,/ CU) ri _0 [ C) C)A

_ _ { -~ m C

oCD

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

WBG

INTERNATIONAL DEVELOPMENT ASSOCIATION

1818 ii STREET N.W. WASIIIN(TON 25, i).c.

September 19, 1961

My dear Mr. Chairman:

In accordance with Section 2 of the By-Laws of theInternational Development Association, I have been authorized bythe Executive Directors to submit to the Board of Governors thisAnnual Report of the Association covering the period from Sep-

nnembcr ')A 190,1 when the1 A;ticles of -gcln entc;cd, intoU~11tI hT, 17kU)V

7W-A L111-I i1LL1%i.. Ut .13~,rLA,1IL1-1L %_1L'.U11U IIILU

force, to June 30, 1961.

Sincerely yours,

AzzS . .4 I% I \

EUGENE R. BLACK

President

Chairman,Board of Governors,TInerna-ional Tevel-5Vi'Jen A--oi-.-Lo

a NCE.. 44 ,VWAS, INATIONS 0I,AVE BEEN PRACn,ICING. ECON04VLJC AID AND FINANCIAL

cooneration on a miiltilaiteral hasis ton n linnrrpecelpndpd exepnf The Intprnational

Development Association is the newest of the international organizations establishedas a vehicle for this cooperation. IDA came into existence in September 1960, and,at the close of its first fiscal year, has extended credits of just over $100 million fordevelopment projects in its member countries.

IDA aims, in the words of its Articles of Agreement, "to promote economic de-velopment, increase productivity and thus raise standards of living in the less developedareas of the world." It is an affiliate of the International Bank for Reconstruction andDv e-"p ...- 1' AL.LA I, 1Iank), bu iLtLIIa tLh LiIca LWsuc 1thtw iLLiLiV des ire en-

tirely separate. Like the Bank, IDA helps to finance development projects which havebeen carefully selected and prepared; but it provides capital on more liberal terms ofreDavment and is readv to heln finanee a wider ranae of nrniectc thnn the Rnnlc

The establishment of IDA came after many years of discussions of the desirabilityof accelerating economic growth in the less developed areas by adding internationalfunds, repayable on other than conventional terms, to the flow of development capital.After consultations which began among the member governments of the World Bankin 1958, th-e Bank's Board or Governors at its Annual Meeting in i959 approved aUnited States resolution calling on the Bank's Executive Directors to draft Articles of

Agreement for IDA. The Articles were submitted to governments in January 1960. TheArticles provided that only mem.ber governments of the Bank were eligible to join the

Association, and provided for initial subscriptions aggregating $1,000 million, if all themembers of the Bank became original members of the Association. The initial subscrip-tion of each original member was proportioned to that member's subscription to thecapital stock of the Bank. A sufficient number of members of the Bank accepted mem-bersnip to bring the Articles into force on September 24, 1960.

Under the Articles of Agreement, members of the Association are divided into twogroups: Part I countries, consisting of the countries which are more advanced eco-norrically; anA Part IT countries, c11JLi1i the L ess dcvl opVeUFU 1nations. e I t -Wo

groups make their payments on subscriptions in different ways. A Part I country makesan initial payment of 23% and pays the balance in four equal annual installments; allthese funds are convertible and usable yli the Asso.iation for development . redits.A Part II country makes its payments on the same installment basis; but of the total,

only 10%-half paid initially and the rest in four installments-is in convertible funds.

The remainder is paid in the member's own currency and may not be used by IDA

without the member's consent.Part I countries are to be contributors for iDA purposes, altnough tne Association

may extend credits for projects in their dependent and associated territories. All PartII countries are eligible to receive IDA credits; those assisted may receive a blend ofBank lonsn an-A TTnA credi,an til ol- --- 1 A - -r -AQ -L A- __ 4F- _- LA

t,aLza A.JatnJ ani'a ±L-.'L - -L U L h , Vll Llb I.. IUI1IILaMll a., ii4y ULJ

assisted by IDA ctedits only.IDA has begun its work at an opportune time. In the era of economic growth and

political change which has followed the war. the demand for develonment canital hasmarkedly expanded. In a growing number of developing countries, however, the need

for, and the ability to make effective use of, outside capital is increasing faster than theability to service conventional loans; some countries have already begun to draw closeto the limit of the debt they can prudently assume on conventional terms. The problemis comllpounded by the circu1sLanLces or many newly independent countries: tney are

not able to rely to the same extent as before on the financial support of the metro-

politan powers, including guarantees on loans floated abroad; but they have not yetdeveloped a credit standing of thleir ow sucient to enable 4-hm t- borrow 1 on

scale they require.

