or redemption occurred. NOTE F NOTE J Pursuant to action of the Board of Governors and Execu- In terms of United States dollars of the weight and fineness tive Directors the net income of the Bank has been allo- in effect on July 1, 1944. cated to a Supplemental Reserve Against Losses on Loans and Guarantees Made by the Bank; and the future net GENERAL income of the Bank will, until further action by the Applications for membership from Afghanistan and Korea Executive Directors or the Board of Governors, be allo- with share subscriptions of $10,000,000 and $12,500,000, cated to this reserve. respectively, have been approved by the Board of Gov- ernors. Afghanistan paid the amounts due on account of NOTE G such subscriptions prior to June 30, 1955 and on July 14 Subject to call by the Bank only when required to meet the completed the other action necessary and thus became a obligations of the Bank created by borrowing or guaran- member on that date. Korea has until September 30, 1955 teeing loans. to accept membership. *23- APPENDIX H Opinioni of Independent Auditor 1000 VERMONT AVENUE, N. W., WASHINGTON 5, D. C. August 8, 1955 To INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D. C. We have examined the financial statements listed below of International Bank for Reconstruction and Development as of June 30, 1955. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, such financial statements, with the notes thereto, present fairly the financial position of the Bank at June 30, 1955, expressed in United States currency, and the results of its operations for the twelve months then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. PRICE WATERHOUSE & Co. FINANCIAL STATEMENTS COVERED BY THE FOREGOING OPINION Appendix Balance Sheet .................................A Comparative Statement of Income and Expenses .............B Statement of Currencies Held by the Bank................C Statement of Subscriptions to Capital Stock and Voting Power .....................D Funded Debt of the Bank.........................E Statement of Loans............................. . Notes to Financial Statements.......................G *24- APPENDIX I Loans and Advisory Assistance COUNTRY-BY-COUNTRY SUMMARY This Appendix contains a country-by-country description of the operations of the Bank in the past fiscal year. For each country in which the Bank was active, information is given on one or more of the following topics: loans made; negotiations and surveys looking to possible loans; general survey missions and other kinds of advisory services. Loans that were made to borrowers other than member governments have the guarantee of the member government concerned. The interest rates shown include the 1% commission which, under the Bank's Articles of Agreement, is allocated to the Bank's Special Reserve. The loan amounts in the tables are expressed in United States dollars and are net of cancellations and refundings. Appendix F, beginning on Page 10, gives additional details on all of the loans made by the Bank since the beginning of its operations. That Appendix shows among other things amounts committed, purpose of loan, interest rates, maturity dates, amounts disbursed and repaid, and amounts sold to other investors. Descriptions of the projects for which loans were made in previous fiscal years may be found in the Annual Reports covering the fiscal years during which the loans were made. '25 A F R I C A ALGERIA much as before the war. The increased traffic has A Bank mission visited Algeria in May and June been due to a marked growth in export-import trade. 1955 to study economic conditions and development Imports especially have increased as the result of plans, and to examine electric power projects. both rising income and the need for capital equip- ment to develop agriculture, industry and public EAST AFRICA services. Improved transport should result in still further advances in East Africa's international trade. TRANSPORT LOAN Amount: $24 million Term: 20 years EGYPT Date: March 15, 1955 Interest: 43,%EGP A Bank mission visited Egypt in late 1954 and early BORROWER East Africa High Commission 1955 to study Egypt's economic and financial situa- GUARANTOR . United Kingdom tion and to make a preliminary study of the Sadd-el- The High Commission is a statutory body which Aali (High Aswan Dam) project for irrigation, operates transport, communications and certain other flood control and electric power development. The services shared by the three British-administered mission's report is now in preparation. territories of Kenya, Uganda and Tanganyika. PURPOSE * The loan will assist the East African ETHIOPIA Railways and Harbours Administration, a branch of During the year the Bank approved two projects being the High Commission, in carrying out a broad pro- financed by the Ethiopian Development Bank-expan- gram of transport improvement. Begun in 1949, the sion of a fiber plant and construction of a macaroni program is expected to be completed in 1957. The factory. The projects called for foreign exchange ex- Bank's loan will help pay for goods and equipment penditures of $200,000 from the Bank's loan of $2 imported under the program during the years 1954- million, made in 1950 to provide the Development 1957. The total cost of the program in these four Bank with foreign exchange. By the end of the fiscal years will be the equivalent of about $100 million, year, the Bank had approved projects requiring a total the greater part of which is being financed by loans of $1.4 million from its loan. A Bank staff member raised in the London market. The transport pro- visited Ethiopia in late 1954 and again in May 1955 gram includes the building of deep water berths and to assist the Development Bank in working out a other facilities at the ports of Mombasa, Dar es credit program to develop coffee production. Salaam and Tanga; the purchase of new locomotives, rolling stock and railway signalling equipment; the FED E RATIO N OF RHO D ES IA equipment and improvement of railway workshops; AND NYASALAND construction of new rail lines; and the purchase of A Bank mission was in the Federation during April road transport vehicles, spare parts and the like. and May 1955 to study development plans and re- ECONOMIC BENEFITS * The program is designed to cent economic trends in the area. ease a heavy and increasing strain which economic development in the past ten years has placed on East N I G ER IA Africa's transport system. Rail traffic and the ton- The report of the general survey mission, which nage of cargo handled at ocean ports are twice as visited Nigeria in late 1953, was presented to the .26- '-p _ _ _ _ LOANS DURING FISCAL YEAR Country No. Amount East Africa 1 $ 24,000,000 ^ sr - s ~E t 1 -o ;- - - TOTAL LOANS 1947-1955 h Belgian Congo 1 40,000,000 East Africa 1 24,000,000 Ethiopia 3 8,500,000 ,,. French West Africa 1 7,500,000 Northern Rhodesia 1 14,000,000 Southern Rhodesia 1 28,000,000 Union of South Africa 4 110,000,000 - iLending in Africa-12 loans in 7 countries totaling $232,000,000 Governments of Nigeria and the United Kingdom mission's recommendations, it would rise to about in September 1954. $272 million by 1959-60. The mission expressed the view that the substan- Among specific recommendations of the mission tial economic growth and rise in living standards are creation of a special development body to advise which has taken place in Nigeria over the past 15 on economic policy and to propose, analyze and years can be continued and even accelerated by car- coordinate public investment; early establishment of rying out a broad program of economic development. a State Bank of Nigeria authorized to issue currency, The program recommended by the mission covers to serve as the principal depository for funds of gov- the five fiscal years ending March 31, 1960. It is ernment and semi-government organizations, and to directed mainly toward strengthening government buy and sell government securities; recruitment of services to support an expansion in production and overseas technical personnel to help overcome Ni- encourage new private enterprise. Recommendations geria's present shortage of technical and managerial are made with respect to agriculture, water resources, skill; the training of Nigerians to fill responsible posi- industry, mining, electric power, transport and com- tions themselves; and further surveys of agriculture, munications, education and health services. Public water resources and local raw materials to pave the expenditure at all levels of government was the way for the development of the country's rich re- equivalent of $143 million in 1952-53; under the sources. *27- LOANS DURING FISCAL YEAR Country No. Amount Ceylon 1 s 19,110,000 India 2 26,200,000 Pakistan 1 13,800,000 A S I A TOTAL LOANS 1947-1955 Ceylon 1 19,110,000 India 7 126,013,813 Iraq 1 6,293,946 Japan 3 40,200,000 Pakistan 4 58,250,000 Thailand 3 25,400,000 Lending in Asia-19 loans in 6 countries totaling $275,267,759 BURMA In response to the Government's request, a Bank The total cost of this stage is estimated at the equi- mission visited Burma in December and January to valent of $31.5 million, and it is expected to be study the economic situation and the country's de- complete in 1959. velopment plans. The Bank has given a memorandum ECONOMIC BENEFITS * The project will supply addi- to the Government expressing its general views on tional power to southwestern Ceylon, the most pro- the development program and the economic and ductive and populous part of the island. In this area financial policies of Burma. are located Colombo, Ceylon's largest city and chief port, and most of the factories which process tea, CEYLON rubber and coconut products, Ceylon's main exports. ELECTRIC POWER LOAN Ceylon has virtually no fuel resources, and the grow- ing demand for power can be met most economically Amount: $19.11 million Term: 254ye by development of hydroelectric potential. Date: July 9, 1954 Interest: 43/A% ' rvr BORROWER . Ceylon OTHER ACTIVITIES PURPOSE . The loan will finance part of the Aber- INDUSTRIAL RESEARCH INSTITUTE * The Government deen-Laksapana scheme for developing the hydro- established the Ceylon Institute of Scientific and In- electric power potential of the Kehelgamu and Mas- dustrial Research in March 1955. The Institute is keliya rivers at a point about 50 miles east of the outgrowth of recommendations made by a gen- Colombo, Ceylon's capital. The scheme is being car- eral survey mission which visited Ceylon in 1951. ried out in stages, the first of which was completed It will undertake research designed to develop new in 1951. The Bank's loan will help to finance the uses for Ceylon's natural resources and to improve next stage: a storage dam will be built on the Kehel- the processes and equipment used in industrial plants. gamu to regulate the river's flow so that more power A Bank staff member arrived in Ceylon in February can be generated; generating capacity at the power 1955 to take up his duties as the first Director of station built in the first stage of the scheme will be the Institute. The cost of his services and those of increased to 50,000 kilowatts by the addition of a senior assistant are being shared, for a period of another 25,000-kilowatt unit; and additional trans- up to five years, by the Bank and the United Nations mission and distribution facilities will be