Vietnam - IBRD / IDA Programs / Missions - Public Documents

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Folder Title: Vietnam - IBRD / IDA Programs / Missions - 1975 / 1977 Correspondence - Volume 1

Folder ID: 1387878

Dates: 7/24/1974 – 3/15/1977

Fonds: Records of the East Asia and Pacific Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA EAP

Digitized: 11/15/2019

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THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org

PUBLIC DISCLOSURE AUTHORIZED

1975/77 VIET NAM - IBRD/IDA Programs/Missions _

Vol. I

,

Arch.ives 1 11111111111 111 11 11111 II II 1111 11 111111111 1 ii 1111 11

1387878

A 1994-021 Other#: 259 1915729

Vietnam - IBRD / IDA Programs/ Missions- 1975 / 1977 Correspondence -Volume 1

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DECLASSIFIED

WITH RESTRICTIONS WBO Archives

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II I I I

FORM NO. 635

(7-74)

Thisfileisclosedasof J/ IIA /971 For further correspondence, please see t1:JLL 1/, F

RECORDS MANAGEMENT SECTION

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Mr. Gregory B. Votaw, Director, AEADR

L E.K. Hawkins, Senior Economist, AEADR

March 15, 19 77

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VIET NAM ""•

1. I wish to report the content of two telephone calls that I have bad today on the subject of IDA credita to Viet Nam. The first was from the Technical Assistant to the us. txecutive Director, and the second was from Mr. B. Zinman, of the US Treasury~ Both were on the same subject, which was the report in the Washington Post, under Mr. Hobart Rowen's dateline, that IDA was considering a credit to Viet Nam of between $200 to $300 million. You will recall that this part of the report was attributed to an "unnamed Bank official." The purpose of the telephone calls was to establish whether there was any factual basis for this figure. It appears that it had been picked up and used ill briefings in Washington prior to the departure of the US Presidential Commission to Viet Nam, led by Mr. Leonard Woodcock. I infortlled both callers that there was no basis for the figure quoted in the Washington Poet. I further added that until the IDA replenishment discussions were completed ~ there could be no such country allocation. Furthermore, since we had yet to identify and appraise particular projects in Viet Nam, we could not know the likely size of any lending program to that country.

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SUBJECT:

WORLD BANK/ INTERNATIONAL FINANC E CORPORATION

Mr. Gregory

Timetable for ~reparation of the Viet Nam Report

1. In accordance with your request, I give below a proposed timetable for the preparation of the above report. You will see that it fits the proposals made in Mr. Husain's memorandum to Mr . Knapp of February 28.

· Return of Mission 22 February

Debriefing, statement to the Board, etc., preparation of Project memoranda 22 ~ebruary - 4 March

Report drafting 7 March - mid-April

Review process, revision of draft and transmit to Govern-ment by 27 May (allow four weeks for

Discussions with Government probably not before week beginning

Revise and prepare grey cover by

Government to review)

20 June (7-10 days in field)

29 July

In order to transmit the report to the Government by the middle of May it will be necessary to reduce the normal period we would allow for the review of the white and yellow covers. I have not proposed a detailed timetable for the review process but it is clear that we will have to merge the white and yellow cover stages and possibly consider sending a yellow cover version to the Government.

2. On this timetable it would just be possible to provide Mr. Husain with a copy of the first draft as a briefing paper for his visit to the ADB Annual Meeting, April 21-23. I would not be in favor of his giving that copy to the Viet Nam delegation, since we would not have had time to review it. Subject to what he may feel about this, I suggest that we plan in terms of providing him with a first draft of the summary and conclusions. For the moment , however, I would like to concentrate on drafting the report itself and not take time out to produce additional notes for briefing purposes. Perhaps we can discuss this again nearer to the time of Mr. Husain's visit? In any case, I do not think that it will be possible to provide him with anything meaningful by the time he leaves the Bank on March 26; we will have to arrange to send material to him·in the field.

cc: Messrs. Hasan, Gibbs, Lim, Thias, Delon, Moulin

EKHawkins:go

WORLD BANK / INTERNATIONAL FINANC E. CORPORATI ON

OFFICE MEMORANDUM TO: Gregory B. Vota~/~,,J.__

FROM : E. K. Hawk.ins ~

SUBJECT: viet Nam - UNDP

1. This afternoon I met briefly with:

DATE : Mar~h 4, 1

1/£1 )/(l_l)J n

Mr. J. Kamp - Asia Officer, UNDP (New York) for Viet Nam Mr. F. Hartvelt - Deputy Representative Designate, Laos

and Viet Nam.

I . briefed them on the impressions of the recent mission and heard from them of their own mission activities . They stated that the most recent visits (of which you are aware) were to negotiate agreements for groundwater surveys, throughout the country , and, feasibility studies for what were described as "small hydraulic works".

2. We agreed that there was a need for close coordination between the Bank and UNDP, especially in view of the tendency of the government to deal with the two agencies through different ministries.

cc: Messrs. V. Riley, Gibbs.

EKHawkins :jd

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TO: Mr. Nick Gibt FROM: Gregory ~2il

WORLD BAl'K; rNrfRNA1IONAL FINANCE coRPOR~,TION .1 ) / .. .' ' ~: / · · . t1 I /;[1} J · (_ l 11 J/ OFFICE MEfv'!ORANDU "' 11 ))J. I/ , L 1 1:·

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e~ f · ·(fJtU SUBJECT: Viet Nam: Asian Developn~nt Bank

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1. Since Ted decided not to stop in Manila, I phoned David Fisher from Tokyo as the most practical quick way I could think of · to coi:;ipare notes between ADil and ourselves. The following arc the major points on Viet Nam emerging from that conversation.

2. The ADB mission is preparing a back-to-office report; it is due about now, and Fisher may be able to send us.a copy shortly.

3. Data are scarce but some were provic.led to ADB's mission at the airport departure lounge. ADB staff hypothesizes that Hanoi did not wish the two missions to compare notes, but I doubt this (it is equally plausible that som~ ADE staff have their o,;,m hang-ups about 11 coordinat ion11

and 11project11 their own feelings on t he Vietnamese in order to find "sorr:e reason11 for data scarcities). ADB is hoping to find an ccononis t with experience in analysing socialist economics for the ir permanent staff .

4. As you knew, Noorzoy's mission made progress in reactivating loans a already approved by ADB; at least one will require a major adjust~2nt in project content (e.g., improve telecor..reunicstions in Hanoi instead of Ilo Chi 11inhCity) and thus rc.:: ppraisal cL.'1d Board reconsiderat ion 2re necessary. Although the Vietnar.:cse did not fully understand i:,plications of ADD project docu~entation, they app eo.::i.r to be learning quic:~ly and Noorzoy found their attitude is generally 11 cooperative and flc):ible . " Ar., ADB Jl'..anagement decision on the reactiva tion of projects will be made as soon c:s possible. (:t-fy personal bet is that ADE will want to have those old loans reactivated before their Annual Neeting, April 21- 23 ) .

5. As far as new projects are concerned, ADB has very serious problc~r1s because of d'e-:iay in r ep lenish:i.ng its soft funds ; it appears thnt the US.\.. is holding up the whole exercise f or reasons that have little to do ,.Jith Viet Nam. Soft lending of $250-300 million had been planned for 1977 and some.thing of that order of r.cagnitude may s t ill be achieved eventually through extensive use of co-finnncing; meanwhile , houcver, much titr.e is being lost in renegotiation anong donors to arrange interim financing (s ounds familiar!)

6. I r eported to Fisher t~e Vietnamese had t old us they hope d for substantial additional ADB financ:i.ng for fisheries development . He was not surprised but had no clear idea what T,rnuld be presented or uhen it mi[;h t be processed. Viet Nam hnd asked ADD to ~ive priority to irrir,nticn , especially second and third st.1ses of Co Cong ci.nd Khan Ahn in the Nekon g Delta and Bin Dihn in the North (spelling unccrta:i.n! ) . Viet Nam is " very keen'' to reactivate ADB involvc~ent in the expansion of rubber production , fo r which a feasibility study had been completed by ADi3 a fc,v yc.:: r s back and will now be dusted off . Similarly, they asked ADB t o assist in studies

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to plan, engineer and organize financing for a fertilizer manufacturing plant, perhaps in cooperation with ID1\, The initial question there is feedstock, given good prospects for domestic oil and natural gns production as well as more imrr.ediate plc:.ns for a refinery (East Bloc financed?), which might make n3phthc1. economical. The government clearly

. indicated c1 desire for ADE to continue and enlarge its assfatance in telecommunicationr:. Electric power was also stressed, both generation (a fizurc of 160 }'.'..] was mentionc.:d) c1nd transmission/distribution systerr.s for "area developc:ent 11 and to i1:2prove service around llo Chi Hinh City. including nearly New Economic Zones. The ADB had the iqression that the transmission grid was being coreplcted in the South, liP..:.:ing Can To and Mi Tuh (?), with the assistance of French , Australian and perhaps other external financing . I am u:ore and Dore convinced we need a thorough on-site review and eventually a 5-10 year Easter Plan, indicating

. various assumed and prospective streams of external assistance to sort out various bi ts of sketchy infon:ation in the pm,;rer field . Nothing specific had been mentioned to ADB regarding raih,avs, but the Vietnamese had indicated a general interest in getting ADB involved in that sector eventually. Coal mining was not proposed to ADB .

7. Noorzoy was hoping to meet you in Bangkok the week of February 28, and you should learn a lot more as a r esul t of that contact.

8. My tenta tive conclusions are as follows :

( a ) IDA has the only firm request for assistance in developing exports from northern coal vin2s , subject only to bilateral aid which may be offered on an ad hoc basis .

(b)

(c)

. · (d)

(e)

Government priority for irrir;ation developr:ent in the Hekong Delta is verified repeatedly and is consistent with our own judgment and that of Dany other outsiders . There is plenty of room for complementary action by both ADB and IDA •

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·'The pm-,er sector deserves ur gen t objective appraisal to see who should plan to do what and when, especially in the south. Let' s plan to talk to ADB's representatives at the Paris CG meeti n g on Thailand, to see if we can coordinate on this without offending Viet Ram; t hen perhaps Husain can 1::ake whatever proposal is appropriate from IDA ~:hen he meets the Vietnamese delegation at the ADE meeting in Manila, April 21-23 •

Fisheries develop ment should not bi allowed to wait too long. If ADB cannot expand in th is area soon, some other source of assistance should be found to cater to the sector's most urgent needs.

We should evaluate ADB 's and any other old rubber feasibility studies to see what updating is needed and if there is a role for IDA •

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( f ) We seem to have first responsibility for assessing needs • in the railway sector and perhaps for the transport sector a s a whole so that international assistance can contribute· t o a properly balanced proeram.

(g) ADB is handling telE>corrHnunications needs.

(h) We should decide soon whether or not to offer Viet Nam I DA leadership in studying plans for fertilizer manufacturing and offering to organize financing for it.

9. . I wi ll count on you to follow up on the ~B prograr!l and points of · . i ntersection with ours; we need to improve our information base and keep currently posted in changes and other develop1J;ents in the 11 division of labor" between ADE and ourselves. I believe you will also find it useful to have our lawyers consult with theirs regarding "borrowing authority" legislation and similar matters. Thanks.

cc : Mess r s : Kirmani , Hawkins, Ruffini, Lim

GVotaw:dis

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0 START HERE

TO

CITY/

FORM NO . 27 (10-76)

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) PORTANT (PLEASE READ INSTRUCTIONS BELOW BEFOQ Y NG FORM.I

Class of Serv ce : _ Te L e X --------- Date Feb r u a 2 8_, 19]7 Telex No. __ _ Orig, t E 21 Q 3 ---------

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MESSAGE L. NO.: 1

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21 END OF

,-.......~- ------------FOR BANETH FOR YOUR PERSONAL INFORMATION HAWKINS TEAM

LAST WEEK AFTER CORDIAL INFORMATIVE INDOCHINA VISITS

REAFFIRMED INTEREST IN IDA ASSISTANCE WHICH MAY INITI

MEKONG IRRIGATION, NORTHERN COALMINING AND RAILWAY EQ

MANUFACTURING STOP CURRENTLY WORKING OUT SCHEDULE FOR

MEMORANDUM AND PROJECT PREPARATION STOP I WOULD HOPE

EYE RETURNED

VIETNAM

FINANCE

MORE

DETAILS AND OBTAIN YOUR ADVICE WHEN YOU ARE NEXT SHINGTON WHICH

HUSAIN SAYS COULD BE SHORTLY STOP MEANWHILE WILL NOTES

PARA LAOS PROJECT ALSO PROCEEDING STEADILY STOP GRAY EAM IN VIE NT AINE

LAST WEEK TO COMPLETE FIELD WORK STOP GORJESTANI VERY

HIDESHIMA DURING TALKS IN TOKYO AND EYE AM CONFIDENT HAT DESPITE ITS

LIMITATIONS OKHAMA REPORT WILL HELP BOTH GOVERNMENT AD DONORS STOP

FINAL TEXT NOW DUE LATE APRIL AND CG POSSIBLE WITHIN IX MONTHS BEST

REGARDS VOTAW

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NO SUBJECT TED BY

Gregory B. Votaw AUTHORIZED BY \ /-r:--G re ory,__.:__:__z_-=:~ :....L--=l--=-=ec....:;,.c~t\J-=--=

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CLEARANCES AND COPY DISTRIBUTION .

DISTRIBUTION WHITE Fole Copy WHITE Bill Copy BLUE Originator to Keep

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t< From: Bangkok 1977 FED 18 i .. 1 7: t; 7

[• r.: r··1 r·· '·, , ) \ l-LI i. ·. I.. ) • • -

ain Mr. rmani Mr. P. Hasan Mr. Ruddy Mr. Loos Mr. Hawkins

FC:B 18 , 1977 01" ' I 11 1' ' i' \!'; '.' , · C Ji·i~d.) .. , .... ,.~ .. , ... ,. Mr. Votaw 's office Ir. Gibbs

SIX FOR SHAHID HUSA I N COPIES KIR M1\N I , HASAN, RUDD Y , LOOS,

U F F I I A N D CO N R E T U R N ) H A '!Ji( I N S

THIS MY Fl ST CHA1 CE TO REPORT ON VERY CO RD IAL RECEPTION

ECO MIC MISSI01 , GI BBS AND EYE RECEIVED I N VI ETNA M. MISSION

T AVELLED EXTENSIVEL Y NORTH AND SOUTH , VISITI NG MA JO R

CITIES, DEVELOP ME T S IT ES AND SO ME PROSP ECTIV~ PROJC:CT LOC ATIO NS .

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T -:A VELLl t G THROUGH ED RIVER DE L TA TO HAIPHONG ANO NEARBY

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ES O UR CE E ~DO w MEN T E XCEL LENT • ALT HO U G H I MME I A TE F O RE I G

EXCHA1 GE NEED S ACUTE , 1977 INVEST MENT PLAN RES TRA I NED ,

PhOBABLY SEVERELY , o Y Ll ~1'. ITEO RESOURCE AVAILABILITY .

DESP IT E SELF - HE LP RHETORIC TH ERE IS PATE NT KEE I TERES

I N EAR LY I DA F I NANC I NG FOR EQUI PME1 T TO EXPEDIT E KEY

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~· .~.,,.. COUNTRY BRIEF FOR

SOCIALIST REPUBLIC OF VIET 11AM

1. FY77 Lending Prosram:

No 1 nding op~rations to in th of an identify activitie suitable

2. Rec nt/Upcoming Event : · · ·.J

In September 1976, the Soci iist Republic of South Viet Nam succe d d to the membership of the former Republic of South Viet N in the nk and IDA ( e Annex I or Mr. McNamara's r port on th subject to the Ex cutive Directors}. The last economic report on the Republic of South Viet Nam ( ntitled "Report of n Economic Reconnai eance Mission to the Republic of South Viet Nam") was i sued on September 28, 1973. Another mis ion visit d South Viet Nam 1n March 1975 1 but a final r port of its findings <was not 1 au d du to the political events of S.pring 1975. An conomic mission is in the field at present and its report will be is u d n t Summer (mission's Terms of Ref rence 1 in Annex II) • Mr. McN mara ha agr ed that preliminary r port will b given to the Executiv Directors hortly after the mission's return •

3. IBRD Management Attitudes:

4. Main Contact: .. ... - . ·-

_,_ ,. r H.E. Tran Duong, Vic Minister, Stat

graphic 1 data on him appears in Annex III).

5. Upcoming Country Events: -....

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) the Viet Nam se Government plane to introduce a foreign inv tment law presently. According to IMil''s recent report, this law would allow joint ventures with 49 p rcent foreign participation and eventually up to 100 percent p rticipation in the case of projects geared to exports;

b) IMF i planning rticle XIV consultation discussions in mid-1977.

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is apparently not powerful in the ruling party heirarehy. His Minister (R.E. Nouhak Phoumaavanh), however, is, reported to rank second 1n the party.

6. Upcoming Country Events:

&) Lao Government plans a major restructuring of the organization of production along socialist lines; establishment of cooperatives, atate fal'IJl8, and a state marketing system; nationalization of induatr1u; preparation of the budget and the First Annual Development Plan.

b) Following Votaw and Gibb•' via1t on 7-9 February, IDA plans: a mission later in Pebruary to discuaa the draft appraiaal report of the ARDC with the Govermmlnt and to collect additioual information on

and an economic miaaion in October-Noveaber 1977.

c) Final project identification report of a UNDP/ADB sponaored technical assistance team is expected in February.

7. Economic Policy Issues:

Fiscal and monetary management, pricing policJ.es, the exchange rate and export promotion.

8. Other Major CoQCerna:

I I I ,

Government has thus far been reluctant to releue information on the economy, and we know very little about the f18cal and monetary situation and the level and type of external aid flows, particularly from the socialist countries. The authoritiu have indicated that these subjects are clusified. Thus far, we have taken a low key approach to this problem and have proceeded with the proceaeing of project documents while renewing our request for more information; however, during Votaw'e visit in February we propose to insiet on obtaining basic informa on the budget and foreign aid flows before presenting the proposed ARDC Project to the Board.

t -J • ..'.• I ,.. •

FORM NO. 2 7 (11 -75 )

TO: MR. TRAN DUONG

VIETBANK

HANOI

!iii Ir /J ) :I uY!c, c1JC WORLD BANK/ IFC /~ ) 0 IBRD

OUTGOING MESSAGE FORM (/ 0 IDA OIFC

0 ICSID (TE LE GRAM /CABLE/TELEX)

COUNTRY: VIET NAM

DATE: JANUARY 25, 1977

ORIGINATOR'S EXT.: 3571 t71 /2. (./(1-

CLASS OF

CABLE NO. & TEXT:

REF EA ENCE:

DRA FTED BY:

SE RVICE: TELEX

REURCAB JANUARY 22 .

AAA BECAUSE OF OTHER COMMITMENT IMPOSSIBLE FOR ME TO LEAVE WASHINGTON

BEFORE FEBRUARY 2. HENCE EARLIEST I CAN ARRIVE VIENTIANE WILL BE

FEBRUARY 6. UNDERSTAND AIR VIET NAM HAS FLIGHT SCHEDULED DEPART

VIENTIANE FEBRUARY 8 AT 1500 HRS ARRIVING HANOI 1610 HOURS. GIBBS

AND I WILL PLAN TAKE AIR VIET NAM FLIGHT FEBRUARY 8 TO HANOI AND WOULD

BE GRATEFUL IF YOU CAN CONFIRM FLIGHT IS SCHEDULED THAT DAY AND CAN

CONFIRM TWO SEATS FOR US. ALSO WOULD BE GRATEFUL FOR YOUR CONFIRMATION

THAT VISAS WILL BE ISSUED TO BOTH GIBBS AND ME BY YOUR EMBASSY IN

VIENTIANE ON FEBRUARY 7.

BBB WE WILL PLAN TO END OUR WORK BY FEBRUARY 15 AS YOU SUGGEST AND WOULD

BE GRATEFUL IF YOU COULD KINDLY ARRANGE SCHEDULE OF DISCUSSIONS AND VISITS

ACCORDINGLY.

Viet Nam

NAGibbs/dat

REGARDS

VOTAW

NOT TO BE TRANSMITTED AUTHORIZED BY (Name) :

Mr . Gregory B. Votaw, Director, DEPARTMENT: East Asia &

CLEARANCES A ND COPY DISTR IBUT ION:

cc: Messrs. Bell (thru Ruddy), Kirmani

PIN K - File Copy; WHITE • Transmittal Copy; YELLOW - Bill Copy

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January 24, 19 77

Gregory B.

·- VIET NAM: Composition of Economic

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. ' 1. lff!of~~RR!~~ss1on currently in Viet Na Hawkins,/irograms neparimAnt, East Asia nd Pacific

2. 0th r mbere of the mis ion are: t.

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r . a) Mr. Edward Lim, senior country economist. Thailand-Indochina Division, Programs Department, EAP Region; . ...._ .!

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b) cro- conomi t, ducation • . • L ·...,._

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... Mr. Hans Thias, senior Division, EAP Region;

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Mr. Andre Delon, agricultural economist, Food and Agriculture Organization, World Bank Cooperati Program staff; and

Mr. Paul Moulin, research assistant, Programs Department. EAP egion.

·- !;I: ,I ' ' • • 3. Mr . Nicholas Gibbs (Division Chief, Programs Department, EAP

I

Region) and I will join the Hawkins team around February 9 to participate in their final discussions.

FORM NO. 89 (2-*) • RECONSTRUCT ION AND

INT ERNAT ION AL DEVELOPMENT • ASSOC IATI ON

xx

Approval

omment

t-u 11 Report

Information

Initial

Remarks

Note and File

Note and Return Prepare Reply

Per Our Conversation

Recommend at ion

Signature

Send On

, 4

,.

l='E B 2 3 REC'D

united nations educational, scientific and cultural organization organisation des nations unies pour !'education, la science et la culture

(}(f_/ /XJ.IL /~ ~112 7, place de Fontenoy, 75700 Paris

The Director-General

Reference: DG/7. 7 /76807

- 9. '=E V. 1977

Dear Mr. McNamara,

/ I should like to thank you for your letter of 12 January 1977 by which I was pleased to learn of the scheduled arrival in Hanoi of a Bank economic mission for the purpose of identifying areas in which the Bank's assistance could be effectively used in Viet Nam.

I would also like to thank you for drawing the Chief of Mission's attention to the country's specific needs in this respect, as communicated to me by its delegation.

May I add that I would very much appreciate receiving a copy of the report of this mission so as to be able to take into account its recommendations in planning Unesco's activities in the Socialist Republic of Viet Nam.

Mr. Robert S. MCNAMARA President World Bank 1818 H Street Washington D.C. 20431

Yours sincerely,

Amadou-Mahtar M1 Bow

l

l l

Record Removal Notice File Title

Vietnam - IBRD / IDA Programs I Missions - 1975 I 1977 Correspondence - Volume I

Document Date

19 January, 1977

Correspondents / Participants To: Mr. Tran Duong, VIETBANK From: N. A. Gibbs, Division Chief

Subject / Title 1977 Viet Nam Economic Mission

Exception(s) Personal Information

Additional Comments

Document Type

Outgoing (Telegram/Cableff elex)

The World Bank Group

Archives & Records Management

Barcode No.

1387878

The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group.

