General Development Project - Norway - Loan 0097 - World ...

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Folder Title: General Development Project - Norway - Loan 0097 - P037466 - Administration -Volume 1

Folder ID: 1705799

Project ID: P037466

Dates: 5/7/1954 - 5/6/1955

Fonds: Records of the Europe and Central Asia Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA ECA

Digitized: 1/4/2019

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THE WORLD BANKWashington, D.C.

© International Bank for Reconstruction and Development / International Development Association orThe World Bank1818 H Street NWWashington DC 20433Telephone: 202-473-1000Internet: www.worldbank.org

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I I

Archives 1705799A1995-063 Other# 3 Box #170970B

General Development Project - Norway - Loan 0097 - P037466 -Administration - Volime 1

TO RE-ORDER SPECIFY

No. 86163 FolderPAT. USA N.. 148411

MADE IN U.S. A. BOX _; j

DECLASSIFIEDWBG Archives

,' -- ,-~-

1

THIS FILE IS CLOSED AS OF

DECEMBER 1965.

CORDS MANAGEK.: SEcm'IONFeiruary 1969

CONFIDENhTIAL

Sto/u/76hMIay 6, 1955

STAFF 10< C ITTEE

Memorandum from Department of it rtionsEurope, Africa and AustralaSia

NOR"AY - T CLATIS

1. The Norweiarn Ministry of Commerce has informed the BIank of negotiationsbetreen the Nor-egian Goernment, the Noregian city of Trondheim and theSiedish city of Stockholm, for private Swedish financing~ of a hydroelectricproject near Trondheim (the Niea project) to supply power to Trondheim andStockholm. Agreement has yet to be reached on the precise terms of the trans-action, including the price Stockholm di pay for the power; and theNor'egian Parliamenvt will have to sanction the export of power. Nevertheless,the transaction 'dll probabely be finalised1 soon.

2. The project would be built by the city of Trondheim at a total cost ofabout N.kr. 130 million (6.2 million). It is plannaed to finance thisamount through a Swedish bond issue providing 1>8 million kroner (66 millionSwedish kronor) and a Norgegizan bond issue of 30 millicon kroner, while theremainder aould be met by the city, itself. The Normegian Water Course andElectricity Board, an agency of the Governent, would buy the pow.er producedand woauld sell it to Sweden. Service of the issue in Sweden would be securedby nortgagecs en the plants to be constructed and by a pledge of the Swedishkronor proceeds of sale of power. It is expected that these oroceeds wouldirepay the bond issue ov.er 15 years.

trnsctondesnr fl thn nyo te taeexceptosto~ tengtv furlerg clause. tHnover, the t rsain des totapnea to behe icP ank nth ase bnerestrin oe veig The roosed

invetmente wud the selfliatinge o inuter of thedishn kromnt, andfh

And iely2 to orail 19, leg A nge cle.

6. Inthe ircmstacsrcmed trhact dean t, rovin any the tfactstatednomatiolly tong the ank ble leaue. towie pethe rghtti noudohaee

auder the~ neaie pledhgte clausehto say intet incuritinor the rosed

inetrdish kronorn .ate

ni lDiectrn

a. I tecicms-c~ i eonaVo hat, orv o hefcs e not

S''e' inh trne Cxd

Negative Pledge Cl use of Loans to the Kingdomf Norway of Aril 8, 1954 and April 19, 1955

Section 1.03. It is the mutual intention of the Borrower and theink that no other externl debt shal enjoy ny priority over the Loan by

:: 0 ; lie on governentl asset or -y -ay o Iririty in the alocat-ion or revl tion of forign exchange. To that end, the Borrower under-take thlt, xcppt as the Bank ahall other-ise aren, if any lien shall

be eted T any asset of the Borrower, or if ano of its politic1 Sub-diTisons or of ary v ncy of the Borro er or of any such p itica sub-division, as security :or any extOrrl debt, such li.n Till inso actoenually and atab y Yccuro h re5o-rt of the principl o, nd intere:t

and er harcs on, the Loan -no the ond, -na tAt in te creotion ofany Ych lea exprs:s . roision -rill be mae to Iht efect. If theBorrorr, : C .. nstitutional reasons, -1 be nable to ake the fore-

oir undert- MnO effeti -th re ect to r lier on assets of aolitical noivision or agency of colitical subivision, the Borrower

shall -rnt to th 4 -k an ecivAlent lion :tisaatory to the ank. Thecoreoi7 7r lvisions V this Section ralI nt ;Yri to: (i) any liencrrated on nropety, at the ime of purchase the rr f, solely as iecurityor te yn the urchse rice f such prcprty; (ii) any lien oncomnercila - to secure a ebt nturin o more tihn one ear Ater

th a e o c it ri 4r inne ob paid cut c. the>rCeeds 47 sol Vc - suc Wo:rrn OR; i) wn lien aisng in the

cr y cr L < of nknr trancti- to seure A ebt maturing not morethan -f e e . n :hich it 1 &ri rinP > incurred; or

( n r, crt7 in Nor ay or revenues or reoteisou r, lion i vs olitical sub-

ir n u ion f the oroier uderarlui Er or cr uantaucn .hic ' Vcul not x eslt Q npriority in theallocotionr rr reazion o P f porei n aoiP

a av yure e 0se L< e r . e oryJ

:u.uteu-veae 1 m r. alteru y.

Yours ricerely

uroe Africa and Austraai

anin Dire~t~rorean fnicunra Asociation

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!NTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

WASHINGTON 6, D. C

RI', No. 6, No V Cember nb [ , 1953

INTEiiRNATIONAL

SHIPPIG P OLICYB3Y

I FR\T F t \I)

agi\\ ) 1\\ iia n

Interuational Shipping Policy

B1ENNT LUND

IW 3e 1he:ih, VrrepecI 1Ve I nwlA of he t o ptefrta at %tl usnes betwn

Lt 1j cl III I ttheA IU pdn of -I the wol

hav Me u no eainw ihcnttt rah of thi, pricie

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demonIr tn' t Ith frodom ' of sh in has n1 by any means 'I the itorce

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wi c i I

I t

T- r1ea of thi co p of t atte was an ip rtnt faI c in ten a

Eq I I I Ln af m tre Im)a at system- of,, s1lc t a n iIte ; u o n whf had

pre\T Ied in (Ile sphere ei econon I i\du ngte rvi g gs

B erni Lund

1.1 71. 11(

which li orwly he

fid ih l exporters] A1.1 ' and ipIter l ile the 1'7 r ight-wnh71out d inir. ec

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neihO S rcl o indrcl 1 ha37 b ubec to 7aergntin5 p"itical

or~~~~~~ ~~~ ecnTi Irms sudrmrmiim

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a; ad 'to i rece carg /-or d I nauona /uiiinu -t ddra au&

mi - f isi i diecl c 1id r th t 1dsr 1o buli up and prtc

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bf of shppn an of commerce. 1 [

On te cier nmdwin th artcle n Iden lrifungseer :it try etjusufy'K'1KI d iiatory'~ mesures II tKIK' part I L L> Ian G rm in 1 teunt eessar ''S ditcs hereK i h ull iion' ' of line-co fenIcLK rI11 h\. 1'i a nt'e

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MARITIME TRTANS PORT CO~T~

OTE OU P00 IS F INCR F(AST K LU L R N S FEl 1 SI&FMG

1, f~t e rmeeting on the 15th ard 163th October the Counri 1.of the O i~ nstructed the Maritime Transport eo~mittee toconside paet cal wayn of incereasing dolkr earwn r nf 2 ~h

op 7

oof lhovinng

To xu~er o~ ecunries of Western LLr p~services ro

I'yints ' a fu1 cmottve be diyi~v bitu rrntine inint let3 ne rwr1wd orton1 tU

rnakn~ hipirg nauis and~inortnt z~rc ~A incI~f foWe~rdurp Tsawoeadide iipa~Cf~sCo n Fwtzt hi '~aU l~iOadCOulC£ro

ue Thcpnino sipn a 'd fosbeb h ieapleadte ume at etu bsOctbian~ h

V~rd eu geo -t r r~utni h eelo hIavlntin A; i 1~) ad Iaog~2a~~j oe r~aeete~oomiprt

~'~&i mwn i t~ hi.tJ~ 01 re4.n 4 ei~siyn,~ o ~sbet snt

da trdi ir oto trds i fwihaccuu i r~n

nn ( a ~ f~no . wrducbai rd-ofa i -o av ltcpro

to copt ra a4e fe~~ re~ci~ ften o~ lg Itrernewtht~. y~ 4~i~ onbltrl rg e

uiat ldn ohnlld; r9o te~ nlp~eno

4on A th p on is a o sericer th toal voum of suppingVf

an. doTey obiu ways~ thrf oref~ r acivn mor dollar~ Tliearnig r m sioppig are ne ci~ ;a ' nf

(a) to ince ttivse~ 2aI

Amerbia butc irc is hadl woithin the por f 4E0.ttnfence~ te tros ia lum o theca tac xep ins

er paci e of eno 2 toty a ooo

vree frot t transpotato fturissvstigErptom INo~th Arerc a, An frther actin whc a en,volu of tiours rfi nteofhso i ars

()thee dlar othippin;c; Zarlac f the p~ atin oatries,

- 5.Ini e dga t4 d;evopn bethe ta e~~A~ a tc e itSis, owevr, mst ipos n adyt he tEEc p - le Ihald to

S abl to ncrease the Vri ~a eaning in the~ {ree2 trXadeh0Possibl ressra e Qassist the 0a3ot, ;ct as aJ3 searpP a1

ec)uraemet o rar upping ir2unties, bt te is not d 'airblfor tpricI ca~tnra ot:r~3is t o nge t;~ ipping Uco

panie to ecur rePo do~ £he: o brc Wth ncec-', rc

mitte lefiml of Pt o2o arl any naams~ of ti adwhconlc ith the' baic prncp of fr an fai reti-

sooner or la'.ar to 2 . inu e oni aioea ter and sot eea ni

owB ams I~OC2 t a ro mprtt that t e partc - ptir i contieGorent Ir~al rear der staa ro any t on rmaug chapse th ability of ahcippin to compot in an sodvelpe

field.i ts,'c n ~ > -I* ~xc

0(5)37 (1t Risi m) -

be Th trair difficulties facinL the. <~ patcpting- countriitneir effot to iecure anl inreased EuL ean~ 2Darrio L>i

nL te world s &ipin mrke2t ar 1 the res4trictive J7ure noimosdby some ~ conti 1 w1i a vie t o rotectin 1 tirlnaticna

fl ets, by discrimnating~ in favour of vwo-ses of ne own 1 fic ,ad by retrit21 the~ OOplorlet of forei fla aci. s in theirdoetic and r onciona c 1omrere

ere a m ios fCmeas.rCo Af this nature n in force inthe wor is 2s:

(a) meoe nte iel c eW- a extral, inldnmanpultio o rates ofI oe

P& a

th r ztional l a7;

- e20me pr CoIttai

era Gor retrctiveI in0 tAeir kGiLt than- diact~ e iis and

much greate2 than t.e wo'27ld n a. e > a tivbit, More-over,7 t>ue22 assuan2 iK 2a e 11 4irCtineml.