constructed. Technical Assistance Administration. *28- te-e~ ~ : - + X 00 I , ' ' . ' p;-I I d~ DEVELOPMENT CORPORATION * The Government has kilowatts, and transmission facilities. Work on the continued to consult the Bank regarding the estab- plant began in 1953 and the first 62,500-kilowatt lishment of a Development Corporation. Two mem- unit is scheduled to come into operation in October bers of the Bank's staff went to Ceylon in June 1955 1956. The whole project should be complete by the for further discussion. end of 1957. The total cost is estimated at the equivalent of $27.5 million. IN D IA ECONOMIC BENEFITS * The plant will help relieve the acute power shortage in Bombay and the sur- Amout:E16mlEiCn POWERLrounding area, a major industrial center. The capac- Amount: $16.2 million Term: 20 years Date: November 19, 1954 Interest: 43/4% ity of the power plants serving the Bombay area by the end of 1955 will be 273,000 kilowatts; the new BORROWER * The Tata Hydro-Electric Power Supply plant will add more than a third to this capacity by Co., The Andhra Valley Power Supply Co., Ltd., the end of 1957. The present system, being largely The Tata Power Co., Ltd. hydroelectric, is highly vulnerable to shortages of These companies are privately owned and form rainfall. The additional thermal electric capacity part of the large group of Tata enterprises which will be enough to balance not only the present sys- have a long record of operations in many different tem but also the hydroelectric facilities which the industries in India. The companies are the sole sup- Bombay State Government intends to install at pliers of bulk power in Bombay. Koyna, about 140 miles south of Bombay. PURPOSE * The loan will pay the foreign exchange PARTICIPATION * The First National City Bank of costs of constructing a thermal electric power plant New York participated in the loan, without the in Bombay, with a maximum capacity of 125,000 Bank's guarantee, to the extent of $1,364,000, rep- *29- resenting the first four maturities which fall due ECONOMIC BENEFITS * The nature of the Corpora- from October 15, 1958 through April 15, 1960. tion, and its sponsorship by leading financial institu- tions in India and abroad, should enable it to tap LOAN FOR INDUSTRIAL DEVELOPMENT funds in India not at present being made available Amount: $10million Term: 15years to industry, and in due course to increase the flow Date: March 14, 1955 Interest: 4s8 of foreign investment into India. Furthermore, its power to underwrite new issues will fill a gap in the BORROWER * Industrial Credit and Investment Cor- Indian capital market. Through its connections poration of India, Limited abroad, the Corporation should also be in a position The Corporation was established in early 1955 for to help Indian industry to meet some of its needs the purpose of assisting the growth of private indus- for technical knowledge and managerial experience. try in India. It developed from discussions con- ducted in India in February 1954 by two Bank con- OTHER ACTIVITIES sultants. Together with a member of the Bank's POWER PROJECT DISCUSSIONS * The Bank has had staff, they explored with the Government and with preliminary discussions with officials of the Indian Indian industrial leaders the possibility of creating Government about the possibility of assisting in the an institution to provide and stimulate investment in financing of the Koyna hydroelectric power project industry. Subsequently British and American in- in the State of Bombay. vestors agreed to provide part of the equity capital for the new institution. Of the initial share capital, IN D ONE S IA amounting to 50 million rupees ($10.5 million), 35 In June 1955 a Bank mission arrived in Indonesia million rupees were subscribed by Indian investors; for a visit of about six weeks. Its purpose was to 10 million rupees were subscribed by British in- provide the Bank with first-hand knowledge of Indo- vestors (the Eastern Exchange Banks, several insur- nesia's economy and its potentialities. ance companies and industrial firms, and the Com- monwealth Development Finance Company, Ltd.); IRAN and 5 million rupees were subscribed by United At the request of the Iranian Plan Organization, States investors (Bank of America, the Rockefeller staff members visited Iran in November 1954 and brothers, Olin Mathieson Chemical Corp. and West- February 1955, to discuss the new development pro- inghouse Electric International Corporation). In gram which the Organization is charged with formu- addition, the Indian Government made a long-term, lating and supervising. As a result of these discus- interest-free advance to the Corporation of 75 mil- sions, the Bank and the Organization have agreed lion rupees drawn from counterpart funds generated to an arrangement under which the Bank will recruit by United States aid. a small number of foreign specialists, mostly engi- FUNCTIONS OF CORPORATION * The Corporation will neers, to work as employees of the Organization in make long and medium term loans to industrial en- Iran. The Plan Organization will provide funds to terprises; take equity participation in industrial enter- be used by the Bank to make disbursements to these prises; underwrite new issues of securities; guarantee specialists for their services as employees of the loans by other investors; and help industry to obtain Organization. managerial, technical and administrative advice and assistance. The proceeds of the Bank's loan will be IRAQ used for purchases of imported equipment, mate- The Government is assuming the entire cost of the rials and services needed to carry out projects Wadi Tharthar flood control project for which the financed by the Corporation. Bank made a loan of $12.8 million in 1950. In *30- January 1955 the Government canceled the unused ton regarding the projects, and in June 1955 the balance, amounting to $6.5 million, of the loan, and Bank sent two technicians to Japan to examine the in March, repaid the outstanding balance of $6.3 mechanical land reclamation projects. million, 10 years before final maturity. Work on the INDUSTRIAL AND POWER PROJECT STUDIES * Bank project has reached an advanced stage. If it pro- staff members were in Japan between October and gresses on schedule, it will be ready to divert flood December 1954 to examine projects for the modern- waters from the Tigris River by the spring of 1956. ization of steel and machinery manufacturing plants and for hydroelectric power development, for which IS R A EL Bank financing has been requested. They completed A Bank staff member visited Israel from January to study of three hydroelectric projects and two steel April 1955 to advise the newly established Bank of company projects and in May 1955 the Bank's Israel on organization and technical methods of car- views on these projects were given to the Govern- rying out monetary policies. ment for further consideration. The Government asked for and received advice JAPAN from the Bank on how to approach the problem of AGRICULTURAL MISSION * A Bank mission was in lowering costs in the Japanese coal industry, a vital Japan from July to September 1954 in response to sector of the economy. The Bank agreed that under the Government's request for an appraisal of Japan's certain conditions it would help pay the expenses agricultural program which would help in formulat- of a comprehensive survey of the industry by con- ing future governmental policies and in determining sulting engineers. Representatives of the Govern- the magnitude and direction of public investment in ment are expected in Washington in August 1955 to agriculture. The mission's report was transmitted discuss further details including the selection of to the Government in January 1955. qualified consultants. While in Japan, the mission made a preliminary study of four agricultural projects with a view to JORDAN determining their suitability for Bank financing. A general survey mission arrived in Jordan in late These included the irrigation of upland and paddy March 1955 for a stay of about four months. It will fields in the Aichi Prefecture east of Nagoya; for the assess Jordan's economic potentialities and prepare reclamation of Hachiro Lake, a shallow lagoon on recommendations designed to assist the Government the island of Honshu; for the reclamation of peat- in formulating a long-term development program. lands in the Ishikari Valley in central Hokkaido; The seven-man mission includes economists and spe- and for pilot projects to establish methods of large cialists in agriculture, mineral resources and trans- scale mechanical land reclamation most suited to portation. opening large areas to cultivation in Hokkaido and northern Honshu. The mission also considered a L E B A N O N plan to increase the importation of livestock as a STAFF ASSISTANCE * A Bank staff member was in desirable adjunct to the proposed reclamation of Lebanon during December-February to advise the lands which would be suitable for grazing. Government on matters affecting economic planning. The Bank sent a memorandum to the Government LOAN PROJECT * A Bank mission visited Lebanon in February 1955 giving its views on the additional from November to January to appraise the economic technical studies and organizational measures which and financial situation and to study the multi- would need to be undertaken before these projects purpose Litani River development project in all its could be considered for loans. Subsequently discus- aspects. The Bank has invited the Government and sions have taken place both in Japan and Washing- the Litani Authority to send representatives to Wash- *31- ington to discuss legal, financial and administrative While transport, communications and power are problems in advance of loan negotiations. The quite well developed in the Federation, recommenda- Lebanese delegation is expected to arrive in Wash- tions were made for their continued expansion, as a ington in July. basis for the further growth of a variety of private industrial, agricultural and commercial activities. MALAYA About a quarter of the recommended investment In June 1955 the Bank transmitted to the Govem- for the Federation is in the field of social services, ments of the Federation of Malaya, the Crown including improvements in sewerage, water supply, Colony of Singapore and the United Kingdom, the and housing. There is a strong and insistent demand report of the general survey mission which visited in Malaya for more educational, medical and health Malaya in early 1954. facilities and the mission believes that further exten- The report sets forth the mission's recommenda- sion and improvement of these services should be tions for government action and priority investment supported by the Government. over a five-year period, 1955-59, for both the Fed- Much of Singapore's capital requirement is for the eration and Singapore. The proposed program for expansion and improvement of such essential serv- the Federation calls for expenditures of M$775 mil- ices as electricity, gas, water, sewerage, telecommu- lion (U.S.$258 million) and that for Singapore of nications, streets, roads and marketing facilities. The M$610 million (U.S.