Withdrawn by

Sherrine M. Thompson

Date

November 15, 2019

Archives 01 (March 2017)


Vietnam - IBRD / IDA Programs/ Missions - 1975 / 1977 Correspondence - Volume 1

Document Date

19 January, 1977

Correspondents / Participants To: Edward Jawkins From: N. A. Gibbs, Division Chief

Subject/ Title 1977 Viet Nam Economic Mission


Additional Comments

Document Type

Outgoing (Telegram/Cable/Telex)



Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


J A ~I ?i 1 77

Dear Ur. M'Bowz

I thank you f or your letter of December 15 , 1976 expressing the hope that the World Bank will be able to extend assistance t o the Socialist Republic of Viet Nam.

TI1e Board of Executive Directors of tha Bank at a meeting on September 21, 1976, as you may know, r ecognized the membership of the unified Viet Nam ao a continuation o f the membership which South Viet Nam had held since 1956. Subsequently early in October during the annual mee ting of the Bank' s Board of Governors in llanila, the Dele3ation fron the Socialist Republic of Viet Ham, in discussions with our staff , expressed their desire for assis tance from the Bank, and it waa agreed t hat as a first step a Bank economic mission should visit Viet Nam in January 1977. Arrangements for the miosion hnve now boeu confi rmed , and it 1a scheduled to arrive in Hanoi on 3anuary 10 , 1977.

The miss ion ' s task is to enlarae our pr esent totally inadequate knowlc<l s,c and understanding of the economic situa tion, problems , needs, and prospects of Viet N and to tha extent possible i dentify areas i n which Bank assistance would be hel pful and could bo effecti vely used . In t his connection, I have drawn the attention of the Chief of MiGsion , Mr . Edward Hawkins , to your l e tter and the specific needs which were i ndicated to you by t he Viet Nam delegation.

Once again, I appreciate your writing to me bout the matter and I hope you and your ataff will not hesitate to convey any further information and views you have.

?Ir . Amadou-H.al1 tar M' Bow Direct or General United Nations Educational, Scientific:

111 r,,1 tt rol Orp:on11:ntlon f I

Sincerely,

~ignc ) r ···~r I·' . '

Roberts . McNamara

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, the World Bank will be able to. at• · uat.atanee to the Socialiat the hope that lie of1 · . ·• Viet • · " 1 r ;'-

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quently qrly in October uring t • anDMl wtiDg of th• Bank'• rd of Governor• •, -1 in Manila, th• l>elegartoa froa • Socialist I.a lie: of Viet -, 1n diacuaiou.a _.. 1 "lfith our ataff, expreuecl their duira fol:' ... 1.~ from the Bank, md it vu 1~ -/'. ... •

reed t t a fint step • ant econoaic aiJtaion ahould visit Viet • in ; .... •11., ,. Jan ry 1977. Arr 81181:lta for t m. .. ion hav ftOV been confiraed, and it f.a .a ..-,;:··,, '

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acheduled t<> ~ift ill Baoi .Jaaury 18, 1977. 1-: -.- • ..... it. ;,._ ~ ,'? ~ V: ~ • • I •

'1'he1 11iaaion'a taak 18 to ealarge our r t totally 1: a eq te know-eratanding of the -.oa..ic •itution, probl-, aaeda, ad prospecta

of Viet am and to th at.eut poui'ble identify •nu ill which Bank u•iatance l be lpf l and could be dfec.ti.ftly Nd. Ia thia connection, I haft, drawn ·

the attention of the Chief f Mluioa, Mr. ldward Jlavldna, to yoer letCeT and th• aped.fie needs wllich were 1ndieat to y011 by the Viet delegation. ! ~

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<-Once again, 1 appreciate your writing to• about the MtUr md I hope yo ... your staff will not heai.tat• to convey eny f rther illforwation and riewa :r· ll'".

Yot& have. _ . # 1 .N • 4 .ti

. . Sincerely, ... -

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ited tio-u &:lucational, Scientific and c.ltural Orgaai&at-1.oa

7, place 4a Foatenoy 75700 Part.a

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Mr. Gregory B. Votaw (r:7 Bernard R. Bell ~ ~\

Economic Mission to Viet

January 11, 1977

At the Board meeting of Tuesday, January 11, at the point

where the Chairman asked if there were any questions with regard

to the semi-monthly report op operations, the German ED's chair,

noting the economic mission had left for Viet Nam , asked whether

the Board could promptly on its return be informed of the

of the mission. Mr. McNamara said that a report would be given

to the Board and asked me to see that this was done. Obviously,

--1/1 what is required is not ,a... full report which t he mission will

prepare, but a back-to-office report on the main findings and

observations, delivered to the Board quite promptly after the

mission has returned. I bequeath this task to you.

I

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Mr. E.K. Hawkins, Senior Economist, EA&P Programs

Gregory B. Votaw, Director, EA&P Programs

VIET NAM - Terms of Reference

1 V

January 10, 1977

1. On or about January 16, 1977, you should lead a mission to Viet Nam to collect the information necessary to prepare a report on the country's economic ituation. The mission should also identify possible areas for IDA lending operations. The mission will consist of yourself, Edwin Lim, Hans Thiaa, C. Paul Moulin and Andre Delon (F.AO./IBRD Cooperative Program).

2. While the mission is expected to cover the topics normally dealt with in an economic report, they should lay most emphasis on a description of the present structure of the economy and its organization, taking due account of the remaining differences between the northern and southern parts of the country. While the present special circUlll8tances of the country should be given due weight, the emphasis should be upon the prospects for rapid reconstruction and subsequent economic development.

3. Specifically, the following areas should be covered:

(a) Current economic situation, including the distribution of the population; structure of the major productive sectors; conditions of transport and other infrastructure and their adequacy in meeting the current and projected needs of the economy; size and composition of external trade and the balance of payments; and structure and employment of the labor force.

(b) Description of the economic system of the country, particularly the organization of production in agriculture and industry; the economic planning system and budgetary process; the institutional framework for conducting external trade ; and the administrative arrangements for project implementation, particularly in those sectors where IDA lending appears most promising.

(c) Government policies and programs to meet the inmediate needs of rehabilitation and medium-term (3-5 years) economic recovery. Special attention should be devoted to the Government's plans to correct distortions in the economic structure caused by the war; rehabilitate economic infrastructure and revive production ; develop an integrated national economy; and provide employment, alleviate poverty and supply the basic needs of the population.

- 2 -

(d) Key economic issues facing the country in reorienting production and labor force toward peacetime goals. This should include an analysis of the p~~ties of agricultural and rural dev~lopment,~xtent of ~plipulation distribution problem and the identification of inuned1ate rehabilitation needs.

(e) The balance of payments situation and prospects wiLh special reference to the size of the foreign inflows required to support the development program. The mission should try, to the extent possible, to identify possible areas suitable for IDA assistance. relating their recommendations to the total need for capital inflows and the financing likely to be available from other sources.

4. Information should be collected to confirm Viet Nam's eligibility fo't' IDA credits. Similarlys it is desirable to set out the criteria by which judgments of the quality of economic performance could be made in future.

Cleared in principle with & cc: Mr. S. Chernick

Cleared with & cc: Messrs. P. Hasan, Gibbs

EAP Region: ~. Messrs. Bell, Ruddy, Bovet, Kirmani, Howell

Vergin, Fennell Projects Division Chiefs Mr . van der Heij den

Mission Members:

Messrs. Lim, Thias, Moulin, Delon

CPS/PAS:

Messrs. van der Tak Messenger McCulloch Vasudevan Thadani van Gent

DPS:

Mr. Chenary Mr. ul Haq

P&B:

Mr. Zaidan

IFC:

Mr. Kuczynski

I N

EK.Hawkins/G. otaw:vmk

\

\


Vietnam - IBRD / IDA Programs / Missions - 1975 / 1977 Correspondence - Volume 1

Document Date

05 January, 1977 Correspondents / Participants

_Document Type

Memorandum

To: Dr. Thavil Khutrakul , Executive Director From: N . A. Gibbs, Division Chief

Subject / Title Mission to Thailand and Viet Nam

Exception(s)

Additional Comments Declassification review of this record may be initiated upon request.



Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


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REFERENCE:

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OUTGOING MESSAGE FORM U O IDA 01FC

(TE LE GRAM /CABLE/TELEX) D ICSID

INTBAFRAD DATE: DECEMBER 30, 1976 JAKARTA

ORIGINATOR 'S EXT.: 4473

INDONESIA CLASS OF TELEX Q-UJ><. ~60? SERVICE:

FOR BANETH

REYUCAB 2195 TO GIBBS. HAVE FORWARDED TO DANG VAN VINH

AAA PROSPECTS FOR PALM OIL DATED JULY 1976 BBB PRICE PROSPECTS FOR

MAJOR PRIMARY COMMODITIES DATED JUNE 1976 STOP NO RUBBER STUDY INCLUDED

BECAUSE LATE T AVAILABLE IS UL HAQUE 1972 REPORT STOP FY.I: DOCUMENTS

FORWARDED THROUGH UNICEF POUCH WHICH APPEARS TO BE BEST CHANNEL OF

COMMUNICATION TO HANOI REGARDS

HAWKINS

NOT TO BE TRANSMITTED AUTHORIZED BY (Name}:

Edward Hawkins DEPARTMENT:

Eas t A~i~l and Pacific ~rograms CLEARANCES AND COPY DISTRIBUTION: SIGNATURE ''?(n~ · ·t1 fauth orized to pj,prove}:

f--,<->; I. \~ -- -'-.i .........

cc : Mr . Gibbs SECTION BJ~LOW FOR USE OF CABLE SECTION

CHECKED FOR DISPATCH:

PINK - File Copy; WHITE· Transmittal Copy; YELLOW - Bill Copy

FORM NO. 27 (11-75)

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OUTGOING MESSAGE FORM (/ 0 IDA D IFC

TO: MR. TRAN DUONG VICE MINISTER

(TELEGRAM/CABLE/TELEX)

STATE BANK OF VIETNAM VIETBANK

DATE:

ORIGINATOR'S EXT.:

D ICSID

DECEMBER 28, 1976

2103

COUNTRY: HANOI, VIETNAM CLASS OF SERVICE: FULL %

CABLE NO. & TEXT: ~

REFERENCE:

DRAFTED BY:

RETURNED RECENTLY FROM FOUR WEEKS TRAVEL IN ASIA AND AM DELIGHTED

TO FIND FINAL PLANS FOR ECONOMIC MISSION AS OUTLINED IN HAWKINS CABLE

DECEMBER 7 AND BELL LETTER DECEMBER 9 STOP AS YOU WILL APPRECIATE WE

HAVE TAKEN CARE TO KEEP MISSION SMALL WHILE ARRANGING HIGHLY QUALIFIED

AND EXPERIENCED TEAM PARA FURTHER TO HAWKINS CABLE DECEMBER 14 MISSION

PLANS TO ARRIVE HANOI 18 JANUARY AT 1135 HOURS VIA FLIGHT CA-901 FROM

PEKING PARA WE WOULD APPRECIATE YOUR EARLY CABLED CONFIRMATION ALPHA

PROPOSED ARRIVAL CONVENIE T TO YOU BETA VISAS CAN BE COLLECTED AT

VIET AM EMBASSY IN PARIS ON JANUARY 12 OR 13 AND GAMMA YOU ARE ARRANGING

FOR HOTELS, INTERPRETERS ETC PARA AS MENTIONED IN OCTOB'ER EYE PLAN TO

JOIN FINAL DISCUSSIONS OF MISSION IN HANOI IN EARLY FEBRUARY AND WILL

CABLE YOU REGARDING MY OWN TRAVEL DETAILS BY J/..NUARY 20 PARA AS HAWKINS

EXPLAINED IN HIS REPLY TO YOURCABLE DECEMBER 13 WE SEE NO NEED FOR

PRELIMINARY MISSION AND ABANDONED THAT PROPOSAL AFTER RECEIVING YOUR

CABLE OF NOVEMBER 6 PARA FOR YOUR INFORMATION HAWKINS MET YOUR UN

REPRESENTATIVE DINH BA THI IN NEW YORK LAST WEEK TO BRIEF HIM ON MISSION

PLANS AND ARRANGEMENTS OUTLINED ABOVE STOP WITH BEST WISHES

VOTAW

NOT TO BE TRANSMITTED AUTHORIZED BY (Name):

Economic Mission to Viet Nam Gregory B. Votaw DEPARTMENT:

EHawkins / Votaw:yc CLEARANCES AND COPY DISTRIBUTION:

cc: Mr . N. Gibbs Mr . P. Hasan (o/r)

PINK - File Copy; WHITE - Transmittal Copy; YELLOW - Bill Copy

TO:

FROM:

SUBJECT:

WORLD BANK / INTERNATIONAL FIN/ i t~/) ) ~ t- /LS

OFFICE MEMORANDUM Files DATE : December 22, 1976.

S. Ru~ i, EA&P Programs, Division A,

VIET N~ ~ Conversation with Mr. B. Cheek, Alternate Executive Director.

1. On December 20, 1976, Mr. Bruce Cheek,Alternate Executive Director for Australia, called me to enquire about the Bank's programs in Viet Nam and Laos. Mr. Cheek mentioned that his government's authorities had requested this information as a background for the Kuwait meeting on IDA 5. Australia apparently looks very sympathetically to an early start of Bank Group operations in Viet Nam and Laos.

2. I told Mr. Cheek that an appraisal report for the ARDC pro-ject in Laos is being prepared, as reported in the Monthly Operational Summary. As far as Viet Nam is concerned I told him that the Bank is planning an economic mission to that country in January 1977 (currently we are discussing with the Government of Viet Nam the exact date). It would be strictly an economic mission to learn about the Government's development plans and assess the current economic situation of the country.

3. Mr. Cheek stated that the Bank group should have enough prepared projects in the pipeline (he mentioned in particular the Mekong Pioneer Projects) to undertake operations in Viet Nam quickly. I answered that it is true that there are projects which have been prepared but we do not know which priority is given to them by the Government and that in view of the change of conditions in the area, extensive updating would be likely. I added that it may be too early to speak of Bank group lending to Viet Nam since we do not know whether an understanding could be reached on economic development matters and priorities; in any case a Bank group operation would be quite slow to come about since we would be moving in a very new country and environment.

4. Mr. Cheek asked whether Viet Nam would qualify for IDA or Bank. I answered that (off-hand and without any benefit of knowledge of the economic conditions of Viet Nam) it looks like the per capita GNP could be estimated tentatively at $110-120 p.a., which would tend to indicate eligibility for IDA operations only.

5. Mr. Cheek asked very discreetly whether we had received any indication of any opposition from any member country to Bank lending to Viet Nam . I answered that if a project for Viet Nam were to be discussed at t he Board I personally could not expect an outcome of the discussions different from the outcome of the discussions on the Viet Nam membership issue.

cc: Messrs. Votaw, Hawkins and Gibbs.

SRuffini:lj

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<111 Manila

21 DEC . l 7

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JAKARTA DATE: DECEMBER 17, 19 76

ORIGINATOR'S EXT.: 2283

COUNTRY: ~JcIA CLASS OF TELEX

CABLE NO. & TEXT: 2 S-/ b SERVICE:

FOR BANETH REUR 217L FOR HOWELL

ALPHA ALEXANDER ASSIGNMENT DEFINITELY SETTLED IN MATTER SATISFACTORY TO ALL AND

RE WILL ACCORDINGLY BE TAKING JAKARTA TRANSPORT POSITION IN JULY 1977. · WILL

LET YOU KNOW BY MAIL FULL DETAILS OF MANNER IN WHJ:CH THIS CASE SETTLED AND LONGER

RUN POLICY NOW ESTABLISHED BUT YOU SHOULD KNOW THAT NO FURTHER ASSIGNMENTS OF US

NATIONALS TO JAKARTA WILL BE POSSIBLE. KNOW

BETA RE VIETNAM AS YOU MAY Jffim THE ORIGINAL IDEA OF A PRELIMINARY BRIEF MISSION WE

WHICH/HAD THOUGHT OF FOR NOVEMBER AND IN WHICH YOU MIGHT HAVE JOINED NOW ABANDONED.

PRESENT PLAN WHICH WE BELIEVE IS UNDERSTOOD AND AGREED WITH VIETNAMESE IS Tff .. AT

FULL MISSION HEADED BY HAWKINS WILL NOT BE PRECEDED BY ANY OTHER Al"ID WILL ARRIVE

VIETNAM JANUARY SEVENTEEN OR POSSIBLY DAY OR TWO LATER. IN VIEW THIS CHANGE OF

PLANS .AND FACT THAT HAWKINS WILL HAVE CONTINUING RESPONSIBILITY FOR ECONOMIC WORK

ON VIETNAM BELIEVE IT ADVISABLE NOW THAT THERE BE NO MISUNDERSTANDING PART

VIETNAMESE WITH RESPECT TO HIS RESPONSIBILITY. EYE KNOW YOUR DEEP INTEREST IN

MATTER BUT FOR THIS REASON AND BECAUSE YOU WILL NEED TO BE HERE IN WASHINGTON

TO COMPLETE ECONOMI C REPORT AT ABOUT TIME MISSION DUE TO. ARRIVE VIETNAM WOULD

PREFER TH.A.T YOU NOT PLAN JOIN HAWKINS' MISSION.

REGARDS BELL __ · j NOT TO BE TRANSMITTED -~ -

- AUTHORIZED BY (Name):

1. EAP Administ_r_a_t_io_n_;_z_. Vie tnam Be rnard R. Bell, Region~l Vice Pres~dent _ DRAFTED BY: DE PARTMENT: . . · ,

BRBell: ea East Asia and Pacific Re gi on a l Of f ice 1

REFERENCE:

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--- ·--------··---- - - ·--------------1..- ----'-----~----- ----- --- -PINI~ - filn CoPV, WHIT !:: - Transmi t tal Copy; YELLOW - Bil l Copy

united nations educational, scientific and cultural organization organisation des nations unies pour !'education, la science et la culture

7, place de Fontenoy, 75700 Paris

The Director-General 15 December 1976

Reference: DG/7 .3/423/821

Dear Mr. McNamara,

During the recent session of Unesco 1 s General Conference in Nairobi, I had the occasion to hold several meetings with the Delegation of the Socialist Republic of Vietnam, headed by Mr. Ngo Dien, Assistant to the Minister of Foreign Affairs.

In the course of these discussions the Delegation expressed its strong and urgent desire to receive assistance from the United Nations system, as well as from oth_er international organizations, to help the country in its effort of reconstruction and rehabilitation, especially in the fields of education, science, culture and communication . The Delegation appealed more specifically for the supply of laboratory and other scientific equipment for the nation's universities and looks hopefully to the World Bank for the funding of this equipment.

Aware, as you no doubt are,of the many problems the country is now facing in its task of reconstruction, I am writing to express to you my wholehearted support for these requests and my fervent hope that ways and means can be found by the World Bank to help the Socialist Republic of Vietnam which has suffered so much in the recent past.

Mr. Robert S. McNamara President World Bank 1818 H. Street NW Washington C 20433 ·, USA

Yours sincerely,

Amadou-Mahtar M'Bow

Rec'd in IRD

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TO: :MR. TRAN DUONG VICE MINISTER

(TE LE GRAM /CABLE/TE LEX)


DATE: DECEMBER 14, 1976

ORI GI NATOR'S EXT.: 4474

COUNTRY: HANOI, VIETNAM CLASS OF / '!?(ff

CABLE NO. & TEXT: SERVICE : FULL RATE I /\'

THANKS YOUR CABLE DECEMBER 13 STOP ON RECEIPT OF YOUR CABLE NOVEMBER 6

REFERENCE:

DRAFTED BY:

CONFIRMING TIMING FOR FULL ECONOMIC MISSION WE PROCEEDED TO MAKE

ARRANGEMENTS FOR FULL ECONOMIC MISSION FOR WEEK BEGINNING JANUARY 17TH.

IN VIEW OF YOUR CONFIRMATION WE HAD CONCLUDED PRELIMINARY MISSION NO

LONGER NECESSARY ESPECIALLY SINCE :MR. VOTAW'S LETTER OF OCTOBER 22 SET

OUT SCOPE AND OBJECTIVES OF BANK ECONOMIC REPORTS WHICH WOULD HAVE BEEN

PURPOSE OF PRELIMINARY MISSION STOP WE ARE ANXIOUS NOT TO POSTPONE THE MISSION

AND WOULD BE GRATEFUL IF YOU COULD CONFIRM THAT THESE ARRANGEMENTS ARE

SATISFACTORY TO YOUR GOVERNMENT STOP. REGARDS

E.K. Hawkins

NOT TO BE TRANSMITTED

HAWKINS INTBAFRAD

AUTHORIZED BY (Name} : E.K. Hawkins

DEPARTMENT: East Asia and Pacific - CP (AEADR)

CLEARANCES AND COPY DISTRIBUTION:

cc : Messrs. Votaw o/r Hasan

SIGNAT~~j'{fnj/vJt''f!.' author:ft to approve) :

UV--~ --SECTION BELOW FOR J.1$:E:OE CABJ,E SECTION

CHECKED FOR DISPATCH : {~ Gibbs EKHawkins:go PINK - Fi le Copy ; WHITE - Transmittal Copy; YELLOW - Bill Copy

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FORM NO. 27 ( 11 -75)

TO:

COUNTRY:

CA BLE NO. & TEXT:

REFERENCE:

DRAFTED BY:

) // //fz;J; - /0l/ 1JC WORLD BANK/ IFC / J C O IBRD

OUTGOING MESSAGE FORM O IDA

(TE LEGRAM/CABLE/TELEX)

INTBAFRAD DATE: 12/13/76

ORIG INATOR'S EXT.: 3571 JAKARTA

CLASS OF INDONESIA SERVICE: TELEX

:;Lt-f-70 BANETH

THANKS UR 2103 AND 2129. WE ARE PUTTING TOGETHER A SELECTION

OF DOCUMENTS INCLUDING COMMODITY REPORTS WHICH HAWKINS MISSION

WILL TAKE TO VIETNAM. WILL ADVISE TITLES WHEN SELECTION

COMPLETED.

REGARDS

GIBBS


VIET NAM - Economic Mission '7 Nicholas A. Gibbs, Chief, DEPARTMENT:

D IFC

D ICSID

(;ff (Y

NAGibbs:lj East A ·a Div.A CLEARAN CES AND COPY DISTRIB UTION:

cc: Messrs. Bell (thru Ruddy) Vergin/Howell,

CHECKE D FOR DISPATCH:

PINK - File Copy; WHITE · Transmittal Copy ; YELLOW - Bi ll Copy

) -.

It .t ,. -~ . ! ........ - .. . • r

•

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•

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Mr. r icholas Gibbs

Bernard R. Bell '1tr Possibl Press Release on Viet Nam

r.•. This is in answer to your memorandum of December 3 attaching a

draft press release on Viet Nam. You asked what I thought of the idea of issuing such a release and also for comments on the draft.

I defer to the judgement of our Public Information Department on the question whether a "press release" should be issued. We normally do not announce to the press that we are sending missions of one kind or another to member countries. Furthermore, I do not believe that we should make a special production out of the fact that we are planning to treat Viet Nam in the same way as we treat any other member of the Bank. On the other hand, I recognize that the press probably has a rather special interest in, and curiosity about, what we may do about Viet Nam and has already asked questions about this and will no doubt continue to do so. My own feeling is that we should not issue a special release but in answer to any questions that come from the press in the course of the next five weeks, we should give them a prepared statement.

On the draft itself, I am attaching a suggested substitute for the draft you sent me. I think, but opinions might differ on this, that the draft I have prepared includes the more significant elements of Mr. Tran Duong's statement and a more accurate statement and informative statement about waat we are now planning to do. I especially would not include any such statement as the one in the penultimate paragraph of the original draft.

