persist in the sterile conviction that left to itself technology will eventually produce a social justice as well as material abundance. We have also a higher sense of our responsibility before God and our peoples, holding with José Martí that "to foresee is a duty of those who undertake to lead."

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There could be no more appropriate setting for your meeting than the site of the Act of Bogotá, the third of the three great declarations of principle on which la Alianza para el Progreso is based. I wish every success to your deliberations. Your nations look to you and to the high purposes for which you assemble.

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INTER-AMERICAN CONFERENCE OF MINISTERS OF LABOR ON THE ALLIANCE FOR PROGRESS, BOGOTÁ, COLOMBIA, MAY 5-11, 1963: Final Report, Signed May 11, 1963 9

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OPERATIONS OF THE INTER-AMERICAN DEVELOPMENT BANK DURING THE PERIOD JANUARY 1-JUNE 30, 1963: Report of the National Advisory Council on International Monetary and Financial Problems, Submitted April 11, 1964 (Excerpt)**

In the 6-month period under review, the Bank authorized a total of $116 million from its ordinary capital resources and its Fund for Special Operations for industrial and agricultural development in Latin America. Loan authorizations from the Social Progress Trust Fund, administered by the Bank, amounted to $27 million in the current period.

In March 1963, the Board of Executive Directors of the Bank submitted a report to the Board of Governors recommending an increase of $1 billion in the authorized capital stock of the Bank, an increase of 50 percent in members' quotas in the Fund for Special Operations, and a further increase of $300 million in authorized capital stock to provide for the admission of new members. Provision was also made for the election of an additional Executive Director in the event that new members with a total subscription of $22 million joined the Bank. The recommendations were adopted by the Board of Governors at the Fourth Annual Meeting in April 1963.*1

OAS doc. OEA/Ser.C/VI.16.1. The Final Report was signed by the Chairmen of the Delegations of all the American States except Haiti (and Cuba). Brazil, however, recorded separately an "explanation of vote." Part IV of the Final Report comprises the Declaration of Cundinamarca.

40 H. Doc. 297, 88th Cong., Apr. 14, 1964, pp. 21-25. Part VI of the NAC report. "The proposals became effective in Jan. 1964.

IDB LOAN COMMITMENTS AND DISBURSEMENTS

In the first half of 1963, the Inter-American Development Bank approved 17 loans in the equivalent of $116 million from its ordinary capital resources and its Fund for Special Operations, for purposes of economic development in 11 member countries. This represents an increase of $37 million over loan commitments in the period JulyDecember 1962.

Ordinary Capital Resources

As shown in table 14, loans from the Bank's ordinary capital resources totaled $88 million and ranged in amount from approximately $232,000 for the construction of a chipboard plant in Argentina to the equivalent of $25.5 million for colonization and improved land use in Mexico, and included $25 million for agricultural mechanization in Argentina, $12 million to finance construction of a sodaproducing plant in Colombia, $6 million for livestock development in Venezuela, and $5 million to improve the water supply system of Santiago, Chile. The total cost of the projects financed with the aid of the Bank's ordinary funds is estimated at over $200 million.

Loans from the Bank's ordinary resources are repayable in the currency in which the loan is made. Maturities ranged from 612 to 20 years, including grace periods, and the interest rate was 534 percent. Through June 30, 1963, the cumulative total of loans authorized from the Bank's ordinary capital resources was the net equivalent of $281 million.

Fund for Special Operations

The resources of the Fund for Special Operations, which is completely separate from the Bank's ordinary capital, are available for sound loans on terms and conditions which are intended to minimize the balance-of-payments impact on a particular country. These may include repayment in local currency, extended amortization periods, and lower interest rates than those applying to loans from the Bank's ordinary resources. Loans in the current period, totaling $28 million, ranged from $1 million to assist in financing agricultural and industrial cooperatives in Costa Rica to $12 million for the expansion of electric power in the capital city of Asunción, Paraguay. In addition to loans totaling approximately $9 million to Bolivia and Mexico, the Bank also approved a loan of $6 million to the Central American Bank to assist in financing economic development in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The total cost of the projects financed during the period through loans from the Fund for Special Operations is estimated at approximately $66 million.

Through June 30, 1963, the Board of Executive Directors had approved loans totaling the cumulative net equivalent of $117 million from the Fund for Special Operations.

TABLE 14.-Inter-American Development Bank, loan commitments, by country, terms, and purpose, Jan. 1 to June 30, 1963

1 The interest rate on loans from ordinary capital includes the 1-percent special commission which is allocated to the Bank's Special Reserve. These loans also carry a commitment fee of 4 of 1 percent on the undisbursed balance.

2 Loans in which there was private participation, without the Bank's guaranty.

Portions of loans payable in Italian lire are subject to an additional service commission of 1 percent and an extra commitment fee of 34 of 1 percent.