$203 million). The programs mission endorsed Singapore's plans to enlarge port do not depart significantly in amount or character capacity, to improve and extend street and road from recent patterns of public investment. The mis- networks and to expand telephone facilities. About sion stressed the importance of maintaining the scale half the recommended investment for Singapore is of public expenditures on economic and social de- for social services, with the largest expenditure allo- velopment in both territories in view of the unusu- cated to low-cost rental housing and public schools. ally rapid rates of population growth, now among the The mission believes that Government can assist highest in the world. private enterprise in both territories by offering more The report notes that by Asian standards the vocational training, assisting in technical and market Malayan economy has reached a relatively advanced research, providing suitable sites and other services stage. It has been built principally on the produc- for new industries, improving industrial credit ar- tion of rubber and tin for export, on a large entrepot rangements and, in appropriate cases, adopting poli- trade, on the production of food mostly for local cies of protection. consumption, and a variety of small industries. For The report contains several recommendations for the Federation, the mission placed highest priority on the financing of the program and for organizational the replanting of rubber areas with high-yielding and institutional measures designed to facilitate the varieties to enable the rubber industry to compete drafting and execution of development plans. with synthetic rubber and maintain its present place of paramount importance in the economy. The mis- PAKISTAN sion also recommended that surveys be undertaken ELECTRIC POWER LOAN to increase knowledge of Malaya's agricultural poten- Amount: $13.8 million Term: 15 years tial. The mission recognized the importance of in- Date: June 20, 1955 Interest: 45/8% creasing rice production, but urged that more atten- BORROWER . The Karachi Electric Supply Corpora- tion be given to the relative economic advantages of tion, Ltd. other crops. Special emphasis, it believed, should The Corporation was organized in 1913 and oper- be placed on the possibilities of extending oil palm, ated as a private company until 1952 when the Gov- cocoa and coconut cultivation. ernment obtained majority control by providing *32- capital for urgently needed expansion that was not sterling, falling due from December 1, 1957 through available from private sources. The Government in- December 1, 1959. The participating banks are The tends to dispose of these shares in the Corporation Chartered Bank of India, Australia & China; Eastern as soon as circumstances are favorable. The Corpora- Bank, Limited; Grindlays Bank Limited; Lloyds tion is the sole supplier of power to the metropolitan Bank Limited; Mercantile Bank of India, Limited; area of Karachi, the capital of Pakistan. and the National Bank of India, Limited. PURPOSE * The loan will help to finance the con- struction of a 30,000-kilowatt thermal power plant OTHER ACTIVITIES in Karachi; the rehabilitation of existing power LOAN NEGOTIATIONS * At the end of the fiscal year, plants; the extension and improvement of transmis- negotiations were in progress for loans to The sion and distribution facilities; and engineering serv- Trustees of the Port of Karachi for the reconstruc- ices. The new thermal power station is expected to tion of the East Wharves and to the Karnaphuli come into operation early in 1956 and the entire Paper Mills Limited for a pulp and paper mill in project should be complete by the end of that year. East Pakistan. The total cost is estimated at the equivalent of $25 million. The Bank's loan is expected to be made SYRIA entirely in European currencies, chiefly pounds ster- GENERAL SURVEY MISSION REPORT * In April 1955 ling and German marks, and will finance most of the the Bank transmitted to the President of Syria the foreign exchange costs. report of the general survey mission which spent The new power station and the Corporation's ex- from February until late April 1954 in Syria. isting steam power plants will be equipped to burn The mission was impressed with the rapid growth natural gas to be transported to Karachi by the Sui of the Syrian economy over the last twenty years, Gas Transmission Company, Ltd. The Bank made due almost wholly to private enterprise. The mis- a loan to this company in June 1954 for the con- sion concluded, however, that private initiative will struction of a pipeline from the Sui gas field to not be able to maintain this rate of growth unassisted Karachi. The delivery of gas to consumers is sched- and that the time has come for the Government to uled to begin in August 1955. take a more active role, particularly in the field of ECONOMIC BENEFITS * The project will double the public investment, in order to provide the basis for present output of power generated by the Corpora- further expansion of private enterprise. The report tion and will meet the most urgent needs of the contains recommendations for government action Karachi area. There has been an unusually rapid for the years 1955-1960, requiring public expendi- growth in and around Karachi of light industries, tures of about £S1,900 million ($530 million). most of which process indigenous raw materials for Greatest emphasis is focused on the further de- domestic consumption. Many industrial plants at velopment of agriculture, the main occupation of the present cannot be put into full operation because of people, the chief source of raw materials for manu- the shortage of power. The demand for electricity facturing and the basis of most of Syria's commerce. for commercial and residential purposes has also It is recommended that the Government undertake increased substantially as a result of the growth of land surveys, proceed with irrigation and land set- the city since Partition. tlement schemes, provide better transport for export PARTICIPATION * Six of the Eastern Exchange Banks, commodities, establish storage facilities, encourage the group with offices in Pakistan, participated in better farming methods and improve and expand the loan, without the Bank's guarantee, to the extent agricultural education. of £732,000 ($2,049,000). This represents the Other recommendations pertain to transport, in- first five maturities, all of which will be payable in dustry, power, social services and finance. The de- *33. velopment of transport is one of Syria's most urgent valley. In June 1955 the Bank informed the Gov- needs. Because road transport is best suited to the ernment of its readiness to negotiate two loans: one demands of the Syrian economy, most of the mis- covering most of the foreign exchange cost of equip- sion's recommendations in this field relate to the ping the Port of Latakia, and the other to help highway system. In industry, the report suggests finance the construction of a road network linking government policies to stimulate private investment. the Jezireh province, Syria's major granary, with The mission recommended that power facilities be Aleppo and Latakia. At the same time certain expanded to three times present capacity by 1960. additional information was requested regarding the Other recommendations relate to the extension of Ghab reclamation project. educational facilities, particularly in the vocational field; measures to improve public health and social T H A IL AND services; methods of raising government revenues Bank staff members and a railway consultant visited for development expenditures; and the establishment Thailand between November 1954 and February of a central statistical office. 1955 to appraise and give advice on railway and The Government has formulated a six-year de- port projects for which Bank financing had been velopment budget taking into account the mission's requested. The railway project would be for carry- principal recommendations. ing out an extensive rehabilitation program; and the PROJECT DISCUSSIONS * Studies and discussions have port project would be for the purchase of three continued during the year regarding possible Bank dredges to be used to keep the harbor and channel financing of three projects submitted by the Govern- into Bangkok open to ocean-going vessels. In June ment: equipment for the Port of Latakia, a program 1955 the Bank informed the Thai Government that of road construction, and the draining and reclaim- it was prepared to open negotiations for a loan to ing of the swamplands (Ghab) in the Orontes River help finance the railway project. LOAN DURING FISCAL YEAR Country No. Amount A U S T R A L A S I A Australia 1 $ 54,500,000 TOTAL LOANS 1947-1955 Australia 4 $ 258,500,000 AU S T R A LI A road transport, through the purchase of graders, road LOAN FOR AGRICULTURE, TRANSPORT, construction equipment of various kinds, trucks, and ELECTRIC POWER AND INDUSTRY truck components which will be assembled in Aus- 5.5 mo Ttralia. The loan is also paying for five four-engined Amount: $54.5 millilon Term: 15 years ygg Date: March 18, 1955 Interest: 4 s% aircraft and for components for the manufacture of diesel locomotives and railcars. About $20 million BORROWER . Australia of the loan was allocated to agriculture to finance PURPOSE . The loan was made to help finance im- the import of tractors, combine harvesters, hay ports of equipment needed in agriculture, transporta- balers and other agricultural machinery. The re- tion, electric power and industry. About half the mainder of the loan, about $7.5 million, is to pur- loan is being used to improve transport, particularly chase equipment for industry and for generating and .34- * cc A D ' A u t . A I ; distributing electricity. The industrial equipment is burden on transport of all kinds. The loan is help- for iron and steel production, food processing, min- ing to improve the road system and to increase the ing, automotive and general engineering industries. number of commercial vehicles, as well as to modern- ECONOMIC BENEFITS * The Bank has now lent Aus- ize rail and air operations. Additional electric gen- tralia a total of $258.5 million to assist in carrying erating capacity and new industrial equipment for out large-scale development, both public and private. which funds were also provided will help maintain Most of this development is being financed from the pace of development in the Commonwealth. Australia's own resources; the Bank loans have pro- PARTICIPATION * Eleven private banks in the United vided the dollar exchange necessary to import cer- States-the largest number to participate in a Bank tain equipment which is available only in the dollar loan to date-took $10.4 million of this loan without area. The most recent loan is contributing especially the Bank's guarantee. They took the first six maturi- to increasing agricultural production and to improv- ties of the loan falling due from March 15, 1958 ing key means of transport -road, rail and air. through September 15, 1960. The banks are Manu- Agricultural products account for more than 80% facturers Trust Co., The First National Bank of of Australia's earnings in international trade. The Boston, The First National Bank of Chicago, Bank new farm machinery is helping to increase rural of America (International), The Philadelphia Na- output and is enabling government agencies to carry tional Bank, Chemical Corn Exchange Bank, J. P. forward programs to intensify land use and increase Morgan & Company, Inc., National Shawmut Bank productivity