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DRAFT FNossal/BRBell:ea December 10, 1976

WORLD BANK SENDING ECONOMIC MISSION TO VIET NAM

The Board of Executive Directors of the World Bank in ~eptember,

1976 recognized the membership of the unified Viet Nam as a continuation

of the membership which South Viet Nam had held since 1956. This

paralleled action taken by the Board of Executive Directors of the

International Monetary Fund.

At the Joint Annual Meetings of the Boards of Governors of the

World Bank and the International Monetary Fund in Manila early in

October, 1976, Mr. Tran Duong, Vice Minister, and Member of the Board

of Directors of the State Bank of Viet Nam, speaking as Governor of the

Bank and Fund for Viet Nam, extended cordial greetings to all delegates

and participants.

"We deeply appreciate the objectivity and goodwill manifested

by virtually all the Executive Directors in the recent decision of the

International Monetary Fund and the World Bank recognizing the member

ship of the Socialist Republic of Viet Nam," Mr. Tran Duong said.

He said that the Government and the people were determined to

heal the wounds of war and to restore and develop Viet Nam's economy,

and that "as a developing country with a relatively low national income

and one seriously devastated by war Viet Nam deserves the special concern

of the IMF and the World Bank as they pursue their objectives."

He said also that while in its economic .construction Viet Nam

was counting mainly on its own efforts, it was at the same time "working

to diversify and develop its relations with all countries, on the basis

of respect for independence, sovereignty and territorial integrity,"

I •

·~· , .,

•

- 2 -

and '.intended to "strengthen our cooperation with the other member

countries of the International Monetary Fund and the World Bank .•• ".

At the invitation of the Government of Viet Nam, a team of

members of the World Bank staff will visit Viet Nam next month (January)

to develop knowledge and understanding

situation and prospects of the country

of the economic and I

;.;:J'i~ and of ~ !\ problems

financial

and plans.

The World Bank mission is expected to remain in Viet Nam for three to

four weeks.


Vietnam - IBRD / IDA Programs/ Missions - 1975 / 1977 Correspondence - Volume I

Document Date

09 December, 1976 Correspondents I Participants

Document Type·

Letter

To: Tran Duong, Vice Minister, State Bank of Viet Nam From: Bernard R. Bell, Regional Vice President, EAP

Subject /_Title Arrangements for economic mission to Viet Nam


Additional Comments



Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


FORM NO. 27 (11-75)

Utd //&J; /~J4 /~ WORLD BANK/ IFC /) 0 IBRD

OUTGOING MESSAGE FORM U O IDA D1FC

7 ;J)_-2-oq (TELEGRAM/CABLE/TELEX)

ICSID

TO: ASIANBANK

MANILA

COUNTRY: PHILIPPINES

CABLE NO. & TEXT:

DATE: December 9, 1976


CLASS OF SERVICE, TELE~

REFERENCE:

DRAFTED BY:

FOR MR. Z. NOORZOY.

IBRD ECONOMIC MISSION LEAD BY EDWARD HAWKINS PLANS ARRIVE VIET NAM DURING

WEEK JANUARY 17, 1977 FOR STAY OF ABOUT 3-4 WEEKS. HAWKINS PROPOSES VISIT

ADB ON ROUTE TO WASHINGTON AND WILL PROPOSE DATE WHEN ARRANGEMENTS CAN BE

CONFIRMED. GRATEFUL YOU ADVISE IF ADB PLANS ANY MISSIONS TO VIET NAM DURING

THIS PERIOD.

ADB

NAGibbs/dat

REGARDS

GIBBS


N.A. Gibbs DEPARTMENT:

East As· CLEARANCES AND COPY DISTRIBUTION :

cc: Messrs. Bell (thru Ruddy), Kirmani


PINK - File Copy; WH IT E · Transmittal Copy; YELLOW · Bill Copy

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Vietnam - IBRD / IDA Programs I Missions - 1975 I 1977 Correspondence - Volume l

Document Date

07 December, 1976

Correspondents I Participants

Document Type

Outgoing wire

To: Tran Duong, Vice Minister, State Bank of Viet Nam From: E. K. Hawkins

Subject / Title Economic mission


Additional Comments



Barcode No.

1387878

The item(s) . identified above has/have been removed in accordance with The World Bank Policy on Access t.o Information or other disclosure policies of the World Bank Group.

Withdrawn by


Date

November 15, 2019


FORM NO. 27 (11-75)

Ja,//&;;-/~Y./JG WORLD BANK/ IFC t/0& K) IBRD

OUTGOING MESSAGE FORM O IDA D IFC

(TELEGRAM/CABLE/TELEX) 0 ICSID

TO: M. VERAART SHANGRILA HOTEL VIALE ALGERIA 1411 ROME

DATE: DECEMBER 3, 1976

ORIGINATOR'S EXT.:

COUNTRY: ITALY CLASS OF SERVICE:

CABLE NO. & TEXT:

•

•

REFERENCE :

FOR VERAART

BANK WOULD WELCOME DELON'S PARTICIPATION IN ECONOMIC MISSION TO VIET NAM

TO BE RESPONSIBLE FOR AGRICULTURAL AND AGRO-INDUSTRY TOPICS. PLEASE

CONFIRM AVAILABILITY FOR PERIOD OF NINE WEEKS BEGINNING APPROXIMATELY

JANUARY TEN, OF WHICH THREE TO FOUR WEEKS IN FIELD, FOUR WEEKS IN

WASHINGTON FOR REPORT PREPARATION AND ALLOWING ONE WEEK IN ROME IF REQUIRED

AFTER FIELD TRIP. HAVE SPOKEN TO YUDELMAN WHO AGREES THAT DELON'S SUPPORT

FOR THIS IMPORTANT MISSION DESERVES PRIORITY OVER OTHER BANK ASSIGNMENTS

INCLUDING LAOS FOLLOW-UP. PLEASE COMMUNICATE URGENTLY FAO/CP AGREEMENT

AND SEND UPDATED CURRICULUM VITAE INCLUDING DATE AND PLACE OF BIRTH AND

NUMBER AND DATE OF ISSUE OF PASSPORT AND LAISSER PASSER. IF PROBLEMS

SHOULD ARISE PLEASE CALL ME MONDAY •

REGARDS

VERGIN

NOT TO BE TRANSMITIED I 1

AUTHORIZED BY (Name): ' He\ &a ~gin l

DRAFTED BY: EKHawkins/HVergin:aj DEPARTMENT: E A. & p ·t• p . ast sia ci 1c roJects

CLEARANCES AND COPY DISTRIBUTION: SIGNATURE (Of individual authorized to approve):

Cleared with and cc: Messrs. Yudelman, Hawkins I------SE_C_T._IO_N_B_E_L_O_W_F_O_R_U_S __ E_O __ F_C_:A,--8-c--L=E""'"sE-=-c=7.=1o=N:-:------l

cc: Messrs. Bell, Kirmani, Gibbs, Golan CHECKED FOR DISPATCH:


,.

TO:

FROM:

SUBJECT:

. · Ytt_l /lk,Jr;~"J!..i ·>;{ /' v~ WORt.p BANK / INTERNATIONAL FINANCE CORPORATION / -"VV'iJtft'U A'.Jd

OFFICE MEMORANDUM Mr. Bernard R. Bell, Regional Vice Preside~· t _

, Acting Director, EAP grams) EA&P Regiotal Office (through Mr. B. Sandb r DATE: December 3, 1976

N.A. Gibbs ~f,_Div. A, EAP Programs

VIET NAM

1. I attach a draft 'press release' prepared by Mr. Nossal with a few minor changes which I have agreed with Mr. Nossal. I would appreciate your comments on the draft.

2. As I think you know there have been one or two 'low-key' press enquiries about the prospects of the Bank Group becoming active in Viet Nam and the draft was prepared with the idea of having a brief'releasf:' available should there be further enquiries.

3. I have discussed with Mr. Nossal the possibility of making the release ' available to the press either generally or on a selective basis before the Economic Mission leaves for Viet Nam (and before. the Presidential Inaguaration). Mr. Nossal favours the idea chiefly on the grounds that the start of Bank Group's involvement in Viet Nam will be of some interest to the press (and public) and that in those circumstances it would be -best for the Bank to take the initiative of informing the press of our activities in Viet Nam. I would support this approach and if you agreed,the'release'would be made about the turn of the year . I would be grateful for your reactions.

Attachment

cc: Mr. Nossal

NAGibbs:vmk

- ·· . ,7 .... 1 -

WORLD BANK SENDING ECONOMIC MISSION TO VIETNAM

DRAFT FNossal:ur 11/24/76

The Executive Directors of the World Bank recognized the mem~er

ship of the Socialist Republic of Viet Nam on September 21 -, 1976. ~

ftembers of the World Bank looked upon Viet Nam's entry as a continuation

of th~ me~bership that Souih Vietnai had held since 1956.

At the Joint Annua 1 t'eet i ngs of the ~/orl d Bank and the Inter

nati ona 1 Monetary Fund in Manila on October 7, 1976, Mr. Traij · Duong,

Vice Minister, Member of the Board of Directors of the State Bank of ' 'N.J'vJ

Viet Nam, andLGovernor of the Bank and Fund for Viet Nam, extended

cordial greetings to all delegates and participants .

."We deeply appreciate the objectivity and goodwill manifested

by virtual'.ly all the Executive Directors in the recent decision of the

International Monetary Fund and the World Bank recognizing the membership

of th~ Soc,ialist Republic of Vi~t Nam, 11 Mr. Tran ·Duong said!

.~e said that the unification of the country was achieved on

July 2, 1976 . The Government and the people were determined to heal the

wounds of ~ar and to restore and develop Viet Nam's economy.

1Mr. Tran Duong told the meeting that a unified Viet Nam

possesses great potential in human and physical resources. The country

has 50 million inhabitants, including an active working population of

20 million.

\ •,

\

I I

.- ~ I I

/ - 2 -

"Viet Nam has the prerequisites for assured success in its

task\of building a prosperous economy, combined with a sound basis and broad

scope for effective economic cooperation with other countries, 11 Mr. Tran

Duong said in Manila.

The World Bank -- whose forma·l name is the I nternat i ona 1 Bank

for Reconstruction and Development -- hopes to participate in the . U l'\.h1'rx.~-t~ ~

reconstruction of Viet Nam and w-i~H- p-t-ey--an-+mpef"<f:-ant-- ro-le·-in the economic

development of the count r y.

At the invitation of the Government of Viet Nam, a World Bank

economic mission will leave for Hanoi next month (January) for discussions

with the Vietnamese authorities. The World Bank mission is expected to

remain in Viet Nam for about three weeks .

\

December 1, 1976

Memorandum for the Record

From J. Baneth

Subject Meeting with Vietnamese Delegation

1. On Saturday morning, October 2, 1976, Messrs. Bell, Votaw and Baneth met with the following members of the Vietnamese delegation: Mr. Tran Duong, Governor for the Bank and IMF, Vice Minister, Member of the Board of Directors, State Bank of Vietnam; Dao Viet Doan, State Bank of Vietnam; Mr. Nguyen Manh Thuy, State Bank of Vietnam; Mr. Cao Dae Cuong, Adviser, State Bank of Vietnam.

2. The conversation was cordial and constructive. Mr. Bell welcomed the delegation, and said that he wished to repeat what he had said to them in Jakarta in April at the time of the ADB annual meeting, that the Bank would deal with Vietnam constructively just as it did with all its members, and without political considerations. The Bank staff also explained the Bank's procedures. For a start, the Bank needed to send a general economic mission to attempt to learn about and understand

u

the country's economic and financial situation, problems, prospects and plans and how the Bank could most effectively assist. Such a first mission could probably be sent in about January 1977. Once the findings and report of the mission had been considered by the Government and the Bank and appropriate sectors for Bank assistance agreed, the Bank would send subsequent missions to prepare and appraise particular projects.

3. Even under the most optimistic assumptions, not less than 12 to 18 months would probably be required between the first mission and presentation to the Board of the first loan proposal. Furthermor e, the Bank staff explained, lending to Vietnam would have to come from IDA, whose resources were at present exhausted. New commitments therefore had to await IDA's replenishment. The amount likely to be lent to Vietnam cannot be determined now; it will depend both on the development of appropriate projects and on the final amount of the IDA replenishment. However, one could say that one important factor in the allocation of IDA funds to various IDA-eligible countries was population.

4. The Vietnamese delegation asked whether the schedule outlined could not be accelerated. However, in answer to question, they agreed that January would be about the earliest that the Government would be ready to receive an economic mission. It was agreed that to help out in preparation, we would provide the Government with copies of Bank economic reports on various countries and on particular projects. Furthermor e, it was also agreed that, in preparation for the Economic Mission, it would

... /2

.i

•

Memorandum for the Record - 2 - December 1, 1976

be desirable that there be a preliminary visit to Vietnam by the prospective Mission leader .

5. Concerning economic and project priorities, the delegation stated that they were mainly in the field of agriculture, fisheries and transport equipment and infrastructure. In the longer run, industrial projects were also possible. Commenting on this, the Bank staff explained that for large size projects the Bank could organize co-financing; under certain conditions, this could even be organized with non-Bank members.

6 . Subsequently, I had a further meeting with three members of the Vietnamese delegation. Most of the time was spent on my explaining Bank procedures. A point to which they paid particular attention was that while Bank lending had to be for projects, that did not necessarily mean that it could financeonly equipment purchases. The Vietnamese were particularly interested in the possibility of setting up or strengthening a rural credit system, in which the Bank would provide foreign exchange for the constitution of a revolving fund which would extend credits for the purchase of agricultural supplies, notably fertilizer, small equipment, etc.

7. On the subject of the preliminary staff1yisit, the Vietnamese

reiterated that they strongly welcomed the idea . - The best timing for such a visit would be November 10 to 20. They also stated tha t they woulg strongly wish me personally to be on that visit. I told them that I personally was also very much wishing to go, and probably would.

7. Subsequently also, at a dinner of the "Southeast Asia" group of delegations the Vietnamese delegation urged Mr. Bell to visit Vietnam as soon as possible and prior to the economic mission. They had made the same suggestion in Jakarta in April. The delegation also expressed their gratification that cordial and cooperative relations were being established with the Bank. They added that they hoped similar relationships could be established with the US Government. When Mr. Bell suggested tha t there was a US delegation present and presumably accessible in Manila, the Vietnamese, after some hesitation, indicated that it might be better to wait a year for that attempt.

1/ Subsequently, I heard that the Vietnamese suggested to the ADB that they, too, send a one-man reconnaissance mission prior to the full mission scheduled for January.

Cleared with: B. R. Bell ~f cc: G. Votaw

JBaneth:bcl

FORM NO. 27 (11-76)

TO:

COUNTRY:

CABLE NO. & TEXT:

REFERENCE :

DRAFTED BY:

MR. TRAN DUONG VICE MINISTER

;,/// /Ya WORLD BANK/ IFC

OUTGOING MESSAGE FORM (TELEGRAM/CABLE/TELEX)

/

D IBRD

01DA

D IFC

D ICSID

DATE: NOVEMBER 12, 1976

STATE BANK OF VIET NAM HANOI

ORIGINATOR'S EXT.: 3571 /rALT

VIET NAM CLASS OF SERV ICE:

THANKS URCAB NOVEMBER SIXTH. PLEASED TO LEARN THAT YOU PREPARED TO RECEIVE

ECONOMIC MISSION BEGINNING JANUARY SEVENTEENTH PARA SAMPLING OF BANK

REPORTS ON BURMA, INDIA, LAOS AND WGOSLAVIA WAS SENT TO YOU EXPRESS

AIRMAIL FROM PARIS ON NOVEMBER FOURTH AND EXPECTED TO REACH YOU THIS WEEK.

AFTER HAWKINS, WHO IS PRESENTLY AWAY FROM WASHINGTON ON ANOTHER MISSION,

RETURNS WE WILL FIRM UP STAFFING AND OTHER PLANS FOR JANUARY MISSION

AND AIM TO CABLE THESE DETAILS TO YOU BY MID-DECEMBER.

REGARDS

VOTAW


Viet Nam 1977 Eco. Mission AUTHORIZED BY (Name) :

G.B . Votaw, Director, Country Programs Dept. DEPARTMENT:

NAGibbs/GNVotaw:vmk East A;,~a and Pacific Regional Office CLEARANCES AND COPY DISTRIBUTION:

cc: Mr . Bell (thru Ruddy) Mr . Kirmani Mr. Hawkins (o . r.)

PI NK - File Copy ; WHITE - Transmittal Copy; YELLOW - Bill Copy

FORM N~-27 (11 - 75)

TO:

COUNTRY:

CABLE NO. & TEXT:

REFERENCE:

DRAFTED BY:

WORLO BANK/IFC !!di /13b /i(K;f.~:.RDG OUTGOING MESSAGE FORM \./ a 6 IDA

(TELEGRAM/CABLE/TELEX) D IFC

D ICSID

INTBAFRAD

BANGKOK

THAILAND

(PAGE 1 OF 2 PAGES) DATE : NOVEMBER 10, 1976


NO LL-f-Cj FOR VAN DER HEIJDEN

RE VIETNAM

CLASS OF SER VICE : TELEX I/-Y

AAA ON OCTOBER 29, ~ WE CABLED STATE BANK THAT FOLLOWING MANILA

DISCUSSIONS WE PROPOSED ECONOMIC CUM PROJECT IDENTIFICATION MISSION VISIT

VIETNAM FOR ABOUT 3 WEEKS BEGINNING JANUARY 17, 19 7 7 ; WE ALSO PROPOSED

A PRELIMINARY MISSION VISIT FOR FEW DAYS ARRIVING WEEK NOVEMBER 15. WE

HAVE NOW HEARD THAT JANUARY 17 START ECONOMIC MISSION ACCEPTABLE TO

GOVERNMENT WITH .POSSIBLE PRELIMINARY MISSION EARLIER THAT MONTH.

APPARENTLY NO CHANCE OF PRELIMINARY MISSION THIS YEAR POSSIBLY BECAUSE

PARTY CONGRESS MEETS FOR ONE MONTH BEGINNING ABOUT NOVEMBER 22.

BBB IN PREPARATION FOR ECONOMIC MISSION WE HAVE DISPATCHED THROUGH OUR

PARIS OFFICE COPIES OF BURMA, INDIA, YUGOSLAVIA AND LAOS ECONOMIC REPORTS

AS EXAMPLES OF TYPE OF COVERAGE WE TRY ACHIEVE IN OUR ECONOMIC WORK WITH

COVERING EXPLANATORY LETTER (COPY OF WHICH YOU SHOULD HAVE).

CCC TED HAWKINS IS AVAILABLE AND READY LEAD ECONOMIC MISSION. THIS

PARTICULARLY WELCOME AS WE ANXIOUS TO STAFF MISSION AS FAR AS POSSIBLE

FROM WITHIN REGION. NO DECISIONS ON OTHER MISSION MEMBERS UNTIL AFTER

HAWKINS RETURNS WASHINGTON NOVEMBER 22.

NOT TO BE TRANSMITTED I AUTHORIZED BY (Name} :

1977 Vietnam Eco. Mission N.A. Gibbs, Chief, Div. A DEPARTMENT:

NAGibbs:vmk Programs, EAP Regional Office CLEARANCES AND COPY DISTRIBUT ION: SIGNATURE (Of individual authorized to approve) :

cc: Mr. Bell (thru Ruddy) Mr. Kirmani, Mr. Votaw SECTION BEL OW FOR USE OF CABLE SECTION

Mr. Hawkins (o.r.) CHECKED FOR DISPATCH:

PI NK - Fi le Copy ; WH ITE - Transmittal Copy; YELLOW - Bill Copy

FORM N~. "27 ( 11-,-76)

TO:

COUNTRY:

CABLE NO. & TEXT:

. I

REFERENCE:

DRAFTED BY:

DDD

WORLD BANK/ IFC

OUTGOING MESSAGE FORM (TE LEG RAM /CABLE/TE LEX)

(PAGE 2 OF 2 PAGES) DATE:

ORIGINATOR'S EXT.:

CLASS OF SERVICE :

IMF HAS SECURED VIETNAM'S AGREEMENT VISIT QUOTE ECONOMIC

BACKGROUND AND COMPENSATORY FINANCING UNQUOTE MISSION (CHA.BRIER AND

3 OTHERS) FOR ONE WEEK BEGINNING NOVEMBER 24. EXPECT THEY WILL VISIT

YOU ENROUTE.

REGARDS

GIBBS


D IBRD

01DA

D IFC

D ICSID

1977 Vietnam Eco. Mission N.A. Gibbs, Chief, Div. A, Programs Dept. DEPARTMENT:

NAGibbs :vmk East Asia and P9J:ific, Regional Office CLEARANCES AND COPY DISTRIBUTION: SIGNATURE (Of in1~t'8A~th~ -

cc: Mr. Bell ( thru Ruddy) SECTION BELO IV FOR USE <Jli.,',~LE SECTION

Mr. Kirmani, Mr. Votaw CHECKED FOR DISPATCH~! I -Mr; Hawkins (o.r . ) C ~H.