IDA has no policy of allocating its funds in advance. An effort is being made,

however, to assure wide geographic distribution of development creditsf tacing into

4~~~~~~~~~~~~~~~~~~~~~~~

account the priority which should be given to the poorer countries. At the same time,

it probablv will be necessary to observe a limit on credits for some countries wllich

could quickly present enough suitable projccts to absorb a disproportionate amount of

ID A runds.

In administering its funds, IDA will have the same regard as the Bank to the

obsenrance by recipient countries of sound financial and economic policies and to thecareful selection and preparation of projects or programs .ich nma be financed. Where

imports of goods or services are being paid for by IDA funds, the Association will

normally require that procurement be based on full international competition.

IDA now has a lengthening list of Drop)osals under investigation all over the world.

They include projects for the development of electric power, transportation, agriculture

and other activities of a kind traditionally finaniced by the Bank. They also include

projects of a kind not hithcrto financed by the Bank: for instance, for municipal water

supply and teclhnical training.

111 I oLdL1UI1 tu I1 X sple l' UperatioUn aU tile IIC eeu ror tile type of' duevlop-

ment capital that IDA can provide, its resources are small. At the end of the fiscal

year, 51 member governments of the Bank had accepted membership of IDA (15 asPahrf I menmiers and 36 as Part I nmemmbcrs) Subscrirptinnc amoiined to the equivalent

of almost $906 million, including $756 million which IDA may convert as needed for

its operations. IDA received payments of $208 million on these subscriptions, including

$178 million in convertible form. Further payments on initial subscriptions are to be

made annually over four years.

The 'Articies of Agreement require iDA to keep the adequacy of its resources

under regular review. The first review is to take place within the first five years of

operation, with reviews at five-year intervals thereafter. The Articles of Agreement alsoprovide, hlowever, that gencral --orindivi,hual rinrcrases in the- -ubscription of r-lllcbr

governments may be authorized at any time.

Although IDA is a separate legal entity with its own financial resources, it is closelyaffiliated with the Bank. The sanme Executive Directors represent rconntriPe tflat are

members of both the Bank and IDA. The President of the Bank is ex officio President

of IDA, and the officers and staff of the Bank serve as the officers and staff for IDA.

This joint administration not only makes for operating economies, but also assures the

effective coordination of the policies and procedures of the two institutions.

IIJA, like the Bank, nas entered into an agreement with the United Nations. Thne

agreement establishes on a formal basis, and includes IDA within, a liaison committee

which has been operating on an informal basis for a number of years. The committeeConsistsf of the Secretary General of the U. N., the Managing Director of the U. N.

Special Fund, the Executive Director of the U. N. Technical Assistance Board, andthe President of the Bank and IDA, or their designated representatives.

OPERATIONS

IDA operations began on November 8, 1960, when the Executive Directors of the Asso-cciion01 U hldII tllirL fiirs[ecting.

In its first eight months of operations, ending June 30, 1961, IDA extended develop-ment credits totaling $101 million in four countries. The credits are on identical terms:each is for 50 years, uvithout interest, Repayment is due in foreign exchange; amortiza-

tion is to begin after a ten-year period of grace; thereafter, 1% of the principal is repay-able annually for ten years and 3% is repavable annually for the final 30 years. A servicecharge of 3/4 of 1% per annum, payable on the amounts withdrawn and outstanding, willbe made to meet IDA's administrative costs. These terms do not necessarily set a de-tailed pattern for future iDA credits, but they indicate that iDA's assistance is to be

given on a basis strikingly different from the basis on which assistance has hithertobeen available from international sources.

.IUU1i L1ldI Udet1101i VIDAk cdits1L up to JuInI 20J are giVenl UbUeW.

HONDURAS

$9 million credit for highwvays signed May 12, 1961

This development credit, the first to be extended by IDA, will make $9 million

available to Honduras to assist in carrying out a program of highway development and* .- T1 _ _t 1 _'-_ _ r -_ 1 I 1 1 - ' 1 . _ - r .1 - TTTmaintenance. T ne- program lbeing nnanced includes a o6-mlne extension or mne vvesrern

Highway of Honduras, from its present terminus at Santa Rosa de Copan to the borderof El Salvador; the construction of feeder roads in Western Honduras; the continuation

for two years of a highway maintenance program.; and a high way planningsuvyThe highway extension will traverse a region which, although one of the most

populous in Honduras, has remained until now inaccessible bv road and limited mainly

to subsistence agriculture. The new road should stimulate production on existing farms

61

and open new land to settlement; it will also provide the first direct link between PuertoCortes on the Caribbean in the north with El Salvador and Guatemala in the south. andshould thus greatly reduce transport costs between the rapidly developing northwesternregion of Honduras and the other tivo countries, contributing to the economic inte-gration of all three.