8. Th Oc7, a bee o K a27t towris 2he mdifica-ti11on or relartion of retrSictive -h2pn measres by suppertingresistance to h fl dicriinatio 04WAver2 i~t is enconte'd. Oti s point the bi0time0 Traor lt Cr7ittee wis1 to put o2n rcortheir7 belief tiat co-pertion~ between4171 Gerrents on a world-widebaCls towar:ds t1o rerco22e1 of discriinatory actIiin and. 5 unsessar

~restrictions afctin; 9hipp~i by Go~ivrnmens engaged in inter-national. tade so as to promiot the avJailabilit CL of utopin1

- 5 - 0(2 77(13t RevtI on

services~ to ~ te ommerce of the wobldi without dici inain is

sttsa h olibigetcrealtoi_ a niprartmrt

In tle connecIhon referece >a made to. te arne to thi

and adiittv practi inte UniedStaesar t vo ir jI; u

I> le&jt ReiinAnx - C -

u t I_ ritd: State Ltia t

1. Th r le o ntanece of :le disc i dion in worl

participati countie viw hi 2ma with alarri an are

di) ur n diciintr Jtracticos caUbe ad 22to m

in lo in tae ½. 2 feel st99 I :o t unleato incipal

thmslesn isat o reos toad reie 1rm 2a

exse ao N tu tv prci . n on f la~r est of

themaitc Cras-~ th UntdS 3ofL Kmrc nI t 2 2 ,l :iI-

re w e

sped st patitI ,in -:'r2C 7S

theheens cio vi c CoprIa e 2.ld b, c£rri

vessel - ere 2 'eslel in e ijiemt 2½it 29,n ½r in u

or at' 2 re icAbl '3 o: o s, A~9 '3N n ipl 7oie in this3 Rsolu-tio -,a be a de t et> , cas7 0iaeaot ffns

mus 1e arie la U½ite Staes 1le vese c~In ome case

to, the cent cI menen ocae u to half f t

o f utrU Pola7 i ?n2, wil12 Ti TiT~'d'i i e1 a.e1 2,Iotry t>',o 1te sol191 A indgtr, cn nl

opera'O at1 & Pe expen½ se 01ths one maritime counxtries wicin& norm co1nditions $ 'uld '22e par§ticipated in the trde.I

, Tre principle of the 1934 Reso ution was extended andgiver a mea sure of legislative force by the Merchant Marine Ac

o 96 whch declares that it is n ecry that the UnitedStae shall have a merchant marine sufficient to carry a

sustantiA p ortion" o2 the eport and impo rt trade of the UniteStates, and capable of serving as a niava or mnilitary au iiarin time of war or national eergncy, A "su stantia porition"has in practice been interpreted as at least 50 , Ey this inter-pretation the United States Covernment -in the oonin of th~particpating countries - are setting an exae of restri-tion in shipping which is contrary to th asic principethat international shipping services shoul k.e freely~ avi-able to the world a cor~e w~ithout hindrance or discrimina~

4. It is true~ that th principle embodied in Publ i Resolu-tion. 17 originall relate onlcy to crge f.inanced by te UiteStates Covnment by loans to >oster the erporting of agrculturaor other products from the United States I ne resen~t stteof world afirs, however, n inrasn par oftewolcommerce is in some way or other conn ected with United StatesGovernment financing. In addition to the various mutual aidprogrammes, the considerable volume of goods destin~ed for stock-piling in the United States comes within this caeory, In theview of the participating countries, the abnormal world condi-tions which have resulted in the need for the United Statesto enter into the financing, directly or indirectly, of cargoeswhich would otherwise have been handlead through the usual channelof trade do not justify the adoption of shipping practices dif-ferent fromi those which the United States, in common with theparticipating countries, would wish to see applied for normalcommercial cargoes,

I. is appreciated that preaerentiar treatment oftheUnited Stat-es flag may hie part y b een mot i vted Yy the e::amplof state interference of a discriminatory nature ly oter couctre sagainst foreig vessels including th ose of the Ur-ited Stotes. Yetby acceptig the Convention for the esta cishrent of the Intergovernment Maritime Consultative Organsetion (1.,ca,) theUnited Stares Government have declared tleir roeadnes to ccop'rate with other Governments in promoting t e aviLa ility otshipping s rvices to the commerce of the world without daecrilin-tion.

The present situation in the wrld at lar--e in regrd todiscrimina ory practices generelly is ohio- sly causIng graveconcern to the American shipping inoutry. This is evldenced --the recent testimorn of the Natinn1 Yeetica f AmericanSipping P fore the Merchant Marinm Su-Cmittee 9 s the S te

Interstate and Foreign Commerce Comnittee, e. w ntstestimony he Chairman of the Sbomritteo i:trcicda RrM olti on

tives in ~hhinton, providing "for the remnoval of certain dis-crriiator practics of foeie n nations m anst American flajvessels an fo cthe pupse" This reol ution ha3 so far onlyvbeen adoptd b. the~ Senate but its objecti to V. va authority tothe Un:itd tae Administraon to 2 etalate a rsieya a, ist

such23~ di00into affected Aerican~ fla yeasels~ The scopeof unlato al act1aion , however, limited and, in addition, such

ac tio mi t wel 2 lead to further discrimilnatio byd way of re-ta1 liatio ad tw mw e escape fromr the vicicus circle in whichht.e wholeh uroic offag discrimiLation~ nw finads itself even.

6, t < a 2 '1, iotin countries ae .w ratified to know thatthis5 aspect of the natter is already beina given serious co.msideration in the United States. Attention was drawn to the

harfl eci c ts >2of~ cargo refe2ece in th .QeCOrt onFregE conomICic2 :ll xc pAseted~ to the President by M1r. Gordn ray

in uoembea if) >o rccen:tly the Prient asked the PublicAdvisorg; Doar fo utoa] ecurity to undet.ae an inavesti a tionof the forein toa olicie of the Unite ta> tos, .articula. 17aS they* affect ited tatesr eufotv under the~ Mutual oe.rit1

Pro ramme .o ao leve o nmi >tre th and~ eclvou ame hfree nations d. In particular the wel om th oinlu sion in. thremit to t e oard 2o "ritie lawV and reo gulations concerniV.carriae o Americ ac od asne ofa the aspe.cts of UnitdStates 2o0; n toada poclic tnat uae sled out fcora peaolconsideration, .Te re)Pt of the Bod man hAae fa-roachinreperc.usnit on thew economies of the~ paticia.ting countriesv an>dwill be amited with0 great inteest.

7. or many cx the maritimw cocmtrIes sh ipping represents avaluahbe factor in thi ecoo ic life andi sauld beviewe inthe lih 1 te o armal divisio of Wlabor between th nationseOn a fully comnetitil e basi th.. Ce22 AontiCs have mad merchant

shipinga nwl1 a n iotn sourceo ine ; indeed firsoea of the nt i~s anI aO indispensable ma of earnn thei dail

Lread. Ic. al It is a field of endeavour in wich ney ar'espcially qualifie by 1 tradItion and expe'riene and~ thro >0 which

th>ey are a le to mrake their contribu ti to the. maioenance ofworld trad, ot the i best poss i level.

opruniie fo e nn htas

CO dWthu e lcic th C R>WV

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ORciM No 7 INTERNATIONAL BANK FOR3- 52 R ECNTUTION AND DEEL PME N.T

Date

ROUT ING S LI P -

NAME ROOM NO.

Action Not, anc File

Approval Ne anc Return

Conurent FPremar Repi-Full Report Previous Pa'ersInformation Recommendation

initial SignatureRemarks

T cmFrom

JBoom

TRANSLATION SECTION

Translated From: By:

Tonnr Tht2 snore 1wthrw

1 .

STr own /he

- 2 * RECO'TRUTIO A'D DEVELOPMENT

ate

ROU TING S LI P

NAME ROOM 70,

Acti r Note an FileAPP' va1 Note arc Return

Corrrert Prepare Realy,'' Report Previous PapersnTorldt ioP Rcormenoat ion

n it ia I gna tu rePR marls

Fer

dASION1

Source: Afte~np)oste - Augn. Il

N oway

te P ower Deve lopmenit and Foreig Echang~e Loan.

Te larger part of tie loan Norway obtained fromT the WorldBank ha now been used and the government intendis soon to start

negotithions for a new loan. As the Minister of Trade, Mr. Brofoosis goini to washingtoni next monith to participate in the AnnualMeeting of theo Monetary Fund andc the World Banlk, it semsnaulto presu me that the goverrnment will a for new negotiatioans tostart intnediately after the clase of the mtng

It looks as if the gove-rment wil tr tmo obtain a loan ofthe saw sizeo as last timen, th at is 1> millti. If the Norwegiandelegantes can present a god project, avorable possibilities shouldexist tht such a loan will be ganted.

Th lasstloan was tied to shipn in spite of the fact thatthe ship contructioan prog ram is largeil fianiced by the shippingcompanie d tselves. I t seemst unlikely that the government will1

use te imprt of ships as foundatioan for- a niew loan, but thepossib iit exist of course, it seem a r mtore like ly that aaroject nconneotin with the futhetar development of hydro Ocoer

'es ore will be used.

Th year programi pr-esened last yer by the govpernent includescaanntual inetment of Ar. 500O million for power developmnent. Thisinvestmen t as well as other ivestments reired -toi a ry out thepro ram icle a total amount of' about ar. 100 m> illion in foreignexange which ha-s to be obtai ned partly from our own resources andpairtly iro loians ain inntional aital markect with the -oli

ank as h main source.

The iitry of industry, Mr. Handail mad a few days ag asta tement i he economic Committee of the Salnnvian Council

that oreywoul ask for a lo<an from. the W-orld Bank to fianceora' participation i asible join t can d inavin Power

Development progan ,The -inister was of the opiion that suchna rogram had to bie carried out as an addiioni to wat tNorway couldn

aiccompih 'vith its own resources.