PINK . File Copy, WHITE · Transmittal Copy, YELLOW - Bi l l Copy\.._.....--

FQIRM NO. 27 (11-75)

TO: HAWKINS DAVARA HOTEL PORT MORESBY

V(//JG/, /i/lJ /) WORLD BANK/ IFC 'A:_ -~:] ~ IBRD

OUTGOING MESSAGE FORM u O IDA

(TELEGRAM/CABLE/TELEX)

PAGE ONE OB' XHREE

D IFC

D ICSID



COUNTRY: PAPUA NEW GUINEA

CABLE NO. & TEXT:

CLASSOF ~\ ~ SERVICE:~

REFERENCE:

DRAFTED BY:

THANKS YOUR TELEX NOVEMBER 8 Stop FOLLOWING IS TEXT SENT OCTOBER 29

ALL PARTIES AGREE YOU ARE BEST OF MANY CANDIDATES CONSIDERED AND WE

ASSUME YOU STILL ENTHUSIASTIC COMMA HAVE NOTIFIED HANOI THAT YOU WILL

LEAD ECONOMIC MISSION BEGINNING AROUND JANUARY 17 AND REQUESTED THEIR

CONFIRMATION OF TIMING STOP LETTER OUTLINING GENERAL OBJECTIVES OF

ECONOMIC MISSIONS AND BASIC INFORMATION REQUIREMENTS SENT WITH SAMPLE

REPORTS ON BURMA, INDIA, LAOS AND YUGOSLAVIA WEEK AGO VIA PARIS PARA

PLEASE EXCUSE MY DELAY IN FINALIZING SELECTION AND THIS HASTY NOTIFICATION

STOP THERE HAS NEVER BEEN SLIGHTEST DOUBT WITHIN REGIONAL MANAGEMENT

THAT YOU WERE CANDIDATE OF CHOICE, ONCE YOUR INTEREST CONFIRMED LAST

MONTH STOP BECAUSE OF WIDESPREAD INTEREST IN SUBJECT, EYE SOUGHT AND

READILY OBTAINED CONSENSUS AND SUPPORT OUTSIDE REGION BEFORE MAKING

FINAL DECISION PARA AS EYE BELIEVE YOU KNOW, WE DISCUSSED PRELIMINARY

MISSION WITH VN AUTHORITIES IN MANILA STOP THEY WELCOMED THIS AND URGED

VISIT BEFORE NOVEMBER 20 WHICH EYE AM ALSO TRYING TO ARRANGE DESPITE

YOUR UNAVAILABILITY THEN STOP HAVE IN MIND GIBBS, A FRENCH SPEAKING

PERSON WHO WILL ALSO BE PART OF JANUARY MISSION BUT HAS NOT YET BEEN

T ,u·n.1fJ"l u· k. nm nl\t.m'T'l:T !:'l'OP vmr MI\Y t.mNnER ABOUT BANETH'S INVOLVEMENT NOT TO BE TRANSMITTED

G. Votaw (Vietnam Econ. Mission) AUTHORIZED BY (Name}:

DEPARTMENT:

CLEARANCES AND COPY DISTRIBUTION: SIGNATURE (Of individual authorized to approve) :

SECTION BELOW FOR USE OF CABLE SECTION



F/ilRM NO. 27 (11-75)

TO: HAWKINS

WORLD BANK/ IFC

OUTGOING MESSAGE FORM (TELEGRAM /CABLE/TE LEX)

K) IBRD

D IDA

D IFC

D ICSID

PAGE TWO OF THREE DATE: NOVEMBER 8, 1976


COUNTRY: PAPUA NEW GUINEA

CABLE NO. & TEXT:

CLASS OF SERVICE: TELEX

v/J

REFERENCE:

DRAFTED BY:

WHICH IS ONE SHOT PROPOSITION WITH OBVIOUS ADVANTAGES OF BANK AND COUNTRY

BACKGROUND THAT WILL NOT BE REPEATED IN JANUARY, RESPONDS TO HIS DEEP

CONCERN AND REQUEST, IN NO WAY REFLECTS SUPERVISION OF OR INTERFERENCE

IN JANUARY MISSION AND BUILDS ON CONTACTS GIGI REESTABLISHED DURING SIX

WEEK SOJOURN THIS SUMMER PARA RE OTHER MEMBERS OF JANUARY TEAM,HAVE

REQUESTED LETHEM BUT MEETING RESISTANCE STOP HAVE YOUR OTHER PREFERENCES

FROM GIBBS AND WILL DO BEST TO IDENTIFY STRONG TEAM FOR YOUR REVIEW ON

RETURN STOP YOUR FURTHER SUGGESTIONS MOST WELCOME EITHER BY CABLE OR

HOME OR OFFICE PHONE STOP TRUST TRIP GOING WELL DESPITE NEGATIVE ECHOES

MANILA ADVENTURES STOP WARM REGARDS TO HINKLE, BOVET AND BOTH HAWKINS STOP

PLEASE CONFIRM RECEIPT OF THIS CABLE UNQUOTE FOR YOUR INFORMATION CABLE

OFFICE INSISTS MANDARIN DID RECEIVE ORIGINAL T T PARA )A.Y HANOI CONFIRMED

JANUARY 17 CONVENIENT TO START YOUR MISSION AND SUGGESTS PRELIMINARY VISIT

EARLIER THAT MONTH STOP THAT KILLS ALL THOUGHT VISIT THIS YEAR STOP IMF

TEAM ALSO CONFIRMED TO BEGIN WORK ON POSSIBLE COMPENSATORY FINANCING

NOVEMBER 24 STOP WILL LEAVE FURTHER DETAILS FOR DISCUSSION WHEN YOU RETURN

STOP YOU MAY ALSO BE INTERESTED TO KNOW THAT VN- PARTY CONGRESS BEGINS MONTH

LONG MEETING IN HANOI, ABOUT NOVEMBER 22 WHICH MAY EXPLAIN WHY NO


G. Votaw (Vietnam Econ. Mission) AUTHORIZED BY (Name):

Gre o B. Votaw Director DEPARTMENT:

GBVotaw:cl E t Asia and Pacific CLEARANCES AND COPY DISTRIBUTION:

cc. Messrs. Bell, Hasan, Bussink, Gibbs

PINK . File Copy; WHITE· Transmittal Copy; YELLOW· Bill Copy

Ft!RM NO. 27 (11-75)

TO:

COUNTRY:

CABLE NO. & TEXT:

WORLD BANK/ IFC


PAGE THREE OF THREE DATE:

ORIGINATOR'S EXT.:

CLASS OF SERVICE:

PRELIMINARY MISSION CONVENIENT THIS YEAR REGARDS

.I


VOTAW INTBAFRAD

REFERENCE: G.Votaw (Vietnam Econ . Mission) AUTHORIZED BY (Name}:

DRAFTED BY: GBVotaw:cl DEPARTME

CLEARANCES AND COPY DISTRIBUTION: SI


PINK - File Copy; WHITE · Transmittal Copy; YELLOW - Bill Copy

01BRD

01DA

OtFC

0 ICSID

FORM NO. 27 (11-75)

TO:

COUNTRY:

CABLE NO. & TEXT:

. 1

REFERENCE:

BANETH INTBAFRAD JAKARTA

INDONESIA

Ml /tf;L -~C)Yt ;2G WORLD BANK/ IFC

1~) K) IBRD

OUTGOING MESSAGE FORM (/ 0 IDA

(TELEGRAM/CABLE/TELEX) B :~~ID


ORIGINATOR'S EXT. : 2103

CLASS OF SERVICE : TELEX 44456

TD HAS CONFIRMED JANUARY 17 AS STARTING DATE FOR HAWKINS MISSION WITH

POSSIBLE PRELIMINARY MISSION EARLIER THAT MONTH STOP APPARENTLY NO

CHANCE OF PRELIMINARY MISSION THIS YEAR POSSIBLY BECAUSE PARTY CONGRESS ' .

MEETS FOR ONE MONTH STARTING ABOUT NOVEMBER 22 AND INVOLVING SEVERAL

FRATERNAL DELEGATIONS FROM ABROAD STOP NEVERTHELESS FUND MISSION IS

CONFIRMED TO DISCUSS POSSIBLE COMPENSATORY FINANCING FOR ONE WEEK OR

MORE BEGINNING NOVEMBER 24 . REGARDS


VOTAW INTBAFRAD

AUTHORIZED BY (Name) :

Vietnam Econ . Mission Gre o B. Votaw Director DRAFTED BY: DEPARTMENT:

GBVotaw:cl CLEARANCES AND COPY DISTRIBUTION: .

cc . Messrs . Bell, Hasan, Bussink, Gibbs

PINK - File Copy ; WHITE - Transmitta l Copy ; YELLOW - Bill Copy

l

07

A

I

C

1 17 0

17

I

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0 C

t

•,XPRESS

Ur . 'rran Duone Vice 11' nir. t:er S te B. n of Viet Nr.t-n

ANOI Republiquc Democratique du Viet-Nero

r, car l· r . Tr an Duo g,

lfovcmb r 5 ~ 197 o

I ha c plea.su"i:'e in foniarclin to you hercwi h the follov:f.r"·· c ocur-ients · hich I have d?Ccived fo r you fror.1 Mr . Gre"ory ii . Vote.~ , D .:rector: Country Progra:.::s Dcpart."'llent East A:ii<i. etn l P· ci i:ic Reg:i. m1.".l Of £ice . Hor14 D::mk, Wash ington:

Y ;:rosla ia - l,orld Bank Country Eco1 o:i:ic Repor , Devclopme1t with Decentralization

R port no. 168a-BA: nTba curr .nt sitm:it:ton oud pros ~ct o f the lTn:lon of Bu ie. 11

, July i5, 1973

.-.. cport No. 1073-IN: "Econoo ic situation and r sr,ectc f l ndia1\

Harch 29, 1976

Rcpo!'t o . 668s.-IA (/. volu:"CS); 11Q ialquco con t.nt~tiono t elaU.ve ~ ... ~ reconstruction et a. 1 <.;Welopr, c:.-.:-!r!t: ~ (h10, i .' e (" · 1w ,11

,

· vru 11 , 1975

... n1e •.cport i.n En lis (4 volumes):'\.omc findi ~s rdf-ltive o

tocl.

-ael/r,r

· t he r~const:i. cti n .nd ,~co,1omic de:vclormeu of L ~ . ti

A !:i 1 t • 1975 .

Sincerely yo~n.'.'" ,

., Ca.~r.i~: ·e. Di rc·t.! ·or or '• , 1-:ur !> ~ ff,~(•

"'T/i;i'' Rt! /1t2,,) J #~1 CROSS REFERENCE SHEET

COMMUNlCA TION: Memorandtlll1

DATED: Nov. 5/76

TO: Files

FROM: Messrs. Jean Bane th and David Loos

...-1LED UNDER: Viet Nam - IBRD/ IDA Programs/Missions

SUMMARY: Mr . Knapp ' s Meeting with the Vietnamese Delegation at Annual Meeting , Manila , 1 976

FORM NO . 2 7 (11-75)

/ ,;f Aff>v l'ffot:'Jtf; WORLD BAN / IFC ~ ')

OUTGOING MESSAGE FORM (/ (TELEGRAM/CABLE/TELEX)

(

u (ii IBRD

0tDA

D IFC

D ICSID

TO: E. HAWKINS

DAVARA HOTEL

PORT MORESBY COUNTRY: PAPUA NEW GUINEA


ORIGINATOR'S EXT.: 2103 r: ,,1 / JIJ.1A-

CLASS oF rA;. J ic.,J CABLE NO. & TEXT:

.I

REFERENCE:

DRAFTED BY:

SERVICE : _,r;

CABLED YOU CARE OF MANDARIN HOTEL LAST FRIDAY REGARDING PLANS FOR

VIETNAM ECONOMIC MISSION WHICH WE ALL WANT YOU TO LEAD Stop HAVING

HEARD NOTHING FROM YOU Comma FEAR YOU NEVER RECEIVED THAT CABLE Stop

PLEASE LET ME KNOW IMMEDIATELY AND I WILL REPEAT FULL TEXT SOONEST

IF NECESSARY Para

MEANWHILE YOU SHOULD KNOW THAT PARTY CONGRESS IN HANOI FOR MONTH

BEGINNING AROUND NOVEMBER 25 PROBABLY PRECLUDES PROPOSED PRELIMINARY

MISSION OF GIBBS ET AL AND MAY ALSO DELAY START OF YOURS Comma WHICH

WE SUGGESTED BE WEEK OF JANUARY 17 BEST REGARDS

VOTAW


B. Votaw

GBVotaw: cl Programs CLEARANCES AND COPY DISTRIBUTION:

CHECKED FOR DISPATCH :

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Vietnam - JBRD / IDA Programs / Missions - 1975 I 1977 Correspondence - Volume I

Document Date

01 November, 1976

Correspondents I Participants To: Votaw From Baneth

Subject / Title Economic mission preparation


Additional Comments

Document Type

Incoming Telex

The Wortd Bank Group


Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


._ ,... -- ·--r'

TO:

FROM :

SUOJECT:

•\ ,

WOrlllJ !3ANK / 11 1 1: r!t-!ATIONAL FIi !f1. t JC:E c;,:,rwc,ft,, 1 !:;·J

OFFICE fVl Ef\~Of~/-\1 ~Olli \~ Hr. Owe/' T . W.

/ . ·Price ():.; .· Nov mbe r 1, 19 76

)t{/ /J/, /)) t.1-' J~ -I // J. F. 1}:f sucur

Vietnam Discussions ' / ) j

:floqP:t/YIS J -

1. . As requested , I me t Friday morning with Mr. Gi~bs, Miss ~urphy and Hiss Christina Rehlen of SIDA . The mee tings r,m ged over a large numhcr of topics . While dissppointing in terms of specific projec t proposals , it was most useful to ge t a f e l of the problems encGu1\tcred by peop l e sudi as Miss Rehlen who have actua lJ.y·workcd on projects in Vie tnam .

Discussions wi th Mi ~s Rehlen

The Pulp and Pape r Project

,. Miss Rehl en gave som~"details on the Swedi sh paper and pulp project which is now under i mplementation on a site some 150 miles North of Hanoi. Site preparation ha s been completed and work has start ed on foundations. · The i mmediate capacity of the plant i s t he producti on o f 50,000 tons of paper per annum with a possibility of future expansion o f 70,000-90,000 tons. The Foreign Exchan3e ~o~ponent of the proj ect is $250 million and during cons truct ion and running up of the pl<':_nt some 230 foriegn ers (500 p ople including famil j es ) will be working in Vietnnm . The plant is to us e initially bamboo and local trees as raw materi a l , h u t the project will also include pine plant for future us e . Research on s uc l1 plantation is built into the proj ect and will be based on ea r lie~ French research.

. •/ The :Hinistry of Light Industry is in charge of t he proje'c t anc

has form ed a Project Management Unit unde r a Projec t Director t·o run th e proj ect. The Proj ect Director has been involved with the project rigl1t from the feasibil ity study and is sl<1t:e2 to beco::ie t!1 2 Director o[ th e pulp and pape r project after co;;-,p letion in e,rly l'J7 ° . ~-!uch of th e work bein~ done on the side i s done by lab~r i11tensive me t jocis and use s 6 , 000 worke r s . In the f uture ·some 7,000-8 , 000 pecple will be c~ploy cd jn th f' forestside of the opera tions \,h i ch will be kC" pt r easonably l c::bo r intensj,·(' but the process i ng plant . ,il l be a modern pusli··button job (hG\·7c· •cr, it \,' j 1 ·L

not employ computer control sy s tems) . Forestry operations wi ll be un der the Ministry of Forests .

I .

/ Hr . Price - 2 - November 1, 1976

General Points of Discussion

International Competitive Bidding ( ICB)

7 . International compe titive bidding was used in the tendcrin 1; of the processing plant com~onents . The bid documents were prepared in Sweden by Swedish consultants who formed part of a comm'.i.ttee consist in 1. of 2 SIDA staff , the 2 con s ultant s and the commercial attache of the Victn~m Embassy in Stockho]m . Vietnam engineers worked closeJy 1-:ith the consultants on these documents whi~h were prepared in tnglish. l~ilc tic IC3 r u le was generally followed, the US was excl1ded frorn bidding , and a~ard of the various equipment items in some cases was m2de n o t on the basis of lowest bids , but other consideration took priority . For ex2.1:iple , if t raining was t o be given to future p]ant operators then restri~tions on the country of origin were applied during bid evalua tion . For instance, for one particular equipment item , West Ge rmany was the lowest bidder but since Vietnam does not maintain an Embassy in h'est Germany, th e Viet r.a::1 authorities were not prepared to accept the 1,1e st German bid which inclu ded t raining in West Germany , and the award went to a .S1-:edish firm.

8. Of the equipment supplied, 65 % was supplied by Swedish firs and t h e balance· by firms from Japan, S1,,et zerland , West Ger.nany and othc~rs .

Language Problems

9 . SIDA found meetinr,s in Hanoi difficult because many o f the professional staff had rec e ived their training in either Russia or Ci1i1~, and apart from Vietnamese only spoke thes e two fo r eign langu.1ges. ~cctin ~ were therefore boring , lengthy and rather for.nal ,-:i th the S\,edish 8roup sitting along one side of a t a ble and the Vietnam side along the other with the interpreter in the middl'e·,: The Bank may therefore well . take: i n terpreter needs into consideration 1,·hen sending mission

Pro ject Selection Criteria

10. Hiss Rehlen said that project ·selection criteria used ·"·en~ n()t based on the traditiona] economic analysis us din th e Renk and els •where in the West . Rather selection was bas ed on perceived physical ol>jcctj\"C' S , e . g . the production of paper or whatever the case nay be , and that tl1is c uld well lead to a clash in selection of pr()j ects bet\,•een t:he B:.ml~ and th e> Vietnamese .iuthorities .

Five-Year Plan

11. A Five-Year Pla11 is in the final star,cs of prcpar;:ition. 1 t \..'a s to have been I ublished about a year ago ln:t it ,~a s delayed so th.1t the unification of North .incl South Vi .tn ;:im could be t;:iken into considerat"i.0:1. Form.:i l . J gal approv:-il of the Fl ·c-Yc.:ir Pl.:in i.s c:-:pcctcd in 1ove11:bcr , 19"/(, nnd the Pl;in may well form a good starting point for the ll.:mk' s ccono?:dc mission in J,,nu ary.

: .

j

I I

/

Hr. Price - 3 - November 1, 1976

Bilateral Aid

12. As expected, China and Russia are the m.:1jor aid sources in Vietnam . China tends to specialize in agricultural projects and Russi <l in industrial projects. Small bilateral programs, from the lfortherlam!~ ~in d other W. Europ ean ~ountries were ongoing .

Agriculture

13. I asked Miss Rehlen about her impression ~ bout the agricultu ra l sector but obviously she \:rnsn 't' well infor;ned on this, but she said th a t all agricul tural production- was based on communes and that the commun e workers were allowed to keep 5% of the area for private produ c tion .

Private Foreign Capital

14. Miss Rehlen said that GOV would welcome private forei gn in-ves tment in industrial, expert-oriented projects.

Logistics and Communication

15. Miss Rehlen said that these were very difficult in Vietnam that one needs permits to go anywhere and that it was difficult to obtain visas , travel permits , etc.

Perceived Project Priorities

16. Miss Rehlen said that the three major Vietnamese project pri orit ies were:

a) the Hanoi-Saigon r ai!road line includ ing brid ges, permanent way, e tc;

b) r epairs and expansion of a key bridge near Hanoi;

c) the SIDA paper and pul~ proj ect; and

d) Miss Rehren said also that there is much int e r es t in a s t ee l works and in fact 2 Swedish consultants h~d been enga ~cd to do a feasibility study on the establishment o f a st e0 J industry in Vietnam.

Haiphong Harbor

17. Miss Rehlen again and again refe rred to delay s of the mov emen t of goods in Haiphong Ha rbor. In fact much equip ient wa s be ing Jo s t :rn <l some of the equi pment for the Swedish pro_i C'c t· whi ch h.J cl c1rriv cd l i1 c;t yc::i r was sti!l s itting on tl1c docks . The delay wn s not due to corru ption or sabotage but ma inly due to poor ndminist:r:1ti o11 nncl n::1n:1geme11 t . Sh~ a p ·t·,!d with Mr . G:ibhs ' c omment tha t n ports prc•j cct inc ludinr, hoth .: physica l compon ent: and yh e cnr,,1r,cmc nt o [ s pecinl :i st~~ in thC' movcn: nt of goocls :i n d ports ndm1nistr.1t:ion could be :1 top l riori t y pn1j ec t th,1t the ll ·ink mi ght well h.Jvc n gooJ l ook nt .

/

~ . /

, . Mr . Price - 4 - November 1, 1976

Feasibility Studies

18 . Hiss Rehlen thought that a proj ec t preparation project perhaps · might be a good idea, but it would be difficult for foreibn specialists to get data and also that travel and language restrictions would make work in Vietnam difficult. Because of diff erent perceptions on project sc]ec tion criteria, any assistRnce in feasibility st~dies would have to be · restrictc<l to physical project planning.

JFLesueur/cjc

cc: Messrs. Vergin, Gibbs

{

. , ..

FORM NO. 27 (11-75)

TO: HAWKINS GUEST IN

MANDARIN HOTEL

; ;;;,; /)f;;1., /~__,! ) WORLD BANK/ IFC u

OUTGOING MESSAGE FORM (TE LE GRAM /CABLE/TELEX)

/)u D IBRD

01DA

D IFC

D ICSID

PAGE 1 OF TWO PAGES ;) {) DATE: OCTOBER 29, 1976

ORIGINATOR'S EXT.: LT (2103)

COUNTRY: HONG KONG CLASS OF SERVICE:

LTL- /4:R CABLE NO. & TEXT: SINCE ALL PARTIES AGREE YOU ARE BEST OF MANY CANDIDATES CONSIDERED AND

REFERENCE :

DRAFTED BY:

WE ASSUME YOU STILL ENTHUSIASTIC COMMA HAVE NOTIFIED HANOI THAT YOU

WILL LEAD ECONOMIC MISSION BEGINNING AROUNG JANUARY 17 AND REQUESTED

THEIR CONFIRMATION OF TIMING STOP LETTER OUTLINING GENERAL OBJECTIVES

OF ECONOMIC MISSIONS AND BASIC INFORMATION REQUIREMENTS SENT WITH SAMPLE

REPORTS ON BURMA, INDIA, LAOS AND YUGOSLAVIA WEEK AGO VIA PARIS PARA

PLEASE EXCUSE MY DELAY IN FINALIZING SELECTION AND THIS HASTY NOTIFICATION

STOP THERE HAS NEVER BEEN SLIGHTEST DOUBT WITHIN REGIONAL MANAGEMENT

THAT YOU WERE CANDIDATE OF CHOICE, ONCE YOUR INTEREST CONFIRMED LAST

MONTH STOP BECAUSE OF WIDESPREAD INTEREST IN SUBJEC~EYE SOUGHT AND

READILY OBTAINED CONSENSUS AND SUPPORT OUTSIDE REGION BEFORE MAKING

FINAL DECISION PARA AS EYE BELIEVE YOU KNOW, WE DISCUSSED PRELIMINARY

MISSION WITH VN AUTHORITIES IN MANILA STOP THEY WELCOMED THIS AND URGED

VISIT BEFORE NOVEMBER 20 WHICH EYE AM ALSO TRYING TO ARRANGE DESPITE YOUR

UNAVAILABILITY THEN STOP HAVE IN MIND GIBBS, A FRENCH SPEAKING PERSON WHO

WILL ALSO BE PART OF JANUARY MISSION BUT HAS NOT YET BEEN IDENTIFIED , AND

BANETH STOP YOU MAY WONDER ABOUT BANETH'S INVOLVEMENT WHICH IS ONE SHOT

PROPOSITION WITH OBVIOUS ADVANTAGES OF BANK AND COUNTRY BACKGROUND THAT

WILL NOT BE REPEATED IN JANUARY, RESPONDS TO HIS DEEP CONCERN AND REQUEST,

IN NO WAY REFLECTS SUPERVISION OF OR INTERFERENCE IN JANUARY MISSION AND

BUILDS ON CONTACTS GIGI REESTABLISHED DURING SIX WEEK SOJOURN THIS SUMMER

PARA RE OTHER MEMBERS OF JANUARY TEAM, HAVE REQUESTED LETHEM BUT MEETING

RESISTANCE STOP HAVE YOUR OTHER PREFERENCES FROM GIBBS AND WILL DO BEST

TO IDENTIFY STRONG TEAM FOR YOUR REVIEW ON RETURN STOP YOUR FURTHER

SUGGESTIONS MOST WELCOME EITHER BY CABLE OR HOME OR OFFICE PHONE STOP TRUST

TRIP GOING WELL DESPITE NEGATIVE ECHOES MY MANILA ADVENTURES STOP NOT TO BE TRANSMITTED

AUTHORIZED BY (Name) :

G. Votaw (Vietnam Econ. Mission DEPARTMENT:

CLEARANCES AND COPY DISTRIBUTION: SIGNATURE (Of individual authorized to approve):



PINK - File Copy; WHITE - Transmittal Copy; YELLOW - Bi ll Copy

FORM NO . 27 (11-75)

TO: HAWKINS

WORLD BANK/ IFC


DATE:

ORIGINATOR'S EXT. :

COUNTRY: HONG KONG CLASS OF SERVICE:

CABLE NO. & TEXT:

REFERENCE:

DRAFTED BY:

PAGE TWO OF TWO PAGES

WARM REGARDS TO HINKLE; BOVET AND BOTH HAWKINS STOP PLEASE CONFIRM

RECEIPT OF THIS CABLE.

.!