SUDAN

$13 million credit for agriculture signed Iune 14, 1961The Roseires Dam project on the Blue Nile provided the occasion for the first

joinf TDA-\World Bank operation, the IDA credit being extended in conjunction -ith aBank loan of $19.5 million. The German Government also took an important share inthis operation by providing, through Kreditanstalt fur Wiederaufbau, a long-term loanequivalent to $18.4 million. A total of $50.9 million is thus being made available to theSudan to finance this important extension of irrigation, on which depends the futuredevelopment of the country.

The water to be stored by the dam, which will cross the Blue Nile at a point about66 miles downstream from the Ethiopian border, will more than double supplies available

Irrigat ion aL lJ tur..±- v 'o- I ~ I A01 I,n 0 ,1,4± IL Willl lh'... a IL JSJVaaIUIL, L'J L'fl.lflfor .iato duing periods of seasor.al shrae _It wilmaeit osbet rn

nearly 900,000 acres under irrigation for the first time, and also greatly to incease yieldsand diversify crop production in other areas where water supplies are at present inade-quate. The dam will be about ten miles long, with a concrete central section 196 feethigh and more than two-thirds of a mile long. Bccause of work interruptions in floodseasons, construction is expected to take several years.

CHILE

$19 172illionl credit for highways signied jun2e 28, 1901This development credit, extended jointly with a World Bank loan of $6 million

for road maintenance equipment, will cover the foreign exchange cost of construction,re 1a 1-1:0&_ -- A A_ Ans o 4 4 1 A;_ mA g AAAAJA.- - _A A2 AA1 --- A,Ao ._ &-

I1ll UllILdLIUll dLlU .,VulIlulluALIVI U Ll Ill%ll aU1UdIy I dJ 111U3 III %.4lLi%, LIl OUULIIGLII

provinces, the country's most important agricultural region.Existing dirt roads in Southern Chile become impassable during the five-month

rainy season each year; and the damape caused there bV the eartholuakes of Mva 1960

has only partially been repaired. With the help of the credit, about 600 miles of roads

will be newly built or relocated, and 1,600 miles of existing roads will be improved,providing an integrated all-weather road system connecting the main producing areas

with consumption and processing centers. The benefits of good road transport in theSouthern zone sllould be felt by the whole Chilean economMLy. The ten provinces alreadyproduce about 53% of the country's total agricultural output; with better communi-cations they could further reduce Chile's dependence on imported produce, agriculturaland livestionlc nrnroidctf

I N D I A$60 million credit for highvays signed lune 21.,1961

The credit will cover half the cost of improvements to the National Highways ofindia during the first 31/2 years of the Third Five-Year Plan which began April 1, 1961.The funds will be used mainly for the construction of about 660 miles of highways,including 19 major bridges, which will open up some of the less developed parts ofIni,X mrv co1necion betweenV. FLVCimportantdlL agric-ulLural adil inustrial centers, ailurelieve traffic congestion in the vicinities of the tvo principal cities and ports, Calcuttaand Bombay.

Demand for rail and road transport rose very rapidly vwith tfle growth of agircultural

and industrial production during the Second Five-Year Plan, and this trend is expectedto continue during the Third Five-Year Plan. While the railways must expand to meetthe growing demand for long distance and bulk movements of freight, there is alsopressing need for an improved road network to enable motor vehicle transport to make.1 1 _I . 1 1_ , 1 _ rw TTh A 1'. '11 1 1 .tne snorter nauls and to move highi-value goods. T ne 1iuA crecuir wiii neip to nnanceworks to eliminate some of the major deficiencies in the 15,000-mile National Highwayssystem which links the main centers of population. All the works are located in theregion of the Cangetic Plains in n=rtlern India, and in coastal areas around Calcutta

and Bombay where population density is highest, and where 40% of India's vehiclesare registered.

Financial Statatemnts

Sta,tement onfCondition -,,,- -- - - AStatement of Income and Expenses . . . BStfaemepnt rof Hoings nof Cu1rrPncies nand Notes C

Statement of Subscriptions and Voting Powver ... DSummnarvStatenment of Develon ..ent Credits...........E

Notcs to Financial Statements . . ........................ F

Opinion of Independent Auditor .G

Oiher AppendiUIs

A lttLnA s aIIJtdIVt. JJUU5

L.L

Adii-rtv I B u dg e t .. .. . . .. . . . .. . . . . .. . ... .. ... .. .... -... .