through reclamation, pasture develop- of Boston, Brown Brothers Harriman & Co., The ment, irrigation, and water and fodder conservation. Pennsylvania Company for Banking and Trusts, and Australia's rapid economic growth has put a heavy Empire Trust Company. .35- E U R O P E A U S T R I A by melting snow from its mountains. Consequently, LOAN FOR REISSECK-KREUZECK they supply much less water in winter for hydro- ELECTRIC POWER PROJECT electric power and the electricity networks have to Amount: $12 million Term: 25 years depend heavily on thermal power during this period. Date: July 19, 1954 Interest: 43/4% An important feature of the Reisseck-Kreuzeck de- BORROWERS * The Draukraftwerke and the Verbund- velopment is that it provides for water storage and gesellschaft the generation of hydroelectric power in winter as The Verbundgesellschaft is government owned well as summer. The Draukraftwerke will be able to and controls the main national power network and increase its supplies of power to Austrian industries the operations of the Draukraftwerke. Its system and to export more power to industries in northern serves seven of Austria's nine provinces, an area Italy, which likewise experience winter shortages of which includes Vienna and most of Austria's indus- electricity. The project is an important step in the trial centers. realization of Austria's large hydroelectric potential, PURPOSE * The project being financed will harness which is one of the chief natural resources remain- the potential power in a number of lakes and small ing to be fully developed in Europe. streams situated in the Reisseck and Kreuzeck Moun- tains, a part of the Austrian Alps, which flank the LOAN FOR LUNERSEE ELECTRIC POWER PROJECT valley of the Moell River. Construction of the Amount: $10 million Term: 25 years project was started in 1947 and by the end of 1953 Date: June 14, 1955 Interest: 43/4% the plant was partially in operation. The Bank's loan will be used to finance the remaining part of the BORROWER * Vorarlberger Illwerke (VIW) project: the expansion of generating capacity at the This company was established in Austria in Kolbnitz power station, from 48,000 to 104,000 kilo- 1924 with German, Austrian and Swiss capital, to de- watts, the construction of a new 8,000-kilowatt sta- velop the hydroelectric resources of the Lilnersee tion, a pumping station, and additional dams, tun- (Luner Lake) and of the Ill River, both in the nels, canals and other civil works. When completed province of Vorarlberg in western Austria. Because at the end of 1958, the Reisseck-Kreuzeck project of the predominance of German ownership, the com- will add 112,000 kilowatts of generating capacity to pany has been under public administration since the the Verbundgesellschaft system; capacity of the sys- end of the war. tem now totals 1,352,800 kilowatts, or 56.6% of PURPOSE * The main purpose of the project is to Austria's total. The total cost of the project is esti- supply power for export to the Ruhr and southwest mated at the equivalent of $34.5 million. The Bank's Germany during periods of peak demand. The loan is being made half in Italian lire and half in Lilnersee will be the reservoir for the project. A Swiss francs. Most of the loan will be used to cover dam will be built to raise the storage capacity of expenditures incurred in Austria. the lake and the lake's water supply will be increased ECONOMIC BENEFITS * Austria's rivers are fed largely sixfold by diverting the rUD--ff of a glacier into the *36- LOANS DURING FISCAL YEAR Country No. Amount 0 Austria 2 $ 22,000,000 - Belgium 1 20,000,000 0 Finland 1 12,000,000 0 Italy 1 70,000,000 Norway 1 25,000,000 0- TOTAL LOANS 1947-1955 Austria 2 22,000,000 Belgium 3 66,000,000 Denmark 1 40,000,000 Finland 5 50,081,595 France 1 250,000,000 Iceland 5 5,914,000 .- Italy 3 90,000,000 Luxembourg 1 11,761,983 Netherlands 9 221,451,985 -W7 Norway 2 50,000,000 Turkey 6 61,044,000 Yugoslavia 3 60,700,000 Lending in Europe-41 loans in 12 countries totaling $928,953,563 lake and by pumping excess water up from a basin ECONOMIC BENEFITS * In recent years about 85% located below the new power station. Included in of the power produced by the VIW from its four the project are the construction of a 190,000-kilowatt existing plants has been sold to two German com- power station; the building of the dam and the panies which supply power to the Ruhr and to diversion system; the construction of six miles of Wiirttemberg-Baden. The remainder has been used tunnels, syphons and penstocks to bring water down in Vorarlberg and Tyrol. The Lunersee project will to the power plant and to return pumped water to add 190,000 kilowatts to the VIW's present capacity the lake; and the construction of a transmission line of 356,000 kilowatts. Under a long-term agreement to the German border. Work on the project was with the VIW, the two German companies and the started in 1954 and is expected to be complete by province of Vorarlberg have contracted to purchase the end of 1958. The total cost is estimated at the the power to be produced by the Lilnersee project. equivalent of $38.6 million. The greater part of the Through exports of power to Germany the project Bank's loan will be in European currencies and the will add the equivalent of $1.5 million annually to remainder in United States dollars. About $7 million the present foreign exchange earnings of the com- of the loan will be used for imported equipment; the pany; it will also make more power available to remainder for equipment purchased in Austria. Vorarlberg and Tyrol. .37- PARTICIPATION * The Philadelphia National Bank gium will have a modern network of waterways for participated in the loan, without the Bank's guaran- the transport of bulk cargo. This is essential to tee, to the extent of $153,000, representing the first Belgian industry since nearly a third of domestic and maturity which falls due May 1, 1960. foreign trade now moves on canal barges, and the proportion has been growing in recent years. BELGIUM LOAN FOR WATERWAYS AND FINLAND PORT IMPROVEMENTS LOAN FOR WOOD-PRODUCTS INDUSTRIES Amount: $20 million Term: 15 years AND ELECTRIC POWER Date: December 14, 1954 Interest: 4Y8% Amount: $12 million Term: 15 years Date: March 24, 1955 Interest: 45/8% BORROWER * Belgium JOINT FINANCING * The Bank's loan was made BORROWER * Bank of Finland simultaneously with a public offering of $30 million PURPOSE * Like the greater part of the Bank's four of Belgian bonds by an underwriting group of 71 previous loans in Finland, the proceeds of this loan United States investment firms and banks headed by will be used to expand and modernize wood-products Morgan Stanley & Co. and Smith, Barney & Co. industries and to provide additional supplies of elec- The proceeds of the loan and the bond issue will tric power. About three-quarters of the loan will be cover part of the expenditures incurred in Belgium in European currencies for the purchase of equip- for five projects to improve and modernize ports ment in Denmark, France, Germany, Sweden, Swit- and inland waterways in Belgium. The total cost of zerland and the United Kingdom; the remainder will these projects will be equivalent to $118 million be in dollars for purchases in the United States. The and they will all be completed by 1958. funds are being relent by the Bank of Finland to the DESCRIPTION OF PROJECTS AND BENEFITS TO THE companies carrying out the projects. The loan will ECONOMY * The port project consists of the comple- finance one-fifth of the total cost of the projects; the tion of the Baudouin Lock to afford seagoing ships a remaining costs will be met from Finnish sources. second large entry to the Antwerp dock basin. The The equivalent of about $8 million has been allo- new lock will have a greater capacity than the exist- cated to five wood-products companies. Two of the ing single lock and will help avoid delays now en- companies are undertaking major expansion in the countered by ships entering the port. Antwerp manufacture of sulphate pulp and kraft paper. The handles the bulk of the exports of the Belgium/Lux- other three are replacing and modernizing existing embourg Economic Union, as well as large tonnages plants and in some cases installing equipment which of transit goods, and efficient operation of its port will save importcd fuel and make use of valuable installations is vital to the Belgian economy. chemical residues. Two other projects consist of the construction of The equivalent of $4 million has been allocated to canals which will facilitate and speed up traffic be- two electric power projects. One is a new hydro- tween Antwerp and the highly industrialized southern electric plant being built in northern Finland. The province of Hainaut. A fourth project consists of plant will have an initial generating capacity of the completion of the Ghent Ring canal to by-pass 100,000 kilowatts and will be connected with the the city and thus eliminate delays in transport. The national power grid. The other project is a 30,000- fifth project is the construction of a dam and locks kilowatt thermal power plant being built in western at Neuville to improve navigation on the Upper Finland. Initially, this plant will be connected to a Meuse River between the industrial centers of Li6ge regional network and later its output will be fed into and Namur. When the projects are completed Bel- the national power grid. *38- ECONOMIC BENEFITS * By increasing the output of The Cassa is a government agency which since wood products and electric power, the loan will help 1950 has been charged with the administration of Finland to make fuller use of her two most impor- a comprehensive program to raise standards of liv- tant natural resources-forests and water power. ing in southern Italy, including the islands of Sicily, Modernization and expansion of wood-products in- Sardinia and Elba. dustries, already the major source of Finland's for- PURPOSE AND ECONOMIC BENEFITS * The loan will eign exchange earnings, will permit the manufacture provide funds for projects to increase agricultural of more highly processed products able to command production, industrial output and electric power better prices in world markets. Other benefits stem- service in southern Italy. The Cassa will spend the ming from improvements in manufacturing methods equivalent of $20 million to meet part of the cost will be greater operating efficiency and lower unit of constructing irrigation works on the Catania Plain, production costs. Increasing Finland's available elec- in eastern Sicily, and will relend $50 million for tric power supplies will aid both wood-products and industry and power: $20 million will be lent to pri- other industries. vate companies to help establish new private indus- PARTICIPATION * The Bank of America National trial enterprises, including five in Sicily and two on Trust and Savings Association and The First Na- the mainland; $30 million will be lent for seven tional City Bank of New York participated in the mainland power stations and a transmission line. loan, without the Bank's guarantee, to the extent The Catania irrigation project is based largely on of $2,288,000. Each bank took $1,144,000 of the the creation of a dam and reservoir at Pozzillo on loan, representing the first six maturities falling due the Salso River, northwest of the Plain. It will make from April 15, 1958 