Th Mnise c woan ardl mean that the Sc n annvian progamncnstitute a omple.te new development in addition to the progr-amalay in lued in the '-yar- prgam. But it seemas that exprort

of poe er nighboring cuntries no-i a iniecesaryt requirenmentfor he cayng ut theo lrge -year investnrt pOrora which the

overnen~ t party talkedI too mu1ch about before the las electi.on.arie we heard only rtt~ our power resour ces. shold be developedI

wit the aid of foreti capital, now it ap pears that the develop-men a o is dep>endent on an exocr t of~ power to weden and Denark.

Thi a er to further reduce the advantae of ti form ofexport wich areadyh hae bee seriousl dispted

Bcause of these cosiderationtis g oin to be very interesting

to see 4 ic project are beion preeted to th Worl Bank by theEpvrnmnt n thei r new apro ach.

r -/ 4

T -

- x - - ... -

I

Nowy- auchase of erenn ips

oan ¼o 97-NO, En-Jse eiremnt

Together wihhrwithr lapi½iosNra edi vice

Thi evienc ist porodcdi om schedAe A, pr'tel for iac

ship0 . Tis schedule gives a ubro atculr from) unc t ips-

e hol s )Nrway to, snd us thfoloin reor

la A~ qurerly report n deir ofth sips to. wich

0 Loa hasconriuit.

Cl wer the ships to whc h nha ct ributed arltiOll par oft

havye ben use in cornmerci cagoanpasengr traffic drin th past year.ere hips av bee usd for other

purpoes th particulrs of such shIpssho d be in

Ifti utlie eet wit your pra I ill mae up the i ncs-Iar form fo r t1e rep)orts mntioned sub l and~ 2 and the draft ofoulettr Co be sent to Ioray

AJ~d Leeuw /al

4 4 C

4 C

I. dta 4 dti 0

1 t h helpful if it Uc,

urope Afrea and<CAustraUla

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ant'a t

--

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aN. H. & S.T. , ay 2 , 1996

Mnister Brofoss on the Jna3akt

In the secret meeting~ of the Storting on April 6 the Miniter

of Commerc, Mr. Brofo -, reported on the Waorl iank loan. The Miister's

statemient has now been released.

"a A- regard tie World Banks loan, I can ifor you that Norwayrate

can get 'T.i.25 milion an int.eet/of 3 3/5 but 1I must beadded

to that 1>r llocation to the Banks resrve fund to the extent that

the Ban cannot placa part of the loan on the mrarket. Th reason hy

the negotiations haveo taken such a long timie is that the Bank, as an

inteiratioal institution, must hav general loa regi utons whic

can be app ied to alimst any countr in the wold Some of the usual

pro-visions in the areements are such that we have not been able to

acce'pt thea. Among the diffiultie -is tha of th e so-caled negatv

pledg cause The esence of itis thatif the Norweia Goernentts o

pledesom of jr: ets th Bank so gets a lin n the sae

priority. As the Norwegian Government ha never pledged and will never

pledg its asst, we have accepted this formultion afaras-the

T~~Ok nn/ fe

State iscocerned. Ti by the way, is included in all Norwegian

Government loa provisions since before the last war. The difficulty

was ta the Bank wanted incude politi ub-dvisions which in

Norway mainly means counties. It is evident that these sub-divisions

cannot be forced to pledge their assets for the State labilities.

It is nara. tha they ar lwed to borrow without bringing th

½vorn nt': b rat oninto the p1cture, This problem ha s now been

grava in a a wa that the -divisons e excluded rom the loannprovisions.

On ni.t c.h otben ol yt UKtem'Vno h

f -2-

Bsank of Norway. The World Bank want to regadn the Bank of Norway as

a sub-division It has not been usual for the Bank of Norway to a

pledges assets~ for its loan. The Board of the Bank of Nor y now w antswould bea

to find out whether it xx allowed to make such a pledge, as xxx situation

might arise when such a procedure could be profitable. With the

introduction a cnvertibility the Bank of Norway couild see the possiuility

of pledging some of its gold holdings to the Federal Reserve as security

for stand-by c: edits. This question has been put to the Department of

Justice. The Bank of Norway will mecet the day aFter tomorrow (April d)

to make a decision on whether a pledge of assets should also refer to

the Wrld Bank loan, unless something else is agreed on, I want to make

itr clear that The whole qjuostion is about a negative clause, i.e. it Will

not be of actual1 interest u nless the Bank of Norway piediges some assets

5 NB& .T." would like to add that the Bank of Norway

has not agreed to any such guarantee. The Bank of Norway ha s again shown

its independence.~

DET KONGELIGE HANDELSDEPARTEMENTTHe E YA[_ NO R E 4N OIFN TY OF C OMNMERCE)

n x L M1ANAm a{

U 1 , GR L A

C,,

FORM No, 75(748

INTEFNATIO'NAL BA FOR F I•

RII9TING SLIPDat _

TO- NAme

2

3

FOR-Act on nit ialin

anprova Preparing Hely

mment evious Paprs

___Filing ______ Noting and Beturni ng

Full eport Bommnd at i onInformation Signature

REMARKS

FR - 17

4

DET KONGELIGE HANDELSDEPARTEMENT

/ 6

- -

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FORM No. 58

(5-48 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUMTO: Mr. A. [1. Hoar DATE:May 11, 19

FROM: Neil J. pUterson

SUBJECT: Norway: oan No.97

I a ~tacr for your authorisation a cable .inferir; the Norwegi arsthat the ennl is declared effective. The cable was prepared by Mr.Bengrtonand I hav checked with cther r~ers of the Wrking Party, who haveno resev ~tiens ab'out the lo~an being declared effectiv:e.

I e so attach for your signature a letter to Mr. Brinch about treauthorisa ;in of his signature. This letter, which was drafted byMr. Benj ion, would take care of' a snil leg~al point: we have an authorityfor Mr. B inch to sign but it describes hirr as "Director, Roya NorweganMini stry fComxerce" ano rnot, as in the languag~e f the Loan Agreement,as "Direc or of the ioreign Exchange Department of the Roal Nc rwegianEMistr ± Commrce".

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FORM No. 27

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OUTGOING WIRE

DATE: MAY 1, 1954 CLASS OF SERVICE DESIRED

TO: KINOIX OF NORWAY IGHT LETTER CODEROYAL NORNEGIAN 'MflIETRY OF CO2CFR. NANSENS PL, h DEFERRED FULL RATE

OSLO, NORE;YTEXT: TELETYPE LZ]

REFRENCE LOAN NUMBTER QUOTE 97 NO UNQUOTE YOU ARE HEREBY NOTIFIED PURSANT~ TO

SECTION 9.03 OF LOAN REGULATIONS NUMBER 3 OF THE BANK THAT THE BANK ACCEPTS

EVIDENCE FURNISHED BY YOU UNDER LOAN REGULATIONS STOP LOAN AGrcEhENT DATED

APIJL 8, 19514 (SHIPPING PROJECT) BETWEEN US ACCOPRN4GLY HAS BECOMET EFFCTIVE

TODAY T UESTDAY MAY 11, 1994

IN'"ERNATION;L BANK FOR RCONGTRUCTION & DEVELOPMENTA.SCO.HGA; DIRECTOR DEPT. OPIRATION5 EUROPE AFRICA

AUSTRAIASIA

AUTHORIZED BY: For Use byArchives Division

NAME A.G,0.HO~A Checked for Dispatch

DEPT. DET.0F OPiIONS, EUROE AFRICA & .USTRIASIA

ORIGINAL (FILE COPY)LffBengston;ASCHoar; dhe

......... :aza«,:m::x*::xxx::::.:..xxxxo:xxxzaxxxas.:x:s+a:.:ax:a:::m:a::,.m::::::......zzz::xo:m......zzzz.:.::-::xxxxx x.. x::.:. .:2.:=:=:»«. *:auzm::::::xxxxx. xx.............. .

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DET KONGELIGE HANDELSDEPARTEMENTRoyal Norwegian MAinistry of Commerce

Fd jr .1,098/54 G.Cii/A N Oslo, May 6,1954.

AIR MAIL

Inter national Bank forReconatruction and Development

181r H Street, N.Washington 25, D.C.

Dear Sirs:

With reference to Seation 7.03 of the Loan Agreement, datedApril 8, 1954, between Kingdom of Norway and International Bank forRecorstruction and Development, I have the honour to enclose a Certi-ficet e, showing the authenticated specimen signature of the undersignedas ai thorized representative of the Kingdom of Norway in respect to theaboie mentioned Loan Agreement.

In yabsence or otherwise the Chief of the Foreign LoansIivirion of th- Royal Norwegian Ministry of Comnerce, Mr. Carsten Nielsen,will act on my behalf in all relations as aut¶horized representative ofthe Fingrv of Norway in respect to the above mentioned Loan Agreerent.1is pecimen signature is enolosed•

Reference is further made to your letter dated April 15, 1954,with forms of Atelioations for Tithdrawals. Data regarding the supportingstn; ments will be collected by the Bank of Norway (Norges Bank). Thefoll< wing persons, all with the Bank of Norway, are hereby autorized to

sian on behalf of the King om of Norway, separately, not collectively,the ipplications for dith rawals:

"r. John LahIumMr. J, KnapMr• E. B~rresenr. H. SchirmerMr. G. Kielland

Mr. 7. JoharnnesenL'r. E. Eriksen.

Specimen signatures are enclosedo

ours,

DireeterRoyal. Norwagian inistry of Coranerc*

Authorised Representative ofKingdom of Norway

-2-

1. Authenticated specimen ig nature ofW' - Chr. Brinch (? Copies).

2. Authentloated specimen signiture ofMr. Carater Nielsen (3 copies).

3. &thenticated specimen signatures ofE ners. John Lahlur, J. Knan, g. Brreser,F :Jehirmer, G. Kielleni, f. Johanre,e

and E. Eriksen (3 copies).


(ROYAL i±ORWEGIAN MINISTRY OF COMl3RCE)

A U T H E N T I C A T I 0 N

1. I am the duly appointed and acting Royal

Norwegian Minister of Commerce.

2. With reference to Section 7.03 of Loan

Agreement, dated April 8, 1954, between Kingdom of

Norway and International Bank for Reconstruction

ani Development, I hereby certify that the specimen

signature of Mr. Chr. Brinch, Director of the Foreign

Exohange Department of the Royal Norwegian Ministry

of Commerce, is as follows:

3. This certificate executed in three counterparts.

Oslo, April 30, 1954

Erik BrofosRoyal Norwegian Minis of Commerce

DET KONGELIGE HANDELSDEPARTEMENTRoyal Norwegian Ministry of Commerce

A U T F E N TI C ATI 0

1. I am the duly appointed and acting Director of the Foreilm

Exchange Department of the Royal ar egia' Linistry of Comerce.

