Folder Title: Chemical Textile Project - Netherlands - Loan 0015

THE WORLD BANK GROUP ARCHIVES

PUBLIC DISCLOSURE AUTHORIZED

Folder Title: Chemical Textile Project - Netherlands - Loan 0015 - P037457 -

Administration - Volume 4

Folder ID: 1698017

Project ID: P037457

Dates:

Fonds:

08/02/1951 - 05/28/1953

Records of the Europe and Central Asia Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA ECA

Digitized: 3/12/2018

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DECLASSIFIED

Arc.iiwes 1 /1/1/I IIIII 1111111111111111111111; /11111111111111 1698017 I

1

Chemical Text'! p . A1995-0SJ 0th Ad . . ' e ro1ect er#· 8 8

ministration - Volu - , etherlands - Loan 001 · 5 ox# 171099B me 4 - P037457 _

V WBG Archives

Mr. Y. Verheyen

Josepi Fajans ~ Herstelba.nk Loan

l!aiY' 28, 1953 .

Reference is made to our telephone conversation or yosterda;y afternoon in which I asked you to process the applications Nos . 354 and 3$S, although this would result· in exceeding the list of goods allocation for category IV, l!ekog project, by an aJ:lOllllt of 1831.9.5. ·

I fee1 that in the present c1rcumstilnces we should honour all withdr.e:r.al. applications for legitimte needs11n-espective of category ceilings. I realise, or course, that thi:, will necessitate one or several revisions of tha list of goods and the raising of allocations l'lhich have bsen overdravm. The allocation !'or Mokog would, of course, be raised whenever we undertake the noxt. r evision .

cci lleasrs . Rosen/stevenson

JFajans:mc

NETHERLANDS EMBASSY WASHINGTON 9. D . C.

31

1470 &UCLID 8TRl:aT, N , W .

OFFICE OF FINANCIAL COUNSELOR TIEL. ADAM• '·1'1112

CA8Lllat NllTHllRl'IN

•

'IAr . J . Fajans I'1t~ ·nationul Bank for Rcconztruction

and Developr.: .... '1t 1818 H f;, et, N. "' . , P.oora 1+'2.7 Tt:asnint...ton, I) . C.

Dea-:- Mr. ~rjuns:

W.it.- refecence to our toda~" s telephone convcr::v

I 8.1!1 enclosin0 , .1::..re .. i t.n, "OPY of yotlr lctt~r dated May 12, 1953

~nici ha~ been confirmed by the Herstclbank.

Very -+·ruly yoi.;.rs ,

Enclosur~

'

J~TE H:\'.\TJO:\.\L B ,\:\' H. FOH

HECO:\'STBl'CTJO:\' A:\'0 J> EYELOP~l E:\'T

T£L£ P M 0 N (. f" 'l( l. CU1 Y£) e,.,o

I U I II 11 ~TICE E T, :-; . \\'.

\\·.,su1 :-. t iTO :-. :.! :. . n . L

~ 12, 1953

-.ut.9Chappij t ot. F'inancierL"lt: TM bet Na.tic:naal Her stel N . V •

lneuterdijk 6 The Hague The Hetherl.ande

Pursuant. to the request transmitted to us oc -'~ 1, 19SJ

by Dr . L. R • Y. Soutendi jk, we agree that tlie clo s:ine date

under t he Loan A.greement dat ed Jul¥ 26 , 1949, betueen us be

extended to December 1, 1953 .

Plea ee in~licat e y aur agreement by signing the f orm of

confirmat ion on the encloeed copy of t his letter and return

ing that cow to us•

Calfiradl

00.c,kHA! I CNAL W IK FQl llliCOO SI' RUCT I (1l A.ND LCVFU>HlElll'

/

By /v--~ ~ 4/1~r. Mart.in Ill. RoNrl

!aaist.arrt, Director of Operat.iom Europe, A!'rica and Auatralaaia

Ml.Al'~PPIJ Tor r INAt:cn1u NG ' I VU HEl' 1W' l<JIUJ. HEiSl'EL N • vf

'. 8¥ /-J - v )"~ ?/ / ' ), /' /

~ ef. > .~< ,-; t

".i? " ,.,

CJ( JFajans :mc

Dr. Soutendijka

ite in r fercncc t;o t.he convcrtsntiaru, which you Md • Glrootcrs h with t!r . 'Fajmus during the po.ct ten daYB •

Aft.er corusidori.Dg t.he reqllest. of t.he llerst. l f or en ext.eniri,on of the diobursoamt PJriOd1 decided to postpone t h closing date o~r the Jt loan unt.il c r 1 1 195.3 . A !'orm.!ll letter to thi rt ct 1E ati;ached 1n duplicate . I would pprocl.at it if the Berm. l would confjl.rm end roturn ODC or tho copies boforc June 1, 19S3.

ccardi:ng to t infonr.a.tion avrdl.a.blo to us, all but t o pro·Joct.e D.rO to oo complet.od· betore December l.9S.3 . <ma or t,: t , n. V. ktoon-opinncr:lj B ocrvo, 1o scheduled tar eot1plotion in coDbor 195.3 110 that tho equiprent f'inancod under tho loan should be Jnid for earlier.

In v1mr or the rolnt1vo]3" long di.Bbur mnt. po.riod of the lo i, would r luct4Dt, 1n ruture, to ;postpono·tho cloeing date gain . There-fore, houJd·toor be, on D bcr 11 19S), an undi bnrooc! bnl.tmco in the loan account, wo m,ul.d eitboT cnncel it" or edw.nce it to tho Borst. a.bank . Since tho execution of onJ.y CftO proj ct, ~ tho l"lltic~ installation at tl¥l mino,ldll ext.end into 19Sh, Drq ~ left in tho 10lln account by D cecbor 1, l9S3 O\tld bo rather m:nll .

I underotand that· • • v. aninlrlljk. ~ ccf ,oedercni'abriek c·. T . tori: & Co . int.ems to place, in the next fa ~D, mi or for 001000 'imich the Hentclbank ld llk• to incl 1n t1w lonn. Tb!: expect that p.vmnt, for this ord r Td.11 be bc!arG December l, 1953 .

A ea_ror ot this lotter 11 aU,'ached in cuo you "1sh to send it o tho & Horct.elbank . .. ~

At.tncbmcnta

Dr . L. R. , • Sou.t.mdijk Finnncial CoUDBelor ltptherlanda Ell:bnssy l470 Euclid Street, • •

Yours i:incore~, ~

~ ~~ ///P ~· --::· ~~

~in • l:oren ;-.:~ A !iist.nnt Dir ctor or Oporai~i'am

Europo, Africa and. Auetral.Jlaia.

cc : Messrs .Rosen/Stevenson street S ·ro ~s Morsey

Cleared with legal and Treasurer ' s ::Jepartments .

hin --------~-__,._~-------'~--

-

llaatschappij tot Financiering van het, JJatiOD&Bl Herstel ll • V.

lneut.erdiJk 6 Tho Hague Tho letherlanda

Gentlemen.a

lursuant to the request tranam.tted to ua Cll'l l, 19$3

tu Dr . L. R. • Soutendijk, n agree that tho clocinc date . . under the Lonn Aucece:rt. dated Juq 26, 1919, bctlff)m us ba

ext.ended to December l, 19S3.

Please indicate 7aur agre6!:J3Jlt by sl.grdna the torm ot

confirmation on the enclosed c0-py of thia lett.er and return

ing tbat cow to us.

Ccm.tirmed I

n:rawMICllAL Ml-JI FOO 11ECa1srE.UcrI0U ASD DEVFl,OH.Elr

Ua.rt,in 14. p~ Asttist.ant. Director er Operations

Eu.rope, Africa and .luatralas-ia ..

IW.TSCHA?YLJ Tor Fili'ANCUltmG VAN BEl' llA'f ImtA.AL HER$1'1?.L N. V.

Cl.oared with Miss !!art.qr

II

FORM NO. 57 (5. 48)

TO:

F ROM:

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM Files ('

Joseph Fajans * DA TE: May ll, 1953

SU BJ EC T : Herstelbank Loan

1. Dr . Grooters came to see me this afternoon accompanied by his successor Mr . Witte .

2. Dr. Grooters brought· two statements received from the Herstel -bank and prepared in compliance with my request of May 1 to Dr . Soutendijk . · According to those statements , the Herstelbank expects to draw dovm, before the end of May, about $106,000, in equal parts of dollars and Sln.ss francs , and would l ike to extend the closing date in respect of $127,600 .72 and Swiss francs 1,072,311.45 (about $252,000) • The Herstel bank has further agreed to the placement , before May 15, of a new order in the amount of $60, 000 by one of the industrial companies and would like to see this order financed under the loan . ·

3. Thus the Herstelbank intends to use about $545, 000 of the un-disbursed bal ance at present amounting to about $908, 000 . The residue or about $363,000 would be cancelled .

4. I told Messrs . Gr ooter s and 'Witte that now that we hav e the figures we will be able to decide how to solve the problem of payments to be ma.de under the loan after the existing closing date . I also mentioned the necessity of revising the amortization schedule of the loan after the cancellation has taken place . I explained that some of the Swiss franc maturities had been sold by the Bank and it would not be possible to reduce the repayments on those maturities . Dr . Grooters was satisfied Tlith this explanation . I se.id that we would work out a new amortization schedule as soon as the exact amount of the cancellation was confirmed and discuss it with lu- . Witte .

5. In taking advantage of the opportuaj.ty of their visit , I pointed out to Messrs . G.rooters and ~fitte a coupl &Zinconsistencies in the recent~ received data on the Dutch external debt . Mr. Y{itte promised to write to the Hague for cl arification .

6. Dr . Grooters is l eaving Washington on Thursday May l.4 . Accord-ing to vthat he told me previously, :>.r . Soutendijk will formally introduce Mr . Witte at the Bank after that date .

cc: Mr . Rosen Mr . Street Mr . Cavanaugh Mr . Goor Mr . Spiro Miss Morsey

JFajans:mc

FORM No . 57 15- 48)

TO:

F ROM :

INTERNATIONAL BAN K FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM Files ~

Joseph Fajans '\~

DA TE: May 4, 1953

SUBJECT: Herstelbank Loan

1. Dr. Soutendijk, who returned from Rolland ten days ago, tele-phoned me on Friday late in the afternnon and raised three problems which the Herstelbank ha.d asked him to discuss with the Bank.

2. He said that approximately 1900 thousmd l'IOuld be in the loan account by the end of' May. The Herstelbank would like to cancel i4oo,ooo and postpone the closing date for a year to allow for the disbursement of the remaining $5001 000.

3. I told Dr. Soutendijk that the Herstelbank could cancel the 84001 000 at any time. AB to the ~5001 0001 I said that we had considered the matter and were thinking of' making an advance to the Herstelbank to be documented when the goods are paid for. Dr. Soutendijk thought that this would make no difference to the Herstelbank, until I mentioned the obligation to pay full interest on an advance.

4. I indicated to Dr. Soutendijk that knowing the composition of the $500,000 would help us to consider the matter further. We agreed that Dr. Soutend.ijk, who wished to avoid further delay, would ask the Herstelbank to provide us promptly 11:ith a rough breakdown of the $500,000 by projects and orders.

5. Dr. Soutendijk further raised the question of sales of Bank-financed equipment by the beneficiary companies without our prior approval, a matter once reported to the Bank by Mr. Stanley Miller. Our original reaction is containedY-the attached copy of our letter to Mr. Miller of January 15, 1953. I informed Dr. Soutendijk that we reserve the right of approval in each individual case and would be prepared to look into the possibility of transferring this right to the Herstelbank only if we had a comprehensive explanation of the reasons which necessitate such sales. Our att itude ml.ght be different, if the reason in all instances was the obsolescence of the equipment, from what it would be if there were other reasons. Dr. Soutendijk said that he would ask the Herstelbank to write us on the subject.

6. On Saturd~ I reported the conversation with Dr. Soutendijk to Mt-. Stevenson who called me before leaving Washington.

cc : Messrs. Rosen Street Spiro

Miss Morsey

FORM NO. 59 ( 3. 4 9)

CROSS RE FERENCE SHEET

COMMUNICATION: Uemoran:lum

DATED: April 27, 1953

TO: Mr. Black

FROM: Mr . Rosen

SUMMARY: Re: Memorandum of April 22 on use of Belgian 18% (attache:l to Rosen ' s memo of April 23) . 11 ••• Frere is in agreement .. ith the mePlorandum excent that he wished to make clear that the utilization of Pelgian 18~, in anticioation of the Dutch repayments, would not be automattc but would require anproval in each case."

FILED UNDER: General files - Belgium-Capital-Use of 18%

CROSS REFERENCE: Operational Files - tretherlands Lo~n 1.5.

FORM NO. 59 (3.49)


COMMUNICATION: Memorandum

DATED: April 23, 1953

TO: r1essrs . Broches, ~iley, Stevenson

FROM: ·:r. Rosen

SUMMARY: Attachin,~ a me~orandnm a'riout tl-ie nrooosed b<isis for release of Bel~ian franc 18% as agreed by rrovernor Frere an1 President Black and for nresenta.tion to 'finister J~.nssen. • ,emorandwn provides for the release, for future disbursements, of the 1, 900 million Belgian franc loan of 1949 to Folland , as the principal anl interest are received by Pelgium.

FILED UNDER: General files - Belgium - Use of 18%

CROSS REFERENCE : Operational files - Netherlands 15 Loan

_. "' ., Foe-,t No . 57

( 5. 48)

TO:

FROM:


OFFICE MEMORANDUM Mr. Marti~ . tTn Joseph fajans ~ ·

DA TE: April 7, 1953


1. The 4%, 15-year loan of $15 million was made on July 26, 1949 and became effective on September 13, 1949 . The original closing date was set on December l , 1952 to allow sufficient time for the placing of numerous orders and the delivery of numerous equipment items. The first amortization payment was due ( and received) on December 1, 1952. By that date the projects were expected to be compl eted.

2. Placement of or ders, withdrawal of loan proceeds, and progress of projects have been slower than anticipated. '.rhe Herstelbank resorted to interim financing, using dollar and SWiss franc credit facilities made available by Manufacturers Trust Company and Credit Suisse at an interest rate lower than that of the Bank. '!'he lists of projects and goods were modified many times. '!'he amount of the loan was reduced in two steps to i7 . 93 million. In M~ 1952 the disbursement period was extended by six months till June l, 1953. Only eighteen of the thirtyfive projects were completed by the end of 1952, nine are expected to be completed before June l , 1953, seven in the latter part of 1953, and one in December 1954.

J . According to the attached statement prepared at my request by the Treasurer ' s Department, ~1. 15 mi.llion remained in the loan account on March .31, 195.3. Of this, about $620, 000 represented qualified commitments issued to the Herstelbank, and about $530, 000 was uncommitted. The latter axoount includes the unallocated balance of the list of goods of ~295,000 and a miscellaneous category of $20, 000 under the Staatsmi.jnen allocation which covers thirteen projects. In addition, it includes several amounts allocated to projects already completed. Thus, a large part of the uncommitted loan proceeds may not be used at all.

4. I have discussed prospects of project completion and future payments under the loan llith Mr. Spiro of the •rechnical Operations Department. I t would appear that between one-third and one-half of the committed $620, 000 could be disbursed by the Bank before the clos• ing date : reimbursement of Manufacturers Trust Company and Credit Suisse for payments already financed by them may itself require $100,000-150, 000. Some uncommitted axoounts allocated to uncompleted projects could also be drawn do'Wll. Nevertheless, the undisbursed balance of the loan may still be in the vicinity of $800,000 at the end of May.

5. In vie,, of the length of the disbursement period (3 years and 8! months since the effective date) and the past experience with the administration of this loan, I -would be opposed to a further postponement of the closing date and the continued earmarking of funds, a part of which will presumably never be used. Consequently, I would suggest that:

Mt-. Martin M. Rosen - 2 - April 7, 1953

a. the aDX>unts not commi.tted, with one or two exceptions for meritorious reasons, be cancelled as of June 1; and

b. the annunt of qualified commitments undisbursed as of June 1 (and possibly one or two allocated but uncommitted amounts) be paid to the order of the Herstelbank in the form of an advance to be evidenced at a later date by the customary documents .

Should the Herstelbank request a postponement of the closing date and object to an advance of funds because of the necessity of paying full interest, the Bank might consider the cancellation of the entire balance of the loan account.

Attachment

cc: Messrs. Stevenson Verheyen Spiro

Miss Morsey

oat. Amount of Herstelbank List of List of

Goods Orders

I 413.250.00 412. L}51. 92 II

III 1.544.200.00

a 77.012.15 75.012.15 C 64.434.12 64.434.12 e 4.590.00 4.590.00 f 9.880.00 9.880.00 g 48.446.3.5 48.446.J.5 h 70.148.42 70.148.!1,2 j 424.700.00 424.700.00 k 5.B?o.oo 5.'70.00 1 35. 023. 73 3.5.023. 73 m 241.487.98 241.487.98 n 394.257.25 41.5.094.35 0 16.050.00 16.050.00 p 130.100.00 117.100.00 q 22.200.00 22.200.00

IV 322.350. 00 331.3.50.00 V 230.600.00 230.860.82

VI 82.988.Jl 96. 657.57 VII

v,ur 292.990.82 293.641.70 IX X 50.000.00 49.888.07

~I 64.679.86 66 57~.,,s XII JS. 268. 00 38.268.00

XIII 240.ooo.oo 237.Li.84.44 XIV 1.51.26o.59 xv

XVI 115.8.59.52 186.039.00

HERSTELBANK LOAN I:B I5 NE

*-rch 31st 1953

Total Disbursed commitments

and disbursements

411.638.!!·3 411.638.L~3

1.413.315.43 1.307.670.36

66.470.33 6J. 203. 81 J. 669.L}2 9.199.00

4.5.074.14 69.341.69

382.461.4,8 5.763.6o

35.020.77 214.884.35 374.l}29.58

10.1~.36.96 112. 543. 92

20.816.38 316.071.33 285. 773.16 227.768.86 227.768.86 82.988.Jl 82.988.31

292.990.82 292. 990. 82

49.651.16 49.651.16 64.679.86 64.679.86 JB.268.00 JB.268.00

232. ZJ6. L}5 215.613.82 151.26o • .58 151. 26o • .58

115.L~.59.Jl 115.4·59.31

Undisbursed commitments

0

105.645.07

30.298.17 0 0

0

0 0 0

16.622. 63 0

0

Undisbursed · Undisbursed bale.nee balance of of List

categories orders

1611.57 813.49

130.884.57

l0.541.82 8.541.82 1.230.31 1. 230.Jl

920.58 920.5a 681.00 681.00

3.372.21 3.372.21 806.73 806.73

42.238.52 42. 238.52 106.lK} 106.40

2.96 2.96 26.603.63 26.603.63 19.827.67 40.664.77 5.613.04 5.613.04

17.556.08 4 • .556.oa 1.383.62 1.383.62 6.278.67 15.278.67 2. 831.14 3.091.96

0

0

348.84 236.91 0

. 0 0 7. 763 • .55 5.247.99

0.01

4oo.21 50.579.69

XVII XVIII 1.949.140.00 1.948.248.82 1.9~9.389 • .57 1.8.35 • .519.24 103.870.3.3 9.750.L:,J 8.8.59.2.5

XIX 697 • Ll-OO. 00 694. 733.1..~4 • 694. 09.3. 96 J86.2os • .sa 307.888 • .38 J.306.04 639.L."8 xx 116.500.00 116.483.40 112.946.32 112.946.32 0 3.55).68 J • .537.08

XXI 320.9.50.00 330.164.63 2.57 • .374. 2.5 244.559.59 12.814.66 63 • .575. 75 72.790.38 XXII 68.612.00 68.612.00 68.612.00 0 0

XXIII 9.411.78 9.411.78 9.Lrll. 78 0 0 XXIV

XXV 296 • .500.00 29.5 • .500.00 295.655.a.5 262.192.22 33.L!.63.63 844.15 - 1.55. 8.5 XXVI 203.274.51 203.274 • .51 203.274 • .51 0 0

l'XnI 29.5. 6.58. 29 295.6.58.29 XXVIII 67.474.99 67.474.99 67.L~74.99 0 0

XXIX 255.aoo.oo 27.5.862.00 , 2.55.058.62 244.023.44 11.035.18 741.38 20. 80.3.38 XXX 102. 831.JJ 102.831.33 102.8.31.33 0 0

7.930.000.00 7 • Ll-02. L~.51. 72 6.780.81.3.67 621. 638. 0.5 527.548.28

•

r MAATSCHAPPIJ

TOT FINANCIERING VAN HET NATIONAAL HERSTEL N.V.

Y/394- Bs/Ko.

'S-GRAVENHAGE, 2!8 I arch 1953. Kncutcrdijlt 6 Telefoon 183890/98

International Bank for Reconstruction and Development, 1818 H. Street N. l., r/ASHINGTOH 25 D. C.

Attention of the Technical Ouerations Department.

Gentlemen,

With reference to your letter no. EU 232 of 9th, inst . we beg to inform you that we did not prepare a report on Project no . XIV , Smit , IHJMEGEN , per 12-31 -1952 because this project was completed in August 1952 as stated in our report p,er 10-1--1952 . At the moment a final report on this project is being prepared.

With regard to the postponed completion dates of so~e of the StaatAmijnen projects we have requested Sta.a.temijnen to give us on explanation which we shall forward to you as soon as possible .

Q)

~

Yours very truly ,

t.)i1AATSCHAPPIJ T~ FINANCIERING xv A.lif HET NATIO~IAL HERSTEL N. V.

p~-~~

oc t " . V 8S ,aOAHY1aVA.HD-2' i) :iliib~,u~a)(

B1!\0118E8 l 0001, 1, T

':IO , tae qoi v

uqqAH'.::>~TAAM T3:H HAV ~~IH3:I:)XAHI'i TOT

.V.~ ,I3:T~.H3H ,IAA~OITA~

. o

{.

r FO RM No. 57

(5. 48)

TO:

FROM:

SUBJECT:

----~ --- .. . . .. ·· . . .

INTERNA1101\ BANK FOR RECONSTRUCTION AN, JEVELOPMENT

OFFICE MEMORANDUM FILES

B. Po Spiro

NETHERLA}IDS :

DA TE: March 2 7, 1953

We have received from the Nether'.l.ands Embassy final End Use reports on two projects , nairely:

Project VI - N.V. Fabriek van Chemische Producten Vondelingenplaat 11 XI - Koninklijke Nederlandsche Grofsrnederij

Project VI

This project was completed in 19$2 . The amount of loan funds allocated was reduced from $278, 000 to $82 , 000. This change was due to the fact that many orders werefswitched from tlie United States to Germany, and the ref ore did not require ank funds. The program has not only been carried out as originally contemp](ated, but has even been e:iq)anded. The entire financing has been done out of the company's own funds .

The Dyes Department has been strongly affected by the setback in the textile industry, but prospects are now brighter. New narkets are being sought in Central and South America to decrease dependence on the local textile market. Exports to the United States are precluded by the 48% import duty imposed on dyes.

The following table shows how greatly the turnover fluctuated during the past three years :

Year Total Turnover % Home Sales % Exports

1950 Fl. 18,070., 000 30 70 1951 21, 820, 000 Jl.3 68.7 1952 12, 850,000 44.4 55.6

The poor showing of 19.52 is almost entirely due to the textile crisis .

The equipment purchased out of Bank funds has proved entirely satisfactory with but a few initial difficulties . The number of workers employed by the company has increased fror. 489 in 1948 to 610 at the present time .

The overall picture of the various departments of the plant is that the considerable amount of investment which has taken place during the past few years has resulted in lower prices and better quality of products. Several photographs illustrating several phases of the company' s operations are enclosed.

013'1 k

- 2 -

Project XI

The Bank financed equipment served to purchase machinery to repl ace and renew uneconomical or obsol ete equipment. As a result of the moder nization of the plant, the production of crank shafts , forgings , anchor chains and bl ockforms has been increased and the quality of these goods improved. The pro::luction of heavy anchor chains increased from 2,246 tons in 1947 to 3 , 210 tons in 1952 , wi th a pl anned production of 3 , 500 tons in 1953. The production of forgings has increased from 800 tons in 1947 to 2,900 tons in 1952 , and an expected production of 3,300 tons in 1953 0 This increased proo.uction has ne cessitated an increase in the staff of the company which now numbers 800 workers .

In 19S2 this company exported fini shed products valued at Fl. 740, 000 out of a general tuinover of Fl. 12 million.

There are several photographs attached showing sore pieces of equipment manufactured in the plant.

cc . Mr. Fulton

BPSpiro/bvm

FORM No. 57 (5- 48)

TO:

FROM:

SUBJECT:

..


OFFICE MEMORA~\JDUM Mr. A.S.G. Hoar

M.M. Rose{'\~

Letter to V 4.' ~osthuma

DA TE: February 27, 19 53

Recently Mr. Posthuma of the Herstelbank wrote you

giving information on the results of the Dutch flood.

A propose~knO\Yledgement in reply from you to him is

attacheYas Tab 11A11 • The incoming le1tter is Tab "B"~~..,....

•

Users

a) h DOl t

b) pbtale and An'tnr&cene Pl.ult

) otao 1ura rrc,-Oyanida nt

) phuric Acid Plant

) Co Plant

) Una Pl t

~) . P. P r P t

#) ertlli r

rolac

t

1onal.1 ot User

tch Controlled

eeds

lt se of production ucb1:oeJ')" anncal.1n syw tam, decorat,ing lchr, bottle form.ng aacbine1.

Uipment noce aney to bu1ld new plant.

.u"'MojA~•t or ern1r.o.t1oll of ex18 t.1n pl t.

EQ1llp1Rent t.o m1M end increase production of .xietina plant.

qui t t.o rn1.• Md incre e production far • removal of fiydro n ulphide.

~ nt nee aaary to • \lip DOW plant.

ur1n 1.natrumnts and other ~ t cesa ~ar a new plant to produce soda uh.

qui: t to xpml and reequip a pl.ant •ll as to

ct a new plant.

a.surin a ratus for a new plant.

qui t to increase the power neratin ca: cicy of a Dine

1n L1IID •

Bquipvent to cdermme and expand fertiliser production.

t for n plant.

t. n d tor a new pl.ant.

-a-

Uaen

). KOG

4. lonlnklijic. a.derlabdacbe 230,6o0 Zout.1ndust,r1e

ord nk11Sl:e edarlancl che ~,lilo Grotwa.,:y

9• 1•V • Dna4indua\rie 11Neerlandia11 38,266

10. Drau

11. W... Smit • co.•a Trmwf'ormatorenfabriek

12. 1m,n1e:1131ce rl macbe Pgiertabr1ek1 autricht

• .v. H. Ten cate Hsn. Co.

240,000

tionility ot User

Dutch Controlled

•

•

•

•

"

•

•

•

•

II

uipynt to rn1• and ez.p111d a plant for an111no direa·

&iuipaent to mi• and expa%¥1 product.ton ol d.nc lends.

cllinery to eong>l te the ire t.allat.1.on o£ a pl.ant to produce diesel tors.

chiner, to expam a pl \ l)rOduc1n& Cl'ank shaft.a.

in drar1na clwlea to madenn• a •in pl.ant.

~" atld other equ.1: t to IIClderDia producU.on ~ l'Ubber cabl amd ot Saran.

ui.p!1ont,1 including wire •naael aacb1nea • welMna macbinN, tors, ahem-a and apparat\18 !or nre volt.ilae toting.

Equ1JJ111Dnt tor th&! aoderniat.ion and. imprc:wement. of the pape,l' uld.DG procesa of paper Jtill.

sp,nnlt>S, waving am other ta.t.Ue h1nei7 tor IK>d rnir.a• t1on and e~ion ot tat.Ue m111.

Uaera

is. aa tt•• uUel, i~erbaid

16. ,Nt oaderenfabr1.ek ~. 'l. s tori: Co., • •

selo

17. oll&ndache e.xtiol. Ind.

:w. ••• exU trie tachgi~ •m:1A90m

I • • oninklijke t,. &ch5?i~ •de Schelde

20 ... riJ Oeternild

2-2. l.derN?l & Zoncm .v.

runt of ID Lo

• " rr 26, 19.SJ

) )

.. ' -u

U6,SOO

320,9!,0

65,612

~,!&12

296,SOO

20.l,2TS

67,47S 102,831

aSS,800

u 7,634,342

29S16SJ3

uf:' 71?J01ooo

tional.ity or U r

Duton Controll

•

a

•

•

•

• ( (

U of Proce

ry to incre production ot cotton, oll n fabric lawcote.

\U t. fO't' cotton £ brica pl. ~.

~

rm.

Stitching hinea •

qui \ for pl"Oduot:1on ot ~-t, tor ct.ion ot

cotton t brics.

Bp &Ying

9 §Mller ~Jeote

nnm Part1c1pa-•o. ot 'lotal Total tion as~ ot froJeot lin,.'D 2t PrgJeg\ l!t.L. ff\H lolcl\Jm 1mm ln?Q1t,at ,2,,i

.s Ion. Bed. Zout I!ldU9tio1• 117,)00 41,?00 11.100 176,100 V 615.700 28.6

10 Stork Machirut• 188, 000"' fabt"-1ek 188,000 - -- 846,ooo 22. 2

11 Ion. Gl'-Ofameder1J 148, 000 - '46, 300 194, :300 )58, 900 S4.2

12 leerlandta 90, 427 -- - 90,427 143,887 6:,

1S 1\ 1'1J gen 10,500 148, 400 - 1.sa,900 631,950 25

18 Date,a Oepro 68,ooo - -- 68,ooo a1,6oo 83

2) Rollandae ~.X\1el 104,712 -... 13,000 117,172 152,522 11

24 'l'. t . M • .A.. 22,.SOO - - 22.soo .; 22 • .soo 100

2.S Tan 'flisdngen 95, 117 - -- 95 , 11'1 " 71?,717 13.:,

844, 616 190,100 ?6,400 1.111,116 J • .S?0, 776

..

Letter •2, EUil&.

Jletherlanda labaasy 1470 Euclid Street 11.v. Washington 9, D.C.

Gentlemen: !ttent1op; Mr, J. Grooters

Loan 1o. 15 g

February 26, 1953

We acknovledge vith thanks receipt or your letter reference

lfo. PJ./2lfl or February' 21, vith which you encloeed the progress reporta

on the above nentioned loan for the quarter ended Deceaber 31, 1952.

Vi th reference to our letter Ko. EU/8ll ot Septeaber 18, 1952,

it would be very helptul to us it, in tuture, you voul.d address

correspondence 1n this coanection tor the •Attention of the Department

or Technical Operations."

PT

.,..41J.. Jones DepartlleDt 'Tor hc'fnca1 Operations

0 -·---------

•

FILE COJPY .,

•bru&r.J 26, 19$.3

' .~. Dear • Poathuaai . ~

?our 1ett«r 0£ Febru.ai7 20: 1sr.J3 reac d • ,.eaterdQ' and I lliab to thank :,ou for it. Alt.hough we at t.be Bank haft had a general idea of the acope ot tba d1aast.er oa:uaed ill the etherlanda by the fioods and sta , 70ure is tl:118 tiret compreberutiYe account we haw re~.., do! the daMge sutfered b7 your country, and l eatl7 apireciate your thougbttulness 1D wr1 ting to about 1 ~,. All ot us here feel p-eat .,-apathy tor the inhabitants of tb.e strickeD south-we.tern proTinces and watch with • ation tbe aplri.t in wllich the Dutch people hue set out, repair the damage .

It was ve:rr kind or you to ba11e taken ~ tia to tell ua about the ettect. ot the dl.saater1 on the compani •• usociated with our loan to the Heratelbiank. e knew that the indust rial potential of the etherl11nda had not au.ttered aerioua physical damage, but it 111 VeJ:7 encouragin.g to haw tbe spec1fi.e intormation on the Yarious companies which your letter comeya.

Let• exirese t.he hope that tihe damage in the sou~h1Ut ern. irov1noes will be epeedilyr repaired and tbat tbe consequent setback to the Dutch eco1110mlc reco.eq 1lil1 p-o.w w be abort. ·

• J . F • PostJmma Uaatachappij · ot .

Financier! Van Bet lation&L Heratel 1.v. ·4

Tbe Hague t., Betberlanda •

YOUffs?;, 1. s. ~ . ar ..

eet.or ot' Operatio.its urope, Africa and Jnst.ralasi.& ....

• -

\..

cc: rC.opy circ,ulate.d to Technical Operations Working Party members with incoming letter

J .... ~ ... •

Anne· to Herstelhank Letter of 20 February y153 .

For attention hr . Hoar .

l'-IJi~~

~~;:;rt. o~~..>t0J., :.i..i ~~ \)~

z Het rampgebied Zuid- Wes\ Nederland <Stricken dr~a 5outh_ W'<:::Jt - Nethe rland<:>

onder water inundoted

droogland dry lond

} direct getroffen gemeente

~ directly stricken mvnicipalit ie~ ~

BELGIE

C. L S. 39 . 53 1.2:n

...

MAATSCHAPPIJ TOT FINANCIERING VAN HET

NATIONAAL HERSTEL N.V.

K/234- vB/,V .

International Bank f~ Reconstruction and LJ~vrJtoprrent, 1818 H. ~treet N.w.,~ WASHI1 GJ:ON 25 Li. C.

For attention

Gentlemen,

'S-GRAVENHAGE, 20 February 1953 Kocuccrdiik 6 T clcfooo 183890/98

It is only now, nearly three full weeks aftnr a aost cruel blow has been struck at our country and others by the elements, that we are able to see this disaster in its proper perspecti;e 3nd thst we have su.fficient inform9tion available to eive you an overall picture of the damage suff ered by our country. Full details ere not yet at hand but we believe it of some use to you to try and giva as reliable as possible an account in view of the many confusine reports which have follo·,,ed the first few days of relative disorder . '1he fi ~ure · given n .. ust, however, be considered as rou h estimates vhich need correction .

It is the South \,est of the Netherlana~ which has haa to bear the full brunt of the damage . Darrage elsewhere wa~ limited to the ordinary damage which follows in the wake of exce1tionally hi ,h winds , be it of a more severe nature than usu6l. Some seaside resorts such as Scheveningen and uandvoort suffered quite soms damage but of rAlative sli ght importance as compared to the cat~strophal size of the damage in the oouth ,est.

On the enclosed map you will be able to see which areas have been inundated. lhe total area directly stricken reached about 251.223 ha. ~he loss of life was heavy and reached nearly 1500 . ~eshall give more det~iled figures of l.he extent of the damaee and of its expected consequences later on in this letter.

~he first measures which were taken on February 1st to deal with the serious situation which had arisen over a wiae area haa to be of a local character in view of the fact th.::t means of communication were destroyed for the great'3r part . It wa E only after a somewhat clearer picture of events could be obtained that the authorities could take a hand in centrally organising assiftance .

~he first phase of assistance which took about a week was concentrated on saving those which were still in dan er from the fioods, marooned on roofs and even trees and telegraph ~oles and i~olated in threatened areas. 'lhe secona !"hase , hich aimed at achieving emergency repairs of communication and dykes begc.n when the first phase wns not yet completea. It w~s due to the trereenaous work of civilians and member of the services alik8, assisted by aid fron abroaa, that 3 much greatP.r cata strophy could b ~voided . 1he thira phase which involves recon-

-struction-



- 1-.

'S-GRAVEN HAGE, ?Q Februarv Kneutttdiik 6 1 9 5 3 • TclefooD 18~/98

struction cf the areus and rehabilitation of the Jictins has begun on a srr.all scale ana is being planned further .

~he fact that this disaster wil: have considerable repercussions on the economic 1 ife of the Netlwrlands need~ no fu1·ther emphasis . '1·he aerea s damaged were for the ..;rea ter part a gricul tura l where few industries were e;,tablished . It is only on the bo1·ders of the areas afflicted that niddlin? anc larger indurtrial undertakings were situat~d !nd therefore affected . ~he ~reater part of the enterprj_ses ct~ma,sed however h:we resumed proauction and our industrial capacity is hurdly affected . J.n estiwate of the damage d.one to indus try has evaluated the consequent decroa5e of exports at 150 million guilaers . De~truction has not affected 1~ of our industr13. ca bCity . We must however take into account th3t some firms have h<e1d diffirul tv in ~aintaining full production as a large number of \Orkers we · assistin~ with salva .e 3nd rescue work and supplie: Yere delayed . Legrettable is the fact that losses o1 foreign orders either placed or intended have occured BE a result of the news of the floods . In many cases stocks have sufiered through water .

It is also feared that tourist traffic might suffer , on the one hand through loss of accoruoaation and on the other hand for psychologic31 reasons. Everythin~ is being done t~ reassure foreign visitors 2nd encourage the~ not to alter their pl~ns . ~econstruction ana rerair of hotel acromoaation has been t3ken in hand .

~ total of ebout E6 . 000 people has had to be evacuated from the strickAn and threatened areas . 1he offer for accomodntion proved reore than sufficient ana apart from organisational di1ficultigs no graat problems had to be faced . lhose evacuated were kert as near as possible to their former homesteads in order to give them the feeling that they are only temporarily removed . It is feared ho~ever that a few of the ~oloers will not p~cvo reclaimable owing to their precariouz pofition which ~ould not warr~nt recleiming . It was found difficult in many cases to persuaae reople to part from thei~ few belongings as many had had previous e·rarience of evLcuatjon auring the war and of the lo~~ of al: possessfions . ~he authorities and the Red Cross ha ve c ordinated all social assist~nce to the victims and sufferin3s have been allevicited by the great generosity s:hown at home anc abroad . Jt sum of nearly 50 milJ1on guilder~ ha~ alrec..dy been collected to give a~sistance .

~e~herlancts agriculture has suffered a severe blow as 133 . oco ha . cultivated soil hc:s been inundated being ) . 7, of the total cultivated area in the i.etherlnn6s. '.Lhis cultivated soil can be subaivided as fo1lo~s : &2.000 ha agricultural land i. . . 91:, oi Netherlands total 41 . 0CO ha r3sture land i.e . J .1 ~ of hetherlenas total 10.0CO he horticultural land i . P . 9 . 4~ of Netherlands total.

1he loss of ~tocks of product~ cannot as yet be evaluated

- but is not -

MAAT.SCHAPPIJ TOT FINANCIERING VAN HET

NATIONAAL HER.STEL N.V.

- 2 - .

'S-GRAVENHAGE, 20 F'e brua ry Kneuterdijk 6 1 9 5 3 . Telefoon 1~990/98

but is not expected to be very heavy as the greater part of the old harvest had been shippea . Damage to seeds and plants will in many cases prove irreparable .

Cattle and livevftock losses have been very ronsiderable . 1he Louth West ' £ figures relating to these were :

bei'Q.Ie fl2.9as ~~th~total estimated los§~~ cattle milch and calf cows pigs live stock horses sheep

102.000 41. 000 40.000

3SO . OOO 13.500

9 . 000

3. 5 2 .8 2 . 2 1. 6 5. 1 2 . 4

· 25 . 000

15 to 20 . 000 100 . 000

1 . 500 2 to 3 . 000

Final fi1ures are not yet available. A disadvanta~e of the evacuation of the remainins part of the cattle and the livertock is the fact that the likelihood of the spreading of diseases has been greatly increased. On some islcnds los:es have amounted to as serious a iercenta ge as 80~(; to 901- .

Al though the supply of foods tu:f'f s and ralJ materials to the flooded area proved most arduous at first, a satisfactory flow of these vital needf is nm,, ensured . For some cate.:;ories of vegetables ( i.a . potatoes and onions) mayimum prices have had to be fixed as the stricken area was a large proaucer of these commodities . Damage to house·~,farms and agricultural machinery has been considerable .About 1~ . 000 houses and farms are still und8r water and it cannot yet be ascertained how heavily they have been damaged, about 5.000 houses ana farms have been damaged and hundreds of houses have beAn totally aestroyed . Four t o five thousend tractors ana other costly agricultural e 11uipruent disappeared under the waterrand salvage work has alreaay begun .

the aaministrative apparatus which was used to pay out war damage indemnities ··1111 now be used to pay the flood indemnity . A first erergency payruent has taken place whilst aefinite arrangenPnts are e,pected to come into force within short . ~he Jovernment has already intimated that integral indemnity is not to be e)pected . '1'he disaster fund has been able to organize a first payment whic'. has helped to alleviate immediate hardships .

Agricultural exports are bound to suf1er owing to the damage to the flood areas which were known as "the garden of Holland" . 'ihe influence of salt water on the soil is disastrous and for those areas which are at present totally under water it is eYpected that/one year will elapse before production can be resumed . 1he aevastated areas had a total year production of l53.ooo tons of potatoes of an excellent quality , reafon why a large part of this production used to be eyported. Exports of rotatoG~ have had to be stopped at rresent . The dreas also produced large quantities of sugar beet and onions, the latter also for export. 1he eyport of dairy products is also bound to suffer a set - back. Exports of milk to the Am~rican forces in Germany have already had to b<:_ curtailed . ~ /at least /" - A rough

" . MAATSCHAPPIJ - 3 -.

TOT FINANCIERING VAN HET NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, 210 February

Koeutcrdiik 6 1 9 5 3 • Tclcfooo 18~890/98

A rough estimate of the currency loss which might be incurred through the flooding of land under cultivation, arrived at by comparing the area flooded to the total Netherlands area under cultivation, by taking the loss at one year ' s production and eYports rou~hly b~t conservatively as one third of the total production of' the are, c, :;ives

, ' us a figure of about one hundred million guilders. Decrease~ nf the ~ 1954-1955 proauction should also be taken into account. ~he loss of

dairy production ~annot as yet be evaluated . 10 these must be auded the losses incurred by typical local industries such as for eYample the oyster trade which was almost entirely producing for eyportz. ~he flax inauctry also suffered most severely in its production of ra\~ mnte:rials anci also to ~orr-e eytent tn its indu~trial installations.

Last , out certainly not least, treffienaous aamage has been done to our dy~es and also to our natural sea defences, t~e dunes. 0f a length of 1100 kms which defends 6eelana &nd the ~outhern Dutch islands about 500 kms have been seriously dama~ed whilst it cannot yet be precisely ascertained to what eYtent the reuainder has not been undermined. No reliable estimate of the costs of repairs and strcngthenin1 of our sea defences is yet available but from tha fig~res given can be seen that the amount involved will prove enormous. Iw~ediate study is being made of the possibility of connectiri the island and thus shutting off the sea arms . 1his possibility had been stud"ea befor~ and further research is be in_; made . ,,hen \'e .,..ealize that he aepth of some of these arms reaches 30 to 45 meters ana that curre ts are powerful, the tremendous task involved bec0m~s obvious. A advantage of such a scheme would be the fact that the inc-re a sing in lue nee of salt water on the le-no could be met effectively.In the me nwhile repairs and reconstruction ras been started on~large scale ond un~ess a new disaster takes place tr3 existing emergency aefences shou d be able to

~ safeguard the country from further damage . Estimates of the total loss to the country involved vary from

1.000 million to 2.000 million guilders but these figures cannot be considered as sufficie~tly reliable . ~e hope to be able t ~ive you more reliable figures within a few weeks.

Finally we are gl3d to be ab~e to report th~t losses incurred by a few of the loan beneficia1ies were small. Jnly a very few of th~ enterprises were situated in the affected area and forturc1tely damage was limited . (Project XX:V). De Schelae at Vlissingen have been very fcrtunate, although the town of Vlissingen suffered severely the plant only sustained relatively slight dama 5e thanks to a great effort by the whole staff. 1he plant at LJOrdrecht did have some damage. ~ransport to and fron Vlissingen is very difficult. (Project XII) t-.9erla nd i-u suf ferea storm ctarr.a ge to one of its warehouses, the rcJf of which was blown off . uarr~ge to the proaucts was

- l:i.Pii ted -

4

MAATSCHAPPIJ - 4 - •

TOT FINANCIERING VAN HET NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, :?0 February

Kneuterdijlc 6 1 9 , 3 • Telefoon 18~/98

lir ited. Loss incurred about/ 80 . 000, - which was covered by insur9nce .

(Project 4). Vondelingenplaat wa., fortunate in only having some of its surrounding grouna flooded vJithout damage to installations .

(Project I) . Vereenigde Gla sfabrieken suffered some loss estimated at J 10 . 000,- to cardboard stocks in its Vlaaraingen cellars .

Other\oiise no aamage of any real importance beyond broken window paries and damaged roofs \oJBs sustained by the loan beneficiaries .

~uite a few enterprises have suffered stagn· tion in production owing to the fact that the GUpply of materials was sio ed down by difficulties of transport and that many workers helpea in the salvage and defence work .

We hope to have been able to give you an overall picture of the national disaster which our country has to face just after we were beginning to derive the benefit of OUT intensive post - war effor t.

0.:

Yours very truly,

t £ ,.0.1...,CHA.l-'t'IJl 'HYl I< I1 .iNCI RihG J \,NH~ lA~IOrl L H~tto1LL N. V. ?7 /~L---?)

tR 22

Q ~ w > ,.._ 0 l.l:) s

O') c::

~ e: LA.::

Y1VJ.I0J1VVI' HEif'2J.Er yt·.t:..· l. 0 J. .E. I YI. V J.1 C IE lf D1 C A VJ1 II E J.

WVVJ.'aCHVLI:,J1

J.•Jqoou J8:m,Q <18 r.:u,mc q 1r. Q

,2·C.IfVAF.v1HVCF.'

" .

r

FORM NO, 75 (7- 48 I

IN 'NATIONAL BANK FOR RECONSTRUCTION ANO DEVELOPMENT

ROUTING SLIP

Room No.

3

FOR-Action lni tialinl?

' -- proval Preparine Reply \.,Omment Previous Papers

Filing Noting and Returning

Full Report Recommendation

Information Signature

REMARKS

FROM-

FORM ~O. 5 8 ( 5. 48) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM TO: Fil es

FROM, Joseph Fajans %· SUBJECT: Herstelbank Loan

DATE: January 28, 1953

Dr. Grooters telephoned this afternnon to inform the B,enk of the extension from March 11 till April 30, 1953 of the credit arr ange1d in 1949 by the Herstelbank with Manufacturers Trust Company.

The Herstelbank draws on this credit to make numer ous 1small payments to U. S. suppliers of goods covered by our loan prior to the submission to the Bank of withdrawal applications with the necessary docu~nts.

cc: Messrs . Verheyen Spiro

J FORM No. 75 INTERNATIONAL BANK FOR

(3. 52) RECONSTRUCTION AND OEVE' ~ENT

· Date

ROUTING SLIP

HAM£ ROOM HO.

In.. - . - ./ , .,11~ •. ~ I r ., - -~ . - - , -

'Z+J~ :!.) I 1J

~

Action Note and File Approval Note and Return

Comment Prepare Replv Full Report Previous Papers Information Recommendation

~

Initial Signature Remarks

..__ Fr

ar • lilller:

IJIS.• h a b.:1aw4 Np.\J \o ,CV 1*\\W of' ., •• _. 21., l.?$2 addruMd t.o • Si.ll ,.._ a-. •• ~ ·• QQlll7 ......... 1'a ruai. or e~u1,....t t1naaN4 1bJ tha o.twt --,. ,. ~ lMI.

to an o~aS.gbt. ~ lat.tar bu oal,f DOW NilOIIK "" Dlt'iee ... I. waal 70 1l1U t•eS,n 'tile cllla;r.

Tba tom A&rftMnt -1th .. a. a.nt..l~ ~ tu\ la. gooe. pun,hued 1dt.h 1m ~ .r t.m i.a \lbal1 be UMd •xellldwll 1n t,ha oarrJ'lD& out, or • P"03"ta tor wb1ch t.a1 •• .... ,anla11•• am •hall not - ~d nt.laoil\ tba wr1\\m .. ,at at ~ SMk. A.a la a11id.l.ar itlfrt,&CN lA \m put,_. .. illOald OOMider NqllHl.a "7 ....... f'ic.1.ary capaniu tor pwmlailon t.o N11 ~ 9'1111JIIIJI\ oa a 1adividual. buia. •would~• \Ila~ t,,o h1 msat Neb •- eatWutorll,1. •PNltJillc U.. JIC'OlH\ aa4 tbe equt .. ., eowtng u. ... t.m eq.a1paent. ... 1mw~ iiaaribtal t.m t.ne or optir&1oa la hi• 1\ •• UNd, Md liat,1.q llll1 apNitic ..... tw 1\11 beooa.\ns ooeo1-.. n a £1,wn dali4t. • •uld .i.o •• t.o kDOW to llba tlaa ~Jail\•• o be Hl.d, 4lt llbat. price. Md t• llbA Cllr.NDCJ•

SbOuld t.lle Balk ... ~ that. "" l'fJOda bad bin .... uclwrlffly lD eilr'J7i.1lc o•t. WIit irojeel, t~ wb1cll the7 ta.ad baM ,_... ahatld --1 had aow :bNu• ..,.. on or •blolet..., 1t •nald no1,., ~ OOIINlla., 91.~bbol.d U,a eotlilttn\ Gnn•onab1¥• !OU o,u\d •aUon t.o ... .. 0&•111• lhat in tbe put W bot· apHd 1D • fN __, \It tlla Qp0rt, fftll '1llt 'h't-bet'landa ot &"411 t~WOIG Ullidv' ne ot ~ low. In .._ ,......_, howewr1 tbe btno.., Qppll.S 1111 nt. tun 1.atoraa\l011 1ffl1.N ~ • poa1t,~- decia1oo.

Ah~ ........ ~!"llillftt. of OptNU°*I

ope, Mrica ad Aut.ralula

Cle.ved with Legal and hclmical Operationa l»pia. ,.,,,,.,,

ccs Klas UOreq., MNara. Or~ Verbe,ea

~ •

..

•

c: • (2) /

,~ 6, 19 i3

ulJ' 26, 949

,930,ooc.oo 4,m ,BA,06 1,6.il,,1.19.14

lt,;gW!ljM.ttctl' -

C

• mit1c1-

Letter Ng. EU/l.08Q

Netherlands Eabassy 14 70 Euclid Street Ii .w. Washington 9, D.C.

Gentlemen: Attention; Mr, J, Grootere

Loan lo. 15 NJ

December 3, 1952

We aoknovledge with thanks receipt of 7our letter referen~e

FA/1983 of December l, vith vbich 7ou enclosed three copies of the

progress reports prepared by the Herstelbank tor the period ended

October 1, 1952.

We a.re glad to be able to tell you that ve no longer find it

neoessar:, to receive three copies or these progress reports; one COPf

will in future be sufficient for our purposes.

Ver, tru.17 yours

Norman G. 4'01:iait

Department ot Tee rations

PT

r

31, 1952

toof ~ 26, 1949

.t.naiLlJl:t or Lomu &.:w1llnt WithdnNnt Undiow.m Bahmce1 Of :!blah Irr~ Conitl1t I -

loan. ft18 noxt qua.rtor]¥ report.o

t Dato r 1, 1952,

CCI Ml- . C (2)

Bfflp!roc

October JO, 1952

Maatschappij tot Financiering van het Nationaal Herstel N.V.

The Hague 'l'he Netherlands

Gentlemen:

Subject: Loan IB 15 NI IV Ammonia Oylindera

We have been inf'ormed by your Representative in Waahington that you intend eubmitting an Application for Qualified Commitment on Category IV in the amount of $9,000.00 which amount represents an increase in price of the 3,000 Ammonia Cylinders for which we have previously iaoued our ~ified Commitment• in accordance with your Application, 1296-1-l and 1302-1-1 in tha amounts of $23,976.oo and $119,880.oo respectively.

As this increase in price ia due to the fact that the Cylinders are to be of Alloy Steel instead of Carbon Steel the Bank is willing, on receipt of your application in its proper form, to issue its Qualified Commitment for $9,000.00.

It is noticed, however, that the Supplementary Breakdown List of Goods for Category IV of the List of goods forwarded to us by your Representative in Washington with their letter of October 27, 1952 fully allocates the amount of $322,350.00 allotted to thia Category, consequently if Applica tions coverinc all the item, detailed on this supplementary breakdown list are submitted to the Bank, Category IV will be overdrawn to the extent of $9,000.00, which will necessitate a transfer of a similar amount from the Unallo.cated Category XXVII at the time of the next change of the List of Goode.

JRigby:ea

Very truly yours,

INTlilBllTATIONAL l3ANK FOR BEOONSTRUCTION AND DEVELOPMENT

Henry W. Riley Assistant Treasurer

cc: Mr. Soutendi1',k (2 copies) Mr. Verhe)!en Mr. Street Mr. Fajan1 ../

FORM No. 57 (5. 48 )

TO:

FROM:

SUBJECT:

1NTERNA110f\ BANK FOR RECONSTRUCTION AN. JEVELOPMENT

OFFICE MEMORANDUM The Filec DATE: October 14, 1952

B, P, Spir:(:\ Herstelbank\\

Mr. Schlingemann1 Sub-Director of the Herstelbank, was

bro~t to Mr. Ripman by Mr. FaJans. He discussed the general

situation of the Bank financed projects and the principal

causes of del~s in completing these projects. These causes

were given as del~s in deliveries of equipment from the

United States and Switzerland, changes in plans on the part

of some of the companies involved due to changes in outlook

for the sale of the products manufactured and weather conditions

during the past two winters. All these causes have already

been known to the Bank from the progress reports submitted by

the Herstelbank.