through October 15, 1960. possible the irrigation of about 75,000 acres con- taining some 1,500 farms. Irrigation will enable G R E E C E farmers to cultivate the Plain much more intensively In July and August 1954, a Bank mission visited and to greatly increase the value of farm output, Greece to study the desirability of establishing an especially by expanding the production of citrus industrial development bank and to examine the fruits, which are among Italy's most important export technical aspects of projects for the exploitation of crops. More intensive cultivation should create the lignite deposits and the construction of a nitrogenous equivalent of 10,000 new full-time farm jobs in the fertilizer plant. As a result of the mission's recom- area. While the project will not be finished until mendations, the Government has retained consult- 1961, the major works will be finished by 1958. ants to give further study to the lignite project. When full production of new citrus crops is reached, about 1967, the annual value of farm production is ICE LAND expected to reach 14,000 million lire ($22,400,000), The Bank's Director of Marketing visited Iceland or three times the present value; and net income to in April 1955 to advise on the marketing of govern- farmers and farm laborers is expected to quadruple, ment bonds. to 10,000 million lire ($16 million) annually. The five factories to be established in Sicily will ITALY help carry forward the development of agriculture LOAN FOR AGRICULTURE, INDUSTRY there. Two factories, one at the city of Catania AND ELECTRIC POWER itself and another near Syracuse, will make com- Amount: $70 million Term: 20 years pound fertilizers. A third plant, at Catania, will make Date: June 1, 1955 Interest: 43/% concentrated citrus and grape juices and tomato paste from locally grown produce. A pharmaceutical BORROWER * Cassa per il Mezzogiorno plant near Palermo will, among other things, pro- *39. duce insecticides and fungicides to control animal the Bank in 1952, refinancing it with two banks in and plant diseases and pests that cause severe losses New York. on farms in Sicily and the rest of southern Italy. A cement plant to be built near Palermo will reduce NORWAY Sicily's dependence on imports from the mainland. GENERAL DEVELOPMENT LOAN Two new factories will be situated on the mainland: Amount: $25 million Term: 20 years one will be a mill to produce woolen yarn at Frosi- At: Aprill9, Tere: 4ye% none; the other will be a pulp and paper mill at Avezzano. All of these projects should be in opera- BORROWER * Norway tion by 1958 or sooner; taken together, they will JOINT FINANCING * The Bank's loan was made improve Italy's international trade position, by mak- simultaneously with a public offering of $15 million ing products for export or to replace imports. of Norwegian bonds by an underwriting group of With $30 million of the Bank's loan, the Cassa 30 United States investment firms and banks headed will help to finance eight different power projects by Kuhn, Loeb & Co., Harriman Ripley & Co., In- on the mainland which will add 221,700 kilowatts corporated, Lazard Freres & Co., and Smith, Bar- to generating capacity in the area. The projects will ney & Co. be completed by the end of 1957, and will increase PURPOSE - The proceeds of the Bank loan will be generating capacity in southern Italy by one-sixth. applied to the importation of capital goods required The demand for electricity in southern Italy has to continue the development of the Norwegian been rising rapidly since the war, partly as the re- economy. The proceeds of the public bond issue sult of industrial growth stimulated by the Cassa will be similarly applied. It is expected that about program; and additional power is an important requi- one-half of the Bank's loan will be in United States site to the continued development of the area. dollars and the rest in pounds sterling and Nether- The Bank's loan is intended to be made for the lands guilders. most part in European currencies. The funds will ECONOMIC BENEFITS * Since the end of the war, the meet about 45% of the cost of the Catania project, development of the Norwegian economy has been about 40% of the cost of the industrial projects, and rapid and substantial. In the immediate postwar about 60% of the cost of the electric power projects. years, investment was exceptionally high because of PARTICIPATION * The Bank of America National the need to replace assets lost during the war, when Trust and Savings Association participated in the half the merchant marine was sunk and many build- loan, without the Bank's guarantee, to the extent of ings and industrial plants were destroyed. Not all $5 million, representing the first five maturities fall- of this investment could be financed from current ing due from July 15, 1958 through July 15, 1960. savings; the additional capital required for recon- struction came from Norway's own foreign exchange N E T H E R LAN D S reserves and from United States Government assist- The Government prepaid $102,687,000 and ance. The lost assets have now been replaced and 24,515,700 Belgian francs on the $195 million because of large earnings during the years 1951-52, 25-year loan made by the Bank in 1947. The pre- particularly from shipping, Norway has been able payments, made in August 1954 and in February to continue building up its stock of capital equip- 1955, covered the longest maturities on the loan, ment. The high rate of investment of recent years, falling due in 1966 through 1972. however, could not be maintained without endan- In September 1954, KLM Royal Dutch Airlines gering economic stability, and the Government is prepaid the balance of $5.6 million then outstanding taking measures to bring the rate of investment into of the $7 million, six-year loan it had received from line with current conditions. There remains a need *40* for additional capital for productive purposes which During this fiscal year, the Bank approved 14 Norway traditionally has sought and found abroad. projects under these loans requiring the equivalent The Bank loan and the bond issue will help to meet of $3 million. The projects included textile mills this need. and factories for the production of glue, corn products, sheet metal products, automobile springs, T U R K E Y cast iron goods, wire and cable, paint pigments and INDUSTRIAL DEVELOPMENT BANK * The International hollow spun concrete poles for power transmission Bank had made two loans of $9 million each, in lines and lighting standards. 1950 and 1953, to provide the Industrial Develop- CANCELLATION OF PART OF $25.2 MILLION LOAN ment Bank of Turkey with foreign exchange to At the request of the Government, the Bank canceled relend to private industrial concerns for projects $2,356,000 of the $25.2 million loan made in June requiring imports of machinery and equipment. 1952 for the Seyhan multi-purpose dam project. *41. LOANS DURING FISCAL YEAR Country No. Amount Colombia 3 $ 25,400,000 El Salvador 1 11,100,000 Mexico 1 61,000,000 Peru 3 25,500,000 TOTAL LOANS 1947-1955 Brazil 10 194,090,000 Chile 4 37,300,000 Colombia 10 94,705,441 Ecuador 1 8,500,000 W E S T E R N El Salvador 2 23,645,000 Mexico 6 141,327,888 Nicaragua 5 9,190,115 H E M I S P H E R E Panama 2 1,490,00 Paraguay I 5,o0o,000 Peru 6 31,000,000 Uruguay 1 33,000,000 Lending in Western Hemi- sphere-48 loans in 11 countries totaling $579,248,444 B O LI VIA velopment of Chilean agriculture and transportation. In January 1955 two staff members visited Bolivia The agricultural program was based in large part on to assess the country's economic and financial situa- the recommendations of the Bank-FAO mission of tion and to become acquainted with its development 1952. A Bank mission visited Chile in March and program. April 1955 to bring up to date information on the economic and financial situation and to study the BRAZIL economic and financial bases of the program. Par- In July-September 1954, the Bank lent a staff mem- ticular attention was given to measures which have ber as adviser to the Banco do Nordeste do Brasil, been taken or are contemplated to contain inflation- to assist in its organization and in the establishment ary forces, to provide adequate financing for the of basic services. The Banco do Nordeste was estab- domestic costs of the program and to revive incen- lished by the Government in August 1952 to finance tives for investment and production in agriculture the economic development of northeast Brazil. and other fields. The mission's report is under con- sideration in the Bank. BRITISH HONDURAS In June and July of 1954, a staff member visited COLOMBIA British Honduras to advise the Government on its LOAN FOR AGRICULTURAL DEVELOPMENT economic development program. His report was transmitted to the Government in November 1954. Dat: D mb 29 1954 Interest: 41A% CHILE BORROWER * Caja de Cr6dito Agrario, Industrial y In November 1954 the Government transmitted to Minero. the Bank for its consideration a report setting forth The Caja is an autonomous official credit institu- a comprehensive and detailed program for the de- tion with nearly 200 branches which provide credit *42- ~ - t ji s UoseulCCulr~pub1iC p S%ow 0i- -I4- .- / 1r - .43. and banking facilities to rural communities, and sell plant on the Anchicaya river about 30 miles from agricultural supplies. Cali, and transmission facilities. PURPOSE * The loan will finance the importation of The new loan will provide CHIDRAL with the tractors, spare parts, tools and other repair and foreign currency needed for equipment to expand its maintenance equipment needed for mechanized agri- power system by an additional 32,500 kilowatts of culture. This is the Bank's second $5 million loan to generating capacity. The facilities to be added con- the Caja for this purpose; the first was made in 1949. sist of a 20,000-kilowatt generating unit at the As in the case of the first loan, the funds which the Anchicaya hydroelectric plant, a new 12,500-kilo- Caja receives from the sale of machinery are being watt thermal electric plant at Yumbo, just north of placed in a revolving fund, to finance additional ma- Cali, and extension of substation capacity. chinery imports until needed to purchase the cur- ECONOMIC BENEFITS * Cali is Colombia's fastest rency required to service the loan from the Bank. growing city. Since 1938 the population has in- Machinery imports financed by the revolving fund creased from 100,000 to 360,000. During the past under the first loan had amounted to about $16 few years it has also been the scene of extraordinary million by the end of April 1955. industrial growth. For years, however, Cali has been ECONOMIC BENEFITS * The machinery imported un- suffering from an inadequate power supply. The ex- der the loan will contribute to the expansion of farm pansion in power capacity financed by this loan will production needed to increase Colombia's supply of take care of expected demand for power in the Cali foodstuffs. The machinery purchased under the first area through 1960. loan helped make possible the marked increase in farm production after 1950. It permitted an expan- RAILWAY LOAN sion of cultivated areas, raised yields per acre and Amount: $15.9 million Term: 25 years reduced costs of production. Date: June 15, 1955 Interest: 43/4% PARTICIPATION * The Chase Manhattan Bank par- ticipated in the loan to the extent of $2 