2. With reffence to Section 7.03 of Loan lreeent, dated

April 8, 1954, between Kingdo:- of Norway and InternatIonal Bank

for Reconstruction and Development, I hereby certify that the

specimen signatu-e of Mr. Carsten Nielsen, Chief of the Foreign

Loans Division of the Royal inor-egian tnlstry of Comorce, is

as follows:

3. This certiftate executeA in three crnterparts.

Osl1 6. 1954

Chr. BrInchDirector

Royal Norwegian Winistry of Con7mnerceAuthorized Representative of

Kingdom of Norway

John Lahimn, will sign:

J. Knap, w i sign:

E. Brren. will sign:

H. Schirmen, will signj

G. Kielland, will sign:

0. Johannesen, will sign:

E. Eriksen, will sign:

AuthentIcat!on:

I 7 ?rtify that the seven specin signatures reprod4uced aboveare thn snecimen signqturer of "'ersr. John Lahlum, j. Knan, E. Brresen,h. Se!r-er, G. Kiellnd, . Johanrren, and E. Eriksen, all with theBank of lorwny, Oslo.

In triplo.-

'toya NorevIn "ir1itry of Crrre!eAuthorize! -rranortntive of\

indo' of Norway

INTERNA-i-lNAL BANK FORRECONSTRUCTlION AND DEVELOPMENT

WVAS~ NGTON 25 D. C.

V ( /. Ru ti VE LlL LE

P R S 7 R N

4>April 30, 195

DrcrLof Oprtions - Europe,

Africa ancttalsa,

ItraionalJ Esn for peontrcto

and Devlopmen

Washington, -. 1

Dear Stanley:~ 4)C

"Aeidebadet ", Aril 27, 1954

No pldge of assets for the loan from the World Bank.

Nonay has received the sae condition as Ll other countries,

A Ncrwegian provincial paper has asked about the provisions for

the Norwegian loan from the World Bank. It refers to the so-called

"Negative Pledge Clause" and thinks that this clause constitutes a

humiliaton for the Norwegians. Mr Brinch says: "The Negative

Pledge huse applies toall Bak loas It does not mean that asets

are pledged for th loa n but that if in future the country borrows

abroad against a pledge of assets the World Bank shall have the sam

priorit. Such clauses are nt only re red by the World Bank but

they are also included in our Dollar Loans since 1920, and also inlI

our latest Swiss Loan.

1orgenblaet" , April 26, 195'6

(Lete to the Editor from the Editor of aprovincial papeor)

The "orgenbladet"' today reprinted a fragment of an editorial in

my paper of 1 i lh. My editorial wa in ans wer to a ridiculous article

in the "'Telemnt r k Labour News, in which it was said that the erld Bank

loan was a tiblut. to the good eocnoi policy whi~ch has been pursued in

Norway.

My p aper does not knlow the exact provisions for the World Blank

loan but we kn ow the provisions which Denmark, among other countries, had to

accept) namely the usual provisions the 0 ank always impo ses on allorrowers,

ait does~ not want to discrimilnate ag ainst a particular country. Therefolre

I wote in my editorial, "One day the Norwegian people wil lknow aot the

humiliating conditions which the Norwegian Government has also had to accept",

As far as I knouw, the Norwegian Gornment has not had to pledge

assets for foreoign lon since 1d22. Therefore it is more than seinational

that the Government has had to p ledge assets for the latest loan. However,

I sheold liko to ask th Dpa rrtment of Commnerce to maake public all the

provisions for the dollar loan.

DET KONGELIGE HANDELSDEPARTEMENTSTATSRADEN

Hd. 1012/54 G. Oslo, April 23rd, 1954.

Le- _r. Hor,

ThAnk you very vuch for your kind letter of Ai

I certainly share your stisfaction in secing thelog lanned loan from :Ie orild ;Ank to -orway finally

consumpated. It is Y most valuable contribution towardsthe solution of our imediate -alance of payments prolem.

ut o i n oon Is more h ; -hV. It is the t

tge in ai relationship which will, I hope, continue enablingthe Bank to play a imjor part in the f'urther developmentof orwegian ro rc.

r. Erinchk an d his colleaguees have told me about thekindness and helpfulness they met with from h e taff of

he ank and you personally in the course of t hi stay inas igton. or this I am most grat.efu.

I was most interested to hear about the conversationyou 2-d with r. r nh on larch 31st about possible futureopertio ns. e plan to jet In touch wth you some time in

uS tumn.

fours sincerely,

/

Director of OperationsEurope, Africa nd Australasia,Internotional Bank for Recon-struction sod Development,dash'gton 25, D.C.

4

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4

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CROSS REFERENCE SHEET

COMMUNICATION: Letter

DATED: April 23, 19%

TO: Union Bank orJ Sidtzerland, Zurich, Switzerand.

FROM: A. 5. 0. Hear

SUMMARY: Acknowledging letter of *rch 9th.

Regarding loan question, Po l is not a member . Norhas onl ecently recieved a 2 llion -from the Bank and the agreementwas sign d on April 8th. Austr the proposed negotiations for a loanto Austria (Reisseck-KreuzeCk Iwill probably take place shortly. Ther

aeindi ations that further Austrian loan requzests may be expected andue expect the Ltinersee project.

FILED UNDER: Suitzerland - Proposed Joint Operation

CROSS REFERENCE: ortugal - GeneralNorway - Loan 97Austria - ReisseckAustria - Illwerke

loan negotiin, One of the th ing which o shoulike o haveto ro und off ou r reord s is a file> of a ttings fom the Noraei.anpress about the mission, the negotiations an ch loan. I owwriting to ask if' y'ovuculd be so kind a-t hav su a f ile madand Cent to 2e.

Just before we left 0 slo we aske if a ollection Could beraade for us of all cuttings about u iit and of htor' h such

Stose taken by the iagazine "Ui"a. Ne should veri muc o preciateit if they could1(2 now be suplemenf ted by, anythingl that hasapaes ice . So ar we haver eceive othing.

I trust your return trip was pleasant. Mr. Hoar andDr. Baranyai ask that I send you their regards, as d ogi nyour other friends here. oTrgi n

Neil J. PatersonDepartment of Operations

Europe, A-ric and Austraaia

NJatr son; dho

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

* f

5- 1NTER'ATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFlCE MEMORANDUMTO: Mr. A. : . Hoar DATE: April 22, 1

FROM: Neil J. Paterson

SUBJECT: Nor3:~ Information for Swiss Banks

The attached oetter prepared for yoar sin tareyoutrd make forco:nsisten ty in our treatment of the SMis Raib~ hoe asked iforinl'ormatim about the Norwegian loan. Mr. Hill would semc the nomachannel f r the reports.

If you agree, would you kindly sign the attached authorisationfor Mr. Hamilton to release the reports.

This is, according to my review of the Norwegian files, the last"loose end" to be tied.

14

n o na,; ~ i~

r.Nus>uhnor -a-oms uury

se ank Coporation

attachin to spccially class1iie copis of eahof thk rports.

vrecr o1 aperationsEuoe Africa and Austrcalasia

Inratoa -aKu for

ruconstruionan elphn

NJPaterson;dhe-

I attach for your diposition copies of two photog.raphs

tkenon AprilJ ,194, atthe lonsigning. Ifyou shuldike

additiona copies of eiher potograph, please let us kow.

All of us in Washington trust that you had a pleasant

retue trip.

Neil J. PtersonDepartment~ of Opyeratins

Europe, Africa andi Australasia

Mr. Christian BrinchTh Roya N orwegian Minry oCirc

Pat rvor;c-he

Verdensbankentoki Iforbehold om vare an q n

remt aielillIte

L1 t1 3 I I I' (I c Ini I I iTIiI h1 , i

« punt 1ll elstsl Luu c Tc ;ll

knng r aw munnk r u naforkt med erdenshanhen inneholder isse Iregler to forholdet til banken itilfelle ax at den norstke stit, i ~~~~ ~ c

don i'r I a I nliile inmi d pptgielwn ax' utenlandslan. Ibrasijef r ii ~ \t~i '17it -Nit' I s e n I IIlh elt CIWm nietsi x alutaax delmng frembex'er ib tIlmdiidtil 1C1 ot i erkt merhor Mlorgenbladet at dise redier er a,~ t.ii 1t

lltforme tat de a -i nmr~ erns med nor k lo.( i t 'im\f- ,~t[ , 7

'1

,n h k i e rea sit er e

or eriitet i A- an en'

Norge fr de sam(e Ir lleAcryde p b ort for''

Hyye-rgne «F lksaisn, - - - - - - - - - -

Porsrunng~r il agrepph b

tinelsenidthe re I ska ~le rl~ et ilket ydyed 'ngelsr

til besemmelsee omlde1sakalt

fym or dennkbtt. Ar-~a k r'[edla et har ed sgmtil eksne5e a 2// t' I HI I''

aedrnet Chtan B - sie hkpdsasj/~irc i i

h le Ttgtted t ban lke g tsom enerIatn a31rtik le m~TIia ky lde e is- Kn ' 1 '1 ~ i'I

igjeIn It allbnkns ' u(Itlsn.lDe

innbereike alt dt tilles noent treH i kker he(It f Ir an men sirat om lancid fo fram'tid n tar op

andrteln n uande molit antIk

kerh e nlska 1 tneit ittedensban-13

kin vt r iest~~ilt hv p~ricoritelbr ednbnemnd ~andr. Slti ke lausu l evde ikk iC s idlrinv arttlp

i'll -. 'siden'Irl-ogfiinnestogs :n vcrt

~it lITI H jcnssjefen' BetinnelsIen nforivari

nil tiiIkn pit oCn1mIteCfra de betinge!

ve under * p1. Blant disse finnertemehomnt andrei Danmar111k og Nuder-

latnet Noen realsikkerhet er ikke~stilt I noen fomL1

Gnnia'I Ia

A for0 IordsUtsikt 1i' ci"1 nyttet nytt norSk I LI,

V crdeisacena(1U 1aI 1n I 1i Verdensbnke aribamnmmicci av nestec

I >r I I I Aholden f/j( 11 'CI- CI (if V( ( ~s~~J 1,lioliss fly. -c , a a esicl.for 1(111 ics (In at. Hano- me 7 str e.e m1 Nor gBrillch Tatt i btra'iki n 711 e skulle

del1'departenetet ~l 'i j1aua m1a- 7nske1 p. oppt a et sltikt, 11n.