BPS/ab

15~0

Files October 10,1952

Benjamin P. Spiro

Netherlands - Herstelbank - Position as of Sept.J0112z2

Date ot Loan Agreement: July 26, 1949

Amount of Loan: Amount wi tbdrmm: Undisbursed balances of which irrevocably coomi tteds

7,9.30,000.00 S,9341207. hO '1,995,792.66

• J .a. Scblingemann, sub-Director of the Heretelbank, made a courtesy

call to the Bank and discussed With the Financial Division the principal

reasons for the postponement in expected coq>letion dates o! certain projects .

~c a r ons \ r:, all lcno\..in to th l3e.nk f'rom the r~ r rt aubolttcd

by th Har telbank ond ha:\f b en noted pr viously •

cc, • Cope(2) (

BPSpiro:gm

14

11

QI • • •

-

..

to 1, 19S

.oo.

t

Files October 10,1952

Benjamin P. Spiro

Netherlands Ships Loans - Position as of Sept.30,19,2

Date or Loan Agreement: July 1$, 1946

Amount or Loan: 2 million Amount witbdrawna J.2 million

Supervision or these loans progresses satisi'aotoril.7.

CCI Ur . Cope (2) (

.l,;.t'Spiro: gm

~ ·.1 NC'. 57 (:. 48 . INTERNATION11._ BANK FOR RECONSTRUCTION ANL JEVELOPMENT

OFFICE MEMORANDUM .--TO: Messrs. Ripman, Rutland and Street (3) DATE: October 2, 1952

FROM: Robert W. Cava.na:ugh

SUBJECT: Loa.n 15 NE - Herstelba.nk (Netherlands) Revised List of Goods

The BaDlc bas confirmed its approval to a Revised List of Goods

under the loan to Herstelba.nk dated July 26, 1949. (Refer Borrower ' s

letters of September 18, 1952.)

Accordingly, we have completed the indicated transfers on our

books as shown on the attached schedule.

Kindly make the necessary adjustments to your records.

Attachment f -

15D1

.,

IV.

v. VI.

VIII.

x. XIV.

:X:Vl.

XVIII.

xx. XXI.

x:£:v.

XXVI.

XXVII.

XXIX.

y

LOAN 15 NE - HERSTELB.A.NK

Cat egory Breakdown of Revisions to List of Goods

Dated September 18,

Previous Cate~o:2 Amount

Chemical Project (Ijnuiden) $ 177,350.00

II II (Hengelo) 227,500.00

II II (Vlaardia.gen) 106,500.00

II II (Bud.el) 293,641.70

Machine Project {Zwolle) 82,000.00

Electro-Technical Project {Nijmegen) 151,700.00

Paper Project (Maastricht) 116,300.00

Textile Project (Almelo) - 1,963,140.00 II II (Helmond) 122,500.00

II II (Belmond) 600,000.00

Gear Manufacturing Project (Vlissinger) 350,000.00

Textile Project (Enschede) 215,000.00

Unallocated 2,701.92

Textile Project (Gelderma.n & Zonen) 273,100.00

II II (Stoomwevery te Nijverdal) 1(1j ,269. 75

$4,786,703.37

1952

New Transfers Amount

$145,000.00 $ 322,350.00

3,100.00 230,600.00

23,511.69 Dr. 82,988.31

650.88 Dr. 292,990.82

32,000.00 Dr. 50,000.00

439.41 Dr. 151,260.59

44o.48 Dr. 115,859.52

14,000.00 Dr. 1,949,14o.oo

6,000.00 Dr. 116,500.00

279,(1JO.OO Dr. 320,950.00 -

53,500.00 Dr. 296,500.00

11,725.49 Dr. 203,274.51

292,956.37 295,658.29

17,300.00 Dr. 255,800.00

2,438.42 Dr. 102,831.33

$ 4,786,703.37

Treasurer 1s De~rtment October 2, 1952

MAATSCHA.t'PIJ rcn FINANCIERI NG VAN !GT


International Bank for Reconst ruction and Oevelopaent

1818 H Street, N.W. Washi ngton 25, D.C.

GenUe•n:

1470 Eucl id s treot, N.w. Washington, D. C. September 18 , 1952

Referring to the Loe.n Agree•nt dated Jui, 26, 1949, between· International Bank tar Reconatruction and Developll8nt and Maatsch&ppij tot Financiering van bet Hationa&l Herstel 1.v., ve request your agree•nt to the &11endlllent ot it.a IV ot Schedule l thereof as tollows,

IV - .Q.9ea1.cal ProJ,ct - 11.y.MaatschappiJ tot Exploi Yll!! :!.!!l l~11ovengy1e9

Nev equipant vill be acquired and installed at the Company's plant at IJaiiden in order to increase the plant's tertili-ser production capacity troa 16, 000 tons to 51,000 tons ot nitrogen per annua. J,000 additional aneydrou.s &JIIDOnia cylinders will be purchased in order to step up export or this chemical.

Please confirm 1<:Alr agreement with the foregoing by signing the toni ot confirmation on the enclosed copies of tbi, letter and returning thea to ua.

Approved: KlNGDCJ4 OF THe NETHERU.NDS

-7

By ~~~ ~o~ Repre~entative

u Contiraed: Date: September 18, 1952 INT~NATi ulkL B.\NK FOh RECuNSTRUCTI ON ANu W'/l...,~ ~ IIT

by , h::;~-- ~O&r

Loan Director

Very truly yo·.1rs,

MAATSCHAPPIJ TCJr FI Ni1~CIERI~ VAN I-BT NA Tl ONA.AL H..::R C,'i' •:.u N. V.

~ r ~~ . _

by

MUTSC&PPIJ TCJr FINANCIERING VAN HET


Int.rnational Bank torr Reoomtruction and Dffelopamt

1818 B Street, •.v. Vaahinatoo 25, D.c.

1470 Euclid Stre•t, N.W. Washington, D. C. S•ptellber 18, 1952.

let•rrin& to the Loan .lll'M•nt dated Jul, 26, 1949, between us,

there 1a attaclwd heNto a reTiNd list or 1ood• to be purcbaNd out or

the proceed• ot the Loan to vhioh 7our a,re ... t i• Nq\leated in accordance

vi th the proviaiona or Secti.~ l ot A.rticl• III ot -1.d Loan Agree•nt.

PleaN contira 7ou.r a,rMIIIIDt b7 aipiac the tOl'll ot continati~

on the encloaed copies ot t,b.js letter aDd retl1rniJII the• to u.

Contiraeds Dates Septellber 18, 1952 Il'l'IUATICIW. BAIK rca UCCJISTIUCTI CII ilD JSVSLCl'IIDT

·-~ I..o.a.r Lou Dino\el'

Yerr truly 70VZ•,

KUTSCBAPPIJ Tar nMABCIDIHG Vil BIT llTIONilL HER3!'KL N.V.

r .

I

REVISED LIST 01 GOODS TO BB PUBCHASED WITH PROCEEDS OF L'OlN FROM

IITERIATIONAL BAB FM REOONS'l'RUCTION MP PffliLOPMQT

(Jaount uprea•d in United Stat.a Dollara)

Good• - 11.v. Vereem.gd• Glut&bri.eku.

lquipa nt JllltOeaaar,- tor aodendMtion ot glue taotorT 1Dollld1Jlc pn•N•, annealinc &Del poll•h!Ac apparatu, bottle tol'IWIC ucbiM• aad tranaport 1nat.&llatioa

III - st&atlllijnen.

a. Phenol Plut. lqu.11=-nt Deoe•Arr to baild a nev plant, inoludinc a •l'Ollr7 boiler, •anr1nc 1natraent• and etainleH at.el.

o. kpbtbal.•• and anthrac•• pl.allt. &notion ot a per11UMnt plant tor the produotion ot naphtal•• and anthraoae vith aodernisation ot the pNNDt eqaipNDt inoludinc cent~• and •aauring inat?"Ullenta.

•• Potuaia terro-oJ'Udde plant. lqaipaent to modernise and 1ncreaae the production ot potuaia terro-07Udde 1ncl11dinc •anriDI 1natruaenta.

t. lllpr0Ye4 S.abord prooeaa tor h)'dropD wlpbide NaOY&l. lqu.ipMllt to aodllrnise dd 1.norea.ee the production ot wlphurio aoid includin, •uurinc inatl'\aenta and ataiDle•• ateel.

I• Phtallio anb7drlde plant. lquipment neoe•N.17 to erect a nav plant producing phtallio anhydride including valwa, meawrinc inatr.imenta and en.porating pana.

Total. Amount to be purcht•td

• 413,250.00

$ 413,250.00

-2-

Porvard • 413,250.00

b. Soda pl&Dt. Meawriag iDatruallt• and other equipaent nece••U7 to er.ct a nev plant tor productioe ot aoda ash

j. Cob nant. Engineering and equipHnt to expand and r.-equip a oob plant and erect a nev one including apecial iron parts and parts tor O'fen aachiner'7•

t. Urea plant. MlaauriDg apparatu MOeNaJ'7 to ereot a nev plant tor produotim ot Una.

1. LP. Central statia11. v..i: .... s, teedv&ter and •teaa regulatiag inat.allation• and turtber eqa.1.JaaBt to incre .... the power ..-ratbag oapacit7 of & a1ne in Lia'bvce

•• Fertili•r plut • lquipaent including •tainleaa steel and •••urine 1.utraenta to aodendu and expand tertili•r produatim.

n. Miaoellaaeoua aad oont1J119D01••• (subject to apprOYal bJ the Bank)

o. Cyclobn:eaoD plant. lquipaent needed tor a..., plaD\ 1.noluding ••wring inat~t• aad aalt bath.

p. Caprolactua plaat. 1q111.i-eat needed tar a.., pl.Ult iDoludia« .. anrtng ~ata aad di•tillatioa apparatu.

Cl• Oqpa pl.Ult. llqaipaeat ••!led \o _..mi• a plaat lllallldilll .....UC • ud OClllt.Nlllac 1-U ,,. 1,w,200.w

• , .,., • 10. 00

, •

- 3 -

IV - N.v. Maatschappij tot Exploitatie

V

VI

van Kooksovengassen. various a pparatus am material. necessary to irorease the prodluc-tion ot the several department:, contribut~ to tertilizer production. ~us ammonia cylinders toir export purposes.

• N. V. Kon1nkl.ijke Nederland.sche Zoutindustrie. Equipment to expand saJ. t, chlorine, eydrochloric acid and other chemical production incluilng cent.rituges, compressors and coolers.

- N. v. Fabriek van Chemi.sche Product.en Vozxie.l ingenplaat. Autoclaves, compressors, dryer~,, pharmaceutical equipaent, !ree2:ing unit and other equiJ:Jaent necesf1ary to aodernize and expand a plar t , f aniline dyes.

VIII • N. v. Kempenscbe Zinlan~atschapptj.

X

F.quipnent necessary t o moaerniz,e a plant producing zinc blends .;1.nd

expand production includin6 one• furnace, blower and catalyser.

- Machine!abriek Gebr. Stork ~ ro. N.V. Boring, tapping, turning ,.nd arillin6 machines necessary to comp] ete a new installation speci alized in t.."le produ · tion of diesel aotars.

XI - N. V. Koninklijke Nederlandsche

.Ill

Grof' smederij • Verti cal turret lathe aoo billet shears cut t in ~ machine nee es .. u·:;- to expand a plant producin6 er uucs.bat ts .

- N.V. Draadindustrie "Neerl -.r iia"• Fine .are drawin~ machine~ m d accessories to modernj te a vi.re pl.ant.

Forward t l,9S7,!6o.oo

•

I

•

322,350.00

230,600.00

292, 990.e2

-f ..., 0 . '

-4-

Forward • 3,0.39,326.99

IID - If. V. Hollandsche Draad - en label.t abriek. Extruders and other equi1:9!1ent necessary to modernize the pro-daction o! rubber cable ~ d manuf'ac-tllre saran am polythene coated paper. • 240,000.00

nv • Willem Smit & Co's Trans!'o,nu.toren -f abriek N. V. F.quiJ11ent, includ.ing wire enaael aachines, welding machines, rota17 shear llid apparatus f or hi gh voltage testing. • 1s1,260.S9

XVI • Ionink:) 1jke Nederlandache Papiertabriek. F.quii:a,mt tor the modernization and i.Jlpl'OT-nt of the paper miaking process or a paper mill. • 115,&.>9.~2

IVIlI - 1.v. a. ten Cate & eo. Spinning, lf8a~ and other ta:t.il.e aachinery tor aodemization and expansion of textile a:111. • 1,949,uo.oo

- Iatoenspinnerij Ba.shone. Drawing frames and other texti.le aachinery for modernisation and in-crease a! production o! a textile a1.11. • 697,hOO.OO

• De Wit' a Textiel. NijTerhei d N. V. Machin~ tor cleaning and d;reinc necee~anr to incna.se prodi~ct ion of oott.on and woollen !abric a and blanket.a. • ll6,S00.00

XII - 1.v. Ion1nkJ1jke WNfeoede:Ntn!abriek C.T. Stork & Co. Jqu.ipaent 1Dclud1n& vindi~,, ctre-ins, *71ng aachinea, l001111 ud p1rna necuaa17 tor a nev 1cotton fabrics factory. • )20,950.00

llII - I. V. Bolland.obe TuUeliDclutrla. rou- 07linder 110ol card an1d • acua stripper a.a1 ... ..- co~.,-1.Jnc equip-... t nec••GT w 1-r.ue lad IIOMl'niN wffin& lllll. • 66.612.00

• 6,699,°"9. l C --- -. ....

b -

..

- ' -mII - 1.V. 'l'utiel Induatrie Naatachapp1J

•!pal.doom•• SU toh1ag aobSme nece•ear7 to 1aoriue oatpat ot Wlderwv

- l.f. lon1nkUJb Nl&tacbappiJ •de Sobelde•. lquipmnt tor C11tting and grindiaa apuo and helical IMl"• tor achim plant and ehipyvd.

DVI - 1.f. Spil1Der1J Ooat."•14, :&nacNCS.. lquipant tor production ot T&rD8 incl\ldina ring •P1.zurl.ne truae ud high clratt aJ)M(l tram•

DVII - Uu.llocat-s.

DVII I - St.oo..phmer1J t. 11JTerdal I. V. lquip•nt tor the productioe ot eottcm tabrios including lapwindere, fr-a, nit®-e.

IIII - B.P.Gelderan & Zonen I.V. Spimdng and waTi.Dg eql1i.pant tor production ot 11IJ'M and tabric.

ID - S\oaa,nwiJ t. 11Jnrdal 1.v. '!wnv toar '°" loom tor vean., rqon tabrice, repe w1b1r• tar bleaohinc plant ud etrippillc acbilM• tor VM•ial tuee.

total

•

•

• •

• •

• •

6,699,049.10

9,411.78

296,soo.oo

203,274.Sl

295,658.29

67,474.99

255,800.00

102,8)1.)J

7,9JO,OOO.OO

....

FORM No. 58 ( 5- 48 I

TO:

FROM:

SUBJECT:

\N $- ~ ~ INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Mr . A. s/.~FFICE MEMQRAND~~' September 23 , 1952

Through 1':r~~ R Cope L . Barany;ai_): J'

Herstelba~ · an J. Attached for you ignature is the suggested reply to Mr . Posthuma' s

letter of September 16, 1952 .

Our previous letter on the same matter addressed to the Washington representative of the Herstelbank, Dr . Grooters , is attached for background information .

September 24, 1952

Dear Mr. Posthuma: / Thank you for your letter of September 16, 1952 regard

ing our participation in the financing of the Ten Cate stocking project. I have, I must ccni'ess, a good deal of sympathy with the case you put forward, and I admit the force of the argument that ~lon stockings are no longer a lu:xury ( at least in Western Europe) and that the project would help to save dollars.

However, the Bank, for better or worse, has to give weight to public relations considerations. We are enjoined by our Articles of Agreement to deal first with the most useful and urgent projects, and, whatever the facts, it is sometimes hard to convince the "man in the street" of the priority of production capacity for nylon stockings.

I am sorry that it was considerations of this sort which made us feel that it would be better if we did not include-this project in the loan, and I hope that you will be able to obtain the finance from other sources.

Mr. J. F. Posthuma M.aatschappij Tot Financiering Van Het National Herstel N.V. Kneuterdijk 6 The Hague, The Netherlands

Yours si7ly, A. S~oar

Director of Operations Europe, Africa and Australasia

SRCopesLBar8.I\Yai:JFajans:hlk I" ,

~ cc: Dro J. Grooters

JFajans:hlk

September 18, 1952

Dear Dr. Grooters:

I a:n r eturning two copies ot the rerlsed list of

goods and two copi es of the amendment to the schedule

ot projects of the Herstelbank loan duly confirmed b)

the Bank.

Enclosures - 4

Dr. Jan Grooters Asst . Financial Attache Netherlands 'Fcnbassy 1470 Euclid 5treet, R. w. Washington 9, D. c.

Yours sincerely.,

Joseph Fajans Assistant Loan Offlcer

FORM No . 57 ( 5- 46)

TO:

FROM:

SUBJECT:

N~-~.~ IONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM Mr. A. G. Hoar thro Dr. L~ Jtaranyai and Mr.

Joseph Fajans~~ -~~ Herstelbank Loan~

s.~ DATE: Sept ember 18, 19.52

1. Attached, in triplicate, are the revised list of goods and an amendment to the schedule of projects. Would you, please, sign all six copies and return them to me.

2. The changes which will come into effect upon the signing by you of the attached documents are based on requests received earlier this month from the Herstelbank. They have been discuescd with the Departments concerned. The list of goods shows revised (mostly reduced) allocations for a number of projects and the resulting unallocated balance of about $3001 000. The amendment to the schedule of projects broadens the scope of one of the projects by including the purchase of 3,000 containers which will make possible an e.xpansion in e.xports. This transaction was infonnally approved by us last August.

Attachments

I@tter No, EU/81Ji September 18, 1952

iu.tocbappij tot Financiering van bet Nationae.J. Harstel N.V.

Kneuterdijk 6 The Hague, The Netherlands

Gentlemen•

It will be appreciated it you \1ill be kind enough to tuTallge

for all future reports relating to loan No. 15-NE to be addressed

for the "Attention of the Tecbnical Operations Department".

Yours very t~

Hugh B. Ripnan

NGJonesiemk

FOR M NO. 59 (3 .49)

COMMUNICATION:

DATED:

TO:

FROM:

SUMMARY:

FILED UNDER:

CROSS REFERENCE:

HERSTELBANK LOAN


Letters

September 18th 1952

I. B. R. D.

Herstelbank

One letter requests amendment of Item 4 of schedule 1

of loan agreement, and the other gives list of goods .

Secretary's office

Herstelbank Loan

MAATSCHAPPIJ

\ TOT FINANCIERING VAN HET

NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, September 16 , 'fl Kneuterdijlc 6 1 9 52 •

Tclcfoon 183890/98 K/1667- v3/CS .

r.:

International Rank for Reconstruction and Development, 1818 H Street iJ.'l ., 1tl a s h i n g t o n 25 D.C.

For attention!~ . Hoar .

Gentlet11en ,

It was with eat disafiEPintment that 11.'e received news from our repres tative 1n ~ashington that you had rejected the Ten Cates eking project . With referenc~ to your letter of SepteMber 5 concerning this matter we may point out that circumstances have changed drastically since 1948 and that most of the reasons for rejecting stocking projects then, have no11 been eliminated . In the first place the necessary raw materials are now obtainable in the Netherlands thanks to your financing the Staatsmijnen caprolactam project which provides the raw material for the Enkalon yarn . \le consider the processing of the said raw material to thP highest possible grade , as is done in this case, to be of great importance . r;econdly what Might have been considered a luxury in 194P and even still in 1949 has now become an articre of ordinary usag_e.

Fina l ly as far as the weak export aspect mentioned in the accompanying letter froM T~r . Greeters is concerned , which according to him11:ls proved another ground for rejection, v:e may point out that the currency aspect is very favourab l e he it only that it is currency saving . In view of our balance of payments position id th the United States it would seem more important to replace costly dollar imports by a product made at home from horne sources than looking for export markets however promi!'ling they may be all the more ,. hen demand at home is far from being satisfied .

'le believe that the abovementioned reasons are sufficient to justify our having submitted the Ten Cate project and we can only repeat that we very much regretted to hear that you were not nreoared to finance this interesting and nromising young industry.

Yours very truly, ~ FirA rcE COLiPORATION FOR J' .. TATI ON1s L R CO TJTRUCTI ON LTD .

/r------~ (J ~ ~ 'tl.4r~~~

C Uf.J

,OL

J1VJ.IOJ1VVI' HF.H'2.LET WA' l.Ol. l1J1VY.CIE1fIJ1C AV~ HE.I.

WVV J. '2 CH VJ, bI'l

L"

.l'l'l000 18~\<)8 l(UCn"Lq If (

,8·CifVAE:t1HVCE'

•

FILE co~[))Y

September 15, 1952

Dear Dr • Grooters i

I am aending yo ::three copies ofi a revised list of goods and three copies or an amendme to the s chedule or projects of the Herstelbank Lo~ Yo will. note that the 11 t corresponda to that. fo1'tfar t, the rlank with your l t.ter FA/1514 oi September 4, except, for the incroaa11~es.a--requested in your l etter FA/1526 of ptember S,c5'r-the allocati on for project V and an adjus mtmt made on the basi.8 of our records in the allocat i for the completed project XV!.

Would you, or Dr. Soutendi jk, k · copies on behalf of the Herflt.elbank Government and return them to me for Bank.

sign all attached d the Netherlanda onfirmation by the

s sincerely,

ff: seph Fajans

Ase· ant Loan Officer

Attachments •

Dr. Jan Grooters Assistant l inanc:i.al Attache Netherlands Embassy 1470 Euclid Street, N. 1. t ashington, D. C •

JFajans :mg

$eptember 10, 19~2

Dear Dr. Groot.era:

Thank '3'0//l :tor :,aar letter FA/1528 or September 5~2.

With regard t.o JOUl" seccnd point. the auk ia pleased t.o ap~ an increase ot fi.3,100 in the allocat.ion tor project V. The .formal amendmnt of the l.1at. o! goods mceaaita.ted by t.bi• increaae will be executed .tort.hv1th. At the same time w vill take into account the otbor changes a~ted in tha tenta;iive list prepared by the Herstelbank as or A~?USt 28. l9S2, and received with your letter FA/.l;l4 of September 4, l.952.

As to Btunshoeve'a enquiry, t.be choice amonz sovcea of supply is entirely" -theirs. The Bank hereby takes note that they intend to switch 3'J7.000 of' equipment purchases f'ra:a the United States to SW:ltzerland. This switch vill not be reflected in e;rq ~ in their allocation, since allocat.iou tor individual proj,,cts in the list of goods a.re only expr~::ted in dollar total.a.

Whether the obl1g .... tion or the Raratelbank ariai.ng .r"rom the PIU'chw.M ot the 4ktuipa,nt in Switsarland will be in Swiss t'r&ncs or in a.ey other currenq vill depend o.n wet.her the Bank vill at the UIIB ot ~nt !ind itself in a position to draw on its SViss franc holdings or vill have to acquire Svin francs vi tb another currency.

We stand ready to makG the 10.' dawn pq.n,.,nt upon submission or a properly docllll9nted \d.thdr-aval application. Since, however, the delivery of the equ1pmnt vould take pla.ce only- tova.rds the end or l9S3, tbe Ba."lk would not wish to mice final pa.yJ1ant to the supplier before tbat date. It is therefore suggested that at. the c:.Losing elate ot the loan, the Bank Jllllce an advance in Swiss fr.anes to the llerstelbank in the uount corresoondina to 90J or the purchasa priee. Thia adYance 'Will have to be dOCWIBDted. &tfter }"l(qarnt bu been made ~o tha $1Pplier.

Dr. Jan Grooters Aseistant Financial A ttadle Netb.arl.ands Embuq 1470 Euclid street., N •• w~. o.c. JFajans/ioog

Yours sincerely'•

ff Joseph fajans

Assistant Loan Officer

Drafted in consultation with Messrs. Ross, Cavanaugh and Street.

cc. Messrs. Cope, Ross, Cavanaugh, Street Miss Morsey

FORM NO . 57 ( 5- 48)

TO:

FROM:

SUBJECT:

INTERNAllOI\ BANK FOR RECONSTRUCTION AN . >EVELOPMENT

OFFICE MEMORANDUM Files

~lphone J.M. de Leeuv

Netherlands - Herstelbank Loan

DATE: September 9, 1952

Mr. Fajans of the Loan Department notified me that the Herstelbank

has submitted a tentative reallocation of loan funds to the various

projects.

The allocation for a number of projects has been reduced whereas

for Project No. IV (Mekog) the amount has been increased by $145,000.

The reserve now is almost $300,000.

In our letter of September 2, No. EU/748 we asked the Herstelbank

for information concerning the new List of Goods for Project XXI (Stork

Weefgoederen). It appears from the above mentioned reallocation that the

amount for Project XXI has been reduced by $279,050 to $320,950.

Mr. Fajans awaits further news from the Herstelbankbefore effectuating

the necessary changes in the List of Goods.

AJMdeLeeuw/agb

1500


NATIONAAL HERSTEL N.V. 'S-GRA VENHAGE, Je ptern ber 5' 52 Kocuccrdijk 6 Telefooo 183890/98

K/1595- Bs/CS .

F.O.L. {DISB.} :_,rp

X.h 1rtyc . _;./ .. 11 Mr. Street _

Mr. Connor I Mr. Verheyen I Mr. 1-::·hoff

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Mr. 1foCc :-tl:yl

Mr. l:()lt::.c I I

FiL- Des ig. :

For attention ll"r . Henry 1 .r . Hiley.

International Bank for Reconstruction and Development , 1818 II street N.n. , Washington 25 D.C .

Gentle"len,

In reply to your letter nr . fU/784 of September 2 V1e have pleasure in informing you that we have sent a revised Breakdown List of Goods of project XXI (Stork treefgoederen) to the l'Jetherlands Embassy on .August 29 .

We trust that the abovementioned List ~ill be in your posse~sion on receipt of this letter .

Date :

I!1f. Re-t. Act .

Ll.LJ-1 I I II ,-1-, -- ·- I l 1 1 ! ,-f - · -'' I II,,-, _ ll I _I ILlll l_JLJD _I II_ILJ

Yours truly ,

rAATSCHAPPIJf}T FI1\TANCIERHTG VAN IICT NATI AAL HERf;r,L N. V.

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September 5, 1952

Dear Dr. Grootann

Thank you tor your letter l"l/1520 ot September , 1952 enololling a letter haa 1'be ._ by vb.1ob the llentelbant uke us to oou!der a projeot tor tba n:peu1on ot a IIJ'l<m at.coting tactor.r. I gather traa the aupportillg clooumelltatioa that the aaomat requind voald be t95,000 and the additiOll&l productioa vould be aold vithill the If ether land•.

I regret to intorm you that the Bank cannot accept thia project tor financing. I1n'eatment ill the hoe!er., unutacturing 1.nduatq ia llOt ot su:tficient priorit7 in relation to other investment opportum.tiea to justify the UN ot Bank funds.

The Herstelbanlc vlll no doubt recall that three project• tor the production ot la.die•' atock:inga were eliainated trom the tint llat ot projects subdtted to the Bank during the earl.7 phase of the loan negotiations 1n the fall ot 1()48. At that tiae Mr. Poatlmlla h1m88lt shoved full understanding ot the Bank's reasou tor rejecting tbeae projects. y

I also vish to thank ,-ou tor 1aar letter P.6/1.Sl.4 ot September 4, 1952. As I eaid in our connreation this a.ttenaoan, ve vlll not exeoute 1111Nd1atel.7 a toN&l mendllent oft.he eohedule ot projecta Ulc1 the list ot good• but vill allov a little tlme to bear traa the Haratelbank u to how they pi,,poN to w,e the tmall.ooated balaaoe ot approximatel.7 $300,000. Let• uaure 7a11 tbat ve stand read,y to oonalder any suitable projeota vtdoh the flart.telbaak a1.gbf. vilh to aabdt tor our .-ppl"Oftl.

Dr. Jan Grootera Aaaistant Financial A.ttacbe lletherlaDd• labuq 1470 Buol.id st1'9et, B.W. Wa.ahiDgton, D.C.

JFajans/ eog

Youra alncerel.7,

<:rt Joseph PaJau

.Aaaiatant Loan Officer

cc: M9ssrs. Flesher Street Ross

Miss Moraey

(~ritten after consultation With Messre. Koster, Flesher and Street)

O F FICE OF FINANCIA L C OUN SEL O R

FA/1528

NETHERLANDS EMBASSY WASHINGTON 9, D. C.

Mr. J. Fajans Assistant Loan Officer International Bank for Reconstruction and Development 1818 H Street , N.W. Washington 25, D. C.

Dear Mr. Fajans:

14'70 l[UCLID STREET. N . W .

T£L. ADAMS 1662

CABLES: N ETHERFIN

September 5, 1952.

I have been instructed by the Herstelbank to request . the Bank's approval of the following two changes in Projects XIX and Vas now described in the Loan Agreement and supplementary documents .

1. Barnshoeve (Project XIX) requests a reduction with $337 . 000 in the dollar allocation for this project and a corresponding increase in Swiss francs in order to purchase the following items of capital equipment: 9 sliverlapmachines 18 lapdrawingframes 18 bicoildrawingframes 20 interdraft roving machines all outfitted with motors etc . This equipment will be purchased from Messrs. Rieter in Winterthur (Switserland). A do,mpayment of 10~ will have to be made at the time the orders are placed and the balance of 90% is due in May 1953 . Delivery will take place towards the end of 1953 .

2. Koninklijke Zoutfabrieken (Project V) requests an increase of its dollar allocation by $3100. - in order to buy two nashcompressors, one to be used for the purification of flue gasses and one for compression of chlorine. Koninklijke Zoutfabrieken do not have reserve compressors and a breakdown would result in a considerable loss of production. In the chlorinedivision for instance the loss of one compressor means a loss of production.of one ton chlorine per hour. It is for this reason that Kon. Zoutfabrieken desires to purchase these two compressors at a total cost of $4500. - . Since there is an unallocated balance for this project of $1400.-, an increase by $31000- is requested .

- 2 -

I should be happy to learn rrom you whether the Bank can concur with the proposed changes .

Very truly yours,

J . Grooters Asst . Financial Attache .

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OFFICE OF FINANCIAL COUNSELOR

NETHERLANDS EMBASSY WASHINGTON 9. D. C.

1A70 ltUCLID STREET. N, W.

TCL. ADA.MS 1662.

CABLES: N£THERFIN

FA/1520 September 4 , 1952.

Mr. J. Fajans Assistant Loan Officer International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D.c.

Dear Mr. Fajans:

I take pleasure in enclo~a letter from the Herstelbank dated September 2, 1952, and addressed to the International Bank.

I would appreciate to learn the Bank's decision as to whether this Project can be financed under the Herstelbank Loan.

Very truly yours ,

J. ooters Asst . Financial Attache


NATIONA.AL HER.STEL N.V. 'S-GRAVENHAGE, September 2nd , Kneuterdiik 6 1 9 52 •

K/1 ~,77- vB/CS.

International Bank for Reconstruction and DevelopMent , 1818 H Street N. d ., Washington 25 D. C.

Dear Sirs ,

Tclcfoon 18~890/98

We have pleasure in submitting for your approval a new project consisting of the expansion and improvement of a recentl y set up nylon stocking fac t or y . You wil l find the full documentation together wi t h some fotographs enclosed .

It is interesting to note that we find in this factory an ultimate product based on caprolactaM which is now manufactured in our country by the Staatsmijnen thanks to the funds you granted for the purpose of equipping the relative caprolactam plant .

We trust you will be found prepared to assist this promising young business and await your decision with interest .

Yours very truly ,

~ 1~AATSCHAPPIJ TO~IHAYCIERING VAN HET NATI ONA7' Hli:RSTEL N. V. ,,.,,

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K/157?- vB/CS.

International Bank for ·Reconstruction and Developr1ent, 1818 H Street n. 1., wash j n gt On 25 n.c,

Dear Sirs,

September 2nd, 1952.

We have pleasure in submitting for your approval a new project consisting of the expansion and improvement of a recently set up nylon stocking factory . You will find the full docu'!lentation together ,vi th some fotographs enclosed.

It is interesting to note that we find in this factory an ultimate product based on caprolactaM which is now manufactured in our country by the Staats~ijnen thanks to the funds you granted forte purpose of equipping the relative caprolactam p~ant.

We trust you will be found prepared to assist this promising young business and await your decision with interest. ·

Yours very truly,

~PAATSCHAPPIJ ~OT FD~}·crERING J VAN .HET NATIOl~AAL H ·~- ,L N. V.

f

N,V, Kousenindustrie L, ten Cate,

a) Brief description of the project ,

After a few years of careful preparation and several visits to the U .s. ~'r. L. ten Cate, youngest son of Tl'r. H .E. ten Cate, one of the ovmers of H. ten Cate Hzn. & Co. r. V. (project XVIII) founded during 1951 a nylon stocking factory. He thereby had the great advantage of the financial, technical and commercial assistance of the aforementioned spinning and weaving mills. Mr. Gorter, managing director of H. ten Cate Hzn. & Co., became chairman of the Board of Directors of L. ten Cate •. Common stock (4oo shares off 1.000,- ) and preferred stock (10 shares of f 1.000,-) is entirely held by two brothers ten Cate.

The site for the factory building has been chosen in a Twente village with a plentiful supply of labour. The building is abt. 650 m2 and was planned for a total of 16 (32 sections) Lieberknecht machines but at present part of the building is used for offices, dyeing and sewing departments.

The factory building is highly insulated. Temperature and humidity are controlled automatically . A special building system makes rapid and cheap expansion possible. In order to accomodate the machinery to be purchased a small section would be added to the factory in order to expand the finishing department.

The purpose of the project is to expand production and improve the quality of the product thereby enlarging the range of products. One 51 gauge Kalie machine would be added to the two now in production as well as one 66 gauge Kalio machine . Furthermore an auto~atic boarding, drying, stripping, piling and counting mach:1:e would also be purchased. With the machinery then available the main product would be a strong 51 gauge walking stocking and a very fine 66 gauge stocking. The latter type of stocking is not yet made in the Netherlands .

For experimental purposes and small series one 51 gauge and one 66 gauge single head machine would be purchased . These machines would make it possible to experiment and train without having to use costly 32 section machines whilst maintaining nearly identical conditions . Unusual sizes for which there is limited but steady demand could also be manufactured on these single head machines.

The Kalio machinery has proved excellent and for this reason as well as for the sake of uniformity the firm wishes to purchase from the same manufacturer.

As will be shown later a true degree of efficient and profitable ~ble production cannot be reached unless the aforesketched expansion takes place .

The investment would take place in two stages, first the 51 gauge would be brought into production and after the 66 gauge in order not to make too heavy a demand on the available labour and give some time for training.

- The amount -

, ~ ,

• - 2 -

The anount to be invested totalling approximately$ 107.000,-will be spent as follows: •

U .s .A ••••••••• approx. $ 95. 000,- two "Kalio" stocking manufacturing machines with two single head machines as well as an automatic boarding, drying, stripping , piling and counting machine;

Netherlands ••• approx. $ 12.000,- additional section to factory to move dyeing and finishing department in order to,accomodate new machines. -----

total $107. 000, -

b) Disbursement,

3rd quarter 1952

$ 4 . 350 ,-

4th quarter 1952

$ 39 .150 ,-

1st quarter 1953

2nd quarter 1953

$ 5 .150 ,- $ 46.350 ,-

c) Equipment to be ourchased with the aid of International Bank funds,

One 32 section 51 gauge Lieberknecht (Kalio) full fashioned auto- welt leg-foot knitting machine incl. moistening equipment One 32 section 66 gauge idem approx . One single head 51 gauge machine One single head 66 gauge machine One autonatic boarding , drying, stripping, piling and counting machine

$ 36 . 500 ,-11 49.000,-11 2.500,-11 2.500,-

11 4. 500,

$ =95 . 000.1.-

The relative proforma invoices are attached . Some allowance has been made in our calculation for erection charges in respect of the 51 gauge machine and handling charges for both large machines .

d) Financing,

The project will be partly financed out of own funds and partly out of a credit facility off 350 . 000,- of which f 270.000, - is still available.

- e) Relation -

•

- 3 -

e > ijtf f lW;!!tween tht proJect amt \be ,x1,t1pg prgduct1gp

Thia tirm has bean producing since l"ove"lber 195'1 w1 th the following equipment,

2 Schubert & Salzer machine• 4S gg. 24 section• 2 Lieberknecht machines S1 gg. =~ sectiona 1 Reading Expending Examining Fc)rm 5 Sewing machine• 1 Turbo .AD l+8 1 "Gridfiow" dyeing r.wchine 1 Sa~ple dyeing machine.

The two Ochubert 4: Salser ~ach!Jll•• have been ued to train labour and are too obsolete tor et:rtoient production. Th••• will be sold and replaced by the S1 and 66 PUC• uohinea tor ••• procluction purpoaes and the two siJ?sl• head llt8Chinea tor tra1n1ng, experimenting •• well •• amall aer,l••.

The two !Calio aachinea which ha·,e been in production ha•• proved aoat reliable whilst tn the opinion or the t1N'a teabn1oal people the stitch shaping is very 11ood . For thia r••on and tor the sake ot ett1c1eney it seems ad'11aabl.e to have a un1tora1ty ot 1!18ch1nea. Training labour, 1nte·rchang1ng part• etc. will thua be tac111tated. Furthermore L1eberlmeeht is up to now the onIT •mafacturer making 66 gauge machines 1ot the same size •• 11 pu,e machines.

The new machinery will enable t:he manutacturer to•~ h1a sales and better meet the demand which he can only part aatlaf)' at present wh11Bt the qua11't7 or the product obtained w1 obviously be improved by acquiring the 66 gauge knitting Machine.

t> General 1nrorm1t1on. 1. Output during 1952 (the t1rst y,•ar or production) 1• estimated

at approx. $ 2,c,.000,-1 2. tUmber or workers now e!!tployed 1+4. Arter execution ot the

project 691 3. B~~JiS!t1•1f, ' on yarn manufactured by the A.K.U. which 1a ot excellent

quality and plentitully obtainable both 1n 30 and 5'0 denier quality. The raw matorials tor the Enkal,on yarn are now obtainable 1n the etherlands. In this connectt1on it 11' interesting to note that 8taetsm1jnen (project III - p) are now able to •upJ)].T the necessary caprolactam th:inll:a to Interbank tunda.

4. Products s Nylon stockings - a .310 denier Enkalon atocld.nc reinrorcftd with 10 denier. i'.he 66 gaug9 machine •111 rna ke the production c•r a much tiner type possible.

t -~. l'ati,...ted -

- 4 -

5. Estimated oroduction increase and currency result , It is expected that the present production of 44o dozen pairs a week wil l be brought to 800 dozen pairs whilst allowing for the withdrawal from production of the two old mach:lnes a week of which the 66 gauge machine will make 200 dozen ]pairs. A conservative estimate of the project ' s result cal~ be compiled as follows :

additional nroduction : 360 dozen pairs per week of which 160 dozen pairs at an average price of f 4-0 ,- pe r. dozen 200 II tr II II II II II f 50 ,- II II

Taking 50 weeks to each year this means an addi tio10.al yea_rly result of:

160 X 50 X f 4o ,- = f 320 . 000, -200 X 50 X f 50 ,- : 11 500 . 000, -

f 820.000,- or $=215.000,-

The above estimate makes a_n allowance for a possible price decrease in the cheap~r stocking as the present pr:ice of sale reaches f 45 ,- to f 1+8,- per dozen pair. The estimate of the price of the finer stocking is also conservative . The produ<"' tion will be entirel y sol d on the home m1arket where it will replace imports from Belgium and the U .s . . ~s far as the finer stocking is concerned there are only imports from the U. S . It is of interest to note that the firm cannot meet the demand made by its customers at home . Total home consumpt:ion amounts to about 1 .650.000 dozen pair per year , which is e,quivalent to about 6 pair per y_:ear per woman . Home production h1owever only covers approx . 60% of this · amount . Enquiries were :received from Sweden , Norway , Denr,ark, Ireland and South Africa but were not pursued as home demand is ample . Export possibilit i es are therefor e present and the product i on of nylon yarn at home will in future no doubt be a great asset for would- be expor terso · The total additional production of$ 215. 000 ,- yea:rly can as already shown be considered as hard- currency savin,g .

6. Financial data , The balance sheet and profit and loss account over 1951 which ar e added at the end of this documentation do not 1give a true picture of the firm's financial situation and pos s:ibili ties as production had then only been going on for two months and as all the initial costs had just been met .

- We therefore -

I

- ~ -

e therefore consider it adv1sab1o to mention that 1th an estimated turnover off 750.000,- the total profit over 1952, ofter \'71'1t1ng-off and before taxation, is est1oatcd ot f 150.000,- to f 200.000, ... ,e aro also adding cornparat1ve estimated oporuting accowits horotn tho estinated finonc1al results are shoV111 in the

following throe cascst

Gross turnover

.Sales costs

Raw and further materials

".Jages and salaries (incl . social charges)

Operating costs

General costs

Writing- off

Interest

Result

.. 6

Present condition without two old

machines 2 51 r,auge machin~s .

f 247. 000

II 1 55 • 000

II 36 • 000.

" 20 . 000

II 107 • 000

II L~. 000

f 900 . 000

If 81 .000

J 819 . 000

II 569 • 000

f 250.000 ------------------

Aftor ~urchase of onP 51 ~auge machine 3 51 ~uuge achines.

f 1 . 300.000

II 120.000

•• After purchase of

1 51 gauge+ 1 66 ~8UF,e rnFichines

and furthermachtn~ry.

f 1. 300 . 000

II 165. 000

f 371 . 000 f 1 .1 80 . 000 f 491.000 :f 1. 635. 000

II ~06.500

II ')0 , 000

II 25 , 000

II 145 • ')00

II 12. 000

II 270.000

II 65, 000

II 30.000

II 229 , 500

II 20. 500 II 810 . 000 ~~~-

f 370. 000 ----------------------

II 1 • 1 06 , 000

f 529.000 ----------------------

.Je believe that further commentary js superfluous here as the figures sneak clearly . The balance sheet and profit and loss account as psr December 31st 1951 ~ollow hsre~ Cer .

1

Land

Buildings

::achines and installations

Equipment

. ans ot Transport

Debtors and advanced payments

Stocks

Cash and clearing

Initial- and develop ent costs

Loss 1951

- "I -

'9PltP1Dduk!t L. tp All! left

Ba1tMI sheet II Pit Puu1atr 3JO Jtl!

./ 7e5'00,- Sharee, p1ta1

"1,9.~7,26 Loan. dr&Vll 1)

n 341.928,1~ Deposit• 1)

~ 1?.923,30 Bankera

ff ;.12S,86 Cre41tora

" 37.029,82

" 1 ;1.3i.o, 9'-" lt. 003 ,a.; " 39.182,'11

tt 7;.a.90,68

J' 839.111 t83 .......... -

- 8 -

Pror1t Dng loss ;count r1n nc1a1 yo r 19i1,

Yarn and further tcrinls used

Jo s nnd olarios (1ncl.soci 1 chargoa)

0 roting costs

On r 1 costs

ritine-otf

Int rest

I 91.173,$1 Gross sales

6 le costs n 5'9. 610, 75'

n 12.223,07 Ult1nate product stocks

" 12.945,04 Special procoods

" 63.484,42 Loss 19,1 ti 7.865',70

I 247.302,1+9 ______ ....,. ___ ..,. .-.----------

/ 101.320,51

" 10.097,60

--

J'

" 78.440,

" 2.11.ta,,o

" 7;.490,68

f 247.302,ltf ===:::r.::=:----

n,v, KOUDE'Oinduntrie ls, ton Cgte,

a) Briof desc:r:J otio.n of the •)ro.ject,

After a fe yeors of careful preparation and several visits to the U.S. ir. L. ten Cato, youngest son of r. l!.E. ten Cate1 one of tho o mors of U. ten Cate Hzn. & Co. r .v. (project XVIII) founded during 1951 a nylon stocking factory . He thoroby had the gr~at advantaco of the f1nnncial, technical and COW"erc1al assistance of the aforeoontioned spinning and · 1eavine mills. Hr. Gorter, managing director of ll. ten Cate mm. fl Co . , became chairoan or the Board of Directors of L. ton Cate . Comnon stock (400 share~ off 1. 000,-) and p~eferred ~tock (10 shares of f 1.000,-) is entirely hold by two brothers ton Cate.

The si to for tho faGtory building has beon chosen in a Tv:ento village with o plentiful supply of labour. The building 1s abt . 650 m2 and was planned for a total of 16 (32 sections) Lieberknecht mcchines but at present part of the building is used for offices, 'dyeing and se 1ng departments .

The factory building is highly insulated. Temperature and humidity oro controlled automatically. A spocial building system ~okas rapid and cheep expann1on possible. In order to accomodate the machinory to be purcht1sod a small section would bo added to the factory in orde~ to expand tho finishing department .

The purpose of the project is to expand production and improve the quality of the product thereby enlarging thP range of products . One 51 gauge Kalie machine would be odded to the two now in l!'OdUction c1s \7f3ll as one 66 gauge Kalio machine . Furthermore an automatic boarding, drying, stripping, piling ana counting machio would also he purchased . Ii th the machinery then available tho main product ~ould bo a strone 51 gauge lmlking stocking and a very fino 66 gauge sto~king. The latter type of stockine is not yet nade in the ~therlands .

For experimental purposes and small series ono 51 gauge and one · 66 gauge sine;t.e head machine "toula be purchased . Those machines would make it posr:ible to experiment and train without hnving to use costly 32 soction machinos whilst maintaining nearly

. 1dont1cal conditiona. Unusunl sizes for which there is limited but steady d0Mat1d could also be mnnufacturod on these single head machines .

The Kalio machinery has proved excollant and for this reason as ell as for the sako of uniformity the firc.1 dshes to purchase from the sarna r·anuf"acturor.

As will be shown later ~ true ,:Jagree of efficiont and pro1·1table pr.9,!J.~hlo produ<"tion cannot be reached unless the aforesketched expans1on , takes place .

The invest!l!ant vmuld take place in t\'•o stages, first tho 51 gaug~ would bo brought into production and after the 66 gauge in o~der not to mak(:? too heavy a demand on the available labour and give some time for training.

I -'.!'he omo1U1t -

- 2 -

The a~ount to be invested totalling approximntely $ 107.000,-will be spent as 1·ollows s ·

rr r.! A , v.~ •••••••••• approx. S 95 .coo,- t,,o 11Kalio" stoc1:1ng manufacturing machines "li th two r.ingle head rna~hines as well as an automatic boarding, drying , stripping , piling and counting machine;

J!otho.rlands ••• approx . $ 12 . 000,- additional section to factory to move dyeing and finishing department in order to·accomodate new machines. -----

total s107.oo:>,-

b) Disbytsemont, 3rd quarter

1952 .

----------------------

4th quarter 1952

6 39. 150, ...

1st quarter 1953

2nd quarter 1223

s 5.1 50,- $ 46 .350,-

a) Eou1pment ·to be nurchasea with the aid or Internationa+ Bank funds,

One 32 section 51 gauge Lieborknocht (Kalio) full fashioned auto-wolt leg-foot knitting machine incl. moist~n1ng equipment One 32 section 66 gauge idem approx .• One singlo hoad 51 gauge machine Ono singl e head 66 gauge machine One autonatic boarding, drying, stripping, p111ng and counting machine

$ 36.;oo," 49.000,-11 2 . 500 ,n 2 . 500, -

n 4.500,-

f:2i~2~~!; ThA relative pro-forma invoices are· attached . Some allowance

hen been made in our calculation for erection charges in respect of the 51 gauge machine and handling charges for both lorge · machines .

d) Financtns. The project will be partly financed out of' own i'unds end partly

out or a credit facility of/ 350 . 000,- of which f 270. 000,- is still available.

- 3 -

(\) ro ect and the existin roduction

This firm has been producing since November 1951 with the following equipment:

2 Schubert & Salzer machines 45 gg . 24 sections 2 Lieberknecht machines 51 gg . 32 sections 1 ~eading Expanding Examining Form 5 ciewing machines 1 Turbo AD 48 1 "Gridflow" dyeing machine 1 Sample dyeing machine .

The two Schubert & Salzer machines have been used to train labour and are too obsolote for efficient production . These will be sold and replaced by the 51 and 66 gauge machines for mass production purposes and the two single head machines for training, experimenting as well as small series .

The two Kalio machines which have been in production have . proved most reliable whilst in the opinion of the firm's technical people the stitch shaping is very good . For this reason and for the sake of efficiency it seems advisable to have a uniformity of machines . Training labour, interchanging parts etc . will thus be facilitated . Furthermore Lieberknecht is up to now the only manufacturer making 66 gauge machines of thEf"same size as 51 gauge machines.

Tho new machinery will enable the manufacturer to expand his sales and better meet the demand which he can only partly sat!~fy at present whilst the quality of the product obtained will obviously be improved by acquiring the 06 gauge knitting machine.

f) General information,

1 . Output during 1952 (the first year of production) is estimated at approx . $ 2G6.000,-;

2. Number of workers now employed 44. After execution of the project 69;

3. Raw materials, Enkalon yarn manufactured by the A.K.U. which is of excellent quality and plentifully obtainable both in 30 and 50 denier quality. The ra~ materials for the Enkalon yarn are now obtainable in the Netherlands . In this connection it 1~ interesting to note that Staatsrnijnen (project III - p) are now able to supply the necessary caprolactam thanks to Interbank funds .

4. Products: Nylon stockings - a 30 denier Enkalon stocking roinforced with 50 denier . The 66 gauge machine will make the production of a much finer type pof.isible .

- 5. Estimated -

'1 /

- 4 -

5. 'P.stima;tcod nrodu~t1on incroasa end currPrtCY r~snlt, It is expected that the present productjon or 41.t-O dozen pairs a week will be · brought to 800 dozen pairs whi.lst allowing for the .. ithdrawol from production of the tV10 old machines a wook -

· of ~hich the 66 gauge machine will make 200 dozen pairs . A conservative estimate of tho project's result can be compiled as follows,

additional production; 360 dozen pairs per Tieek of which 160 dozen pairs at -an avorage price off 4o,- per dozen 200 " u t! " " ti ti f ,o,- " " Taking 50 weaks to each year this means an additional yearly result of:

160 X. ?0 X / l+o,- = t 320. 000,-200 X 50 X .f $0,- = t 500.000,-

,

f ~20. 000, - -or $ 21,. 000,-====--=====

The above estimate makes an nllowanco for a possible price decrease in the -choap~r stocking as the present price of sale reaches f lt-5,- to;/ lf-8,- per dozen pai.r . · 1'ho estirnato of' the price of the finer stocking is aiso conservative . . •

•

-rrie produ,..tion will be entirely sold on the home market where it will replace imports from ~lg1um and the U.S. As far as the finor stocking is concerned thore are only imports froo the U.S. lt is of interest to .note that the fjrm cannot ~eot the de~and ~nde by its customers at hol!!8. Total ho~e consU.!!lption .aoounts to about 1.650 .000 dozen pair per year, which is equivalent to about 6 pair per yearner woman . llomo , prod.uction however only covers approx. 6~ of this amount. Enquiries were received from Sweden , llorway, Dcn!:!lark, Ireland and South Africa but were not pursued as hOI:10 de~and is a~ple. · Export possibilities are therefore present and the production of nylon yarn et home will in future no doubt be a great asset for would-be exporters . The total additional production of 21,. 000,- yearly can as already shown be considered as hard-currency saving.

6. Financial data, The balance sheet and profit and loss account over .1951 which are added at the end of this documentation do not give a true picture or the firm's financial situation and -possibilities as production had then only been going on for two months and as all the initial costs had just heen oet.

1 I

- Ue therefore -

,

- 5 -

We therefore consider it advisable to mention that with an estimated turnover of'/ 750. 000, - the total profit over 1952, after writing- off and before taxation, is estimated at f 150 . 000,- to f 200. 000,-. We are also adding comparative estimated operating accounts wherein the estimated finoncial results are shol'ltl in the following three cases:

f .

Gross turnover

Sales costs

Raw and further material s

Wages and salaries (incl . social charges)

Operating costs

General costs

Writing-o:t't

Interest

Result

- 6 -

Present condition without two old

machine• 2 11 CARIi Pl9blPtl ,

Uter pveb&N ot one ,1 pqe -blM 3 ,:1 DID r:Mw,

f 900. 000 f 1. 300.000

" 81 . 000 • 120. 000

f 819. 000 .I 371 . 000 I' 1.180. 000 I' a.,1 . 000

" 1 ;s.ooo " 206. 5'00 • 210.000

" 36. 000 " 5'0. 000 • '" 000

" 20. 000 " 21. 000 • 30 000

"101. 000 " 1i.;. soo • 229 "°° " i.. ooo .. 12. 000 • •• " 5'69. 000 • 810 000

f 25'0. 000 I' 310 IOO ====----=

;

We believe that turther commentary is supertluous here as the ticarea ~ olear~~ The balance sheet and profit and loss account as per December 31st 19'1-~cdl.ov h•~-,-.r .