million, BORROWER * Ferrocarriles Nacionales de Colombia representing the first four maturities falling due in The borrower, the Colombian National Railroads, 1957 and 1958. The First National Bank of Boston is an autonomous enterprise established in Decem- participated to the extent of $1 million, representing ber 1954 to operate the state-owned railroads. the fifth and sixth maturities falling due in 1959. PURPOSE AND ECONOMIC BENEFITS * The loan was Both banks participated in the loan without the made to help finance an extension of the Magdalena Bank's guarantee. Valley Railroad (now called the Atlantic Railroad) being built with the aid of a $25 million loan made ELECTRIC POWER LOAN by the Bank in 1952. The original purpose of the Amount: $4.5 million Term: 20 years Railroad was to provide a reliable rail-and-river Date: March 24, 1955 Interest: 434% route between central Colombia and the Caribbean ports, and to link the country's eastern and western BORROWER * Central Hidroel6ctrica del Rio Anchi- rail networks. The extension will eliminate the need caya, Limitada (CHIDRAL) for river transport en route, and will provide a CHIDRAL is a publicly owned corporation, and through rail connection to Santa Marta on the Carib- will be the sole supplier of electric power to Cali. bean coast. The rail line will also be linked with PURPOSE * This is the second loan made by the Bank Barranquilla, Colombia's largest Caribbean port, by to CHIDRAL for power development. An earlier a truck-trailer service to be operated by the Railroad loan of $3,530,000 made in 1950 has helped to build over a highway being built as a part of the national a dam and a 24,000-kilowatt hydroelectric power highway program; the service will cross the Magda- .44- lena River to Barranquilla by ferry. The chief bene- tion and training area for the country as a whole. fit from the railway extension will be safer and faster AGRICULTURAL MISSION - A Bank mission was in transportation, with a saving of three to four days in Colombia for three months beginning in March 1955 transporting goods between the Caribbean and the to undertake a general review of the agricultural principal cities of the interior. The line should also sector of the economy and to make recommendations encourage agricultural development in the area for a long-range program of agricultural develop- traversed and increase the earnings of the Railroads. ment. Particular study was given to the allocation The Bank's loan will pay for imported equipment of resources available for investment in agriculture. and services needed to extend the railroad another STAFF ASSISTANCE * In May 1955 the Bank sta- 190 miles from Gamarra to Fundaci6n; to improve tioned a staff member in Colombia to observe and the 60 miles of permanent way of the existing rail- advise on technical and administrative aspects of road from Fundaci6n to Santa Marta; to construct highway and railroad programs which the Bank is terminal facilities at Santa Marta and at Ci6naga helping to finance. where the railroad and Barranquilla road will inter- sect; and to install ferry slips. The loan will also COSTA RICA finance the purchase of additional rolling stock, a In November 1954 a staff member and a financial ferryboat and tractor-trailer units. The Colombian consultant visited Costa Rica to study a project for Government is financing the local currency costs of expanding an agricultural and industrial credit pro- these facilities and the full cost of construction of gram operated by the Banco Central de Costa Rica the highway and expansion of port facilities at Santa through the country's commercial banking system. Marta. The total amount of this Government financ- Another staff member visited Costa Rica in March ing is estimated at the equivalent of $20.5 million. 1955 to carry out further investigations. The Bank Construction under the first loan began early in expects soon to begin negotiations for a loan to 1953 and the railroad is expected to be in operation assist in financing the project. by early 1958. If work on the extension is started soon, the new rail route to the Caribbean could be DOMINICAN REPUBLIC completed at the same time. The Bank's Director of Marketing visited the PARTICIPATION ' The Bank of America National Dominican Republic in March 1955 to advise the Trust and Savings Association participated in the Govemment on the development of the local capital loan, without the Bank's guarantee, to the extent of market. $866,000. This amount represents the first four maturities which fall due from November 1, 1958 ECUADOR through May 1, 1960. PROJECT STUDIES A Bank mission went to Ecuador in June 1955 to assess the current economic situation OTHER ACTIVITIES and to examine projects which are considered to be of MISSION TO THE CAUCA VALLEY - A Bank mission high priority by Ecuador's National Planning Board. visited Colombia in February-March 1955 to assist Among the projects are a program of highway con- the newly established Autonomous Regional Cor- struction and maintenance and the construction of a poration of the Cauca in drawing up a preliminary new port at Guayaquil. The Bank has also been plan for the development of the Cauca River Valley giving active consideration to a project for enlarging region. The Corporation is carrying out the first the capacity of the hydroelectric power plant which effort by a regional agency to systematically develop serves Quito. the resources of one of Colombia's river valleys, NATIONAL PLANNING BOARD * At the request of the and intends to make the Cauca Valley a demonstra- Government, two staff members of the Bank visited .45- Ecuador at the end of 1954 to assist in organizing ment and cultivation. It is estimated that, with year- the National Board of Planning and Economic round access to wider markets at lower transporta- Coordination. At the same time the Bank's Director tion costs, agricultural production in this coastal zone of Marketing went to Ecuador to advise the Board will increase in value by the equivalent of about on measures to mobilize local capital. A Technical $10 million a year. Another expected benefit lies in Director of the Board, who had been recommended denser settlement of the zone, which should relieve by the Bank, was appointed early in 1955. Begin- population pressure elsewhere in El Salvador. Even- ning in April 1955 a Bank staff member was sta- tually the new highway may also become an inter- tioned in Ecuador for a period of four months to national artery linking El Salvador with Guatemala serve as liaison between the Board and the Bank. and Honduras. RAILWAY CONSULTANT * At the request of Empresa PARTICIPATION * The Philadelphia National Bank de Ferrocarriles del Estado, a consultant engaged by participated in the loan, without the Bank's guaran- the Bank was in Ecuador in September-October 1954 tee, to the extent of $250,000 of the first maturity, to advise the Quito-Guayaquil Railroad on steps to which falls due April 15, 1959. improve management and operations. His report has been given to Empresa. GUATEMALA DEVELOPMENT PROGRAM * A Bank mission visited EL SALVADOR Guatemala in November 1954 to assist the Govern- ment in setting up a National Planning Council, Amont: HiHWAem:which was established at the end of the year. In Date: October 12, 1954 Interm t 4/% February 1955 the Bank stationed a Special Rep- resentative in Guatemala City to help prepare a BORROWER * El Salvador five-year development program and to advise the PURPOSE * The project consists of the completion of Government on economic and financial policy. a 190-mile all-weather highway along the Pacific CAPITAL MARKET * The Bank's Director of Market- coast extending from the border of Guatemala to ing went to Guatemala in November 1954 to advise the port of La Uni6n on the Gulf of Fonseca. The on steps for developing the local capital market. coastal highway was started several years ago; by PROJECT STUDIES * A Bank mission visited Guate- late 1954, 25 miles were open to traffic and another mala in March-April 1955 to study highway projects stretch was being constructed and financed by the for which the Government had requested a loan. In Government without outside assistance. The loan June 1955 negotiations were well advanced for a will finance the foreign exchange costs of the remain- loan to help finance a program of highway construc- ing sections totaling about 150 miles. The total cost tion and maintenance. of building these sections will be the equivalent of about $16 million. The Highway Department of El HAITI Salvador will maintain the new highway and will ex- The Bank sent two missions, one in November- pand its maintenance facilities for this purpose. December 1954 and the other in April 1955, to ECONOMIC BENEFITS * By opening up new land examine a program for the development of trans- areas to cultivation, the highway should provide an portation. As a first stage of this program, the Gov- incentive for increased agricultural production. Con- ernment with the assistance of consulting engineers necting with El Salvador's existing system of high- is engaged in strengthening its road maintenance ways and feeder roads, the highway will complete an organization and enlarging its operations, and has important farm-to-market link and will help to open requested a Bank loan to finance equipment, mate- up the country's last major land reserve to settle- rials and services for this purpose. *46- H O N D U R A S in manufactured goods. Freight tonnage more than A Bank staff member was in Honduras from October doubled between 1940 and 1952 but maintenance to December 1954 to assist the Government in set- of the railroad and replacement of rolling stock and ting up a National Economic Council. In January track failed to keep pace with the greatly increased 1955 the Bank stationed a small resident mission in demands. Improved and expanded rail services Honduras to assist the Council in drawing up a long- should stimulate agricultural production and thereby term program of economic development, and to benefit the Mexican economy as a whole. The line advise the Government generally on economic and crosses 600 miles of flat fertile coastal lands con- financial policy. taining about 8.5 million acres suitable for agricul- ture. Approximately 1.75 million of this acreage is M E X I C O now irrigated and this figure is expected to be raised to 4.5 million in the next ten years. The principal RAILWAY LOAN crops of the area include wheat and cotton, and the Amount: $61 million Term: 15 years Date: August 24, 1954 Interest: 45g% region has also become an important source of winter vegetables for export to the United States. Gains in BORROWER * Ferrocarril del Pacifico, S.A. de C.V. wheat and cotton production in the area have had a The borrower, the Pacific Railroad of Mexico, is beneficial effect on Mexico's balance of payments; owned almost entirely by the Government. The rail- imports of wheat have been nearly eliminated, while way extends 1,100 miles from Nogales on the Mexi- cotton has become Mexico's chief export crop. can-United States border to Guadalajara, Mexico's PARTICIPATION * The Chase Manhattan Bank and second largest city, and serves the northwestern the Chemical Corn Exchange Bank participated in coastal region. the loan without the Bank's guarantee. The Chase PURPOSE * The Railroad is undertaking an extensive Manhattan Bank