Forholdene skulle lige g oditire r tuf - ned ble11 10nmodet171 om71 a send enll 71 De :11n ''om7 Norge' nu11 har71 fatt

flOr.', Idn i Verdeigh" delgaj~ t07i 11 Verteoj'nbuken Iaglken j pet a 95 i re~e (Ch0r. Bri1nc2h videre , og', bakgrunnen1112

For a fo 1ancue orn1" 1,, 1an pa for det er ,7art' meester1in''l

1program77'71'1177'lns0fi r i n c i Uandelsdepart enwotets v ]inta xe- Men a det1'.10 mitlloner, dollat mi a n s17

10 71 alminneligheL 11'117 Ierdensbanken ma ha sine utbe-ling til Morg enbladet, l iln retii~rtre TI1~ f or pnk fra 71 71' 1717ste 1:'n * p j 25 mitllomr7 talinger knytte l' et c konlkret SFr-IVashington eftei' al ha delar er1'71 ti~ red1 tllende,1 'sier 1maL7 var11 71711 det norl ''iggende5 A F velgavslnttel foha 11lp. I,1

en1 1

konomisk'1717 1

ektor1 h1vor11 71aluta- 71lian pa 25 m fHilonfer dollarC, vfart foste i V a ekspd 77nsje1

r 1Ch71r.

B5 r in7 c' h uneggenes storrelse muugg o ater&nsbanMm nylig er kommet tilbal e fr a7 71ne1 ovendes. i lopet av17 kort771 771.

Efter ekspedisjonajaer 1,gg ti la ashi on, t Afi 117p1 sten1 On' ~ .1', p, i'01p 4741.1144 71711pi71l,!'n1''IT

1 er1 det hele 711ik7 A7 forsa at 711 1 71".1a7 n1. Fe F'< 07111.711171711'

'nd71 Det, ma7~7 thuyk at banken 7101 har ,>ahnse me FFut1landetF og eft'er' nors

un711 1,71 ag 1Far et nytt lan 1~ r a onske er11 l~1111 de bhtt' ordnet.177 'l at7lanene71 7t'717.1 iar a71 og117 F'ppnas71 pa uttrykk1717 for at den haue1t71bur urbetalt som7111 re1fusjon1 av shkeIan as er # norsk side ikke tatt n 1nu1 varende bed le' enf '7oe1 1 den0 tortsatte71 IF vakta

1tl

'el7 e 1''ul bgging av vart land, fortset- Det' erike riktig at det har vortalung 00 e det eventuelt bHr et I denn forbodela 1 da b 1 <

efen, som me- stiUet uvanhge betogelser eHer kravnI av1 '7a711717e karak71~7ter "711om7 dt171I' 1117 Fde17 tfaktisk rea, 111' erF eks0uedisjonssj17117

V'1 Norge I forbmdelse med laet

Pu71 ett punklt er 'vi7

endog gunsigelre'

eUer om det knytten til et h 6 'nl7 en.1'7 av17 191717 skul it g 1' e" behandlet' enn va'n i g fra hanke'nsper pa fort1. R kontakt m111,tr1pro1'kt I ilreFtte7 for11 etnI l'n 1 av11

711'am11- side', id12 Norge' xil fa den ove'rvei-

EkF jed1ijonajef I '1nde1 del av lanet i donar, selvom111.4rinch1 17 Fee at717 71, Ut] I 90 vn re skipsuifter'l' I det vsentlhgel

faille '1 pund11l~ og svenskeFO krone1r.Det 1a xig er111 a,'Ft man~ far den v'aluta

'som1 k ti aut1iildml

skaIlieha,',14 anmadg a~g1I'l.~ Ill 12711 171,71 4 171F0'71 1,1 171' 1111

17171' 'IF, '71.11 71,F '4 '71114 1 1{' 711714'11171 I IllNorge.1 I pressekommun1711411,kde ved71211'F1':71171711~111"F'1171' 14124711 II'. SaI.'1211

IF' II.' .'171'ill1FlfF121' FF7117171 07111171]71"7171~F'41 71711 17171,1,1711214" 717110F~111111'71711 11.he't det saldes

- an e "e' 'e" til

1 fortsatte 711 17171, II 12 '11771 71 'lIF1''1 71,12,e"1'112,o i1r~t71.1-I ,F F 1111 IlikI' 1 71 Fl 121 d1'1 1 71 1107171121 jIFI1foridelser1 medF1747, Norge' o~

71 71 111. 71771,1

frem11'tid' muligheter0" til' 711

ass 1711 1:'l 711. '1 7171171 IF 14,~171. 01 1 1'i71'1~1l1F14kI F

11217171127171 ~ ,112 417112 Fl,] OIIF 71711171711 3717.ere7 i1 de121 nor1 ke OF tby1,1 ggi ngem('7111FF' 11711, 1711171 1 71tF't7171i'71'~" 12121711,12 17171'I'll 7171 1' 71 OF 1,017171 CF 01217171711' it'ik 12 7111

71 1271'.,' ''I 4 1711,71121711. '1' 1 571117171"

171, '7111' 71' Ff14171' 1' P110171 17171171,1511071lilIx ('Odi 71,17171 1,IF' 17711. .71' 2 171~71 FI'171t 171g 1)

im'd7er7id 7 n 7 1 sa11 '1e1F'te

en ny 1ban171kkommi's71 1] 17111 1111.b71' k , 1e i lan'i' 1)1" 121 7117117112 1 171" 171.1'F171 711171171171 111us appan vl bli "171t717107117101' 1,51112717111171 1711d111711711'r tlIF7171entlig 1 et IFF

1" 711' 171711 71'711F1'1 71 14117117171 7112717112 a7

17Tere enn hva tilfelet71' 1' '1 F71,,l' 141121 0,1714'0e 71 i71l 71151771211rs 7117177 kom mi 7j,71

71111 o71711101t 'p71 I'1 1, \112171 1'171121"~ ha,' dcl''4 er F 1hodet ' for 4 710 71717171171 I'171 ~'' 10' ,~1 7111'1 71. 71121711171 171.konmusjon 'il nem1 71 71 F'12715717711 71Z''71171 Ira 17171114710711 7111 N71711 -71,1'or 10 ,mne 'gree 'e med7 .A , .12 71171, 71711 0'7117101'11 1001' 7171771 12171 '.7171711aJ ,d17111 'op7 ly11 nin71,71 ''.om7 le inn1 71 7,av71 den'1, forg1'71711 1711 ''12 1 0 12171F11'117171 F ,71171F117171l171k1 111

'.71 11711 inn7rykk av1,~ at' ko ,

m17 171 121 ',1 1717171 171 7171 l'71 1'~1171071'I71 1711'71'71711711-7j1n0n r1' 3Do71dir ' 1 71 1 1 7112717171 1711"117171711' 717171,711 71F711'h7171171711112171kon717111771 ' forho 71

d 111, .1- 71,71711 '71 5 i7171'71l12 Ill 71711'l' '"'171"711'171, I' F"fredsti<1en1d F' '1FF I 171'71"7171F7111',112l71'~F11271 Cl'IF, 13F11711 171,It nor

F'1'1]177771 unk f1rte'e ekspe1 71 71177

n applyser aga at hinet 1h1eM1arre 12nn17 hva de 1 n117, 2 117 l 77-heter re g net nwd

1'

a £111 F'rhan,7d1 nemlig'1217 in d t t7l p1

21 m717iene1~r doh1

a deri droftlseni"t1 I a7 f, belopet opp11li ' m., 1771 ner,71 I d1711a1,er1 i2' det7 he'le tatt1

ko mmetle'nger', ad 1,neve ienenn mange

rdd muI jr sommer- 71 177aer

Hva ama de videre 01onkrete1715n eplaner timer ekspedisjonssje_en1 bare17 71117 at N'aj~onamudsjettet'71''

71 71 'at 7 he I ' e F be,'-rege1

'171 1171 a71 7 171771 .'7'a ,117'17,~'1Fno1"wne771 og1 kk p a p

71 hol27s,

7171 171', 171'17117114 '.11 71',

Skk strammerel'f7 kr-avdrorende forhandl 717'g 1 7I

m1171 n7 rI 11 .711 17171 7171' '~ Ii' 1'net naan h

et an1 at dei ik17 ke1

'e177171a drafte771h]'

717rr17 inn1

117nge. De 7 71. N1 71 rhand7 11'1711e1

71 .771 1mkens11 ard7711-een71171 1717 1 Verden71 banke'n5771On

EkspedajonNef e uttaler o sandanken ikke Mme Mramere11 kra II v

erforIl

1 f711 '7171Ill' 111t er blt

112en utbet a111n171sordninge a~.7177 va,utaen. U 1i .1,,11 vis,7

1 11 i de' at' otrde~'21 f,, o r 17' 71 11o1r1b1ndek med,, 111 7 I,-roter

a 71711 av et sPNMI pros jekt,

711 1,, IJo71, 'Im

dI~ -et!] n'orsk1

'1 1nske

xii ~ 11711' og711F 7

de,'11:771' 1' ' 71' 1'1' 7171

71 em1~ '' ' re7' 7 17 ev 7'dk1,'I

4.7 p11117 71 71J711',.7 1

.

71' 71 17171 71 lii71 '71 ~111 71 71)71,71.ne7 ene17 pr .7e'''"7171' 1777' 1 1de nea,1.1~71 7

71-i USA,,75

d)71ar

117 71' .1177 17 mi' 17711 71n71 r

blit1 a i av The71p 7,11 1 0117

71 ~71 1'13,7171 I' 7 a 0117 je1 71, 171,, 71717171 .I',1"

innet i Wrdensb anken bUr nesI'len halv prosen't 1711 117112ia

Englanslanet 71 19.1 1711 112 1

kvart proseM b IlIger, I'171:11 112t Iiopptok i SverigeI er sp'e- f17 disjonajef ;,rin, t,

April 21, 195

Foundation laid for new Norwegian loan from the International Bak,

Good chace for new an next yer, Brinch say .

According to Mr. rinch, th foundation has bee n laid for a new 1m,

but Norw ha not decided wheher t shold be loan o the same character

as the irt one - a so-called hpng lan - or ether t hould be tied

toan industria projet. Mr. Brinch think that loan cld be of about

the sae ount and on the same trms as the recent on. n ti connection

Mr. Brinch ay that there is a realty in the World Bank' statement that

it is hoping for a continued relations hip with Norway. The World B ak

press. communique states "The Bank is looking forwar to ca cotinued re at'oneoi

with Norwa and to future possbilities- for assistance in the Norwegian

A ewBak s v ould nevesai (for anothur loan).

dNt ". t R. Kr i

Mr. Brin h also says that the ori Bnk did not a ytrter

requirements on Nrway than on other borrowers but rather the contrary. Togh

our loan has bee characterie as "unusual" this does ot refer to theconditions but to the disbursement procedure and the cu rrency. The World Ban

usuall grants loas in the kind of curren cy wich is used in conne-ction with

p patcular proje 't. It was the Norwegian desires however, to get thsu

in dollars and we wil get mxost of it in this currency. The loan from the

World Bank will be almost 1/2 c heaper than the U.,K. loan in 191I n more

than l/4 # cheaper thain the loan we floated in Sweden last year.