Land

Buildings

Machines and installations

Equipment

Means or Transpo~t

Debtors and advanced payments

Stocks

Cash and clearing

Initial- and development costs

Loss 195'1

- 7 -

Kou11n1P4»1t;11 L, ,,, Aft.• l,Y,

Balapqa •hfet 11 ,,, RIM.., 3l •1 J 9'f1

f 7.;00,-- Sharecapita1

" 1 5'9. ;87, 26 Loan d:ravn 1 )

"31+1.928,1;

" 1?. 923 ,30

" 5'. 12; ,86

" 37. 029,82

" 1 5'1 • 31+0 , 5't,

" l+. 003 ,1+5'

n 39. 182 ,77

" 7;.1+90, 68

f 839. 111 , 83 =========-==

Depo11ta 1)

Bankers

Creditors amt eost• out1tan41111

1 ) members ten Cate t•wtl7.

1

- 8 -

Kousenindustrie L, ten Cate N1 V1

Profit and loss account r1nanc1a1 xear 1221,

Yarn and further materials used f 91 . 173, 51 Gross sales

Wages and salaries (incl.social Sale costs charges) " 59. 61 o, 75

Operating costs " 12.223,07 Ultimate product stocks

General costs " 12. 945,04 Special proceeds

Writing-of'f' n 63 .484,42 Loss 1951

Interest n 7. 865,70

f 247. 302 ,49 ------------------------

f 1 01 • 320, 5'1

" 10. 097, 60 J' 91 . 222,91

" 78. lf.l+O,

" 2 . 1 lt-8, 90

" 75.490,68

f 247.302,i.9 =========--

OUR OROER N o.

WILDMAN MF"G . ca. Knitting and Hosiery Machines

NORRISTOWN, PENNA,, U, 5. A,

SHIPPED VIA t.ro bo ship~1ed YOUR ORDEn Lette,r SOLD

.iuno 25, 1952 To L. Ton Catd ~ . v • ;,e(tstoren { vv. ) • Hollund

1£,.M&, N< t . 30 D4Y<; NO DISCOUNT

F . O. 8, NORAISTOWN ALLOWANCE

PRICES SUBJECT TO CHANGE

WITHOUT NOTICE

l

Cu:,h in .Advance

66 ~aug~ Stylo ~,.s machiue. squ1.l)J od. "Y11.tb tv,o a;>eed d.ri 'Vo, less .w.otor

~I>aree-. To~ls , Gatl6GS aa se4,ot9d per nill - approx1~ately \

llo.xin~ for t .. xport ·

BilltJ or Le<U.n~. Documauts & truck to ~aw York apP.rox.

approx.

Deli ver;r 6 to 8 'tJeeka a1'to:.:.·

' he here1y stato tha.t all urowi~ion Uovorll.'.!lent in eo.a.nect1011 v,ith the our .Liltlohin6u from v . o. A. will be a by u.s.

June JO l.>S2

1825 00

600 00

50 00

45 00

50 00 2570 00

of y ur L6tt~r r Credit

d by u . s. tion of followed

OUII Onot.n No

WILDMAN MF"G. Ca. Kailling and Hos,ery Machines

NO R RIS T O W N , P ENNA. , U. t.. A,

!:>HlrP[O VIA To bo shi p~)ed YOIJR ono,n Letter SOLD

June ~5. 1952 To L. Ton Cate N. V. Geqstoren ( 0v.). Sollond

r.~ ..... N1 I .,o lhvs N O DISC OUN t

r O 9 NOIUUeTOWN ALLOWANC.: l::

PRICES SUBJltCT TO C H ANGE

w,THouT NoT1cr: Cash 1n AclTe.noe rr •== ::r:::::::::r

l 66 1eug$ Stylo 1,.s ir.aoh1n . eq~t1p;oo w1t,h two apeed dr1 Te, lesi& motor

~pare~. Tocls , Gauges as selected per .01ill - approxiEnately l

Box1nG, tor ~xpo1·t

Bi llu or Lacl1n · , Docum~ute & truck to l ew York ap~rox.

aµprox .

June 30 19j2

lS25 00

600 00

50 00

45 00

50 00 2S70 OQ

Del1 very 6 to 8 weeka at'tor recei ot y ur Lett~r r Credit

•& hereby StfltO that Ei 11 prowi ..'10 GoYoru.ment in oonnoct1on i~th the ou1· m.aoh1neo :trom t: . :.,. A. v;ill be o 1otl by us . j

I ... ~'11 !!l • CO. Y" ) / /L /r .u,~(. ,.

• I • • • • • • • t "'I • • • • Y. JI... tiu'.L, 'i . P

c1 by u. n. tion of rollo1'e4

s .

OUR ORDER NO.

WILDMAN MFG . C . Kniltiag aad Hosiery Machines

NORRISTOWN, PENNA,, U.S • .._

SHIPPED VIA

YOUR 0RDE.R .1.0 b"' £blJ11•0C

L. Tc.r, Cate •• • \ • u(:ent~ron {L:?. J. c.olland

Lett or SOLO JW'.e 25 . 1~ 52 To

TEIIMS Ncr 30 DAV9 NO DISCOUNT

F O B NORRISTOWN ALLOWANCE

PRICES SUBJECT TO CHANGE

WITHOUT NOTICE

l 51 .;:....ugc c t.J .. o .... .,oohinE:. aq_ai •Jpod v 1 t.o. two aj)ec;d dr: ve, le 1ti~')tcr

~p~ras, To~ls, ~~uges ,s c~loct~d ;"OI' lldll s.r "'O.x:i·n ... t.tlly

Jo~ii~ to~ export

Bills cf LUdi!lg, ~oot~ont.s ~ t~~c to lu:-.; York approx.

8 i'Pr.'07. •

I.ell V(.l'/ 6 ., ) 8 '/1t)1Hr.s ofter recei

e nar,by Stet~ th~t rl: nroviAi~ UOYurn ~n.t l.: oorutc~tlv.u litn the our eRchine . .., t.roin U. · . 1\. ,:1.11. he by u:,.

I ~ ,, •.

· \ r;L I . . . • . o.l,

Jun~ ;C 1952

?RC 'tr.Jftt:: fl~ ' .. IO

1700 OQ

6C>O 00

50 00

I+, 00

50 00

d by ti.:.,. :a:port tian of r!cel. f'ollot.ed

24.45 00

.. WILDMAN MFG. Ca . .

Knitting and Hosfory Macliines

NORRISTOWN, PENNA., U .S. A .

Jun~ :30 1952 OUR 0ROER NO.

SHIPPED VIA

YOUR ORDER .i..O oo Lh1.v1•0C

L. !'011 :ate ~ . V • Gc1flntaren { uv. J • r.tOllonC.

.1...o tt or SOLD Jw1 e 2:i. 1~52 To

TJRM:!I Ntr 30 DAYS NO DISCOUNT

I IT O B NORRISTOWN ALLOWANCE

l"RICES SUBJECT TO CHANGE

WITHOUT NOTICE

l .51 vt!uge ctylo : '!.: ":",OOh1n~, eoui~.3pcd with two s;,,eod d=i vti , les rn.:,tor

~µeras , To~ls , Gaage~ 10 ueloctvd :i<1r' idll ap .... oxi·1l'.! ... uly-

B0x1n~ ror oxport

Dillz <if L!ldi ng, L,:,o,u:ientc ,,. truck to l"e"' Yor~ anprox.

c: !i' ... ruster~wn

1700 OU

fr)O 00

50 00

4, 00

50 00

t~ l1vcry 6 ~0· 8 woe~3 after recoi r of~ ttor or Jr dit

. ;

We ·nor ~by stf:it'!' t hr•t :-11 nrov is.i.~1n lasu ld by Li • .::> . li"''°'·n·.i, .. :1er.i. t L1 ovnnoc \;.io .. i d tn tbo :s::port .t.icw or ou.r reno.hinc;;, fro.rt U . .. . A. ,n.lJ. he 9 r!otl follO\\e~ by .10.

·11 ·.ff~. • . Ci •

• ·.• . ,1u.l, ·.' • ;>res •

I ,. I

2445 00

INVOICE NO.

TELEPHONI!: VANDERBILT 6-5671

L ENDT & COMPANY INC. 535 FIFTH AVENUE

NEW YORK 17. N. Y.

CA9Llll' A D D RESS LENOTCOMP NEW YORK

TERMS:

QUA . , rrv

1

SOLD TO

Il .. V • Kr.>usem.ir1das trie .u. jen Ca ta <;ee ste1·en, fiol.lani

25% with cro.e1~ - bal.ruloe against le~t~r of creQ!t in New York.

DATE· J'JJ.y -'l. l 1952

OUR ORDER No.

YOUR ORDER No.

sH1?Pe:o approximately 6 ro,·m to.a a.ftel: l'";?ceipt or a~pos1t. a nd lotter of or·s di i;.

·=======- ========-=·-·· - ......... ....__...._ ___ ......._. __________________ . ·---. ···-· I UNIT I I T O T A L ___ -·-··----! PRICt~ i--·-,--- ---

Model 0 L 11 :f'.s:·ootol' Autonatic Boe.1"d.1n5 . I I I

IT E M

Drying) stri~' })L:...,. Pi.line, and Counting I j Machine tcr La.dieo' All-:Uylon Rosie.ry, 1 •

ericl1,:ped. vfi·~,·1 12 de ,a.cl.able toe-tyr,u l , \ alumir.du.m 'boar,ls a.ua. tour sots of t.·iel1rd I 1 toes of tour a.::.ffsrent eizas I j

fhe above qo..otatio~ 10 subjeo~ to rs- , 1

vision. I I I ,

Del1·iery f.o.b. rlan~ .PhilaQeJ.1•hia, Pa . I l h:x~o.t•t pac1ting i ncluJ.e<1 . ! i

' I i I :

l t

I t

' I ' . '

I I I

l.,~4. 5Hiji . OO ---··+---,-

I I I

I ! I

I I L,mp t~

I I

oblu:~A.1rr I ..

! I

j.' I J ii .

I 1 ! ;

I I I 11 I

\ ' ' I'-·, , ... -f I , I

II I i

i I I i

I I

I

-- ...... ..) I

'

INVOICE NO.

TELEPHONII!: VANDERBILT 6-5 6 71

LENDT & COMPANY IN .. 53!5 FIFTH AVENUE CAISLllt ADDRESS

LENOTCOMP NEW YORK

= ;; QUANtlTY

1

NEW YORK t 7. N. Y.

SOLD T O

li. V • Kl)usoid . .nd.as trie L. ~au Ca ta c;Ge stei•en, Rol land

2 0% ,;·,i. th or G.e1• - balance against leittcr of ere 1 t i n .:..'iaw York.

DATE· JuJ.y 4 t 1952

OUR ORDER No.

YOUR ORDER No,

sH1?PEo apr,ro.::dmately 6 rnon the aftel· 1 etJei pt or d~po sit and lotter uf Ol SG.i ii.

====-~-=·-·- . ·--I UNIT '1' 1' • PRICE

- --- ___ 1___ ,-----1-·-----,·-----·-- :::::-======-=========·::::· =---·-----,

ITEM TOTAL

---·----·

Model 0 L11 PI·ootor Au.tomat.:.c Boe.rdir..c Drying) Str1i,)ing, .Piliug a.ud. Gounti , Maa .11ne tor Lad1eo t .A.11 - Nylon Rosi(JrJl e iuil)].)ed wi -~L 12 d.'3 t,ac hatle toe- t,y~ t1 i a.l'UJ.1im1.:.m .,:,~ar<1s e.ud four sets ot t"'.7•9 J.7d toes o:t :t~ our different ei?.a s i 'N1e e.bove qu.ot atio.!.l 1s subjeo t; to l"G·"' vision.

Deli very f. o . b . -Plant .?hilad.eJ.1 h.ia , lPe. BX_yCJ:·t :pac:tiug incluC.eci.

I I I I I I I I I ! I ,

l ' I

' I

',!1-.w+.oo - --··+---,--

:

I

I i I ..

I I

d».u:J.A.rrr Li c . I I 1

I I I 1' t I · • I J i \ I { ~ • l'-,~~i

I ! I I i I I I I . I

....) I

I

KARL LIEBERKNECHT INC. , FULL FASHIONED HOSIERY MACHINES

P. 0. BOX ?17

READING. PA.

DATE ' c:.,, 1952 SOLD TO L Ten Cat;,, t{ V

].oces .. "'"rl;'n v) Kol lan~1

TERMS:

PROFORMA INVOICE NO.

66 Oqu~e. 32 S~ctior l~• Autc-w~lt Leg-1ont ~tll t"d~t1 nr,: Ki1tt1ng r!c1Lh:ll.e .. OB , ,. Factory, ,e .... i::.nHP ,'J.3H.

C: r1tic'lg nnd transportativ•1 chc1!TC'J to U.S.A. f( ct for c,-. t er~c .. ed machine

$40, 5r>o. 0

2,400 .o

lnl nnd frf.'ight is pr~paid to N~w York or Ph1 ladelJ hi 1 µi<>r. There may be. o ~d it! )fl 3.1 heavy 11 rt and un lo.:id.1.ng cb....:.rtcs t 1 .J1 nee th"'":3~ charges vary tetwt>f' \ piers and ports we will instruct the forwarding :igents to aavanc~ th~ funds and lnclvd~ in bill ror f~r~ard1ng ser.ic~s.

Est,1,nnted ~rect1on charges for ueml-erectea ma0!-llne

E!'Pc'1.or.. We w111 ru1ni~h cne erPctor• and ... 111 cha1ge ,.r ~he 1.;..1t•~ or S') O...) ;:,.::r }our L1v1ng ..-vpen ~·;.· it good 1 ... <''15r:.-tat1on expenses '1 n l w:1g~s wh!.1~ 'rave11 .: at $"

1,500.00

· :- hi-; servic·~s hot~l p.LU8

n ,,...r hour t.o hf' " 11' rl:?;' t "'Xtra Custc,mer to f • •1:!.. 1 qual : fled ti"li "r re ou~ er·ector.

it , d:tJ•rnt·-r.ent. of erect lcn charges Hil.1. bf• mad/· ,:1 !'t~ • •. ump.i.et ion of ~·.:>o.

Nu.n~ r .1•...1rk1ng a ttach.rnent · Ir,c 1 uned 1 n abov~ pr lee. M. tie .•. e.. c tt:achment !:.:--fr·+ 10n of ml tre heel at.t:c1c1im~nt A,..-di:.1.rmel charge r0r 38n Volt ~ ph c1 s~ 51, c~· ... 1"'! motor c .. •r-ttro l ler

1, 2(5,:JO 345.1c 56.jC 80 uo

2, 70( .()')

,... '!' P n.,

TEHM3 l);.' PAYMEN'I' Depos1 t Pc1yment: 10~ of lnrJ pr1c~ of ench machine payable :; t -chl' tlm~ or signing of tne contract . '.1c. .. ve"'J and r1nal Paym~nt . The balance ,1f t he price of each machine shall be p .. .!irJ. in cash or in r.r.e form o r a letter of ere-di t l o be received not l~s3 tl· .. :in ,. !nety days prior t ~ the 1nt ic1pate1 shlpplng dat,.. 0f e ... ch machine The 1,- ,ter of cr~dtt sh=1l l le irrevocable an.-~ c,;inftrmed oy· a prime United Stlt~li bJnk, and shall brar a 7al1d1ty date ex~~nd1ng ~,x•y ctays leyon1 ~le Ga, c dPl l vP ry or e3ch mach1ne. Each l~tt~r of cr~d1t Jh Jl be payaLle al'a.1.n6 · OI'1pp!.ng documents AJl r.ayment s to~- mn1e in nnitea 3tfltt-s ! nds. L ... 1verv Approx1rnat ... ly a!,., m' nths after r"!ce1;.t of s!gne . C<"l~t~act ar.d dPp .:>~! 1... paym~nt. A~l p14 :~ subj ect o revieior to prices vze~r lling ,~ ~4 .e of d~liver)'. Net W,-:a1ght · 35,000 lbs. Grof 'tlelgh t: • 42,0l 11 s \l•' • rux at )

' ..---------- ------- --- ---------

KARL LIEBERKNEC J INC. FULL FASHIONED HOSIERY M CHINES

SOLD TO L T~n Cri "' ~ V J.:e~t-"'r~1, · o,,) H:olland

TERMS:

P. 0. BOX 717

READING, PA.

DATE .. "\ f, 1952

PROFORMA INVOICE NO.

r56 u·iu~e. 32 Sl!ction l"+-! A1tt0-\'1e·lc Leg-1oot 1•ull .rl n",: f{n ! tting trachlnC:.

J .. .:. fo:c.:i~ory, .e~j1n ... ~, P.:, 'J.J ~.

f at ie:g ... nd transpc.1•tat:.io~ ch 1'!T1:<1 to u.~LA. r c 1·t for """· 1 e::-e,.::t~d :nachlne

~40,500. > •

2,400.0u

Inl and freight is prepaid t 0 New York or Ph11J11lelrh:l..1 P1Pr. 'l'here may be ~r11t1~n3.l heavy 11 rt nnd unlc::id1ng cb::..rt;~.:3 l • 1 stnce the-s~ charges vary

le twe~ \ piers e nd purts w~ will instruct the orwardirg ~gents to advanct' the funds and inc.l uc•e in bill fo .,.. fr,r Prd1 ng ser ,1cet.

E .;,t.,i!nn ted "!rect1on chc"trgea for semi -erected m chlne :.,5on.oo

B.;rec ' !.cn. We w1ll f1.nnif,t1 one erector and •,d l cha:ise r hi•, serv1c:·~s -~ the ... te or $'; 0) ;<:?r hour I,ivlt,g e v-rr·n~ s <Jt gooJ hot"'l plu:1 t. rnsr0rtar. ~ on exper3es ~~d wpr:~s· while •.rave 1..g at $;: ,~ p~r hour t.o hr c- 1 1ri;,;, l extra CustC>me r tc firn1::h qu ;1 l ~ .. "'ie•i. hPlrJ~r ! c • ou.~ e•rcctor.

')

1r .,, 'iJt•"'t'tt"!!t. of erect !en rhargee wilJ. be ade .1 ft e_ , 1..rrple tion of ~'.)O.

Nu.nl"t.r ,rkirking att achment · hi.eluded 1n above price. M, tie ..... e .. ,.ttachment ::.:-ect.1on of m1tr~ he~l at.tacl,m·~nt .Addi :.1.r'neJ charge f0r- 380 v,,1 t '3 phas~ 50 <-ye "! motor c"•r> t rol ler Fl, or vm.-,

i are ?ar+- ~

1, 2 /5 uo 345. ')(, 56.jO Bo .JO

2,70:."') TEHM3 OF PAYMEN'l' D~ pos1. t P ,,yme-nt. 10~ of tr.,,. price of each machi ne pay ah l e :;t : ht> tlm~ of' slgnJ.ng of the contract. De: l 1 vet-y and } 1 n a l Payment ~ The balance o f tl'1e price of ~·at'!h machine sha 11 be p~ Id i n cash or in th~ form o f a le tt_.r o f credit t,,._, 1,e received not less tlian r !.nety days pz•ior to the .u:t ic1pated sh1»tp1ng dat; .::a '.if each m&chine The. l,.,;-+er of r-rcdit shdl l l'":' !rr,.vocable an•"! confirmed o~,. a prime lJn1t~J. Stat~o bank, and s~al l bPdr a validity date~ •~nding s· x•y d3ys bPyon1 the ~a.~ c. ~~1 1~~17 or each mdchlne. Each lett~ nf erect~• ~hell be paya~:e aga1..mr~ nr, j pp.1.ng ctoc,.unents. J\ 11 r.ayments t o made in n11 tea 5te~t-s f1. nds. L ,lvcrv Approxim.:tt""lY s!~. m nths arter r~ce1 t or s!gne-. cont~act ar.d df'p...'>?.-:. t paym~nt . li ... l p1 •• :e · stib.fect: to rev18ior •. to p r1ces lJZt"' ,ill t ng -:a-+ tine ")f d-"11ve~. Nr0t Wn1i.;;l"!.t - 35,000 P-s. GrCf'J Weight - 42,0 H·s \f,, • "'1..lx ~Rt£>)

---------------

1

SO LO TO

TERMS:

KARL LIEBERKNECHT INC. FULL FASHIONED HOSIERY MACHINES

P. o . aox 7 17

'1 • -:\ te N V r.,.. a~ e:run (Ov , !H)ll~nd

READING, PA.

DAT E August 5,1952

PROFORMA INVOICE NO. 1049

l ,2 ,ec .. • n 51 11 ... ug~ 14~" Pul 1 Fash1 oned Auto-wel t Leg-fo')t Kn1 tt. lng Mach!ne exclud1r.g mo13tening eqt~ tpro• 1.t P.O l.'. Ul' lc,nct·,ry, RE- .. dl.n~, Pa., U.S.A.

C! H ,i, -:ind trans1)0:rt3+-jort ctl irges to U.3.A. port f or sel?'i-•d' ... cted mschi?1A

$29,900.00

2 ,400.00

Tnlc,d'lJ rt.1ght 13 prepa11 to New York or Ph1ladelph1a..,.p1~r. There . .may -be .adJ!· 1<ma1 heav.y lift and unlo~c1 1ng charges but since these charges vary cEt\:eer, p1:€'r-s and po1ts we will instruct the forwarding agents .£ o ~ i\ '1C€ th iu-i1s arid 1 nr .. .Jde 1n b11 l for forwarding services .

.r l c r p r, :3

ft.;i.tE. ""itrk!n6 -lt1cbr:ent t ti? . n ,. ... k.lr,g at1,:1chment

'.A1 • t • r..:t.l cl" 'l-r~e 1 or 38 J V JI t vl1t:r

q-1th 32 fjngP!'U) 1:,h 64 fingi>rs)

l~ 3 phns~ 50 cycle motor

S~a1~ Pd~ts (As per enclosed lists) Wat' r lr--velie1 .

80 . 00 325. 00 375 .00

l~ffr,t~ 11!1 P."YMENTt 10:' of tr.~ p:ric~ of si~~lng of i t~e contract.

of each machine, payable

56.30 2,304 . 30

67.00 at the time

!>,?.:.::.vc,y·nnd ft!ri.al Payment:: The balance ot the price of each machine eh<.1.l l l:t"'. pa1d in -: -ish <Jr !.n the t 'orm of a letter: of credit to be rec~;t\\,;d net less than n1nery days pr1or t.o the anticipated shipping dat,e of .ich n.achlne. The 1...-:t:ter or crerlit shall be irrevocable and oonf.l:rm'-"d hy a pr1me rn.lted States bank, and shall bear a validity d~te ~xterding sixty c. .. ,:,3 b,:)yond the date of delivery of each machine. ERch 1ette~ of cr~alt shall ·e payab1e against shi pp ing ~ocuments . AU payFF:nt~ t·o b' m(,dt :'\ Vn:3ted States funds.

!lwllv~ ry· 2 tc., 3 mont-hs 1f+-er r':'ceipt of f1r-m order and de1ios1t payment.

AJl pr• 3 -a:....bJe~t to r•~v1.s1 >ns t.o price-:s prevail ing at time of delive r y.· Nc:-t ~.;. lt:.:,h1. - 35,0, \' 11::~. vt JSS Weight - 42 , 000 lbs. (Approximate)

--------~---~- -----..- - -----

..

S O LD TO

TERMS:

KARL LIEBERKNECHT INC. FULL FASHIONED HOSIERY MACHINES

P. 0 . 80)( 717

'_l_lt;."" N ·., • :) • -1'\!?.~ 'Ov •

'10.lla:1d

READING, PA.

D ATE August 5,1952

PROFORMA INVOICE NO. 10'19

--- --

,:.. ;cc• ' n 51 nt.'Ag~ l 4f' F\J 11 Faslti oned A';.!to-we 1 t eg-:o-~ Kn1tttng Mach!r.t? exclud i ng mo1 3tening

f.:q•.tpn, :,t P. 0 1: • .u. Fn. c t ~ cy • f lE- J 11 • .g; Pa . , ti. S . A •

l..:·t :. ,r .. '.l tr.:.it ,sp01t t-.l ri. ch rges to tr.~.A. port f or si:.rot-t. r.:ted mschtw:.

$29,900 . 00

2 ,400 . 00

Tolan:: l'it; 1ght 13 r r• {Jal 1 t.:> New York or Philadelphia/pier . ' ".fhere may be .... d.jU1onal n~avy 11ft a nd un)oa:cU ng charges but s i ne~ 7~hese charges va::y c:c-t .:a~n ;.,i"=' r·s and poi ts we wi ll i nstruct the forward1ng. ·agents "O 91\ "1C" th fur.1.s cPld 111': .. tCe in bill f or forwar ding S-ervices .

.r l (: 1, rJ:j tft. '\.; 'T qrk ~ n;!. alt 1chr. i:.nt t . r , ,. ... ·k.1 • a,. , .-1chment d • • • I".:11 ct: 1~i;e 1 ' r' ..,SJ

-.,,it. ('1 it:: r

, d1 th j2 f1 r. ,·nrs) l~h 6li fing"'rs)

V Ir 5 phns~ 50 cy~le mot or

Jiuic Pdtts ( Ad r er enclostd ~1sts) W.v, lr-vete1

~rut.: 11. p .. YMEN'T• 10~ ,J!' tl.t" pr!.c(• 0f S1b~lng 0f ~~c cont r ~~t.

of each mach i ne, payablP.

80 . 00 325 . 00 375 .00

56 . 30 2 , 304. 30

67.00 at the t i me

1.:._1Jc y ·1"'1d F!nal Payme rn; The balance ot tne price of each ma chi ne sh.111 l". pa 1d in , s~i or in the rorm of' a lette~ o f credit to be reL 0 i\Cd not les3 than ninety days pri or to the anticipated shippi ng da, ... c,f ~H .. h n,a.ch1ne: . J'he lE:tter of credit s hal l be i rrevocable and oonf lrm~d hy a pr 1.me CTllJ t.:ed States bank , and shall bear a val idity d-"l.tt, exterd ing slxty d~J 3· b.:.yond t.he date of a~l i very of each machine. E,ch letter of crealt sha ! l te payable ag&tnst snipping ~ocuments. AlJ pay,n:nt: t·v b' :\1("'\.lf' lr) llr.~ted States f'unds.

v 11vtr·y· 2 tc ~ ncnths 1f+-1?r r~ce1pt of fi11n o rde r and deposit payment.

A.Jl .rr· • .1:..bje.c. t h} r, .. v1R!. 1,12 to pri cE·s prevall i ug at t ime o f deliver:,.· N--t ;. lt.,!1 .. - 35,0' ~ 11:~. vz )sa .-1~1ght - 42 , 000 lbs. {Approximate)

, _______ ----- ---


FA/1514

NETHERLANDS EMBASSY WASHINGTON 9, D . C.

Mr. J. Fajans Assistant Loan Officer International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D. c.

Re: Loan No. IB-15- NE

Dear Mr. Fajans:

1470 EUCLID 9TRE£T. N . W .

Tl:L. ADAMS 1662

CABLES: NETHERFIN

September 4, 1952.

I am enclosing the following documents which I have received from the Herstelbank.

1) Tentative Masterlist reflecting the status of the various projects as of August 28, 1952.

2) Draft of List of Goods.

3) Draft of Schedule I, Description of Projects. This new Schedule I does not differ from the earlier version except with respect to some of the amounts allocated and to the addition of the cylinders for Mekog. Although some of the allocations have been reduced , this does not mean that the proposed investments will not take place. Financing, corresponding with the reductions, will be done from other sources. For that reason the description of the projects has been left unchanged. The most important changes in the allocations are the following:

a) Project X (Stork Machinefabriek) has been reduced to $ 50.000. - as six boring-, tapping-, turning- and drilling machines with a value of approx$ 125 . 000.could be more advantageously purchased in Germany . Currently, German producers are quoting lower prices and earlier delivery than Swiss and U.S. suppliers .

b) Project XXI (Stork Weefgoederen) was reduced for the same reason.

c) Project XXV (De Schelde) was reduced with Sw. frcs . 225 . 000. -. It is no,, certain that the delay which

- 2 -

has occurred in the delivery of the machine tools financed under this project will cause a considerable delay in the performance of certain services related to these machine tools. It can, therefore, be anticipated that payment for these services will take place subsequent to the closing date of the Loan. Consequently, Herstelbank has arranged that such payments will be made out of other services. This will not in any case be detrimental to the executions of the Project. I trust that this explanation will suffice you for processing these papers.

Also enclosed are the following documents which are related to some of the changes mentioned above.

l)

2)

3}

Breakdown List of Goods {Project IV) together w.ith our letter FA/1515 of today addressed to the Treasurer's Office.

Breakdown List of Goods {Project XXI) together with our letter rA/1516 of today addressed to the Treasurer's Office.

Application No. 296 for Qualified Commitment together with our letter FA/1517 of today addressed to the Treasurer's Office.

Very truly yours,

J. Grooters Asst.Financial Attache

SCIIBDULE 1

Description of the Projects

I. Glass Project - N. V. Vereenigde Glasfabrieken .

The plant of the Company at Schienam is to be modernized by the replacement of part of the old equipment with new machines . These will consist mainly of press , annealing and polishing apparatus and bottl e-formi~g machines. The replacement program will enable the company to attain an annual capacity of 77 , 500 tons of container glass and household glassware, compared wit the present 47,100 tons.

III. Chemical Project - Staatsmijnen.

The Company's program is designed to utilize more efficiently the coal production of the Netherlands .

A new plant will be built in Limburg with an annual phenolproducing capacity of 6,000 tons .

The power generating capacity at the "f.mma" mine in LiMburg will be increased by the installation of a boiler and a 25,000 kw . turbo generator .

The equipment for the production of sulfuric acid and potassium ferrocyanide from hydrogen sulphide and hydrocyanide acid in Limburg will be modernized and the capacity for production of sulfuric acid will be increased from 40,000 tons to 58,ooo tons of contact acid and of potassium ferro-cyanide from 180 tons to 2,380 tons per annum .

A new plant will be erected in Limburg capable of producing annually 1,Poo tons of phtalic anhydride from the napthalene derived in the coking proce_ss.

A new coking plant will be established at Beek and the existing coking plant at the "tfauri ts" mine will be expanded and reequipped. A new coal bunker and conveyor, together with a new coke sieving install ati on will be erected to service the "llaurits" plant . The coking capacity of the Company. will thereby be increased from 1,675,000 tons to 2,497 ,000 tons per annum, and the capacity for coal gas production from 177 million to 352 million cubic meters per annur,. The Company ' s capacity for the production of anthracene (4o per cent) •·Jill· be increased from 700 tons to 1,580 tons per annum, of naphthalene from 4,500 tons to 8,520 tons per annum, of creosote coal tar from 25,000 to 36,250 tonf> per annum, and of coaltar pitch from 30,000 tons to 42,000 tons per annum.

A new plant will be erected in Limburg with a capacity for the production of soda ash of 27,000 tons per annum. Ammonium chloride, as a byproduct, will be sold as fertilizer .

- 2 -

The fertilizer plant of the Company at Limburg will bf modernized and its capacity will be increased from 58 , 000 tons of nitroge per annum to 105,000 tons, including the output of the soda ask and sulJ ate plants of the Company.

A new plant will be erected in Limburg for the produc ion of urea, with a capacity of 6,000 tons per annum.

A new plant will be built consisting of a unit for th,~ production of cyclohexanon and a unit for the production of caprolactam Yhich is the raw material for the manufacture of r:nkalon fiber . The caprolai~tam unit will have an annual capacity of about 3,600 tons.

The producer gas plant at the "Maurits" mine will bE:l rnodernized to enable it to obtain producer gas with a calorific value of 2,~00 calories per cubic meter.

IV. Chemical Project - N.V. 1Taatschappij tot Exploitatie van Kooksovenjassen.

New equipment will be acquired and installed at the C1:>mpany ' s plant at IJmuiden in order to increase the plant's fertilizer production capacity from 16,000 tons to 51 , 000 tons of ni~o~en npr annum. Pttr'lc:b&se etf 3 , 000 additional anhydrous ammonia cylinders7in order' to step up export of this chemical (estimated yearly quantity appr. 400 tons).

V. Chemical Project - N. V. Koninklijke trederlandsche Zoutindustrie .

Equipment will be installed at the Company's plant at Hengelo for expansion of salt , chlorine, hydrochloric acid, sodium hydroxide and copper oxychloride production and for the replacement of worn-out apparatus. Production capacity of table salt will be increased from 250,000 tons to 4oo ,ooo tons per annum, of sodium hydroxide from 1 O ,ooo toins to 20 , 000 tons per annum, of chlorine from 9 , 000 tons to 24,000 tons per ,annum , and of copper oxychloride by 700 tons per annum.

VI . Chemical Project - N.V. Fabriek van Che"1ische Producte:n Vondelingenplaat.

The Company ' s plant at Vlaardingen will be modernized and expanded to increase the annual capacity of finished aniline dyes from 1,200 tons to 3 , 200 tons per annum, and to permit the production of other chemicals , including formic acid, oxalic acid and sodium sulfate .

VIII Chemical Project - N. V. Kempensche Zinkmaatschappij.

i,'odernization of the existing plant at Budel will be undertaken to increase the capacity for roasting zinc blends , by the installation of a Dwight-Douglas furnace . In addition by replacing the chamber with the contact process, sulfuric acid production capacity will be increased from 65,000 to 92,000 tons per annum.

X Hachine Project - Machinefabriek Gebr. Stork & Co. N. V.

By the acquisition of new machine tools, the Company will complete it: new installations at Zwolle, which will specialize in the production of diesel motors, thus permitting the Company 's plant at Heng·elo to concentrate on turbines and boilers. Production capacity is expected to increase by 20 per cent per annum.

- 3 -

XI. Vachine Project - N. V. Koninklijke Ned~rlandsche Grofsmederij .

Lathes, shears , and chain welding and bending machines will be installed in order to expand and modernize the Co pany ' s equipment at Leiden . The capacity for the production of crankshafts "111 be increased from 5,ooo tons to 6,000 tons and of chains from 2 , 500 tons to 3,200 tons per annum.

XII . Wire Project - N. V. Draadindustrie 11 Ne1erlandia" .

To prevent decline in production which may aMount to 25 per cent , due to outmoded-and worn- out machinery , the Company will replace ol d wire-maki ng equipment in its plant at Jutphaas . New wirie - nail and drawing machines wil l also be acquired , and apparatus for staining and water cooling.

XIII . El ectro- technical Project - N.V. Hollandsche Draad- en Kabelfabriek .

The Company will erect a new plant at ,Amsterdam for the production of rubber, polythene and saran yarn wire cables. Production capacity for rubber cable will be increased by 11 per cent . Plastic and saran cable wi l l be produced for the first time in the Netherlands . tquipment for coating paper with polythene resin having a capacity of about 8,000 cubic meter/8 hour shift will be installed .

XIV. F.lectro- technical Project - Willem Smit & Co's Transformatorenfabrie~ N.V.

The transformer plant of the Company at Nijmegen will be expanded and the capacity for production of transformers and generator wire will be increased by 25 per cent per annum.

XVI. Paper Project - Koninklijke Nederlandsche Papierfabriek N. V.

A sectional electric drive will be installed for the new paper making machine purchased in Germany which paper machine v·ill be added to the four already in the Company's plant at l~astricht and the latter will be improved Paper coating machines wil l also be acquired . Capacity will thereby be increased from 11,400 tons to 23 , 4oo tons per annum.

XVIII. Textile Project - N.V. H. ten Cate en Co .

The Company ' s plant at Almolo will be expanded and ~odernized by the acquisition of new spinning and weaving maolhinery so as to increase its yarn spinning capacity from 5,100 to 5 , 900 tons and its capacity for production of finished goods from 40 million to 45 million square meters per annum.

XIX. Textile Project - N. V. Katoenspinnerijl Ba...,shoeve .

By the acquisition of new spinning machinery , the plant at Enschede will be modernized and the capacity of the roving department increased . Capacity will be increased from 5,700 tons to cotton yarn per annum to 7,400 tons.

- 4 -

XX. Textile Project - De Wit's Textiel N1jverheid N.V.

In order to make more efficient the Company ' s production of cotton and woolen fabrics and blankets , equipment of the plant at Holland will be modernized by the acquisition of new machinery for cleaning and dyeing . Output per worker per hour will increase by 15 per cent and production capacity will increase by 12 per cent per annum.

XXI . Textile Project - N. V. Koninklijke 1'Jeefgoederenfa briek C. T. Stor k & Co .

The Company will build a new factory to replace the present one at Hengelo . Capacity for production of cotton fabrics will be increased to 327 tons per annum from the present 221 tons.

XXII. Textile Project - N. V. Hollandsche Textielindustrie .

The Company will increase its wool yarn output and its weaving Mill at Goirle will be modernized , with a resul ting increase in capacity from 500 ,ooo to 550 ,ooo square meters in capacity of finished ,,,oolen fabrics per annum. As a result, the Company will be able to supply all its wool yarn requirements .

XXIII . Textile Pro,ject - N. V. Textiel Industrie ,~aatschappij "Apeldoorn". v

Twenty stitching machines will be added to the equipment of the plant at Apeldoorn so as to increase its underwear production capacity from 1,600,000 to 1,700,000 units per annum.

XXV. Gear 1"anufacturing Project - N. V. Koninklijke Haatschappij "de Schelde", Vlissingen.

JiTachine tools and ,auxiliaries vdll be purchased for cutting and grinding spur and helical gears and a new building erected to house this equipment . This will be the only plant of this type in the Netherlands and will produce gears for internal use by the company as well as for the domestic and export markets.

XXVI . Textile Project - N.V. Spinnerij Oosterveld, F.nschede .

The spinning frames of the company will be converted for , higher speed operation and now high speed frames ~ill be installed for modernization of the plant and for replacement of war- damaged equipment . It is est1Mated that production of cotton rayon , woolen and mixed yarns will be increased by about 750,000 kg. per year with substantial improvement in qua lity and with lower raw material costs.

XXVIII . Textile Project - Stoomspinnerij te Nijverdal N.V.

This project involves the modernization of the cotton spinning equipment of the Company by the addition of new lapwinders, drawing frames and highdraft frames . An increase in production of 200 tons of yarn per annum is anticipated as well as improved quality and reouction in costs.

- 5 -

XXIX. Textile Project - H. P. Gelderman & Zonin N. V.

The spinning and weaving departMents of the Company wil l be modernized by the addition of autonatic looms for rayon production and of miscellaneous spinning equipment . The new spinning equipme twil l provide an increase in production of yarn of about 60,000 kilogra~s per year while the new looms wil l provide a net increase in production of approximately one million meter s per year of woven fabrics.

XXX. Textile Project - Stoor.'lVleverij te Nijveirdal N. V.

Twenty- four modern autoriatic looms for 11,1eaving rayon fabrics v,ill be installed with rope washers and stripping ~ai~hines for general use in order to improve quality and reduce costs .

, I

I

RT-~VISED LIST OF GOODS TO BE PURCHASED WITH PROCEEDS OF' LOAN FRm,r

INTI'RNATI ONAL BA~1K FOR RFC01JSTRUCTION AND DEVELOPMENT

(Amount expressed in United States Dollars)

Goods

- N. V. Vereeni gde Glasfabrieken . Equipment necessary for modernization of gl ass factory including presses , annealing and pol ishing apparatus , bottl e forming machines and

t r ansport installation

III - Staatsmijnen . a . Phenol Plant .

Equipment necessary to build a new plant , including a mercury boiler , measuring instruments and stainless steel.

c . Naphthalene and anthracene plant . rrection of a ~ermanent pl ant for the production of naphtalene and anthracene with modernization of the present equipment including centrifuges and measuring instruments .

e . Potassium ferrocyanide plant . F.quipment to modernize and increase the production of potassium ferrocyanide including measuring infitruments .

f . IMproved Seabord process for hydroven sulohide removal . Equipment to modernize and increase the production of sulphuric acid including measuring instruments and stainless steel .

g. Phtallic anhydride plant . F.quipment necessary to erect a new plant producing phtallic anhydride including valves , measu~ing instruments and evaporating pans .

$

$

Total Amount to be purchased

- 2 -

Forward $ 413 , 250. 00

h . Soda plant . 1'easuring instruMents and other equipment necessary to erect a new plant for production of soda ash.

j . Coke Plant . Engineering and equipment to expand and re- equip a coke plant and erect a new one including special iron parts and parts for oven Machinery.

k . Urea plant . ?4'easuring apparatus necessary to erect a new plant for production of Urea.

1 . H.P. Central Station . Valves , feedwater and steam regulating installations and further equipment to increase the power generating capacity of a mine in Limburg .

m. Fertil izer plant . F.quipment including stainless steel and measuring instruments to modernize and expand fertilizer production.

n . l"iscellaneous and contingencies. (subject to approval by the Bank)

o. Cyclohexanon plant . Equipment needed for a new plant including measuring instrUMents and salt bath.

p . Caurolactam plant . Fquipment needed for a new plant including measuring instruments and distillation apparatus.

q . Oxygas plant. r.quipment needed to modernize a plant including measuring

1, 544, 200. 00 and controlling instruments $

$ 1, 957 , 450.00

- 3 -

Forward $ 1,957,450.00

IV - N. V. 1~aa tschappij tot Exploitatie van Kooksovengassen . Various apparatus and material necessary to increase the produc-tion of the several departments contributing to fertilizer production. Anhydrous ammonia cylinders for export purposes. 322,350. 00

V N. V. Koninklijke Nede rlandsche Zoutindustrie . Equipment to expand salt, chlorine, hydrochloric acid and other chemical production including centrifuges, compressors and \lo.,t.oo.oo coolers $ e-.,z, ,08 , M)

VI - N.V. Fabriek van Chemische Producten Vondelingenplaat . Autoclaves , compressors, dryers , pharmaceutical equipMent, freezing unit and other equipment necessary to modernize and expand a plant of aniline dyes . $ 82 ,988.31

VIII - N. V. Kempensche Zinkmaatschappij. Equipment necessary to modernize a plant producing zinc blends and expand production including one fur-

$ 292 ,990. 82 nace, blower and catalyser.

X - J~achinefabriek Gebr . Stork & Co . N. V. Boring , tapping, turning and drilling machines necessary to complete a new installation specialized in the

$ 50,000. 00 production of diesel motors .

XI - N.V. Koninklijke Nederlandsche Grofsmederij. Vertical turret lathe and billet shears cutting machine necessary to

.$ 64, 679. 86 expand a plant producing crankshafts .

XII - N.V. Draadindustrie "Neerlandia" . Fine Wire drawing machines and accessories to modernize a wire plant. $ 38 , 268. 00

$ 3,o~,3260 99

- 4 -

Forward $ 3,03q,a26.99 XIII - N.V. Hollandsche Draad- en

Kabelfabriek. Bxtruders and other equipment necessary to modernize the pro-auction of rubber cable and Manufac-ture saran and polythene coated paper. $ 24o,ooo.oo

XIV Willem Smit & Co's Transformatoren-fabriek N.V. F.quipMent including wire enamel machines, welding machines, rotary shear and apparatus for high voltage

151 ,260,59 testing. $

XVI - Koninklijke Nederlandsche Papierfabriek. Fquipment for the modernization and improvement of the paper making process (S. of a paper mill. $ 115 ,159.lS

XVIII - N.V. H. ten Cate & Co. Spinning, weaving and other textile machinery for modernization and expansion of textile mill. $ 1,949,140.00

XIX - Katoenspinnerij Bam~hoeve. Drawing frames and other textile machinery for modernization and in-crease of production of a textile mill. $ 697,400.00

xx - De Wit's ~extiel Nijverheid N. V. 11achinery for cleaning and dyeing necessary to increase production of cotton and woollen fabrics and blankets . $ 116,500.00

X..XI - N. V. Koninklijke v·eefgoederenfabriek C.T. Stork & Co. Equipment including winding, dye-ing, drying machines, looms and pirns necessary for a new cotton fabrics factory. $ 320,950,00

XXII - N.V . ~ollandsche Textielindustrie. Four cylinder wool card and vacuum stripper and waste conveying equip-ment necessary to increase and modernize weaving mill. $ 68,612.00

, $ ·-&, $5, ~Ii g.ga ~ ,(,~'l ,O't .,. 6.~~q O 0

- 5 -

Fo!rward

XXIII - N. V. Textiel Industrie 1~aatschappij "Apeldoorn". Stitching machines necessary to increase output of underwear.

XX:/ - N. V. Koninklijke Maatschappij "de Schelde". Equipment for cutting and grinding spur and helical gears for machine plant and shipyard.

XXVI - N.V. Spinnerij Oosterveld, Enschede . Equipment for production of yarns including ring spinning frames and high draft speed frames

XXVII - Unallocated.

XXVIII - Stoomsninnerij te Nijverdal N. V. Equipment for the production of cotton fabrics including lapwinders, frames, switches .

XXIX - H. P. Gelderman & Zonen N.V. Spinning and weaving equipment f'or production of yarns and fabric.

XXX - Stoomweverij te !'rijverdal N. V. Twenty four 6011 looms for weaving rayon fabrics, rope washers for bleaching plant and stripping machines for weaving tubes.

total

$

$

$

$

$

$

$

], c~ ~ ,Qijq, 10

~~

296,500.00

203,274.51

~1~Si~ 1.cu·, ,,,, 2.ct

255,800.00

7,930,000.00 ===================

.~ ,,

'l'he file1 r .3, 1952

Alphona J •• de Leeuv

Date or Loan ~grenen\

Amount of Loan, Amount 1thdnwn Undiebursed Balance ot Which Inevoeabl;r Co ltt.eds

July 26, 1949

7,930,000.00 2,862,l29,2:Z 2,o67,679.43

OUJ"ing the th pl'Ogr sa report1 shCNina the poa1tion u ot

J\me. )Ot 1952 ~ere r celved from the Reretelbank on all projects

being financed under tile loan. Th••• reporta •how that a number of

the projecie have now been completed. A aatistactn17 explanation

baa beell received tro• ~he Heratelbank tor the poatp nement or co letlon of certain projects being carried out by the Stastaaynen •

CCI Mr. Prud' h Mr. Foster

AJl"dttLeew1 ab

...

(2) v"

74~ Letter No. EUL"1f

Maatsehappij tot Financiering van het Nationaal Her9tel N.V.

Kneuterdijk 6 The f!agtle, The Netherlands

Gentlemen:

September 2. 1952

Through the intermediary of the letherlands Embassy we have

rece1Ted. the Progress Reports for July 1st of the projects :financed

out of the l3a.n.k Loan and we ahould like to express to you our appre

c1at ion for the~~ in which they were prepared.

We noted in Repo~t No . 7 of oject XXl (Stork Weefgoederen)

that the Company vas reconaidering its position and promised to

sunply you with a new List of Goods. fhe present report (No. 8)

however does not show aD7 difference with the former one. We

should appreci~t• receiving some information about this ease.

cc: Netherlands Embassy (Mr. Soutend1jk)

AJ'Mdateeuw:al:rp

Very truly yours

Henry w. Riley Assistant Treasurer

I i

FORM No. 57 ( 5. 48 l INTERNATION. BANK FOR RECONSTRUCTION ANl EVELOPMENT

OFFICE MEMORANDUM TO: Mr. Heney W. Rlle7 DA TE: August 27 t 1952

FROM: HU&h :S. R1

SUBJECT:

Attached to their letter of Augnst 18 the Netherlands Embassy transmitted Progress Reports ot July l, 19.52 on the Loan-financed Projects. From these we learn the following:

(J'igures in brackets are from reports of April 1, 19.52)

~"'Cup I Projects (~ank participation less than $200,000)

Symbol

III a

III o

III e

... !I f

III g

Ill k

III l

III o

III p

Bame of Project

E::l:pected or actual date of completion

Loan Fund.a Spent

Staatsmijnen -Phenol Plant

Sept. 1, 1952 $ 2),000 (JuJ.7 1, 19.52) (21,000)

Staatsmijnen - Napht~ June 1, 1953 line & Anthracine (Jane l, 1953)

Staatsmijnea • Potas- Sept. 1, 1952 siwn Ferro-Cyanide (July 1, 1952)

Staatsmijnen - B2S Sept. 15, 1951 Removal

StaatS11ijnen • Phtalic April 3, 1951 Aneydride Plant

Staatsmijnen - Urea Plant

Staatsmijnen - H.P. Central Stat ion

March 15, 19.52

July 1, 19.52

Staatsmijnen - C7clo- Sept. 1, 19.52 heX8ll.on Plant (July 1, 1952)

60,000 (18,000)

4,000 (4,000)

12,000 (12,000)

50,000 (48,000)

.5,.500 (4,700)

26,700 (26,700)

.5,000 s • .:r. (5,000)

1,000 (1,000)

Remarks

Total postponement 7 months

Total postponement 18 months, caused by stepped up production in existi.Dg plant which slowed down building of thie plant's extension.

Total postponement 18 months

Project completed

Project completed

Project completed

Project completed 11 months after original estimate •

Total postponement J months

Staa.tS11ijnen • Capro- Sept. l, 19.52 lactam Plant (Jul.7 1, 1952)

48,ooo Total postponement 2 months (22,000) 47,000 s.r.

(20,000)

S.F. indicates that the preceding figure represents a dollar equivalent of Swiss francs. l!t93

I •

-2-

Name of Expected or Loan Symbol Project actual date of Funds Remarks

completion Spent,

III q Staatsmijnen - O~gas Sept. 1, 1953 $10,000 Total postponement 21 months. (4,700) Whereas too sharp estimates

and del~s in some deliTeries made completion before winter of 152 impossible project has been postponed for full 7ear because additional gas which new plant can produce is only needed during wintermonths.

IV Mekog AprU 1953 71,000 Total poetponement 6 months. (Oct. 1952) (67,000) The latest postpon~ent is

67,000 S.F. due to the fact that steel (67,000) cylinders for liquid ammonia

were added to the project.

V Zoutindustrie Sept. 1952 173,000 Only item still to be delivered (Sept. 1952) (129,000) are spares for salt screens

52,000 S.F. (52,000)

VI Vondelingenplaa.\ June 1952 8J,OOO Project completed (Sept.1952) (83,000)

X Stork Machine- Dec. 1952 41,5000 No changes fabriek (Dee. 1952) (41,000)

XI Grofsmederij Project completed

VTI Neerlandia. --- Project completed

XIV Smit Nijmegen Aug. 1952 8,900 Postponement due to delq in (April 19.52) (8,900) delive~ of high voltage

137,000 S.F. sphere-gap from Switzerland (137,000)

XVI Kon. Bed. Papier- March 1952 115,000 S.F. Project completed fabried 104,000

xx De Wit's Textiel- Sept. 1952 lJ,000 No changes nijverheid (Sept. 19.52) (13,000)

100,000 s.F. (100,000)

XXII Hollandse TeXtiel- -- Project completed industrie

XXIII T.I.M.A. - Project completed

r •

... !3 -

Name of Expected or Loan Symbol ProJect actaal date of Funda

completion Spent

XXVI Oosterveld -XIX Kon. StoomweveriJ to Mq 1952 $103,000

lfijverdal (Mq 1952) (40,000)

Groep II Projects (Bank participation more than $200,000)

I Vereen1gde Glas- Oct. 1952 $392,500 tabriueii (Oct. 1952) (392,500

82,000 S.l'. (82,000)

l .. J.. h Soda Plant June 1, 1953 79,000 (Mq l, 1953) (79,000)

8,000 S.F. (8,000)

III J Coke Pl.ant - Dec. 1954 387,000 Emma II (Dec. 1954) (347,000)

. . m Fertiliser Plant Nov. 1, 19.52 175,000 (AQ€. l, 1952) (175,000)

VIII Kempensche Zink- -maatachappij

XIII Draka July 1953 (July 1952)

193,000 (158,000)

Remarks

Project completed

Project completed

. No change s

Completion· of engineering postponed tor another 3 months untU October 1, 1952, deliv-eries with another 2 months until April 1, 1953. Total cost of project is $830,000 (750,000) of which invested $650,000 (540,000).

Completion of en.gineerin& postponed for another 2 months until October 1, 1953. ToteJ. cost of project 1a $6,200,000 (5,500,000) of vhich invested $3,200,000 (2,500,000).

Engineering completed.. Com-pletion of deliveries post-poned with another 3 months antil October 1952. Total investment in project $Z~O (2,650,000).

Project completed

The original items will all be ready for use in August 1952. However, a new item has been added to the list, namely an Egan Film Laminating Machine with Sheeting Die. This item will be ready ~or use in Ju11' 1953.

1 '" ~ . . . •• i:)

I •

I -4-

Name of EJ::pect ed or Loan Remarks Symbol Project actual date of Funds

completion Spent

XVIII fen Cate Oct. 1953 $1.603.500 In general completion dates (Oct. 1953) (1,510,000) of different items have again

been postponed with several months.

XIX Bamshoeve March 1953 6,000 No changes (March 1953) (6,000)

222,000 S.F. (222,000)

XXI Stork Weefgoederen - 61,000 At the time of the fol'IDl9r (61,000) Progress Report this Comp8!11' 155,ooos.i.waa reconsidering its position

(145,000) and had promised to provide a nev list of goods. We have not 7et received this information and should write the Heretelbank about it.