took $1 million of the first maturity program of rehabilitation and modernization which which falls due on June 1, 1959. The participation includes the re-laying of almost the entire track, of the Chemical Corn Exchange Bank was $210,000 repairing bridges, replacing steam with diesel loco- of the first maturity and all of the second maturity of motives, the purchase and repair of freight cars, and $1,210,000 which falls due December 1, 1959. the improvement of the communications system. The Bank's loan will pay for the import of 64 diesel OTHER ACTIVITIES locomotives; 684 freight cars; 4 million railroad ties; ELECTRIC POWER STUDY . This study, begun by the 170,000 short tons of rail; other track material; and Mexican Government in October 1953, is nearing communications and shop equipment. The entire completion. Its purpose is to assess the needs of the program is expected to cost the equivalent of $80 country for expansion of electric power facilities and million and will take four years to complete. In to recommend means of financing the expansion. addition to rehabilitation of its physical facilities, The Bank has cooperated with the Government the Railroad is undertaking measures to improve its throughout the course of the study and during the administration and efficiency of operation. Consult- fiscal year Bank staff members made periodic visits ants have been retained to advise and assist in all to Mexico to assist in the work. phases of the program. ECONOMIC BENEFITS * The Railroad traverses NI C A RAG U A Mexico's northwest coast, an important and rapidly STAFF ASSISTANCE * In September 1954 the Bank growing agricultural region. The area depends heav- agreed to extend for another year the assignment ily on the services of the Railroad to carry products of its Resident Representative in Nicaragua to advise to Mexican and United States markets and to bring the Government on economic development. .47. A staff member of the Bank visited Nicaragua in fiscal year, the Bank and Government agreed to April 1955 to advise on the development of the revise the program on which an unexpended bal- local capital market, and in particular to give the ance of $3.1 million of the loan would be used. The Instituto de Fomento Nacional advice on its program revised program lays greater stress on the mechaniza- for stimulating the investment of private capital in tion of agriculture, on improved transportation facili- industrial enterprises. ties, and on aid to cattle raisers. Larger allocations PROJECT STUDIES * An agricultural consultant visited have been made for the importation of farm ma- Nicaragua in February 1955 on behalf of the Bank chinery and for road building and maintenance to study various projects prepared by the Instituto equipment; a new feature of the program is the pro- de Fomento Nacional for the prevention and repair vision of funds for equipment to improve river of soil erosion, for land clearance and for expansion transportation. of the dairy industry. Preliminary discussions have been held on the possibility of a Bank loan to finance PERU imports needed for these projects. LOAN FOR AGRICULTURAL DEVELOPMENT LOAN NEGOTIATIONS * At the end of the fiscal year, Amount: $5 million Term: 8 years negotiations were well advanced for two loans to Date: November 12, 1954 Interest: 41/4% help finance the construction of a thermal electric power plant at Managua, with transmission and dis- BORROWER * Banco de Fomento Agropecuario del tribution facilities, and the expansion of the distribu- Peru. tion systems of 15 outlying communities which The Banco is an autonomous government institu- would use power from the new plant. tion which provides agricultural credits and per- forms other services in the agricultural field. PANAMA PURPOSE * The Bank loan will enable the Banco RESIDENT REPRESENTATIVE * In September 1954 the to expand intermediate and long-term lending to Bank agreed to extend for at least another year the farmers for imported goods and to devote more of assignment of its Resident Representative in Panama. its resources to loans for expenditures in local cur- The Representative, in cooperation with the local rency. About half of the proceeds of the loan will United States Operations Mission and other technical be used to purchase farm machinery, mostly tractors assistance agencies, is working on the preparation of and tractor-drawn equipment. A quarter of the loan a comprehensive program for the development of the will be spent on irrigation equipment and the re- economy of Panama. mainder for purchases of fencing materials, livestock LOAN NEGOTIATIONS - From time to time throughout for breeding purposes, and for equipment and mate- the year Bank staff members visited Panama to rials for processing and storing food. With the excep- advise on the preparation of a highway rehabilitation tion of the livestock which the Banco Agropecuario and maintenance program. Negotiations for a loan will itself import and sell to farmers, the equipment to help finance this program were well advanced by and materials to be financed by the loan will be the end of the fiscal year. imported and sold through the usual commercial trade channels. PA R A G U A Y ECONOMIC BENEFITS * The introduction of agricul- In December 1951 the Bank made a loan of $5 mil- tural machinery into the coastal region, where farm lion to Paraguay for the development of agriculture. labor is short, is essential to greater production of The proceeds were to be spent for hand tools, farm Peru's principal export crops-cotton, sugar and rice. machinery and equipment for the construction and And machinery is necessary to raise and expand maintenance of farm-to-market roads. During the production of wheat, potatoes and barley in the high *48- mountain valleys, and for clearance of extensive to farmers in lots ranging in size from about 35 to jungle areas for settlement. Equipment for irriga- 250 acres, and will assist in financing these private tion in areas along the coast, where there are severe purchases. Two agencies which received previous shortages of water, is a basic requirement to in- Bank loans will furnish services to farmers for the creased agricultural production. The import of high cultivation of land. The Government is arranging quality stock will improve breeds of both cattle and with the Banco de Fomento Agropecuario to make sheep in Peru. Modern storage and processing equip- credit available to purchasers for the clearing and ment for food will have the effect of reducing waste preparation of the land, and with Servicio Coopera- and spoilage and should result in better returns to tivo Interamericano de Producci6n de Alimentos farmers and lower prices to consumers. (SCIPA), to make its machinery pools available to PARTICIPATION * The New York Trust Company those farmers who do not own their own equipment. participated in the loan, without the Bank's guaran- The Bank made earlier loans of $5 million to the tee, to the extent of $748,000, representing the first Banco (see p. 48) and $3 million to SCIPA for the two maturities falling due in August 1957 and expansion of their operations. February 1958. ECONOMIC BENEFITS * About 60% of the new acreage to be brought into production will be de- voted to food crops and pasture, and the output LOANnt FOR milliRIoInETe 25ye will be used for local consumption. This should Amount: $18 million Term: 25 years prove an important addition to Peru's domestic food e Asupply and should help cut mounting imports of BORROWER - Peru food. The remaining acreage will be used to grow PURPOSE * The loan will help to finance the second long staple cotton, a readily exportable commodity stage of an irrigation project being carried out by which commands premium prices throughout the the Government in the coastal area of northern Peru. world. Thus the project should produce considerable The project is near Piura, the center of a large and savings in foreign exchange now expended on food growing agricultural and industrial region, about 600 imports and should add to Peru's exchange earnings miles north of Lima. The first stage consisted of through increasing exports of cotton. building tunnels and canals to divert water from the PARTICIPATION - The Manufacturers Trust Company Quiroz to the Piura River; this has provided an and the New York Trust Company participated in assured supply of water for the cultivation of about the loan, without the Bank's guarantee, to the extent 75,000 acres in the lower Piura Valley. The second of $496,000, representing the first two maturities stage consists of the construction of a dam which falling due in September 1959 and March 1960. will create a reservoir to store water from the diver- sion system, and the building of 53 miles of main canals and 200 miles of lateral canals. The water Amount: $2.5 million Term: 15 years made available will be sufficient to irrigate some 125,000 acres of now uncultivated land. The Bank's April 19, 1955 Interest: 45/8% loan will cover the cost of imported services, equip- BORROWER * Compafiia Nacional de Cemento Port- ment, materials and supplies. The total cost of the land del Norte, S.A. project is estimated at the equivalent of $28.5 mil- The borrower is a privately-owned Peruvian com- lion. Work is scheduled to start in 1955 and the pany, established in 1954. project should be complete in 1958. PURPOSE * The Bank's loan will help to finance con- The Government of Peru is acquiring the land to struction of a Portland cement plant at Pacasmayo be irrigated and plans to sell it at reasonable prices in northern Peru. The new plant will have a capacity .49. of 100,000 tons of cement annually, and is expected OTHER ACTIVITIES to come into operation in 1957. It will be of modern PROJECT STUDIES * A mission from the Bank visited design and include complete power facilities. Total Peru for a period of five weeks in April-May 1955 cost of the project is estimated at the equivalent of to review the economic situation, to discuss future $5 million. development plans of the Government, and to make ECONOMIC BENEFITS * Northern Peru must now ob- a preliminary examination of several projects for tain its supplies of cement either from two plants which financing has been requested. located near Lima, about 400 miles south of the new plant, or from abroad. Notwithstanding the U R U G U A Y high cost of cement in this region, consumption has At the end of the fiscal year, negotiations were well quadrupled in the past six years. The new plant advanced for a loan to the Administraci6n General should not only provide cement at a lower cost but de las Usinas El6ctricas y los Telefonos del Estado should also bring about substantial savings in foreign for another 50,000-kilowatt thermal electric power exchange. unit for Montevideo. In addition, the Bank has in- PARTICIPATION * The Manufacturers Trust Company formed the Government and the Special Commission participated in the loan, without the Bank's guaran- for Livestock Development that it is prepared to re- tee, to the extent of $310,000, representing the first ceive Uruguayan representatives in Washington to four maturities falling due in 1958 and 1959. negotiate a loan for a livestock project. *50- APPENDIX J K L %Fai \r F , ci2 Xy 9 i |9,j- ai .l1;|e JUNE 30, 1955 EXPRESSED IN MILLIONS OF UNITED STATES DOLLARS, NET OF CANCELLATIONS AND REFUNDINGS Areas Western Auastral- Hemi- Purpose Total Asia Africa asia Europe sphere Grand Total . . . . . . . . . . . 