VOTAW

INTBAFRAD

NOT TO BE TRANSMITTED AUTHORIZED BY (Name):

G. Votaw (Vietnam Econ. Mission) Gregorv B. Votaw. Director

D IBRD

01DA

D IFC

D ICSID

G. Votaw DEPARTMENT: ('

East Asia & Pacific Programs CLEARANCES AND COPY DISTRIBUTION:

cc: Messrs: Bell, Hasan, Bussink, Gibbs

SIGNATURE (Ot' iJ1~al authorized tofPii!Pvft/ : r:-f I - .._ 0 ~ \ c_;;;, \I <y\ C)Jv-.-

e,$ECTION BELOW ~OR USE OF CABLE SECTION



I

FORM NO. 27 411-75)

TO:

COUNTRY:

WORLD BANK/IC~/ h/b JcJa•Jf{,~}~) OUTGOING MESSAGE FORM O O IDA

D IFC (TELEGRAM/CABLE/TELEX) 0 ICSID

MR TRAN DUONG VICE MINISTER STATE BANK OF VIETNAM VIETBANK HANOI VIETNAM

PAGE 1 of TWO PAGES DATE:

ORIGINATOR'S EXT. :

CLASS OF SERVICE:

OCTOBER 29, 1976

2103

FULL RATE k CABLE NO. & TEXT: FURTHER TO MANILA DISCUSSIONS I WISH TO REPORT OUR FURTHER PLANNING FOR

REFERENCE:

DRAFTED BY:

ECONOMIC MISSION STOP HAVE SELECTED EDWARD HAWKIN~ SENIOR ECONOMIST IN

THIS DEPARTMENT WITH TEN YEARS BANK EXPERIENCE, TO LEAD MISSION OF

FOUR OR FIVE PROFESSIONALS STOP OTHER MISSION MEMBERS WILL BE INDICATED

TO YOU WHEN SELECTION COMPLETED AND WELL BEFORE MISSION STOP WOULD

APPRECIATE YOUR CABLED CONFIRMATION THAT WEEK BEGINNING JANUARY 17

SUITABLE FROM YOUR VIEWPOINT FOR MISSION TO BEGIN ITS WORK OF APPROXI

MATELY THREE WEEKS IN VIET-NAM STOP I MYSELF WOULD JOIN MISSION FOR ITS

FINAL WEEK, BEGINNING EARLY FEBRUARY PARA TO HELP YOU PREPARE FOR MISSION

HAVE MAILED FROM PARIS SAMPLING OF RECENT BANK REPORTS ON BURMA, INDIA,

LAOS AND YUGOSLAVIA, REPRESENTING WIDE FLEXIBILITY OF COVERAGE TO SUIT

SPECIFIC COUNTRY SITUATIONS AND TYPE OF STATISTICS AND OTHER INFORMATION

NECESSARY FOR SUCH REPORTS STOP THESE AND COVERING LETTER SHOULD REACH

YOU WITHIN NEXT WEEK, AND WE WOULD APPRECIATE CABLED CONFIRMATION FROM

YOU WHEN THEY ARRIVE PARA IN MANILA WE ALSO SUGGESTED VALUE OF SHORT

PRELIMINARY MISSION FOR FEW DAYS IN NOVEMBER STOP UNFORTUNATELY HAWKINS

UNABLE TO VISIT HANOI THEN BUT I COULD ARRANGE FOUR OR FIVE DAY VISIT

OF JEAN BANETH, DIRECTOR OF THE BANK' S RESIDENT MISSION IN DJAKARTA

WHOM YOU KNOW, NICK GIBBS, REGIONAL DIVISION CHIEF FOR INDOCHINA

COUNTRIES, AND THIRD PERSON BEING SELECTED WHO WOULD ALSO BE MEMBER

OF PROPOSED JANUARY MISSION STOP WILL TRY TO ARRANGE THIS PRELIMINARY

MISSION TO ARRIVE IN HANOI WEEK OF NOVEMBER 15, THE EXACT DATE DEPENDING

ON VISA ARRANGEMENTS AND FLIGHT AVAILABILITY STOP THIS DATE SELECTED TO

ACCOMMODATE YOUR REQUEST THAT PRELIMINARY VISIT OCCUR BEFORE NOVEMBER 20

BUT WILL TRY TO ARRANGE LATER DATE NOVEMBER OR EARLY DECEMBER IF THAT

WOULD BE MORE CONVENIENT AT YOUR END PARA PLEASE CABLE WHETHER YOU PREFER NOT TO BE TRANSMITTED

AUTHORIZED BY (Name):

GVotaw (Vietnam Economic Mission) DEPARTMENT:

CLEARANCES AND COPY DISTRIBUTION : SIGNATURE (Of indi vidual authorized to approve):


CHECKED FOR DISPATCH :

PINK - File Copy; WHITE - Transmittal Copy; YELLOW - Bil l Copy

I

FORM NO. 27 '"(11-75)

TO:MR TRAN DUONG

WORLD BANK/ IFC

OUTGOING MESSAGE FORM (TE LE GRAM /CABLE/TELEX)

DATE:

ORIGINATOR'S EXT.:

COUNTRY: VIETNAM

CAB LE NO. & TEXT: PAGE 2 of 2 PAGES

CLASS OF SERVICE:

REFERENCE :

DRAFTED BY:

TO ISSUE VISAS IN PARIS OR VIENTIANE FOR TRAVELLERS FROM WASHINGTON

STOP ASSUME BANETH VISA WOULD BE IN VIENTIANE SINCE HE WOULD TRAVEL

FROM DJAKARTA PARA I REALIZE TIME IS SHORT AND WOULD THEREFORE APPRECIATE

YOUR CABLED RESPONSE FIRST DAYS NEXT WEEK.

GVotaw:diw

G. Votaw

WITH BEST WISHES

VOTAW INTBAFRAD


(Vie tnam Economic Missio) Gregory B. Votaw, Director


Cc: Messrs: Bell, Hasan, Bussink, Hawkins (o/r), Gibbs,

PINK - File Copy; WHITE· Transmittal Copy; YELLOW - Bill Copy

81BRD

01DA

OrFc D ICSID

INTE RNATIDNAL BANK FOR RECONSTRUCTION AND DEVELOPMbNT

1818 H Street, N.W, Wash.inl,jton, D . C . 20433. U.S.A. } l· . / I)?-- _ ;;. .7 /"' ~/ l) ~ <.-= . ,,.,,__,._, __ . °"' """·· ... ,,~=//(i/ / /ti./} J / ,We) V, ,

Mr . Tran Duong Vice Minister State Bank of Viet Nam Hanoi Socialist Republi c of Viet Nam

Dear Mr . Minister:

October 22 , 19 76

Further to our dis cussion in Manila , I am forwarding to you under separate cover copies of economic reports prepared by the World Bank staff on a few of its member countries . Although, as you will see , t he coverage, emphasis, and analytical content of the individual reports vary greatly according to the particular circumstances of each country, I think these reports will give you and your colleagues an indication of the range of topics we normally attempt to cover.

In this context I should perhaps explain the general ob jectives and scope of Bank country economic work. Country economic analysis by the Bank's staff is intended to provide Bank/IDA management , E ecutive Directors and mewber countries with basic economic information and an analytical assessment of the development prospects of the country conce rned; they include statistical and other information on present and expected future trends bearing on the country's development prospects and thus provide a basis for formulating lending programs and for agreement with the Government on Lhe ways in which Bank assistance could be most effectively provided . One important element in a continuing program of economic studies is the preparation of a general economic report, which in the case of larger member countries are normally undertaken annually; the overall program of economic studies usually also includes special reports dealing with important sectors or problems.

The general econD'Ill.ic reports of the Bank usually include :

(a ) A description of geographical, demographic , institutional characteristics of the country, especially if this information is not included in a previous report .

(b ) An analysis of the country's development objectives against the background of its physical and human resources and the development constraints it is facing . In cases where the Government has recent l y prepared a comprehensive development plan of the economy, t his analysis would normally be focussed on t he Plan .

- 2 -

( c) An analysis of major socio-economic developments and trends over the last 3 to 10 years, and a discussion of the prospects for the next 3 to 10 years. This analys is generally covers population growth rate and other characteristics; employment; the level of national income (net material product), its growth in recent years and distribution by type of activities; production trends in major sectors; public sector receipts and expenditures; level and composition of external trade; and the balance of international payments.

( d) For the above analysis, the Bank staff will rely primarily on economic and social data provided by the Government. Normally, these data are summarized in a statistical appendix co~taining the following sections:

1. Area, Population, Employment

2. National Accounts

3. Foreign Trade and Balance of Payments

4. External Aid and Debt

5. Public Finance

6 . Money, Credit, Prices

7. Agricultural Statistics

8. Statistics on Other Sectors

The statistical appendix to the report on the "Economic Situation and Prospects of India" gives a good example of type of data normally included. We usually make some effort to standardize the.format for presentation purposes.

( e) The above analysis then provides the necessary background to an assessment of domestic and external financing requirements and, within this context, an analysis of the country's external debt profile, appropriate borrowing t erms , and the best way in which the World Bank Group can provide financial and technical assistance .

To accomplish these general objectives we try to be as flexible as possible in practice; thus the content of any particular economic report reflects to a large extent particular circumstances of the member country at the time it is written . Furthermore, we would, of course, expect to a chieve a better and better understanding of a country ' s economic problems

- 3 -

and prospect s only after a di a ] ot,LH· on C'.Co,wmi. c issues ove r L me wiL1 1 th e Governme nt.: . The r eports on lncb a and Yue,CJsL1vj a wh ich we ilrc fon1(.l nLLn g to you, for cxarr.pl c, are amo n g th e mu::;t coir,pr ch ,n s ive reports prep:1rcd by th e Dank and reflect man y yea rs of Bank operations in tl1 csc countries; th e report on Laos , on th e o the r ham! , r epresen t s tho fi.nclin r,s oC t·lie Ba nk ' s first econ o?:iic mi.ssion t o t he c ountry . Tile di a l ogu • on cconoud.c: i ssues can , hor,,ever , be f ac:i lit a l e d ·s-Lenif:i.cantly if it tak es pla c L: aeai.nst th e back g round of a s uh stan !· i:-d body of statisti.caJ inforn,oti a a.nd other written r eports . It i s wi.tl1 this consideration iu mlnd that I am se nd ing you th e sampJ.c ma t erials for your c xami1ation .

Cleared with & cc:

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Directo r , Country I'i·o t; re.rns Dc>p,n:tmc:n t East M:i.a and Pac ifi c Pc gio1tal Of fj_cc

Messrs. Vo t aw P . Hasan W. Bussink

N. Gibbs E. Hawkins

Mr. Jean P. Carriere Director World Bank European Office 66 Avenue d'lena 75116 Paris France

Dear Jean:

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October 22, 1976

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As you know the Socialist Republic of Viet Nam has succeeded to the membership of South Viet Nam in the Bank, IDA, and IFC. We are establishing normal working relations with the Government with a view to starting IDA lending operations, hopefully in FY78.

·, In the course of establishing relations with the Government we shall need to exchange a good deal of information. While cable communications between Washington and Hanoi appear to be working well, we have been less successful with the mail service. It appears that at the present time the U.S Postal Service is unable to accept letters or packages weighing more than two ounces and a package of documents from the EDI introducing the Government to the EDI was recently returned.

In preparation for an econOlllic mission which is being organized to visit Viet Nam in January 1977, we have put together a selection of Bank economic reports to indicate to the Government the content of reports Bank economic missions prepare. Both these packages are over the two-ounce limit and cannot, of course, be accepted by the mail service here.

I understand that there are no weight restrictions on mail leaving Paris for Viet Nam. With this in mind, the Vietnamese delegation to the Manila meetings suggested that we route such mail through Paris, and I would like to seek the cooperation of your office in doing so. If there is a weight restriction, then preaumably the only alternative would be for you to pass our mail through the Embassy of Viet Nam in Paris. However, I leave it to you to determine which 1s the most expeditious procedure to follow.

As the package of economic reports is urgently needed in Hanoi (together with the EDI documentation mentioned earlier), I am taking the liberty of sending bo t h "packages" to you under separate cover with the request that you kindly arrange to have them forwarded to Hanoi, either through the normal mail services, if possible, or through the Embassy of Viet Nam if you judge that to be the better route.

I hope that we will soon be able to send all mail directly to Hanoi and that, in the meantime, arrangements suggested in this letter will not place an undue

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burden on your office. Your help will greatly facilitate the 'start up' process and we are most grateful for your assistance.

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~ANI LA CABLE 1642

OCTOBER 8, 1976

TO INTBAFRAD

FOR GIBBS

Distribution: Mr . Gibbs

Mr. Kirmani

ALPHA FOR YOUR INFORMATION TALKS WITH VIETNAMESE BUSINESS-LIKE

AND CORDIAL . TENTATIVELY AGREED ON ECONOMIC AND PROJECT

IDENTIFICATION MISSION JANUARY. CHIEF IF ALREADY FOUND SHOULD

PAY PRELIMINARY VISIT NOVEMBER 10 TO 20 WHEN I INTEND TO

GO TOO AS FINAL APPEARANCE IN PROLOGUE .

BETA MISSION CHIEF SHOULD BE DYNAMIC I MAGINATI VE FLEXIBLE AND

RE LIABLE. THERE ARE THE OBVIOUS NATIONALI TY EXCL USIONS .

FRENCH- SPEAKING HIG HLY DESIRABLE BUT NOT I ND ISP ENSABLE.

GAMMA TO GIVE THEM IDEA OF BANK MISS ION I NTEREST PLEASE

AIRMAIL I MMEDIATELY, PROBA9LY VI A PAR IS OFFICE TO TRAN DUONG

- BANQUE NATIONAL£ DU VI ETNAM - HANO I, FOLLOv/ING REPORTS:

LAOS ECONOMIC - ENGLISH AND FRENCH

BURM A ECONOMIC - 1972

INDIA ECONOMIC 1976

BURM A APPRAISAL, RAILWAYS AN D RI V~R TRANSPORT

SRI LANKA AGRICULTURAL SECTOR CRED IT

ONE INDIAN RURAL CREDIT PROJECT

PUSRI I V ( INDONESIA FERTILIZER) APPRAISAL

REGARDS

BANETH

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1. Before Mr. Bell left Washington, he instructed m to take up. as , a matter of some urgency t the question of sta.f f ing fOT work in Viet-Nam

... as eoon as the me ership issue was resolved. As you know, at the: Board Meeting of September 22, the membership question was aett1ed and we now need to deal with the reactivation of our relationship with Viet-Nam~ a country whose 44 million population is quivalent to that of Thailand or The Philippines. There is no provision for this work in the Region's FY77 budget.

2. I believe we should start this new relation hip on, a modest scale. More SJ)ecif ically, I believe a core group of three s ,taff ar needed now (one loan offic rand possibly two econ ists) to start work on the formulation of the Bank's development assistance progratu in Viet-Nam. This staff, together with taff dr 311D frOlil work of a lesser priority, would undertake an initial economic mission ve are tentativ ly planning

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3. When Mr .. Bell met th Viet-Namese delegation at the ADB meeting in ~- ...-·L .• late April, he explained how the Bank/IDA ould begin its activities once .-., ,._f"' ~

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the formal issues of ember h.ip were resolved. Be laid particular emphasis ~ il on th ne d for an early economic mission. This proposal will be . discussed '"'\" i

with the Viet-Namese delegation in Manila, but we have every indication ~ t. that they will press us to move as quickly as we can arrange to do so. ,.... ..... 1 • The Roard's brief d:l.scu sion of membership last Tuesday also de clear 1

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that both opponents of Viet-Namese membership (mainly the USA) and proponents -~,,. will expect the Bank staff to develop a knowledg of the economy and its

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aid requirements quickly. Thus. we have ill l!lind a mission of 5-6 persons, - 1 ,1

including 2-3 sector speci lists. for a four-week ~sit to the country in • .;! · r '"1.: January/February and a fairly detailed economic report at least in draft ··

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form, by June/July.

4. It is lso cl ar that Viet-Nam and a number of Part I countries will . ~ press us to begin lending operations promptly to assist the reconstruction . ~. ~ effort. As you will se from the attached Annual Meeting Briefing Paper, J, ._. w see no prospect of lending until IDA Vis assured ( nd allocated), :ven f~; this has political hazards as you know, but w wet equip ourselves to begin · ~ . 1

to identify the types of projects to which both Viet-Nam and the IDA staff .. would give priority and to def~ the kinds of preparation ueces ary before

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such projects could make a serious claim on IDA V resources. respQils1b111t1 hich may b thrust upon us include an evaluation of Viet-Nam's ext rnal indebtedn~ss and int rnational coordination of future external assistance.

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• orm No. 'J.7 :,-70)

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INTERNATIONAL DEVELOPMENT

ASSOC IATION

/ ; 1 i tcf/} ,, v): · f-' INTERNATIONAL BANK FOR - C lr-JTERNAT16NAL FI NANCE

RECONSTRUCTION AND DEVHOPMENT CORPORATION /

TO:

COUNTRY:

VAN DER HEIJDEN

INTBAFR.AD

BANGKOK

THAILAND

~3~

OUT GO I NG WIRE

DATE:

CLASS OF

SERVICE:

~ 23, 1976

F~ (2103)

TEXT: FOLLOWING THREE CABLES SENT TODAY COLON AAA TOH. E. SAWET QUOTE TH.A1~CS Cable No.:

AUTHORIZED BY:

NAME

DEPT.

YOUR CONFIRMATION OF MEETING WITH MR. BELL AND MYSELF ON SUNDAY OCTOBER THREE

AT 0900 HOURS STOP SENIOR VICE PRESIDENT KNAPP WOULD ALSO LIKE TO MEET YOU

AND SUGGESTS 1630 TO 1700 HOURS ON SATURDAY OCTOBER TWO STOP PLEASE CONFIRM

PROPOS ED TIME FOR KNAPP MEETI NG OR SUGGEST ALTERNATIVE STOP UNQUOTE

BBB TO BOUSBONG SOUVANNAVONG QUOTE THANKS YOUR CABLE CONFIRMING ~.EETING WITH

REGIONAL VICE PRESIDENT BELL AND MYSELF ON MONDAY OCTOBER FOUR AT 1630 HOURS

pTOP SEN IOR VICE PRESIDENT KNAPP WOULD ALSO LIKE TO MEET YOU AND SUGGESTS

160G TO 1630 HOURS ON SATURDAY OCTOBER TWO STOP PLEASE CONFIR}I PROPOSED

TIME FOR K..l\JAPP "1EETING OR AN ALTERNATIVE SUGGESTION STOP UNQUOTE CCC

TO HOANG ANH COMMA VIETBANK COMMA HANOI AND HOCHIMINH CITY QUOTE FURTHER

TO MY CABLE OF SEPTEMBER 17 COMMA SENIOR VICE PRES IDENT KNAPP WOULD LIKE

TO MEET YOU AND SUGGESTS 1700 TO 1730 HOURS ON SATURDAY OCTOBER TWO STOP

PLEASE CONFI RM PROPOSED TIME FOR KNAPP MEETING OR PROP OSE ALTERNAT IVE TU1E

STOP PARA WOULD ALSO APPRECIATE YOUR EARLY CONFIRNATION OF MEETING WITH REGIONAL

VICE PRESIDENT BELL PROPOSED FOR SUNDAY AFTERNOON OCTOBER THREE STOP COULD

YOU PLEASE SUGGEST SPECIFIC TIME FOR BELL MEETING STOP UNQUOTE REGMDS

VOTAW INTBAFRAD


Votaw, Acting RVP L.~--r- CLEARANCES AND COPY DISTRI BUTION,

& Pa~i;r~~ ~ ~ Messrs : Thavil Khutrakul Gibbs

SIGNATURE-----------------------1 <SIGNATURE OF I NDIVIDUA L AUTHORIZED TO APPROVE>

~ ~,,· \ .. )

REFERENCE: GBVotaw:diw For Use By Commu nications Secii~"--- - -

ORIGINAL (Fife Copy)

Form No. 27 (3-70)


ASSOCIATION

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT

OUTGOING WIRE

TO: BOOK OF TWO

HOANG ANH DATE: SEPTEMBER 23, 1976

HOANG ANH MINISTER IN CHANGE OF THE MINISTER IN CHARGE O~LASS OF


THE STATE BANK OF VIETMAN

SERVICE: FULL RATE (2103)

HANOI VIETBANK, COUNTRY: VIETNAM HOCHIMINH CITY, VIETNAM

TEXT: Cable No.: FURTHER TO MY CABLE OF SEPTEMBER 17 COMMA SENIOR VICE PRES ID ENT KNAPP

AUTHORIZED BY:

NAME

DEPT.

WOULD LIKE TO MEET YOU AND SUGGEST 1700 TO 1730 HOURS ON SATURDAY

OCTOBER TWO STOP PLEASE CONFIRM PROPOSED TIME FOR KNAPP MEETING OR

PROPOSE ALTERNATIVE TIME STOP PARA WOULD ALSO APPRECIATE YOUR EARLY

CONFIRMATION OF MEETING WITH REGIONAL VICE PRESIDENT BELL PROPOSED

FOR SUNDAY AFTERNOON OCTOBER THREE STOP COULD YOU PLEASE SUGGEST

SPECIFIC TIME FOR BELL MEETING STOP BEST REGARDS

VOTAW

INTBAFRAD

NOT TO BE TRANSMITIED

Gregory B. Votaw, Acting RVP

3~ CLEARANCES AND COPY DISTRIBUTION:

Messrs: Thavil Khutrakul Gibbs

SIGNATURE_---:::----------------------1 ( SIGNATURE OF INDIVIDUAL AUTHORIZED TO APPROVE>

rlv't-

REFERENCE: GBVotaw:diw For Use By Communications Section

ORIGINAL (File Copy) G (IMPORTANT: See Secretaries Guide for preparing form) Checked for Dispatch:-------------

DECLASSIFIED

NOV 1 5 2019

WBG ARCHIVES

1976 ANNUAL MEETING BRIEF

VIET-NAM

CONFIDENTIAL

[Note: This brief is written on the assumption that on September 21 the Executive Directors will approve the President's recommendation on Viet-Nam membership, incorporated in President's memorandum R76-221, dated September 7, 1976 (copy attached).]

1. Issues Likely to be Raised by the Delegation

1.01 Lending. The Delegation may inquire about our intentions regarding lending operations in Viet-Nam, and the probable amount and timing of any such lending.

1.02 The 1973 per capita income of Viet-Nam is estimated at about $115 (after deducting estimated foreign aid to South Viet-Nam from "gross" GNP estimates). Thus, as far as The Atlas is concerned, the country is in the same broad category as India, Pakistan and Sri Lanka, and on grounds of poverty we would consider Viet-Nam eligible for IDA lending. On present information we have no reason to consider Viet-Nam creditworthy for Bank lending.

1.03 Since initial lending to Viet-Nam is very much dependent on the success and timing of IDA V, it will be difficult to indicate what order of magnitude could be lent or when. If the weighted average annual per capita IDA lending to similar countries was $1.35 in FY75-77, lending to Viet-Nam should be at an annual level of $55-60 million minimum. To this should be added (a) whatever increase is finally agreed for IDA V compared to IDA IV and (b) whatever special allocation may be appropriate to assist in war reconstruction and to allow for the fact that Viet-Nam is in the middle-size range of countries whose per capita allocations from IDA tend to be larger than allocations to largest borrowers such as India. Assuming success with the Fifth Replenishment, IDA could plan on lending $60 million in FY78 and at least double that amount by FY80, provided the Government is cooperative in providing project information and in following procurement procedures.