De Schelde March 1953 1as, ooos.F. No changes (March 1953) (185,000)

Gelderman & Zonen June 1952 244,ooos.F. The project is held up by (Dec. 1952) (230,000) del~ in deliver, of conver-

aion equipment for ring frames Mr. Sta,nlq MUler has been asked by the Kerstelbank to look into this matter.

· ~

A draft-letter to the Herstelbank inquiring about project XXI is attached.

~J.JlldeLoeuw:al AttachmeJlt cc: Mr. J. J'a.Jaas

.. .. ,.

DRAFJ!

Maatschappij tot Financiering van het Nationaal. Herstel N.V.

XneuterdiJk 6 The Hague, The Netherlands

Gentlemen:

Through the intermediary of the Netherlands Embassy we have

received the Progress Reports for July 1st of the projects financed

out of the :Ba.nk Loan and we ahoul.d like to express to you our appre

ciation for the WtJ:¥ in which they were prepared.

We noted in Report Bo. 7 of Project XXI (Stork Weefgoederen)

that the Co~ was reconsidering its position and promised to supply

you with a new List of Goods. The present report (No. 8) however does

not show any difference with the former one. We should appreciate

receiTing some information about this case.

cc: Netherlands Embasq (Mr. Soutend1Jk)

Very tral.y yours,

Letter No, EU/715

Office of Financial Counselor Netherlands Embassy 1480 Euclid Street, N.w. Washington 9. D.c.

Gentlemen:

August 20, 1952

We aclmowledge with thanks your letter of August 18,

reference FA/1440, with which you enclosed, in triplicate,

End-Use Reports as of July 1, 1952, for projects under

Loan No. IB-15-NE.

VLAJ0\a, Hug'b B. Ripman

AGB

FORM No. 57 ( 5. 48) INTERNATION BANK FOR RECONSTRUCTION ANL EVELOPMENT

OFFICE MEMORANDUM TO: Mr. Henr,Y w. Riley~

FROM: Hugh :S. Ripman ~ y DATE: August 18, 1952

SUBJECT: Heretelbank - Progress Reports

Upon our request, 1n a letter of June 27. the Herstelbank sent us an explanation by the "Staatsmijnen 11 of the reasons for postponement of the completion dates of Projects Nos. III (c) and (q). ·

Project No. III (e), the naphta.lene and anthraeene project, concerns the expansion and modernization of an existing plant. :Building activities were slowed down because production in the existing plant bad to be stepped up on account of greater coal output since the beginning of 1951. The estimated date of completion is now June 1. 1953.

Project No. III (q) concerns the building of an oxygas plant. Completion of this plant during the fall of this year became impossible on account of too sharp estimates and del~s in some deliveries.

Since additional. oJcygas is only needed during the winter. when existing production falls short of consumption, the management thought it advisable to postpone the completion date of this plant by a full year until September 1953. and to concentrate on the other projects.

11 Staatemijnen" expects to have all ordered machineey for all projects delivered before the closing da.te of the loan.

The explanation seems satisfactory. No action is required.

/.AJMdeLeeuw: ch

MAATSCHAPPL TOT FINANCIERING VAN HET

N ATIO NAAL HERSTEL N.V.

K/1461-Bs/CS.

International Bank for Reconstruction and Jevelopment, 1818 H-Strert P •• , Y a shin Ft on 25 D.C.

Gentlemen,

'S-GRAVENHAGE, ugust 13 I 52. Kneuterclijlr. 6 Telefoon 183890/98

In roply to your letters FU/529 of June 27 and I J/(67 of July 31 concerning the postpone~ent of the completion date of the Projects III c (naphtalene and anthra cene) and III q ( oxygas) v1e herewith send you the explanations given by .. 1taatsmijnen.

The naphtalene and anthracene pro~ect does not concern the building of a new plant but the expansion and ~odernisation of tho existing plant . So the building and installing of the new apparatus has to be ~one whilst production goes on . Normally this project rould have been coMpletcd on the originally fixed date but the output of the coalpits has steadily been increasing and since the beginning of 1951 Coke Plant r~auri ts increased its working up of coal from 7 . 000 to 8 . 000 tons a day. Consequently the other plants had to step up their production which slo •·ed. down building activities.

The completion of the oxygas plant is postponed until f eptenber 1953 for the following reason . Staatsmijnen produce eas for indu~trial and household purposes. ~he production of gas ho~ever is not sufficient during ~intertine ~hen the denand for it is Much larger than in the sum~er. This ~eans that if the new plant could not be completed and made ready for production during the fall of this year completion would not be necessary until Septenber 1953. Rngineers did their ~tmost to get the plant finished but could not make it. The estimated time for building and installing had been cut rather sharp and the delay of so~e delive ries of ordered Machines made it clear that the plant would not be ready this year .

- As the whole -

l

MAATSCHAPPIJ - 1 -TOT FINANCIERING VAN HET

NATIONAAL HERSTEL N.V. 'S-GRA VENHAGE, • ugus t 13 ' I 52

-L.

Kncutcrdiik 6 Tclefoon 183890/98

As the whole of the very extensive invastnent progran is given a short building period~ itaatsriijnen thought it advisable to set liack the co.,.,pletion of the oxygasplant with a year and to concentrate on the other projects in order to get t~e~e co~nleted on the planned dates .

Staatsmijncn eriphasize the fact that the delays will be of no influence on the part financed out of the loan . They expect to have all the ordnred Machinery in their possession before the closing date .

We trust to have thus satisfactorily informed you.

Yours very truly,

1 ·AAT8CHAPPIJ TOT FI~:Jd!CIEHING HCT HATT Q1IT A '\L Hl RST~"'L f' • V •

1~86

,30AH'l13:V AJW-l' l) :,ljibmu,11)1

~\0'<8{81 11001,hT

.r -

tyqqAH::n .. TAAM T3:H ~AV ~H1IH3:I:) ~A I-1 I'i! TOT

.V.~ J3T2.H3H JAA/'!OITA~

.... J

-r..,. • C.

"

Y~l'TT TIVE l~SBRLIST P:3R li.UGUST 28 , 195'2 .

U. S . dollars

I Vereeni gde Glasfabrieken i'f. V. .331 . 000 ,.--

III .Staatsmijnen in Limburg 1 . 499. 290 ,--

IV W. V. Viaatschappij tot Exploitatie van Kooksovengassen 239.350 ,--

V Koninklijke Uederlandsche Zoutindustrie N. V. 175. 150,--

VI Fa bri e k van Chemis che Product en :r. V. x) 82 . 988 , 31

VIII :,r . v. Kempensche Zink 1;aatschappij x) 292 . 990 ,82

X 1-iachinefabriek Gebr . Stork & Co . N. V. 50 . 000,--

XI N. V . Koninklijke iJederlandsche Grof smederij x) 64. 679 ,86

XII N. V. Draadindustrie Neerlandia

XIII Hollandsche Draad- & Kabelfabriek 1,. V.

XIV ·./i llem Smit & Co ' s Transform.atorenf abriek ] .• V.

XVI Koninklijke Nederlandsche Papiei:i'abriek II . V.

J~i/III H. ten Cate Hzn . & Co . T . 7 .

XIX N. V. Katoenspinnerij 3amshoeve

XX De ·.Jit 1 s Textielnijverheid N. V • .

XXI :foninklijke ~leef goederenfabriek C. T . Stork & Co . N. V.

XXII 1J . V. Hollandsche Textielindustrie

XXIII ::.r. V. Textiel Industrie 1~atschappij Apeldoorn

XXV n. ,f. Koninklijke llaatschappij de Schelde

XXVI n. V. Spin..11.erij Oosterveld

XXVIII Stoor::ispinnerij te Nijverdal rr. -, .

XXIX H. P . Gelderman & L.onen N. V.

XXX Stoomueverij te Hijverdal :f. V.

x) these projects are completed .

3s/CS 29 Augustus 1952 .

x)

x)

x)

x)

x)

x)

x)

x)

38. 268 ,--

240. 000,--

8. 928,--

-,-301 o000,--

35'6 . 000 ,--

1 140 000 ,--

1 07 . 000 ,--

68 . 612 ,--

9. 411,78

-,-_,..,..- -

-,--,-

102 . 831 , 33

3 • 981 • 500 , 1 0

Swiss francs

' 82. 250,--

44. 910,--

83 . 000 ,--

52 . 350 ,.--

-,--,--,--,--,--,-

142. 332 , 59

115.459, 30

1 . 648 . 140,--

341 .400, --

102. 500,--

213 . 950, --

-,--,-

296 . 500,--

203 . 274,51

67.474,99

255. 800, --

-,-

3. 649. 341 ,39

' (

(

(

(

(

(

(

(

(

3 53 . 700, - - )

1 93 . 11 0 , -- )

356 . 900, -- )

225. 100 ,-- )

-,- )

-,- )

-,·--,--,-- ,-

)

)

)

)

( 611 . 674- , 30)

( 496 . 186, 35')

( 7 . 087 . 000 ,. -- )

( 1 . 468 . 000, -- )

( 440 . 750, -- )

( 920. 000,-- )

( -,- )

( - ,- )

( 1 . 275 . 000,-- )

( 873 . 572 ,.20)

( 289 . 973 , 80)

( 1 . 100 . 000,-- )

( -,- )

(1 5. 690 . 966 ,65)

Reserve

Total in $

413 . 250,--

1 • 544. 200 ' --

322 . 350, --

227 . 500 ,--

82 . 988 , 31

292 . 990,82

50. 000,--

64 . 679 , 86

38. 268 ,--

240 . 000 ,--

1 51 . 260 , 59

11 5. 459 ,30

1 • 949 . 1 40 , __

697 . 400 , --

116 . 500 ,--

320. 950,--

68 . 612 ,--

9. 411 , 78

296 . 500 ,--

203 . 274 , 51

67 .474,99

255. 800,--

102. 831 ,33

7 . 630. 841 ,49

299 . 1 58, 51

7. 930. 000,------------------------

FORM NO. 57 (5. 48)

TO:

FROM:

SUBJECT:


OFFICE MEMORANDUM FILES nJ Joseph Fajans ~ \ •

August 12, 19$2 DATE:

~ Herstelbank - Dr. Soutendijk's Letter No. FA/1384 of August 6, 1952

~ l. Reference is made to rrr:, memorandum of August 8 on the above subject.

2. Dr. Grooters telephoned this morning and informed me as follows:

(a) The reason why the purchase is being made through the Asiatic Petroleum Company is that this company is purchasing agent for Mekog in the United States. No commission is being charged by the agents in connection with this purchase.

(b) The addJ,ional production of 400 tons of liquid ammonia per annum will be sold as follows:

Country Quantity Use

Thailand 100 tons Rubber Uruguay 20 " Cooling Colombia 20 If Cooling Malaya 20 II Cooling

20 If Rubber Indonesia 100 II Oil Refining

100 " Rubber Turkey · 20 If Cooling

3. I discussed the above information with Dr. Rembert. We agreed that the Bank should accept the Herstelbank request, as summarized in Dr. Soutendijk 's letter. We were, of course, perfectly aware that it would be impossible to substantiate the validity of the information by instituting a market survey in all countries listed above.

4. I further discussed problems of disbursement with Mr. Rigby and agreed that we would pay $25, 000 for the cylinders from the existing allocation of Mekog, but would make a formal change in the list of goods as soon as requested by the Herstelbank. While making a formal change, we would slightly amend the description of the Mekog project and of the imports required for it.

cc. Mr. Rigby

Doar Dr.. Gl"ootenu

This will ocnt'im our telephc:me caivereat.ion ~ this ai'temoon 1n wbiob l informed JOU that e are prepared to tmanee under cat.gory IV (tlekog) of the list ot goods or the fier&telbank Loan th! purchase or qllnde:ra tor llqu1d ammonia.

Ao Dr. outen<UJk stated 1n b.1.s letter FA/1.384 or Aunust 6., 1952~ the initial purchaN c4 ,00 eyllndara could be debit.ad to t.he existing allocatlcm tor Cat&gory IV. ~ addlt;imal, purcbaaea, holre,rer, would neoes•i tate an increase in this allocat10ll. 1',e will be pleased to entertain a request., tor a t.ranster of tunda ~ Categoey nI (c. 'l. Stork & ~) to category IV whenever t,he Beratelhank will w1sh to approach us. It should be understood that a rormaJ. rrondment t.o the l18t of goodD would have to bG executed at that tine.

You may wu;h to tornrd 'bhio ooammicaticn to '!be Bagua. A cow ia thc:i·etore attached tor your files.

rr. J . orootera Ansistant F:lnancial At taeho etherl.L~ &nt>assy

1470 Euclid Stn,e~., N •• ashington. D. c.

cc. Misc Morsey Mr. Rigby

JFajans/bvm

Ve-q t~ yours,

w

F'ORM NO. 57 (5. 48 l INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM TO: Files DATE: Aug. 8, 1952

FROM, Joseph Fajans l · v S UBJECT: Herstelbank - Dr. Soutendijk' s letter FA/1384 of August 6, 1952.

After discussing the contents of Dr. Soutendijk's letter with Dr. Rembert and Mr. Verheyen, I telephoned Dr. Grooters this morning and asked him to enquire of the Herstelbank by cable:

JFajans/meg

(a) what is the reason for the purchase not being made directly from the manufacturer but through the Asiatic Petroleum Company; and

(b) in what countries and for what uses the addi1k>nal annual production of 400 tons of liquid ammonia would be sold.

. .. NETHERLANDS EMBASSY

WASHINGTON 9, D. C.

OFFICE OF FINANCIA L COUN S ELOR

1470 EUCLID STREET . N , W ,

T~L. A DAMS H S82

CABLE S, N ET Hl!A,- IN

\.

FA/1384

Mr . J . Fajans As~iftant Loan Officer Intetnntional Ennk for Reconstruction

and Development 1818 H Street, N. w. Weshington , D. C.

Re : Loan No . IB-15-NE

Dear A!r. Fajans:

August 6, 1952

We will shortly request the Bank to reduce Project XXI (Stork) by an amount of $280,000.- Definite informution on this point is not available at this tine, but I ···ish to bring this proposed reduction to your attention as an introduction to the following matter.

The Herstelbank would ve1.-y much like to increase the value 'r ~. of Project IV (!(_ekog) in order that St~en will be able to ~,.~,. finance under the Herstelbank loan a proposed purchase of a large ,\t~~rt\ quantity of cylinders for liquid runmonia. . ll,. ·~~-

One order for 500 cylinders {each cylinder to contain h8 kg) ~ at a total cost of $25, 000. - has already been placed and Herst~lbcnk desires to bring this order under the Loan . Delivery can be effected on September 15, on the condition that p~y~cnt be effected promptly. Fo.,.. this reason, Bers tel bank \''ould appreciate receiving a prompt de-cision on the part of the Bank.

A further purchase of 2, 500 cylindeib (for $125, 000.) l ::: planned. These cylinders can be delivered in about four monthr tiwc, on the condition th~t the order is pl&ccd within a fe~ days aft~r August 20, 1952. It is the intention of the management of Mekog to decide on tlis purchase at their meeting on August 20th and Herstelbank would appreciute learning your decision by August 18th, if possible .

It mny interest you to know th3t these cylinders are manufactured by Pressed Steel Tank Company of Milwaukee and the sale will take place throueh Asiatic Petroleum Company of New York.

The Herstclbank Y~shes to present the follo"d.ng facts in substantiation of their request to use an c.itount of "150,000 . - of

FA/1384 2 . August 6, 1952

the Loan for this purpose.

Fluid ammonia is extensively used in the rubber and petroleum industries and for purposes of coolinb. Nekog' p-oduction of fluid ammonia is fully exported which i~ an attractive operation since the raw materials do not involve expenditures in foreign currency. As you ~~11 reali7e the major raw materials for tlir product are coke, •vhich is manufactured by Staatsmijnen, and air.

A purchase of 500 cylinders will enable L,/ O"' to export 34,000 kg of fluid ammonia or, 68,000 kg annually ~ince a cylinder can be used on the average oft · ce a year. Tte ~lice for fluid ammonia is around f l. 1..75 per kg 1..ich brings annual sales for 500 cylinders fl . 119, 000 annually. These proceeds are fully collected in various foreign currencies . At a total purctase of 3, 000 cylinders the annu....J. export proceeds in foreign curre ciPS iould amount to fl. 714, 000. - Moreover, additional income in foreign currency vrould be achieved by the shipping companies, and such ~dditional inco~e would be relatively high.

Mekog's export sales so far have been very gratifying as folio s from the follo\'ring figures (1000kg) .

1951 1952 (6 months)

Curacao l?. 1 6.4 Indonesia 313.0 269.3 Ne Guinea 1.3 0.9 Malaya 88.7 12. 5 Egypt 18. 0 2.4 Turkey 10.0 Venezuelll 15.5 Others 1 .9 0.7

435 .0 317.7

It is expected thQt these markets can be further developed and that new lt.'.lrkets can be successfully entered, notably Mexico, Thailand and Turkey. For that purpose, however, Y.ekog needs a considerable addition t its stock of cylinders, which 1~s incr eased through Interbank fiL ..... cic- or an earlier occasion, and would, therefore, like to purchase the 3, 000 cylinders mentioned above .

I n consequence, Herstelbank "'ould very much rppreciate to learn from you, whether the Bank will in principle be prepared to finance this purchase . If such approval can be given, :we will submit, in due course, the necessary forGs . As stated above, b lli.11 shortly requests reduction of Project XXI , although this reauction ie not

. .. ..

( \

FP/1384 3. Augusut 6, 195"

related to the expansion of Project IV, so that funds would be avai lable .

In view of the deadlines inr icated above, I 1"ould appreciate hearing from you as soon as is convenient.

Very truly yours,

L . R. yr. Soutendij k Financial CounFelor

jij,l QB ,- ....- \ [O,o~ o

371. . 'tt', 7J - :.toe~ O

Jul.1' 31. 19.52

Letter Ho. J'JJ/66?

Maatechapp1J tot Financiering Tan het Natio:oaal. Heratel H. Y.

Xneuterdijk 6 The Hague, 1'he Netherlands

0.ntlemen:

We refer to our letter No. EU/529. dated June Z'l, 1952. regarding

Progresa Reports on p1'0Jecte financed out of the l3aDk Loan.

We ehou.ld appreciate it if you could let ue know vhen we mq ex

pect to receive some explanation aa to the reaeons tor postponement ot

the completion dates of Projects Noe. III (c) and (q) .

Very trul.7 you.re.

Heney W. Riley Aaaietant Treasurer

&-. lle1117 V. Ri197 ~ Hugh B. Rip!lffl ~ >f' Dtrml,bank - 'MllDs-t §bl1t II at ,type JO, 1952

At\ached to their letter or July 18, 19.52., the Berstelbank sent ua a cor-7 or their monthly Balanoe She~ aa at June 30, 1952 am Protlt and TAU AccOW'lte for t.he tintt e!x moat.ha or tho year 1952. Thia Balence ~et 11 aont1ensed. below (in milliona or gulldera)·1

I =" ,, ...... .., • .. .uU !ante

Of \\lhicb 11nistry of Finance lll!U) Qt Whlcb Warriek Insur,.

aanoe Comr,>anie• Account• Loans and Ad?anoe•

or Wbloh $ Debtor• or Wh!cb SF Debtors

Pantoipotlon in other Companies

Mlsoellaaaoua Accounts Qt Which ECA 1unds

LIABIT,ifl'Jf& J · ~ounta Pa7ablo Deposits

Jt Which IB.u> Aocount ot Wbioh lBRD SF Account ~ Which Swua Princa 3% Boms Sold by Bank Qt Which Creditors Of' Web SF Credi tore or tnuch Warr!ak In-81ll'&nce c~~·•

Bonow1ns Misc.ellaneouo ttccounta Reaene far Bad Dobta Legal Rosene Capital Bet, Income to Oato Total

September ,0 • , \9'9

-,.s 4.0

-

-,.e 4.0

-

63.1

-

Gwmaziteea Given 4.9

Loane Gl-arited Not Yet Withdrawn ,1.9

21.0

18.6

10.1 10.9

169.9

28.8 7.8

2.'7 525.6

169.3 2.6

SF9.S

SF2.65 10.1 11.1

82.l 22.7 3.1

17.9 7.4

300.0

52~:i 7.6

107.6

June :,o 1922

21.6

17.6

10.4 11.3

2.6 9.9

2.65 10.4 u., 81.9

171.9

169.1

23.9 4.0 r,.s 7.4

300.0

s2i:~ ,.,

105.)

..... Re1117 W. Rile,-

fhe tollow1ng tabl• ahova the ~lcdovn or the z.s.B.D. accounta,

RWX Mlnlatr., of Fina.-, lam> n. 21,578,369. 37 Hlnatecturera' !run ComparJ7 Credit Sid.a .. IBfJ) Dollar Acoouat IB6D Sv1u l'rana Account )f. Maa Bon::!• due De•aber l/S2

Pl. 21rS'18pJ69e37

Ho action required.

xMPll

n. m,9'6.39 J92f9l3.65

10,01'1,929.61 8. '*>,6114. '12 ,2,,w,a,,00

n . 21,m,'6!•"

!'he J'ilee July 21. 19.52

Alphons J. l. de Leeuv

Betherlands Rerstelbank - United Glasevorks (Project I)

We received the Annual Report from the 1.B. T. Vereen1gde Glasfabrieken11

in which 1t is mentioned that, due to restriction meaeu.res in other countries,

to which thie enterprise is exporting ita products, the output ho.cl. to be

somewhat reduced.

AJ'MdeLeeuw:ch

~r No. l!:U/589

Meatschappij tot Financiering van het Nationaal Herstel N.V.

'S-Gravenhage Netherlands

Gentlemen:

July 10, 1952

We acknowledge with thanks receipt of your letter K/1256-ns/CS

of July 7, with which you enclosed a copy of the annual report of

the N.V. Vereenigde Glaefabrieken (United Glasswor~s) ~or 1951.

Very truly yours,

l~ -c:::

Hugh B. Ripman

FMC

MAATSCHAPPIJ

TOT FINANCIERING VAN HET


K/12 56-Bs/CS .

International T,ank for Reconstruct ion and Development , 1818 H- Street N.W., Wash ington 25 D. C.

For attention 11 rr . s . Aldewereld .

Gentlemen,

'S-GRAVENHAGE, July 7, 1952 Kncuterd;jk 6 Telefoon 183890/98

W~ have pleasure in forwarding a copy of the annual report of the N.V. Vereenigde Glasfabrieken (United Glassworks) , Project I.

We trust you will find the inforMation contain~,a therein of interest .

• car~ Jk '1/~0 fi:,

"~· s ... <7 f Ack: - b

7 / q 5"" "1.,,

-----------------JAct~~~~

Kr. ---------- -------· Hema

~-----------:fir IU

b Cll I,

I /

Yours truly ,

I va bl I f ;,

I \

~------------"""---,.. -

J\\l \0

r.~:~~-.,. . . ~ ..

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-•

. • • Letter No. EU/53!+

•

Maatschappij tot Financiering van het Nationaal Herstel N.V.