2,274 275 232 259 929 579 Development Loans Total . . . . . . . . . . 1,777 275 232 259 432 579 ELECTRIC POWER: Generation and Distribution . . . . . 617 112 88 33 90 294 TRANSPORT: . . . . . . . . . . . 533 81 100 103 59 190 Railroads . . . . . . . . . . . 308 63 93 22 3 127 Shipping .................................. 12 - - - 12 - Ports and Inland Waterways . . . . . 44 4 - - 37 3 Roads . . . . . . . . . . . . 111 - 7 44 - 60 Airlines and Airports . . . . . . . 44 - - 37 7 - Pipelines (natural gas) . . . . . . . 14 14 - - - - COMMUNICATIONS: Telephone, Telegraph and Radio . . . . 26 - 2 - - 24 AGRICULTURE AND FORESTRY: . . . . . . 225 40 - 91 46 48 Farm Mechanization . . . . . . . 101 - - 75 2 24 Irrigation and Flood Control . . . . . 87 30 - 6 31 20 Land Clearance and Improvement . . . 21 10 - 6 2 3 Crop Storage . . . . . . . . . 5 - - - 4 1 Forestry . . . . . . . . . . . 11 - - 4 7 - INDUSTRY: . . . . . . . . . . . 236 42 2 32 137 23 Iron and Steel . . . . . . . . . 58 32 - 6 20 - Pulp and Paper . . . . . . . . . 64 - - - 44 20 Fertilizers and other Chemicals . . . . 17 - - 1 16 - Other Industries . . . . . . . . . 39 - - 14 23 2 Mining . . . . . . . . . . . 27 - - 11 16 - Development Banks . . . . . . . . 31 10 2 - 18 1 GENERAL DEVELOPMENT . . . . . . . . 140 - 40 - 100 - Reconstruction Loans Total ................................ 497 - - - 497 - *51- APPENDIX K Administrative Budget FOR THE FISCAL YEAR ENDING JUNE 30, 1956 There is outlined below the Administrative Budget for the fiscal year ending June 30, 1956, as prepared by the President and approved by the Executive Directors in accordance with Section 19 of the By-Laws. For purposes of comparison, there are also outlined below the administrative expenses incurred during the fiscal years ended June 30, 1954, and 1955. Actual Expenses Budget 1954 1955 1956 BOARD OF GOVERNORS . . . . . . 130,999 193,037 397,000 EXECUTIVE DIRECTORS . . . . . . 365,404 372,381 422,000 STAFF Personal Services . . . . . . 3,092,651 3,247,322 3,608,000 Staff Benefits . . . . . . . . 334,454 361,456 425,500 Travel .................. 553,280 557,046 610,000 Consultants ............... 186,084 176,724 200,000 Representation . . . . . . . 57,542 4,224,011 57,376 4,399,924 56,000 4,899,500 OTHER ADMINISTRATIVE EXPENSES Fees & Compensation . . . . . 66,259 140,003 132,000 Supplies & Materials . . . . . 40,864 49,989 55,000 Rents & Maintenance . . . . . 424,650 536,206 594,000 Communications ............ 128,930 165,993 176,000 Furniture & Equipment . . . . 35,485 67,596 74,000 Printing .................45,029 60,593 71,500 Books & Library Service . . . . 66,198 68,630 73,500 Insurance ................21,786 24,501 35,500 Other ..................5,981 835,182 9,027 1,122,538 10,000 1,221,500 CONTINGENCY . . . . . . . . - - 100,000 Total $5,555,596 $6,087,880 $7,040,000 SPECIAL SERVICES TO MEMBER COUNTRIES . . . . . . . 416,806 560,395 575,000 Grand Total . . . . . $5,972,402 $6,648,275 $7,615,000 The initial Administrative Budget for the fiscal year ending June 30, 1955 was $6,422,000; an increase in this amount to $6,692,000 was approved by the Executive Directors during the year. No estimate has been made of bond registration, issuance and other financial expenditure for the fiscal year ending June 30, 1956. The amount of bonds which may be issued by the Bank during the year is not known. These expenditures may amount to about $100,000, exclusive of commissions and premiums, for each $100 million of bonds which the Bank may issue. *52* ri r- :4 2 D(- a o i, CD CD r C D . q ...... .. . . . . . ... CD. .. . . ... N.,......t......... rL C. w.... O...°, ... 'I 0. 5 cn. . .. . . . . . . . .. . .... ... ... ..... ... ..... ... ..... ... ..... . Ceqo Q . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . ..... > . . .. .. . . . . .. .. . . . . .. .. . . . ...... ..... ..... ..... ..... ..... ... ...... . . .. . . . . . .. . .. .. . .. .. . .. .. . .. .. . .. .. . . . .. ...... . .... . .. V . ... .. .. . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .>8oo .o8 . .o .8to .ooo0 .o80 .o8o0 .8800 .> .. . .0 b t 0 t-i~~~~~ 0 -.ti j -I -t - 0 .- . t . . . . . . u .- . . . . C W O4-Ci Q 0-OOoA- o tA AOO-.W O b~ ~~~~ -C jt-~ I. o- t . sO - ) C t ' -0 Z J a A- -- LA- Ab lbb b bbbb ~-~A-- 0-~-~0 -LO 000~\0 OOUJAOOO 0I'JO\OAOO. 0 0~\~ O-0( APPENDIX M Giovernors and Alternatec JUNE 30, 1955 Member Government Governor Alternate Australia . . . . . . . . . . . . Sir Arthur William Fadden Sir Roland Wilson Austria . . . . . . . . . . . . Reinhard Kamitz Wilhelm Teufenstein Belgium . . . . . . . . . . . . Henri Liebaert Maurice Frere Bolivia . . . . . . . . . . . . . Augusto Cuadros Sanchez Fernando Pou Mont Brazil . . . . . . . . . . . . . Eugenio Gudin Jose Soares Maciel Filho Burma . . . . . . . . . . . . . U. Tin U Kyaw Nyun Canada . . . . . . . . . . . . Walter E. Harris A. F. W. Plumptre Ceylon . . . . . . . . . . . . . M. D. H. Jayawardene R. S. S. Gunewardene Chile . . . . . . . . . . . . . Arturo Maschke Felipe Herrera China . . . . . . . . . . . . . Peh-Yuan Hsu Tze-Kai Chang Colombia . . . . . . . . . . . . Luis Angel Arango Eduardo Arias Robledo Costa Rica . . . . . . . . . . . Angel Coronas Mario Fernandez Cuba . . . . . . . . . . . . . Luis Machado Joaquin E. Meyer Denmark . . . . . . . . . . . . Svend Nielsen Hakon Jespersen Dominican Republic . . . . . . . . . J. J. Gomez Hector Garcia Godoy Ecuador . . . . . . . . . . . . Luis Ernesto Borja Ramon de Ycaza Egypt . . . . . . . . . . . . . Ahmed Zaki Saad Albert Mansour El Salvador . . . . . . . . . . . Catalino Herrera Luis Escalante-Arce Ethiopia . . . . . . . . . . . . Ato Menasse Lemma Walter H. Rozell, Jr. Finland . . . . . . . . . . . . Klaus Waris Ralf Torngren France . . . . . . . . . . . . . Minister of Finance Pierre Mendes-France Germany . . . . . . . . . . . . Ludwig Erhard Fritz Schaeffer Greece . . . . . . . . . . . . . Emmanuel Tsouderos George Mantzavinos Guatemala . . . . . . . . . . . Gustavo Miron Porras Gabriel Orellana Haiti . . . . . . . . . . . . . Clement Jumelle Christian Aime Honduras . . . . . . . . . . . . Guillermo Lopez Rodezno Rafael Callejas H. Iceland . . . . . . . . . . . . . Jon Arnason Thor Thors India . . . . . . . . . . . . . Chintaman D. Deshmukh Benegal Rama Rau Indonesia . . . . . . . . . . . . Ong Eng Die Loekman Hakim Iran . . . . . . . . . . . . . Ali Asghar Nasser Djalaleddin Aghili Iraq . . . . . . . . . . . . . Dhya Jafar Mudhaffer Hussien Jamil Israel . . . . . . . . . . . . . David Horowitz Martin Rosenbluth Italy . . . . . . . . . . . . . Donato Menichella Giorgio Cigliana-Piazza Japan . . . . . . . . . . . . . Hisato Ichimada Eikichi Araki Jordan . . . . . . . . . . . . . Saad Nimry El-Sharif Mohammad Sharaf Lebanon . . . . . . . . . . . . Andre Tueni Raja Himadeh Luxembourg . . . . . . . . . . . Pierre Werner Rene Franck Mexico . . . . . . . . . . . . Antonio Carrillo Flores Jose Hernandez Delgado Netherlands . . . . . . . . . . . J. van de Kieft A. M. de Jong Nicaraguaa . . . . . . . . . . . . Guillermo Sevilla-Sacasa Alejandro Baca Munoz Norway . . . . . . . . . . . . Arne Skaug Ole Colbjornsen Pakistan . . . . . . . . . . . . Mohamad Ali Vaqar Ahmed Panama . . . . . . . . . . . . Mario de Diego Roberto M. Heurtematte Paraguay . . . . . . . . . . . . Pedro A. Caballero Julio C. Kolberg Peru . . . . . . . . . . . . . Fernando Berckemeyer Emilio Foley Philippines . . . . . . . . . . . Miguel Cuaderno Sr. Emilio Abello Sweden . . . . . . . . . . . . N. G. Lange A. Lundgren Syria . . . . . . . . . . . . . H.usni A. Sawwaf Rafik Asha Thailand . . . . . . . . . . . . Serm Vinicchayakul Puey Ungphakorn Turkey . . . . . . . . . . . . . Hasan Polatkan Munir Mostar Union of South Africa . . . . . . . . Eric Hendrik Louw M. H. de Kock United Kingdom . . . . . . . . . . Richard Austen Butler Sir Leslie Rowan United States . . . . . . . . . . . George M. Humphrey Samuel C. Waugh Uruguay . . . . . . . . . . . . Nilo Berchesi Roberto Ferber Venezuela . . . . . . . . . . . . Jose Joaquin Gonzalez-Gorrondona, Jr. Alejandro J. Huizi-Aguiar Yugoslavia . . . . . . . . . . . Vojin Guzina Nikola Miljanic *54- APPENDIX N Executive Directors and Alternates and their Voting Power JUNE 30, 1955 Directors Alternates Casting the Votes by Total APPOINTED votes of country votes Andrew N. Overby John S. Hooker United States 32,000 32,000 Viscount Harcourt M. T. Flett United Kingdom 13,250 13,250 Kan Lee China 6,250 6,250 Roger Hoppenot Maurice Perouse France 5,500 5,500 G. R. Kamat V. G. Pendharkar India 4,250 4,250 ELECTED Luis Machado Julio E. Heurtematte Mexico 900 (Cuba) (Panama) Cuba 600 Peru 425 Uruguay 355 Venezuela 355 Costa Rica 270 Dominican Republic 270 4,475 Guatemala 270 El Salvador 260 Honduras 260 Nicaragua 258 Panama 252 Thomas Basyn Hans Kloss Belgium 2,5001 (Belgium) (Austria) Austria 750 4,280 Turkey 680 Luxembourg 350 Mohammad Shoaib Ali Akbar Khosropur Pakistan 1,250 (Pakistan) (Iran) Egypt 783 Iran 586 Syria 315409 Iraq 310 4,099 Lebanon 295 Ethiopia 280 Jordan 280 Jorge Mejia-Palacio Brazil 1,300 (Colombia) Chile 600 Colombia 600 Philippines 400403 Bolivia 320 4,036 Ecuador 282 Haiti 270 Paraguay 264 .55. APPENDIX N (continued) Executive Directors and Alternates and their Voting Power JUNE 30, 1955 Directors Alternates Casting the Votes by Total ELECTED votes of country votes D. Crena de Iongh A. Tasic Netherlands 3,000 (Netherlands) (Yugoslavia) Yugoslavia 650 3,945 Israel 295 Takeo Yumoto William Tennekoon Japan 2,750 (Japan) (Ceylon) Burma 400 3,925 Ceylon 400 Thailand 375 Soetikno Slamet Felice Pick Italy 2,050 (Indonesia) (Italy) Indonesia 1,350 3,900 Greece 500 Jon Arnason Johan Cappelen Sweden 1,250 (Iceland) (Norway) Denmark 930 Norway 750 3,820 Finland 630 Iceland 260 Otto Donner H. W. Lueck Germany 3,550 3,550 (Germany) (Germany) L. H. E. Bury B. B. Callaghan Australia 2,250 l 00 (Australia) (Australia) Union of South Africa 1,250 3,5 Louis Rasminsky J. H. Warren Canada 3,500 3,500 (Canada) (Canada) In addition to the Executive Directors shown in the foregoing list, the following also served as Alternate Executive Directors after November 1, 1954, the effective date of the Fifth Regular Election: Alternate Executive Directors End of Period of Service Jean C. Godeaux November 30, 1954 Andre van Campenhout January 9, 1955 *56- APPENDIX 0 Principal Officers of the Bank JUNE 30, 1955 Eugene R. Black.. . . . . . . . . President Robert L. Garner . . . . . . . Vice-President William A. B. Iliff . . . . Assistant to President Henry W. Riley . . . . . . . . . Treasurer M. M. Mendels . . . . . . . . . Secretary Davidson Sommers . . . . . . General Counsel S. R. Cope . . . . . Director of Operations-Europe, Africa and Australasia J. Burke Knapp . . . . . . . Director of Operations-Western Hemisphere Joseph Rucinski . . . . . . . Director of Operations-Asia and Middle East Simon Aldewereld . . . . . . . . . Director of Technical Operations Brian H. Colquhoun . . . . . . . . . . . . Engineering Adviser George L. Martin . . . . . . . . . . . . Director of Marketing Leonard B. Rist . . . . . . . . . . . . . Director, Economic Staff Richard H. Demuth . . . . . Director, Technical Assistance and Liaison Staff William F. Howell . . . . . . . . . . . Director of Administration Harold N. Graves, Jr.. . . . . . . . . . . . Director of Information .57. W O R L D I I