§ Mr. Braine
asked the Minister of Overseas Development if he will make a statement about his policy in regard to the recommendation of the executive directors of the International Development Association for replenishment of that body's financial resources.
§ Mr. Wood
I am pleased to say that negotiations for the third replenishment of the International Development Association have been successfully concluded. Details are given in the announcement issued by the Association in Washington on 23rd July, the text of which is as follows:
Agreement on I.D.A. Replenishment
The International Development Association (I.D.A.), an affiliate of the World Bank, today announced that its Executive Directors have recommended and transmitted to member Governments for approval a proposal for a replenishment of I.D.A.'s resources for a three year period in the amount of $2,438,620,000. Twenty-one member countries plus Switzerland propose making available to I.D.A. for lending on development projects in the poorer countries of the world approximately $813 million per year for three years. The first payment by the contributing countries is scheduled for 8th November, 1971. The first replenishment in 1964 approximated $250 million and the second replenishment in 1968 approximated $400 million per year.
Under the terms of this proposal, the 18 high-income member countries known as the "Part I" countries, would make annual contributions to I.D.A. in the amounts shown below:
Country U.S. Dollars Australia 16,000,000 Austria 5,440,000 Belgium 13,600,000 Canada 50,000,000 Denmark 8,800,000 Finland 4,080,000 France 50,000,000 Germany 78,000,000 Italy 32,240,000 Japan 48,000,000 Kuwait 3,600,000 Luxembourg 400,000 Netherlands 22,520,000 Norway 8,000,000 South Africa 1,000,000 Sweden 34,000,000 United Kingdom 103,680,000 United States 320,000,000
Three I.D.A. members that are not "Part I" countries have also indicated their intention of making a contribution in connection with the replenishment. These countries and the amounts they propose to contribute are:
Country U.S. Dollars Ireland 4,000,000 Spain 2,500,000 Yugoslavia 4,040,000
Completing the package of additions to I.D.A.'s resources, the Swiss Confederation not a member of I.D.A., has agreed to make the Association a 50-year interest-free loan equivalent to approximately $10 million per year for three years, total $30 million. Switzerland had extended a $12 million loan on similar terms to I.D.A. at the time of the second replenishment in 1968.
The target date for the replenishment to become effective is 30th June, 1971. At least twelve countries, pledging not less than $1,900 million, must formally notify I.D.A. by that date that they will make their specified contributions. Until this is done the obligation is not binding on any of the countries.
In connection with the arrangements for the replenishment, it has been agreed that the voting power of the "Part I" members in I.D.A.s Board of Executive Directors should be adjusted so as to reflect more accurately their share in the total financial contributions to the Association. All other member countries, known as the "Part II" countries, will be given the opportunity to make additional subscriptions on easy terms to the Association in order to permit them to maintain the relative voting power of the "Part II" countries as a group, after financial contributions by "Part I" countries to the Association.