LY n

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I.~~' 6 I IC I

O 8 Gbas DS GOD POS

4 I ~ J~ILT

NTFPNATIONAL PANK FOR PECONSTRUCThON AND DEvELOPENT

ROUTING SLIP

TO- N e c

2

3

FOR-Action Initialing

Approva ______ Preparing Repl

__ mment Previous Papers

r ling Notin andI erg

Full Report Recommendation

S In formation Si nature

R EMA RKS

FR( t r n

>6)-

o TKenn

£3 On 36'

-Al h ,,st4,p ass ' 7'

K,6 6)

6 2') On n,

2681 21~r 82 2'' 6)1 A 3'"' e I 'a6 3y s 2' 1 0

2, '66 6) n6)3 1)2 3,: 3 d 2'' ce 2"' 6) 321 6)0 1 1) t 313

6)? 6)1'. :2 '3 I"u l 3; 2?)

s 2 J,3, 1)1 0t '>12, K1)

.1 1L 0O ld 2 n o rW S y d t,, - 2es i _n 36) <.

a

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nl-)e2 o n31 vr

>63 ja12"-

a 323 4 6 3O

1

lear Di. ussbamer:

In acordnewith th promie which I made in my~ letter to~you of Ferur l1 1954, Ic am attacingoryu cnfidentilinformation the folingI reports; hean on theBau Q e enlon~r of $257 milliorn t owy

2. "Th~e NorwegiaLn I rcnt ie

nop tesereprt ar o us t you. As yo aill see the

amjy s long-terme prospects and~ creditworthine 2 ss.

You may also b interested to know that we hav.el;ui ageeto bell early matuiies of thie loan, in the aunt of aboutt) :jillion to the Bako Arica and ~ the hladelphia Nat~cioa Bank,

Mrope,- Africa and Autaai

., A. . sbuner

Swis ak CorporationBas~le

WTZLA DT

FlM No 27(1O) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OUTGOING WIRE

DATE: APRIL 1) CLASS OF SEvicE DESIhED

TO: NCH NIGHT LETTED CODE

DEFERHED FULL RATEOSID

TEXT: TELETYPE

TE COPT ACH -LD AGREEMENT AND IDA GULA'TO G.3 A hPLDTO AY.

AUTHORIZED BY: For Use by Archives Division

NAME A.S.GHAR Chec d for Dispatch

DEPT.

ORIGINAL (FILE COPY)NJPaterson; dhc

s.

-. e 8-5

RMN .26


NCOMING WIRE

1) I 01 1 LIF ----- T- N ----C -----

TO: I ND I ON COPYT

1'O1mATI uOY TO

ILATB N A

ORIGINA L

sl t u so de er staenx somDoUdrI net ade s g ian - ine byggeg

rame og ikke' skisfarien

D-ne er ~ ogs iokiarli nokrsk N rdnI ake kanii nemi i- log ~ps-sine statutter ikke lane til

dekig av~ uderskudd, menfdrfen bare ti pl aduiveX forma, o

m de iel hee at nye lin kan

(Om det ne 1-1] cI- omeIi sen,

- ihar.nee en-lett SK-p men m vikt-s

,i~1

Kankens leele Den bh en ttKongeorde om a' «h ar

dilxis i foinde 6 6 K I - ipsfarte g - ae tider, nar lan-m ilieesltte ele mange

in ndes forhan

b -

a de n- Eske styremak-O soog asingn. Og ut

ons y paskpsaren ikke~aget av kommnik fa

dier v PA len ft e. -' Vi skat ikkeSit uittm nd. kan

Iea meni i Cre ne(ne ori dene'

allike6 e' vor grnnFi 5 aIes

Ka og rs ksj oner

ii Lanidets~

litt ved det na da det fore store' a um, hanaelsfr A ten

in hell at herat m' 1e -or i- yngrei tyraier

B~ankeni uaer at linet s'-sin iamretii Den hari~

hje pe Norg Ito car f> - a" ma tet fonne seg i dem. Men n~ir

economic - developmet't 1 tvi' man na ppleer, at Verdendeben av Nges handelsfl5te e banken likevel 35ner staten 25

«e xa de'vikti' t ' edd idnn ma ai - nettopp;- pn deItte ak-

ut1' ig og ve1n< nt & 'a tou max det vekkte sa? mes t

endlav d en luade trn ertietnke.-

,it betn av skip de hv e eri- r os anldre iode akt caved utnandske 'er~ksteder

de -puppena'i avx 1::tna imgsKommun -aik N'et nevner e i' 'e

so represemet 1.6-:er eksporre rmgri investeringpro

de som er sagt av ' erdns

Dette 'air 'ikta p ; ippetthod on, vxser hvorxatg nete iP '-sen a- hey beskje'tigele 'a be t ne gruppen er. Men ingecn ek-K

dr ing ax leesandarden ved~ermgi-i er i hen-ist E ut-

sterre produksjon bade jord ndet bane hva nybyggng abruk io i g industrii 6'e. id

springrsm opstarten,es det, «siden Norees & andre er~ iheer ikke sA kmx esent ig er byg i et a wva to

un.kturif-lsomm eleri sil ove-retaksometa'', representerer-c de'tte .tkii i .L-

p'rgra mer en indikasjna art sagt sorlige kov pdgeneirele mnL enn en an som - - 2

are mynogneters becamennetkan i ges i dealj '2 wr

-ins sirels er ner g n txvekt tegges pA eksooer1 t idusr caug noment Det er mes aen, somia sivarer for over en tred

a v pii it den o g ino den i

jedel av Iande'ts saanlede prir land og I fo

duiksjon og pA skip-farten, simDet er- ofteree nvdt, at ftl~ten

er etn avx rI iorges hove'dk ide f- . i "denaan-

fr fremm'edl alaaken ser det ikke 'ik. V N ma

Btanken gir ent re)k-ke ytter~ge

re opplin ger oma skipsfar en- hei i et . O den 'f or eeig,tens betydnting fior Norgea. lit

ene '-urderm ra

-- inashxar verdensa trcedje storste t -n nal an nol ax norik 1kono-delsflte, denne ermone

-o mu>l gh e r mer - rel i'6eten

meget effektiv g om dat k an -~l.Mt aVinvendes ena del mot at «ene kelysverdig,

-- -gunstig i foarhold til andrealan~dsi er det ty'dettg bianen

syni, at handelsaf Aten er e'n avdte viktigste faktorer t Norgesa

chktnomi. Den-i gjt de tia e1

a:ynefaenxde itgangspukt foI

landtt at rdienesi' byggpr-

grama blir gjennomri Dit i

er etimer posti t -prora enii cxi

regjer itngeni - -anidspl ar'som er inikasjoncr aiv gene'

relte ima'

De't sinner ogspf tijennomi, athanke tror ier 'a Aden-l privxat'a

ioetk mht. Og nfi' en se

h-ena at den pisjon norsk kps

fart 'enge har hatIt iar -n gd

holdtepunk te-r. Norsk tonnasje

e ean sitor fakaxor i x-erde'n-

treanspo-rt og d'eraed-viktig p mdenx iternasjonate hander

I kig so -i fre er den afstrt n-asjona aiktxium. Fan

hen har troig xiurder. 'adi mu-i

tigheter.

It

F'ra norsk ie er det dA vidt

xi xet ikk i' - m noe Ifn spe.

sieltti skpfain I nasjo nat-budsje-ttet Ifor i brer det renel;medi et ii une6kd pA 87 n t"i

kri so m A Ine Men om6ed-

ion' het dei at de -a matte

skaffe seg Mn ute if ine by g-Montrakt Og se i en 'ee i

f o~ridelse medt V i ere-1ba'n

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#LC i

OCatWES reC61VM by:

"N. H. & S.T." - Apr l 13, 1951

The Do llar Loan and the Shipping Business.

In the press communiquae from the International Bank it is said that

the loan is intended to heip Norway with eco noi develouiment. The

enlargement of the Norwgian Merchant Marine is one of the mnost impoortant

parts of thi. developmfent. The loan will give Norway some of the foreign

exchange it needs for payments of ships being but by foreign yards. The

comnmunique also mentions the Govermenti s inivestment program. This aims

at maintain ing full employment and improvement of the standard of 1living by

greater production in both agriculture and industry. But, it addIs, since

Norway' s economty is mainly based on priv ate enterprise, this program is

mnore of an indication of a general goal than a detailed plan. Particular

importance is plac~ed on the export industry, which accounts for more than

one-third of the~ country' s total producotion, andJ on the ship pin~g business,

which is one Norway' main sources of foreign exchange.

The Bank~ supplies a lot of additional ifrmation about the importance

of shipping to Norway. The Bank strikingly makes shipping. the basis for

the loan and considers it important for the country that the building

program of the shipping companies be carried out. Thi is a more positive

program than the Government' s long term program "which is an indication

of a general goal". It is evident that the Ban V elieves more in

privat~e enterprise(than in planning). In war and in peace Norwegian

shipping is a great national asset. The Bank has probably taken all

possibilities into considercation. As far as we know, no loan for the

shipping business has been applied for by Norway. In the Niaioal Budg~et

it is said that the~ shippinig comanies will have to get their own forigmn

loans for their building contraots. If this statement is compared with

the World Bani r' cmmuniqrue it would look as though the Govern mn and

not the shiig basiness would now have to g'et loans. for their buildinugprgai

2-

idsry

No %¶d sso dependent on foreigrn countries, both for new

constructio and transport, as the shipping busines **

It ha r riht to get special treatment by ou authorities. ** It

has often been said that the merchant marine is growing too big. But

the Worl Ban k does not think so. For a iong time the Norwegian hipping

people have been saying "w must sail", and the communique from the Inter-

nationa Ban k in reality says the sam ting.

