In the current half year, loan and equity commitments by the IFC increased by approximately $10 million to a gross total of $137 million, including initial investments in the Ivory Coast and Uganda. Through June 30, 1965, net commitments of $125.8 million were authorized chiefly in support of enterprises in basic industries, including iron and steel, pulp and paper, construction materials and textiles. In addition to its role in the field of assistance to development finance companies, the IFC has recently assumed responsibility for the appraisal, preparation and supervision of industrial and mining projects to be financed by the World Bank Group of institutions.

MEMBERSHIP, SUBSCRIPTIONS AND ADDITIONAL RESOURCES

There was no change in the membership of the IFC in the period

48 See note, pp. 207-208.

49 H. Doc. 449, 89th Cong., pp. 18-21. 50 In July, 1965, Malawi became a member of the Corporation with a subscription of $83,000. In Sept. 1965, Zambia became a member with a subscription of $295,000. [Footnote in source text.]

As indicated in the preceding semiannual report of the Council, the Boards of Governors of the International Bank and the International Finance Corporation, in September 1964, approved a proposal to permit the Bank to lend to the Corporation within a limitation on total borrowings and guarantees by the Corporation of four times its unimpaired subscribed capital and surplus. The proposal, which requires amendment of the Articles of Agreement of both institutions, would result in an increase of approximately $400 million in the funds available to the Corporation for relending to private enterprises, without Government guarantee. As of the end of the period under review, member governments of the Bank and the Corporation were completing the steps necessary to make the proposal effective. The Council, in a special report to the Congress, recommended the enactment of legislation which would permit the U.S. Governor to vote in favor of amending the Articles of Agreement of the Bank and of the IFC."

IFC INVESTMENT, STANDBY AND
UNDERWRITING COMMITMENTS

In the January-June period, the IFC authorized new commitments in the amount of approximately $9.7 million in four member countriesFinland, the Ivory Coast, Pakistan, and Uganda-in addition to an increase of $100,000 in an earlier investment of $1.2 million in a Chilean cement plant. The cost of the proj

51 Text in American Foreign Policy: Current Documents, 1964, pp. 217-224. 52 See ante, doc. II-84.

63 Member governments approved amendments to the Articles of Agreement of the IFC (see footnote 54 below) and the IBRD in 1965 (see ante, doc. II-85).

64 Report on Proposed Increase in International Bank for Reconstruction and Development Assistance to Private Enterprise through the International Finance Corporation and Associated Matters (H. Doc. 198, 89th Cong., June 3, 1965). The necessary legislation was enacted, Aug. 14, 1965 (Public Law 89-126; 79 Stat. 519) and the proposal became fully effective in Dec 1965. [Footnote in source text.]

ects involved is estimated in excess of $30 million.

In a joint venture with the Industrialization Fund of Finland, and in conjunction with a group of United States and foreign investment institutions, the IFC agreed to assist in financing a $1.9 million expansion program being undertaken by a pharmaceuticals producer in Finland. The IFC portion will consist of a long-term loan of $700,000 and an equity investment equivalent to $100,000 in the shares of the company.

The Corporation made its first investments during the current period in two member countries-the Ivory Coast and Uganda. An investment of $204,000 will assist the Ivory Coast Development Bank in expanding its relending operations to private industry; and a $3.1 million investment in Uganda will assist in financing the establishment of a fully integrated textile mill in that country. Three foreign investment institutions participated in the Uganda investment in the total equivalent of $1.3 million.

In Pakistan, the Corporation authorized two investments totaling $5.1 million to assist in financing a new jute products mill ($1,950,000) and to expand the production of paperboard containers ($3,150,000). Additional funds will be provided from private sources and from the Pakistan Industrial Credit and Investment Corporation (PICIC).

During fiscal 1965, the IFC authorized gross commitments of $26 million, including an underwriting commitment of $6.1 million, thereby increasing total gross commitments of the Corporation to $137 million, after allowing for exchange adjustments in earlier commitments. As shown in table 11, total commitments, net of cancellations and terminations, through June 30, 1965, amounted to $125.8 million, covering 103 commitments in 32 member countries. Twelve countries in the Western Hemisphere received over one-half of the total, or $68 million. The cumulative total for disbursements was $92.7 million. As of

June 30, 1965, uncommitted funds amounted to $48.2 million, as compared to $51.9 million a year earlier.