1.04 Mr. Bell spoke to the Vietnamese delegation at the ADB meeting last April in Jakarta along the following lines: The first step in Viet-Nam, as in other countries, would be for the Bank to obtain a clear understanding of the country's economic situation and needs and of its plans. This would be the basis for agreement on the ways in which Bank assistance could be provided. This understanding could best be obtained through a visit of a Bank economic team to the country. Following that visit further work and discussion would probably be required jointly to

- L ·-

identify, plan and evaluaLc spc-if l c projcrts and proerams o[ lilgh prlorily for whlch IDA coulu provide as:Jlf,t.rnre. \.Jc hnve plnnncd Lentntlvely to send an economic mission (4-6 p'·rsons ) to Vi.et-Nam i.n .January 1977; Lhis-tl.n:rng LS subJ 'Ct to the conc- 11,r encc of the V~etn- mese author iti.es, which we"'p'tan-to serl<: in l~a , after whlch staffine wi ll be

1.rrne up .

1. 05 If the m LBoion is ::;uccessful in its work, i.L i s li kely that a reconstruc tion project coul.cl be identified and appra i sed quite quickly. (Umbri.cht ' s missi.on for SecreLary Walrlheim has alr<:>ady def i. ned some urgr>nt needs .) Thus, a credit toward tile end of calendar 1977 seems possible - admittedly on the basis of several qui.Le optimistic assumptions - provid ed IDA has funds ava ilable f or Vi et-Nam by then.

2 . Issues to be Raised by Messrs . McNamara / Knapp

2 . 01 Welcome. Messrs. McNamara / Knapp may wish t o welcome t he delega-tion of the So ialist Republic of Viet- Nam. It is obv i ously the first t i me that representativ es from Viet-Nam wll J. participate i n a Bank Annual Meet ing since reunification July 2 .

2.0 2 Econ omic Mission . As Mr . Bell Indicated in Jakarta, the first step towa rds providing assistance would be a visi t of a Bank economic t eam to Viet-Nam (pa ra. 1.04). Messrs. McNamara / Knapp may wish to seek confirmation that Viet-Nam is agreeaLle t o 1ecE:: iving an ecoriorn ic mis s i on . The mission we have tentatively plann ed could beg in its visit in January and would stay in Viet-Nam for about four weeks.

..

Ease Asia & Pacific Region Country Programs Department 09/ 20 /76

- 3 -

DELEGATION/BIOGRAPHIC DATA .

VIET-NAM

The Delegation

Mr • . Dao Viet Doan

Mr. Nguyen Manh Thuy

Mr. Tranduong

Mr. Nguyen Lam

Mr. Le Kim Chung

Mr. Sao Dae Cuong

Biographic Data - Chief of Delegation

MR. TRANDUONG

Governor, Bank

Alternate Governor, Bank

Governor, Fund (Chief of Delegation)

Alternate Governor, Fund

Adviser, Bank

Adviser, Fund

I

Mr. Tranduong is the Chief of the Delegation. He is a Vice Minister, a member of the Board of Directors of the State Bank of Viet-Nam and the Governor for the Socialist Republic of Viet-Nam (SRV) at the Fund. Mr. Tranduong led the SRV delegation to the ADB annual meeting in Jakarta (April 1976).

~ • • I

CONFIDENTIAL International Bank for Reconstruction and Development

International Finance Corpo·ration

FOR EXECUTIVE DIRECTORS' MEETING

FROM: The President

FOR OFFICIAL USE ONLY

DECLASSIFIED

NOV 1 5 2019

WBG ARCHIVES

VIET NAM

~or consideration on September 21, 1976

R76-221 IFC/R76:...59

September 7, 1976

1. Attached is a copy of a communication, dated August 9, 1976 and r eceived on September 2, from Mr. Hoang Anh, Minister-Director General of the State Bank of Viet Nam, in which he notifies the Bank and its affiliates that the unification of Viet Nam has beep completed on July 2, 1976, that the Socialist Republic of Viet Nam is a member of the Bank and i t s aff iliates and that the Articles of Agreement of the Bank and those of its affiliates are legally binding on the Socia_list Republic of Vi et Nam.

2. In his communication, Mr. Hoang Anh requests that this notification be brought to the attention of the Executive Directors of the Bank.

3. A similar communication was received by the IMF and has been ,brough~ to the attention of its Executive Directors; the Management of the Fund has recommended to its Executive Directors the adoption of a decision that the Socialist Republic of Viet . Nam is a member of the Fund and that the records of the Fund be amended accordingly {IMF document EBS/~6/373 of August 23, 1976). This recommendation is scheduled for consideration by the Fund's Executive Board on September 15, 1976.

4. The Republic of Viet Nam became a member of the Bank in 1956, a member of IFC in 1967, and was an original Part II member of IDA. I; will be recalled that at the time it became a member of each organization, its government's territorial control was limited t~ the southern part of Viet· Nam, while the Government of the Democratic Republic of Viet Nam exercised control over the northern part of the country. Both governments claimed sovereignty over the whole territory of Viet Nam.

5, Following the assumption of control over the southern part of the country by the Provisional Revolutionary Government of Sputh 1Vi~t ~am in

Distribution:

Executive Directors and Alternates President Senior Vice President, Operations Executive Vice President and Vice President, IFC President's Council Di rector, East Asia and Pacific, Country Programs Director, Asia Department, IFC

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

• • I 't-;'

FOR OFFICIAL USE ONLY

- 2 -

DECLASSIFIED

NOV 1 5 2019

WBG ARCHIVES CONFIDENTIAL

April 1975, the Bank and its affiliates amended their records to show South Viet Nam as their member. The government of the Republic of South Viet Nam appointed a Governor and Alternate Governor of the Bank and its affiliates.

6. A special Fund mission recently visited Viet Nam. On the basis of the information made available to the Bank by that mission, it is understood that a National Assembly elected in both the southern and northern parts of Viet Nam decided on July 2, 1976 that "Viet Nam is an independent, unified and socialist country bearing the name of the Socialist Republic of Viet Nam" and that ''pending a new constitution, the State of the Socialist Republic of Viet Nam will take the 1959 Constitution as a basis for its activities and organization". The 1959 Constitution is that of the former democratic Republic of Viet Nam. The National Assembly also decided that "with regard to the laws in force .•. of the Democratic Republic of Viet Nam and the Republic of South Viet Nam, the Governmental Council of the Socialist Republic will provide guidance for their implementation in order to conform with the practical situation". It is to be noted that the communication of Mr. Hoang Anh explicitly states that the Articles of Agreement of the Bank and those of its affiliates are legally binding on the Socialist Republic of Viet Nam.

7. The re-unification of Viet Nani in the circumstances outlined above presents the Bank and its affiliates with a situation analogous to the cases of the union of Tanganyika (a Bank member) and Zanzibar (a nonmember into the United Republics of Tanganyika and Zanzibar (now Tanza

·nia) and of the union of Egypt (an IFC member) and Syria (a non-member) into the United Arab Republic. In both cases, the State resulting from the union continued the membership of the constituent State which had been a member.

8. The Vice-President and General Counsel advises that, while general ~nternational law on these matters is not fully developed, partly because cases have occurred infrequently, it is well established that each international organization makes its own determinations, and that the practice of world-wide ·organizations suggests a preference for , maintaining membership if the State concerned wishes to retain membership and recognizes the obligations that derive from it.

9. Accordingly, I recommend that the Executive Directors approve the necessary amendment in the records of the Bank and its affiliates to show the Socialist Republic of Viet Nam as the member holding the ·shares of capital or, in the case of IDA, the subscription heretofo~e recorded in the name of the Republic of South Viet Nam.

Robert S. McNamara

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authoriution.

. .

·o.

CQNG HOA XA HQI CHU NGHTA Vlh NAM SOCIALIST REPUBLIC OF VIET NAM

NGAN HANG NHA Nl!CYC ·Vl~T NAM S _T ATE BANK OF VIETNAM

T,v sw r, vug v,rng !Head Office) , HANOI Vot1 1,1,,',.,g Ml~n Noon (Southern Office) , Ho Chi Minh City Cable a<#dteu : VIETBANK

,

Vir. Ro be rt ; re: ·A~ :ARA F1·esident

Aucust 9th, I976

In terr.a tio~1-al J3an!-c for 1eco;1s truction ar:d Develop;:;ient nnd Affiliates 1·• ~cH1~-G'I10·-.r DC 2 1 33 . : -~ - 0 , 1-: _Q I-

Dear Sir:

I 11ave been ins true ted by t:;e Go\rer:1r.1ent of t he Socialist Republic of Viet-Ifam to notify t1, e L11ternational Bank for Be construction and Develop1:1ent and .its affiliates t11at the· reunification of Vietnam has bee:1. coT.1pletee1. on July 2, I976, and tliat, accordingly, with effect f1~om tl1at date the Socialist Re,)ublic of Viet-~:am is a member of the International Bank· for Reconstruction and Develoument and ,its · affiliates and the Articles of Agreement of the International Bank for Re cons true tion an.d Developmeht and tl10se of its affiliates a-re legally binding on the Socialist Republic of Viet-!Tam.

I sl1all be grateful if you will bring this notification to the attention of the Executive Directors o.f the International Bank for Reconstruction and Development.

Sincerely yours,

STATE BA::K OF VB'J:'-1:AJ~

I I • ' I

/' ' (

EO.!CG. NTH ' Minis~~r - Director General

I

FORM NO. 27 (11-75)

WORLD BANK/IFC !tf//;(l/l A)J( OUTGOING MESSAGE FORM

(TE LE GRAM /CABLE/TELEX)

D !BRO

01DA

D IFC

D ICSID

BOOK OF TWO CABLES TO: MR HOANG ANH DATE: SEPTEMBER 17, 1976

MINISTER IN CHARGE OF THE STATE BANK OF VIETNAM

VIETBANK ORIGINATOR'S EXT.:

COUNTRY: HANOI (VIETNAM) CLASS OF SERVICE:

2103

LT~

CABLE NO. & TEXT:

WORLD BANK REGIONAL VICE PRESIDENT BELL AND EYE WOULD WELCOME AN OPPORTUNITY

• TO MEET WITH DELEGATION OF THE SOCIALIST REPUBLIC OF VIETNAM AT THEIR

EARLIEST CONVENIENCE AFTER ARRIVAL IN MANILA FOR BANK/FUND ANNUAL MEETINGS STOP

WOULD ANY TIME BETWEEN 1030 AND 1330 HOURS ON SATURDAY OCTOBER 2 OR AFTER

1200 HOURS ON SUNDAY OCTOBER 3 BE CONVENIENT QUERY IF SO PLEASE ASK

DELEGATION KNK TO SUGGEST SPECIFIC TIME STOP IF ANOTHER DAY WOULD SUIT

DELEGATION BETTER PLEASE CABLE TO SAY WHICH DAY DELEGATION PREFER STOP

ALSO PLEASE INDICATE BEST MEANS TO CONTACT DELEGATION IN MANILA STOP

WE WILL BE IN ROOM D-309 OF PHILIPPINE INTERNATIONAL CONVENTION CENTER STOP

(2) MR HOANG ANH

BEST REGARDS

VOTAW INTBAFRAD

MINISTER IN CHARGE OF THE STATE OF BANK OF VIETNAM

VIETBANK HOCHIMINH CITY (VIETNAM)

rREF~ENl~------------_.:.N.:..:O:..:T:.__:T-=O~BE=-..:TrR~A~N~S;;;M~l:;:TT;-;E;D==;,-;:;d/~'v-:l,/')bc:,,,LJ/~Q__\l~7r_1u-Q..t.~::·-l-::::,1.:::::a=-· ___ _;r;, REFERENCE: AUTHORIZED BY (Nam~: v

Viet Nam Annual Meeting <=--

DRAFTED BY: GB6vet:vmk

CLEARANCES AND COPY DISTRIBUTION :

cc: Messrs. Bell (thru Ruddy), Kirmani ,Dr. Thavil

G. B. Votaw, Acting RegionarVice President

~JtfT_k1JfJ:and Pacific Regional Office

SIGNATURE (Of individual authorized to approve) :




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'<CA. ·?li/

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Hr. David H. Bovet /

Sep c!!lber J6, 1976 ., ~ ,

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Jeannette furphy (thr1J Mr . Gibbs)

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CL-Bank-Japo.n"se Aid Com::dinadon Irc~cting

1. Hith i:cfercnce to Hr. Caobridge's me1 orandum of Auguot 30 concerning OECF / E'U!1 n.::ink lifr~D Coordination Hee ting , following ar our responses to the individual m.v1::;tions which the OECF has raised on ,

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Lending Progra;n I I , _, , • . / '/ / . / /j

( i ) Hhile we a.re not yet able to precl ct the propoftJ 6n o f Bafflt > -' lending dur r!f: Thailand'f.1 Fourth Five-Year Plan period which will be dcvo!:-=:d to agr:t cultural pcojects, it i•~ fair to say t hat the a,::r cul ture sector is lil·ely to account fol· a. significant porti "'n of the ot,al. Agricu1 tural loans accounted for 7 5% f C· 1r; lending in FY.76 and are expected to rep:reac11t a out 40% c:,£ the FY77-31 program. Over the five-year plan ucriod we e:xr.cct to .. ake lonns for pr:oi .cts in :i.r:d.p.;aticn. lt cstocl·, ·.c,_ ., '.;.sr and ru al developm~nt hich \·wuld eaci-rcprescn t lt<:! eecond tage of projects financed under pr \•io s 1 ~-~. 11c arc. :!lso c:•01 ,Jr:! . q- wit.h the Govermn~nt the po~s :S · S .\ :.1.·."·' ;f <:'lri. 1'•; ~ -J 1.in.;;c,"'., rejects in agricultural credit, n1 I t: ·:::-cstr1/resettlcm~n ...

( ii) Again, fi.-,1.~( ~ ,: '"~ t s1Utive., but we expect lending t Thailand d!.n~h:~· ·.::he FYT/--81 p~ri~d t:o tota roughly $1.0 bill .~ 11 •.

(iii) The nan: '~ ""''-:r::-d-T-Tin 1{.. l' loans arc limited by contri-·

"L,,~-·- ~~ t' ·r-: ·· .. :L1 •• ~ ... {"cn"lt.t~:1 ~: t.r rn1 "In+-e.rc.ot Substdy ~ · ::..._.:. ~ -.L:-~d f· r thi ... , p:! .,,,,._:er- ,'lb.iclt bv

~ ---... ---· -~ .:. . :-· .: t ,;:.,,J 1_cd $124. 7 r:1illion--an amount

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While 011 rovetty grou ds Thailand is eligible for IDA lormr., ~vith Lhc pres .nt scarcity of IDA funds and Thail rn i ! ti rclativeJy better poGition than many other dcvel{.'pi ng cou..'1tric::: s ,;e do not foresee making additional IDA c .::..:aits to Tlmiland in the near term .

(2) Specific Pr~j:cts

A. Ban Chao ;c Iydro-Electric Project.

() Exec tion of this project, financed jointly by a Bank loan (977-TH) of $75 million and a OECF loan of Yen 12.2 billion, is proce1:,;0 ng very satisfactori ly, with civil works slir;htly ahead O- schedule . Costs r enain with"n the original esti, a e and disburr.wments from the Bank lonn (as of June 30, 1976) were about 6B;~ of origi 1al -. stimatGs .

(ii) Progress reports are generally quite satisfactory and on time.

B. Southern Thai }ighway Project

( i ) The reference here is appare11;,ly to the Fifth Highway Project (Low, 870-TH) which :tnd ,1 .. ,!....S construct:f.on of the

(i)

L ngsuan - t~urut thani Jliphway i.n Lh~ Southern Region; the adjoining G:Jction to Phatthal 1rg J,·, being constructed with OECF finat1c :fr,: . Work halted c.::1 1' ','c Langsuan - Suratthani Highway :l.n tnlt -1975 whe n unfore .. ccn price escalation th f',"lt~r,r.d •·'.,· .?blvcn y of the, c•::ii.tn1ctors . 'The Government ~ •• ... l i...: 1_~~~ ... ... -: ~ : ... _ --~ q· ~ ~::tth :~,! .. ractor fo..: t11e Lz.nf;/'· ·~n. C1i;•i:r~ ::;::::~·.I.::. ~ :.::1ci t:be- c,,i:1st:.1H:i.~rn~ · eriod v1as extcnde.<l i.o .. :'"'">' J.': /;. :, • . , Y contrn t for i.:'·,c Ch.:d.ya - Surat ·h~nt ,,, r-1 ka was n,.;ardtd .:r. I r'c,: mbcr 197 5 to !- ,;, ·'.'. r.i:E1") l ct,~d iu July .. .; 78 . Co~1nl lt<..nts .i: :1c1,~c a uwisr the IE~ ,; .i.o ·•n ax 1.: . • u~sc.!'l.l':!.Ging

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• .:J.ly hich w:t1. i1 ." p TOT fin~ .• ce :f.ts pr.02ram. ., nadc a eccond J t·-rn to the T '£ to help finm ce

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(ii) Pxog CH.I I'6µo.c' ., a"• L,enor l y vf'ry r,atis.factory a nd on time.

a c.r Supply ___ tr__ij cc t.

Und er ~-- 1' Lti n 2 . 03 ·11 t h.__ Guaran t ee Ag e€'.n1 nt for Loan 1021-TH, the Gm .. r , 1:.1 nt of '.i.hail nd haG undert::akcn to meet any shortfa ll in fun v f.o r car y:f.ng out the Proj ect i f t he. HWWA cannot do s o from 1 ~- ~1 v.m r esou1·cca . ':i'hc u -tho<l o f providing thcoe a ddit ional f unds t o li"l WA to meet the c os t overrun under the project is s t i ll und r di..: us sion wit h the Eank i n vi w o f the potential effec t o 1

NWWA I s f1.nancial position.

(4) Ph itsanulok ,

Due to delays in enga"ing co, \~-ml t an t s , now resolve d, the star t of conr;t r.uc tfon of tl e £iajor ,v rk~ has been delayed by about a year. H~-.,revcr, the on- farr.1 ~ ~~l::s a r e proceea ·· ng on r, •,edule, some ur[~.1tly neecled canal ... r I drainage works have been constructed, and an eff ec tive ex ;. t.., sion service has been e s tablished. The conn•J. .ants a re now c:onccn-cra.ting on the detailed engi neeri ng and p!7Cp'lration of tendet· oc 11 r.1t:n :::"' for t he diversion 1 1::rn and main canal .

Camb odia , Lnos, Viet L~m

( 1 ) ; l t ho1..1sh r· ::\r hczrs of t he I BL s l1~ ct :' 956~ 1961 and 19 70, res pec t i ve ly , :n..:i t 1w r V~ e t Nom, L. 09 1 nor Crunbodi a hn.:; !V,,- ,7 borrowed f r om this im: titntion .

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ATTACJINENT

T!JAIJ,M;D

A. Th e Ec ono1~Y..

Cu rrent Eco nom ic Sit ua tion

1. Thailand ' s real CDP expanded at an average r a t e of 8 percent dur ing the 1960s wit h a gr ic ul t uH: growing by S-J./2 p e rc e nt per year; prices wer e vi.rtua lly st a bl e , open un employment was minimal and the baL:mce of p nyrnents was in surplus . Howev e r , rec e nt yea .. :s have b een more difficult . In th e period 1970-75 p e rformance has been mixed, and for the period as a wh ole growth slowe d to ab o ut 6 percent as a re s ult of : st <> gnation of private a nd p ublic jnvcs t mcnt in the early 1970 s ; .:idverse we a ther; and slow progress in intensific a tion o[ agricult ura l produc t i on ~1ich reduced

1 agriculture's g r owth to 4 percen t a year . In 1973 74 dramatic improvements in int e rnational ma rkets and prices of agricultu r al comm odities raised Th ailand ' s export earnings by 150 percent . TI1i s export b oom stimulated a r apid exp a nsion of demand, production , and priva te investment and generat e d balance of paym e nts surplu se s that enabled Th nj J a nd to adju s t to hj gher pr ices of imported petroleum with less diffic ul t y than most other developing countries. At the same time, - d ornest i~ pr i ces increased rapidly, largely as a re s ul~ of ma s sive incr c.:i ses in both impo r l an d cxport · prices . Since the summer ot 197 1+ , howcv8r, the · stron ~ sU m1 l us from the external trade sector has faded as export commodity prices d ec U ned whi)e import prices c ontinue d to rise. Consequ en tly , the growth o f der:iand decelerated, the expan s ion of manufacturing output slowed , and signif icant open unemployment appeared . Pa rt o f the new c apac it y create d in th e 1973-74 private invest rne, , t hco:n r ema ine d underutilize d$ and excess c apacit y , together with the in ternat ional r ecessio3 and political uncertainty, caused private investmcnL to df'cline in 1 975. Stil.l , r al growt h jr, J ·;' }'.) .was about 6 percent a s a r esult of the Government's c~pan siona ry fi scal policy (which raised public cxpendi t re b y a b o u t 25 percent ) a nd g ood weather . Slowe r d e r:i a nd gr owth a nd

ma ll c r i mp o r t pr j_c c i nc r easc, s a } s o h e ld t he r .:itc of 1n02U on t o about 11

pe1·cer t . ., cc ,_,T'"lj n g no r ma l wea he r , r ca ) CD P should r-.row by ano t Lcr 6 pe r ccn t :n l976, c11 L!1t11.gh private inv~:::.t.ir.ent i s 1 i k~1y Lo c(lntinue t o be de pressed .

Strt1''l" u ral Prohlcr.is

2 , 111niLnd's f:1vor,·b~-.... f."nr:ic·i11c,~ iuri1:1, r],0 l ast d cc;id w:1s not HithoL,L we:il-i1~c;se..., , J..~· · .-Jir,p ,i·.iLit!'..; b et\•··en rc/jions Dn d b ct•.,·r·c"n r r,c1l ;_rnd urb nn 2 : ·a :. nrc ,;L! ii rnt.ial ns f\.,n;,l:n: .1 , 1 th e Cc•ntr.;l Hcf,i <>1: h.n·c dc'vc1opcJ more 1·npid.ly th,11 the rest oft.:!"!~ 1:.ir1. Th" pn11il:1t in11 h,1s grown by ;1h,111t 3 p C' rc ent r yr•:n· ; <,,, a rl'SU1 ~. ttrc , n,111.--: I i 1crcmL•nl t., , tl1C' L1Lor focC(' h, ~ ri sr,n l.J y :., ::-c th·11, 50 p•:-n·. l.' •,t ir. t !JC• L1st dcr·.:-:dc, Lill'

<.'.o!p;' 1.d~ncy r- 8 Uo i.~ high, ~11111 11( burden on Llit' C:,; ,,~rnm , nt to 1,rr:vJ.d c· cdu<.;HL:ion, r.P:tllh, and o :· lll'r 11, < r·;;s;i1· 1 services i. r-,e;n,y. I n tl1l' µ,1sc ;, '' r ·1 r t' 1 t 11 r , .l P t 1 t n: 1 j n c r c :liH' d , . 1· g e 1 y b cc .:i us c 1h: ., : :1 n d \~ ;1 s p u t lll Hi (• r c 1_1 l 1. j --

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tion pressure on 1 nd has Glr eady clt:v c ; o 1; t,- d in s ome areas und Lenancy probl ems ;u:e bec:omini more 1::cdous Lh.1n in thP. past. Expansion of Lh e a rea und er cultivation has provi1.kd jobs f.-or. about ll<1lf the new entrants to tlic lapor force, v•hj_le industr.i .11 cniplO)' lr.!,nt h a s grown slowly nd still ac :0 '.l:1ts for: onJy 7 percent of Lh e worl: force. In the futur e , as fr.ec land uui t .:: b}c for cultivation is exh.:iu s t(,d, creating neu j ob~ will be more di f f icult. i;J.nce they will have to be gcn e rc1t<·d by the inlensificatio11 of agricult ural production and the rapid expansion of labor. intensive industries.