Governors and Alternates ......... ................... I

ExecuLIve DLLULI rctoIrLLJ andAl3aL a-UY VotiL- ± LJ ....... )

Principal Officers ......... ............. .. K

APPENDIX A

Statement of ConditionJune 30, 1961

Expred in- United States Currency-Yee -c- VE -F-TaZUJ S.flcflWn-J, Ippena:x F

ASSETSDUE FROM BANKS AND OTHER DEPOSITORIES (See Appendix C)

Member currenciesUnrestricted ...................................... $ 12,774,534Subject to restrictions-Note B ..................... 5,965,200 $ 18,739,734

INVESTMENTS

Governmnent obligations (tm cost or amortized cost),United States (face amount $38,400,000) ........... $ 37,993,220

Time deDosits maturing within six months-United States dollars .............................. 20,000,000

Accrued interest ..................................... 146,321 58,139,541

RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS (Seea ppendix C)

Non-negotiable, non-interest-bearing, demand notesUnrestricted ...................................... $108.159.600Subject to restrictions-Note B ..................... 24,132,588 132,292,188

EFFECTIVE DEVELOPMENT CREDITS HELD BYASSOCIATION-UNDISBURSED (SeeAApendix E) ........................ .. - 90000

TOTAL ASSETS .$218,171,463

LIABILITIES, SUBSCRIPTIONS AND ACCUMULATED NET INCOMELIABILITIES

Accounts payable and other liabilities .$ 108,013Undisbursed balance of effective development credits (See Appendix E) . . 9,000,000

SUBSCRIPTIONS (See Appendix D)-Note CAmounts subscribed ........................... $905,560,000

Less portion for which payment isnot yet due-Note D

Unrestricted ...................... $577,617,200Subject to restrictions-Note B ...... 119,664,000 697,281,200 208,278,800

Prepayments and payment on account of pending subscription 429,925

ACCUMULATED NET INCOME

The period from September 24, 1960 to June 30, 1961 .354,725

TOTAL LIABILITIES, SUBSCRIPTIONS

AND ACCUMULATED NET INCOME . $218,171,463

10

APPENI)IX B

Statement of Income and ExpensesFor the Period from September 24, 1960 to June 30, 1961

Expressed in United States Currency - See Notes to Finanicial Staeemenes, 1ppendix F

INCOME

Tncom,efro,n v es ............ ens................... (ZO.... $892,75C

Other income .20,908

(2 11 1o01,GROSS I N C O M E .................. 9-13,383

EXPENSES

Administrative expenses:

Personal services. $2S9,89

Contributions to staff benefits .36,801

Fees and compensation .119,128

Representation .407

Travel .79,859

Supplies and materials .5,420

Office occupancy .24,659

Communication services .14,772

Furniture and equipment .7,967

Priting .5,975

Insurance .3,703

Handling and storage of gold .72

GROSS EXPENSES .$558,658

NET INCOME $354,725

-~ ~ ~ ~~~1

APPENDIX C

btatement of Holdings of Currencies and Notesjune 30, 1961

Exrc6e in United S;Latest.1CZL Curecy-C IV'oAe; to rmFiJcj,a OS;aJCTcetJs ippena?;x F'

Non-negotiable,ch,,*t r on-,trs:ba,,

Member currency Currcncy demand notes Total

Afghanistan ...... Afghani ................... $ 363,600 Y - S 363,600Australia ..... F. , Pound .................... - 3,632,400 3,632,400Austria ... Schilling ................... - 907,200 907.200Bolivia ... Boliviano .................. - 190,800 190,800Canada ... Dollar .................... - 6,809,400 6,809,400Ceylon .. . Rupee .................... = 545,4vO 54nflChile ... Escudo ................... 635,400 - 635,400China . New Taiwan dollar .......... 5, - 446,800 5,446,800Colombia ..... Peso .635,400 - 635,400Costa Rica ..... Colon .36,000 - 36,000Dennm.ark ..... . Krone .................... -7 1573200i1Ethiopia ... Dollar ... , - 90,000 90,000Finland .. ... Markka .689,400 - 689,400France ..... New franc. 9532,800 - 9,532,800Ghana ..... Pound - 424,788 424,788Guatemala ..... Quetzal .72,000 - 72,000Haiti ..... Gourde .136,800 - 136,800Honduras .......... Lempira .54,000 - 54,000iceland ............. .Kroao .................... - 18oftyIndia .. Rupee ..................... 18,000 7,245,000 7,263,000Iran .. Rial ..................... - 817,200 817,200Iraq .. Dinar ..................... - 136,800 136,800Ireland ... Pouind ..................... - 545,400 545,400Israel. ------- Po.,nd . .. . - 302.400 3 A,l400Japan .... Yen - 6,046,200 6,046,200Jordan ., .. ..... ,.... Dinar ..................... 54,000 54,000Korea .r.,..,,. ., Hwan . ............. 226,800 - 226,800Malaya . Dollar ..................... - 453,600 453,600Mexico .................... Peso . . 1,573,200 - 1,573,200Morocco .... Dirham . ............ 635,400 - 635,400Netherlands ........ ,,.Guilder ... 4,....... 4,993,200 4,993,200Nicaragua ..... Cordoba . .54,000 - 54,000Norway .... Krone .................... - 1,209,600 1,209,600Pakistan ......... Rupee 1.................... 1,816,200 1,816,200Paraguay ....... Guarani . ................... 54,00 - 54,000Philippines ....... Peso -..................... 907,200 907,200Saudi Arabia ....... Riyal ..................... 666,000 00South Africa ....... Rand . ................... 1,816,200 - 1,816,200Spain ....... Peseta 1.................... 1,816,200 1,816,200Sudar ............... Pound ;8,80.................... - 8i8000 Sudan.Puu,,d .. 181,800 -~~~~~~~J.181,800Sweden ....... Krona 1.................... 1,816,200 1,816,200Thailand ... .... Baht -.................... . 545,400 545,400Tunisia ... Dinar . ............. 271,800 - 271,800Turkey ... Lira .................... - 1,044,000 1,044,000Uni'ted Arab Repubfic ......... Pound ........... - ,0-,4- 15,4United Kingdom ............ Pound . ............ 85,200 23,520,000 23,605,200United States ............ Dollar . ......... ... 650,934 57,652,200 58,303,134Viet-Nam ............. ,.Piastre . ............ 271,800 - 271,800Yugoslavia ............ Dinar ...................... 727,200 - 727,200