PRIVATE PARTICIPATION

In order to revolve its commitments, the IFC has continued to encourage private participation in, and sales of, its investments. Through June 30, 1965, participations by other investors in securities covered by standby and underwriting commitments ($13.4 million), sales from its portfolio ($29.5 million), and principal repayments ($9 million) amounted to approximately $52 million, or over 40 percent of net commitments.

IFC ASSISTANCE TO DEVELOPMENT FINANCE COMPANIES

In addition to its direct investments, the IFC, in conjunction with the International Bank and the International Development Association, has continued its efforts to provide financial assistance to smaller and medium-size industrial enterprises through the medium of private development finance companies. Since 1962, the IFC has had the responsibility on behalf of the World Bank Group of institutions for considering proposals for the establishment of, and for the provision of financial and technical assistance to such companies. Through June 30, 1965, the IFC has made gross commitments of over $17 million to development finance companies in 12 countries. Total resources made available by the Bank Group to such intermediate institutions through the end of the period under review, amounted to over $370 million, an increase of $77 million over such assistance through June 30, 1964.

INTERNATIONAL LABOR ORGANIZATION

Document II-90

Report of the U.S. Delegation, Submitted August 24, 1965 (Excerpts) 58

Forty-Ninth Conference of
the International
Labor Organization,
Geneva, July 2-23, 1965

Attendance at the 49th Session of the International Labor Conference did not reach the record of 1964, despite the fact that the Organization now has 114 Member States, as compared with 110 Members last year. The Conference was, however, a productive one, carrying forward its substantive work in a comparatively calm atmosphere, even though there was considerable political and propaganda activity. The Eastern European states made a strong, but unsuccessful, attempt to obtain increased Conference honors, which slowed the opening activity of the Conference. In contrast with other recent meetings in Geneva where the Communist states had been operating in low key, at this Conference, during the debates on the Director-General's report, they unleashed a concerted attack on United States policies in Viet-Nam and the Dominican Republic and charged the United States with aggression in these countries. Because of the studied nature of the attack and because of the ineffectiveness of the presiding officer in excluding from the debate such purely political matters outside the competence of the ILO, the U.S. Government, Employer and Worker Delegates replied to the charges, explained United States policies, and launched a counter-attack on Communism." A number of

Report of the United States Government Delegation to a Meeting of the International Labor Organization: The Forty-ninth Session of the International Labor Conference, Geneva, Switzerland, July 2-23, 1965 (Washington, Department of Labor, 1965), pp. 1-3. The U.S. delegation was chaired by Assistant Secretary of Labor George L-P Weaver.

5 Statements by the U.S. delegates are printed in appendices VI-VIII of this report.

speakers, particularly from Africa, also in conjunction with the debate on the Director-General's report, attacked the Republic of South Africa for its policy of apartheid and Portugal with respect to Angola and Mozambique but without the impassioned statements and emotional stresses of prior years. When the representative of the Portuguese Government spoke on one occasion, African and other Members protested by leaving the room in a quiet and orderly fashion. Most of the fiery oratory was confined to the Resolutions Committee, where such activity is to be expected in connection with a discussion of political issues involved in some Resolutions.

The Conference was attended by 1,130 delegates, technical advisers and observers from 104 of the 114 states Members. In most instances there were full tripartite delegations, and 68 Ministers responsible for labor affairs in their respective countries attended the Conference. Each member of the ILO is entitled to send four delegates to the Conferencetwo representing the Government, one the Employers and one the Workers. These delegates may be accompanied by technical advisers for various items on the agenda. A breakdown of the attendance shows there were 204 Government delegates, with 365 advisers; 100 Employer delegates, with 163 advisers; and 99 Worker delegates, with 199 advisers. The United Nations, its specialized agencies, other official international organizations and nongovernmental international organizations also were represented by observers, as were three territories.

The session convened on June 2 and adjourned on June 23, 1965. Aside from the daily plenary sittings of the Conference where the report of the Director-General was under debate, work moved forward in nine Committees. Five of these were standing Committees which deal with the same subject matter each year, i.e., Credentials, Selection, Finance, Application of Conventions and Recommendations, and Resolutions. The Standing Orders Committee did not meet in 1965. Then there were four technical Com

58 See Appendix I for list of countries. (Not printed here.) The following 10 countries did not send delegations: Albania, Bolivia, Burundi, Dominican Republic, Haiti, Iceland, Indonesia, Laos, Paraguay, Republic of South Africa. [Footnote in source text.]