Progress Toward Develot)ment Objectives & Recent Institutiorwl Ch;:inees

3 . 111a iland ' s Third Five··Year Pl an (1972-76) attempted to deal with the above struc:Lural problems. It included the following objectives: r educing regional and rural-urban in come disparities, inc r ea sinr, employment , intensific ation of ag ricultural prnduction, and greater public expend · ture on education and other social services . Progress towards these obj ec tiv es was minimal under th e Thanom-Prapass ree ime. The Governments which followed , ho\Jever, have taken a number of steps dir ec ted

[ towards achieving these objectives . Public expenditures for education , health_ and social services have almost doubled and expenditures on agriculture almost tripled in the period FY73-76 . Tne Govern menL ' s price policy has allowed domestic agric ultural prices to rise with international prices , and th e real pe r capj ta income of the 75 percent of the population that is dependent on agricuJLure rose by abo ut one-third over the last four years . Through the t ambon program $125 million was tr ansferr ed to village councils in fl'./.':> to finan ce rural public works and create off-fanr1 employment and income . In the l as t two years, laws have als been passed to reform agricultural land ownership, tenancy, and rents and to est ab lish a Marketing Organization f o 1 l•a n ners and a Farmers ' Aid Fund . However, formulation of detailed pr e r~r:r'1s to implement many of these measures is still necessary, and only tl·~ :·~:·:,_ ementation ove.r a longer pedod will detennine whether or not these pr omi sing first steps lead to lasting r .esul ts .

~ 4. Durin g the Thirri Plan period, the 1opulation growth rate declin ed. Although the extent of the rl c =l~1e is stbject to dehate , th e re js a justifi e l nptjnJi,11 t l-,:1t in t he lo:~g 1·un Th ,:dlnnd c a n gaj_n control over thi s

g rP1-.'l 1, 1 .., f 01 P tlie c01.;n 1 1 , b :.;(.,- ,. (, .-'.-, r i o us ] y h nrd e ne tl wi Lh a n ex ress i ,, ·ly he>c.,·y i·"l •' ' c,:1 denr;ity. · · - ~L.n,.: ha s a combin a tio n o f a \,-e ll-pLrnn ·cl, wl!ll- c xecuted f amily p an1 i r ,rai:1, a growin g ;n c. r e nc s s of popt J.at:ic)n probl ems among in fl ue nt i~l J c.:idcrs , and a cullura l set l i ng that o ffer "' a f av0rab l e env ironmc~nt fo-- f er- t i] i ty ont.rol. Th e ,1rccpL .:111c<> ra t e i.s ,iho ··~-25 p,:>.n:en t, wld c h i s th t' ·i, ·· · :·,i11•st J,1tr i1 Llil' t!e v t· J op jng w0 rJcl. TJ,.-. Go ·u·i.11<:' 11t int ends t G ·nt, ,, i ,,, f::mi ly pl 3l1! iu~~ rt f n1· .. dt1,·i,,~~ t h,: Fo ur LI • P L'rn ai'J m:1y seek ], · , :• 0 i.• , t ·:ncc t o he l p fin.:1:1vc tli i:"; pru;; ram.

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yield:., r ;1t),,~ r :: li e: n b y c:;:l:t! t1 Gh j,; t11,~ c\i~f!D uillh·:i.· l.'. ultiv;1 U r: . L\ l arg_C'. r, u oJ. l C

e~:;-,Pnd.i.i-u i·e p r<;[_i"G m ,.;i i .l. b~ n~~CC['S ,1r y to nuUsf y p t-iui:i Ly e-::o nom i c. ,rn d soc i.a l J~ l· c~d:: c..:r1c~ supµ o rt. r,:p i d cri-:ploymc!n t El"O 'l1 lh . S,1bsta i1 t i~l C'f fo 1~t '.-1~_l l \Jc 1,f:. Cl:Ss~,:- y t. o !!Wbi l i.z,'.! t.h c do;;1,:sLic r cso m:c:cs r c:qu i reci t:o fin::.. ncc th .~ , 2~ded l;:·, cc.~. o f p11blic ,7:-:pc ri d itur es , Fir.<!1ly , Lhc~ .:i v .:iLL:.b 5.ii.ty of f oreign c,xe! ··lq~r:: c ou l d .?. l so hc :co1~·· c: a sc d .ous const: r:ai nt to r,;-0 1.-1 th l a t e r J.n Ui.:: d Gccdi:, \.'hen 'Jhi: iJ ;:nd. ' s b a lance o[ µ ;.~ yrncnt.r; posi ti on v:i. J.l b e less f i'"'!\'u?:·r.l)lF th~-ili ~ ~ h.:.:; ht:;t::l1 i H Lile t ~c e ut µasc .

7. !,) t.hc:.igh Thai L11id ' s i r. tport bi l l doub led be twee,, l 'J7Z c1 nd l ~i /:', ; i , ·if. h<:~r <!xpor t carn:Lng s o n d pri.v ate capit 1..1l j_i1[lo't1~ ;...·e; r c su~f.i c:i cn L tn F!:'L t fcr( · i.~:, n 1.~~.-:f"'li~ :·:f')C! 1·cq~.!.r~,:i1~:1~t:: <l1td inr·i-c ,• .. ~ 1 rc·S(~rvcs to .r_:j_.x

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amount i n Ma rch 1976 . Thail&n c! ' s total debt service raLio has d r:opped from 18 r e rcent in 1971 to b e l ow 17- I ercent in 1975 (of which just ovQr t1,10

percent was pub li.c d ebt scrvic E: ) _.:ind would remain under 1 5 pe rcent throu 1:;h o u t t he Fourth Pl .:i n . With th e pr ojecte d level of borrowing , public debt service pa ymen ts wou ld not plac e a n unreasona ble burd e n on the balance of payments p rovid e d th e d.P.b t i s incurred on reasonable t erms . Howev er, b e cause of the limited avail ab ility of official development assistance and long- term pr i vate capita l , the Government may encounter some diff i culty in achieving t his l evel of bor r owing .

B . The Industria l Se tor

9. Th e i ndustrial s e ctor ( manuf ac turing , mining and construction) i s th e second larges t in Thailand . In 1975, it accounted for 26 perc e nt of GDP (at 1962 co~stant price s ), about 25 pe rcen t of t otal investment and 7 percent of total em ployment . Ha nuf a cturi.ng a lone accounted for over 2 0 percen t of GDP in 19 75 . I n 1960, it accounted for less tha n 12 pe r cent of GDP and was orie nted almost entirely toward prod ucing basic con sume r goo~s . With subst~nti~ l opportuniti ~s fo r i mpor t substitution and an environmen t which encourage 1 invest 11en t, manuf.:ic tiiring output grew a L cJ. n annua l averag e r ate of around 12 perce~t betwee n 1 960 a n d 1969 ; as these o pportunities were exhausted , inves tme n t shifted sha r ply towa rd s e xport i ndustries and grew at an even higher rate o f 14 per c ent between 1970 and 197 3 . Between 1969 and 1974, manufactur d exports increased from $34 million t o $ '.1f} milJ.i.or,, or from 4. 3 percent o f tot2l mcrc hand i. se exports to 1 4 . 6 percent . The most important indus t ries are food processin g, bev erages , t ob;:::cco , l~Y.tiles, apparel, t ranspor t equipment and petroleum re fining; Logci:.l·1l'.T. tlwy acr.oun t. for 70 percent of value-·added in the s~ctor . Manufacluriag industries remain hea~ily concentrated ~round B.s.nr.kok.

10. "stLiia'.:.;.;s for 1975 suegest. that lnvcstmt•nt in manuL.,c uriug ir: ·'. , :niy L:s ,:,ec. fried fo·!~ the f i. r:;t time since 1971. In curr.e, t prices ~1;,,0st:i'"P1· ~:. -~ ,-::.:·,:: L ct qi· · ,'.'. 11:-, i:; grow•1 [rGi,l $155 t•i illion in 1967 to over ~'i ;~~; ,,l:!. ·, _;~ L'.J7°L T110 diare nf ma11drac 1urint_; in gyo::s 1:iY.c<l c-tp'LuiJ

c,.wn! [t n rL•~;'" tru;o l7.5 pen'e.1 t i.n 1967 L o ov er LO pr'rcent i.i1 '.9i/1 :rnt

c:11, ,,2 ,:J Lo .~n.,1·:,d l[; iW ·c:(' 1;:· i.:. 19 75; i.t: lws 1:i-adi.tion;iJ ly .1cco:,:,t C' ,r , ·~abnui t11c t.hi n : ,1r tot·1:1J. ;wnur·,J. cxpend ·iturc·,; 011 r,wchincry <.lttd cquip?~1,·;1t . As .ippJ Ic,1 L "i.c•ns fc1r inv c, s tcl •:nl p,_•1mits h [!.v e clccJ i1wc: Sl1bstanl i.aJ..ly i.n

19 '/.':J, 't i0 t•!ll!;.<'l:· i'.1 ;,~t c•): ;101~d.;.1,irc<_; :rn nwnuf.1cf·111·i.11g Lnvci;tr:.L'li!:~ v.';_JJ excc>ed ~~l l , LJ. Li m 1 o•e: · till! l" '<1-y(•ar pr·r i ocl J97b-77. lii e b11!;i11ess r.i.l 1;1,1t c

-- :· ,-"ri._· ... , .

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11. ,\t t c c1 c, or l')7!1, :..h e i.nd11::;t i. i-1.l sector mpl oycd about l. l1 m'.l-li.on p~t·~;on ~; nr · 7.9 pri··c i.:nt o [ ~1 ... et:!l L:1bo!· forcl~ "Sti_mat:2cl .:it 1.7.7 mi..lli.oo. Of · hL'~;l!, n!·,,-·,uc 1'.=1 1,;UJ ·i.nn (5 p 1> :·cent: o f thr. J abor force) \CH! cr.1p.loyc d f.n ma nu L .1, turi.··,g . 1nd t: :;tr ; ;: l_ L!nplr,~m<.~ rd: is presently conccn tl'."at ed Ln s1nc1Ll cot t.:ii~c typ, · l':1 Lc '.'l: ~Fe,· ,ind Ln l:u-gc f i n1s employing more r-.h.:rn 100 worke,:s . Cur-rently, Llwr,~ ,Hr.:! fcu mna l.t to ,u,<J Lu m i.nd ustr L:i l units ( S~!I) cmployLne betv:0. C'n tO ·t nd iOU 1.-.n[ '.(;' ·,.; to il.Ll the ga'._) between these two ext r eme s; such un ·.ts pr o iJ.1bJ.y nccounL for un<l·~r 5 percent of Lhe total number of enterpri ses , 10 percent of ewp oyment a nd 1 5 percent of va l ue-added in manufactu r lng. S,Hs provide a promising vehicle for expandin g ar:<l decent ralizing i~v~~tmdnt a nd e~ployment opportunities at a reasonable cap i ta l cosl: without necessar ily ~acr i f icing the objectives of produc t i vity, eff i ciency and cowps~ U.ti.vcness .

Industrial Promotion

12 . The Government ' s stratC8Y to promote i ndustria l development needs to be re i e~e d a nd refined. So far the Government ha s relied on t ax i ncentives and tariffs to promote industria l developme nt and en cour-age pr.ivatc investi ent in priority areas . I nvestment inc entives ar e prnvj_,-\r;J tli n ,t; ;_:,1, t h e Co;ird of 111 est;:;,•nt (l!Ol) . d,:::~: ·i ;: ; ic·d Ui pLo~:10L c projccls ge ner.:::1- i'.1~; rn1p.loyr:;C'. nt a,v l u: ;i_n;i, ci~;:;ic~: tic r· ,3,,1 1:1~t r,r:f ;1 _l': : ,, ... :titJi~ t·he rrq:g~ ct\Jt1 .1..i:-:blt:, t: h~~ r.~~J r.;t frt ·torai>]e J r : , ' r·r·.,: iv( s ::•<!

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CC '.I(_'! 0}~,: ic:.: it. l '1 L (!ii S .

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FORM NO. 1035 (5-75)

(i) I~ ,·~~~W~~

l "l ~l,~i-~ ~ b~ WORLD ANK GROUP

( 1)

(2)

DATE :

ROOM NO.

C-422

In accordance with Admin~trative Manual Statement No. 5.01, will you pleased one or more of the following, as checked:

D Initial the attached to in been released for filing.

D Indicate the loan, credit, inve tment, or project to which the attached refers.

D Indicate the organization, meeting, research study (RPO No.) to which the attached

CONFIDENTIAL TO BE OPENED ONLY BY THE ADDRESSEE

DATE : ____ _

TO:-~;____• ---=-~ ----"~'----• ___ ROOM NO. : __ _

FROM: ____________ ROOM NO.: ___ _

FORM NO. 838 ( 4 - 74)

' ·

TO:

FROM :

SUBJ ECT:

WORLD RA NI</ iNTErl NAT ION/\L FIN ANCE CORPORATION

OFFICE: ~/iE~vlORANDUM Mr David Loos , Acti n g Director, EA&P Programs DATE :

. 0 .

C O N F I D E ~ T I A

Aueust 6, 1976: 5 ! ~ ("I ;:i:;

I 00 U"') u N.A. Gibbs, Chie11, n·."i .. , A, Ei\ &P Progr ams Dept. ~ •)' ,.

VI ET NAM - Econom.i.c }U s :.; ion

{) ~ - ~ ~ > <i: u C) 0 ~ :z ~

1. After our di::;cussions with Mr. Dell on Augu s t h I spoke to Mn Tun Thin , IMF, about his plans for Viet Nam . Mr . Tun Thin told me th a t he was thinking in terms of an IM1'' miss ion ,"isi ting Viet· Nam late in 1976 er e arly 1977, but he would wait t o see what emerge_d from dis ~us s ions with the Vietnamese delegation to the Annual Me eting .

2. Mr. Tun Thin thought t he r e was some merit in considering a. joint IMF/Bank mission to Viet Nam since it woul d be the first Il1F and Bank operationa l involvement in the country. However, he would wish to review the desirability of this a rrnngement after the Annu2.l Meet{ng .

3. During our mee ting with Mro Bell we discu 1:,sed quite briefly the scope and timi:1g of the economic m .. i.ssion to Viet Nam. We concl uded tha t subjec t to the views · of the Vie tnamese dele gation .at the Annua l Meetin g , we should follow the secuence of events outl ined in Hr. Bell ' s con.fidenti Al memorandum to Mr. McNam;.rR da ted June 5, 1976 on hi s discussion vJi th Vi et!1?mcse delegation t o the ADD Annual Meeti.'rlg . Mr . Be ll ' s memorandum stnted in par t -"Mr e Bell explained tha t the first step woul d be f or t he Bank t o obtain A cle:ir understfuidi ng of th.:; country' s e conomic s:i t t1ation and needs and it s pl:=tr!s RS

a b asi s for ;;greem.ent on the wo.ys in whi ch Bank a s sis t anc e could be eff e ctively and usefully provided. Once the Bank h ad obtained thi s under s t:md:ing a s the result of a visit of a Bank economic tep.Jn to the coun t r y , furthe r 1-1ork 2.nd discussion would be re quired to clearly i dentify and , with the Government, plan and eva luate sp ecific pro j ects and pro grams of high priority for whi c h it could provide as.sistance. 11

,

L.. Mr. Bell confirmed that es senti ally what he h a d had in mind at that time wa.s a t1-10 step approach . Under the fir s t t he BA.nlc would try to obtain P. cleRr p ic ti.:..:re of the countr y ' s economic s i t u :-:tior., Go're rnmcnt plans c nd p ,"i.oritie", wi th work on progr am an d p roject ider.tjfi cat:i on and preparat ion , etc . f ol lowing ns step h..o . Accordin gly at this .stage we should plan ~mr econom5 c work fe;r fi t ep one and conside r iJh :-1.t staffi11e arrangements would be mos t suitnbl e f 0 t,het purpose . \r!e sl~culd nl s o plnn for the m.i ~;s ion to vi~it V1et N.8.r. in November , a l thouJ h tl:L, mu ::; t be cons:id0red tentative ;-it thi s sta[;;e dep 11 ·U nc on the ' i e ws of t,he Gove rnmen t nd the possibili t.y of R joint IMF/ Bank miss ion .

5. As you !mow t hiF- Dh -l ~d .on i s unDble to stnff :::;uch n. mi ss ion and we mu s t l oo: e l ,, e -1he r\;) wi th"i.n or ,:i thou t t.he Re gi on for t;uppor -:.·. . I i.. would , I con s i de t·, be mi s tn.ke t o s i.. ufl' tlJP. mi :::;<-i o without scme rep rc~ senLrt t :i on from t his Div ision in ord ur tn h;,..ve ,,Hl 11 i n - hou :.e 11 unders Lm1di ni; ol' 'the si tua tic n i n Vie t Nam n nd to cn nbl e t his Di vi s ion to hLlp p l'Oc r:-im 0

I

' - 2 -. .

subsequent activities in that country. Subject to further considerRtion of the need for and timing of a basic economic mission for Thailand and the t iming of the Viet Nam mission , it appears quite possible that Mr. Lim will be avail able to participate in the mission to Viet Nam • .

6. We also discussed with Mr . Bell the pos si bili ty of preparing que stionnaires in advance of our mi ssion which might be ready for di scus sion and submission to the Vietnamese delegation to the Annual Meeting . I r eeret t hat this Division will be unable to provide much input to. this preparat ion •

. 7. I would ask that the arrangements for the mission be handled by the · Di rector• s Office in consultation with Mr . Ruffini in my absence . As you know

I have tried to contact Mr. Votaw on holiday to obtain hi s th:>ughts on how we should best handle this matter , but as of today he has not been available.

cc: Mr. B.R. Bell Mr. P. Haslffi Mr. s.so Kinnani Mro Go Votaw • Mr. E. Hawkins Mr. So Ruffini

NAGibb s :vmk

,·

FORM No . 59 ( 2. 55)

CROSS REFERENCE SHEET

COMMUNICATION: Mem.orandmn

DATED: August 6, 1976

TO: Mr. David Loos , Acting Director , EA.&P Programs Dept.

FROM: Mr• N • A. Gibbs

.r1LED UNDER: IBRD/IDA Programs/ Missions

SUMMARY: Viet Nam Economic Mission

• 1 'J!!l'..c l • .--: r·1. ' I refer to ' - • • -• I

2. llaving h$ard of Umbriclit' a press couference' last • ' - . : 1,,ll. . I phoned him. that afternoon for clarification. Umbricht insisted he - ' - "-

. ,., 1 must have been misunderstood, because he hu-. been at pains to tell .~·~anyone who asks that tmited Vietnam wishes to "maintain all rights - ~ 1.

r.- .~ .. t, -.·: ,. ' ..

~ t' ~ and obligations flowing from memberships 1n international organizations, · JI -

including IlfF and IBRD." What be was tryin to convey in response to a press question was the iiotion that it might take some time to sort out quota and other matters with IMF and then the Bank/IDA; he had in mind perhaps as much as six months and waa merely 'teyin to get across the -point that· thes things take time to work out in detail, cannot be done instantly. This is, of course. consistent with our own view (as you

, :know from. Berni Belf's. account of discussions in Jakarta etc.) -"lt I

-., 3. That Umbrlcht,-faioled to make hie point clear i o reported in ·· '(w Grenfell' account (attached. although you may have it already) and . · ~.i1

confirmed in a note from Julian's IMF counterpart (also attached). - ; No great damage seems to have been done by that mis\D.'lderstanding, however, • • "• at least so far as I am aware. And Victor haa consistently told me that ,. ·c. Hanoi authorities want and ezpect to remain ctive members of both IMF

__ ,:; and IBRD. '° . t : • J • i

..._ 4. The IMF mission is ready to leave, possibly this weelc-ena , ~ · if visas come through. Tun Thin expects no problem and believe• his .

.:-•. management will choose to accept tmified Vietnam aa a "successor" to .,;, Saigon, with an appropriately enlarged quota. Were unified Vietnam to

eek new membership, it would require approval by Governors representing 85 percent of voting power~ obviously a more troublesome as well as .,

. :.:. time .consuming route. Needless to say, when the Managing Director rbegins "soundings" with his Board (which could occur this summer), it is entirely possible that the U.S.A. will inaiat "new member" route, but the Fund staff does not now expect that.

with attachments: Messrs. J. Burke Knapp

1, .1,

~ B. R. ell (o/r) L.

(attachment hatt already gone):

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•

Mr. William Clark

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Bernard R. Bell .IJf.. ~ (~J Viet-Nam

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June 5, 1976

I A

As I mentioned to you yesterday, and I have already told Mr. Burney, his memorandum of May 25 to you reporting on his discussion with the lea~er of the South Vietnamese delegation to UNCTAD, suggested mainly two things to me. First, that internal eonnnunications with the Government authorities of Viet-Nam are' rather poor, and second, that ours may not be much better. This is not a criticism of Mr. Burney's. If it is a criticism at all, it is of me. Mr. Burney's memorandum seems to indicate that the head of the Vietnamese delegation to UNCTAD was not particularly well informed, or perhaps not at all informed, about the facts that

1. Mr. Tun Thin of the IMF and I had had an extended discussion with the North Vietnamese Ambassador to France in Paris in 1975;

2. that a South Vietnamese delegation had attended the 1975 Meeting of the Boards of Governors of the Bank and Fund, and that we had a meeting with the delegation at that time; and

3. that Mr. Tun Thin and I had, again at their request, met with the Vietnamese delegation to the ADB Meeting in Jakarta at the end of April 1976, and agreed on next steps relating to Vietnamese membership in the Fund and Bank.

Mr. Burney had no reason to anticipate that the Vietnamese representative at the UNCTAD meeting in Nairobi would ask for a meeting with him and, therefore, had no r~ason to be fully up-to-date on the connnunications between the Bank and the IMF on the one hand and the Vietnamese authorities on the other. ! call your attention to a number of documents, copies of which have probably never reached your office:

1. Memorandum of July 16, 1975 on the Paris meeting;

2. Memorandum to the Files from Mr. S. Ruffini of October 6, 1975, on the September 1975 Washington meeting;

3. My telex of April 29, 1976 to Mr. McNamara on the April 1976 Jakarta meeting; and

4. My memorandum of June 5 on th t same meeting.

cc: Messrs. Damry, Votaw, Grenfell, Burney .l

BRBell:ea

I.•

FORM NO. 59 ( 2- 55)

CROSS REFERENCE SHEET

COMMUNICATION: Memorandum

DATED: June 5, 1976

TO: Mr . Robert s. McNamara

FROM: Mr . Bernard R. Bell

£1LED UNDER: Viet Nam - IBRD/IDA Programs/Missions

SUMMARY: Meeting with the Vietnamese Delegation to the ADB Meeting in Jakarta End-April 1976

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Mr. McNamara (through Mr. William

--.

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Shirley Boske~

Viet Nam and the Bank

• . .

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._ ..,_.I Julian Grenfell attended a press conference which Victor Umbricht

held t his morning on the occasion of t he release of the re ort of t he recent U.N. mission to Viet Nam (althoug~. as you will hav seen, the gis t of t he report appeared in yesterday 1s newspapers-i-) He (Julian) called to give me t he following information.