TOTAL .. $ 18,739,734 $132,292,188 $151,031,922 (1)

(;) Of this amount the equivalent of $120,934,134 is unrestricted and the equivalent of $i0,380,988 is subject to mainte-nance of value (see Note E).

12 1

APPENDIX D

Statement of Subscriptions and Voting PowerJune 30, 96

S U B S C R I P T I O N S VOTING POWER

MEMBER Amounts AmountsTotal Percent paid in not yet due Number Percent

(Note C) of total (Nose E) (Notes B and D) of votes of total

INITIAL SUBSCRIPTIONS

PART I MEMBERS

Australia ............... 520,180,000 2.23 S 4,641,400 $ 15,538,600 4,536 2.19Austria ................ 5,040,000 .56 1,159,200 3,880,800 1,508 .73Canada ............... 37,830,000 4.18 8,700,900 29,129,100 8,066 3.90Denmark .............. 8,740,000 .97 2,010,200 6,729,800 2,248 1.09Finland ................ 3,830,000 .42 880,900 2,949,100 1,266 .61France ................ 52,960,000 5.85 12,180,800 40,779,200 11,092 5.37Germany .............. 52,960,000 5.85 12,180,800 40,779,200 11,092 5.37Italy .... 18,160,000 2.01 4,176,800 13,983,200 4,132 2.00Japan ................. 33,590,000 3.71 7,725,700 25,864,300 7,218 3.49Netherlands ............ 27,740,000 3.06 6,380,200 21,359,800 6,048 2.93Norway ................ 6,720,000 .74 1,545,600 5,174,400 1,844 .89South Africa ... ....... 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22Sweden ................ 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22United Kingdom ........ 131,140,000 14.48 30,162,200 100,977,800 26,728 12.94United States ........... 320,290,000 35.37 73,666,700 246,623,300 64,558 31.25

SUB-TOTAL ....... $ 739,360,000 81.65 $170,052,800 $569,307,200 155,372 75.20

PART II MEMBERS

Afghanistan .......... 1,010,000 .11 $ 232,300 $ 777,700 702 .34Bohivia . - -................ : 1060000 .12 2431R00 816;200 712 a4Ceylon . . ....... 3,030,000 .33 696,900 2,333,100 1,106 .54Chile ................. 3,530,000 .39 811,900 2,718,100 1,206 .58China . ..... .130,260000 3O 9 8 3- 6959,800 02 3.17Colombia ... 3,530,000 .39 811,900 2,718,100 1,206 .58Costa Rica ............ 200,000 .02 46,000 154,000 540 .26Ethiopia ....... ...... ... .. 500, 1.06!!500 385(,0 0 0 600n .29

Ghana ................ 2,360,000 .26 542,800 1,817,200 972 .47Guatemala ...... 400,000 .05 92,000 308,000 580 .28

-- l ...............--- 760,000 .08 174,800 585,200 652 .32Honduras . . ..... 300,000 .03 69,000 231,000 560 .27Iceland ............... 100,000 .01 23,000 77,000 520 .25India ................... 40,350,000 4nd.4 6 9,20,00 31,069500 8,570 4.]5

Iran ................... 4,540,000 .50 1,044,200 3,495,800 1,408 .68Iraq ................... 760,000 .08 174,800 585,200 652 .32Ireland ................ 3,030,000 .33 696,900 2,333,!00 1,106 .54Israel . ............... 1,680,000 .19 386,400 1,293,600 836 .40Jordan ................. 300,000 .03 69,000 231,000 560 .27Korea ................... !,260 000 J4 289,800 970 200 752 .36Malaya ................ 2,520,000 .28 579,600 1,940,400 1,004 .49Mexico ................ 8,740,000 .97 2,010,200 6,729,800 2,248 1.09Morocco ............... 3,530,000 .39 811,900 2,718,100 1,206 .58Nicaragua .............. 300,000 .03 69,000 231,000 560 .27Pakistan ............... 10,090,000 1.11 2,320,700 7,769,300 2,518 1.22Parag-uay .............. 300,000 .03 69,000 231,000 560 .27Philippines ........ 5.... ,040,000 .56 1,159,200 3,880,800 1,508 .73Saudi Arabia ........... 3,700,000 .41 851,000 2,849,000 1,240 .60Spa' nI . .......................... . .10,090,VVV J 2,320V,700 V { 7,76930 2,518.