Kneuterdijk 6 'S-Gravenhage The Netherlands

June 27, 1952

~~~.. G~ntleme~: Ii.

" ~ "' 111 We acknowledge with thanks receipt of a report by the t. •

r( , ~ aging directors of your Corporation covering the year 1951.

~ Very truly yours,

s. Alde.rereld

•

,$

• .. ..

Lttt1r No, IQL5JO

Mr. L. :B.. W. Soutend1J]c ftDADCial Co1m1elor Netherl&Dda &nbase7 1'+70 !uolld. Street. B. W. llasbtngton 9, D.c.

Dear Mr. Soutendijk:

June '1:/ , 1952

lfe wish to ack:nowJ.edp noeipt wi th thanks ot 70ur letter of

June 16, 19.52, reference FA/1105, a.ttacbed to Which 7ou aent ua the

remaining End-Use reports on. th• Iientelbank' a proJec'te, as at

Aprill, 1952. \\'e encl01te a con of om- letter to the Herat.lbank.

:requeatin« aome 1ntormat1on on these reporta.

s. Aldewereld

eloaure (1)

Jun. 'Z'/, 1952

Letter No, W/529

Maatacbapp1j tot J1Danoiering 'f&n het Bat1onaal Hera\el N.V.

Kneu\erd1jk 6 The Bagu.e, The !Tetherlanda

Gentlemen:

We have received, through the intermediary of the Netherlands llmbaSBy, the Progreas Repo1•ts on the rmna1nillet project a fiJJanced out ot the proceeds of the Loan, aa at April 1, 19.52. Ue have noticed the oorreot1ona concerning the amount spent for Project No. XVI. With reapect to Projec\a Boa. III (o) and III (q), we have noticed that the completion dates have been aet back by a whole year. We should appreciate it 11' you could give WI some ~l&Dation aa to the reason• tor these lengt~ postpone111enta. Loolcing :forward to hearing

,., from you at your earliest convenience,

\~ Sincerely you.re,

s. Al.dawereld

c.o. Mr. Soutendijk Netherlands Embasq

F~RM NO. 57 (5. 48) INTERNAllON BANK

TO: Mr. s. Aldewereld

FROM: Hugh l3. B.ipman

DATE: June 26, 1952

susJECT: l{eretolbank - Progress Reports as at April 1. 1952

Attached to their letter of June 16, 1952, Mr. Soutend.1jk sent

ns the remaining Progress Reports as at April 1, 19.52 on the Loan

financed Projects. A review of these Projects shows the position to

be as follows;

Gros., I Projects (Bank Participation less than $200,000):

S7Jnbol Number

III (a)

III (c)

III (e)

III (!)

Name ot Pro.1ect

Staatsmijnen - Phenol Plant

Staa.tsmijnen - laphtaline & Anthracine

Staatsmijnen - Potassium Ferro-Cyanide

Staa.tsmijnen - H2S B.emow.l

Expected Date of Completion

July 1, 1952

June l, 19.53

July 1, 1952

Remarke

Completion date postponed further two months since previous report, for a total of five months. To date, u.s. $21,000 of Loan Fun.de have been spent.

Completion date was given as June 1, 1952 three months ago, six months later than originally anticipated. The Heratelbank should be asked whether the new date is correct. and, if so, what caused it. To date, u.s. $18,000 of Loan Fonds have been spent, the same amount reported nine months ago.

Completion date of this Project postponed one more month, for a total of sixteen months. To date, U.S. $4,000 of Loan Funds have been spent, compared with u.s.$3,6oo three months ago.

Project completed September 1.5, 1951. U.S. $12.000 of Loan Funds spent, as compared with U.S. $11,000 three months ago.

...

Mr. s. Al4ewereld

S7mbol Number

III (g)

III (k)

III (1)

III (o)

Name of Project

Staa.tSllliJnen -Phtalic ~dride Plant


StaatsmiJnen - H.P. Central Stat ion

Staatsmijnen - Cyclohexanon Plant

-2-

III (p) Staa.tsmijnen - Oe.prolactam Plant

III (q) StaatsmiJnen - O~ga.s

Expected Date of Completion Remarks

Project completed April 3, 1951. U.S. $48,ooo spent from Loan Jund.a, as compared with U.S. $47,000 three months ago.

Project completed March 15, 1952, 14f months later than original.l.7 contemplated. !o date, u.s. $4,700 have been spent from Loe.n Funds.

Jul.7 1, 1952

J~ l, 1952

Expected da.te of completion postponed by further three months for a total of eleven months. !o date, U.S. $26,700 have been spent out of Loan Funds.

Completion date postponed one month since ~revious report. U.S. $1,000 have been spent out of Loan Funds.

Completion date uncbanged. !o date, U.S. $22,000 and the equivalent of U.S. $20,000 in SW1ss Francs have been spent, an increase of u. s. $12.000 and u.s. $4,000 respectively since the previous report.

September 1/53 Expected date of completion postponed one year for a total of 21 months over original estimate. It is suggested that the Heratelbank be asked to comment on this postponement. To date, U.S. $4,700 have been spent out of Loan J'unds.

... ,

Mr. s. Aldewereld -3-

Sy-mbol Number

XVI

!lame of Project

Kon. Bed. Papierfabriek


The Herstelbank corrects the information on this Project, which was completed in March 1952, in which it was stated that the equivalent of U.S. $141,000 in Swiss l!'ran.cs were spent, even tho\l&h onl7 u.s. $116,JOO were allocated to the Project. The amount ·now reported spent is U.S. $104,100 equivalent in Swiss Francs. The final ~ent of 1o,g will take place in Jul.J" - Auge.st 1952.

Group II Projects (l3ank: Participation more than $200,000)i

III (h) Soda Plant

Engineering work is scheduled for completion by July 1, 1952, eight months later than foreseen nine months ago. No new orders have been placed during the past quarter, but deliveries have increased from~ to 4ril,. !'hese deliveries should be completed by Pebruary 1, 1953, au: months later than comtemplated six months ago. The Project should be in :full use by May 1, 1953. U.S. $79,000 and the equivalent of U.S. $8,000 in Swiss Francs have been spent out of Loan Funds, an increase of U.S. $4,000 over the amount reported three months ago.

III (,1) Coke Plant - Emma II

Engineering work is still only 50'1, complete. No new orders have been placed, but deliveries have been increased from 18% to 2o'I,. Deliveries should be completed by March l, 1952. The plant should be sO'f, in opere.tion by- August 1, 19.54, and 1n f11ll use b7 December l, 1954. To date, u. s. $347,000 have been spent out of Loan Funds, an increase of U.S. $'.3'7,000 over the amount reported three months ago.

III (m) Pertiliser Plant

Engineering work remains 99'1, complete, and should be finished by June l, 1952, four months later than anticipated three months ago. 98% of the orders have been placed (97'1, three months a.go) and~ of the equipment has been received(~ three months ago). The remaining deliveries should be completed by July l, 19.52, two months later than anticipated three months ago. The plant is already 85~ in u.se and should be in full operation by- August l, 19.52, two months later than anticipated three months ago, and four months later than originally anticipated. To date, U.S. $17.5,000 have been spent out of Loan :funds, an increase of u.s. $3,000 over the amount reported three months ago.

Note: !he List of Goods includes one amount for Staatsmijnen. The amounts to be spent for the sub-projects are flexible.

Mr. S. Aldewereld -4-

XXI Stork Weefgoederen

All the equipment ordered has been received and most of it is 1n use. Many orders remain to be placed. However, this company is now reconsidering its position as it does not expect to be able to complete its Project before June 1953, which is two and a half years later t.ban originally contemplated and sixteen months later than anticipated six months ago. The eoinpa.D1' has promised to supply the Herstelba.nk .with a new detailed list of goods 1n the near future, and we should hear from the Herstelbank about it soon. Loan Fund expenditures remain at u.s. $60,800 and the equivalent of u. s. $144,6oo 1n SWiss Francs.

General

fhe situation of these projects does not confirm the slight optimism which had been expressed on the basis of the reports on the other Herstelbank projects. The overall situation continues therefore to be rather gloo~, with completion dates continuing to be postponed in ma~ instances.

Action

1'he Herstelbank should be asked for the ca.use of the lengtq postponements of the completion dates of Projects III (c) and III (q).

\ ru){'~, - ,;~7

e. c. Mr. J'aJans

BPSpiro:ch

• -Letter No. EU/519

• Maatschappij tot Financiering

van het National Hers tel N. V. Kneuterdijk 6 1S-Gravenhage . The Netherl ands

Gentlemen:

June 26, 1952

We acknowledge with thanks receipt of your l etter reference

K/1141-Bs/cs of June 23 , with which you enclosed a copy of t e

annual report prepared by N. V. Kempensche Zink Maatschappij

(Project VIII) for the year 19Sl.

Very truly yours

s. Al dewereld

•

• ..

' I

MAATSCHAPPL

TOT FINANCIERING VAN HET

NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, June 23 ' 1952 Kneuterdijk 6 T elefoon 183890/98

K/1141-Bs/CS .

International Bank for Reconstruction and Development , 1818 H- Street JT/' . , Washington 25 D.C.

For attention Pr . S . Aldev,ereld..!.

Gentlemen,

We have pleasure in forwarding a copy of the annual report 1951 of N.V. Kempensche Zink r~aatschappij (project VIII) .

l~ trust you ~ill find the inforMations contained ther ein of interest .

Yours trul y ,

1KAATSCHhPPIJ TOT FINArCIERING VAN HET N~:ro'fAAL HBRST} L N. V.

/~~ - :? - --· ~~~

Carded ~

Ack: EU/ s't 1

\ct ion Mr .

Mr.

bl ~" I -rJ..

-----------------------Memo

--------------------· --------------------·

I I

I

, ~,)AH If 3 I AH. 'J_?,' 3 ,I ,b, ,,.,.,n)I

?I! Oli8c8I n .,1 l T

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I<JqAH.'.)2,TAAM

T3H V.AV ~Jv1:IJi3.I:)V.AvIJ'iI TOT

.V.~ .I3T2.R:f1I JAAY.OITAV.

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----------____ ---:_ _____ ~~~:~: ! r 1'c 'U.'.3: : :xoJ.

.s." \ J~ \('J

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• 'I f

ome

NETHERLANDS EMBASSY WASHINGTON 9 . D . C.

OFFICE OF FINANCIA L COUNSELOR

FA/1105 June 16, 1952

Mr. s. !.ldewereld Assistant to the Treasurer International Bank for Reconstruction

and Development 1818 H Street, N. w. Washington, D. c.

Re : Loan No . IB-15-NE

Dear Mr. Aldewereld:

14'70 1:UCLID STREET. N. W ,

TE.L . ADAMS 1ee2

CABILES: N ltTHER,iN

Further to my letter FA/1015, dated May 22, 1952, I ,am enclosing herewith, in triplicate, End-Use Reports as of Apri:l 1, 1952 for Project XXI (Weefgoederenfabriek C.T. Stork & Co. N.V.) and Project III (Staatsmijnen) .

With reference to my above-mentioned letter with which I submitted to you End-Use Report XVI (Kon. Ned. Papierfabrie.k), I -.ish to inform you that the amount of $141,000 should read $104,100. I sincerely regret any inconvenience this error may have caused you.

Encl.

Very truly yours,

!.lv~OUk L. R. w. Soutendijk Financial. Counselor

ti

NETHERLANDS EMBASSY

W A SHINGTON 9 . D . C .

O F F ICE OF F INANCIAL COUNSELOR

FA/ll83

~. J . Fajans Assistant Loan Officer International Bank for Reconstruction

and Development 1818 H Street, N.W. Washington, D. c.

Dear Mr. Fajans:

June 30, 1952

I am enclosing for your information a copy

of the annual report for 1951 of the Herstelbank.

Enclo

'

Grooters. Asst. Financial Attache.

1470 EUCLID STR EET. N. W .

TEL. ADA M S 1662

CABLES : NET HERFIN

lfr. s. Aldeve.reld

Bugh lJ. Rl_J8l.U

RlttWlw# - [email protected] ~., aa ,, A;p#l 32, 1952

Jvne 20, 1952

Attached t:o theit- letter of JU:U 9, 1952, the Eerahlbank sent ua a. copy of the::Lr aonthl.7 lale.ace Sheet a.a al April Jo. 1952 and .PN>ti t and toaa Account, t-or the first ft>ur moiltha ot the ~ 1952. t'hie &J.qce Sheet la conunaed below,

6,S~§ lilqu.td Aueta

Of ibiOh Mlniatl'J' ot Ftnance unm Of 'Which ltal'J'iek In,.. aurance Com.panies Accounts

Los.na and Ad:vanee, Of lfhtch $ Debtora Of Which f1i Debto~s

iart1cipa\1on in other Companies

KiacellaneotL& Accounts Ot Which ECA Ptma a

lfotal

LWtJ:l'PJE§ Accounta Pa,-e.ble l)apo&lte

ot ffhioh uum $ Account Of Vhieh IBRD SF AecoWlt ot Vh.ich SW1ee i'nnea 1f, Bonda Sold by ~ or Whlch $ Creditors Of ttbich Sl? Creditora Ot Which arrisk In~ auran.oe Co~1ea

!orl'Ow!n,: M1acell.anGOll8 Accounts lleaerve f'or 1-d Debts Legal Reserve 0..pital

t Income to lhte !otaJ.

Guran\eea -Gu,-

6.9

-) .8 4.o

$ .s SF4. 0

--::,.a 4.0

~ans Gl'anted not Yet Withdl"a'Wll

l.14. 9

_..,_ . 1

7.9 4.8

300. 0 . s,2

W •6

i81. 7

300.0

28.8 10.5

521.8

170.7 • 2.3 S18.7

SJ.a. 6.5 9.2

10.2

3.9. 9

ia .1

9.9 10.3

. 310. 2

28.8 6.6

176.2

22.? ,.1 17.9 7.4

300.0 4 . 2

#l>:·I 7.5

r . • ldew reld

ot the 1951 t inc e s

1. 5,500.000 • 1, ,00,000

e dlff renc • 6,400, 000 teen th to t the two ounta c.nd the n t ino tor 1951 l unaccounted for. but s pr :b}N

,d1 tr1but d dividends, ln eeordcmce with t orovlelon of Art1ole 23.2 nd Artlcl 27,.3 of th Artlcl ot oclflt1011. !he Ann

rt, tfhl.ch aboul4 r ach us 1th1n the ext nth or Ul glv · further lnf'o tion on tbl ubJect.

follov

J) Jl'!I

rumee, num • 19,957,931.88 t Co Qey

n . 19,957,931.aa

o action re uir •

lro:ch

Maatsehappij tot Financiering van het Nationaal Herstel N.V.

Kneuterdijk 6 'S-Gravenhage The Netherlands

Gentlemen:

June 13, 1952

We acknowledge vith thanks receipt of your letter K/1071-Bs/CS

of June 10, with which you enclosed copies of the annual reports 1951

concerning Projects X, XI , and XVI.

Very truly yours,

S. Aldevereld

MAATSCHAPPL TOT FINANCIERING VAN HET


K/1071 - Bs/Cd .

International Bank for Reconstruction and Development, 1818 H- Street F.1 . , '! a s h 1 n g t o n 25 D.C.

For attention,~ . S . Aldewereld .

Gentler.ien ,

'S-GRAVENHAGE, June 10 , 1952 Kneuterdijk 6 Telefoon 183890/98

We have pleasure in forwarding copies of the annual reports 1951 concerning:

Koninkli jke l'achinefa briek Gebr . Stork & Co . r .v. N.V. Koninklijke 'ederlandsche Grofsmederij

N. V. Koninklijke Nederlandsche Paoierfabriek

- Pro,ject X

- Project XI

- Pro,iect XVI.

trust you will find the infor,,,ations contained of interest .

Yours truly ,

f fAATSCFAPPIJ TOT FHTAt CIBRING

VAN ,-J 'T NATI ONAAL IERSTP.L N. V.

L

\ ('\ 1 \ r

. •' - ..

\J J- \

J1 V .II O 11 V V r ll fl F '2.LE r v.: A.

J.OJ EDI.V ClFl{H1C AVY.i HEJ.

WV IJ.'2(,H /bhl

OFFICE OF F INANCIAL COUNSEL OR

FA/1066

NETHERLANDS EMBASSY W A SHIN GTON 9 , D . C.

June 2, 1952

Mr. J. Fajans Assistant Loan Officer International Bank for Reconstniction

and Development 1818 H Street, N.w. Washington, D. c.

Dear Mr. Fajans:

1,70 EUCLID 8TREET, N, W.

TEL. ADAMS 14US2

CABLES: NETHERFIN

In accordance with your request, I am enclosing herewith

copy of a letter dated May 20, 1952 by Mr. A.S.G. Hoar addressed

to the Herstelbank which has been duly confirmed.

Encl.

Very truly yours,

L. R. w. Soutendijk Financial Counselor

May 28, 19.52

Let\1r No, EU/431

Maatscbapp1j tot Financiering van het Rat1onaal Herstel N. V.

Xneutel'd.1jk 6 The Ra.gu.e, 1'he Netherland•

Gentlemen:

We ahould lib to acl!:novledge receipt wi thanks of your letter

of~ 22, 1952, attached to vhich you sent ua

most of the Projects financed out of the proce a of the :Bank Loan.

We have noted, however, that you did not enclo • reports on the Staats

miJnen Projects nor on Project No. XXI - Stork Weefgoederen. We should

appreciate it if you could send us reports on ese Projects at your

earliest convenience.

Sincerely yours,

~ s. Al.devereld

FcJ'IIM No. ·57 (5- 48) INTERNA 1 IOf\

TO: Mr. s. Aldewereld

FROM: Huch :B. 1Upman

DA TE: May 28, 19

SUBJECT: Herstelbank - Progress Reports as at April l. 1952

Attached to their letter of~ 22, 1952, the Herstelbank sent

us Progress RePorts on most of the Loan-financed ProJects. !he ex

ceptions are noted below. A review of these Projects ehows the position

to be as follows:

Group I Projects (:Bank Participation less than $200,000)1

Symbol Npmber Name ot Pro.1ect

III (~q) Staatsmijnen

IV Mekog

(I

V Zoutindustrie

VI Vondelincenplaat

lb::pected Date of Completion Remarks

Ho Progress Report received.

October 1952 Completion date has been postponed by three months, due to slight alterations 1n the original plans. !o date u.s. $67,4-00 and the equivalent of u.s. $66,900 in SWiss Franca have been spent out of Loan Funds. This represents 76"/, of the funds allocated. to this Project.

September 1952 Completion date unchanged. To date u.s. $129,100 and the equivalent of U.S. $52,350 in Swiss Franc, have been spent. This represents So~ of the funds allocated to this Project.

September 1952 Completion date unchanged. To date u.s. $821 950 have been spent, representing ?&/, of funds allocated to this Project, an increase of $650 over that reported three months ago.

I

Mr. S. Aldevereld .; 2 -

SJ"abol Nyber

X

XI

XII

XIV

XVI

xx

XXII

Name of Pro.1ect

StorkMachinefabriek

Grofamederij

Neerlan.dia

&nit Nijmecen

Xon. Bed. Papier!abriek

De v1t•e TeXtielnijverheid

Hollandee Textielindustrie


December 1952

Completed

Completed

April 1952

May 28, 1952

Rp.rks

Completion date remains uncba.nged. !ro date u.s. $41,250 bave been apent, representing Sl~ of funds allocated to this Project, an increase of $250 over tbat reported three months ago.

Completion date unchanged. To date u.s. $8,900 and the equivalent of u.s. $137,000 1n Swiss Francs baTe been spent. This represents 95~ of fund.a allocated to this Project, an increase of $5 • 000 over the amount reported three months ago.

Completed in March 1952, when the last machines were received. It is reported that the equivalent <f' U.S. $141,000 in Swiss Francs were spent out of Loan Fwids, even though. only U.S. $116,300 are allocated to this Project. The Herstel bank sho.llld be asked to explain this discrepancy, especial.l.y since 1~ final payments remain to be made in Jul.7 and .At]8U.st.

September 1952 Completion date advanced

Completed

by three months. To date u.s. $13,200 and the etuivalent of u.s. $99,650 in SW1ss Francs have been spent out of Loan Funds. This represent a an increase of $350 over the amount reported three months ago.

Mr. s. Aldewereld

SJmbol Number XXIII

XXVI

Bame qf ProJeet

T.I . M.A.

Ooateneld

Xon. StoomweveriJ te Nijverdal

-3-

Expected Da.te q:t _Qompletion

Completed

:a,ma.rks

Completed March 1952. To date u.s. $203.175 in Swies France have been spent, representing 95'/, of the fwida allocated to this Project, aa compared with 8J.S% three months ago.

May 1952 To date u.s. $40,000 have been l!Pent, representing 38% of the funds allocated to thia project.

9£oup II ProJecta (:Bank Participation more than $200,000)

I . V9reenigde Glasfabrieken

OnlJr l~ of the production ma.chiner;y reJ1ain.a to be delivered in

September, and it b expected that the Project Will be completed by

October 1952. No Loan Funds were expended during the first quarter

of the 7ear. Two photographs are attached to this Report.

II I (h) Soda P1ant

Bo Progress Report receiTed.

III (J) Coke Plant - IM@ II Bo Progress Report received.

III Cm) 1trt111aer Pat

No Progress Report received.

VIII 1

Kemp~che Zip.kmaatechappij ~

!rhia Project ia completed. A total of U.S. $293,000 of Loan Funds

ha.Te been spent out of the $293,641 allocated to this Project.

XIII Pra1qp.

!his Project should be completed in July 1952, one month later

than anticipated three J10nths ago. The machines which remain to be

receiTed should be delivered between April and May 1952. !o date

Mr. s. Aldewereld - 4-

XIII Dpi:f!: (cont.)

u. s. $1S8, 4;50 of Loan l'ands have been spent, an increase of U. S. $6,225

oTer the amount reported three months ago. !his repreaents ·66~ of

the funds allocated to this Project, which were increased from $180,000

to $240,ooo.

mu Tan Cate

Completion date has been postponed by a further eight months to

October 1953. !his postponement is ca.used by delays in the deliver~

of drawing frames. All other equipment should be 1n use by Februaey

1953, which was the expected. completion date mentioned three months

ago. !o date u.s. $1,510, 000 in Loan l'ands have been spent, representi.Dg

77'1, of the fonds al.located to this Project, an increase of 2'I, since

\he preTioue re:port.

XIX :Bamshoeye

Completion date is now March 1953, three months later than indicated

in the previous .Report. The equipment causing the postponement had

been scheduled tor delivery 1n April 1952 but has not yet been ordered.

Mention is made that the Managing Director of !amahoeve is now 1n the

United States, viaiting manufacturers of textile machine17. On his

return, Bamahoeve Will decide as to what machines will be ordered.

to date u. s. $S,8SO and the equivalent of U. S. $222,100 in Swiss Franca

have been spent out of Loan Funds, representing 3'.3% of funds ailocated

to this Project, as compared with 2~ three months ago.


Bo Progress Report is attached. This Project was to be completed

in February 1952.


XXV De Schelde

Completion date has been postponed from December 1952 to March

1953. The Herstelbank .bas asked Mr. Stanley Miller to look into the

matter of further delays in delivery. :Bank fund expenditures remain

at U.S. $185.225, or SJ/, of the funds allocated to this Project.

lXIX Gelderman & Zonen

This ProJect is scheduled for completion in June 1952. To date

u.s. $230,000 1n Swiss Francs have been spent, representing~ of

the funds allocated to this Project, as compared vith 6'1> three months

ago.

The above Progress Reports do show some measure of progress, but

completions in Jll8.DT instances continue to be postponed for various reasons.

One would atill extend past the new closin& date of the Loan on June l,

1953.

Action

.J / The Herstelbank should be asked about the apparent discrepancy t.o/ 1£->f - I.. ~ ..i._

in the funds expended on Project Bo. XVI. Further, the Herstelbank

_ ( should be asked tor Progress Reports on all the Projects of Staatsmijnen

t.:."/ "° ?i 1

- ( /;g ( and on Project No. XXI - Stork Weefgoederen.

c.c. Mr. J'aJans

'--\ PSp1ro:eh "" \ \

..

FILE COPY

•

FORM NO, 58 ( 5. 48)

TO:

FROM:

SUBJECT:

~I~~~ NAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1t(

FFICE MEMORANDUM Mr. A. G. Hoar d. '.rbrou Mr. Hr"{fud' homme/11 Soseph Fajans \t\· Her stelbank Loan - Closing Date.

DATE: May 20/52

As a result of Mr. s intervention, Uie Herstelban.k 1118.s now sent us the att a ed letter requesting an extension ,of the closing date for six months from December 1, 1952 to ,J"une 1 , 1953. The argument in support of this request cont~ined :in the lett er is satisfactory to us and the Tr easurer ' s Department. '.rhe Economic Department has been informed and has no objection.

Your signature is r equested on the atta~~~~n-::'to t.he Herstelbank which has been prepared by the Legal Depar tment. JICindl y sign all thr ee copi es.

l~nc. 3

.....

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Maatschappij tot Financiering van het Nationaal Herstel N. V.

Kneuterdijk 6 The Hague The Netherlands

Gentlemen:

May 20, 1952

~t to the request contained in your lotter of

May 1.3, 1952 (ref. K/9~vB/CS), we agree that the closing

date under the Loan Agreement dated July 26, 1949, between

us be extended to June 1, 1953.

Please indicate your agreement by signing the form of

confirmation on the enclosed copy of this letter and returning

that copy to us.

INTERNATIONAL BANK F<Ji RF£ONSTRUCTI0N AND DEVELOPMENT

By

A.S.G.Hoar Loan Director

ConfirDEd: J.A :2 J/.s-..,, MAATSCHAPPIJ Tor NAOOIERING

VAN HET NATIONAAL HERSTEL N. V.

By

OFFICE OF FIN ANCIAL COUNSELOR

NETHERLANDS EMBASSY WASHINGTON 9 , D . C .

FA/979 May 19, 1952

Mr . J . Fajans Assistant Loan Officer International Bank for Reconstruction

and Development 1818 H Street, N. w. Washington, D. C.

Dear Mr. Fajans :

1,70 EUCLID STREET. N , W ,

TCL, ADAM8 1662

CABLE81 NETHERl"IN

Further to our conversations relative to the problem

of the closing date of the Herstelbank Loen~8JJ! now enclos

ing a letter from the Herstelbank dated M.e.y 13, 1952.

I shall be pleased to discuss this letter at your

convenience .

Very truly your~,

~ ~inWlclal Attachb

Encl.


NATIONAAL HERSTEL N.V .

K/908- v 3/r.,) .

International ank for Reconstruction and Develop~ent , 1818 If- Ctreet T. • , Washington 9 D. l, .

Gentlemen,

'S-GRAVENHAGE, .. ay 13th , 1952 Kneuterdiik 6 T elefoon 183890/98

As you have already learned fro~ nreviour. correspondence and from our representative Dr . uoutendijk some delay has occurred in the delivery of canital goods to the dollar loan beneficiaries , ore especially in the textile sector here in a fe · cases serious delays have taken place . These d~lays cannot be attributed to neglect of the relevant clients as in most cases the execution of t~e project vas nlanned i n several stages . In sone cases a relatively s~all number of machines was ordered originally to experiment, i th them be fore lar;rer ordcr.r. "'ere placed . ts the deliveries for the first stage· ere quite often ulr 0 ady delayed the seco~d and fol 1 o ·•ing stafes suffered even r:ore considerable de l ay o 1ing to, for exc1'!lT)lA , uv•iss ~anufncturers of textile rrachinery i"lPOsing, after the outbreak of the ~ .ore an cor flict , periods of delivery from one year to eighteen months .

The above npplies , be it to a lesser degree, to the execution of a number of other projects , of vhich the utaatsmijnen complex of projects (III) is tne ~ost iMportant . ThPse projects have had to cope with delays in doljveries ,hich often resulted from the difficulty in obtaining ~achinery and equipment "hich included scarce natcrinls . In the cnse of the otaatr.mijnen there is the added difficulty of putting the finishing touch to a fairly large nul'l"bE·r of projects 1hich proces~ takes quite sono ti~e. These difficulties have , on the whole , been underestiriated originally .

0 expect therefore t~1at , roughly esti,...,ated an amount of about i 1 . 000 . 000 ,- vill not hnvc been dru 1n before the closing date. This a~ount can be specified as follo, s:

- 1 -

- 1 -MAATSCHAPPIJ

TOT FINANCIERIN G VAN HET NATIONAAL HERSTEL N.V. 'S-GRAVENH AGE,

Kneumdiik6 Telefoon 183890/98

K/908-vB/Co

III Staatsrnijnen still to be ordered . Still to be naid on ord0rs nlaced after closing date

IV I'ekog still to be ordered

X Stork ·~chinefabriek still to be ordered

XIII Draka still to be ordered

XVIII Ten Cate still to be paid on orders placed

XIX Ba~shoeve still to be pai d on orders placed . Still to be ordered

XXI Stork Ueefgoederen still to be ordered

XXV De Schelde still to be paid on order placed

.. approx . ~

approx . $

approx •. $

~ approx . ?

t~ approx . ,i;1

approx. $

approx . $ approx . $

approx . $

approx . $

190 . 000 ,-

60 . 000 ,-

1 ') . 000 ,-

30 . 000 ,-

35. 000 ,-

185 .ooo ,-

50.000 ,-3 50 .ooo ,-

350 . 000 ,-

35 . 000 ,--------EstiMate of payments still to be effected before the closing date

approx. total$ 1 . 300 . 000 ,-

. /. $ 300 .ooo ,-

Total to be dra~n after thA closing date ~ 1 . 000 . 000, ---------------------------In order to sneed up the placing of deliveries as far as

possible v~ have fixed October 15th next as the ulti~ate date on 101hich applications for obtaintng import licences can be submitted . In this manner '"e , ·ill kno ,. at the end of October exactly rhich a~ount ~ill have to be drawn after the pre~ent closing date .

Our present difficulty is however that 11e have in portfolio, and are receiving, applications for i-port licences i:·llich nertain to i terns of nhich paynent .,.ill only take place after the closing date • . e cannot r.rant these licences unless v1e knov, that vrn can in due tirw dlraw unon International Bank funds to realize the relnvant pa:y~ents . You have already

- inf orrried - J1

.. - 2 -MAATSCHAPPIJ

TOT FINANCIERING VAN HET NATIONAAL HERSTEL N.V. 'S-GRA VENHAGE,

Koeuterdiilc 6

1./908- vB/CS. Telefooo 18~890/98

r

inforMed us that ire can subr1i t these cases for approval by Means of a qua lif'ied com~i trri1:mt. 'i'his , 1ould be a satisfactory solution ·iere it not that the financial consequences of such a procedure as far as the period subsequent to tho closing date is concerned, have not been stipulated by you . It i~ tlhis latter point 1"hich gives rise to difficulties.

le have contacted the ~etherlands I~nistry of Finance concerning this natter and they are nrepared to continue to pay corrnitMEmt charge and interEJst but the latter only in so far as this interost is DBid on amounts dra~n r0lating to the uayMent of poods ~hie~ havo alroadv been delivered or which ryill be delivered ~ithin a ~hort neriod of ti~e after Dayment is ""ade , and that any additional costs nust be borne by beneficiaries . This means therAfore that, if you should require us to take up, or pay interest on, the a~ount still available on the loan as per the closing date, the b~neficiarie s would have to pay the additional costs vhich · ,ould in any case be the interest . '.Chis unforeseen eventuality would ~ean an additional financial burden to the relevant beneficiaries ·1hich some nj ght not be illin ~ .to ~·houlder and tLus considerable difficult;i.es ,.,oulr1 arise"+ i th regard to i tens on ·vhich advance payments have already taken place .

As long as re have no definite decision fron your good selves in this natter the rraPtln~ of i~port licences relating to payrnents after the closing date j s held np as \"B

cannot inform beneficiaries regarding the fin~ncial consequences of thAir 1• i thdrawals against the credit line after the closing date . This means that further delays are caused, al though they are only fe11 as yet, as definite orders can not yet be placed by these beneficiaries .

The best solution as far as the ''inistry of •inance , beneficiaries and ourselves are concernea woula be a postponement of the closing date for a period of six ~onths. ~ e feel confident , that barring unforeseen events, arr-payments could t'1en be effected and that beneficiaries would be given the opnortunity to complete their projects in the Most efficient and rational Manner . Furthernore such a solntion would not entail any additional financial burden to the parties concerned and Hould enable us to deal speedily with inco~ing applications for i~port licences and to obtain a clearer picture of future dnvelopncnts as we are fixing October 15th next as the ultirr,ate date on

- i;.rhich -

n



K/908- v /Cu .

'S-GRA VENHAGE, Kneuterdijk 6 Telefoon 18~890/98

which said aoplications can be sub!"'littE'd .

- 3 -

·e trust that once again ,•e are not as:n:j n · in vain for your cooperation, in a ..,atter "hich is vital to a sattsfactory utilisation of the loan granted to us . 'e would be vary grateful to receive your reply at. an early date in order to avoid further delays in deliveries .

Yours truly ,

------CI .Il'TG ~, ,1 N . V .

MAATSCHAPPIJ

TOT FINAN CIERIN G VAN HET

N ATIO NAAL HERSTEL N.V.

!2!:Jli, J . F, Posthuma. PrE•sident- Managing

Director.

'S-GRAVENHAGE, KoeuterJijk 6 Telefoon 183890/98

AIBlMAIL. Irrt;ernational Bank for Reconstruction and Development , 1818 H-Street N.Vl., WASHINGTON 25 DC. --------------------------------------------------------U.S.A.

Attention Mr. Hector Prud'homme, Loan Officer. ---·------------------------------------------Dear Mr. Prud'homme ,

r 1st, r 52.

With reference to your letter of April 15th last I point out that your assumption is right and that the two companies have not merged but that it is a matter of pooling technical , commer cial and ac()nomio knowledge for common benefit . No change in t he l is t of goods oin.:the schedule of projects is therefore required .

The -Stoomspinnerij te Nijverdal N.V. will of course al so benef it fr()m tha~ greater efficiency thus reached.

Should we obtain any further and more detailed information thE3n we shall again communicate ti with you.

P/gD

L\ED

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Fo11A No. 75 (7-48)

I NTEPNA TI ONAL BANK F•OR RECONSTRUCT I ON AND DEVELOPMENT

ROUTING SLIP Date 5"'- ~

TO- Room No.

2

3

F -Action lni tialing Aooroval PreparinR Reply Comment Previous Papers FilinR Noting and Returnina-Full Reoort Recommendation Information Signature

REMARKS

~~.u~ ~

FROM- GENERAL FILES AND CORRF.SPONilENCE, Archives Division

I

I

r FORM NO. 27 ( 1.50) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OUTGOING

DATE: APBIL 2J, 19.52

TO: ~Lm& 00. J2 l3.ABliHOll'STBASSE ZUIUCH

TEXT:

WIBE

CLASS OF SERVICE DESIRED

NIGHT LETTER [i)

DEFERRED D CODE D FULL RATE D

TELETYPE D

Wll PllOPOSE SBJ!TLEMEHT ON MAY 2 l'OR YOUR PUROHASll .PAR? HERSTELBANK LO.Ali. TOT.AL

PAYMEtr.r 1,010,486.11 SWISS J'B.ANOS INCLUDING INTEREST :lllOM DECEMBER 1, 1951.

II' AGlUilEABLll WE SHALL MA.IL INTERIM RECEIPT .&PBIL 28. PLEASE ADVISE.

ft:

AUTHORIZED BY, ~ i..J, NAME

DEPT.

Henr,y W. Riley, Asst. Treas.

cc: Mr. CavanaU&h Mr. :Ru.tla.nd

WCPButland/pio

Treasurer's

FILE COPY

~ :., ... ::x:J rn r ,.,_., <> 7'

C"' -· (j c.,-1 7 -

'J1 ..,. -.:> .; . ~ . ·- . - ~ -- !"" s

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For Use by Archives Division

Checked for Dispatch

t?b

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p y DrrERNATIONAL BARK FOR

BECOBSTRUCTION AtID DEVELOPMEH't

,ASHINGTON 2;. D. C.

1'q 20, 1952

llaatschappij tot iinanciering van bet Nationaal Heretel N. v.

Kneuterdijk 6 The Hague The Netherlands

Oentlement

Pursuant to the request contained in your letter o!

lla713., 1952 (ref. K/908-v»/os), wa agree that the closing

date under the Loan Agreement dated July 26, 1949, between

us be extended to June l, 1953.

Please indicate your agreement by signing the form o!

confirmation on the enclosed copy- o_f this letter and returning

that copy- to ue.

INT&RNATIONAL BANK FOR RECOHSTRUCTIOB AND D~"VELOPKENT

By agd. A.s.o. Hoar

A.s.o. Hoar Loan Director

ay 26• 1952.

MAATSCBAPPIJ TOT FINANCIERIHl VAN HET NATIONA.AL HERSTEL N.V.

By sgd. J. !. Posthuma Second signature unreadable

FORM No. 57 (5. 48)

T O :

FROM :

S U BJ ECT :

Mr. s. Aldewereld

Norman G. Jon~

Hers tel bank

DAT E : April 17, 1952

In the Herstelba.nk's Annual Report covering 1951, a tew remarks were made on the I.B.R.D. Loan, of which the gist is as follows:

Execution of the twenty-three specia.l Projects has sometimes been hampered by considerable delays in deliveries from the u.s.A. and SWitzerland. In several cases, however, priorities could be obtained through the assistance of the Procurement Division of the I.D.R.D.

Seven Projects have been completed and four are near completion. Enterprises which modernized or expanded their installations under this Loan are already benefiting from it, through an improved competitive position on the e%port market.

~iro/AJMdeLeeuw:ch

~ \ ' . \

\ ,• 1~83

1.r,-. J. ? • Poa timma J>re9ident--Managt.ng Dinotor Mut11Chllpl)i3 Toi fiMaai•rinc Van Het Nattonaal :Herat.1 Jt. V. !:nnteJ"dljk 6 'flWt Bagu The E'ethe1"lan4•

Deer Mr. Po1tlm.Da1 /

I Yrlte to ·acJcnovle<lge tlw Heret.l'bank:1 • l•tt•1" ot Apr l 9, 19.S'2, nan-ed tor Mr. Ald.avereld11 attenttoa. and lntormtng the l3an1c Qt the Mebnical and economic coopere.Uon acre•11ent recen'1y concluded between H. V. B. ten Cate ud Stooawennj te 1U.,3YeJ'dal 1 ••

lt i• rq ,mderetandtng that the pl"0.1.Ct• Which an tlw reeponel'blllty ~ the•• CO!lpUl!.ea are not a1't•eted and that the Companie• b&ve not bMn •r•c\ but will al•o ln future min.taln legal ttt&ttul ot aepaJ"at. C01'p01"9tiona. fhenfore no c~ •Pl*' to be rMUiNd 1n the eohedul• of pnJect• and the ltat of good.a eatsbllahfld UlldeJ" our loan to the Hel"8tel1-nk.

We would be lntere•ted to knov vhather the ooopen.tinn ...,...,_,_ ment 1n all)P wq attect• the Stoommpt.nner13 te N1.1Yerdal W. v. wbtc 1e owned. by the Stooawenn.1 te 1113"rdal JI. v. end 111 reaponetble tor pro-,.Ct xmn tlnlmced uder our loan. An7 addittonal t.nto t1on about tbe aille, rea,one end econnaio 1.mplicationa nt the RJnl"llllllt

ment Which 7n11 voulcl can to ••nd ua t rour convenience would. be lntereet to the 1'Mk.

cc t M'I". Aldewreld

~ JFa:,O.ne/eog

Hee tor Prud' homme Loan ON'lcer

Letter No. EU/288

Maatschappij tot Financiering van het National Herstel N.V.

Kneuterdijk 6 15-Gravenhage The Netherlands

Gentlemen:

April 14, 1952

We acknowledge with thanks rec~ipt or your letter reference

K/688-Bs/OS of April 7, with which you enclosed copies of tvo

annual reports prepared by De Wit's Textielnijverheid N.V.,

Belmond (Project II) for the year 1950/51, and by N.V. Hollandsche

Draaden Kabelfabriek, Amsterdam 1951.

Very truly yours

~/

S. Aldevereld

INTERNATIONAL BAN RECONSTRUCTION AND DEVELOPMENT

4/14/52

Mr. Fajans:

As this is a rather cryptic let·ter,

you may feel it advisable to ask fo:r

additional information about this matter.

s. Aldewereld


NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, April 9 , 1952

'l ::;

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K/716- vB/CS . / Kneuterdijk 6

Telefooo 18,890/98

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International Bank for Reconstruction and Development , 1818 H- Street N.W., wash ing ton 25 D. C,

For attention J'r . s . Aldewereld .

Gentlemen ,

We have pl easure in informing you that Ten Cate (project XVIII) and Stoom1-1everij te T-1ijverda l ~ (project X CO have reached agreement in principle re garding close cooperation in the economic technical and com~er cial field.

We feel certain that you will welcome as much as we do the creation of a close bond between these two specia l projects-loan beneficiaries which can only prove to be to their mutual advantage and which no doubt will make possible an even more efficient use of the funds put at their disposal.

Very truly yours ,

~ f l'AATSCHAPPIJ TOT FINAIJCU',RING 1;;,-

VAN H~T NATIONAAL Hr:RSTEL rr .v. c;::

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K/688- Bs/CS .

Internat ional Bank for Reconstruct ion and Development , 1818 H- Street N.w . , Washingt on 25 D.C.

For attention ~Ir . S. Aldewer el d .

Gentlemen ,

'S-GRAVENHAGE, April 7th, 1952 Kocutcrdijk 6 Te.lcfoon 183890/98

L ..... <

·~e have pl easure in forwarding copies of the annual r eports concerning De .Ji t ' s Textielnijverheid N. V . , Helmond (project XX) 1950/51 and N.V. Holl andsche Draaden Kabelfabriek, Amsterdam 1951.

We trust you find tho information contained therein of interest .

Yours truly ,

MAATSCHAPP~io~INANCIJRING /~2 ft:._ l!_ERSTI:L N , V , ~·

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- 80\

FORM •O. 57 (5- 48)

TO:


OFFICE MEMORANDUM Files f\_[ DATE: March ll, 1952

FRO M: Joseph Fajans '~ •

SUBJECT: Herstelbank - Closing Do.ta .

1 . Dr. Grooters who, apart from his duties at the Embassy, is now the Washington representative of the Herstelbank, called on me this afternoon. to raise again the question of the extension of the closing d~te of the Herstelbank Loan. The closing date, originally established on December 1 , 1952, has been the subject of several previous discussions in which the staff took the attitude that the problem of its extension wculd most appropriately be discussed in the autumn of 1952. rtt that time, the Bank would have better information with rega.rd to the stage of completion of the various projects , the timing of deliveries still to be made, and the amounts involved.

2. Today, Dr. Grooters explained to me that the authority to issue import licenses covering goods financed under the loan has been delegated to the Herstelbank. All imoort licenses hitherto issued by the Herstelbank expire on December 1, 1952 (i.e., on the closing date) . In view of the delays in deliveries arising fron. priority of defense orders, the extension of import licenses beyond the closing date becomes compelling in certain instances. Both the foreign suppliers and the Dutch firms in charge of the projects are pressing the Herstelbank to have imoort licenses extended well in advance of their present expiry date . The r;etherlands }tinistry of Finance is sympathetic towards such requests but nakes the authority of the Herstelbank to extend i rr.~ort licenses dependent on the consent of the Bank to postpone the closing date .

J . At present, the Herstelbank expects $1 - it million to remain in the loan account at the closing date. This amount corresponds to the payments which would have to be ma.de after December 1, 1952, by seven industrial concerns, namely: Staatsmijnen, Hekog, ten Cate , Draka, P.amshoeve , Stork, and de Schelde . These payments should all be completed by December 1953.

4. I did not give Dr . Greeters any definite answer . I asked him to write lI. Posthuma and request him to get in touch with Nessrs. Shull and Yiller concerning procurement assistance in some instances in which the speeding of the delivery of large single items would exPedite the completion of the entir e project . I asked Dr. Grooters further to find out how the a.mount of ~l - l{ million could be broken down among the )rejects he mentioned, (such a breakdown to take into account the individual projects included in the Staatsmijnen category) and what would be the dates on which deliveries for each of the projects mentioned would be completed .

.... - 2 -

5. I added, however , that I fully understood the import license situation and that I felt reasonably sure that after the receipt of more specjfic information regarding amounts and deliveries, the Bank would work out a solution which would enable the Herstelba.nk to extend import licenses for the periods required in individual instances .

6. I propose to take the matter up with the representatives of the Treasurer ' s and the Legal departments on the \\' or king ?arty.

cc . Messrs. Lejeune Ross Verheyen Spiro

Miss Morsey

~ - ~v.U./~-~n\

JFajans/meg

Maatecb.appij tot Financiering van het Nattonaal Herstel H. V.

Kneu.terdijk' 6 The Hagu.e, The JJetherlande

•

•

t

March 10:, 1952

• •

' . ,. We should like to refer to the Progrea1 Reports which you sent

/;

u.a, under cover of your letter of l'ebru.a:ey 14, 1952. We have noted that progress on moat of the Frojeote appea.rs to be slow and that delays are being encountered, due ma1nl.J to d1tf1cul ties ·1n obtaining deliveries of equipment. You may recall that we wrote :,ou previously that the :Bank bad aet up a Section, the purpose of which is to help, at the request or !orrowers. 1n obtaining speedier deliveries from manufacturen. You may want to inform the companies which are carrying out the Projecta of this :tact , and let us know 1n what manner we rrAy help them.

In th1a oonnection. we should greatly apprec\o.te it 1f you could add to each of the next Rep0rts aome textual remarks explaining the atatu.s of the Project and the reasons !or poae1ble f\l.rther delays.

Sincerely youra,

Sz:14

01202

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a.. a.t!IAW• .,. apr .... i, .... , ..... .,,...., .... la ........

.. 1,.,..n ., *IUJ*llill, 1111 Ille '1110111.lllfr ._ la .... lall •••

•\ illlMllt, -, .U..t t. ... .,, Ille II aae.

e. e. • • ..,. / ............. ........

,. FoaM No !i,7

(5.48) INTERNATION

OFFICE MEMORANDUM TO: Mr. s. Aldewereld

FROM: Hugh l3. Ripman

DA TE: Febru.a

SUBJECT: Herstelba.nk - Progress Reports as at December 31. 1951

Under cover of their letter of February 14, 1952, the Herstelbank:

sent us Progress Reports on all the outstanding Loan-financed Projects.

A review of these Projects shows the position to be as follows:

Group I Projects (Bank Participation less than $200,000)1

Symbol Number

III (e.)

III (c)

III (e)

III (f)

III (g)

III (k)

Name of Project

Ste.atsmijnen - Phenol Plant

Staatsmijnen - Baphta.line & Antbracine

Ste.atsmijnen - Potassium Ferro-Cyanide

Ste.atsmijnen - HzS Removal

Staatsmijnen -Phtalic Anhydride Plant

Staa.tsmijnen - Urea Plant


May l, 1952

June l, 1952

June 1, 1952

Remarks

Completion date postponed by two months since previous report, for a total of three months to date. u.s. $1,800 of Loan Funds have been spent.

Completion date postponed by six months since previous report. To date U.S. $18,000 Loan Funds have been spent, the same amount reported six months ago.

Completion date of this Project has been postponed by an addition.al five months. Original dnte was March 1, 1951. To date u.s. $;,600 Loan Funds have been spent.

Project completed September 15, 1951. U.S. $11,000 spent from Loan Funds.

Completed April 15, 1951. u.s. $47,000 spent from Loan Funds.

February 15/52 Date of completion postponed by further six weeks since last report. Original date of completion was January l , 1951. To date U.S. $4,700

01192

' .

Mr. s. Aldewereld

Symbol Number

III (k) cont.

III (l)

III (o)

III (p)

III (q)

IV

Name of Pro.1ect

Staatsmijnen - H.P. Central Station

Staatsmijnen - Cyclohexanon Plant

Staa.tsmijnen - Caprolactam Plant

Staatsmijnen - O~gas

Mekog

-2-


and the equivalent of U.S. $?00 in SW1es Francs have been spent out of Loa.n Funds, an increase of U.S. $1,300 over the amount previous~ reported.

April 1/52 Expected date of completion postponed by a further four months. Original date was August 1, 1951. To date U.S. $26,700 and the equivalent of u.s. $2,600 in Swiss Francs have been spent out of Loan Funds, an increasE of u.~.$1,600 over the amount indicated in previous reports.

June 1/52 No changes since previous report.

July 1/52 U.S. $10,000 and the equivalent of U.S. $16,000 in Swiss Francs have been spent out of Loan Funds.

September 1/52 Expected date of completion postponed by nine months since previous report. Original date was November 1, 1951. To date U.S. $4,700 have been spent out of Loan Funds.

July 1952 To date U.S. $60,800 and the equivalent of u.s. $56,150 in Swiss Francs have been spent out of Loan Funds. This represents 66% of Loan Funds allocated to thie Project.

01193

Mr. s. Aldewereld

Symbol Number

V

VI

X

XI

XII

Name of Pro.ject

Zoutindustrie

Vondelingenplaa.t

Stork Machinefabriek

Grofsmederij

Neerlandia

-3-


September 1952 Further delays in deliveries of the ma.chines ordered have forced postponement of completion of the project by another ten months.· Original date was February 1951. Manufacturers of the machinery are the Tyler Company of Cleveland, Ohio. It is suggested that the Procurement Section be informed of this specific instance even though no specific request to do so has /-been received from the t,t Herstelbank. To date fl' u.s. $123,200 and the equivalent of U. S. $52, 350 in SWiss Francs have been spent. This represents 771, of the Loan Funds allocated to this project.

September 1952 Completion date remains unchanged. To date U.S. $82, 300 Loan Funds

-,

have been spent, representing 771, of Loan Funds al located to this project, the same amount reported three months ago.

December 1952 Completion date remains unchanged. To date

Completed

Completed.

u.s. $41,000 have been spent out of Loan Funds, representing 51~ of Loan Funds allocated to this project.

01194


Symbol lumber

XIV

XVI

xx

XXII

XXIII

Name of Pro.1ect

Smit Nijmegen

Kon.Ned. Papierfabriek

De Wit's Textielnijverheid

Hollandse Textielindustrie

T.I.M.A.


April 1952 Completion date postponed by four months due to

May 1952

December 1952

Completed

Completed

a delay in the delivery of some of the machinery.

_ Original completion date wa.s June 1951. To date U.S. $8.900 and the equivalent of U.S. $132, 000 in $Wiss Francs have been spent out of Loan Funds, representing 9% of the Loan Funds allocated to this project. This is the same a.mount indicated six months ago.

Completion date remains unchanged since previous report. Original date was September 1951. To date u.s. $86,ooo have been spent out of Loan Funds• representing 74'1, of the Loan Funds allocated to this project, the same amount shown six months ago.

Completion date reir.a.ins unchanged. To date U.S. $13,200 and the equivalent of U.S. $99,JOO in $Wiss Francs have been spent out of Loan Funds, representing 7 5'1, of the Loan Funds allocated to this project. This is an increase of $350 over the a.mount previously reported.

01195

. .

Mr. s. Aldewereld - 5 -

Symbol Expected Date ~N~um=b~er=--~--=-N~am:;:;e_.,;;;of=-=P~r~o~j~~~c~t:...--~~~~~~o=f Completion Remarks

XXVI Oosterveld October 1952 Expected date of completion remains unchanged. To date U.S. $179,275 in Swiss Francs have been expended, representing 83. 5~ of Loan Funds allocated to this project , as compared w1 th 67% shown in the previous report .

XXVIII Nijverdal Completed

It appears from the above that progress on the Projects in this group

is slow and that serious del~s are being encountered, due ma.inly to

difficulties in obtaining deliveries of equipment. However, with the

exception of one project, not enough details are available to warrant

starting investigation at this end, concerning the help which the ~ank

could provide in speeding up deliveries. It is, however, suggested

that t he Herstelbank be informed once more of the help which the :Bank

is prepared to give with respect to procurement.

Group II Projects (:Bank P~rticipation more than $200,000):

I. Vereenigde Glasfabrieken

Most of the machinery bas been delivered. The remaining ma.chinerr

should be delivered by October 1952, or ten months later than originally

anticipated. All the machinerr received is in full operation. To

date U.S. $329,500 and the equivalent of U.S. $82, 200 in Swiss Francs

have been spent out of Loan Fonds. This is the same amount indicated

in the previons Report.

III (h) Soda Plant

Engineering work isscheduled for completion by May 19521 six months

later than foreseen six months ago. 67% of the orders have been placed

01196

Mr. S. Aldewereld - 6 -

III (h) Soda Plant (cont.)

and 38.\t of the equipment received. Deliveries should be co~?leted

by January 1, 1953, or five months later than contemplated three months

ago. The Project should be in full use by May 1, 1953, five months

later than origin.ally contemplated. u.s. $75 ,000 and the equivalent

of U.S. $8, 000 in Swiss Francs have been spent out of Loan Funds, an

increase of U.S. $23, 000 over the amount reported three months ago.

III (j) Coke Plant - »nma. II

Sey:/, of the engineering work has been completed.

that this work will be completed by August 1, 1953.

It is estimated

4o5I, of the orders

have been placed and 80% of the equipment has been received, as compared

with 35% and 12% respectively three months ago. The plant should

be operating at full capacity by December 1, 1954. To date U.S. $Jl0,000

have been spent out of Loan Funds, an increase of U.S. $70,000 over

the amount reported throe months ago.

III (m) Fertiliser Plant

99,, of the engineering work is completed and the balance is expected

to be finished by February 1, 1952, two months later than anticipated three

months a.go. 971, of the orders have been placed (97% three months ago) ,

and 96~ of the equipment has been received (94% three months ago) . The

remaining deliveries should be completed by May 1, 1952, one month

later than anticipated three months ago. The plant is 85% 1n use

and should be in full operation by June 1, 1952, two months later

than originally contemplated. To date U. S. $172,000 have been spent

out of Loan Funds, an increase of U.S. $2. 000 over the amount reported

three months ago.

01197


VI II Xempesehe Zinkmaatschappij

With the exception of the vaDAdium catalyst, which is expected

to be received in March 1952, or five months later than expected three

months ago, all the equipment has been received and most of it is in

full operation. This catalyst should be in full operation by S&ptember

1952, nine months later than originally contemplated. To date, U.S.

$259,6.50 have been spent out of Loan Funds, representing 89% of Loan

Funds allocated to this Project, an increase of~ since the previoue

Report.

XI II 1>ra.lm

The equipment which remains to be received consists of two nylon

extruders and one polythene extruder and eight wire braiding ma.chines,

together with spa.re parts. These ma.chines should be delivered between

April and May 1952, a delay of some four months over the date anticipated

three months ago. Even though most of the machinery is already in

use, it is not expected th~t the Project Will be completed by June

1952. This will represent a delay of some nine months over the date

originally contemplated. To date, U.S. $152,225 Loan Funds have been

spent, representing 8.S~ of Loan Funds allocated to this Project, as

compared with 81~ three months ago.

XVIII Ten Cate

The engineering work and the placing of orders continue to progress.

Sizeable quantities of equipment have been received and are alre~

partially in use. The Project should be completed by February 19.53,

a postponement of six months since the previous Report. This is due

01198

. . .

Mr. s. Aldewereld - 8 ..

to late delivery dates of automatic spoolers , high-speed warpers , and

tailing machine, delivery o:f which is being delayed due to the rearmament

program in the United States. Thie is another speci:fic case where

the Procurement Section might be able to intervene, if the Heretelbank

wishes the Bank to do so. To date u.s. $1,475,000 Loan Funds have

been spent, representing 75% of Loan Funds allocated to this Project,

an increase of 1% since the previous Report .

XIX :Samshoeve

Of the equipment which remains to be received, one section consisting

of sliver lap machines, lap drawing frames , sliver drawing frames and

bi-coil drawing frame3 and interdraft frames should be delivered by

April 1, 1952, four months later than contemplated in the last Report.

Another group of si.l!lilar machines is to be delivered during December

1952. This machinery, once received, can be put into use without delay.

The completion date of the Project remains, therefore, at the end of

1952. To date U.S. $5,850 and the equivalent of u. s. $133,900 in Swiss

Francs have been spent out of Loan Funds, representing an increase -

of U. S. $2,850 over the amount indicated in the previous Report. This

represents 20~ of Loan Funds allocated to this Project.

XXI Stork Woefgoederen

All the equipment ordered has been received. No indication is

given as to when the remaining orders are going to be placed, nor is

any information given as to when the Project should be completed.

The only information available is that the equipment received should

be in use by February 1952. To date U. S. $60, 800 Loan Funds have been

spent and the equivalent of U.S. $144,600 in SWiss Frances have also

01199


been spent out of Loan Funds. This is an increase of U.S. $900 over

the amount reported three months ago and represents 34% of the Loan

Funds allocated to this Project.

XXV De Schelde

The date of completion remains at December 1952. To date the

equivalent o! U.S. $185,225 in SWiss Francs have been spent out of

Loan Funds, the same amount reported three months ago, and representing

53~ of the Loan Funds allocated to this Project.

XXIX Gelderman & .Zonen

The machinery which remains to be received consists of ring frames ,

cardroom machinery and conversion ring frames. This machinery, which

was scheduled for delivery three months ago for January and March 1952,

is now scheduled for delivery for March and June 1952. Completion

date has been postponed from July to December 1952. To date U.S.

$170,900 1n SWiss Francs have been spent out of Loan Funds, an increase . .

of u.s. $1,200 over the amount reported in the previous Report , and

representing 63% of Loan Funds allocated to this Project.

General

While 1n the previous Report the Herstelbank had ma.de an effort

to justify in most instances the further delays in completion of the

Projects, no such effort has been ma.de at this time. I n order to s~eed

up completion of Projects in j,nstances where the execution extends

beyond the closing date, the Herstelbank should be reminded of the

Bank1s willingness to help ~orrowere speed up delivery of equipment

from the United States.

01200

' . . ' . .


Action I No other action required than that mentioned on Page J under

Project No. V, that mentioned under Project No. XVIII in Group II,

and under General. above.

~ · c. Mr. Fajans

~ ::BPSp1ro: ch \j \

\

01201

Letter No, EU/142

Netherlands Embassy 1470 Euclid Street, N.W. Washington 9, D.C.

Gentlemen:

February 18, 1952

We ackno'IJl edge with thanks receipt of your letter No. Fl/323

of February 14, tJith \lhich you enclosed in triplicate reports on

the Herstel bank projects for the pariod ended December 31, 1951.

,«i>

PT

\

Very truly yours

Henry W. Rile7 Assistant Treasurer

..

FoFIM No . 57 (5. 48)

TO:

FROM:

SUBJECT:

INTERNA110NAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM ~tw.). Miss !brsey, Legal Dept. DATE: February 15, 1952

Ellen E. M!ller, Secntar7•s~nt

Powei' of Attorooy - Loan to Horotolbmllc # ~ rB

In o.ccordanoe vith your requoat I sending JOU a photostatic

eo-w o,t a Powor of Attorney dated Jat1'Ua1'7 17, 1952, granted to J.ilesrs.

