868.10/10–1151
Memorandum of Telephone Conversation, by the Director of the Office of Financial and Development Policy (Stinebower)
Subject: Yugoslav Loans
| Participants: | Mr. John Hooker, Alternate Executive Director, IBRD |
| Mr. Stinebower, OFD |
Mr. Hooker telephoned to say that the Executive Board of the IBRD had approved the loan to Yugoslavia ($28,000,000). Not having heard from us, he did not raise the question of the requirements for Yugoslav consultation with the Bank about new borrowing. I informed him that after consultation with Mr. Thorp, we decided we did not care to raise any disagreement with the Bank’s proposed exchanges of letters.
Mr. Hooker went on to say that of his own volition however he had indicated there would have to be some flexibility in the $200,000,000 ceiling for Yugoslav borrowing, and that Mr. Garner [Page 1854] had agreed the Bank would have to take a new look at the question if the Yugoslav Government needed to borrow beyond that limit.
Mr. Hooker further reported that the UK, while voting for this loan, took a strong position that we should be able to see some progress toward the utilization of these loans before any more loans to Yugoslavia are made. Depending upon what the UK Executive Director meant by those words, it is possible that there will be some difficulties ahead if, as is possible, the Yugoslavs come in for the next slice of credit about next January before there would be much opportunity to put the present loan to work. Mr. Hooker agreed however that we had plenty of time to deal with this question.1
- Concerning the IBRD loan, which carried an interest rate of 4½ percent with amortization payments beginning in April 1955, see the IBRD’s Seventh Annual Report to the Board of Governors, 1951–1952 (Washington, 1952), pp. 25–26.↩