Sudan ................. 1,010,000 .11 232,300 777,700 702 .34Thailand ............... 3,030,000 .33 696,900 2,333,100 1,106 .54

unsia ................U. :. , 50,0 .7 3 300 1,1: 62,70 8 2 .3Turkey ................ 5,800,000 .64 1,334,000 4,466,000 1,660 .80United Arab Republic .. 6,030,000 .67 1,386,900 4,643,100 1,706 .83Vict-Nam ............ 1,,;0,000 .;17 347,300 1,;62,700 802 .39Yugoslavia ............. 4,040,000 .45 929,200 3,110,800 1,308 .63

SUB-TOTAL ....... S166,200,000 18.35 S38.226,000 $127,974,000 51,240 24.80

TOTAL ......... $905,560,000 100% $208,278,800 $697,281,200 206,612 100%

1 3

APPENDIX E

Summary Statement of Development CreditsJune 30, 1961

E.xpressed iri United Stadtes Currelncy - 0CSVQc N7 LU ZFlU,tJUil 57aCrci77ct7 a dppcnadix F

Effective development creditsv held

DevelopmentMember in whose territories development Disbursed Undisbursed credits not yet

credits have been made (1) portion portion Total effective (2)

Chile ........................... - $ - - $19,000,000

.H.nd.Iuras ................. . - 9,000,000 9,000,000.

India ........................... - - - 60,000,000

Sudan . . ......................... - - - 13,000,000

TOTALS .. . S - $9,000,000 $9,000,000 $92,000,000

(1) All development credits have been made to member governments.

(2) Agreements providing for these development credits have beensigned, but the development credits do not become effective anddisu,remePnts thepreiundpr dro not start unti! thip 1bnrrowPr tk-Pes

certain action and furnishes certain documents to the Association.

14

APPENDIX F

Notes to Financial StatementsJune 30, 1961

NOTE A

Amounts in currencies other than United States dollars have been translated into

(i) In the cases of 40 members, at the par values as specified in the "Scheduleof Par Values", published by the international Monetary Fund.

(ii) In the cases of the remaining 11 members (Afghanistan, Bolivia, Canada,Chile, China, Korea, Malaya, Paraguay, Thailand, Tunisia and Viet-Nam),at the rates used by such members in making payments of subscriptions tothe Association.

NOTE B

Pursuant to Article IV, Section 1 (a) these amounts may be used by the Association forad.mnistrative expenses incurred by the Association n the territories of any Part IImember whose currency is involved and, insofar as consistent with sound monetarynnlir;ec in nnurnment- fnr annnrc ,ntA cepri&rec nrnrrl,,ref ;in fh- F-rrt-o-;- -f o-rb maember

and required for projects financed by the Association and located in such territories;and in addition vhen and to the extent justified by the econo.nic and financial situationof the member concerned as determined by agreement between the member and theAssociation, such currency shall be freely convertible or otherwise usable for projectsfinanced by the Association and located outside the territories of the member.

NOTE C

Subscriptions are expressed ;n terms of United States dollars of the weight and finenessin effect on January 1, 1960.

NOTE D

Payment of this portion of the subscriptions of members is due on November 8 in eachof the years 1961 through 1964 as follows: One and one quarter percent of the subscriptionof each member is payable annually in gold or freely convertible currency; eighteenpercent of the subscription of each member is payable annually (a) in gold or freelyconvertible currency by Part I members and (b) in the currency of the subscribing memberby Part II members.

NOTE E

Under Article IV, Section 2 each member is required, if the par value of its currency isreduced or the foreign exchange value of its currency hasr in the oni;non of the Associ-in-depreciated to a significant extent within that member's territories, to maintain the valueof the Association's holdings of its ninety percent currency, including the principalamount of any notes substituted therefor, and the Association is required if the par valueof the m.ember's currency iss inc-eased, or the foreign exchange value of the member'scurrency has in the opinion of the Association appreciated to a significant extent withinthat member's territori-es t reto urn to the member the i;ncrease in the v-ilue of such ninetypercent currency held by the Association; provided, however, that the foregoing shall

apply~onlys long,y-c ..as and i- he extienti i-h-t, sc-~-h cu..ecy1-h1-flnn h--ie heck- -;,i,

disbursed or exchanged for the currency of another member.