I.ouis Ru.tger Will.ea Soutetd1jlc an1 Jan Groot.era. '.l'hia dooument also

cancels the Powr ot 6ttorm7 thatwa granted to !ilaara. SOutemijk

cm roudh~ on August 10, 19SO.

co: Hr. ~~

7 Mr. Fajans

NETMERLANDS EMBASSY WASHINGTON 9 , D . C .

Ol"l"ICE OF l"INAN C IAL COUNSELOR

Mr . S. Aldev·ereld A.,~:.,tant to the Treaeurer

February 14, 1952

I ~trnitional EanY for Reconstruction and Development

1818 H Street, N. V .• Washin~Lo, D. C.

P.t: Loan No. IB-12-NE

Dear Mr. Alde.~ereld:

TEL, ADAMS 4301

C A8L£S? N!;THE RFIN

I am enclosing herewith, in triplicate, End-U~e Reports as of December 1951 for the following projects:

v I/' Vereenigde Glasfabrieken .,,. III.~ Stoatsmijnen

IV. l'lekog V. Kon. Ned. Zoutindustrie

; VI. Vondelingenpleat .,. VIII./ Kempensche Zink Mij

,/ X. ctork ~achinefnbriek J XIII/ Drako v XIV . Smit Nijmegen ~ XVI . Kon. Med. Papicrfobriek ~xvrrr .v Ten Cote v XIY . ~ :~mshoeve

XX. de ~it's TextiLlnijverheid " XXI .v Stork Weefgoede ·t:-nfal riek

XXV •. , de Schelde · XXVI. Oosterveld v XXIX. / Gelde~man

Very truly yours ,

<)

Fin ncial Attrcht

..

MAATSCHAPPIJ TOT FINAN CIERING VAN HET

NATIO NAAL HERSTEL N.V.

Dr . J . J . Posthuma. President hanaging

Director

AIRMAIL.

'S-GRAVENHAGE, Febr .1 3th, 1952. Kneuterdijk 6 Tclefoon 183890/98

Mr . R. L. G AR 1;~ Int ernational Ba· or Reconstruction and Development , 1818 , H- Street N.W W A S H I N G T O N 2 5 DC . --------------------------------------------------------U. S.A.

Dear Mr . Garner ,

Thank you so very muc~·the information contained in

your letter of February 1st last . Therefore I will quietly await

your news .

Yours very sincerely,

P/ED

•

' t

•

{.lqqAIJ n. fl M

T3H r,,.Av .)"1IH.Jl'JYAXIl TOT

.V.M J3f~Jl3H lA/V.OJTAV.

Mr. w. Rntla.nl!, TNllourer•e Dopt.

Ell.on E. n111or. Socrot,,r.,•a 'l)ept .

Loan to Hortalbank 15 ~ to Ftnlai:d II 16

In nccorlanco vitb your roqmGt, I w:i

copieo or,

b . s, 1952

1. v:tsocl Sch::xlu.1o of Projoat - Loan to Horotollxmk. 'IJ 15.

2. Reviaod Liot or Cooda - Loan to Horotolronk~ I/ 15.

rtdr:Jnt to .

Att.ochrlonts

FORM NO. 57 /5. 4d)

TO:

FROM:

SUBJECT:

INTERNATION BANK FOR RECONSTRUCTION AW ' EVELOPMENT

OFFICE MEMORANDUM /

Messrs. Ripman and Str()\ ~?{ DATE: February 7, 1952

Robert W. Cavanaugh ijc</~ Revision of List of Goo~ Loan 15 NE

On January 12, 1952 the Bank approved the changes in the List

of Goods resulting from the Cancellation of$ 870,000. Attached

hereto please find a schedule of the changes shown on our records.

Attachment

01190

1

2 3

4 5 6 7 8 9

10

11 12

13

14 15 16

17 18

19 20

21

22 23 24 25

26 27 28 29 30

INTERNATION.AL BANK FOR RECONSTRUCTION AND DEVELOPMENT

STATEMENT OF LOAN 15 NE ( TO MAATSCHAAPIJ POT FINANCIERING VAM HET NATION.Alt" RERSTEL , N. V.

REVISION OF LIST OF GOODS REFER LETTER OF JANUARY 12, 1952

Categorz

Glass Pro ect - Vereenigde Glasfab. Schied.am) Cement Project - Enci (Ma.a.stricht) Chemical Project: Staatsmi ,inen {Limburg and :Beek) Mekog (Ij~uiden) Kon. Ned. Zoutind. (Hengelo) Vondelingen Plaat (Vlaa.rdingen) Franken-Donders (Tilburg) Kempensche Zinkmij. (:Budel) Stri tomycin Pro ect - Centrale Suiker Mij. Gorinchem) Machine Projects: Stork Machine-Fab. (Zwolle) Grofsmederij (Leiden) Wire :troject - "Neerlandia11

(Jutphaas) Electro-Technical Projects: Draka. (.Amsterdam) Smit (Nijmegen) Smit (Slikkerveer) Paper Projects: Kon. Ned. Papierfab. (Maastricht) Bates Cepro (Velsen) Textile Projects: Ten Cate (Almelo) Bamshoeve (Ens chede) De Wit •s Textiel Nijverheid

(Helmond.) Kon. Weefgoederen Fab. Stork

(Ilengelo) Hollandsche Textiel Ind. (Goirle) Tima (.Apeldoorn) Van Vlissingen (Belmond) Gear Manufacturing Pro·ect - Kon. Mij. 11de Schelde11 Vlissingen) Spinnarij Oosterveld (Enschede ) Unnall ocated Stoomspinnerij te Nijverdal H.P. Gelderman and Zonen, N.V. Stoomwev. te Nij

Loan Commitment

$ 413,250

1,544,200 177,350 227,500 106,500

293,000

82,000 64,680

38,268

180,000 153,200

116,300

1,963,140 691,300

152,500

600,000 68,612 10,000

350,000 215,000

1,012,600 67,500

273,100

$ 8,800,000

Cancellation of$ 870,000 and transfers

$

between Cate~ories

642

60,000 1,500 Dr

6,100

30,000 Dr.

588 Dr.

1,009,898 Dr. 25 Dr.

105,269

Original Loan

Comr:i tment as Adjusted

$ 413,250

1,544,200 177,350 227,500 106,500

293,642

82,000 64,680

38,268

240,000 151,700

116,300

1,963,140 697,4oo

122,500

600,000 68,612

9,412

350,000 215,000

2,702 67,475

273,100 105,269

$ 870, 000 Dr. $ 7,930,000

Treasurer's Department February 7, 1952

01191

•

February 6, 1952

Dear Dr. Grooters,

In accordance with your raquest, I take pleasure in returning two documents dra'W?l up on February 17 and Auguat 10, 1950,respactively, and appointing l essrs. Soutendijk and Wolldhu,sen as attorneys of the Herstelbrmk in the Uhi ted States.

t . ••

D. C •

•

• •• t

., ' . ~" ...

Very truly yours,

jf Joseph Fajans

Assistant Loan orricAr

...

• Fel>ruaey ,., lC'i52 ....

i:

Dear J)r. Urooters:

t .. s rnqul!ated b.,1 Dr. souter.dijkt ! enclooo a photostatic. cor,y o"'" tho ravined e.mcrt1zat.ion sr..hedule or tl1e H~rstel.br.nk Loan.

't'ho a.t.tach•ld docur.nnt is tor your f1l9s since it is nv understanding that Dr. •;outend1jk ha~ tramtJdtted to the He~,teloonk on1t of the t.vo originals confirmad l'q tbs Bank •

...

... --·. . ·-

Dr. Jan Grootors Asnt. I•'inanoiru. A ttac-..ho t:athorla.nda Er.;bassy-l4 ?0 l!nolid rt., s. u. vash1ngton 9, n. c.

!ory truly ycurn,

Jomsph F£Ljnraa Ae~d.st.nnt l,oe.n Off'icor

' • 10. 1952, 'tihf'l'l'lnl;,j

llnt.ion 0~

to

•

EEMillor,tra

FORM No . 57 (5. 48) N-Ob.~k ~lo

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ~~ /S-

TO: MiH v, Moraa7,~:1: ~EMORAND~~. ~!~ ~ FROM: Ellen E. Miller, Secretar:yt 8 Department ~ ..z,~~

SUBJECT: IQy fc9 uen:alJ?tmk (I, ;&,~

In aooordnnce with your request, I om f ~ 10u a photostatic

oov:, or, I 1. Executed letter F ~~dated Jcui. 12, 19,~, Mf:tsing the list

or BQOdo to oo pure/ ood out of the prode~ds of tho Loan.

2. Execut.ec1 letter 1!!/94 dated Jan. 12, 19,~, revising the achedule of projects ot thf aomo loan.

Attachments

cc, Mr . R. W. Ce.va.natlgb, "'reo.rntrer' a Department ~ Mr. J . Fa;!ana, loan ~partment

•

,

Cou Dr. Orootere:

January :,1, 19'2

Ywr referencer F '/19'

Thia will aokn\)VlAdp the noelpt. ot the Power of Attoney author1•1ng Dr. Se>11tend1j.'!c and 1ourselt to r- epreaent th~ H&retelbank in 1 ta d...Unp vi th t.b.i 8 Bank.

I take note that the Power of At.~ granted to Mr. W~n in A~t, 1950, vas withdraw a.a or January 1, 1952 •

•

' Dr. Jan Groot.ere Aaat. Financial A ttache Uetherlanda mbuny 1470 Euoltd st. u. w .. \:'&ehi~Yton 9, D. C.

JFajans/100g

For the F~l a

M. Verhey;

Loan m@NE

lanuar., 30, 1952

January 29, 1952 at the request or Mr. J. Grootes or the .

Netherlando Embassy, I explained to him, by telephone, the pro•>easua

ot the approval ot items leas than $5,00o.oo.

clr. Grootea told me unofficially that he has received troi1

Herstelbank a request to ask the Bank for blank approval ot a.l,;L items

leas than t 1,000.00 on sub-category III-n (Staatamijnen Proje,ot -

Miscellaneous aud Contingencies).

I &na-wered, that it would be unlike~ that the Bank give such

a blank approval aa we have to Judge each item on its o\ln merit, but

approval of purchases at the time the orders are placed was not neoes

aar;r in order to include them later on in an application for reimburse

ment. Mr. Grootea concurring -with 'llf3' opinion said that he -will reconsider

the matter \11th Herstelbank before presenting it otfioi&l.ly.

3i I

I 1,,/

N

c~ c ~

Mr. Hen17 • BUey

llucb, !B. Bi.FJDAD.

Janwu,, 29. 1952

Htr1telbapk - Balance Sheet neat ;Dte2mb,t 31, 1954

Att~ched to their letter of Ja.nucr1 22. 19S2. the Herst lbank sent us a CO!J7 o! their monthll l.EJ.nce Sheet on t December ,1, 1951 and f ro:tlt and Loa• /iccoante for the year 1951. 'l'hic lance Sheiet 1a condeno-ed. below,

AmIDl.1§ .L1qu1d Aosets

September .'.3\1 12so

liovember JO 1251

December 31 12si

Of Whleh M1nl&t!"1 of Fina.nee IBRO Of ffltieh Warriok Insurance Companies Accounts

Loans and Advaneea Of \fh1cb $ I>ebtora Ot Which SI Debtors

Participation ln other Oom_panies

Miacellaneo~e Accounta Of h1oh tCA J'undo

total

LJ@ILt'fl~S Acco\1?1ts Ps1eble ~epoutta

Ot Which tBm> $ Account Of Whieh DRD S1' Account Ot Which Swiss Francs 'Jfi Bonde Sold l>y Jank ot Which Creditor, Of Which S.1 CredUora Ot Which Warrisk ~au.ranee Co nits

Borrowing M1ecellnneoua Account• Reserve tor d. Debts Legal Beserve CapitoJ. Net lrJCOme to Dnte fetal

Gua:-antees Given

6.9

--:3.8 4.0

-

$ .8 SJl4.o

-3.8 4.0

--

Lo&De Granted ot Yet W1thdre:wn

250.3

-.1 7.9 4.8

,oo.o

~

11.1

55-?

e.3 8.8

1.8

$ 2.1 SJ7.2

m .65 s.3 a.a

86.l

179.4

282.1

2a.s 8.4

1.58. 7

6.1 3.1

12.4 6.1

300. 0 l6,Q

422.4 10. 1

86.4

1.8

$ 2. 2 m.2 SP2.6S

a.s 9.0

87.1

196.0

280.4

e.o J.O

12. 4 6.1

.300. 0 13,a

512., 10. 0

.78.6

-

it wtll be noted from the e.bove awmrn•y or the :Bolo.nee Sheet that the i?eNtelbank bae 1.noreaeed Ue l>orrovtn«. rurther, the. neratelbank hae ao\ed aa an agent on behAlf o'/ ,he Goff~llt in lendtq funds. !he aaoun\ 1n•ol'f'ed ie of the order o~ Jll. 5.5 million. ln thia opera.tioJ1 the Rentelba!lk bat aerTecl the ew:ie t1Jle of function 1t aenes in connect1011 with setll~t ot &1'1'1tk tne\U'8.nr.e Accotuita.

!be to110 .. i11g t11bl$ cbo Q the bre.:t.kdo\::u of the t,!.B.D. nccounta:

~If

Miniatr, of Puance • .mm> n. 11.)63,869.98 Me.nutacture.ra' it'll.st Co~ Credit SUicee nmJ> Doll.!lr Account lBBD &lies Fr.:inc Account ~ S-111ea :Sobdo d'1& llecetiber 1/52, ________ _

!otQ.l n . 11.mn,869. 98 azlliiiii!i I

o action requi~mi.

o.o. !Ir. J'aJ ..... /

BPS,ptro:ch

FORM No . 57 (5. 48)

TO:


OFFICE MEMORANDUM DATE: January 29, 1952

FROM :

Files ~

Joseph Fajans ~ -

SUBJECT : Herstelbank Loan

Dr. Grooters told me yesterday that he had been informed by the Herstelbank of the extension or their existing credit arrangements with the Schweizerische Kreditanstalt until Oct ober, 1952. The amount or the accommodation remains unchanged i . e., Sw. Frs. 2 million.

The arrangements were or iginally made in 1949. Their purpose was to enable the Herstelbank to take care or numerous small payments to Swiss suppliers before assembling the documentation required by the Bank and submitting withdrawal appl ications t o us .

The Bank has always been aware or the existence of these arrangements . I indicated to Dr. Grooters that there was no objection on our part to them being extended.

Cc . Mr. M. F. Verheyen Mr. B. P. Spiro

Januar,' 22, 1952

Dear :or. Soutendijk:

I take pleasure in returning two copies each or the re-rlsed

schedule or projects and list or goods ot the Herstelbank loan,

d~ confirmed by the Bank.

Enclosure

Dr. L. R. v. Soutendijk Financial Counselor Netherlands Embassy 1470 Euclid Street, N. w. 'Washington 9, D. C.

Yours verr truly,

Joseph Fajam1 Assistant Loan ornoer

FORM No . 57 (5. 48 )

TO:

FROM:

SUBJ EC T :


January 18, 1952

/ 1. Reference is made to~ memorandum of January 16, with which I enclosed the amended amortisation schedule of the Herstelbank loan for your confirmation.

2. Dr. Soutendijk has now submitted the revised schedule of pro-jects and list or goods of the Herstelbank loan •

.3. Your signature is requested on the confirmation form of all six copies attached.

4. The documents were prepared at the Bank am cleared with the Legal and Treasurer's Depart.ants.

cc: Mr. Lejeune

'

.t ..t"te - noc'j._r:y o.11<.1. H c 1. u ~ i h. us J o r\ :.;. r • r. l::l s D r J

..:le.cc, tutu living b."t .1.'!le nagu.c: , ·:1s wi. enes~c:~ ··- -------

Immediately after a due reading of the whole of this, th,

appearers, the witnesses and I, notary, have signed this de1

which is to be given out in threefold and "in origiaali"-

/ ~,:. ,;~L__ -- - r .....

/ i~~ I

I

.. t r t:i,t)tretra te ·s-Gravent,agt ~../...:.e-.. ~~-1 900 /-. ~..e en vijftig in dee I 2 t"J> folio tJ / num,ne, / Y/ /.

dangehechte onderhandse st ukken: L, · -~ e-~ blad 12.....- r. renvooi .

.Jnuangen vo.-r recht dr ie gulden

. r 1.-

f

This ~~..,1,,u..,.u day of January nineteen hundred and fifty

two personally appeared before me, WILll.;M Grt01~, notary residing

at The Hague, in the presence of the witnesses named hereafter:

2

11 JOH.ANNF'~ ~'£<ANS POciTHUMA, residing at 'rhe Hague·

1\IILLEM LOO~.fJ<D Aft'llQ.NIUb MAHI~ VA..~ DE KAMP, residing at The

Hague, . ~ --

acting for the purpose o! this authorisation in their quality

of respectively Presiaent-MaJULging-Director and Becretary-Mana

ging-1.Jirector of the limited compacyi "Maatscbappij tot Finan

ciering van het .,atior.aal herstel N.V .", established at The

P.ague, and as such bccording to article 14 sub 3 of its arti

cles of association representing the mentioned company.~- -

~h~ &~ y eu.rer ti decla red to withdraw as per January first nine

teen hundred a nd fifty-two, the authorisation granted by nota

rial deed of August tenth nineteen hundred and fifty to Mes

sieurs: - -

JJoctor W l- Ici HU-11GSH ·,HLL~ .>OU'5ND1Jl and ANDRI~ DANIEL ~UD

dJ Y:.:.,..;1, , both living at /Jashington (District of Columbia), United

:Stat.es ot' i\Dl.ericc:1- - ---

.'he appearers declared further to desire to now grant a new

authorisation in order to replace the authorisation mentioned

above granted on August tenth nineteen hundred and fifty, and

declared for this purpose ta make, constitute and appoint as

true la\ffi.u and sole attorneys of the said limited company in

the United States of Americar~~.--~

Messieurs Doctor LOUici RUTG~R WILLgM SOUTSNDIJK aai JAN Ga.JOirn;RS

both living at Washington (District of Columbia), United States

of America, -·------ --·- - --· --· ··- .. -·-

giving and hereby granting unto the said attorneys, both jointl.j

'

and separately full power and authority, for the

purpose of the execution of the loan agreement concluded on th1

twenty-sixth of July nineteen hundred and forty nine between

the said limited company aad the International Bank for Recon

struction and Development, established at Washington-----

to withdraw from said loan and sign the necessary documents th,

reto1------------------------------to make up, execute, deliver or alter applications;•----- ~

t o execute, deliver and sign bonds and interest coupons be

ging to . s~ch bonds.....-___ _

to exchange views with accredited representatives of said Inte:

D8.tioaal SanJt for Reconstruction ~nd Development and to make

suggestions and observations ... · - -- -- ----- _ _ _

to give receipts and discharges,--- -

to take and perform all · further actions which shall be neces

sary for the purpose of the execution of the aforementioned lo

agreeaent all with power of s·ubstitution by such person re

in the United titates · of America whose nomination shall previou

ly be approved in writing by said company.~---- --

Thia aut~risation remains in force in respect of Internati

a.al Bank ~or Reconstruction and Development up to the time whe.

International Bank for keconstruction and Development shall

receive written notification that the "Maatschappij tot Finan

ciering van het Nationaal Herstel N.V." has withdrawn this

authorisation.----- - - -

The a~pearers are known to me, notary----

In deed whereof drawn up at the date, ment~oned in the head

ofttiis instrument, in the presence of Messieurs N i~~ e w

.a en d r ik ~as n er va n d e r V o o r t , tiuusti

Ge.zien ·voor

--~ '

/ --· D,I M,nitter Yffl

Bu1tenlar1d,e Zaken De SKret.rfl .<;.,,., • •

''nor dez.,

Ki' 4''.::,.•,"'l· . . , · F'~( ) ,, . C,T'( '.. L I"',•.

:

) . \. - ..

,.

, . Thomas D.McKiernan • I

(jeiien vv..., r legahsat1e van de handtekeniRg, van de Heer ..--ffi · " · ./~ ~ . , • Pretident van de Arr. Rechtbank te ../ 6,,'. · '<-~'- •'~A ~ -<.

•/(. , r>l"lha£E' . •. ·: JA j~ lh:;f . · ,. ~·1ir,•ster van L. st1t 1e.

•. M1r· ist c r , Het H: !d van ce Aid. A lgemene- en Ka~inetszalten,

Voor d~

_,-

<..

..)

,, I , ,)(

f-- .. ·~c" ..... ~1i=s.tt .L.. Lagers by

•· ,eel

ROTI EROAM , NETHERUNO'>

I - - -7.(·s, uv f'i u\ Lli i-.~r

·-.,,.- . ·, . • 1 t: - ~ 1,1 r . ._, l

,., ' . , ,y:i ,J _ __ .., ., _____ _

•

FoRM No. 57 (5- 48i

TO:

FROM :

SUBJECT:

NAL BANK FOR RECON STRUCTION AN D DEV ELOPMENT

FFICE MEMORA~~DUM Hoa\\( through Mr~ S • Cope) ~ ,~~

Joseph ajans ' • ,b J ~o"'

HERSTELBANK LOAN


1. On January 9, the Herstel bank cancelled $870,000 of the undisbursed balance of the loan, thus reducing its amount to $7,930,000. The amortization schedule was consequently adjust,ed and $58,000 vas deducted from each of the 15 dollar maturities pa;yable between June 1, L957 and June 1, 1964. The 9 early installments payable in Swiss francs vere left unchanged.

2. Dr. Soutendijk subnitted the official request for the amendment of the amortization schedule on January 10 and was to submit the revised schedule of projects and list of goods within the next few days. Since there is a delay in the transmittal of the l8tter two documents, I should not like to postpone aey further the confirm~tion of the amended amortization schedule.

3. Your signature is requested on the confirmation form of both attached copies.

4. The letter was prepared at the Bank and cleared with the Legal

and Treasurer' s Departments.

cc: Mr. Lejeune

F][LE COPY

1 ••

cc: Mr. Cavanaugh Mr. Rutl and (2) t r. Perez

UDeely/gp

( A/ l)

/t/r-fl-/,

MUTSCHAPPIJ TOT FIN.IJICIERIOO V .lN HET

NATIONAAL HFRSTEL N.V.

FJ./94

1L70 Euclid Street, N. w. Washington , D. c. JanW]ry 12, 1952

International Bank for Reconstruction and Developaent

l.818 H Street, N. W • Wuhington 2;, D. c.

Gentlemen a

Referring to the Loan Agreement dated July 26, 19L9, betweer.

the International Bank !or Reconstruction and Develorment ann Maatacl1ar pii

tot Financiering van het Nationaal Herstel N.V ., there is i:-.ttached r,e reto

a completely revised schedul~ of proj ects to which your agreement is re

quested in accordance with the provisions of Article I (15) of SAid Loan

Agreement.

Pl.ease confirm your agreement by signing the form of confirm2tion

on the enclosed copy of this letter and returning it t0 us.

Very truly yours,

llAATSCHAPPIJ TOT FINANCIERING V /...:, HET NATIONAAL HF:RSTEL N. V •

by f."'1~~ lutr.orized Representative

Approved: KING00.1.1 OF l'?.E NETHERLANDS

by R.J~~~ Authorized Representative

Confirmed: Date: INTERNATIONAL BANK FOR RE(l)NSTRUC1'iON AND DEVELOPMENT

By~-/"~ ~!!111!!3~~~ ...... ~ ·~---~ Loan Director

-

•

SG!iliDt-1,E 1


I. Glass Project - N.V. Vereenigde Glasfabrieken.

The plan+ ~f the Company at Schiedaa is to be modernized by the replacement of part of the old equipmPnt with !lPlf ma~hincs. These wlll cons i st mainly c.t· press, annealing and polishi1,g .::q;paratus and bottle-!o?'1Ping machines. The replacemPnt progre.m will enable the company to attain an a~rual capacity c f 77,50C tor.s of container glass and housP.hcld ~lassware , compared with the prese~t u7,100 tons .

Ill. ChPrnical Proje~t - Staatsmijnen.

The Company' s program is designed to utilize more efficiently thP. er 31_

production of t he Netherlauds .

A new plent wi:1 tie built in Limhurg with an annual phenol-rro,it.ci~g capacity of 6,000 ton~ .

The power generating capacity at the "Elnma" mine in Limburg w.;J.1 be i ncreased by the ins t alJ ation "r a boiler and a 25,000 kw. turbo .;enerator.

The equipnent for the production of sulfuric acid and potassium ferrocyanide from l'\Ydrogen sulphide and hydrocyanide acid in Limburg will be modernized and the ca.pacity for prcriuction of sulfuric acid will be increased from 40,00C tons to S8,ooo tons of contact acid and of potassil.Ull ferro-cyanide from 180 tons to 2,380 tons p~r a~nure.

A new plant will be erected in Limburg capable of producing annually 1,800 tons of phtalic anhydride from the napthalene derived in the coking process.

! new coking plant will be established at Beek and t~e eYi,ting coking plant at the "Maurits" mine will be eYpanded an1 reequipped. A new coal h~nker and conveyor, together with a new c0~e sieving inst~llatlon will be erected to service the "Maurits" plant. The coking capacity of the Company will thereby be increased from 1,675,000 tons to 2,497,000 tons per annum, and the capacity for coal gas production from 177 million to 352 million cubic meters per annum. The Company's capacity f~r the pro~uction of anthraceno (40 per cent) ~111 be in~reased from 700 tons to 1,580 tons per annum, ~f naphthalP.ne from L,~00 tons t o 8,520 tnn~ per annum, ryf creosote coal tar from 25,000 to )6,250 to~~ per annum, and of coaltar pitch from 30,000 tons to h~,000 tons per annum.

A new plant will be erected _j_n Limburg l'ith c1. capacity for the pro-iuction of Joda ash of 27 , 000 t el"., per annum. A:,,r.ioniUT!l chloride , as e. byf "vri;..ct, will bP sol1 a~ fertilize r .

\

- 2 -

' The tertlliser plant or the Compaey- at Limburg will be modernized and it• oapacit7 vill be inoreaaed t'rOII 58,000 tons or nitrogen per annwn to lOS,000 tons, including the output or the soda ask and sultate plants of the Callpa.D,T.

• nev plant v1ll be erected in Lillburg tor the production ot urea, with a oapacit7 or 6,000 tons per annum.

• nev plant will be bull t consisting or a unit tor the production or 070lohexanon and a unit tor the production~ caprolactana which is the raw aaterial tor the Jl&mltaoture or Enlcalon fiber. The caprolactam unit will haYe an annual capaeit7 ot about 3,600 tons.

The producer gas plant at the "Maurits" mine will be modernized to enable it to obtain producer gas with a calorific value of 2,800 calories per cub1• .. ter.

IV. Chemical Project - N.V. Maatschappij tot Exploitatie Yan Kookaovengaasen.

lev equip:aent will be acquired and installed at the Compaey-'a plants at IJmuiden in order to increape the plant's fertilizer prodJction capacity troa 16,000 tons to 51,000 tons or nitrogen per annum.

V. Cbeadcal Project - N.V. Koninklijke Nederlandsehe Zoutindustrie.

Equipment vill be installed at the Company's plant at 'Qengelo for expansion ot salt, chlorine, hydrochloric acid, sodiwn hydroxide and copper oxycblorid~ production and tor the replacement of worn-out apparatus. Production capacity of table salt will be increased from 250,000 tons to 400,000 tons per annwa, ot sodium b1'droxide from 10,000 tons to 20,000 tons per annaa, or chlorine from 9,000 tons to 24,000 tons per annum, and or copper ox;yohloride by 700 tons per annUJ1.

VI. Chemical Project - N.V. Fabriek van Chemiscbe Producten Vondelingenplaat.

The CO!llp&n.1'• plant at Vlaardingen v1ll. be aodernized and expanded to increase the annual capacit7 or finished aniline dy'ee from 1,200 tons to 3,200 tons per annUI1, and to pennit the production of other ohemicals, including formic aoid, oxalic aoid and sodi\n sulfate.

VIII. Chemical Project - N. V. Kempenache Zinlmaatschappij.

Modernisation or the exi1ting plant at Budel will be undertaken to increase the capacit7 tor roasting zinc blends, by the installation or a Dwight-Douglas furnace. In addition by replacing the chamber vitb the contact process, sulfuric acid production capacit7 vill be inoreaaed trc:n 65,000 to 92,000 tons per annum.

X. Machine Project - Machinefabriek Gebr. Stork & Co., N.V.

By the acquisition of new machiD9 tools, the Cc:npany will complete its new installations at Zwolle, which will specialise in the production or diesel motors, th~s permitting the Canp~1s plant at Hengelo to concentrate on turbines and boilers. Production capacity is expected to increase by 20 per cent per annum .

\

- - 3 -•

XI. Ma.chine Project - N.v. Koninklijke Nederlandsche Grofsmederij.

Lathes, shears, anti chain welding and bending machines will be inst~led in order to expand and modernise the Ccnpany' s equipment at Leiden. The oapacity for the production or crankshafts will be increased rran 5,000 tons to 6,000 tons and of chains from 2,500 tons to J,200 tons per annum.

XII. Wire Projeot - N.V. Draadindustrie "Neerlandia".

To prevent decline in production which may amount to 25 per cent, due to outmoded and wor1rout machinery, the Company will replace old wire-making equipnent in its plant at Jutphaas. New wire-nail and drawing machines will also be acquired, and apparatus for staining and water cooling.

XIII. Electro-technical Pro~ect - N.V. Hollandsche Draad- en Kabelfabriek.

The Company will e~·ect a new plant at AmstercJalTI for the production of rubber, polythene and saran yarn wire cables. Production capacity for rubber cable will be increased by 11 per cent . Plastic and saral'l cable will be produced for t he first time in the Netherlands. Equipment tor coating paper with polythene r esin having a capacity of about 8,000 cubic meter/8 hour shift will be installed.

XIV. Electro-technical Project - HUlern Snit & Co I s Transforrnatorenfabriek N.V.

The tr~sformer plant of tte ComFany at Nijmegen will be expanded and the capacity for production of transformers and generator wire will be increased by 25 per cent per annum.

IVI. Paper Project - Koninklijke Nederlandscbe Papierfabriek N.V.

A eectional electric drive will be installed tor the new paper making machine purchased in Germany which paper machine will be added to the four already in the Company's plant at Maa.stricht and the latter will be improved. Pa.per coating machines will also be acquired. Capacity will thereby be increased fran 11,400 tons to 23,400 tons per annum.

XYIII. Textile Project - N.V. R. ten Cate en Co.

The Company's plant at Al.melo will be expanded and modernized by the aoquisi tion or new spinning and waving aachiner, so as to increase 1 ts yarn spinning capacity tran 5,100 to 5,900 tons and its capacity for production ot finished goods from 40 a111.ion to 45 million square meters per annum.

XIX. Textile Project - N.v. Katoenspinnerij BalllshoeTe.

By the acquisition or new spinning machinery, the plant at Enschede will be modernised and the capacity of the roving department increased. Capacity will be increased from 5,700 tons to cotton yarn per annum to 71400 tons.

•

•

• - 4 -

XI. Textile Project - De Wit's Textiel Nijverheid N. \'.

In order to 11alce more efficient the Company's production of cotton 'll'd voolen fabrics and blankets, equipment of the plant at 'iollanc will be moderni .. d b7 the acqui•ition ot new machinery for cleaning and dyeing. Output per worker per hour vill increase by 15 per cent and pr oiiucti C'n capacity vill inCNaN b7 12 per cent per annum.

III. Textile Project - N. V. Koninklijke Weetgoederenfabr1ek ~-~- Ster ~ · Co.

Th• Ccap&117 will build a new factory to replace the pre sent on~ at Hea,elo. Capacit7 tor production or cotton fabrics vill be incr&ased to '32-7 tou per &DmJIII tro11 the present 221 tons.

XIII. Textile Project - N.V. Hollandsche Textielindustrie.

The Caap&n7 will increaN its wool yarn output an~ its weaving mill at Goirl• will be aoderni .. d, with a resulting increase in capacH y froM 5;::,r· , 000 to 550,000 aqua.re 11eter• in capacity of finished wooler fahrirs 9er a..nnUD1 • .la a N81&.lt, the Company v1ll be able to supply al l its wool yarn requ1rem~nts.

IXIII. Textile Project - N. V. Textiel Industrie Maatsc~ ap1-,1J "Apeldoorn".

Twenty stitching machines vill be added to the equipmert of the plant at jpeldoorn ao-aa to increase ite underwear production capacity ~rom 1,600,000 to 1,700,000 units per annum.

XIV. Gear Manufacturing Project - N.V. Koninklijke Maatschappij "de Schelde", Vliesingen.

Machine toola and allJriliaries will be purchased for cutting and grinding spur and helical gears and a oew building erected to house thie equipment. Thia will be the onl7 plant ot thi• type in the Netherlands and vill produce gears for internal u.se by the company' aa wel l as tor the domestic and export markets.

XXVI. Textile Project - N. V. Spinnerij Ooeteneld, Enachede.

The spinning tramea of the company will be converted for higher epeel operation and oew high speed frames will be inetalled for modernisation ot the plant and for replacement of var-damaged equipnent. It 1a eat1aated that production of cotton rayon, woolen and mixed 7arna will be increased b7 about 7501 000 kg. per year with ,ubstantial i.'llprovement in quality and with lover rav material coats.

XXVIII. Textile Project - Stooaapinnerij te NijTerdal N.V.

Thia project involTes the modernization or the cotton spinning equipment of the Company by the addition of new lapwindera, drawing rramee and highdraft f'ramea. An increase in production of' 200 tons or yarn per annum 1a anticipated as well as improved quality and reduction in costs.

XXIX. Textil e Project - H.P. Gelderman & Zonen N.V.

The spinning a.ne weaving departments or the Company will be modernized by the addition or automatic looms r or rayon production and of miecellaneous

- .

•

. .,. - 5 -

' spinning equipment. The new spinning equipment will provide an increase in production ot yarn or about 60,000 kilograms per yea:r while the new looms will provide a net increase in production or approximat~ly one million meter~ per year or woven fabrica.

XXX. Textile Project - Stoomweverij te Nijverdal N.V.

Twenty-four modern automatic looms for weaving -rayon fabrics will be installed with rope washers and stripping machines for general use in order to improve quality and reduce costs.

• . .

XA.ATSCH.APPI J T~ FINANCIERI NG VAN ~ET

NAT IONA.LL HEF STC:L N. V.

Internation&.1 Bank for Reconstructi on and DeveloPment

1818 H Street, N.W. Washington 25, D. C.

Gentlsmen:

1470 Eucl i d Street, N.W. \.fashington, D. c.

Referring to the Loan Agreement dated July 26, 1949,

betvean us, there is attached hereto a c001pletely revised list ot

goods to be purchased out of the proceeds of the Loan to vhich

your agreement is requested in accordance wi t h the provisions ot

Section 1 of Article III of said Loan Agreement.

Please oon!irm your agreement by signing the form or .. oont'irmation on th• enclosed oop1 of this letter and returning it

to ua.

Appr0Ted1 KINGDOM 01' TKE NETHERLANDS

b7 lA~d,u,,,. Authorised Representative-

Confinneds Date: INTERNATIONAL BANK FOO RECONSTRUCTION AND DEVELOPXENT

b7 .... ~ Loan Director

Very trul7 yours,

MAATSCHAPPIJ TOT FI~IERING VAN HET NATION.UL HERSTEL H.V.

b7 I.A~~ Authorized RepresentatiTe

. . '

I

III

- N.V.

llVISll> LIST ~ GOODS TO BE PURCHASED WITH PROOEEDS OF LOAN 1'R(J(

IN'. ZRNATIOJUL Bil1t 1'Cll JWCOISTRucno, AID DEVELOPMENT

(Amount expreased in United State• Dollara)

Goods

Vereenigde Glasfabrieken. Equipment necessa.r7 for modernisation of glasa factory including pr•••••, anneali ng and polishing apparatus, bottle forming machines and transport installation. •

Staat•ijnen.

a. Phenol Plant. Equipment neceasary- to build a nev plant, including a merc11r7 boiler, meaauring in1truaenta and atainle•• ateel.

c. lapbtbalene and antbrao•• plant. Erection or a pel'llanent plant tor the prodaatioa ot aaplthal ... and antbraoene vitb IIOderaisation or the preaent equ.ipaeat iaollldia& centrifuge• and .. uar1111 inatrUMnta.

e. Potaaaiua terro-c7&nide plant. Equipment to aoderniH and ~ crease the production of potaaaim terro-c7&Dide inollld-ing ••aauring imtraenta.

t. laprOYed Saabord p·roce •• tor h7'drogen sulphide removal. Equipaent to modernise am inorea,e the produotion or aulpburic acid inoluding ••aauring inatnaaenta and stainleaa steel.

•

Total uout to "Pgrgbftt4

4lJ,2So.OO

413,250.00

.- , ...

i - 2 - . Forward $ 413, 250. 01)

g. Pbtallio ~$!ride plant. • Equipment necessary to erect

a nev plant producing phtallic anhydride including valves, measuring instruments and eTaporating pans.

h. Soda plant. Measuring instruments and other

. equipment neoeaaary to erect a nev plant for production of soda ash.

j. coke plant. Engineering and equipment to 8xpand and re-equip a coke plant and erect a new one including special iron parts and parts for oven machinery.

k. Urea pl&nt. Measuring apparatus nacessary to erect a new pl&nt tor production or Urea.

1. H.P. Central Station. Valves, f8Miwater and steam regulating installations and t'urther equipment to increase ~he power generating capacity ot' a mide in Limburg.

m. Fertil~ser plant. Equipment including stainless steel and measuring ins tru.~ents to modernize and expand fertilizer production.

n. Miscel l aneous and contingencies. (subject tc approval by the Bank)

o. Cyclohexanon plant. Equiprient needec for a ne" p::.,1nt including measuring i nstr wn~.mts and salt bath .

P• Caprolactam plant. Equipment nee,~ed f or a ne A i:19.nt including measuring i nstr,.ments and ci sti]lntion appa.r~tu3.

For1.:ard 413 , 250 . ".'C

,.

V

- J -

Fon1ard

q. Ox,-gaa plant. Equipment needed t o modernize a plant including measuring and control ling i nstruments

- N.V. Maatechappij t ot Expl oitatie Tan Koksovengasaen. Various apparatus and material neceaaary to increase t he production of the several departments contributing to fertiliser pr oduction.

- N. V. Xoninklijke Nederlandsche Zoutinduetrie. Equipaent to expand salt , chlorine, hydrochloric acid and other chemical production including oentrit'ugea, ca11preasor s and coolers

VI - N. V. Fabriek Tan Chemi sche Proclucten Vondelingenplaa.t. 4utoclavea, canpressors, dryers, pharmaceutical equipment, f reedng unit and other equipnent neces1a.17 to aoderniH and expand a plant or aniline dye•.

VIII - N. V. Ieapen.ahe Zinlmu.tachappiJ . lqut,..nt neceN&17 to lloderniM a plaat produoinc si• bleada and expand productio11 incladiJlc one turnao., blower and catal.7Nr.

I - Maobinetabriet Gebr. Stork & Co. 1.V.

II

Bor1na, tappinc, tundnc and drilling aaohinea neceaa&r7 to complete a new inat&llation apecialiMd in the produotion ot dieNl 11<>tora.

- 1. V. Ioninltlijb lederland.cbe 0rot .. deriJ. Vertical turret lathe and billet ahear• cuttinc machine neoeesa17 to expand a plant producing crankshafts.

.. •

• 413,250. 00

1 , 544, 200. C<)

177 , 350. 00

227 , 500 . 00

• 106,500.00

• 293,641.70

• 82,000.00

2,909,121.56

• . . -4- . .

Forward $ 2,909,121, 56

nx - 1.v. Dra&dindustri• •1eerlandia". Fine~ d.ravta, aachinea and acceeeoriea to aodern1 .. a wire plant. .38, 268 .no

n11 - I. v. Holla.ndecbe Draad - en Jtahelt abriek. lxtrudera and otMr equipment neceaa&r7 to aodernise the pro-duction ot rubber cable and a&Dutac-tare aaran and polythene coated paper. 240, 000 .00

IIV - Willem Sdt & Co•e Tranatormatoren-tabriek 1.v. Bquipaent including vin enaael aacbinea, velding 111&ohinee, rota17 ahear and apparatus tor high voltage teatlng. 151,700 .00

XVI - IoDinkliJk• !lederlandache Papiertabriek. Equipment tor the modernisation and 1.aprOY .. ent ot the paper making process

116., JOO . OO ot a ~r aill.

XVIII - N.V. H. ten Cate & Co. Spinn1nc, weaTing and other textile aachine17 tor modernisation and expanaion ot textile 11111. 1,963,140.00

XU - KatoenspinneriJ Bamshoeve. Drawing tramea and other textile maohinery for modernisation and in-oreaee or production ot a textile mill . 697,400.00

xx - De Wit'• Textiel NijTerheid N.V. Machinery tor cle~ and dyeing neceaaa17 to increase production ot cotton and vx,llen tabrica and blanketa. 122,500.00

XXI - N.V. Koninklijke Weetgoederenfabriek C. T. Stork & Co. Equipment including winding, dye-ing, drying machines, loans and pirna neceaeary for a nev cotton tabric1 factory. 600,000.00

Forward

. . - 5 -

Forward

XXII - !1 . V. Hollandsche Textielindustrie. Four cylinder wool card and vacuum stripper and wastQ conveying equipment necessary to increase and modernize weaving mill.

XXIII - N.V . Textiel Industrie Maatscha.ppiJ "Apeldoorn". Stitching Machines necessary to increase output of undervear.

XXV - N.V., KoninkliJke Maatscha.ppiJ "de Schelde" . Equipment for cutting and grinding spur and helical gears for machine plant and 1hip7ard.

XXVI - N.V. Spinner,. Oosterveld, Enschede. Equipment for production of yarns including ring spinning frames and high draft speed frames


XXVIII - stoanspinnerij te NiJverdal N.V. Equipment for the production or cotton fabrics including lapwinders, fraJDes, svitchea.

XXIX - H.P. Gelderman & Zonen, N. V.

XXI

Spinning and weaving equipment for production of yarns and f'abric .

- Stoomveverij te Nijverdal N.V. Twenty four 60" looms for weaving rayon fabrics, rope washers for bleaching plant and s tri pping machines tor weaTing tubes.

.. Total

•

~8 ,612.00

9,411.78

3~>0,000.00

2JL5,000.00

2,701.92

67,474.99

273,100.00

105,269.75

7, 9310 , 000. 00

•

•

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

January 11, 1952

To: Mr. M. Verheyen

From: J. Fajana f Both attached documents were

handed to Dr. Soutendijk this morn

ing. I would appreciate it if you

could

day.


NATIONAAL Ht:R.C,TEL N .V. 1470 Euclid reet, N. w. Washington, • c.

International Bank for Reconstruction and Developaent

l.818 H Street, N. 1J • Washington 25, D. C.

Gentlemen a

Referring to the Loan Agreement dated July 26, 1949,

the International Dank for Reconstruction and Developnent and atachappij

tot Financiering van het Nationaal Herstel N.v., there is atta d hereto

a completely revised schedule of project~ to which your agre

quested in accordance with the provisions of Article I (15) of said Loan

Agreement.

Please confirm your agreement by signing the form of nfinaation

on th~ onclosed copy of this letter and returning it to us .

Approved: KINGOOlt OF THE NETHERLANDS

by Authorized Representative

Confirmed: Dates

Very truly yours,

l.fAATSCHAPPIJ TOT FINANCIER VAN RET NATIONAAL HERSTEL N • •

by Authorized Representative

INTERNATIONAL DANK FOR REOJNSTRUCTION AND DEVELOPMENT

By-----------

SCHEDULE 1


I. Glass Project - N.V. Vereenigde Olaefabrieken.

The plant of the Company at Schiedan is to be modernized by the replacement 0£ part ot the old equipment with new machines . These will consist mainly of press , annealing and polishing apparatus and bottle-forcing machines. Tho replacement program will enable the company to attain an annual capacity of 77,500 tons of container glass and household glassware, compared with the present 47,100 tons.

III. Chemical Project - Staatsmijnen.

The Company's program is designed to utilize ~ore efficiently the coal produ~tion of the Netherlands.

A new plant will be built in Limburg with an annual phen~l-producing capacity of 6,000 tons.

The power generating capacity at the "Er!ma" mine in Limburg will be increased by the installation of a boiler and a 25,000 kw. turbo generator.

The equipment for the production of sulfuric acid and potassium ferrocyanide from hydrogen sulphide and hydrocyanido acid in Limburg will be modernized and the capacity for production o! sulfuric acid will be increased from 40, 000 tons to 58 , 000 tons of contact acid and of potassium ferro-cyanide from 180 tone to 2,380 tons per annum.

i new plant will be erected in Limburg capable of producing annually 1,800 tons of phtalic anhydride from the napthalene derived in the coking process.

A new coking plant will be established at Beek and the existing coking plant at the n1i1aurits11 mine will be expanded and reequipped. A new coal bunker and conveyor, together with a new coke sieving installation will be erected to service the "Maurits" plant . The coking capacity of the Company will thereby be increased from 1,675,000 tons to 2,497,000 tons per annum, and the capacity for coal gas production from 177 million to 352 million cubic meters per annum. The Company' s capacity f~r the production of anthracene (40 per.cent) will be increased from 700 tons to 1,580 tons per annum, of naphthalene from 4,500 tons to 8,520 tons per annum, of creosote coal tar from 25,000 to 36,250 tons per annum, and of coaltar pitch from J0,000 tons to h2,000 tons per annum.

A new plant will be erected in Limburg with a capacity for the production of soda ash of ?7,000 tons per annum. Ammonium chloride, as a byproduct, will be soli as fertilizer .

-2-

The fertU1zer plant of the Compaiv at Limburg will be modernized and its capacity vill be inoreaeed from 5S,OOO tons of nitrogen per annum to 105,000 tons, inoludine ths output of the soda ask and sulfate plants or the Company.

A new plant vill btt erected in Limburg for the produotion of urea, vith a oapaeity of 6•000 tons per annum.

A new plant will be built consisting or a unit tor the production of oyclohexanon and a unit for the produotion or aaprolaotam which is the rav 1Jl4tor1al for the manufacture of Enkalon fiber. The oaprolaotani unit \till have an annual capacity or about 3,600 tons.

The producer gas plant at the "Maurits" mine will be modernized to enable it to obtain producer gas vith a calorific value of 2,800 calories per cubio meter.

IV. Chamioal Project - N.V. Maatsoha.ppij tot Exploitat1e van Kooksovengaesen.

Nev equipment will be aaquired anf1 installed at the Company' s plants at IJ'muiden in order to inoroase the plant's fertilizer production oapa.city trom 16,000 tons to 51,000 tons of nitrogen per annum.

V. Ch~ioal Project - N.V. Koninklijke Nederlandsche Zout1ndustrie.

Equipment dll be installed at the Co1npanJ''e plant a.t Hengelo for expansion of salt, chlorine, hydroohlorio acid, sodiUlll hydroxide and copper oxyohloride produotion and for th& replacement or \lorn-out apparatus. ?roduotion capacit1 or tahle salt vill be increased from 250,000 tons to 400,000 tone per annum, ot sodium hydroxide from 10,000 tons to 20, 000 tons per annum, of chlorine from 9,000 tons to 24,000 tons par annum, and ot aoppor oxychloride by 700 tons per annum.

VI. Chemical Project - N.V. Jl'abriek van Chemisohe Froduoten Vondelingenplaa.t.

The Oompan:,' s plant at Vla..rd1ngen w1ll b& modernized and expanded to incre~se the annual capaoity or finished aniline 079s trom 1,200 tone to 3,200 tons per annum, and to pend.t the pro uotion of other chemioals, inaluding formic acid, oxalio acid and sod1Ul1l sulfate.

VIII. Chemical Project - i. V. K8lllpeneche Zinkmaatsohappij.

Moderniiation of the ex1et1ng plant at Dudel ~111 be undertaken to increase the capacity for roasting zinc blends, by the installation of a Pwigbt-Dougla.s furnace. In addition by replacing the chamber vith. the contact process, sulfuric acid produotion capacit1 will be increased from 651 000 to 92,000 tons per annwn.

X. Ma.chine Project .. Machinetabriek Gebr. Stork & Co. , N.V.

By the acquisition of nev machine tools, the c~~pan,y vill CO'l\}>lete its nev installations at Zwolle, which will specialize in the production ot diesel motors, thus permitting the Comp.r,,r•s plant at Hengelo to conaentrate on turbines and boilers. Production capacity ia expected to increase b;y 20 per cent per annum..

- 3 -

XI. Machine Project - N.V. Konillklijke ederlandsohe Grof ederij.

Lathes, shears, and ohain weldin~ and bendin! ma.chines will be installed in order to expand and modernise the Company's equipment at Leiden. The capacity tor the production of crankshafts will be increased from 5,000 tons to 6,000 tons and of chains from 2,500 tons to 3,200 tons per amim.

XII. Wire Project - n.v. Draadindustrie "Neerlandian.

To prevent decline in production vhiob may amount to 25 per cent, due to outllloded and worn-out machinery, the Compar>;r will replace old vire-makin.g equipment in ita plant at Jutphaas. Nei., wire-nail and drawing machines vlll also be oqu1red, and app.ratua tor staining and water coolinff• ·

XIII. Electro-technical Project - N.V. Hollandeohe traad- en Kabelf'abriek.

The Company will erect a new plant at Amsterdam for the production ot rubber, pol,.thene and saran yarn wire cables. Production capaoit7 for rubber cable Ylll be increasGd ey- ll per cent. Plaatio and saran ca.ble will be produced for the first time in the Netherlands. Equipment tor coating paper vith polythene resin having a capacity ot about 8,000 cubic meter/8 hour ahitt will be installed.

XIV. lectro-technica.l .Projeot - Willem SDit & Co's Transformatorenfabriek N.V.

The transformer plant of the Compan,Y at ~ijmegen will be e:icpanded and the capacity for production or transformers and generator wire will be increased by 25 per cent per annum.

XVI. ?a.per Project - Koninklijke Nederlandeohe Pap1erfabriek N. V.

A sectional electric drive will be installed tor the mn, paper makiDg machine purchased in Ge?'!lla.D,1' which paper machine ""111 be added to the tour already in the Co:npany-'s plant at Maastrioht and the latter vill be improved. Paper coating achine11 vill also be acquired. Oapacit;r will t.liereby be increased frO.'lt 11,400 tone to 2..3 ,400 tons per annum.

III. Textile Project - N.V. H. tsn Cate en Co.

The CO?npa.ny'a ple.nt at Almelo \lill b3 expanded and modernized by the acquisition or new spinning a.nd weaving maohiner;y so as to increaae 1ta yarn spinning oapacity from 5,100 to 5,900 tone and ita capacity tor production or tiniehed goods from 40 million to 45 million square meters per annum.

XIX. Textile Projeot - N.v. Katoenapinnerij Bamehoe••·

By the acquisition or new epinning machinery, the plant at Enaohede will be modernised and the capac1t1 of the rovi?lg department increased. Capacity will be increaoed fro:ii. 5,700 tons to cotton yarn per annUnl to 7,400 tonu.

-4-

XX. Textile Project ... De Wit's Textiel llijv rhe1d 11.v.

In order to make ore et£1oient the Company•s produatlon of cotton and woolen t brloo cine! blankets, quip:.,ent of' the plant at Rolland vlll be moderniMd by the a.cqu!o1tion of new achineey tor cleaning and dyeing. Output per vorkar per hour vill 1noroas3 by 15 por cent nd production capaoi't7 vill 1nere ne by 12 pc,r cent r anntl?!l.

XXI. Textile Project - n. V. Xonink.U.jke \leaf' oederentabriek c. T. stork Co.

The COi:1.pan,y vill build a nov f otoey to roplaoe the pre89nt on• a.t Benplo. Capaoi ty tor production of cotton t abrios vill be inore~sad to 327 tona per nwn fror2 th pres nt 221 tons.

XXII. T, xtU ProJ ct - • V. Hollandoobe Text1elindustr1e.

fhe Cooipo.ny wlll increa.so 1 to wool yarn output and 1 ta veaving mill at Ooirl vill be odernied, with a r sulting incroase 1n capacity frcm 500,000 to 550,000 square meter• in oa.paoit,' or finished voolen fabrics per annum. 4a a r sult, the C~A?JY 'Will be &bl to oupply all its vool yarn requirements.

XXIII. Textile Project - N.V. Text1el Industri Ma tsohappij "Aoeldoorn".

nty at1tch1ng ma.chinos ulll be ddod to th qui nt or the plant at Apeld-"orn so ao to increa.ee its unc!ervear production capacity froC1 l,600,000 to 1,700,000 units per nu:.

XKV. Gear Manufacturing Project - • V. Koninklijk \Tliss1ng n.

atschappij "de Schelds",

Machine tools and :wr111ar1ea will be purchased for cutting and erlnding epur and helical ears nd a nev buil'.:l!ng erected to house this qui~n\ .. This vill the only plant ot this tJpe in th therlands and 'Will produne gears t or internal use b7 the co PAnY' aa vell as for the domestic and export ma:r~-ceta.

XXVI. Textil Project - ll. V. Sp1nner1J Oootorveld, sohsde.

Th epinnine tr e or th compnny will be converted for high r speed operation a.nd now high oped tram ulll bo installed for moderniiae.tion of the plant and for r plao ent or var-damaged equipment. It ia eetima.ted that production or cotton rayon, woolon flJld ixad yarns will be increased by about 750,000 kg. por year with aubata.ntial inprov~nt in quality 411d vlth lo\ler rav trial coats.

XXVIII. Textile P:rojoct - Sto inn rij te Nijv rdal N.V.

f his proj ct involves the modernisation of th cotton spinning equlp!1tn1t ot tho Compan, by the addition ot nev lap1d.ndors, draving tr s and highdraft !"ramaa. An incr ase in produotion of 200 tons of yarn per annum ia e.ntio1p ted as well as improv d quality an1 reduction in cocts.

XXII . Textile ProJeet - H. P. Geld rn'UlD 1,onon N.V.

the spinning and weaving departments ot the Co.'Opat'l7 will be modernized by the addition or aut tic looma tor raY'C)n prodUction and of mi celle.neoua

- 5 -

spinning equipment. The nev spinning equipment will provide an increase in production ot yarn or about 60, 000 kilograms per year vblle the nev looms ~111 provide a net increase in produotion or approximat 17 one million meters per year or voven fabrioa.

xn. Text!.lo Project - stoomweverij te N1jverdal N. V.

Tventy- four modern autol:latic looms £or weaving rayon fabrics will be installed with rope washers and stripping maohinea tor general use in order to improve quality and reduce costs.

MUTSCR4PPU TO'l' FIIAICIERIRG V Alt HIT

RATIOIALL H!TISTEL 'N. V.

InternaUoD&l 8U'lk tor Reooutruotlon and Dnelopan\

1818 HSU.et, R.~. Waahington 25, D. o.

O.ntl••n1

1470 Kuol.14 8'Net, •• v. Waahin,ton, D. c.

Retffl'hg to the Loan Agnellent dated lv.17 26, 1949,

betveen ua, there ia attached bento a acapletel7 NTiMd Ua\ of

good• to be purohued out ot the proeNda ot the Loan to vbleh

your agre••nt 1• requelted ln aoaordano• vith the prn1•1ou ot

Pl•a• oontirla yom- acre-at b)" •1Pinc th• fora of

oontirmation on the emlo•d oop7 or thi• letter and ntUl"DlDc 1t

to ua.

Approved• IIIODOK OF mE HETBERLAJIDS

b7 AuthoriNd RepreNntatiTe

Contimed1 Date1 INTIRHATIOJW. B.dtC FCll RECONSTRUCTION ARD DEVELOPMENT

V '1f'T trul.7 70ura,

MAATSCRAPPIJ TOT 1'IldCDUm VAIi BET JUTIOIUL HIRSTIL 1.V.

r

I

Goods

REVISED LIST OF GOODS TO BB PURGRASED YITR PROOE1IDS OF LOA FROM

INTmNA.'l'IONAL BA11K Fat MCOMSTRUCi'ION ANP DEVELOPMENT

(A111ount ~xpressed in United St&t•a Dollars)

- N.V. Vereen1gde Gl&atabrieken. Equip~ent neoessar7 for modernization or glass tactory including presses, annealing and polishing apparatus, bottle f'oming nuu,hinaa nnd transport inst lla.t1on.

III - staatsmijnen.

a. Phenol Plant. quipment nee Hary to build a. n.,,,,

plant, including a mercury boiler, oeaeuring instruments and ota.iiues• steel.

c. Naphthalene and anthraceno plant. Erection of' a permanont plant for the production or naphthalene and anthracene vith modernization of the present equipment 1nelud1ng centrif'ugea and mea8Ul'iD8 instruments.

•• Potaeeium ferro-c7anide plant. Equipment to modernise and increase the production ot potassium rerro-07anide including measuring 1natrul:13nta.

t. Improved seabord prooeaa tor hfdrogen ow.phide r81liovJ.. Equipm.ent to modernize and inoreaee tbe production ot oulphuric acid inolud1ng measuring instruments and atd.nleea steel.

Total Amount to be Purchaped

413,250.00

Forward

g. Phtallio anb7dride plant. Bquipment neoeasar7 to orect a new plant producing phtallio anhydride including valves, moaeuring inatnmiente and Yaporating pana.

b. SOda plant. 'Measuring inotrunent• and other

quipment nec,sse.r;y to er ot a nw plant tor production or &Oda ash.

J. Coke plant. Engineering and equipment to expand and re-equip a ooke plant and erect a nev one including special iron parte and pa'rta for oven aohineey.

k. Urea plant. 'Aeasuring apparatus nec•oo&r7 to er ct an,., plant tor production ot Urea.

1. H.P. 0 ntral Station. ValYes, t advater and steant regulating inot 11 t1ons and turther equipr;1ant to incraaee the pover gene~ting ce.pacit7 ot a mine in Limburg.

m. Fertilizer plant. Equipment including fJtainless eteel and oeaauring instrument• to mod rniza and xpan tert1111er production.

n. 11acellaneoue and oontinganci••• (subJeot to approYal by the Bank)

o. C,,Olohexa.non plant. uip:nent needed tor a nov plant

including msaeuring lnetritnonta and ealt bath.

P• Ca.prola.ctaxa plant. quip:ment needed for a n&w plant

including aasur!ng inatrum nts and distillation apparatus.

Forward

413,250.00

413,250.00

IV

V

- 3 -

Forward

q. Oxygao plant. quip::nent needed to modorniz

.. plant iru,luillng measuring and oontrollil:Jg instruments

- N. V. Ma.a.tachappij tot Explo1tatie van KoksOY ngaeson. Varioua apparatus and ma.ter1al neoeasal7' to increase the production ot the eev ral depar~nts oontributing tot rtilizar production.

- N. v. Koninl-..lijke Nederlandsche Zout1ndustr1e. Equipment to expand salt, oblorine, hydrochloric acid and other ohm:iioal production including centrif'ugee, co preaso1• and coolers

VI - • V. Fabriek van Chomisohe roduoten Vondelingenplaat.

Autoclaves, a~reesors, dryers, pharmaceutical equ1p:nent, treesing unit and other equlp:n.ent naoeeaCU7 to oderniae and expand a plant or aniline dyea.

VIII - N.V. lempensche Zinkmaatachappij.

I

XI

Equip!llent necessary to oderniae a plant producing sine blends and expand production including one tu.1'1-nace, blower and ca.taly'ser.

- M&chinetabriek Gebr. stork & Co. • V. Boring, tapping, turning and drllling m chines 119ceeea17 to co:npl tea nev 1natallat1on speoial1zed in tho production of diesel otora.

- n.v. Koninkl1Jke Ned rlandsobe Grotsmaderij . Vertical turret l tho and billet eheare outtii:ig aaohins necessary to expand a plant producing crankehat'ts.

Forward

413,250.00

1,544,200.00 ·

177,350.00 ·

• 227,SOO.OO •

106,soo.oo .

293,64.1.70 •

• 82,000.00 ·

64,679.86 ·

2,909,121.56

-4-

XII - r. v. rro.ad1nduetrie "Neerland:tau. Fine Yir~ drawing m~ahines and aocessoriea to modern.ime a vi.re plnnt.

XIII - B.V. Hollandsohe aad - en Kabelt&briek.

Forward

Extruder& and other equipment. necessary to modernize the production or rubbor cable and manutavture saran and polythene coated paper.

XIV - Wille~ S:11t & Co•, anstormatoren-tabriek N.V. Equip ent including wire enamel

ah1nse, weld1ng:mtt.ch1nee, rotar,r shear and apparatus for high volt testing.

XVI - Konink.tijke Nederlandeohe Papier.f'abriol::. Equipment for tho moderni~ation and improv ent of the paper making process ot a paper mill.

XVIII - N.V. H. ten Cate & Co. Spinning, voaving o.nd other textile maohiner7 tor modernisation nd exp&us1on ot textile 111.

XIX - Katoenspinner1j Ba~ahoeve. raving tra.mos and other textilo

machinery for odernization o.nd increase or production ot a textile mill.

XX - De Wit's Toxtiel ~ijverhoid N.V. aohiner7 ror cleo.nine and dyoing

neceesa.17 to increase production ot cotton and 1,00llen tabr1ca o.nd blanketo.

XXI - N. V. oninklijke Weetgoeder nr briek c. T. Stork & Co. Equipment inoluding '1inding, dyo-1ng, ~ machines, loom and pirn1 necease.r;r tor a new ootton fabric• faotory.

Foruard

2,909, l21, S6

)8,268.00

21+0,000.00 •

151, 700. 00 ,

116, )00. 00 ·

l ,963,140.00 •

697,400. 00 ·

122,500. 00 ·

600,000.00 •

r

-5-

Forward

XXII - l. V. Hollandeoho Textielinduatri•. Four c7linder vool onrd and v cuu:a stripper and 1,11;.ate conveying equipcent neoesao.ry to incre se nnd modernis waving nlll.

XXIII - N.V. Textiel Induatr1o t chappij "Apeldoornn. Stitching ohines neaessary to increase output of underwear.

nv - N.V., oninklljke toohappiJ "de Schelde". Equipment for cutting and grindlJ:li apur and bolioo.l genre for achine plant and ehipyQl'd.

XXVI - N. V. Spinnecy Oostorveld, Enschede. ~ui ~nt tor production of yarna

inoluding ring spinning tru.meo and high draft spa d fr es


XXVIII - sto01.!1spinnerij to Nijvordal N.V. ~u1pment ror the production or

cotton tabries including 1 pwinders, frames, switchae.

xm - H.P. Geldermau , Zon n, u. v. Spinning and weaving equipm nt tor production o.£ 7arna and f brio.

m - s tocc.wov rij te ?li,1verdal N.V. Twent7 four 60" looma for woa.ving rayon fabrics, rope washers £or bleacbing plant and atripping

achinee tor veaving tubes.

Total

6,838,429.56

68,612.00 •

9,411.78 ·

350,000.00 ·

215,000 .. 00 ·

2,701.92

67,474.99 ·

273,100.00

105,269.75 , - ~------7,930,000.00

M&ATSCHAPPLT Tor FINANCIERING VAN HET NATI CllilL HEBSTEL N. V.

International Bank tor Reconetruct.1.on and Dffelopaent

1818 B Street, B. l{. \laahington 25, D. C.

Gentlemen,

")' ~~1 · ;'·c:tT t ~

\'v' ~~>.,J ... ,~ Al

Reterr1ng to Section 6 or b'ticle IV or the Loan qree•nt da.ted

Juq 26, 1949, betveen International Bank tor Reconstruct.ion and DeYelop

•nt aZ¥i Maatschapp1J tot Financ1er1ng van bet Na.t1onaal Berstel N.V. , ve

request .,-our agreemnt that the &JDOUDt ot t 870,000 or the Loan cancelled

b7 us aa or Janaary 9, 1952, be applied against the respective aturi

tiea ot the inatal.lDlnt.a at the principal amount or the Loan in such iaan

DH' that the pq119Ate ot principal 1n the table or uort1sat1on (Schedule

2 to such Loan Jgr .. •nt) will be due as tollovs i

Date Puppt Dm

Dec. l, 19'2 June l, 1953 Dec. 1, 19S3 June 1, 1954 Deo. l 1954 June 1, 19'5 Dec. l , 19'5 June l, 19'6 Dec. l, 1956 June 1, 1957 Dec. l, 1957 June 1, 1958 Dec. 1, 1958 June l, 1959 Deo. l, 19'9 June 1, 1960 Dec. l, 1960

Pa;pept or Principal ..

$625,000 500,000 500,000 soo,ooo 400,000 350,000 3,0,000 350,000 350,000 267,000 267,000 267,000 2'17,000 267,000 267,000 1J.67,000 2p7,000

pate Payant P9!

June l, 1961. Deo. 1, 1961 June 1, 1962 Dec. 1, 1962 June 1, 1963 Dec. l, 1963 June 1, 1964

