Evening star., 1943-10-09
World Bank
Continued From First Page.)
premit development of natural
resources.
nrogx NJ

resources.
Draft Not Official.
MI. White stressed that the draft
is not an official document, declaring
it merely represents the opinion OF
American experts and was laid be-
fore the congressional committee
TO let them know what we have
been thinking about"
MI. White emphasized, too, that it
had not yet been sent to or discussed
with representative of any other
country. He added that such dis
cussions would be held. as in the
case of the monetary stabilization
program, to get views of other ma
tions and stimulate them to submit
other proposals."
The world bank plan is separate
from the currency stabilization pro-
posal. Mr.. White said either could
junction separately, but there would
be close cooperation between the
two should both come into existence
Under the proposal each country
would contribute share to the
fund according to an appropriate
formula Mr.. White said, however
that the formula has not been de-
termined and that ne could not
estimate this country's share. except
that it would be substantial"
Some Senators, after hearing Mr..
Morgenthau Tuesday, said they
llNSprct oo6 tIojS oo,,ptr,, WOULD ,oc
tribute approximately 100000, 1000
and Great Britain s10OO,0OO 900
with other countries subscribing pro-
portionate amounts. Mr.. White
stressing that in planning the
projected bank there was no desire
to interfere with. private capital
recalled losses by private investors
after the last war and said it would
not be easy to coax them into the
foreign field again because of the
"nipping' many took.
IF private capital were adequate
this bank wouldn't do any business, u
he declared.
Could Guarantee Loans.
Under the guiding principles, u
the bank could guarantee loans
made with private capital to any
member government, and through
the government to any of its politi-
cal subdivisions and to business and
industrial enterprises. The bank
would make loans out of its own re-
sources "only when the borrower is
unable to secure the funds from pri-
vate investment sources on reason
able terms"
Shares of the banks capital would
be payable in both gold and local
currency. Member countries would
make an initial payment of 20 per
cent on their shares. and not more
than 20 per cent additional could be
called for in any one year.
Decisions of the bank would be
based exclusively on economic con-
siderations," the document states,
adding:
In passing upon any application
to guarantee, participate in. or make
loan, the bank shall give consid-
Grafton to the soundness of the in
vestment project or program, to the
budgetarv position of the member
government guaranteeing the loan
and to the prospective balance of
payments of the member country.
Loan Conditions Listed.
"All loans must fulfill the
following general conditions: (A)
Payment of interest and principal
must be fully guaranteed by the ma
tional government of the member
country; (B) the investment project
or program must have been investi-
gated and approved by competent
committee; (C) the terms of the
loan must be reasonable, and CD
on guaranteed loans the bank must
be compensated for the risk it as
sumes.
The bank will impose no condi-
ticns as to the member country in
which the proceeds of loan are to
be spent"
Mr.. White emphasized that the
banks purpose would be to provide
long-term capital only and that its
activities would NOT include either
relief or rehabilitation. except where
the rehabilitation would involve re-
construction.