15

APPENDIX G

Opinion of Independent Auditor

1710 II Street, N.W.Washington 6, D. C.

August 9, 1961

To

INTERNATIONAL DEVELOPMENT ASSOCIATION

WASHINGTON, D.C.

In our opinion, the accompanying financial statements present fairly, in terms of UnitedStates currency, the financial position of the International Development Association atJune 30, 1961, and the results of its operations from September 24, 1960 (the date whenthe Articles of Agreement establishing the Association entered into force) to June 30, 1961,in conformity with generallv accepted accounting principles. Our cxamination of thesestatements was made in accordance with generally accepted auditing standards, and accord-ingly included review of the allocation of expenses incurred jointly with the InternationalBank for Reconstruction and Development, tests of the accounting records and such otherauditing procedures as we considered necessary.

PRICE WATERHOUSE & CO.

Financial StatementsCovered by the Foregoing Opinion

APPENDIX

Statement of Condition ...................................... AStatement of Income and Expenses . ................................. BStatement of Holdings of Currencies and Notes .. CStatement of Subscriptions and Voting Power .. DSummary Statement of Development Creditsr.. ENotes to Financial Statements .. F

16

APPENI)x H

For the Fiscal Year Endine June 30. 1962

There is outlined below the Administrative Budget for the fiscal year ending June 30, 1962, asprepared by the President and approved by the Executive Directors in accordance with Section 8of the By-Laws. The administrative expenses incurred during the partial year ended June 30, 1961,are shown below for information.

dIctual Expenses Budget

1961 1962

STA FF

Personal Services ................ $259,895 $647,500StaffBenefits ..................... ,1,000

Travel .......................... 79,859 300,000Consultants ..................... 118,612 250,000

Representation .................. 407 $495,574 2,500 $1,291,000

OTHER ADMINISTRATIVE EXPENSES

Fees & Compensation ............ 516 7,000

Supplies & Materials ............. 5,420 15,000Office Occupancy ................ 24,659 66,000Cnmm.inrtin,, ,, 14 779 33000

Furniture & Equipment .......... 7,967 11,000Printing ........................ 5,975 0,000Insurance ....................... 3,703 6,500

Other .......................... 72 63,084 500 159,000

CONTINGENCY - 50,000

GRAND TOTAL ........ A-,-__1__c

117

APPENDIX I

Governors and AlternatesJune 30, 1961

Member Government Governor Alternate

Afghanistan . ............ Abdullah Malikyar Abdul Hai AzizAustralia . ............. Harold Holt Sir Roland WiisonAustria . ............. Josef Klaus Hubert SchmidBolivia . ............. Humberto Fossati Rocha Adolfo LinaresCanada . ............. Donald M. Fleming A. F. W. PlumptreCeylon . ............. Felix R. Dias Bandaranaike H. S. AmerasingheChile . . .AAL Eduardo Figueroa Alvaro Orrego BarrusChina . ............. Chia-Kan Yen Tse-kai ChangColombia . ............. Hernando Agudelo Villa Jorge Cortes-BoshellCosta Rica . ............. Alvaro Castro Alvaro Vargas

Denmark .............. Otto Muller Poul Biorn OlsenEthiopia .............. Yawand-Wossen Mangasha Taffara DeguefeFinland .............. R. v. Fieandt Reino RossiFrance ...................... Minister of Finance Pierre P Schw-e

Germany .............. Ludwig Erhard Franz EtzelGhana .............. F. K. D. Goka Hubert C. KesselsGuatemala ... ........... Manuel A. Bendfeldt Jauregui Max Jimenez PintoHaiti .............. Herve Boyer Antonio AndreHonduras . ... . ..... Celeo Davila Thian Milln BprmnldezIceland .............. Petur Benediktsson Thor Thors

Inuia . .tz orarji Ri. iDesai L. K. jha`Iran . ............. Abdol Hossein Behnia Djalaleddin AghiliIraq . ............. Mudhaffar H. Jamil Abdul Hassan ZalzalahIreland . ............. Seamas 0 Riain T. K. WhitakerIsrael . ............. David Horowitz Jacob ArnonItaly .............. Donato M-he Giorg Japan . ............. Mikio Mizuta Masamichi YamagiwaJordan . ............. Hashem Jayousi Hazem NuseibehKorea . ............. . Chang Soon Yoo Han Been LeeLibya2 . . ............ Ahmed Lahsairi A. A. Attiga