PAJ!!Dt or Prinoie9l

&267,000 267,000 267, 0CKJ 267,000 267,000 267,000 267,000

The KingdOlll ot the Netherlands, as guarantor under the Guarantee

~t dated Jul,y 26, 1949, between Kingdoa ot the NetJlerlands and

International. Bank for Reocmatruction and Developmnt, concurs in our

l'Oqlleat f'or such amendment.

Please confirll 7our agree•nt vith the foregoing hr signing the

tora ot contirmation on the anclosed COPY' ot this letter and returnin,

it to us.

Authorised Representative

IN'l'mHATIOlW. BANK Fat RECO?ETRUCTI OH AND DEVELOPMENT

Very traq 70Ql'a,

NAATSCHAPPIJ Tar FnlANCIERIJG VAH BET NATIOlfilt HERSTEL K. V.

Authorised RepreNntaUw

~T .·:

-: ....

MAATSCHAPPIJ TOI' FINANCIERING VAN HET NATI ONAAL HERS TEL N. V.

FA/72

International Bank for Reconstruction a.nd Development

1818 H Street, N. W. Washington 25, D. c.

Gentlemen:

Janu~, ry 10, 1952

Referring to Section 6 of Article rv of the Loan Agreement datA,d

Jul;r 26, 1949, between International Bank ror Reconstruction a.nd Deirelop

ment and l.faa.t~chappij tot Financi erinJ van he t ~ationaal Her,t9l s.~., ve

request your agreement that the amount of $-tl0,000 of the !.oa.n canc411ll8d

by us as of January 9, 1952, be applied against the respective •tw:·i

t ies of t.~e installDents of the principal amount of the Loan in such man-

ner that the ~nts of principal in the table of amortization

2 to such Loan Agree1J1Bnt) will be due as follovs:

Date Payment Due Pa,Y1D9nt of Principal.

Dec. 1, 1952 $625,000 June 1, 1953 500,000 Dec. 1, 1953 500,000 June 1, 1954 500,000 Dec. 1 1954 400,000 June 1, 1955 350,000 Dec. 1, 1955 350,000 June 1, 1956 350,000 Dec. 1, 1956 350,000 June 1, 1957 267,000 Dec. 1, 1?57 267, 000 June 1, 1958 267,000 Dec. 1, 1158 267,000 June 1, 1959 267, 000 Dec. 1, 1959 267, 000 June 1, 1960 267,000 Dec. 1, 1960 267, 000

IS

, . " •

Date Paymefit Due

June 1, 1961 Dec. l, 1961 June 1, 1962 Dec. 1, 1962 June 1, 196.3 Dec. l, 1963 June 1, 1964

Payment of Principal

$267,000 267,000 267,000 267,000 267,000 267,000 267,000

The Kingdom or the Netherlands, as gw,.rantor under tbe Guarantee

Agreement dated July 26, 1949, between Kingdom of the NeUierlands and

International Bank for Reconstruction and Development, concurs in our

request for such amendment.

Please confirm you:r agreenent ,.,i th the f oregolng by signing the

form of confirmation on the enclosed copy or this letter and returning

it to us.

Ap?roved:

KINGD(!,I Jf THE NETHERLANDS

By v:. /:~a4u._ Authorised Representative --

Confirmd:

INTERNATIONAL BANK Fal RECONSTRUCTION DEVELOPMENT

Very truly yours,

MUTSCHA.PPIJ TOI' .FI:ttNCIERI~G VaN HET NATIONAA!. HERSTEL N.v.

By

Authori~ed Representative

FORM No . 57 (5. 48)

TO:

FROM :


/

OFFICE MEMORANDUM Files "'1 Joseph Fajans '\\"

DATE: JanUEi.ry 9, 1952

SU BJ ECT: Herstelbank Loan

1. Dr. Soutendijk discussed the cancellation of the unallocated balance of the Herstelbank loan with Mr. Lejeune and Iey"self this afternoon.

. 2. The discussion centered on the application of the cancelled amount to the semi-annual maturities of the loan. Dr. Soutendijk fully understood the interest of the Bank in the maintenance of the early SWiss franc maturities of the loan at the present level. He readily agreed to the reduction of the fift een later dollar maturities by the whole amount of the cancellation, i . e., $870, ooo. This means that each of the fifteen $325, 000 maturities will be reduced by $58, 000 •

.3. Dr. Soutendijk raised the q11estion whether, without reducing the total of the Swiss fr anc maturities payabl e through December 1, 1956, the Bank could lower the 1953 and 1954 maturities and increase the 1955 and 1956 paY]OOnts. After being informed that the repayments on account of the Bank' s own Swiss franc bonds are especially heavy in 1953 and 1954, Dr. Soutendijk declared that the matter is not of very great relevance to him, in view of the smallness of the amounts involved.

4. It was agreed that the staff would draw up the necessary documents and send them to Dr. Soutendijk for submission to the Bank over his signature, as representative of the Herstelbank in Washington.

5. The Herstelbank' s formal request for the cancellation of the amount of $870,000, signed by Dr. Soutendijk, as authorized representative, was handed to 100 and is on file .

cc: Messrs. Cope Lejeune Cavanaugh Stevenson Verheyen

Miss Morsey

FORM No . 57 (5. 48)

TO:

FROM:

SUBJECT:

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEV ELOPM ENT

OFFICE MEMORANDUM

M. Verheye "'

Mr. J. Fajans

Mr. G. Mar$11

Herstelbank Lit of Goods

Please find herewith for your files the breakdo'Wtl

list of goods f or:

Category III-n - Items 112, 113 and 114

Category XXX - Items 3 and 4

We would appreciate receiving any comments that these

lists may raise.

Attached is the letter rer. FA/42 or January 7, 1952

from the Netherlands Embassy requesting an increase or $269.75 of the not yet official category XXX of the not

yet revised list of goods.

Attachment

. . MAATSCHAPPIJ

TOT FINANCIERING VAN HET NATIONAAL HERSTEL N.v.

1470 Euclid Street, N.w. Washington, D. C.

FA/57 January 8, 1952

International Bank for Reconstruction and Development

1818 H Street, N.w. Washington 25, D. o.

Gentlemen:

Referring to the Loan Agreement dated July 26, 1949, between International Bank for Reconstruction and Development and Maatschappij tot Financiering van het Nationaal Herstel N.v ., I am authorized by the latter to inform you that they are prepQred to reduce the loan granted to them by a further amount of $870,000.- bringing the total of the loan to 17,930,000.-

The Herstelbank is pleased to note that the International Bank is prepared to add approximately this amount to the loan to K.L.M.

I have been requested to carry on any further negotiations in this connection. The Netherlands Ministry of Finance has been notified accordingly.

Very truly yours,

MAATSCHAPPIJ TOT FINANCIERING V .AN HET NATI ONA.AL HERSTEL NI/.

by Authorized Representative -

X -k l . It¥,

J.,, n A. :-J

RE.Ci:.11/t D

' l!.f

4 ~o Pi'! 1952

r FORM NO. 57

(5. 48)

TO:

FRO M:

S UBJECT:

INTERNA110N.A-1 BANK FOR RECONSTRUCTION AN D,...OEVELOPMENT

OFFICE MEMORANDUM Files ~

Joseph Fajans II\' Hers tel bank /


1. I telephoned Dr. ~~~~~k this morning, in reference to his letter to me or December 26, 195i and explained that we have arranged 'With Mr. Posthuma to postpone the formal revision of the list of goods and schedule of projects until a decision is reached with regard to the cancellation of the unallocated balance of the loan. I said that this in no way affects the approval by the Bank or the increase in the allocations for Draka and Nijverdal and that we would accept withdrawal applications in respect of the increased allocations, even if the formal revision of the list of goods has not been executed.

2. Soon thereafter Mr. Verheyen informed me that a commitment application No. 254 for $70,554.51, relative to the additional allocation for Nijverdal, had been filed with the Treasurer's Department . Invoking our under-standing with Mr. Posthuma, of which Mr. Verheyen had been intorn:ed previously, I requested that the application be processed, notwithstanding the postponement of the formal revision of the list of goods. Mr. Verheyen agreed to have the application processed pending a formal inclusion or the items financed in the official list.

.. - ,

NETHERLANDS EMBASSY

WAS HINGTO N 9. D . C.

FA/2720 December 26, 1951

Mr. Joseph Fajans Assistant Loan Officer Inteni~tional Bank for Reconstruction

and Development 1818 H Street, N. W. Washington, D. c.

Re: toan IB-15-NE

Dear Mr. Fajans:

While DI']( . J. F. Posthuma of the Maatschappij tot Financiering van het Nationaal Herstel, The Hague, The Netherlands, was in this country, the Bank agreed to

-:,J;,.?._ ~ •l increase the a.mount of t180, ooo previously allocated to Project XIII to $240,000.-

\ • ~ b) allocate $105,000.- for the procurement of equipment for the weaving and :washing departments of Koninklijke Stooraweverij te Nijverdal N.V. #' 3. / ~..)v

~ +' On the basis of these new allocations, ~swell as a few ~ (v minor amendments, the Borrower has forwarded to me and I hereby

~ ~ · transmit to the Bank

~ - ''/ (' ~ ~ ~ "i: \°\ I. in duplicate, a new Tentat.ive Ma.sterlist as of December ' ~ ~ ~ .f . 18, 1951,

\.- , ~'"' ~· II. the draft of a revised "List of Goods" and "Schedule ~ of Projects (Schedule l)" •

. ~¥ 'l .oJ. { I"'\ t I shall appreciate receiving the Bank's comments in

~ ~ respect of these documents and if you agree the new "List of Goods" h ~~\W ·~ ~ and "Schedule of Projects" can be ma.de up, signed and exchanged at

' an early date. ~-<u.,.., • l ~ ~~

~ \

Encl.

Very truly yours,

L. R. w. Soutendijk Financial Counselor -

IN ,_i , \T PECC.S!"i ANCi OEl/cl.

DEC 28 9 40 Al'I 195i

·-

I

Hla'VISED LI~'J.1 OF GOODS 'i10 BE PUR_; IAS D ITH PROCL"..,Dd OF LOAH FROM

I T:-"RNATIONAL BAI'K J.'OR RI CffrnTRUCTION A!'D DEV} LOP11ffN':'

(Amounts expressed in United States Dollars)

Goods

I - r .v. Vereenigde Glasfc1brieken . Equipment necessary for modernization of glass factory including presses , annealing and polishing apparatus , bottle for~ing nachines and transport installation .

III - .taatsmijnen.

a . Phenol Plant . Equipment necessary to build a new plant , including a mercury boiler, ~easuring instruments and stainless steel .

c . ~Taphtalene and anthracene plant . T,rection of a permanent plant for the production of naphtalene and anthracene with modernization of the present equipnent including centrifures and neasuring instruMents.

e . ~otassiu~ ferrocyanide plant . 'quipment to modernize and increase the production of potassium ferrocyanide including measuring instrU!"lents .

f . Irnproved eabord process for hydrogen sulphide rer.,oval . Equipment to modernize and increase the production of sulphuric acid including measuring instruments and stainless steel .

g . Phtallic anhydride plant . quip~ent necessary to erect

a new plant producing phtallic anhydride including valvPs, measuring in~trumAnts and evaporating pans .

Forward

DRAPT .

Total Amount to be Purchased

$ 413 .250 .--

413 .250 .--

f

- 2 -

h . Soda plant . Veasuring instru1:1ents and other equipMent necessary to err~t a

nev· plant for production of soda ash .

j . Coke plant . ngineeri~- dnd rquipment to expand

and re - equip a coke plant and erect a ne, one includinr special iron

· parts and parts for oven riachinery .

k . Urea Plant . 1~asuring apparatus necessary to erect a ne,., plant for production of Urea .

1 . H. P. Central Station . Valves , feedv·a ter and steam regulating installations and further equipment to increase the power~neratinr ca~acity of a Mine in Limburg .

m. Fertilizer plant . Equip~ent iDcluding stainless steel and neasuring instruments to nodornize and expand fertilizer nroduction .

n. f"'iscellaneous and contingencies . (subject to approval by the Bank)

o . Cyclohexanon plant . Equipment needed for a new plant including measuring instruments and salt bath .

p . Caprolactam plant . FquipMent needed for a new plant including ~easurine instruments and distillation apparatus .

q . Oxygas plant . quipnent needed to r1odernize

a plant including measurin~ and controlling instruments .

Forward

413.?50 .--

$ 1. 544.200.--

Q 1 .957 .450 .--

f

- 3 -

Porward

IV - N.V. Haatschappij tot xploitatie van Kooksovengas~en . Various apparatus an~ material necessary to increase the production of the several depart~ents contributing to fertilizer production .

V - N. V. Koninklijke rectorlandsche Zoutinr.ustrie . Equipment to expand salt , chlorine, hydrochloric acid and other chemical production including centrifuges , compressors and coolers .

VI - ,T .v. 1•1abriek van Chernische

Producten Vondelingenplaat . Autoclaves , compressors, dryers , pharmaceutical equip,1ent, freezing unit and other equipment necessary to modernize and expand a plant of aniline dyes .

VIII - N. J . r~empensche ZinkrnaatschaP1Jij . EquipMent necessary to moder ize a plant producing zinc blend~ and expand production including one furnace, blov'er and catalyser .

X - l~chinefabriek Gebr . utork & Co . P . V. Boring , tapping , turning and drilling machines necessary to complete a new ins.tallation specialized in the production of diesel motors .

XI - ~ .V. Koninklijke Federlandsche Grofsmederij . Vertical turret lathe and billet shears cutting machine necessary to expand a plant producing crankshafts .

XII - N. l . Draadindustrie 11 Neerlandia 11 •

Fine ire dravinf machines and accessories to modernize a v·ire plant .

:F'oruard

$ 1. 957 .450 .--

$ 177 . 350 .--

$ 227 . 500.--

106 . 500.--

293 . 700 .--

$ 82 .000 .--

$ 64. 679 , 86

$ 38 .268 .--

$ 2. 947 .447 ,86

f

- 4 -

Forward

XIII - ·N . V. Hollandsche Draad- en Kabelfabriek . Extruders and other equipMent necessary to moder~ize the production of rubber cable and manufacture saran , mixinf machine for saran and a polythene paper coating rna chine .

XIV WilleM Smit & Co ' a Transfornatorenfabriek :-· . ,, . Equipment including wire enamel machines , weldint machines, rotary shear and apparatus for high voltage testing .

XVI - honinklijke Nederlandsche Papierfabriek . quipment for the ~odernization and

improvement of the uaper ~aking process of a paper Mill .

XVIII - N. V • .. I. ten Cate & Co . Spinning, weaving and other textile machinery for modernization and expansion of textile Mill .

XIX - Katoenspinnerij Ba~shoeve . Draming fra~es anl other textile machinery for modernization and in-

• crease of pro.auction of a textile mj_ll .

XX - De· it's 'rextiel Nijverheid 1· .v. ·~chinery for cleaning and dyeiDg necessary to increase production of cotton and woollen fabrics and blankets .

XXI - N.J . Koninklijke Weefgoederenfabriek C.T. ,)tork & ..;o . EquipMent includina winding , dyeing , drying machines , looms and pirns necessary for a ne,., cotton fabrics factory .

XXII - ~ .V. Hollandsche Textielindustrie • • Four cylinder wool card and vacuum

stripper and waste conveying equip-ment necessary to increase and modernize weaving mill .

Forward

~~ 2 947 . 447 ,86

$ 240 .000 .--

$ 151 . 700 .--

116 .300 .--

1.963 . 140 .--

697 .400 .--

$ 122 . 500 .--

600 .000 .--

$ 68 . 612 .--

I

- 5 -

XXIII - N. V. Texticl Industrie J1aatschappij 1t \oeldoorn" . ~titching !~chines necessary to incro~se output of underwear .

XXV - N. V. Koninl<"lijke ' 6aatschappij "de Schelde 11•

Equipment for cutting and grinding spur and hr1lical gears for t'lachineplant and shipyard .

XXVI - N. •! . clpinnerij Oosterveld , Enschede . :quJ.pment for produr.tion of yarns including ring spinnine frames an<l high draft speed frames .

XXVII - Unallocated .

XXVIII - Stoomspinnerij te Pijverdal N. V. J'quipment for the production of cotton fabrics including lapwinders , fra~es, switches.

XXIX - H. P . Gelderman & Zonen ";:"" . V. Spinning and weaving equipment for production and yarns and faoric .

XXX - Koninklijke )toomweverij te 'Tijverdal lJ . V. Equipment for the weaving and washing departments .

Total

~~ 6. 907 .099 , 86

$ 9.l+11 ,78

$ . 3 50 • 000 . - -

$

$

$

21, .000 .--

872 . 888,36

67 . 500.--

$ 273 . 100.--

f~ 105 .000.--

$ 8 . P.00 . 000 .--

- ----- - -~~,

SCI-IF.DUL 1


I . Glass Project - T, . r. Vereenigde Glasfabrieken .

The plant of tho Company at Gchiedam is to be Modernized by the replaceaent of part of the old equin'11ent with nev1 machines . These ,·ill consist mainly of press, annealing and polishi~g apparatus and bottl~forming ~achines . The replacement program will enable the company to attain an annual capacity of 77 . 5no tons of container glanr and household glassware , compared ,1th the nresent 47 . 100 tons .

III . CheMical Project - Staatsmijnen.

The Co~pany ' s program is designed to utilize more efficiently the coal production of the Jetherlands .

A ne,•1 plant will be built in Li ,burg , i th an annual phenolproducing capaclty of 6 . 000 tons .

The Dower generating capacity at the 11 Imma 11 mine in LiMburg will be increased by the installation of a boiler and a 25 . ()( 0 kw . turbo generator .

The equipment for the production of sulfuric acid and potassium ferro - cyanide from hydrogen sulphide and hydrocyanide acid in Limburg \"ill be modernized and the capacity for production of sulfuric acid will be increased from l+o .ooo tons to 58 .000 tons of contact acid and of potassiUP1 ferrocyanide fron 1Bo tons to 2 . 380 tons per annum .

A new plant ~ill be erected in Linburg capable of producing annually 1.noo tons of phtalic anhydrjde from the naphtalene derived in the coking process .

A new coking plant will be established at Beek and the existing coking plant at the 1111·cJuri ts" mine will be expand ea and requippcd . A ne-r, coal bunker and conveyor , top;ether with a nev1 coke ., gving installation will be erected to service the" ·aurits" plant . rhe coking capacity of the CoMpany will thereby be increased ~~n 1. 675 .000 tons to 2.t .. 97 .000 tons per annum, and the capacity for coal gas production from 177 million to 352 Million cubic meters per annum . The Company's capacity for the production of' anthracene (40 uer cent) will be increased from 700 tons to 1. 5RO tone: per annum , of naphtalenc from 4 . 500 tor, to 8 . 520 ton~ nAr annu , of creosote coal tar from 25 .onc to 36 .250 tons per annni, , and o.f coaltar pitch from 30 .000 tons to 42 . 00G tons ner annvm.

A new plant will be erected in Li~burg with a capacity for the production of soda ash of 27 . 000 tons per annuM. AM~onium chloride, as a by-product, 1 1ill be sold as fertilizer .

•

r

- 2 -

The fertilizer plant of the Company at Limburg will be moderni zed and its capacity ~ill bo increased fxom 5P .ooo tons of nitrogen per annUJ'll to 105. 000 tons, including the output of the soda ash and sulf ate plants of the co~pany .

A new plant ·1ill be erected in Limburg for the production of urea , iith a capacity of 6 . 000 tons ner an um .

A new pla~t ill be built consist nf of a 1mit for the production of cyclohex&non and a unit for then •eduction of caprolactam which is the rav; materi a l for the manufacture of Enka lon fibPr . The capr olactam unit ~·,ill have an annual capac~ty of about 3 . 600 tons .

The producer gas plant at the "Va rits 11 mine 1•1ill be modernj_zcd to enable it to obtain producer gas wit' a calorific va 1 ue of 2 . 800 calories per cubic Meter .

IV . Cher.deal Project - X. V. raatscha pij tot ,xploi ta tie van Kooksovengas sen .

Now equipment will be acquired an installel at the Company 1 s plants at IJnuiden in order to incre~se the plant ' s fertilizer production capacity froM 16 . 000 tons to 51 . 000 tons of nitrogen per annum .

f . i ,hemical Project - F . V. Koninkli.ilsce r·euerlandsche Zoutindustrie •

Equipment will be installed at the Company ' s plant at Hengelo for expansion of salt, chlorine, hydrochloric acid, sodiun hydroxj.ne and copper oxychloridP production and for t~e replacement of ~orn- out apparatus . Production capacity of tablA sa"'t will be increased from 25" .nno tons to l~oo .ooo t·ons per annulrrl, of sodj um hydroxide from 10 .000 tons to 20 .000 tons per annu.1:1 , o ... · chlorine from 9 . 000 tons to 24.ooo tons per annum, and of copper oxychloride by 700 tons per annum.

VI . Che~ical Project - 1 . V. Fabriek van CheMische Producten Vondelingenplaat .

The Company's plant at Vlaardingeni uill be modernized and expanded to increase the annual cauacity of finished aniline dyes frorri 1 . 200 tons to 3 .200 tons per annw-, , and to permit the production of other chenicals , including formic acid , oxalic acid and sodi1~ sulfate .

VIII . Chemical Project - N. V. Kempflnsche Zinkrnaatschappij .

!lodernization of the existing plant at Budel will be undertaken to increase the capacity for roasting zinc blonds , by the installation of a Dwi('J'ht- Douglas furnace . In addition , by replacing the cha'llber with the contact ~recess, sulfuric acid oroduction capacity will be increased iror 65 . 000 to 92 . 000 tonB per annum .

- -------~------ --

- 3 -

.<. '"achine Project - r·achinefabriek Gebl' . tork & Co . N. V.

By the acquisition of new riachine tools, the Conpany ·will complete its new installations at Zwolle, •ihjch ~ill specialize in the production of diesel motors, thus permitting the Co~pany ' s plant at {Angelo to concentrate on turbines and boilers . Production capacity is expected to increase by 20 per cent per annu~ .

XI . 1'achine Project - N.V. Konin~lijke oderlandsche Grofsnederij .

Lathes, shears, and chain weldine and bending ri..:ichines ,111 be installed in order to expand ana ~odernize the Conpany's equipment at Leiden . The capacity for tho production of cran shafts will be increased fron 5 . 000 ton:=; to 6 . 000 tons and of chains from 2 . 500 tons to 3 . 200 tons per annn"1 .

XII are Project - r . V. Draadindustrie 11 "\,~erlandua" .

To prevent decline in production which rnay amount to 25 per cent, due to outmoded and worn- out riachincry, the Corroa1 y \ ill replace old wire makjng equipment in its plant at Jutphaas . e· ryire - nail and drawing riachines ryill also be acquired , and apoaratus for staining and water cooling .

XIII . I"ilectro- technical Project - N. V . ... Iollandsche Dread- en Kabelfabriek .

The Conpany will erect a new plant at AMsterdam for the production of rubber, polythene anc naran yarn 11ire cable~ . Production capacity for rubber cable mill be increased by 11 per cent . Plastic and saran cable ,•ill-be produced for the first time in the i 1 etherlands . A tu~olor mixine- machine for mixing the raw Materials for the saran will be installed, thus enabling tho Comnany to obtain thn neces~ary materials froM Germany . Polythene coated paper vill be produced with the paper coating machine . The daily production , ·ill reach a bout 20 . 000 m2.

XIV. , lectro- technical Project - \i illem S~it & Co 1; Transformatoren

fabriek ; .v.

The transfor"1er plant of the Company at rijmegen •vill be expanded and the capacity for production of transformers and generator wire will be increased by 25 per cent per anntll11 .

XVI . Paner Project - Koninklijke rederlandsche Papierfabriek N. V.

A sectional electric drive will be installed for the nery paper making Mac~ine purchased in Gernany which papernachine will be added tc the .rour already in the Company's nlant at r'aastricht and the latter will be improved . Papl':lr counting riachines 1:1111 also be acquired . Cauacity will thereby be incrensed from 11 . 400 tons to 23 . l+oo tons per annum .

- 4 -

XVIII . Textiel Project - r.1. H. ten Cate en Co .

The Company ' s plant at Almelo ·ill be expana~a and modernized by the acqui~ition of ne'' Jpinning and ~eaving ~achinery so as to increase its ~,arn spinning capacity from 5. 100 to 5. 900 tons and its capacity for production of finished goods fron 40 million to 45 million square mete:r·s per annun .

XI{ . Textile Project - N.V. Katoen~pinnerij Bamshoeve .

By the acquisition of ne spinning Machinery, the·plant at Inschede will be modernized and the capacity of the roving department increased . Capacity will be increasel from 5 . 700 tons of cotton yarn er annU.t!l to 7. l+oo tons .

XX. Textile Pro.iect - De it ' s rextiel l'i.iverheid T. V.

In order to ~ake nore efficient the CoMpany ' s production of cotton and woolen fabrics and blankets, equipment of the plant at Holland ·Till be modernized by the acquisition of ne1 mac1inery for cleaning and dye ing . Output per v•or',.cr per hour ,. ill increase by 1 5 P<"''r' cent and production ca=acity ~ill increase by 12 per cent per annA~ .

XXI . TeYtile Project - N.V . Koninklijke /eefgoe erenfabriek C.T . Stork & Co .

The Company will build a nm1 factory to replace the present one at Hengelo . Capacity for production of cot~on fabrics rill be increased tc 327 tons per annun from the present 221 tons .

XXII. Textile Project - 11 . V. Hollandschc Textielindustl'ic .

The Company will increase its v ool y,,rn output and its , eavi ng rriill at Goir}e will be modernized, with a rcsultin~ increace in capacity from 500.()00 to 550 .000 square meters in capacjty of finished "Oolen faor~cs per annum. As a result, the Company vill be able to supply all its wool yarn requirements .

XXIII. Textile Project - r .v. Textiel Industrie iaatschappij 11 Apeldoorn".

Twenty stitching machines will be added to the equipment of the plant at ApelJoorn so as to increase its underwear production capacity from 1 . 600 . 000 to 1 . 700 . 000 units per annum .

XXV ~ Gear J'anufacturing Pro.ject - JJ . v. Koninklij e 1 aatschappij "de r chelde", 1Tlissingen .

J~achine tools and auxiliaries will be purchased for cutting and

- 5-

grinding spur and helical gears and a nc ., build in erected to house this equipnwnt . This v·ill be the only plant of this type in the Netherlands and •ill produce gears for internal use by the coripany as well as for the domestic anct export ~ar ets .

'XXVI . Textile Project - I • V. upinncrij Oos tcrveJ } , ,nschede .

The spinning frar1es of the company 1.ill be converted for higher speed operation and mm high speed frarries v ill be installed for modernization of the plant and for replacement of var- damaged equipment . It is estimated that production of cotton , rayon, woolen and mixed yarns vill be increased by about 750 . 000· k . per year ~ith substantial inprove~ent in quality and v.ith lo er ra naterial costs .

XXVIII . rextile Project - utOOMsninnnri,i te I ijverdal r . V.

This project involveR the MO arnization of the cotton spinning equip~ent of the OMnany >Y the addition of ne· lap,inders , dra1 ing frames and hjghdraft 1'ranes . An incre·se in pro uctjon of 200 tons of yarn per annum is anticipated as ~11 as iM roved quality and reduction in costs .

XXIX. '.l.'extile Project - I. P. Gelder nn & Zonen r- • V.

The spinning and weaving de artti'Jents of the Com· any ,ill be modernized by the addition of autoMatic looMs fo~ rayon production and of miscellaneous spinning equi ~ent . The ne, spinning equipment will provide an incr8ase in product~on of yarn of about 60 . 000 kilograMs per year hile t~e ne1 looMs vill rovide a net increase in production of approxiMately one Million ~o~ers pe~ year of woven fabric .

XXX . Textile Project - I onin lij1 rn toomv·evPrij te ~ijverdal l . V.

This project includes the modernizing of thA rayon eaving , ashi~a and bleaching departments . ~rough the addition of new

looM~, the quality of the rayon products lill be im)roved and in the recessing of the nylon and synthetic yarns . finally finishing will oe improved.

m .::r:TAr.iIVE ::AS ":::?LIST P:!... D:ZC..::.3~ 18 , 1 951 •

I Vereenigde Glasfabrieken H.V.

III 3taatsmijnen in Lin.burg

IV i.~ . ,r. ::aatschappij tot .::xploi ta tie van Xoo::rsovengassen

Y. !~oninkli j ke Hederlandsche ~outindustrie :: • V.

VI Fabriek van Chemische Producten r: . ·,t .

VIII K. V . :-cempensche Zink :raatschappij

X

I

XII

~ ---;;:;-

l·iachinefabriek Gebr . Stork & Co . IJ . V.

1; . V. : onintiij ke 1;ederl andsche Grofsmederij

N. V. Draadindustrie F.eerlandia

Hollandsche Draad- & Ka.bel fabriek ] . V.

Willem Sr.iit & Co ' s Transfor:r:iatorenfabriek c.v. XVI Koninklijke 1Iederlandsche Papierfabrie~· r; . V.

XVIII H . ten Cate iizn . & Co . -- • V.

XIX :: • V. ::atoenspilL"lerij Bamshoeve

XX De ·.at I s Textielnijverheid :: • V.

U. S . dol lars

331 . 000 ,--

1. 500 . 000 ,--

87 . 350 ,--

175. 150,--

106 . 500,--

293 . 700,--

82.000,--

64 .679 ,86

38 . 268 ,--

240 . 000 ,--

9. 000,--

-.-315. 000,--

356 . 000 ,--

20 . 000,--

Swiss francs

82 .250 ,--

44 .200,--

90 . 000,--

52 . 350 ,--

-.--··--.--.--.--.-

142 . 700,--

11 6 . 300,--

1 .648 . 140,--

341 . 400 , --

102 . 500,--

f

(

(

(

(

(

(

(

(

(

(

353 . 700 ,-- )

190. 000 ,-- )

387. 000,-- )

22 5. 1 00 , -- )

-.- )

-.--.--.--.--.-

)

)

)

)

)

613 .610 ,-- )

( 500. 000, -- )

( 7 . 087 . 000 , -- )

< 1. 468 . 000,-- )

( 440 . 75'0 ,-- )

Total in ..)

4-13 . 250 ,--

1 . 541+. 200 ,--

177. 350 ,--

227 . 500,--

106 . 500,--

293 . 700 ,--

82 . 000 ,--

64.679 ,86 ./

38. 268 ,--

240 . 000 ,--

1 51 • 700,--

116 . 300 ,--

1 • 96 3 • 1 l+O , --

697. 400 ,--

122 . 500,--

XXI Koninklijke · . .reefgoederenfabrieK C. T. Stork e:. Co . :· .v.

XXII r , i/ • • Iollandsche Textielindustrie

XXIII ~f . 7 , Textiel Industrie iiaatschappij peldoorn

XXV ·i . V. i{oninliij:::e ::aatschappij de Schelde

XXVI h

XX-VIII

XXIX

~ /

i- . V. S!)innerij Oosterveld

" l .. ' Stoomspinnerij te i:ijverdal r . V.

H. P . Gel derman & L..onen i . • V.

Stoomweverij te ?:ijverdal :; • V.

vB./CS 1b' D~ ember 1951 .

/ /

14 .ooo, -- 460 . 000 ,--

68 . 612 ,-- -.-9 . 411 , 78 -.-

-.- 350 , 000 ,-... . •

-.- 215. 000,--

-.- 67 . 500 ,--

-.- 273 . 100,--

105. 000 ,-- -.-3 . 941.671 ,64 3 . 985. 440 ,--

( 1 . 978 . 000 ,-- ) 600 . 000 ,--/

( -.- ) 68 . 612 ,--

( -.- ) 9 . 411 , 78

( 1 . 505 . 000,-- ) 350 . 000,--

( 924 . 500 ,-- ) 215 .ooo,--

( 290 . 250 ,-- ) 67 . 500 ,-- ~} 4-7 If·~ ~

( 1 . 175. 000,--) 273 . 100,--

( -.- ) 105 .ooo ,-- cir : GJ.2;, ( 1 7 . 1 3 7 . 91 O, -- ) 7 . 927 . 111 , 64

)(~\\ Reserve 8~, 36 <,. 7;Jtf- '7 8 . 800 . 000 ,--

--·---------/

0 0

FORM No . 57 (S. 48 )

TO:

FROM:

INTERNATIOI\' BANK FOR RECONSTRUCTION AN

\ ~. ""'H Vi-- .u ·vELOPMENT


Joseph Fajans i · November 29, 19Sl DATE:

SUBJECT: Herstelbank

l. Mr. Woudhuysen, or the Netherlands Embassy, called on me on November 27 at 2 P.M. in order to discuss the status ot the Herstelbank loan. I gave him a brier oral S1Dlm817' or Mr. Prw:l'hoJ11118's conversat ions with Mr. Posthuma am told hiJll that ve vlll not amend the list or goods until we have a definite reply from the Herstelbank regarding the possibility or obtaining stainless steel tor liekog and Staatsmijnen.

2. Mr. Prwi'homme joined us during the conversation and explained to Mr. Woudhuysen that the Bank does not want to bring pressure to bear on the Herstelbank in connection with the cancellation issue, bit would consider the increase in the amount of the proposed KLM loan it the Dutch themselves asked tor the cancellation of the unallocated balance of the Herstelbank loan.

cc: Messrs. Prud•homme Cavanaugh Spiro Verheyen Ross

Miss Morsey

FORM No . 57 (5- 48)

TO:

FROM :

INTERNATIC"' ' L BANK FOR RECONSTRUCTION ft DEVELOPMENT


J oaoph Fajana 1 · DA TE: NoTember 26, 1951


1. Mr. Posthu-. called on Mr. Prud'ho.., on November 26, 1951 to discuss the utilization ot the unallocated balance ot the Herstelba.nk loan.

not . 2. Mr. Posthuaa said that he baa/been succesaf'u.l. in securing an allot11ent ot stainless steel. Be added, however, that there ia still a slight chance ot obtaining some stainless steel and that he expect.a to haYe a definite reply within a aontb. In an;, case, the decision regarding 1.Ae financing b7 the Bank ot wo projects requiring stainless steel and involving an expenditure ot $525,000 baa to be postponed tor a month.

3. Mr. Posthum. was intoned that the.re is on the part ot the Bank no objection to finance the two other projects, namel,7, •Dr~" involving $48,000, and •Nljnrdal,• involving $105,000. The inclusion of these two projects in the list or goods and the adjustment ot alloeationa tor several other projects, however, had better await the final decision regarding the stainless steel allotment.

4. Mr. Posthum vould very mch like to finance, under the Heratelbank loan, a KLM project vhich vould be additional to any projects tinanced under a direct loan to KLM. Since, however, it is our knowledge that KLM is reluctant to engage in such an operation and aince, according to Mr. Posthuma, there is little chance tor the Beretelbank to find nev projects which could be financed under the loan, the Bank will have to consider what to do about a balance ot some $875,000 which vould be left unallocated it stainless steel proves unobtainable. It appears that at one stage or another a cancellation aa:r be the onl,7 logical solution.

s. Mr. Posthuma indicated that net profit of the Herstelbank should amount to tl. 11,250,000 in 1951, i.e., tl. l million more than in the prerloua year. Of this, tl. 5,215,000 m:r be paid as divide~ on the preterence shares, vith the rest going into reserYe. During 1951 the Herstelba.nk has been hampered by lack ot funds in its credit operations. Ro nev credits vere extended between July and November 1951, but credit activit7 was again resumed in recent weeks. Credit operations vill, hovenr, remain very 11.m.ted in the months to com because of the stringency or the Dutch capital narket.

cc: i.ssrs. H. Prwi'hoJnJDe R. W. Cavanaugh B. P. Spiro M. Verhe70n M. Ross

Miss V. M:>rsey

r FORM NO. 57 (5-t18)

TO:

FROM:

SUBJECT:

INTERNAT 1ANK FOR RECONSTRUCTION AND ~VELOPMENT

OFFICE MEMORANDUM Files * G , J. Fajans

DATE: November 23, 1951

Herstelbank Loan

l. Mr. Postlmma called on Mr. Prud1homme on November 23, 1951, to discuss the administration of the Herstelbank loan.

2. Mr. Prud 1homme mentioned the additional projects (totalling $678,000) submitted to the Bank on November 19, and said that he understood from the procurement staff that it would be extremely difficult to obtain stainless steel required for two of the projects. Mr. Posthuma explained that he will still endeavor to obtain some quantity of stainless steel. He was infonned that even if he should be successful., the Bank may not accept one of the two projects in view of its being a pilot plant.

3. Mr. Posthuma stated that it would be very difficult for him to find other projects if those now before the Bank could not be financed. Nevertheless, he was reluctant at this stage to discuss the possibility of a cancellation. He thought that additional aircraft for KLM could be financed under the Herstelbank loan quite apart from any direct loan by the Bank to KLM. (It api:ears that KLM is now positively opposed to any such operation).

4. :Mr. Postlmma further indicated that the Herstelbank intends to apply for a postponement by three months of the December 1, 1952 closing date. He was told that the Bank would only consider such a request a few months before the closing date and that the Bank is vital:cy- interested in the expeditious execution of the projects and accelerated withdrawals. The date of completion of the ten Cate and Staatsmijnen-Emma projects was mentioned in this connection.

5. In response to a question by Mr. Prud1homme, Mr. Posthuma said t hat the Herstelbank made a public issue last year in the amount of fl . 75 million at Ji% for 17 years, and that he has recently succeeded in borrowing fl. 10 million at 4!% for 12 years, and hopes to place an additional 15 million of Herstelbank bonds with DJ.tch industrialists.

cc. Mr. H • .Prud•homme Mr. R. Yf. Cavanaugh Mr. B. P. Spiro Mr. M. Verheyen Miss Virginia Morsey Mr. M. Ross

JFajansfo vm

Mr. Oa'V&Daught TN~'• Dl~t

Ellb • M111-r, SNNtar:r'• ~

Ieen na, 15 • - uerettlbeJI

&ttacbea, tor 1Wl" tu.a, la a photo.tat.le oow ot a Dill de.W

October 15, 19'1, raoelw4 fftlll Hlratel-*, ~ eerialn ,..._.

to act an ita behalt. Th1a a.ea. Nplaola an •ScSMl a.a 4aW a.to• n, 1949, \hloh la bebg Nturn84 to the llflnteJ.1*ill:: ....U.C to lta ~Re

EEMilleratr

r

Maatschappij tot Financiering van het Netionaal Heretel N.V.

Kneuterdijk 6 The Hague, The Netherlands

Gentlemen a

November 19, 1951

j,\P .\<2 ,/

Thank you for your letter ot tfovembor 8, 1951 and the enclosed original deed dated October 15, 1951 authorizing certain persons to act on your behalf ae ccntemplated by the Loan Agreement dated July 26, 1949 bet ween the Bank and you.

Thie instrument is sufficient evidence as requested by Article I, Section 2, of said Loan Agreement of the authority of the persons who can take action end execute documents on your behalf. According to your request, we return to you enclosed the original deed executed October 11, 1949 for which the present deed has now been substituted.

Enclosure ~ FOOpponhoimen vv

Sincerely yours,

A. Broches Assistant General Counsel

I

MAATSCIIAPPIJ TOT FI NANCIERING V AN HET


1

'S.GR AVENH AGE, .. ovember 15 ' ' 51 K neuterdiik 6 Telefoon 183890/98

Ex lanator note re~ardin the amount of ' 000 - ear marked as "reserve" on the tentative rnaster lis t as ne r Novembe r 1st 1

Projects now sub~itted for approva l

ti-ff' 11'.'.i) )I Dr aka (XI II )

~~; &~ y,\." Staatsmijnen

f-Y1" / Jfekog (IV)

(III)

additional

additiona l

addi'tiona l

48. 900 . - + \ l , 0 0

300 . 000 .-

225 . 000 .-

. .P ,'" --("~ ~ ~ Nijverdal (X.{VIII) . additional

total now submitted

$ 105 .ooo .-

$ 678 .000.---------------------------Provided these amounts are allocated the

amount which remains available

for future al locati on

tea \-~ ~

$ 1.025 .ooo .- /1 ()//A; Bi~ 1!'300-.,

. / . $ 678 .000 . -~ €7L) v~

$===347.000 .- /,/,IN,!.~~~

\lith re gard to the above additional allocati ons r equested

we refer to the fo l lowing information :

XIII - Draka numbered 2

II I - Staatsmijnen numbered 3

IV - Hekog numbered 4

XXVIII - Te Nijverdal numbered 5.

Furthermore we point out, for the sake of good order, that

the applir.ation of J.Kenko which was be i ng consider ed at the t i me

- of -

.. - 3 -

mix the necessary colours into the natural saran raw mat erial

themselves and therefore not buyj,.f:rg the coloured raw materia l

as they do at present . The D01" Chemical prefers that the company

should purchase concentrated dyes from them and mix themsel ves .

Inclusive the cost of the dyes and mixing ~the saving to~~

reached per lb-. of saran Peaehes .. ~ 0 . 02 . As during 1951.Jfor

examuleJ 500 tons were processed the saving would amount to about

$ 10 . 000 .- yearly which is of course also a currency saving .

The above figure is sufficiently eloquent and further

commentary seems superfluous . fin American machine is needed as

it has to have special resistance to the influence of acids and

chemicals .

lie believe the granting of the above additional$ 48 .ooo.to be warranted and trust you ,.vill share our opinion in the

matter in view of the usefulness of these investments . An

official of the company is at present visiting the U. S . A. and

if it were possible to grant the amount within short the final

order could be negotiated on the spot .



Staatsmijnen III .

3.

'S-GRAVENHAGE, rovember 15 ' ' 51 Kncutcrdijk 6 Tclcfooo 183890/98

This company is confronted with the very problem also

facing Hekog (Iv) . The firm has to have stainless steel in

order to carry out its projects and al though these· purchases

had been planned in r.urope none of the expected sources can

provide the much needed steel at all or ~ithin an adequate

period of delivery . This stainless steel is needed for the

completion of the International Bank projects already approved

and the urgency of which has already been recognized by the

very fact that the International Bank granted the necessary

funds .

The company therefore roquests the aid of the International

Bank in order to obtain an allocation of about 150 ton

(abt . $ 300 . 000 .- ) from the U.S. authoriti es and therefor e the

necessary export licences . Furthermore the coMpany requests

an additional allocation of funds in order to finance this

purchase . The full amount of $ 300 .000. - has been taken as the

amount of the application but there is the possibility of

reducing it by utilizing the reserve which remains in the

allocation for project III and thoroughly revising the present

lists of goods.

Should the International Bank consider it possible to

assist the Staatsmijnen in this matter and should it consider

more detailed information necessary we shall be glad to learn

- v1hat -

l - 2 -

what information is required . Ari official of the company is

already in the U. S. in order to try and acquire the necessary

stainless steel .

-------------

,.



IV 1~ekog . ---------

4

'S-GRAVENHAGE, November 15 ' t 51 Kneuterdiik 6 Tclcfoon 18~890/98

The company are experiencing grave difficulties in

obtaining stainless steel in urope at all or within.an adequate

period of delivery for the completion of their project and the

replacement of worn-out equipment. The company makes a call upon

the assistance of the International Bank for the necessary

additional dollar funds in order to purchase this commodity in

the u.s. Furthermore it requests the aid of the Interbank to •

obtain the necessary export licenceso

The stainless steel is needed for the following purposes:

~

For replacement l and improvement of the nitric acid , nitro

chalk (nitre lime) and ammonium nitrate plants

Stainless steel to a value of

of which plate

pioes

rods

$ 23 . 000 .

$ 20.000.

$ 2 . 000 .-

$ 45 . 000. -

This item aims mainly at Maintaining the present nroduction

v1hich will be gravely endangered if the necessary steE'!l does not

become available. Should a decrease of production prove

unavoidable then exports will suffer as the home demand will

have to be met first owing to the large and pressing needs of

agriculture.

- Furthermore -

- 2 -

Furthermore a limited increase of production of about 10%

will be obtained in the am~oniur.i nitrate and nitre chalk plants .

A further$ 75 . 000 .- is needed for the gaining on a semi

technical scale of potassium from sea- water .

The amount needed can be broken down as follows:

plate

pipes

rods

$ 40 . 000.

$ 32 0000 .

$ 3 . 000 .- $ 75 . 000. ---------------------Exacting research , on a laboratory scale , has proved that

potassium, a scarce commodity of which the main sources of supply

are behind the Iron Curtain, can be gained from sea- water .

The company now wishes to continue experiments on a semi

technical scale and to orect a pilot- plant for this purpose . This

development should prove very favourable as soon as large scale

production becomes possible but the necessary materials and dollars

for the semi- technical work must first be made available .

Finally $ 105 . 000 .- will be needed for new projects these

being the production of magnesium nitrate of lime , compound

fertilizers and the alteration of the sulphate plant in order to

process anhydrite instead of sulphuric acid .

The company consider it necessary to widen their range of

products and thus increase their sales and exports possibilitieso

For exampl e as the market for nitro chalk is showing signs of

reaching its peak , sales can be boosted by making ma•.,.nesium nitrate

of lime , a new product . There is considerable de~and for this

- new -

- 3 -

new product which is especially suited to the struggle against

deficiency diseases . A production of 50 . 000 to 60 . 000 tons is

expected of wh:Lch at least 25% can be exported . The value of

these estimated exports reaches yearly abt . $ 550 . 000 .-.

lt'urthermor.e apparatus •11ill be purchased for the semi

technical produ.ction of compound fertilizers for ··1hich phosphor

and potassium serve as basis . This investMent will yield its

profit only lat.er when ]arge scale production is started .

As k.novm there is a great shortage of sulnhur and therefore

of sulphuric acid which serves as basis for several fertilizers

i . a. sulphate o,f a111rrtonia . For the production of this fertilizer

anhydrite will now be used and the:i sulphate v•ill be gained from

calcium-sulphate. The latter is found in l'astern Holland in

anhydrous gypsum layers whilst it is also a residual matter .

Imports of pyrite mainly from Spain and Italy will be avoided

and the industry shall become independant • .

The sulphate and therefore sulphuric acid production V'ill

reach abt . 30.oioo to 4o .ooo from whi.ch an equal amount of

sulphate of amr.i,onia can be made . This product is entirely exported

and represent a value of abt . $ 1.500.000.-. FurthP-rmore the

importation of abt. 25 . 000 tons of pyrite of a value of abt .

ij 500 . 000 .- will be saved .

We believe that the above application, seen as a whole

and from a dynamic point of view, is sound as it provides not

only for the completion of projects at present being carried

- out -

- 4 -

out but also for the Maintenance of the existing e

whilst the future is being tackled with practical esearch.

We believe it superfluous to stress the vital importance

of fertilizer production to the Netherlands with it:s direct and

indirect effect on exports .

------------

Kon. Stoomweverij te nijverdlll fl.'\J. fllmelo

JVR. 1 22

140 cm.

269

1(011. S10011111'Pllerij l(• nij11erdal n.v . .Almelo

JVR.116

140 cm.

131}

s MAATSCHAPPIJ

TOT FI N ANCIERING VAN HET NATIONAAL HERSTEL N.V. 'S-GRAVENH AG E, November 1 5' 1951

Kneutcrdijk 6 Tclcfoon 18,890/98

Koninklijke Stoomweverij Te fTijverdal N. V. of Almelo . -----------------------------------------------------a) Brief descriotion of the oro j ect:

The above weaving mill was founded one century ago and

started the production of cotton goods . It 1as the firs t

steam weaving mill of the Netherlands . The activities of the

firm gradually expanded and in 192 5 it was decided to add a

spinning mill in order to produce the necessary yar n and a

special company was founded for this purpose (~toomspinner i j

te Nijverdal ·T . V. ) of v1hich the above concern holds all the

shares .

In 1928 a dye department v,as added to the bleaching secti on

and in 1934 the company sta r ted weaving rayon goods besides

its cotton articles .

The spinning department which has been improved 1ri t h the

aid of Interbank funds has we l l over 100 . 000 spindl es .

The aim of the comoany is mainly to impr ove the quali t y of

their rayon products in order to face foreign competit ion .

Furthermore it is considered desirable to save labour i n order

to meet the shortage of skilled labour . The f i rm consider s the

modernisation of their rayon weaving department essentia l mos t

desirabl e and it is furthermore expected that on the long run

the processing of nylon and synthetic yarns 1"ill develop and

the company wishes to remain abreast of this development.

- The -

- 2 -

The "'ashing and bleaching depart;ment also urgently needs

modernizing and the company ,•ants to replace the obsolete

washing machinery by the latest apparatus .

Finally t,.·10 stripmachines will l:,e added to the equipment

of the spinning department in ordE,r to remove yarn residues

froM the bobbins .

The amount to be invested which 1, in this case , is the same

as the amount of the Internationa]l Bank~ funds applied for )

totals$ 105 . 000 .-.

b) Disbursement ;

Delivery of the machinery should take place before October

1952 and therefore the total amoUl"tt will be paid before that

date unless unexpected delays in delivery occur .

c) rguipment to be purchased with th~e aid of International Bank funds:

24 XD Draper looms 6011 width

2 Tensitrol Rope lashers

2 Terrel stripmachines

d) Financing:

abt . $

II II

ti II

66 . 000 .--

34.ooo .--5 . 000 .--

$_105. 000.--

The total financing of the proj,ect will be realized out of

own funds .

- Relation -

I

- 3 -

e) Relation between the project and thE~ existing production facilities:

Immediately after the war this firm purchased a large

number.of cotton looms, for want of a better possibility,

which it converted for rayon production in order to quickly

raise the output . On these looms rayon linings and such

like articles were woven . From a teahnical point or view

these looms are not suitable for thEI purpose and the quality

produced on them leaves much to be desired . If the firm is

to maintain its export drive and to compete favourably in

foreign markets a part of these loon~s must be replaced by

machinery which is fully suited to 1~ayon production .

In this respect the best machine !It nresent available is ,

the XD Draper loom. !'any tens of th<>usands of this machine

are in use and they have proved themselves first rate both

as far as quality and productivity jls concerned. This loom

has been developed in close contact with U.S. r ayon

manufacturers . Ruti and Northrup have not yet reached the

same stage of develooment whilst thE~ Picanol and Saurer

types are not up to date any more .

The Draoer loom has three main advantages :

a. It is a fully automatic loom.

b. The speed is very high and varies from 182 - 156 with the

width .

c . The loom is very solid and works safely and therefore the

number of looms per weaver is higher . It varies from 40 to

90 according to width and qualitr . Draper looms have also

special motions which give it a ,~onsiderable start as compared

to other rayon looms . - Of -

- 4 -

Of great importance is moreover the fact that nyl on and

synthetic fibres can be processed on these looms and that

therefore the products of the new Enkalon plant can be utilized

here .

These 24 looms will be added to 24 other Draper looms of the

same type which will be delivered shortly and will together

form an important unit which will help to maintain the expor ts

of the firM.

The products to be manufactured on these looms will be

mainly linings of a quality similar to the samples attached

to this documentation .

The Tensitrol Rope iasher is a fairly new development dating

from 1948 . It is of a revolutionary type which v1ashes the cloth

at a very considerable speed without tension as opposed to the

older types . Many large American firms have also replaced their

old apparatus by this new and most efficient machine .

As the modernizing of the ~ashing and bleaching department is

most urgent and this machine ~ou]d mean a more perfect finishing

of such great importance with export orders this purchase is

considered essential.

Advantages of the Tensitrol Machine are i . a . :

1. -A better and more intensive washing effect is reached .

2 . It can replace at least two machines of the older type.

3. 4o% water and 50% power are saved . oti~ 4 . It can be used for chemical processes lthan washing as it is

made of stainless steel .

- Finally -

- 5 -

Finally the Terrel stripmachin,~s reMove tho yarn remains

which are left on the tubes nhen vreaving .

These are needed to meet the greater demand made on the

2 machines of this type already available owing to a further

automatizing of the cotton weaving department vith Northrup

looms . The stripping caoacity therefore be·ircreased and

the motives for the choice of Terrel machinery are:

1. Doubling of stripping product~Lon as ~rerrel machine is

twice as quick ar the old mact1ine .

2 . Solid construction and simple design, easy to serve

machinery for ·~1hich unskilled labour can be used and

therefore costs can be reduced .

As far as general information, hard currency results and

market analysis are concerned we should like to refer to the

documentation previously submi tte,d in connection ,, i th project

XXVIII.

The following figures are illus1trati ve of di vision of exports

during 1950 and the first quarter of 1951 as comoared to exports

during 1949.

xpressed -

Countries

Switzerland

Belgiurn

Belgian Congo

Sweden

Greece

Norway

Finland

Denmark

Ireland

Indonesia

A4stralia

Afghanistan

Pakistan

India

Miscellaneous

- 6 -

Currency

Sw .frs.

eth . guilder

It It

ti II

Off shore$

Neth . guilder

It II

II II

£

Neth.guilder

£

£

£

£

£

1949

1 .207

325

663

343

52

976

192

36

574

627

11 . 254

Total exports 11 .804

Home sales 13 . 462

Yarn sales to thirds from spinning mill 5 . 918

Total turnover 3 'I .084 -·------·-----

1950

122

708

13

2 . 397

296

1 . 020

389

138

588

4.084

597

427

2 . 371

13 .1 50

16. 636

8.245

38.031 ------------

1951 (1st qu.)

112

513

35

728

175

138

27

11

190

861

224

110

990

4.114

5. 356

2 . 462

11 • 932 ------------

\le should like to point out that the advantages of the execution

of this project lie not only in the fai~t that the hard earned export

markets can thereby be maintained and ;strengthened but also that - ~killP,d -

- 7 -

skilled labour can be saved. Furthermore the firm will not only

be able to improve the quality of its product but to keep abreast

of new developments such as the processing of nylon and synthetic

fibres .

foRM No. 5S ( 5 . 4a) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORA~~DUM TO: Miss Ellen Miller

Secretary's Archives FROM: F. M. Oppenhei.ller

DATE: Noveaber 14, 1951

SUBJECT: Loan No. 15 Ne - Maatschappij tot Fina.ncier!nig van het Nationaal Herstel N,V .

Attached hereto is an original deed da·ted October 15, 1951, received from the above organization, authori:zing certain persons to act on its behalf', as contemplated by the ]Loan Agreeaent dated July 26, 1949. This deed replaces an original deed dated October 11, 1949 which you now haYe 1n our files. Would Jrou please have photostatic copies made of the new original deed and return a copy to us tor the Legal Department 1 s files. A copy should also be sent to Mr. CaYanaugh tor his files. The first original deed, dated October 11, 1949, should be returned to us to1~ forwarding to the

Borrower. ~

f'ORM ('J..'l. 57 (5-48) INTERNATION BANK FOR RECONSTRUCTION AN ' 1EVELOPMENT

OFFICE MEMORANDUM TO: Mr H W • enry • DA TE: liovember 14, 1951

FROM: Hugh :a. Ripman

SUBJECT: Herstelbank - Progress Reports as at October l, 1951

Under cover of their letter of November 5, 1951, the Herstelba.nk sent

us Progress Reports on all the loan-financed projects, with the exception of

the projects previously reported completed. A review of these projects shows

the position to be as follows:

Group I ProJect» (Bank Participation less than $200,000) :

Symbol Number

III (a)

III (e)

III (e)

III (f)

?fame of Pro.1ect

Staa.tsmijnen - Phenol Plant

Staatsmijnen - Naphtaline & Anthracine

Staatsmijnen - Potassium Ferro-Cyanide

Staatsmijnen - B2S Removal


March 1/52

December 1/51

January 1/52

Remarks

Completion date postponed. by one month since previous report. U.S. $6o (sixty) of Loan Funds have been spent to date.

To date U.S. $18,000 l oan funds have been spent, the same amount reported three months a.go .

The completion date of this project has been postponed by an additional two months to January 1, 1952, from the original date, March 1, 1951. To date U. S. $3,300 loan funds have been spent, the same amount reported three months ago.

This project was completed on September 15, 1951, six months later than originall y contemplated. A total of U.S. $11,000 were spent from loan funds.

• •

Mr. He?U"'J W. Riley

Symbol Number

III (g)

III (k)

III (1)

III (o)

III (p)

Name of Pro.1ect

Stea t smijnen -PhtaJ.ic ~dride Plant


Staa.temijnen - H.P. Central Station

Staa.temijnen - Oyclohexanon Plant

Staa.temijnen - Caprolactam Plant

-2-


This project was completed on jtpril 15, 1951. The amount of :Sank fund1:J spent was u.s. $47,000.

December 1/51

December 1/51

June 1/52

July 1/52

The expected date of completion b~s been postponed a :further two months since the last report. The original date w:as January 1, 1951. To date U.S. $3,400 and equivalent of U.S. $700 in SW1ss Francs have been spent out of loan funds, ,an increase of U.S. $800 over the amount indicated in. the previous report.

The expected. date of completion bas been postponed a further two months. The1 original date had been set at Augu.st l, 19~1. To date U.S. $26, 7001 and the equivalent of u. s. $1,000 in ~riss Francs have been si•ent out of loan funds, an increase of u. s. $2, ~'00 over the amount indic~ted in the previous report.

The expectecl date of completion has been postponed one month since the pi~evious report.

. . Mr. Henry W. Riley

Symbol Number

III (q)

IV

V

VI

!lame of Project

Staatsmijnen - O:icygas

Mekog

Zoutindustrie

VoRdelingenplaa.t

-~.,


January 1/52

July 1952

December 1951

September 1952

Remarks

The expected date of completion has been postponed two months since the previous report.

To date U.S. $55,200 and the equivalent of U.S. $52,500 in SW1ss Francs have been spent out of loan funds. This represents 61% of loan funds allocated to this project.

The date of completion of this project has been postponed a further two months from the previous report. This date was originally February 19Sl. The latest postponement is due to a delay in the delivery of the salt screens ordered from the Tyler Company of Cleveland, Ohio. To date U.S. $88,100 and the equivalent of u.s. $47,100 in SWiss Francs have been spent. This represents 6o'1, of the loan funds allocated to this project.