-6 V

x x - - @ -3 2 3 3 A

- - x -

AIMAIL iApril 12 L 19 5 K

red ic 'n prdactd I h-eyo >il urarst'> ld haayr that

reaton, (si ala the iCas when4t we' are3 lnin ato aftl country

O rt tiil. AleO, whle inave ¾KK irfdt 1ea lPV i ole

mutual avantage

Yours sinrely

A. 3. . Hoar

or ci 1< ban1 I

arer dr i

in0fNra' posblte an rlm an haebit up afrn a<nd frienl workin rionship3 wit th oepe i ora

wit am~ oe hae ha onat

n. . . oa

Royal 'tiiry &f ;inariceG -lo

? WAY


OFFICE MEMORANDUMTO: Fies DATE ril 1

FROM: eil t . er-rV .

SUBJECT: Noray: bo'n oe'7

1. I hae exracted from the official tracript te folowin o et

by Mr. Hoppenot abouit the Frano-Norwegian debt dispute:

"~ The di puto between the French bondholders and Norway of long-standing has bee n very well1 and vory fairly put forward by the Bark-by you, Mr. Chairman, in your expose. I wuld not presume to have anopinion on the merits of the case - first, it may not be my place;and secondly, the best legal brains of the Bank have said that theyshould not attempt to judge the merits of the case, so far be it forme to get te ide a that I could judge the merits of the o ase.

But I tink I cold say one or two wiod about procedure. As mycolleagues nay see, the bondholders, in one part, have suggested oneprocdure, and the Norwegian Government has another procedure. Well,when we come to questions of proceduare, I think tha t an agreementcould be reached on procedure. We just had that very long dispurteof Brazil ard Japan, and I hope that will be settledI or be on the wayto settlemen t throug h an approoriate procedure.

I hoipe that the Bank will not lose interest in that case and~ willhelp us, the participant concerned, to find a proper procedture Thisis undoubtedly a case where if everybody tries to find the ways andmeans~, some settlement can easily be reached.

cc:r ka

lj~btersn; dc

Linet iVerdensbanken

JDET ER1 INGEN SENSASJON atNorg h ar fa.t t lan d1Verdenban kien eller at linelandiragLendet ble' begrunnet

med hesye ti de stor skipsibesil1inge i ulnet . i~d' Rik-1tignok kan redernec, hvis dres innsla i utenriksokaonmien1

betrate isolert, selv'>1 I -inasier kontraktene av' eget valuta-

overskudd Iliksom1 de fiansierer en 'I ikke lit en del av Utem.ved pruiva'2tel 1a ill.d'.

Meni som.1 lndets bet a.lngsti lingI er, trenge et> netttiludd av valuta for a sikre imporit av' vikt1'2ig vaer Hor-for dti1te ike viiar gunnlsen fo' r lnnet, far Re gi eringin

el svare pa,.

NAR DET GJEDE d ni fortsatte lfians eri ng a' ietaunderskudet, Alsyne Rejeringen som aa mange'

adr vikig omrader.11. a b a st ue ne des tet p in Med

av underskudd'et xa IredeesudkktJ r letki'fVideri er de t ralnyd atuneskdetp ueris

hadee iar ir adk illigW>1111 stpr enn1 Nasjonalibuetet

asa. E1e' de' i oppavr somg ioreigge hiil e et liall'

fa klokes' t rgn med~ det. Det dlek ee laeo kan'

del av 1n dentutnrisakni e oitk. uDet interessereikke '2 ba llteoeti2 r. 11 b 2vtL1d'l'f1i{>i l lt>

AHvertA Il eneste ennesk i'lde tae aveig av cnat i

uungAr 'C1 1bhaelgeovrake~ler herd. iyl 9 ' ~ll1

"org nbladet" - Aprll 10, 195

Th loa from the World Ban

It is no sensation thiat Norway has got a loan from the World Bank

or th at the loan is based on the 1arge future ship deliverie fromn foreign

It s crrect hat the shipowners themselves coud finance these

deliviries with their own surplu of foreign exchange, although it should

be admitted tha a sbstantial part of the2eforen fuds are obtained. by

private foreign lons. But the countryt. a amnt position requi res a e

addition of foreign exchang to ensuire 'iorts of important good. Wh

this ~as not the basi for the loan, th Goverinen itself will have t

tell. The main thing is that the loan ensure s spl of foreign

exchang to s trongthen the foreign trade buge. An when shppin offers

the best financia-l bas'is, ithas it expanation in the fct tha t the

Norwzegian Merchant Marnei of international imnportance We hope that

the Governmeint will understand this also in their sippng policy, and

not only whn it is quetion of getting loan. The Norwegian shipping

busines has such a high reputatin in the world that it could surely obtain

an even larger supply of foreig n exchang fitwerenot haasedby

e loan from the Wold Bank, however, givesi to wo veryinteresting questions ilich the Milniste.r of Comme.rce should anSWer as

soon as possible. The first one relates to "1some difcult poblems"

whih, according to a specia cable t o ou paper yesterday, had to be

br&ough before the authorities in Oslo for a dec'sion. Tbe secod one elates tothe lar financing of the. deficit in our foreign trade, ater the loan has

been received and after a loan fromi Sweden of the same size as last year.

To pas judgment on our countryt s foreign economic position, it

aiud be nterest'in to know abou t the "diff'icult problems" mentioned by

- 2-

our Wa. hington correspondent, Geneorally there are no tremenous diffliculties

in nego tiatinig a contract with the World Bank for a learn. Therefore, one

must ask, are there urnusual provisions or requiremen ts in the Norwegian cases

If our Government's economic policy has given our economy an unusually

expansive power this should increase and not limit our creditworthiness.

Let us for once get to know something about the circumstances which to a

great exctent influence the judgment of central parts of our economy.

At to the question of later financing of our payments deficit, the

Govermenct, as in so many other cases, appears to be without a definite plan.

Even with the International Bank and the Swedish loans a substantial part

of the deficit 'will not be covered. Furthermrore it is probable that

the deficit on foreign trade wil be quite a hit larger than estimated in

the National Budget. At least, according to available information, it

would te mee to make a conservative forecas't. The non-covered borrowing

needs ray be cosierably greatter than the old forecast of N.Kr.150 which

would rmain after the loarf from the World Bank and Sweden. Let us get

to knot to what extent the Government counts on obtaininug these further

loans nhich are a necessary ingredient in their foreign economic policy -the

that will interest not only/theorists.

do011ar i ordeni

4-11er 20 de 11iei1 10S)i t~hk

1 t 'A Nil 'utflmit

RetetDn Interna- oal it' < en-t 1 1

utvi lin ' ogt

Lae har i en i lope12ti'2 r me Ieig rex ur' er t, epresen-

ogreteoti 2i d te p i ,,- ere brd grl ag fort vi

n ti- 1 s prol jon Am risrn '1r itt e Uen ese

en a l bi gym i i 191 rn ateklg tl

1merikande fortigs m e ap tl P-I gtmo av

mkkrhe iVeres~mkn- i' rtr Iita ii merennhol

sitt veta med tti'' u I d- ne 'e Iv int, hete det

lit vu i r 911 e D ,ke i ka lane , y tte iF

toi t iiu od A r ikke1 il y pI ' e

25millioner dollar linet skal g ilbetaling av skipskontrakter i utlandet

Ena~ vil gradvi tvrkke pai Lnnet ov er .5 -6 mnidr.- rentn 3.75 pluss I p)st. ti erdensbankens reserve fond

lD e o uklarbet om an- punlasn eLdn, og~ det svenl-| tmlser. Hva I 2 mill] net ivendelsen avx de 25 mill, doll, somI ske Ian i fjor, hvis ne ttokoende etpar amerikansk e baner ld

manlf omsider far lane i Verden-~ bl 0,06 ps fost avragene fra~l ktbr 15ba.nken. D et va en 1 gang pa ta-le I iienten av dollarlne inngar koster i Ir ete er ieppytit en dlet sklle ga~il tH kratut- I pst. til Vecrdensbankes reserve (Vi i henaviser tilh teerammer

bygn, bl,. amer kraft tO ala fond iehod til d ns ultL nbie- Yide '3

pa'begyne lubyggig avTokvassdragt ml. v.-

«N H, og S. T, ftie. i tVedenbanenUtkehargatdmerpat den sal nkffe Ian til kraft

n nierliggende planfrnnd regjeringens linjeDlerimot finner bake atl de

norskeL skip~far sa>i vel strtgs-

mill. diol, til etading av ork

skipskotrter 1 utlandes

«N. H og I. TIfrsa at e

AZ'Hevder man i stortmngskretser

I '~ at lgeringli-tatt'vare'l'ngivereiibare

I'>Flak - K ei's~'e"e1 C~ harI funneta nilots skpft ve~dig

I casv tutn p llnene v~ a M an pekerlideeC fiC ansep

at Den Internasjon l Iak

som~ grmat foria latn.~si tMan

vet iebetemt m dnnosk

har firsok seg medi andr pro-IlC I

andr iLdustiellt titk en sti-denfoandlingen har blltt t 'a

vidtLi lan Id, er' dettc trolig. IBtn-kns enoIske- ek'serter har1

i* tilfl IlIatf altsi ke unnet deforsvllig~ sll~t pa slike11C tSitak,

far't Iogsi d enci' verdt.an~i lpekeri ogVs' p deni annenI

aide pal at det erV tenikelig ait de

sk lfipfaten som'i ag'n forKe' B C''fdl''Kn L ant

I a-lle tilfelle er de ifu'llt pdll Cr'ine at man1 hlst 1hadde settbruk de'In gam"le formulein forit

statlan a-tillsI stre'leatatii0les

De, tufatiske forhoI ld er veluntidlertid at des 2.5 mlul, kr, til-

6-J M adanet

D0 ! 6 ~e b [r nuar7 neste mnrN o g i k h e or e areiS hetronsatrer hyke valuta

V uterdeneghan ahatr kps25 mi nS. dollar an erin esemavgfeegdt

av skipskjep i utlandet m p t bned$dsWVASHINGTON, torsdag. (NTB-Rieuter): Den inera une t mmoner dinar eter man oga tai hensy H hil~lke l-

sjonale gjenreisingsbank rneddelle torsdaig kveld at den 17. maoe krone ii Verden- fte reene rira Coo adekevehar gitt Norge et lan pA 25 rnilioner dollar til okonomnisk impe avlip fra utlndet og een aeppa tadt

ut vikling- intet annetl, for ile brasjef iVA SLGS L ANETY XPE?LAnet har en lppetid pa 20 Tr, og rentefoten lir 4% N I e I s i ad eparteme

prosent iberegnet provisjon, I'ets vautndui t Mrgn ia sporsmaletio hv om skju

Amnortiser ingen skal be'gynne I handieilsfatn rnden og hovst 2oktober 195 To amerikanske for- effektiv ogtloe at do noik Nore Perdensbaken er salt utenom 171 det vanhge» som er brukt

renigsanerha1gttme7p 0 iikonomien har 1vke 1 eg rast opp skaI Ilaig Mke til a dekke et spesiltelegr am til Morge n-'etnngabuke lia gA~ nid efter1 den annen verderrlig betainr~ foe. t ee 1 5. janu~ arladet1 gjennom Ass, Press, gir7overta de forste forfallstermmenir L deti'.1 ISIk'rPr b I 1711 1