Malaya . ............. Tan Siew Sin Dato' Ismail bin Dato' Abdul RahmanMexico . ............. Antonio Ortiz Mena Jose Hernandez DelgadoMorocco .............. M'Hamed Douiri Mohared Amine BengelounNetherlands . ............ J. Zijlstra S. PosthumaNicaragua . ............. Guillermo Sevilla-Sacasa J. J. Lugo MarencoNorway . ............. Arne Skaug Thomas LovoldPakistan . ............. Mohamed Shoaib M. A. MozaffarParaguay . ............. Cesar Romeo Acosta Federico MandelburgerPhilippines . ............. Andres V. Castillo' Eduardo Z. RomualdezSaudi Arabia . ............ Ahmed Zaki Saad

South Africa . ............ T. E. Donges M. H. de KockSpain . ............. Mariano Navarro Rubio Juan Antonio Ortiz GraciaSudan ...... ........ Abdel Magid Ahmed Hamzah Mirghani HamzahSweden ...... ........ G. E. Straeng N. G. LangeThailand -....... .-.- . Sunthorn Hnnglndnrnm Rennmn Wnna wnnTunisia . ............. Ahmed Ben SalahTurkey ...... ........ Kemal Kurdas Ziya KaylaUnited Arab Republic .. Aodue Moneim El Kaissouni izzat TrabouisiUnited Kingdom . .......... John Selwyn Brooke Lloyd Sir Denis RickettUnited States .............. Douglas Dillon George W. BallViet-Nam . ............. Tran Huu Phuong Vu Quoc ThucYugoslavia . ............. Nikola Mincev Vladimir Ceric

I As of August 1, 1961 2 Joined on August 1, 1961 3 As of July 5, 1961

18 1

APPENDIX J

Fvoctu'tieo nir.i,ito.rc and Altornatoe and 1Vtitinn P,,ino

June 30, 1961

Director Alternate Casting votes of Total votes

APPOINTED

John M. Leddy Eric Cocke, Jr. Uinted States 64,558

David B. Pitblado Geoffrey M. Wilson United Kingdom 26,728

Rene Larre Jacques Waitzenegger France 11,092

Otto Donner H. Gorn Germany 11,092

B. K. Nehru C. S. Krishna Moorthi India 8,570

ELECTED

Gengo Suzuki Prayad Buranasiri Japan, Ceylon, Thailand 9,430(Japan) (Thailand)

Mohamed Shoaib Ali Akbar Khosropur Pakistan, United Arab Republic, Iran, Saudi 9,386(Pakistan) (Iran) Arabia, Sudan, Iraq, Ethiopia, Jordan

Louis Rasminsky L. Denis Hudon Canada, Ireland 9,172(Canada) (Canada)

Ake Lundgren Jaakko Lassila Sweden, Denmark, Norway, Finland, Iceland 8,396(Sweden) (Finland)

Pieter Lieftinck Augustin Papic Netherlands. Yugoslavia. Israel 8.192(Netherlands) (Yugoslavia)

John MVI. Garland A. J. J. van Vuuren Austraiia, South Africa, Viet-Nam 7,856(Australia) (South Africa)

Jose Aragones Sergio Siglienti Italy, Spain 6,650(Spain) (Italy)

Reignson C. Chen China 6,552

Omar S. Elmandjra S. El Goulli Morocco, Malaya, Ghana, Tunisia, Afghanistan 4,686*(Morocco) (Tunisia)

Luis Machado Lempira E. Bonilla Mexico, Guatemala, Honduras, Nicaragua, Costa 4,488(Cuba) (Honduras) Rica

Andre van Campenhout Ernst A. Rott Turkey, Austria, Korea 3,920(Belgium) (Austria)

Jorge Mejia-Palacio Jose Camacho Philippines, Colombia, Haiti 3,366(Colombia) (Colombia)

Tuan Haus Solis Carlos S. Brignone Chile, Rolivia, Paraguay 2,478(Bolivia) (Argentina)

* Libya, with 702 votes, should be added as of August 1, 1961

19

APPENDIXK

Principal Officers of IDA

EUGENE R. BLACK ................................ President

SiR VWILLiAMyt LIAFF .............. Vi-. P-eid

J. BURKE KNAPP ............ Vice President

LEONARD B. 'IST ROBERT 1.V. CAVANAUGH.I

Special Representative for Africa Treasurer

RICIIARD H. DENIUTiH MI. tI. A.4£-D-

Director, Technical Assistance and Planning Staff Secretary

S. R. COPE A. BROCHES

Director of Operations-Europe, Africa and Australasia General Counsel

JOSEPH RucINSKI WlLLIAM F.1O.;ELLDirector of Operations-South Asia and Middle East Director of Administration

ORVIS A. SCHMIDT HAROLD TN. TRAVES, J.

Director of Operations-WVesterrt Hemisphere Director of Information

I. P. M. CARGILL jOH.S D. MILLER

Director of Operations-Far East Special Representative for Europe

SIMON ALDEWERELD JOHN C. DE W\ ILDE

Director of Technical Operations Acting Director, Economic Staff

20