The completion date of this project has been postponed thirteen months over that originally contemplated. The following reason is given for this delay: "With erection of the new building for the dyestuffs production, the ordering of additional machinery proved to be necessary. This machinery

. .

Mr. Henry W. Riley

Symbol Nwnber Name of Pro.1ect

VI (cont.) Vondelingenplaat

X

XI

XII

XIV

Stork Machinefabriek

Grofsmederij

Neerlandia

Smit NiJmegen

-4-

Expected llle.te of Comolet:1on

September 19.52

December ll952

Completed

Completed

December 1951

XVI Kon. Ned. Papierfabriek May 19.52

Remarks

wUl be ordered during the fourth quarter of 19,51." To date U.S. $82.300 of loan funds have been spent, representing 77'/, of loan funds allocated to this project.

Completion dAte remains unch&:lged. To date u. s. $40.600 have been spent out of loan funds. representing s<YI, of the funds allocated to this project.

This project was originally scheduled for completion in June 1951. To date U.S. $8.900 and the equivalent of U.S. $132.000 in Swiss Francs have been spent. representing 9'3'% of the loan funds allocated to this project. This is the same amount indicated in the previous report.

Due to a delay in the delivery of the paper counters. the date of completion has been postponed from September 19.51 to May 1952. To date u.s. $86.ooo in Swiss Francs have been spent out of loan funds, or 74% of the funds allocated to this project. the same amount shown in the previous report.

• I • "I

Mr. Henry w • .Riley -s-

S1]Dbol Number

xx

XXII

XXIII

XXVI

XXVIII

Name ot Pro.1ect


Hollandae Textielindustrie

T. I.M.A.

Oosterveld

Nijverdal

lb.pected Date of Completion

December 1952

Completed

Remarks

Completion da,te remains unchanged. !D1o date U.S. $13,200 and ur.s. $99,300 in SW1ss Fran.cs have been spent, repree1ent1ng 741, of the loan f 'unds allocated to this proje1ct. This is the same amou~t shown· in the previous report.

This project was completed in Jruly 1951, six months later than originally anticipated. A total of U.S. $91 411.78 out cif the U.S. $101 000 allocated for this pro~Ject have been spent.

October 1952 The expected date of completion romaine unchanged. ~fo date U.S. $145,00() in SWiss Fr¥CB have been expended, representing 67'1, of the loan funds aJLlocated to this projecto This is the same amount shown in the previous report.

This project was completed in :;eptember 1951. A total of S.Fr. 289,973.801 oir nearly the full amount of U.S. $67,500, hilve been spent.

......

Mr. Henry W. Riley - 6 -

Group II ProJects (Banlc Participation more than $200,000):

I. Vereenigde Glasfabrieken

It is estimated that all the machinery will be in full use by December

15, 19.51. Production bas already started and bas reached 881, of capacity.

The total investment of loan funds stands now at U.S. $329,500 and the

equivalent in SWiss Francs of U.S. $82,200. The project appears to be on

schedule.

III (h) Soda Plant

The engineering work is scheduled for completion by February 1952,

three months later than foreseen six months a.go. 65~ of the orders have

been placed and 35i of the equipment bas been received. Deliveries should

be completed by AU&Ust 1, 1952 and should be in full use by February 1,

1953, one month later than originally contemplated. To date U.S. $55,000

and U.S. $5,000 in Swiss Francs have been spent out of loan funds.

III (j) Ooke Plant - lllmrna II

45~ of the engineering work is completed. It is estimated that this

work will be finished by Al18Ust 1, 1953. 35% of the orders have been

pl~ced and 12% of the equipment bas been received. All deliveries should

be completed by February l, 19.54. The plant should be operating at full

capacity by December 1, 19.54. To date U.S. $240,000 have been spent out

of loan funds.


9~ of the engineering work is completed and the balance is expected

to be finished by December 1, 1951. 97'1, of the orders have been placed

" . ~ ..

Mr. Henry w. Riley -1-

III (m) Fertiliser Plant (cont.)

and 941, of the equipment has been received. Remaining deliveries should

be com9leted by April 1, 1952. The plant is operating at 8~ of capacity

and should be in full use by June l, 1952, two months later than originally

contemplated. To date U.S. $170,000 have been spent out of loan funds.

VIII Xempesche ZinkmaatschappiJ

With the exception of valves and vanadium catalysts, which were

expected to be received during October and November 1951 respectively, all

the equipment has been received and most of it i s in use already. The

project was expected to be JS~ in use by November 1951 and in full use

by August 1952, or eight months later than originally contemplated. To

date U.S. $254,?00 have been spent, representing 87% of the loan funds

allocated to this project.

XIII Dreka

The only equipment which remains to be received consists of eight

wire braiding machines and spare parts for various machines already in

operation. !he braiding machines are expected to be received by January

1952, and it is anticipated that the few parts of the project not yet

in full use will be fully operative by June 1952. This will represent

a delay of some nine months over the date originally contempla ted. The

delays will be due essentially to late deliveries. To date U.S. $146,500

have been spent out of loan funds, representing 81% of the funds allocated

to this project.

lJ.1...:,J7

. ' .

Mr. Henry W. Riley -8-

XVIII Ten Cate

The engineering work and the placing of orders continue to progress.

Sizeable quantities of equipment have already been received and are already

partially in use. The project should be completed by September 1952,

with the exception of automatic spoolers, hi~ speed warpers and tailing

machines, the delivery of which is being delayed because of the defense

program in the United States. At present, it is expected that this last

listed equipment will be delivered by Janua.ry 1953. To date U.S. $1,460,000

have been spent out of loan funds, representing 7~ of funds allocated

to this project.

XIX Bamshoeve

Of the equipment .which remains to be received, one section consisting

of sliver lap machines, lap drawlng frames, sliver drawing frames and

bi-coil drawing frames and 1nterdraft frames should be delivered during

December 1951. Another group of similar machines is to be delivered

during December 1952. This machinery, once received, can be put into

use without delay. It is therefore anticipated that the project should

be completed by the end of 1952. Sizeable qUAntities of machinery are

already in full operation. To date U.S. $3,000 and the equivalent in

SWias Francs of U. s. $133,900 have been spent. This represents 2C/f, of

the funds allocated to this project.

XXI Stork Wegfe9ederen

More orders have been placed and practically all the equipment ordered

has been received. The project should be completed by February 1952. To

.. j ...


XXI Stork Weefgoederen (cont,)

date U.S. $57,900 and the equivalent in Swiss Francs of U.S. $144,600

have been spent out of loan fund.a. This represents 4<11, of the funds

allocated to this project.

XXV Pt Schelde

The date of completion of this project bas been postponed three

months to December 1952, owing to the fact that the Maag Gear Wheel

Company cannot possibly commence delivery of machines until May 1952,

as some of the first castings were not satisfactory and had to be returned

to the foundry. To date U.S. $185,225 in SWiss Francs have been spent

out of loan funds, representing 53~ of the funds allocated to this project.

XXIX Gelderman & Zonen

The machinery which remains to be received consists of ring frames,

card room machinery and conversion ring frames. It is scheduled for

delivery between January and March 1952, and should be in full use by

July 1952. To date U.S. $169,700 in $Wiss Francs have been spent out of

loan funds. This represents 62$ of the funds allocated to t his project.

General

It is interesting to note tba.t the Herstelbank bas ma.de an effort

to Justify in most instances the further delays in completion of the

projects. As the Herstelbank ba.s been informed of the l3ank•s policy

to try to help borrowers speed up delivery of equipment from the United

States, it is not felt that any action is necessary in this connection,

at this time •

~ No action required.

~ \ ~.c. Mr. Fa.Jans :BPi:;n 1.,.n • ~ n

HERSTELJJANK.

I

III

Vereenigde Glasfabrieken .v. Staatsmijnen in Limburg

TEN!!A!:IVE

IV

V

• • tachappij tot =xploitatie van Xookso•engaseen

Xoninkl1Jke Nederlandscbe Zoutinduatrie 11 .V.

VI J'abriek van Che.mische Producten B.V.

VIII

X

XI

XII

.v. Kempe.nache Zink tschappi~

chinefabriek Gebr. Stork a: Co. R. V.

.v. Konintli3ke Bederlandscbe Grofamederij

.v. Draadindustrie eerlandia

XIII Hollandsche Draad• & Kabelfabriek N.V.

XIV ill em. Sm1 t Co ' a Trans forma toren:t'abriek B. V.

XVI KoniDkliJke ederlandsobe Pap1ertabriek H. V.

XVIII B. ten Cate Hzn. & Co •• v. Xll n.v. Katoenspinnerij Bamshoeve

TERLIST PER

U.S. dollars

331.000.--1.500.ooo.-

87.350.-

175.150.--

106.500.--

293.700.-

82.000.-

64.679,86

}8.268.-

192.000.--

9.000.-

-.-31s.ooo.-356.ooo.--

1, 1951

-· Swiss francs Total in 8

82.250.-44.200.--

90.000.--

52.350.-

-.--.-.... , .. -.--.--.-

142.100.-

116.,00.--

1.648.140.-

341.400.-

(

(

{

(

(

(

(

C

(

(

353.700.-) 190.000.-)

387.000.-)

225.100.--)

-.--.--.--.--.--.-

)

) 1.1\~ ooO

)

)

)

) 1to.ooo

177. 350.- ,

227.500.-- "

106.500.-

293. 700.-- "" ;_ 4' 70 82.000.-- ~

64.679,86

:,8.26s.--

192.ooo.-- tijO· 000• -

( 613 .610.-) IS'~ 1.oc, 151.700.-

( 500.000.-) 116.,00.-- o/

C 7 .oa1 .ooo.-) 1. 963.140 .--

( 1.468.000.--) ~00 697.400.--

xx De it' Textielnijverbeid N. V. , 20.000.- 102.500.- ( 440.750.-) I - 122.500.--

lll Koninklijke eefgoederenfabriek C.T. Stork & Co. .v. 140.000.-- 460.000.- ( 1.970.000.-) 600.000.-- I

XXII B.V. Hollandeche !ext1el1ndustr1e 68.612.- -.- ( -.- ) 68.612.-- ..

XXIII .v. Textiel Industrie atschappij Apeldoorn 9.411,78 -.- ( -.- ) b.o o o. 9.411,78

XIV B.V. Kon1nkli jke atscbappij de Schelde -.- 350.oofr;_ ( 1.505.000.--) 350.000.- ,

XXVI .v. Spinnerij Oosterveld -.- 215.000.- ( 924.500.-) 215.000.-- ..

XXVIII stoomsp1nner1j te 1jverdal .v. -.- 67.500.- ( 290.250.-) 67.500.-- '7 41"·1~ llll H.P. Gelderman & Zonen B. Y. -.- 273.100.- ( 1.175.000.-) 273.100.--

\ I) S-000 .(h

,.188.671,64 3.905.440.--

Reserve 1.025.888,36 8 'l.. l . I ,Oil ,600,l 'f

~ K,-o,e-'"'° .,... e.aoo.ooo.-- i r o-o.c ·----~:/cs

6 No•ember 1951.

Letter Jo, &067 lonmber 7, 19Sl

~

letherlanda lmbasay 1470 Buclid Street N.W. Washington 9, D.O.

Gentlemen:

\le acknowledge 'With thanks receipt or your letter lo. FJ./2461. ot

lovember S, vith vhioh 7ou enclosed three copies eaoh or the progreH

reports on the Herstelbank projects for the quarter ended September 30,

'

~ .

HeD17 W. Rilq Assistant Treaaurer

PT

•

1951.

\).

NETHERLANDS EMBASSY

WASHINGTON 9 , D. C.


Mr. S. Alde '"'rcld Assistant to th ~re sur • Inv n vion 1 Bank for R con~truct:on

nd D velop. nt 1818 H ~treet, N •• "shinuton, D. c.

Dear Mr. Aldc er ld:

Nov mb r 5, 1951

1470 EUCLID STREET, N. W.

TEL, ADAMS 1662

CAGL£S1 NETHERFIN

I am encloslng heretlth, in triplic~te, 0 ro·~ ~~ R p L~ as of September 1951 for the follo i~g proj cts:

., I. III. IV• v.

VI. ., VIII.

x. / XIII.

XIV. XVI.

/ XVIII. /XIX.

xx. .,,, XXI. XXIII. ,,,, XXV • XXVI.

XXVIII. ./ XXIX.

Vereenlede Gl~sf brtek n Sta tsmijn n ~kog

Kon. Ned. Zout'ndustrie Von'elin~enplaat Kemp n ... che Zink nj Stork rt. chin f briek Draka Smit Nijm gen ~on. Ned. ?apierfabriek Ten Cate Bamsho ve de 1· 's T xtielni~v heid Stork efgo je nfabrlek T.I.M •. A. de Schelde Oort rveld Te Nijverdal Gelderman

Very truly yours,

L. R. '• Soutendljk Financial Counselor

FORM No. 57 ( 5. 48 ) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

OFFICE MEMORANDUM TO: Mr. James F. Smythe

Mr. Joseph ~ans FROM: M. Verheye

SUBJECT: Herstelbank st of Goods

( DATE: October 30, 19.51

Please find attached herewith for your files the supplementary breakdown list of goods for the Category XIII item 1 through 16 of the List of Goods.

Wes hall be pleased to receive any comments that this list may raiseo

I wish to draw tour attention to the fact that the all ~cation of category XIII is only $180, 000.00 when the breakdown list of goods amounts to $191,829.70. This excess is explained in the attached. letter of October 27, 1951 from the Borrower's representative4 If the Bank agrees to finance items 12 and 16 Cat. XIII will be overdrawn and an

....,applOXimal;e S1.Jitt'lar- amount Shouid be later OE._ tr!_nsfureaf r9~

.IXV!l to Cat"; nII-a-t"-the- t.hne 6.f an of1 cial change of the list of • go6a:r.

EN C10SURE. J<c _L

6'~·

From "Nieuwe Rotterdamse Courant.n October 10. 1951 (front page).

Herstelbank Urgently Needs New Sources of Fina.nee - Possibility of Temporary Suspension of Activities

Yesterday Dr. J. F. Posthuma delivered an address at a luncheon in Amsterdam which was organized by the Amsterdam section of 11De Nederlandse My. van Nyverheid en Handel" and "De Grote Club Doctrina et Amicitia 11 • In this address, the President of the "Herstelbank11

called on business circles to make available for this institution an amount of 4-0 to 60 million guilders. According to Mr. Posthuma. without this amount the 11Herstelbank:11 would be able to do hardly anything for industry during the coming year, and could only resume on a modest scale her useful work of lending to business , after outstanding credits had been repaid.

The 11Herstelbank11 had originally available for lending purposes the amount of 410 million guilders (reserves included). Outstanding credits, minus redemptions, are 396 million. In order to be able to continue her lending activities. the 11Herstelbank" needs new sources of finance. An endeavor to obtain Marshall Plan counter:pa.rt funds for the •Herstelbank:11 failed. There is no sense in callill€ on the investment market. because the Government has already ean:1arked for its own purposes an important part of the resources available from institutional investors.

Therefore, according to Mr. Posthuma, only a call on business circles remains. If business, during the next two years, is willing to inves t five percent of its reserves in a loan to the 11Herstelbank"• this would make available at least 40 million guilders.

If industrialization of our country should be continued, then an inflationary injection should have to be made at a strategic point, which. according to Mr. Posthuma, is the "Herstelbank11 •

The policy of this institution, as explained by Mr. Posthuma, has still to be directed at an improvement of our balance of payments. Therefore, enterprises which stimulate exports, or tend to diminish imports, are first in line to obtain credits . Experience has taught that financing of new enterprises bears considerably greater risks than financing of expansion of existing enterprises . Total loss of the 11Herstelbank" during former years totalled 7 million guilders.

From Netherlands bt1Siness to Netherlands business is the basic idea of this plan, according to the speaker. If this call on cooperation of business is not successful. then the "Herstelbank",

e,h t,-, .. d ~ f · L,~ _ ··h

""' ' .

-2-

for a certain length of time in the near future, w111 not be able to act as a transformer, which changes savings into credits.

During the question period, it appeared that the idea is to place a loan through a syndicate of banks. Interest on this loan should be a minumum percentage, but every five years the amowit of interest would be reestablished according to the existing interest rate at that time.

Mr. Posthuma was not in favor of a State guarantee for this loan. He is not inclined to ask for State cooperation, as long as other possibilities have not yet been eXhausted. He also objected to a guarantee by business of a loan to be placed vith others.

FORM NO . 57 (5. 48)

TO:

FROM:

SUBJECT:

INTERNATION . BANK FOR RECONSTRUCTION ANf EVELOPMENT

OFFICE MEMORANDUM Mr. Henry w. Riley

Norman G. Jone~

Hers tel bank c - /

DATE: October 5, 1951

On September 6, 1951 , we wrote to the Herstelbank asking for i nformation on an apparent discrepancy in the report on one of the projects financed under this loan. In the report on Project No. XIX, Bamshoeve , mention was made that this Company has financial diffi culties which have forced it to postpone placing orders for the rest of their planned investments until 1952. This statement appeared to contradict the Schedule of Projects which showed that all orders had already been placed. We have now received an answer from the Herstelbank which is very inconclusi ve. With regard to the apparent discre-pancy concerning the placing of orders, the Herstelbank mentions that the schedules attached to the progr ess reports we receive do not include all the orders pl aced or to be placed due to the fact that the companies do not know i n advance what orders they are going to place. liu.rthermore, the Herstel bank s tates "Alterations in the plannings are unavoidable as adaptati ons to the change of the conjuncture are also necessary 11 • No reference is made to the f i nancial diffi culties.

Mr. Fajans has been informed of the contents of this letter. He mentioned that the Bank has been appraised by Mr. Soutendijlc that both the Netherlands Government and the Herstelbank plan to approach the Bank shortl y to review the situati on with respect to the entire loan and the possible use of the unallocated funds . In view of this it is suggested that no further action be ta.ken at this time on the matter under considerat i on as the Sta.ff Loan Committee will have to review the entire positi on of this loan in the near future.

r • c• Mr. Fajans

(N~iro:ea \ ~

r /I

Hr. n~ • October l,1,-, 1951

o. Joneo

Upretel Mi -~ l!QlMPfl fib, q~ &P Ale 3MN.At 3l, 1951

1vr:S?<°_ t!nde~ co..-er ot their 1 tte:r of S t tb :r 28, 1951, t Iler tel.Mril: cnt WI

a caw of their onthly Enl.o.neo She t s t August 31, 1951. and Profit LOalJ Account fop th flr t ight montho of the yen.r 19.51. ~ nnee t l condoncbd ibel ::

S<SPta3b r 30, Jul.7 31, t :n.. .. 1S?50. . l:9SJ. . .... 1251

§

114.S) 169.4 1?4. 6

6.9 15.~ lJ.8

-- 66.5 65 .. 9 250., 284.8 262. 3 ,.a 7.8 7.9

4. 0 7.1 a.o 14.? 24.9 24.9 l.}.7 6.o 7.J

e -- 1., 1.5 ~~!! ~.~

Account :Yft.ble 63.1 158. '.5 159.1. Of' ich rmm Account 2. 0 2. 1 Ot hlob Imm Gr Account 616.o GP6.5 Of lfh1ch las~ cs ~bonda ld by - SF2.6.5 12.65 or b'h le.b. Cr to1'tJ 3.8 7.8 7.9 Of Whlcll SF Creditor 4.0 7.7 e.o Qt ch rr1tlk 1 -

C Compe.nteo - 69.? ea., iscellancoue .Aecounto .1 .s ). 3

Re rve for Ead D ibt 7.9 12.5 u .4 P.eo ~.a 6.1 6.1

C ;T>ltal 300.0 ,ao.o ,oo.o n t lncom to Dote ;iw~:i 212 ~.,!

~...! 489,:;

01Ycm 4.? v.a 9.1 Lon.nu Gr t 1th4mun 31.9 .e 91.9

-·-"'- Ml..S.S -.11.. •iw. ._ .. w,. o1-.1.~-... ,,,,....,

flae ...U 41.....-1*1' ._.. ... ..,_, _. ...-, le ,..,...., .....

,1. l o.r;• &a •Mac .-.i.. ....... Sa Ille '-- etl .. ....... J.:a.-.

o.o. Hr • ..,._. /

BPIJ)ll"oaea

--~.

MAATSCHAPPIJ ~ TOT FINANCIERING VAN HET

NATIONAAL HERSTEL N.V. 'S-GRAVENHAGE, <>eptember 22nd Kneuterdijk 6 1 9 ) 1 Telefoon 183890/98

K/1 P63- 3s/Ct> •

I

.F'or attention ''r. u •• 1ldewerelcl.

International Bank for Reconstruction and Develop...,ent, 181? I - Street :.·r., TI ash in et on 25 D.c.

Gentlemen ,

~'i th reference to your letter no. ru;599 of Septer1ber 6, 1951 me beg to inform you that the postponeMent of the corripletion date of Project no. XIV s,..,i t NijMeren fro..., June 1951 to December 1951 is caused by the delayed delivery of a machine for manufacturing rectangular enamel wire and a high voltage sphere gap (see application for qualified commitrrient no. 55-1-1 and 3-1).

In the case of Project no. X Stork ~~chinefabriek there must be a Misunderstanding as the date of coMpletion is Maintained on DeceMber 1952 in all of t~e nrevious progress renorts.

Pith regard to your question concerning Projoct no. XIX Ba~oeve we let you kno~, that the Progress reports in ge~ral donot rriention the entire investmPnt plans but only tha:s'e i terns which already have been ordered . v'e understand that connlete schedules of the invest~ents are to be [email protected] but this procedure cannot be used as the various corfB)anies have a rough estimate only of the planned investme~s and donot knO"' enough details to '!lake uo complete or&gress renorts. Furthermore alterations in the plannines ar~ unavoidablp as adaptations to the change of the con-juncture are also necessary.

· e trust that this information will be Rufficient and we assure you we shall do our utmost to co~plete tho reports a~ soon as the necessary details are available.

UJ.~ 3.0

j

'! O'I

I n

,gOAHY13V AR0-2' ii iliilm1u,n'.,I

111?\<M?S{Br noo1,1,T

n Jrr ,.~. ' 2j·ro ,: j

'I

tC..lU

tI 'i q AH'.) i T AAlfi.. T3H Vi.AV ~Vi.IJI3-l~H1A J'iJ: TOT

.V.Vi. J.3Til..Jf3H JAAl10ITAl1

NETHERLANDS EMBASSY

WASHINGTON 9 , D. C .

14 70 EUCLID STREET. N. W .

T EL. A D AM S 1882

O FFI C E O F F INANCI A L CO UN SE L OR CADLES1 N ETHERFIN

FA/2074 September 18, 1951

Mr. S. R. Cope ~ Loan Officer ~ · International Bank for Reconstruction


Re: Loan IB-15-NE ( ~~~ ~)

Dear Mr. Cope,

I refer to your letter of August .30, 1951 as well as to

my provisional reply FA/19.30 of August .31, 1951 and wish to advise

that the Borrower under the captioned Loan Agreement is actively

~ ~ ~';, engaged in exploring, in consultation with the Netherlands Govern-

ment, ways and means to apply in the D¥>st beneficial manner the

unallocated balance of the Loan.

I have been requested to thank you for drawing their

attention to the one project you referred to in your letter and

to inform you of the fact that they hope to revert to this matter

in the near future.

Sincerely yours ,

L. R. w. Soutendijk Financial Counselor -

Letter No, F:U/599

Y.aatechappiJ tot J'ina~c1er1ng van het Nationaal Reratel N.V.

lneuterd1Jk 6 file Hague, The nethei,1lands

Gentlemen:

September 6, 1951

With further ref'erence to our: letter Bo. Eu/553 of Auguat 17, 1951, we have now had. an opportun1t7 of reviewing the varioua progrees reports you have sen ue attached to your letter of Auguat 15, 1951. We have noticed that in several instances anticipated completion datee of varioua proJects llave been further poatponed. While we can appreciate in m3at inatan te• ca.uaea for such poetponements, we ahoald like to know what caused be poatponement in the caae of ProJect No. X Stork Machinefabriek from December 31, 1951 to December 31, 1952, and 1n the case of Pr0Jec1t Ho. XIV Smit B1Jmegen from June 1951 to December 1951.

!here 1a another question which we should like to raise at this time in connection v~th Project No . XIX Bamahoeve. In the report on this ProJect mention is made that this company baa financial. difficultiea which have forced it to postpone placing orders for the r est of their planned investments till 1952. Thie statement appe:i.rs to contradict the sched~O.e of progress which shove that all orders have al.r~ been placed. We would greatl7 appreciate it if you could clar1f7 t hia apparent discrepancy.

~ Sincerely yours ,

s. Aldewereld

l3PSp1ro:tcf:ea

\

\:

'

FORM NO. 57 (5. 48)

TO:

FROM:

SUBJECT:

INTERN A 1 IONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

~ OFFICE MEMORANDUM

:J:.::\~ DATE: September 5, 1951

Herstelba.pk~

I am sending you enclosed a memorandum analyzing the progress

reports on ali the loan financed projects under this loan as at

July 1, 1951. I wish to bring your attention in particular to

Page 5 of the report on the Bamshoeve project.

... \.

~ ~ PSpiro: ea

G \

, Mr. Henry V. Riley

Norman G. Jonee

.Auguat 28, 1951

Heratelbank: - Progreaa .Beport1 ae at July lit, 1951

Under coYer of their letter of August 15, 1951, the Heratelbank sent ua progreaa reports on all the loan-financed projecta with the exception of the project• previously reported completed. A reTiew of these projects 1howa the noaition to bo aa follow,:

Groun I Project1 (Bank Participation less than $200,000):

Symbol Number

Ill {a)

III (c)

III (e)

Ill (f)

III (g)

III (k)

lll (1)

N~..me of Project

Staat1mijnen - Phenol Plant

StaatamiJnen - Naphta-line & .Anthracine

StaatamiJnen - Potat-aium Ferro-Cyanide

Staatamijnen - BaS Removal

Steatemijnen -Phtalic Anb¥dr1de Plant

Staatamijnen - Urea

Staatsmijnen - H.P. Central Station

Exoected Date of Oonroletion

February 1/52

December 1/51

NoTember 1/51

September 1/51

hmarke

No Bank funds have yet been used.

~o date U.S. $18,000 loan f'unda have been spent.

The conmletion date of this project waa originally March 1, 1951. to date U.S. $3,JOO loan f"Undt have been 1pent.

The original completion date vaa lebrua.17 l, poa\poned to July 1, and now to September 1, 1951. To date U.S.$11,000 loan funds apent.

fhia ~roject vas completed on Jul; Jl, 19Sl. The amount of the Bank :tunda apent, U.S.$4?,000 /

October 1/Sl

October 1/51

The original date o! completion for this project Yaa Janua.17 l, postponed to March let, then to August 1, and now to October 1, 1951. To date U.S. $2,600 and the equiTalent of $700 in Sv1as Franca spent out of loan funda, the aame amount indicated in the previoua report of April 1, 1951.

!he original completion date of this project vaa Auguat l, 1951. U.S. f2S,OOO ot loan funda have been apent \o date.

f.lr. Heney W. liilq - 2 -

Symbol Expected Date Number Npe ot ProJect of Completion Remark• III Co) Staatsmijnen - Cyclo- 1.fa1' l/52

ilexanon Plant

III (~) Ste.ahmiJnen - Ci;pro-lactam Plant July 1/52

Ill (q) Staatsm1jnen .. ~gae lfovembel" 1/51

IV Mekog Jul119.5Z irhe date of completion re-ma1na unchanee4. !o da\e fl9,'700 haft \een 1pen, 1D U.S. Currency and Swiea Franca, th1a repreeen\e Ssft of loan tnnda.

' Zoutindus trie October 1951 Date of completion wa, or-iginall.7 Yeb,ua17 1951, po e tponBd to Augua t ancl now to Oc\ober. Poatponemen\ appear, to be due to 4e~ in deliveJ'T of mach1nenr from Swit~erland.. To elate a total of $116,ooo in u.s. currency and Sw1•• franc, have been 1pen\, reprea·en\-inc s1i of loan fund,.

VI Vondelingenplaat Auguet Jl/.51 Date of completion remain, unche.nged. !o date ,$82,000 or J/4 of the loan funda have been spent.

X Stork Machinefabriek December 19.52 Ill the p reTio,.i.lJ report the schaduled date of comple\ion of thla proJect was given EU

llecember Jl, 1951. lio coi.-men\• are g1Yen aGncern1nc the poetponement of one 7ear and 1t ie suggeeted that Heratel~ank be aeked to com-ment.

XI Gro:fsmederiJ Completed

XU lle&rlandia Colll.!)leted

Ml'. Heney W. Ril q

SJ,nbol 1lW1b8£

XIV

XVI

xx

XXII

XXIII

XXVI

XXVIII

Name of Projf'ct

Sm1 t N1Jmegen

Kon. Ned. Papierfabriek

De Wit'• Text!elnijTerheid

Hollandee Textieli nduetrie

T. I .M.A.

Oosterveld

BiJ'7erdal

- ' -Expected Dat• ot Completion

December 19.51

September 1951

December 1952

Completed

Jul7 1951

October 1952

July 1951

JieJDarka

Thia project vaa ortcinal-17 scheduled for co11pleUO'.J. in June 1951. To date $140 1 900 1n U.S. dollare and SVia1 J'ranct ha.Te been apent repreaenUng 93!' of loan fund.a. lt 11 •ucc••'•4 tha t the Heratelbank be aeked to COIUlent on the eerioua poa\ponement of the completion 4ate.

The new buildlnce tor Ule pa.per machine and other iiUl'.:h-. inery are completed. and the paper machine 1e inatalled. ~he loan :f'und parUc1paUon in th1a project 1• $116,300 out of a total ot estimated. investment ot $1.4 m. To date $86.ooo loan fund, have been ex,i,ended.

toan funds &re expected to represent about l~ of the total 1nve•tl1811& in th1t project. To date $112,500

in U.S. dollara and SV1a, Jranc1 have been apent ou\ ot loan funds. '?hi I rep1·ssen h 74'1, of the tunde allocnted to thie project.

i'he otig1nal date o f completion wa1 Janua.17 l9Sl postponed to September 19.51 now advanced to Jul~ 1951. Bank participation aJDOunta to ~10, 000 of which $9 ,412 have been exoended.

To date $145,00 in S,,,111 France have been expended. ni11 represent• 6~ of the loan f'unda .

fo date $6?.400 out ot $6?,.SOO lorui fund, haTe been expended.

Mr. Henr, W. Rile7 - 4 -

Oroun It Projectg (Bank Participation more then $200,000)

I. Vereenigge Glaafabrieken.

,:ne engin~ering part of th.is project 1e fully. completed end all order• have been placed. rhe annealing 171tem and the decorating inetolletiona have been delivered 1n full and the former ia 68~ in use. It is eroeoted that it will be in full uae in mid December 1951. The batchhouse and trsnaport and production JDachinery ore aleo expected to be in full use by mid Dftoember 19Sl. The decorating inatalla tione ahould atart operating b1 mid Je.nu.a.ry 1952. The original date of conpletiQn of thia projec\ ht-d been aet at mid September l9Sl. The poatponement it due to unforeaeen dela7a. Of the total inveetment of $821,000 , $)83,000 or 92~ of lot\ll allocation, represent loan funde (U.S. dollara and Swiaa franc,). In addition it ia expected that 614, 0CO in guilder• vill be invested in the new building.

Several photographa of the nev plan\ ere attached to thie report.

Ill (h) Sod.a Plan\.

The en&1nMr1ng vork h scheduled. for completion by December 1, 19Sl, one month l Ater tha.n foreseen three monthe ago. 60% of the ordera have been placed and JO~ of the equipment have been received. It 1s expected that deliveries vill be coMPletod by June l, 1952, and that the plant wlll be in full oper· tion by January 1. 195).

111 (j) Coke IQ.ant - Ell!II\B 11

40;6 of the enaineer1ng work 1~ ootrroleted. lt 1s eat1~ted that this work will be finished on Augu.et l, 19.53. JO~ of the ordora ha.Ye been placed and 1oi ot the equipment received. All deliYeriee should be COJlJPleted by Februa17 l. 1954. 'l'he plant h expected to be O'Oernting a.1 half capacity b7 Auguat l, 19.54 and at tul.l capac1t7 by D~cember 1 1 19.54.

11I (m) ~ertilis8r PlAnt

fhe engineering work ia 99,r, completed and should be terminated on September l, 19Sl. 96% of the orders have oeen placed and 93i of the equipment baa been delivered. It ia expected that deliver1ee will be coJ1JPle ted by iebruary l , 1952, and that the plruit will be 75h 1n uee by April 1. 1952.

All the orders have been placed and all del1ver1ee with the exce tion of the Talvee and nozzloe haTe been compl8ted. It vaa expected that the deliTeriea for these la1t tvo items would be completed by August and Julr 1951 respectively. All the equip~ent ia expected to be in full use by end of September 1951. O! the loan funde allocated to thia project, $254,ooo. or 87j, ha.Ye been exuended.

Mr. Henr7 W. lUlq - s ..

J:Ul Praka

All the orders have been placed and conaiderable q_uant1t1ea of eq_u1paen\ baTe been deliTered. Th• remaining equipment is scheduled for del1ve17 betwHn Sep\eaber 19Sl and ebruary 1952. It ia expected thnt all thia equipment wUl be in uae b7 June 1952. HoveTer, the fine wire drawing mo.chine• which were del1Tared quite aoae time ago are not fully in uae due to ehoria&• ot copper. 1'h.1a project waa ortcinally scheduled for completion by Jul.7 1951. which meana that becauaa of late deliYeriea etc. it had to be postponed b7 nearly one year.

To dote $141,300 of loe.n funds haTe been expended, representing 791, of the fund.a allocated to th1a project.

IYIII '1.'en Cate

!'he engineering vork for thie proJeot 11 progresaing and 1s scheduled for co .. pletion b7 October 1951. Nost order, hnTe been placed and deliTerie1 appear to be progreaeing 1atiafactor1l7. !hey re scheduled for completion by Janua17 195). All the loan-financed msch1ne17 ahoulcl be 1n uee b7 februar7 1953. The winding and 1pinn1ng department, are completed, the machinery- is beimg installed and partl7 in uee. !o dl\te $1.450,SOO U.S. dollar, repreeenting 74'/, of the flmde allocated t.o \his project have been apent.

XIX llam1hoev1

All the engineering work is completed and all the order• have been pl ced. Sizeable quantitiet of machiner,y have been delivered and have been put, to uae. 'fhe remaining machinery is acheduled f or del1Te17 between December 19Sl and December 1952. Ho eat1 tea are «1ven of the date when th1• additional machiner7 11 expected to be 1n full o eration.

A• at Jul.7 1, $135,300 in~ .. ranos and U.S. dollar, ha.Te been expended. !hie repre ent1 about 20~ ot the :funds allocated to this project.

In this report on thia proJect, mention is made that, ow1na to a general bUTert strike in the Betherla.nda, maJl1' manu.facturert, e1peciall7 in the textile branch, have financial d1ff1cult1e1 and conaequentl7 this compa217 ere obliged to await until the beBlllning of 1952 before they vill be able to order the rest of the planned inTestmenta. ~11 appear& to contr&dict the progre,a schedule vhich ehow1 that all order11 haT.- e.lrea~ bean placed. It Jll81' be remembered in thie conneoUon, that at the time the loan waa being negotiated mention waa made that the Netherland Textile Induat,:'T hod alr8t.ld7 nearly reached its full capacity and that. therefore, the e111.9ha1i1 should ba placed on other industrial eaoUon• of the Detherland econom.1. NeTerthelea• , as a result of variou1 changes in the liet of goodt the empha1is ha.1 shifted troa general induat?7 to the text1le industl'7 to the extent that projects of thi1 ty:pe are allocated 46i of loan tundt. It 18 •UMeated that the Loan Department be appraised of the comments made by thia con:ipan7 and that the Heretelbank be asked to comment on the parent diacrepanc~ ~oncerning the plncing of order,.

JXI

Orders for sizeable quantities of equipment h.t.i.Te been loced. However, there ap-oears to be some doubt with regard to tho e1timated date, of delivery ot 1ome ot the equipment. fb.e project. nevertheleaa, 11 still expected to be completed b7 Ja.n.ua17 19S2. !o date $201.900 in Sviaa J'ranca and U.S. dollars have been apent repre1enttng 33i of the funde alloo,ted to this project.

Mio. aenri v. nu.-,

:av b §ehe:Wo Th• entln -.cldne:17 toXt th11 plMlt ta eebedUl.'4 to~ 4ellMJ7 lo' Sept hr 1.

1951, and lhould be ta t\111 .a•• b7 :ab 1952. fbs nw bQ1l to hou.ae tbe ll&Chtne17 la naarl.1' t,om:plete4 ucl • SO Ion C1'Alle ~ch le uce tal"I to b:srull.9 tb.t.a • u1pnent 1• b.tng tuu.l.194. ftte tou.nd.e.110111 to'I \be bal"Cleal tu.11\U•s u. coa,,. pl e\ed an4 ereotlon o'f the tld'nace• ba• Men •tarted. To dat• 1~, 700 In 1•• J'ra.noe have beea e~e4 n-pr•eentl 41~ of th• funds Allo ted I() Ible J•'· lllX Gty,4#,mp.f, i.?DM

Al l ordero be.ft t>. placed an4 certabl ht.M• bo.ve al~ eon 4e11Taed and put tnto opentl on. the NlllfA!niftC eh1M17 l• tobe4ul-4 for del lv•J7 b. Ju.17 19Sl and March 1952 aad. abould be l1l tuU use b7 JQJ.7 19s2. Loan fund• ~-41t~e• am~un• to $111. 000 tn 1•• Fran~• or 4 of the olUlt 61.loaat•d to \b1e ~ojeco.

l t la auggeeted. that the B•Ntelbau:ak be a tbd t.o c en, on th, poa t o1 tu completion aate of no.1ect1 x. ftorl!t .,..achtneto.briek, e.nil .XtV, 1, ~ 1ent1oned a.bo•e and o.n '1le diJSCl'epenq concernlz:16 tm, pl.D.cl.q ol oriert bl

kmehoe,,e, ~i-oJcot XIX ebOT•• \'he 4Jtaf' ot a l.e,ter to that ~ftct l• attache4 lo• con11deratlon.

c. Q. r . JaJan.1

..

NETHERLANDS EMBASSY

WASHINGTON 9, D. C.

1470 EUCLID STREET. N. W .

TEL. ADAMS 1682

OFFICE OF' FINANCIAL COUNSELOR CABLES: NETHERFIN

FA/1930 August 31, 1951

14r. s. R. Cope Loan Officer International Bank for Reconstruction


Dear Mr. Cope: Re; Loan IB-15-NE ~/ Thank you for your letter of August 30, 1951, the con

tents of which I am bringing to the attention of the Borrower under

the captioned loan agreement.

'I"eply.

I shall not fail to keep you posted of Herstelbank's

l

Sincerely yours,

L. R. w. Soutendijk Financial Counselor

.w ,ti ,T:!13flTe OI.J.:>U3 o"•r

S.11111 eMAOA • .J3T

Y22A8M3 20111A..Jff3HT3&11

.:::> .a ,e IIIOTc:>IIIIHeAW

Hl'IS13HT,11• ,.?3.JDA:> fl0.J3e11uo::> JAl011Al1l"I "10 B:>1"1"10

eqoo .R .a . 'Tll -:reol 10 OAOJ

ooljo.1Mjanoo9.A ".Iol .>Inea .teoolj rnejnI .:trrsmqoievsO bn.s

~H1-cI-8I nsoJ :efl

.W .M tjoe-:r.:t8 H 8I8l .o .c ta0~5lll.desW

: eqo:J • "IM "t.esa

-aoo o.dj ,fc.ei tOE: .:taJr8.(JA lo ".Isjjel '!110'(; 'I01 .t.·Ot JlnsdT

".Iebnu 'JeWO'l'Joff erl.:t lo noljae.:tJs ed.:t o.:t ~nl~al'Jd ms I rlolrlw lo eJae.:t

a 1xnsdJeja~eH lo bejaoq VO'(; qeex o.:t lls1 .:ton II.aria I

xtlbaejuo8 .W .R .J ".IO!ocauoO Ialoll.Bn!~

I

:r. :

August 30, 1951

Dear Dr. Soutendijk,

The ev York Office of the Bank recently received e.n inquiry f'l'o Mr. Walter Rinck or the Industrial Plants Corporation, 90 West Brondvay,

v York City, about tho poosibUity of a Bank loan tor the purchase of equip:18nt for a neu shipyard nov boing construoted in th therlnnda. The total cost of the shipylll"d is eotimated at more than 2 million guilders and the dollar component wuld amount to about 150,000 to 200,000. Mr. Rinck, vho io representing Dutch shipbuilding lnteresta,

va advised to contact tho etherlands Gover nt 'With regard to their spo orship and guarantee.

It occuro to me that a proj,ct of this type could appropriately be financed under the Heratel~nk loan vh1ch, t present, ebova an unallocated oolcnco or OYOr 1 million. We do not M'Ye aray information on the project, and it is possible that after e. detailed examination it might prove to be ineligible tor financing by tha Bank. I thought, however, that it vas vortb vhile to mention the proposal to you in case 70u vould viah to puraue the ttor.

Dr. L. :R . W. Soutondijk inanoial Counselor etherlands bnasy

1470 Euclid Street, n. w. aehiagt.on 9, D. c.

cc. Mro w. A. Bo Iliff Mr. W. Kost er

Yours sincerely,

S. R. Cope Loan Officer

Mr. George L. Martin, Marketing Dept.

ajans/bvm

Fol!M No . 57 (5-48) INTERNAllON,A •. BANK FOR RECONSTRUCTION AN D DEVELOPMENT

Mr. Heney V. Ri~FFICE MEMQRAND~~: '2:t 28, 1~7 Norman G. J ~ ~ tu.l.1'1'l - <,t{~

'\•

TO:

FROM:

SUBJECT: Herstelbank - Progress :Reports as at July 1st, 1951

Under cover of their letter of August 15 , 1951, the Herstel bank sent us progress reports on all the loan- financed projects with the exception of the projects previously reported completed. A review of these projects shows the position to be as follows :

Gr oup I Projects (Bank Par ticipation less than $200,000):

Symbol Number

III (a)

III (c)

III (e)

III (f)

III (g)

III (k)

III (1 )

Name of Project

Staatsmijnen - Phenol Plant

Staatsmijnen - Naphta-line & Anthracine

Staatsmij nen - Pot as-sium Ferro- Cyanide

Staatsmijnen - IJaS Removal

Sta.atsmijnen ... Phtal ic .Anhydride Plant

St aatsmijnen - Urea

St aatsmijnen - H. P. Centr al Station


Februacy 1/52

December 1/51

November 1/51

September 1/51

Remarks

No l3ank funds have yet been ·used.

To date U.S. $18,000 loan f"Wlds have been spent.

The completion date of t his project was originally March 1, 1951. ~o date U.S. $3.300 loan funds have been spent.

The original completion date was Februacy 1 , postponed t o July 1 , and now to September 1, 1951 . To date u. s . $11 . 000 l oan funds spent.

This project was completed on July Bl , 1951. The amount of the Bank funds spent , u.s. $47,000

October 1/51 The original date of completion for this project was January 1, p ostponed to March 1st, then to August 1 \ and now to October 1 , 1951. To date U. S. $2,600 and the equivalent of $700 in Swiss Francs spent out of loan funds , the same amount indicated in the previous report of April l, 1951.

October 1/51 The ori ginal completion date of this project was August 1. 1951. u.s. $25,000 .fl£

0 13 6:? loan funds have been spent to date.

:

~r. Henry W. Riley -2-

Symbol Expected Date Number Na.me of Pro,ject of Co!!I?letion Remarks

III (o) Staatsmijnen - Cyclo- ~ 1/52 1/ trlf) ~ hex.anon Plant

III (p) Staatsmijnen - Capro- ~ 7 lactam Plant July 1/52 r

III (q) Staa.tsmijnen - Oxygas November 1/51

IV Mekog July 1952 The date of completion re-mains unchanged. !'o date $19,700 haTe been spent in U.S. Currency and Sviss Francs, this represent, 55~ of loan funds.

V Zoutindustrie October 1951 Date of completion vae or-iginall.y Februar,- 1951, postponed to August and nov to October. Postponement appears to be due to del,qa in delivery of machinery from SVitzerland. To date a total of $116,000 in U.S. currency and Svias francs have been spent , represent-ing 51% of loan funds.

VI Vondelingenplaat August Jl / 51 Date of completion remains unchanged. !o date $82,000 or J/4 of the loan funds have been spent.

X Stork Machinefabriek December 1952 In the previous report the scheduled date of completion of this project was given as December Jl, 1951. No co~

~ ments are given concerning the postponement of one year and it is suggested that Herstelbank be asked to com-ment.

XI Grofsmederij Completed

XII Neerlandia Completed

01363

Mr. Henry W. Riley

Symbol Number

XIV

XVI

xx

XXII

XXIII

XXVI

XXVIII

Name of Pro,1ect

Smit Nijmegen

Kon. Ned. Papierfabriek


Hollandse Textielindustrie

T. I.M.A.

Oosterveld

Nijverdal


December 1951

September 1951

December 1952

Completed

July 1951

October 1952

July 1951

Remarks

This project was original-ly scheduled for completi<Jl in June 1951. To date · $140,900 in U.S. dollars and Swiss Franca have been spent representing 93% of loan funds. It is suggested that ihe Herstelbanlt be aaked to COlllDent on the ~s postponeaent of the completion date.

The new buildings for the paper ma.chine and other machinery are completed and the paper machine is installed. The loan fund participation in this project is $116,300 out of a total of estilllflted investment of $1 .4 m. To date $86,000 loan funds have been expended.

Loan funds are e:zpected to represent about 10% of the total investment in this project. To date $112,500

in U.S. dollars and Swiss Francs have been spent out of loan funds. This represents 74% of the funds allocated to this project.

The original date of completion was January 1951 postponed to September 1951 now advanced to July 1951. :Bank participation amounts to $10,000 of which $9,412 have been expended.

To date $145,00 in Swiss Franca have been expended. This represents 67'1, of the loan funds.

To date $67,400 out of $67,500 loan funds have been expended.

0136~


Group II Projects (13a.nk Participation more than $200,000)

I. Vereenigde Glasfabrieken.

The engineering part of this project is fully completed and all orders have been placed. The annealing system and the decorating installations have been delivered in full and the former is 68% in use. It is expected that it will be in full use in mid December 1951. The batchhouse and transport and production machinery are also expected to be in full use by mid December 1951. The decorating installations should start operating by mid January 1952. The original date of completion of this project had been set at mid September 1951. The postponement is due to unforeseen delays. Of the total investment of $821,000, $383,000 or 92% of loan allocation, represent loan funds (U.S. dollars and Swiss Francs). In addition it is expected that 614,0CX>in guilders will be invested in the new building.

Several photographs of the new plant are attached to this report.

III (h) Soda Plant.

The engineering work is scheduled for completion by December 1, 1951, one month later than foreseen three months 13€0. 6o% of the orders have been placed and JO% of the equipment have been received. It is expected that deliveries will be completed by June 1, 1952, and that the plant will be in full opera tion by January 1, 1953.

III (j) Coke Plant - Emma II

40~ of the engineering work is completed. It is estimated that this work will be finished on August 1, 1953. JO~ of the orders have been placed and 1oi of the equipment received. All deliveries should be completed by February l, 19.54. The plant is expected to be operating at half capacity by August 1, 1954 and at full capacity by December 1, 1954.


The engineering work is 99% completed and should be terminated on September 1, 1951. 96~ of the orders have been placed and 93% of the equipment bas been delivered. It is expected that deliveries will be completed by February 1, 1952, and that the plant will be 75% in use by April 1, 1952.

~ VIII Kemp,rche Zinkmaatschappij

All the orders have been placed and all deliveries with the exception of the valves and nozzles have been completed. It was expected that the deliveries for these last two items would be completed by August and July 1951 respectively. All the equipment is expected to be in full use by end of September 1951. Of the loan funds alloca ted to this project, $2.54,000, or 87%, have been expended..

01365

.. Mr. Henry W. Riley - .5 -

XIII Drake.

All the orders have been placed and considerable quantities of equipment have been delivered. The remaining equipment is scheduled for delivery between September 1951 and February 19.52. It is expected that all this equipment will be in use by June 1952. However, the fine wire drawing ma.chines which were delivered quite some time ago are not fully in use due to shortage of copper. This project was originally scheduled for completion by July 1951 , which means that because of late deliveries etc. it had to be postponed by nearly one year.

To date $141,JOO of loan funds have been expended, representing 7'11, of the funds allocated to this project.

XVIII Ten Cate

The engineering work for this project is progressing and is scheduled for completion by October 1951. Most orders have been placed and deliveries appear to be progressing satisfactorily. They are scheduled for completion by January 195'.3 . All the loan-fin.a.need machinery should be in use by February 195'.3. The winding and spinning departments are compl eted, the machinery i s being installed and partly in use. To date $1 ,450 , .500 U. S. dollars represent i ng 74% of the funds allocated to this project have been spent.

XIX Ba.mshoeve

All the enginee~ing work is completed and all the orders have been placed. Sizeable quantities of machinery have been delivered and have been put to use. The re!J\8.ining machinery is scheduled for delivery between December 1951 and December 1952. No estimates are given of the date when this additional machinery is expected to be in full operation.

As at July 1, $1'.35,'.300 in Swiss Francs and U. S. dollars have been expended. This represents about 20% of the funds allocated to this project .

In this report on this project, mention is made that , owing to a general b'l:cy'ers strike in the Netherlands, many manufacturers, especially in the textile branch, have financial difficulties and consequently this company are obliged to await until the beginning of 1952 before they will be able to order the rest of the planned investments. This appears to contradict the progress schedule which shows that all orders have already been placed. It may be remembered in this connection, that a t the time the loan was being negotiated mention was made that the Netherland Textil e Industry had already nearly reached its full capacity and that, therefore, the emphasis should be placed on other industrial sections of the Netherland econo~. Nevertheless, as a result of various changes in the list of goods the emphasis has shifted from general industry to the textile industry to the extent that projects of this type are allocated 46% of loan funds . It is suggested that the Loan Department be apprai sed of the comments made by this company and that the Herstelbank be asked to comment on the apparent discrepancy concerning the placing of orders.


Orders for sizeabl e quantities of equipment have been placed. However, ther e appears to be some doubt with regard to the estimated dates of delivery of some of the equipment. The project, nevertheless, is still expected to be completed by January 1952. To date $201,900 in Swiss France and U. S. dollar s have been spent representing J'.3% of the funds allocated to this project. OJ.3 6

Mr. Henry W. Riley -6 -

XXV De Schelde

The entire machinery for this plant is scheduled for delivery by September 1, 1951, and should be 1n full use by March 1952. The new building to house the machinery is nearly completed and a 50 ton crane which is necessary to handle this equipment is being installed. The founda.tiono for the hardening furnaces are completed and erection of the furnaces has been started. To date $144, 700 in Swiss Francs have been expended representing 41% of the funds allocated to this project.

XXIX Gelderman & Zonen

All orders have been placed and certain ma.chines have a.J.reaccy been delivered. and put into operation. The remaining machinery is scheduled for delivery in July 1951 and March 1952 and should be in full use by July 1952. Loan funds expenditures amount to $111, 000 in $Wiss Francs or 41% of the a.mount allocated to this project.

Action

It is suggested that the Herstelba.nk: be asked to comment on the postponement of the completion date of projects X, Stork Machinefabriek, and XIV, Smit Nijmegen, mentioned above and on the discrepancy concerning the placing of orders by ~shoeve, Project XIX above. The dra.ft of a letter to that effect is attached for consideration.

(\ ~· Mr. FaJane

\, "-4 \ iro I tcf

\

0136

. \ INTERNATIONAL BANK FC" RECONSTRUCTION AND DEVEL(. . .1ENT

8/27

Mr. Cope:

As Mr. Iliff says, this might be a good case to include under the unfilled portion of the Herstelbank loan. I happen to know that the Herstelbank still has some difficulty in finding suitable projects to substitute for projects which are being cancelled by some of the Herstelbank's clients, or are about to be cancelled.

W.K.

,. ~,

INTERNATIONAL BANK FOR

RECONSTRUCTION AND D E VELOPMENT

OFFI CE OF

DIRECTOR OF MARKETI NG

Mr. W. A. B. Iliff International Bank for Reconstruction

and Development Washington 25, D. C.

Dear Bill:

WASI-IINGTON 25,0. C

1818 H STREET, NW

33 LmERTY S TREET NEW YOR X 5,N.Y.

August 22, 1951

A Mr. Walter Rinck of the Industrial Plants Corporation, 90 West Broadway, New York City, called today to see if there would be any chance of securing a loan from the Bank for a shipyard being constructed in Holland by a group of builders and repairmen. This man is an agent for various Dutch yards and was called upon by the engineers working on the new plant to see what financing possibilities existed here.

They expect the yard will cost something over two million guilders and the local municipal government has subscribed for fifty per cent. They will need a portion of the remainder in dollar s for basic equipment. He thinks this amount will probably not run over $150,000 to $200,000 .

I told him that before we would be in a position to consider anything we would require an application or at least a rather definite indication from the Dutch government covering the loan and also their agreement to supply their guaranty. I also indicated that for the amount invol ved i t would not be feasible to proceed. I told him that I would pass the information along to you and if it was something that you would like to explore further, be would hear , either direct from you or I would pass your message along to him.

q

<.. ~ ,,, r

C.

..

/ Letter Ho. EU/553

letherlands Embassy 1470 Euclid Street, N.W. WashingtOn 9, D.C.

Gentlemen:

August 17, 1951

Attention: Mr. L.R,w, S9utendUk

We acknovledge with thanks receipt. of your letter reference FA/1814 of

August 15, vith which you enclosed two .copies each of the progress reports

~ as or June .30, 1951, covering the Herstelbank projects.

"j ~ Ver7 truly yours

S. Aldewareld

PT

OFFICE OF FINANCIAL COUNSE LOR

NETHERLANDS EMBASSY

WASHINGTON 9, D . C.

1470 EUCLID STREET, N , W .

TEL. ADAMS 1882

CABLES: NETHERFIN

FA/1814 August 15, 1951

Mr. S. Aldewereld Assistant to the Treasurer I nternational Bank for Reconstruction

and Development 1818 H Street, N. w. Washington, D. C.

Re : Loan No. IB-15-NE

Dear Mr. Aldewerelds

I am enclosing herewith, in duplicate, End-Use Reports as of June 1951 for the following projects :

.,, I. , III.

IV• v.

VI. ,., VIII.

x. ,., XIII.

XIV • XVI.

XVIII . / XIX.

xx. , XXI.

XXIII . /ID . XXVI.

XXVIII. , XXIX.

Encl.

Vereenigde Glasfabrieken Staatsmijnen Mekog Kon. Ned. Zoutindustrie Vondelingenplaat Kempensche Zink Mij Stork Ma.chinefabriek Draka Smit Nijmegen Kon. Ned. Papierfabriek Ten Cate Bamshoeve de Wit ' s Textielnijverbeid Stork Weefgoederenfabriek T.I.M • .A. de Schelde Oosterveld

""' .,,,t-2 I Te Nijverdal Gelderman.

'f b . ///

Very truly yours, (' If

L . R,{>i~~ \ ~ 6 Financial. Counselor ~

FORM No . 57 (5. 48 l INTERN Al lONP ~ANK FOR RECONSTRUCTION AND nr:VELOPMENT

!-/M 7T.;L, fa . d ~

OFFICE MEMORANDUM TO: !as Virginia orsey, ~ al Department

FROM: llen • ttillcr, s~crot~p:irtment

SUBJECT: Loan to l e?'S-Gclh .. =ik - l'o . 1!i .E - .......... -.-

J

DA TE: Au st 8 .J l 9Sl

to tho

reviScd Sch tU of !l:'J:oj et.a and Liot oi' Goodn rt1nent to t..he c.apt,io

toan Acr e nt • (Re . • J Ct101"l\ndum llf Jnly J.6, 1951)

cc, 1· . ~\o!'..aug'b, roacurw.·•e De~ --;) fi1r • ljM J Loan Depa:rt.ment

Secrotary'o Archives

Virginia orsey

1-to1•nto lbunk Loan - - Loan to . 15 1E

/1,L

August 7 , 1951

Attachod tor ~~ocrotory•e llrc>ivoo io oopy of lotter dotod Auguse 2 , 1951, concorni u corrootion in the schodulc or projocto for the Hers elbank loan. ill you pleuso furntsh photoatut1c coplos or tho attachment as !'ollows:

Attachmont li

Troaeurer•o Dept. (fir . Cavanaugh)

Loan Department (t!r . Pajans)

Legal Dopartmant ("1ss 'orsey) 1

cc - Mr . Cavanaugh t'r . Fo. jans Legal Fi l e s C & R

VY.orsoy:dg Aug. 7/51

j~/J/£ 0

F. /l.692

Mr. J . ajana Asaintnnt LOan Officer Internat1on'1l Bank tor Reconatructlon and Developi:1ent 1818 H StrBot, N.t .

o. hington, D.c.

uguat 2 ., 1951

Rea toan I B •l5•liE. -~-----~-~---.... ~---

:

Und r date of July 6, 1951 you returned to •, duly contirlnod by tho Banlc, thrf>e copies each of the re•

vi d Sch dule or itrojeots Lit of Gooda pert1n nt to tho caption d Loan Agreem nt . These dooumenta had ~en tranamittod to you 1th ~y lettor FA/1440 of July 20., 1051.

(. Rev rt1ng to the Snhedul.e of Projects, I wiah ~ to ciro.v your tt nt1on o t tnot t tint e description of ~ p:ro joct XVI typogr phic l e1~r waa mad• in the aentence 1 ~ Paper couting machines will nlao be 4cquired. " Thia waa sub

sequently correct d to :re d1 n Pap 1~ coc.t1&f machines will alao b acqw.r d." i'h Borrower no observe• t t the sentence should re da II Po.p r counting machlnea "111 nlao be acquired. •

' Even though th1o may nppear to be a typographical error only, it 1a of a nature which d.ght 1vo r1ae to compl1oat• ions nt a later date. ~herofore, I oUld approciate your making the nocessnry corroetions 1n your co1>1 s ot tho &ch dule .

three of th by tho Bank.

Porhaps you will b kind enough to return to me ttach d four cop1 ~ or this lotter duly confirmed

oted e.nd ApproTed: Internation~l :Bank tor

:Reconstruction n.nd DeT lop n\

~1--~~~~---~~~.,__~-Encl.D. AD :dv

Very truly :,oura.,

• I

• D. oudhuyaon, Aast .F1nanc1al Attaohe.

1

NETHERLANDS EMBASSY

WASHINGTON 9 , D. C.

Ol'PtCa OP "'NANCIAL COUNaaLOII

Mr. J. Fajans Assistant Loan Officer International Bank for Reconstruction and Development 1818 H Street, N.w. Washington, D.c.

\

Res Loan I B -15-NE.

Dear Mr . Fajans:

c.,

•- icu•-. &W, nih •. A--·-CA lae, NST-r•

Under date of July 5 , 1951 you returned to me , duly confirmed by t he Bank, three copies each of the re- _.----_ vi sed Schedule of Projects and List of Goods pert i nt ..to t he captioned Loan Agreement . These documcr-ts ~~ en transmitted to you with my letter FA/1440 of July 215, 1g51.

Reverting to t he Sc 11C' dule of Projects , I wish t o draw your e.ttention t o t h e fac t t hat i n t ne description of pr oject XVI a t ypographical error was made in t 1e sentence : "Paper couting machines will also be a cquired." ~his was s ubsequently corrected to read :- "Paper coatir.~ machine s will also be acqui red." The Borrower now observes t hat t he se ~ter.ce should read: " Paper counting machines will ulso be a cquir e •"

Even t hough t.his may appear to be a t.}}.>Obrophical erro1· only, it is of o. nature which mi[;h t elv •_; rise to co1·1pl1cati ons at a l ater date • Ther e f ore , I would a pp rec lo. te your me_'.-<ing t he :1.ecessary correctiors ln your copies of the S c. 1c,1u_ e .

Perhaps you wi ll be kind enough to return t o me three of t he a tto.ched f our copies of t h is letter d y cor.f lrrr.ed by tL1e Bank.

-·--------------~~-----•• Encl.

Very truly yours ,

A. D. Woudhuyse Asst.Financial

Folder Title: Chemical Textile Project - Netherlands - Loan 0015

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