Additional credits will be made available for this purpose by the AID and the Federal Republic of Germany.

Source: Inter-American Development Bank.

SOCIAL PROGRESS TRUST FUND

Under an agreement with the U.S. Government dated June 19, 1961, the Bank administers the resources of the Social Progress Trust Fund, the original amount of which was $394 million. Established as part of the Alliance for Progress, the Fund is intended to provide loans and technical assistance for the advancement of social progress and more balanced economic growth. Loans are made under terms and conditions which are best suited to achieve the purposes of the Fund in each country.

As shown in table 15, loans to nine countries totaled $27.4 million in the half-year period under review, and were designed to assist in financing water supply and sewerage projects ($8 million) in Ecuador, Honduras, and Nicaragua; rural development and credit programs ($4.4 million) in Ecuador and Guatemala; land settlement projects ($7.5 million) in Ecuador and Mexico; low-income housing ($4 million) in Bolivia; and for agricultural credit, teaching facilities, and cooperative markets in Brazil, Venezuela, and Chile ($3.6 million). Through June 30, 1963, loans in the equivalent of $348 million were authorized from the resources of the Social Progress Trust Fund, and $55 million was disbursed.

TABLE 15.-Loans authorized from the Social Progress Trust Fund, total through June 30, 1963, and by country, terms, and purpose, for the period Jan. 1 to June 30, 1963

1 In addition to the interest rate, all loans carry a service charge of 4 of 1 percent per annum, payable in dollars, on principal amounts outstanding.

Source: Inter-American Development Bank.

PROPOSED INCREASE IN IDB RESOURCES

In March 1963, the Executive Directors of the Bank submitted their report to the Board of Governors proposing (a) an increase of $1 billion in the authorized callable capital stock of the Bank, to be apportioned among the members; (b) a 50 percent increase ($73.2 million) in existing members' quotas in the Fund for Special Operations; (c) a further increase of $300 million in the Bank's authorized capital (both paid in and callable) to provide for the admission of new members; and (d) provision for the possible addition of one Executive Director to the Bank's Board of Executive Directors.

In April 1963, at their Fourth Annual Meeting, the Board of Governors of the Bank approved the Report of the Board of Directors

and recommended that members of the Bank take the necessary steps to vote in favor of the proposed increases no later than December 31, 1963. This deadline was subsequently extended to January 31, 1964, by the Board of Executive Directors.

The entire additional subscription under (a) above, would be in the form of callable capital which is not paid to the Bank for lending, but is subject to call only if required to meet the Bank's obligations on borrowings or on loans guaranteed by it. One-half of the increase would be subscribed on or before December 31, 1964, and the remainder on or before December 31, 1965. The additional U.S. subscription to the capital stock would be $411.76 million, half in the fiscal year 1965 and half in the fiscal year 1966, none of which is expected to be paid out as an actual expenditure of the U.S. Treasury. The U.S. increase in its quota in the Fund for Special Operations would be $50 million. Payment would have to be made within 90 days after the increase became effective. One-half of the increase in quotas would be payable in gold or U.S. dollars and one-half in member currencies. As in the case of previous payments to the Bank, it is contemplated that the United States would make its payment entirely in dollars.

42

In support of these proposals the Council, in May 1963, submitted a Special Report 2 which recommended legislation to enable the U.S. Governor of the Inter-American Development Bank to vote in favor of the proposals. The Council pointed out that the proposed increase would assist materially in enabling the Bank to continue its important role in stimulating economic development in Latin America in accordance with the objectives of the Alliance for Progress.+3

The U.S. Executive Director of the Inter-American Development Bank, or his Alternate, acting on the advice of the Council, supported the decisions taken with respect to the foregoing matters.

FOURTH ANNUAL MEETING

The Fourth Annual Meeting of the Inter-American Development Bank was held in Caracas, Venezuela, April 22 to 26, 1963. The U.S. Delegation was headed by Secretary of the Treasury Dillon, U.S. Governor of the Bank, and included David E. Bell, U.S. Alternate Governor, Mr. Tom Killefer, U.S. Executive Director of the Bank, Members of Congress, and ranking officials of the Departments of State and Treasury, the Export-Import Bank, and the Agency for International Development. Assistant Secretary of the Treasury John

42 Special Report to the President and to the Congress on Increase in Resources of the Inter-American Development Bank (H. Doc. No. 153. 88th Cong., 1st sess.). "The proposals became effective on Jan. 28, 1964, when the U.S. Governor cast the last vote required. U.S. authorizing legislation was enacted on Jan. 22, 1964 (Public Law 88-259). The $50 million representing the U.S. increase in its quota in the Fund for Special Operations had already been appropriated on Jan. 6, 1964 (Public Law 88-258) subject to the enactment of the authorizing legislation.