11Pld ii~iiiav L. for ilsammen 2016.000 resure repener e breIadt

diollar uten sikkerhet i Verdens- grunnla foir ider ice/ e Arene H' 4 og 15 Bra *jefen reg- V'erdenhaniken gir vardigvis kunbaniken. denne lekste et aven av 1,7ner md at d-' v 1a en1 fem-seks inn0 til hlJ konkrete spesialpro-

Gjenrreisingsbanken begrune strekkei7~g 0'1 tilornr a '1 Ia IPd ainedr . i.r opp Innet sjktr. Niir det norske laniet hiarrunn017 or den Dekeaebel att den nevnte karakteristikk, kansitt vedtak mied a henvise til at ningsmegrien'a er d a k i- a yBy.erNele ap leosa a t igsroe lOatx ik

utvidelsen av den norske handeis- reCssurser7 Oi begreset og1 Nra har li n k . te Pv biomag som I der hng amemed atalin ikk

marinen er et av de viktigste ledd derfor imnportert71 kapit7 e ikner fordekke abetamen pai Norges okonomiske utvikling. LA- hudedd drdt-FrssieI tnelte~ koke skip amen tdetoet vil stille til radighet en del av nty b .ldrirg 111 dke saml edere tern

den uteniandske valuta som ma til E jalrar pfor a stte Norge I stand til A UItelR diet Vanlig~e 1, ii jan ar, i1w madiokonitrahere nlye fartoyer I utlandet Hane(.~in~rm liAlr H skilyser for115 s iaeligin

2- E) spe aLeermt ogn

LDe norske skiparederne hiar storI bladeL gjennom AssJ 0 oplyserl gen skyrldo at01 f. eks,n h olkesetL tilstrekkelig kapitli og krndio Ltrsdaig kven ld at forhandi e11115 reeirfr ona idnopoi egen vailuta il A kunnie gjennom. har tatt noe lengere tid 1. en vanlg et Ia i VerdenOsbanlken for A dekkefore den kontraheringen som er fordi det dreie-t se om en ( type Iin avbetlalinger p7 isse>11 konk retepialagte frem til 1957 Utiegg Lii utenom det valLige. og fi-L~enkjsI01'kiIFordi noen Liytteigjere fartoyer vile imidlerid vanskeige, spoirsmi ntt for111 1eklsisotrke.Frd Ie l

benty en tunmg beiatning for den ge0s 1 mynd17ihetene i Osloi 1I lIttale1' opptatt 11 a v piate, mat'lte detnorske iikonomt heter det b an' Repr'eentanterii~ f reiali gaanteilres av1 denl ho0117andke Stat11kenas jorelse, ken tillot ~ikke at mian i lL dem1

n100oen ta lelsecr mn s forhandlin- DEM RElETMMLE

Behov for 52 millioner gi'" emPe 1ikfrid i .aFostigano i

sl~~~~~~~X ~ I ard117I ~ikO

dollar os. rn

&le sTar videre fast at Nolge liar P1IgldfliiOOV~~~lUblo for tremmned vait fu 0 ll02171101,O l~l7

tbeop soms tE-;arer a2 miiee ai soIiU~~ llk

detC Ii at Nore ke htdOre noe'I kker25 roliionor v dotlebetprikande It orretningshanker, The|jo1771

17710 0170Norga egn I'e~~U~s1 opld ^naP1 il penetlegrammer har

lJ~i Hon y~torigare ~n I liian- kmmer n limt lo0 in P-~hiilun

Itn drai tonI otdld

I) o II a r 8 -10 n e t Verdenshan ken li.nerji orden i IOpel av en uke? Norg 25 miii dollar

W Aashiington, 8. april 195i7 To amerikanske forret-Umiddlbar etter~11 sin in atett vi sjei 1vpet avi (NTR - Reujter, De~n interna- ningsbanker har gitt med pa i

komst fra Stockolm¾oaan&- ukeid idet eksped isj3ossje sjonale gjenreisingsbank med- overta de forste forfauisterminerlXigene opplyst satsinister Ein, so1 m har forestattl for- delte torsdag kveld at den har av inet for tilsammnic 2 016000

Top i enl I1pessekonferanse at dei 91' hanlngene som sje fo en re gilt Norge et lixn pi~ 25 millioner dollar uten sikkerhet i Verdens-forhandlinger som paikk X a i Wa- anIdelegajim de ha ovCpp- dollar til Okonomisk utvikling, banken,.

ingtoni om et norsk i'an iaDn in- I oldt se i Wlahington v en Linet har en lopetidl pia 2 ar, Gjenreisingsbanuken begrun-ternajnle Bank drelliet seg rn maned. ete ilbk i lopet a og rentefoten hlir 4i prsn ner silt vedtak ned A vise iii at

23mllol.n tl uke De eriilri Hte beentpovso.Aorie- videJsen av' den norske han.Etter' det «N. Ri 'p.g <1T er 11oug I atekpeijonI ssjefen Clei- n nsa bgnei koe elmarine er et av' de viktigste~

farerl i dag eratleni om de~tte~ ser hje forgc oppgaven er liost o ed ad i Norges Okono miske utvik -15anet eallI ikke" undertegneltselv omA I det enna tydlgiser Ii ng. La net vil stille ti ridighet

llvIi 1I't~ o C 1101 t f ti fT Cr - o IIo endel av' den utenlandske v'alutIa- s~om ma til for a sette Norgei

lan il a0 kontrahere nye far-

loyer i utlatndet.

OaiLan pa 25 millhoner - - Dei tno>rsk si piIdee al st

Den1(1 'la v'erefasvatNo. veda rig L~dt p eytrier fart'eyer~>Ia v~ i Iirn

1'oner alaC.C Gjenrelisn Ingsban .- vICvek C n dennel veksten- ken- redegjoelsei.1 XC 1Ckens la dekker 25 mii C nerC C av e avCnig' . av ti-sk]i ti. De'' .IlvidereC fast at NorIge harde - el ''op, mens xesen vi bli fCin av ka-I Cpita, Pa % grn av e; beh LC I far fre'mmed vala far et

saffe ii Ceie gjermomIC N -e denU : ' bekjdn bfokingsmeng bep som tflxvarer 51 millioner

i-' r i val. rlerd n'C i ut'aa It, be'enset, og~.l Norg harrerfa (Vrdesbanen

Den interna Isal gjeanris - -- Frsatt fansidekvld at deni har gitt Nor' et I

hI pa 21 nu i ione dollarsi111

o'g jenn m ytt-,iier ger lipj

H' I.,i-,11- a- II 'IC ,vi 1l' PBankenl beiv iaer den- norsk hi an-del]sflateC somf moderJCne og~ bCIyt ef-

,~i~ii' I 2iiiLlil iI''~j 'I li~.fCktig og-I legger ilI~ ade norskeI, Xaikonomi

har'utviklet se-araskt efIer(CI iC ''>11 I 'v ii 1111CC C-- -a nnen 1 verdenskrC iifi ig I a ndtsp'In il .1C'iC iC ~ nfaysik og'4C meneskli'drssu'e

-iiriepresenterer-X et br~~fCked C grnlg forI- "I i IC' 1,1, l'I' k, I 'II] I iir vek' t. MenCC II~

1 denneC vekst er

Ihengg avCilCtekkelgatilorin',I~ i'lC 1., 1 l~zk ii ii,'Ic 'v kap ital. iPA gria~ avden be P

iI.'CI',i iil C Iiill~illI'I l~i Zkjedne l> befoknin 'megd er lfanp-A deIs pitalressurse begrensetC ogi IC

C iii C cii' lll 1.1 Xi' C ICIII "111Norge har e rfo ' li gIC~Ie PpLiiilil i,'~ -a i- Nal ' -, i I PCI W N ,"v ii) 'I N iimCr enn hundr'l l e i'Ii ar, h e i det. I

OVERi T'II'LQ a 2 I -aI~-Il DC . l 1 'I lCC llC CP~p1l,'lI-tXpia

"N. Hi. &. 8,T' - April 9, 195h

A defest for the Government' s point of viw in the borrowing policy

iffinancial circles in th "torting today.

Ore considers it a defeat for the Government s point of view in the

borrowing policy that the last tw loana, both the Swedish one and the

$2 million from the International pank, are tied to shipping, The opinion

is that it was not the Government 1s main intention to help shipping but to

improve our foreign exchange situation as a whole. In view of the campaign

against the shipowners which has lately been waged by the labour papers,

be "our aple taste' for the party and its govenent tha only the

Norweian shiping business hasen d creditworth as a bor rr

n th connetin it as been oted out that the International

Bank reqiaes specifi projects as the basis for aloan. One does not knw

for sr whether the Norwegian negotiators first tried with other projects,

such a r and industal projects, but sin the eotiatin hav tan

such a lon time this is probable. The ecnoic exerts of the Bank did nt

find it appropriate to put any money on such projects but limited themselves

to Norwegin shipping. On the other hand it in pinted out that the Norwegia

negotiators might have used the shipping business as a bait for the loan.

In any case it is absolutely clear that one would have preferred the old

formulation for a government loan to improve the Government finances, The

statutes of the International Bank ma aethat imosbe

The fact probably is, however, that the $25 minlion wiin go to the

foreign exchag res.eso the ank of Norway, to improve the poor forein

exchange situtin-to beused whretheneedis greatet. Thersults wil

thus be th e Nevertheless, it must be characterised as a loss of

prestige frthe Governmen~t that it is only the shipping business whch

has been found creditworthy - it is said in these circles of the "?Storting"¶

Norway got Geloan from the World B3ank.

$25 million for the financing of ships urca .bod

The. World Bank justifies' its action with a reference to the fact

that the exp'ansion of the Norwegian Merchiant Marine i one of the most

important cntributions to N orway's economic development. The loa will supply

some of the foreign exchange which is needed to enable Norwa to mae contracto

or ne sh abrad.

In genera the Norwegian shipowners have enough capital ad credit i

Norwegian kroner to carry out the conitractin which is planned for the period

ending in 1957. The outia for additiona ships would mean, however, a heavy

burden for the Norwegian economy - it is said in the Bank' s Pess Release.

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