I~ ._'l

In t he report dealing with membership in international institutions , (.:.; ... • Ucbricht wa asked what position Viet Nam took vis-a- vis t he Bank . .... f!:. 1

Umbricht responded that the Bank and the Fund presented special problems. , •i11· t It was likely, he said, t hat t h re would have to be new negotiations 1

-~ ~ .

because a unified Viet Nam, ven on the assumption that it succeeded . 1 .....

to South Viet m's membership and did not have to apply for admission ~ . •-.i

in t h Fund ; this would i mp ly a larger capital subscription in the Bank. .-·: J in its own right, would presumably be required to accept a larger quota -.

1 1

'~ ... _ .... ,-- ~__:.r""J Umbrich t then said that there was some question wheth r Viet Nm

would e prepared to provide the Fund with the requisite sensitive monetary information. When asked for his jud ent concernan the pros ects for Fund membership , he responded t hat his personal view was pessimistic;

-. I a - ,

he though t it likely that negotiations would be concerned with a discontinuation of membership. r

• Julian is sending down a copy of the English t xt of the report ,

together with his notes on the pres conference. This material will prob ably arrive on nday. But since what U bricht said to the press differs substantially from the vi MI understand him to av expressed to Bank officials only a short while ago , I though t you would like to be told promptly.

cc ~ " roches ~ Bell

. Gibbs Burney

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INTERNATIONAL DEVEL OPMENT I INTERNATIONAL BANK FOR ASSOCIATION RE CONSTRUCTION AND DEVELOPMENT I INTERNATIONAL FINANCE

CORPORATION

TO: Mrs .· S~ir:ey ~::ICE MEMORAND~~L(/J~~~ !la;]¥

FROM : Julian Grenfell g SUBJECT: Vietnam

•

•

JG:al

Herewith a copy of the Umbricht mission's report on Vietnam.

At a press conference this morning Umbricht made the following points:

i) He regarded the two top priorities (requiring $430 million) as:

(a) recultivation of abandoned land and cultivation of virgin land for the purposes of rural resettlement;

(b) r ehabilitation of the transport system, in particular the Hanoi -Saigon railroad .

ii) The damage by bombardment in North Vietnam and in the area of the 17th parallel was far worse than the mainly sabotage-inflicted damage in the south.

iii) No donors' conference was envisaged for the time being; he would make bilateral visits to governments and agencies to sound them out .

iv) Pretty well all the socialist countries , including Libya and Algeria , have concluded aid agreements with Vietnam, but the amounts are small . On the western side , Sweden, The Netherlands and Switzerland are already active •

v) The possible role of the Bank and Fund presents "a special problem" . The united Vietnam is likely to maintain all agency memberships entered into by South Vietnam. But Bank and Fund

,membership would pr obably require renegotiation because of the need to make a new assessment of the Fund quota . The Vietnamese authorities might , however , have difficulties over the requirement for sharing sensitive economic and financial information with the Fund . His personal estimate of Vietnamese intentions towards the Bank and Fund was more negative than positive.

cc: Mr. Nicholas Gibbs Mr . M. Burney

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Mr • Tun 'l'h in

Jan-Mnarten Z~gersf

Vi etn:>~'11

Jl! 1 9 m:c·o

Last Friday, . June li, 1976, Mr. V:i.~tor Umbricht, author of the UN report on Vietnam (which I fo rwarded to you ), presented it at a small press conferenc•= at UN Beau.quarters .

A.lthoHgh he was to co!"..r.:ent cn:l.y on t:;c r·:::p'.)~:, ::belf , h2 let hi;ii ::;e:lf ut one point b e drawn into speculation about the relationship of the Fund and Ban:'\. with Vietnam incl.udinG a discussion of the need to review the Fund quota of a unifi ed Vietnam and as he appar ently put it, the need for a nev membership app:licati (, n . He said a unified Vietnrun would want to stay in t he Fund and B:1.nk , but when fu:c ther pressed on the matter o f the informat ion requi rements of the Fund , he speculated that--in vi ew of the ret i cence of Bocialist countries--the c hanc~s for a succ es s f ul negotiation were more negative t han positive . . .

The story was not reported in any detail but there was some unhappine :;s at UN Hee.dquarters that he had gone into that kind of specuL1.tion. We may share thos e f~ elinrs . ..:i:._ J.eave it to you whether this information deserves further circulat ion • . ~ · ( '!.V~./"V--'\

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The World Bank I Tokyo Office: Kokusai Building, Room 908, 1-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100, Japan Telephone-(03)(214) 5001 • Cable Address- lNTBAFRAD TOKYO

Mr. B. R. Bell Regional Vice President East Asia & Pacific The World Bank 1818 H Street, N. W. Washington, D. C. 20433 U. S. A.

Dear Mr. Bell:

May 10, 1976 Letter No. 137

Please find meeting with the

/ IZ!LJL fb &h attached for your clearance a memorandum on a Vietnamese in Jakarta. It has been cleared by

Jean Baneth . ..... m::iai.aii~~~~!;:;i==="*~IWl!~llilc:[email protected]@tllNie....c~~b

With best regards,

Yours

Mission

WS/mk

att.

Headquarters: Washington, D.C., U.S.A.

'

Ml\'< 3- REC'U fl;:, 9;.t> .

INCOMING TELEX J7 u~~j IV?/, f i;; ; ~

DISTRIBUTION : ,.

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FROM: DJAKARTA April 29 1976

/ ~..r . McN~ \"lS ~p '29 ./1\: I 6 Mr . Votaw J

Mr . Bell ' ~., ~ cecuMMU \IC.&.i lO~lS cc.. : ~ t7"1n , V SECi \ON

y

•

746 MCNAMARA COPY VOTAW RE VIETNAM.

IN COURSE ADB MEETINGS AT THEIR REQUEST TUN THIN OF IMF AND I

MET WITH VIETNAMESE DELEGATION HEADED BY TRAN DUONG, GOVERNOR

OF NEW BANK OF VIETNAM. FOLLOWING WAS ESSENCE OF OUR DISCUSSION:

ALPHA: VIETNAMESE DELEGATION STATED THAT FOLLOWING ELECTION

COUNTRYWIDE LEGISLATIVE BODY WHICH ELECTION HAS SINCE OCCURRED,

DRAFT CONSTITUTION WOULD BE PLACED BEFORE IT AND AT SOME POINT

IN JUNE FOR MAL ESTABLISHMENT OF UNIFIED VIETNAMESE GOVERNMENT

WOULD BE CO MPLETED AND ANNOUNCED .

BETA: NEW GOVERNMENT UNIFIED VIETNA M WISHED TO BE MEMBER BOTH

IMF AND WORLD BANK AS WELL AS ADB, PREFERABLY BY SIMPLY SUCCEED

ING TO EXISTING MEMBERSHIP OF SOUTH VIETNAM. DELEGATION STATED

THEY WERE PREPARED ACCEPT ALL OBLIGATIONS, ETC .

GAMMA : WE EXPLAINED THAT FIRST STEP WAS FOR UNIFIED GOVERNMENT

TO BECOME MEMBER IMF AND IT WAS AGREED THAT TO FACILITATE THAT

PROCEDURE I MF WOULD SEND MISSION TO VIETNAM , POSSIBLY EARLY

JUNE, INCLUDING LEGAL AND OTHER PERSONNEL WHO COULD FULLY EXPLAIN

AND SETTLE WITH GOVERNMENT FOR MAL ACTIONS REQUIRED, INCLUDING

ESTABLISHMENT PROVISIONAL EXCHANGE RATE, POSSIBLE NEW QUOTA,

ETC. SUBSEQUENTLY BOARD OF IMF WOULD NEED TO ACT ON FORMAL

VIETNAMESE REQUEST AND RELATED CONDITIONS.

DELTA: I SUGGESTED AND THEY AGREED THAT , FOLLOWING COMPLETION

ACTION REQUIRED FOR THEIR ACCEPTANCE AS MEMBER I MF, THEY SHOULD

ADDRESS FOR MAL REQUEST TO WORLD BANK AND WE WOULD CLARIFY WITH

THEM ISSUES WHICH HAD TO BE SETTLED IN THAT CONNECTION, INCLUD

ING POSSIBLY MATTER OF CAPITAL SUBSCRIPTION .

EPSILON: DELEGATION INDICATED THEY WOULD WISH TO OBTAIN FINANCIAL

ASSISTANCE FROM BANK AFTER MEMBERSHIP ISSUES HAD BEEN RESOLVED .

I EXPLAINED THAT FIRST NECESSARY STEP ON OUR PART WOULD BE A

MISSION WHICH WOULD EXAMINE THEIR TOTAL ECONOMIC AND FINANCIAL

SITUATION, NEEDS , PROBLEMS , ETC . , AND THAT FOLLOWING COMPLETION

OF REPORT OF SUCH MISSION AND DISCUSSION OF FINDINGS AND CONCLU

SIONS WITH THEM, WE WOULD BE IN A POSITION TO TAKE NEXT STEPS

ss _)

' '

OF IDENTIFYING PARTICULAR PROGRAMS AND PROJECTS OF HIGH PRIORITY

FOR WHICH WE MIGHT CONSIDER ASSISTANCE. THEY ASKED WHETHER WE

: WOULD BE PREPARED SIMPLY TO MAKE A GENERAL PURPOSE PROGRAM LOAN

TO THEIR CENTRAL BANK WHICH LATTER COULD USE IN ANY WAY IT SAW

FIT. I EXPLAINED THAT THIS WAS CONTRARY OUR PROCEDURE AND OUR

VIEW OF WAY IN WHICH WE COULD PROVIDE EFFECTIVE ASSISTANCE AND

THAT WE WOULD, AS WE NOR MALLY DO, UNDERTAKE TO EXAMINE, ASSESS

ANO AGREE ON SCOPE, PURPOSES AND MODE OF EXECUTION OF SPECIFIC

PROJECTS. THEY UNDERSTOOD BUT THIS SUBJECT, ALONG WITH OTHERS

RELATING TO OUR MODE OF OPERATION, WILL NO DOUBT REQUIRE

FURTHER DISCUSSION AT APPROPRIATE TIME.

ZETA: DELEGATION ALSO ASKED VARIETY OF QUESTIONS RELATING TO

STRUCTURE AND PROCEDURES OF BANK, ALL OF WHICH HAD BEEN ASKED

WITH MORE PRECISION ANO DISCUSSED IN MORE DETAIL IN JULY 1975

WHEN TUN THIN AND I MET WITH NORTH VIETNAMESE AMBASSADOR IN

PARIS. DELEGATION STATED THAT THEY WERE NOT WELL ACQUAINTED

WITH CONTENTS THAT DISCUSSION, ALTHOUGH THEY APPEARED TO BE

FAMILIAR WITH CONTENTS OF EXTENSIVE DOCUMENTARY MATERIALS WE

HAD GIVEN AMBASSADOR IN PARIS AT THAT TI ME.

ETA: GENERAL TONE OF DISCUSSION WAS FRIENDLY AND ENTIRELY CORDIAL

AND DELEGATION EXPRESSED SATISFACTION WITH IT ANO URGED ME TO

VISIT VIETNAM AND WHAT THEY ALTERNATELY CALLEO SAIGON ANO HO

CHI MIHN CITY AS WELL AS HANOI AT EARLIEST POSSIBLE TIME. I SAID

I HOPED TO 00 SO, BUT COULD NOT AT THIS POINT INDICATE WHEN

SUCH A VISIT MIGHT OCCUR.

THETA: EARLIER ON SAME DAY DELEGATION HAD SIMILAR DISCUSSIONS

FIRST WITH PRESIDENT AND VICE PRESIDENT ADB AND SUBSEQUENTLY

STAFF MEMBERS ADB. IN THEIR CASE DELEGATION EXPRESSED WISH THAT

ONGOING PROJECTS BE REACTIVATED AS EARLY AS POSSIBLE.

IOTA: STATEMENT TO BOARD OF GOVERNORS MEETING BY HEAD OF DELEGA

TION WAS QUITE CONCILIATORY AND COOPERATIVE IN TONE AND EXPRESSED

HOPE FOR FRIENDLY AND PEACEFUL RELATIONS WITH ALL NEIGHBORING

COUNTRIES AND OTHER FRIENDLY NATIONS AND INTERNATIONAL ORGANIZA

TIONS. REFERENCES TO US GOVERNMENT WERE BRIEF AND MILD.

BEST REGARDS

BELL

440098 WORLDBANK INCO 1JNG mEX ----- D 3 3 4 4 ET PHY A P N ( Telex :0r.) ~Rt?r- 9 REC'D

0 From : ¥.Pnil&

440098 WORLDBANK

MA N I L A T EL E X A P R I L 9 / 7 6

TELEX 440098 ASHINGTON DC

THREE FOR BELL GIB BS HELMERS

ARRIVED HYATT REGECCY

PARA ADB RECEIVED MESSAGE SAIGON WISHES TO REACTIVATE ITS

PROJECTS AKO WIL ALSO USE DJAKARTA MEETINGNTO BEGIN

I } J

JBRD DISCUSSIONS STOP EYE TOLD FISHER TO REPLY THAT HE

UNDERSTANDS IBRO DELEGATION ALSO EXPECTS TO USE ADB CONFERENCE

TO MEET VIETNAM DELEGATION ANO LEARN ABOUT THEIR PLANS PARA

CONSTRUCTIVE DECISION RE CREDITWORTHINESS NO W WIDELY EXPECTED

IN PNG AMONG OFFtCIA WS DIPLOMATS AND FOREIGN BANKERS STOP

WHEN POSITIVE DECISION TAKENNSTRONGLY ADVISE IT BE COMMUNICATED

IN LETTER FROM OUR PRESIDENT TO SOMARE MENTIONING DECISION

IN AP RIL AS PROMISED AFTER CAREFUL STUDY OF GOVERNMENT POLICIES

\NO COM MENDING COUNTRY'S DETERMINATION TO LIVE WITHIN ITS

MEANS STOP AUSTERITY MAINTAINED AGAINST GREAT ODDS CAN BE

STRENGTHENED BY BRIEF LETTER ON SUCH LINES HICH BALO ~ IN

COULD CARRY

PARA HELMERS SHOULD INDICATE TO MORESBY SOONEST EXACT DATES

POPONDETTA NEGOTIATION AND BALDWIN VISIT EVEN If TENTATIVE

KE EPING IN MINO SOME PERSONS INVOWVEO MAY ALSO ATTEND

AOB ME ETING REGARDS

VOTAW

440098 WORLDBANK

3344 ETPHYA PN M

sj

TO:

FRO M:

SUBJECT:

INTERNATI ON AL DEVEL OPMEN T I INTERNATI ONAL BANK FO R ASSOCIATION. ' ; RECONSTRUCT I ON AND DEVELO PMENT

I NTERNATIONAL FINANCE CORPORATION

OFFICE ME/V\ORANDUM Files D ATE: March 26 1976

N,A, Gibb~'f:ing Director, EAP Programs ./21us -{)J(].6'y,:;_; 2S ' / t0/!/JJUO-/ ~j~ C~(ZI, hl

INDOCIITNA O //; /)~</~'<t }< ( , \ t<::u, v'(i/ _vncvvt~ff !,l6

1. Mr. Bruce Cheek, Alternate Executive Director, telephoned me ()' on March 26, 1976 to say that he had recently returned from Australia where he had learnt tha t the Government was interested in moving closer in their relations with the Indochina countrieso An article in this morning's Washington Post indicating that the U.S. might soon be opening discussions with Viet Nam had prompted him to find out where the Bank stood.

2. I told Mr. C4eek that we had recently had quite preliminary discussions with the Lao authorities on the possibilities of project lending in the future, but nothing concrete had emerged. I ha.d the impression that the Government was somewhat uncertain about the type of project they wished to prepare for the Bank Group ' s considerationo

3. Regarding Cambodia I told Mr . Cheek that we had had no discussions with Government authorities &ince the new Government had taken over last year. ~

' 4. Wi t.h regard to Viet Nam I said th t 1·,e ~::i.d' met the Victnanc"'e observers to the UN at the time of the Annual Meeting and the possibility of Bank Group lending in Viet Nam had not been discussed. Relations,

~however, appeared to be quite cordial and the Governor of the National .Bank had written a warm letter of congratulations to Mro van der Heijden

· when he took up his job in Bangkok o

4. Mr. Cheek thanked me for this account·tmd said it was for his information only.

cc: Mr. Bell

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February 11

MEMORANDUM FOR THE RECORD

During a discussion on other matters today, Khelif stated that he had been contacted, unofficially, in Jamaica by the South Vietnamese representative, who asked about the Bank's attitude toward IDA credits to a reunified ' Vietnam.

Khelif stated he was leaving today to return to Algeria where he might well be asked further about this matter by the Vietnamese Ambassador to Algeria.

I told Khelif that:

a. Philosophically, we would welcome a request from a reunified Vietnam for membership in the Bank.

b. Legally, whether a reunified Vietnam would take over the membership of South Vietnam, or be treated as a new state requesting admission, would depend upon the form of the reunification.

c. At the request of Aubrac, when he returned last year from a visit to Hanoi, I met with him. He asked if we would be willing to meet with the North Vietnamese representatives to answer questions they had about the Bank. I told Aubrac we would be willing to participate in such a meeting. Subsequently, we did so, During the discussion we supplied the North Vietnamese with certain documents and other information which they stated they were planning to review. They indicated they might wish to meet with us again. We are fully prepared to do so.

Mr. Khelif stated he would report these three points to the North Vietnamese Ambassador in Algeria.

RMcN:bmm (2/12/76)

RMcN

..--.

Mr. Robert S. McNamara

Bernard R. Bell Q(L~ South Viet-Nam

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• _., February 4, 1976

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Mr. Damry, when he returned from the Jamaica Meetings, brought me the attached statement by the delegation of the National Bank of South Viet-Nam, present at the Interim Development Committee meetings. He told me that the statement had been handed by the head of the Vietnamese delegation to Mr. Knapp who had accepted it on the express understanding that he was not accepting it in any official way (whatever that means) since it related to strictly bilateral matters. As you can see, this statement refers to the Bank and the IMF. at two points as follows:

1. It asks the Bank and the Fund to "manifest attitude demanding that the United States Government put an end to these wrong activities." The wrong activities are evidently failure to provide reconstruction assistance to Viet-Nam and freezing of South Viet-Nam's assets in the United States.

2. It states that the "Delegation of the National Bank of South Viet-Nam deems it worthy to receive all the contributions and assistances reserved by the IMF, the IBRD and their members for South Viet-Nam's

,

speedy economic recovery and development, ••• " ..

I do not believe that the statement requires any response from us and I recommend that we file it.

Attachment

cc: Messrs. Knapp Votaw

BRBell:mjd

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. ; ) ( ' by the Delegation of the National Bank of South Viet Nam at the meeting of 11v1.. .

the In.terim and Development Committees of the IMF and the IBRD held in //.,;,,

Kingston (Jamaica) from 7 to 10/1/1976.

The war which lasted for more than 20 yoars has endc.u and peace has been

restorc:d on our country t1is from /\pr11 30t h, 197!3.

,,,

During this long and Nery ntroc1ous war of aggress1on, the United States

has caused innumerable damages and suffering,to our people and ·our country

from the South to the North. Its consequences are very great and serious. In

the North, many cities, villages, thousands of economic, cultural and social

buildings have been dev~stated. In the South, U.S. bombs, bullets, toxic

ichemic.als .hav~ destroyed hundreds of. thousands of hectares of lands and

millions of hectares of forests; Jn the rural areas, rubber plantations,

orchards, have been razed to the ground; millions of peasants have been herded

to the most miserable cont~ntration camps. This war has also left to South -

Viet Nam, 3 mtllion ' of une~ployees, hundred~ of thousands of invalids, - -

prostitutes, orphans and tens of thousands of youth dru~~addicts .

. '

In the past eight months, with the efforts of healing the war wounds, ~nd

rebui 1 ding the deva~·tated Sou.th .Vfot Nam. th~ Pt"o\/i ~ iona 1 R~vo 1 utionat".Y Gov~t"n-- .

ment of\he Republic of South Viet Nam, with the wholeheart,d support of the · -

Nor~h, ~as made great endeavours to stabilize the people's iife and rebuild the ' . .

country. Discipline and security have been restored, starvation has ended,

hun~reds of thousandi of people have been helped to go back to their own land;

prostitution and robbery have no longer existed, many bNnches of industry a11d I I .

handicraft are working normally, and the economic and cultural relations with -

many countries have been established and are being intensified. In. these - -

activities, the National Bank of South Viet Nam has brought active contributions n

-especially in the field of giving loans so as to recover and develop the economy,

and stabilize the people's life. These initial achi'evements of the revolutionary

power are worthy to be very pleased. However, to heal the war wounds caused by

., - i. -..

···.~

the United States and its lackey administration, the Provisional Revolutionary -~

Government and the people of South Viet Na~ have to make greater efforts.

, For the part of the United States, instea·d of seeing its responsability -

towards the war consequ~nces it has caus~d to Viet Nam and instead of bringing - . . . - . . - .

active coht~ibutidns to th~ settlem~nt of these tonsequenc~s, it has shown

reversing attitude and activities. The United States has not implemented the

Article 21 of the Paris Agr::";~nt according to which it committed to bring

contributions to the healing of the war wounds in Viet Nam and Indochina; it -

has imposed embargo toward Viet Nam, forcing the American banks and others to ·

~reeze the deposit accounts of the National Bank and the commercial banks of~

South Viet Nam, which amounted to 90 million of dollars, in defiance of the -

international laws as wg_11 as the common banking laws of the world, opposing

to the peaceful econo~; c)reconstruction of our devastated country after more .-. than twenty years of a destructive war.

This act runs counter to the IMF and IBRD members which ·are helping arid

supporting the developing countries especially the countries confronted with

many difficulties.

· We ~equest the International Monetary Fund and the International Bank for

Reconstruction and Development to manifest ~ttitude demanding that the United

States Government put an end to these wrong activities. We hope that the U.S.

~. ~··.,..,.. .. ~ :. ' Government wi 11 reconsider this at'ti tude. We wish to express our sincere

thanks to the countries in the South East Asian Group which have unanimously -

adopted in the . preparatory meeting .of the Group in Kathmandu {Nepal) from 20 -

to 22 of December, 1975, the .recommendation requesting the United Nations to -

include Viet Nam to the list of the "most seriously affected" countries as a -

result of war.

As the principal purpose of our present meeting is to seek ways and means

to settle the frirn<.!d1atc s1tu~tion 9f the poorest developing countries and that

of the most affected ·developing countries, the Delegation of the •Nat.ional Bank

·· of South Viet Nam deems it worthy to receive all the contributions and

~ assistances reserved by the IMF, the IBRD and their members for South Viet Nam ,1

f· ·

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speedy economic recovery and development, on the basis of reciprocal benefit

and mutllal respect of national independence and sovereignty. The National -

Bank of South Viet Nam, in the capacity of the repres~ntative of the Provi·

sional Revolutionary Government of the Republic of South Viet Nam in the

International Monetary . Fund and the World Bank, will cooperate closely with

the other countries in the legitimate intetest of ~11 member countries.

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NOTE AND FILE SIGNATURE

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ROOM NO. EXTENSION

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D Indicate the organization, meeting, research study (RPO No.) to which the attached refers.

D Forward the attachment referred to in the attached correspondence.

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~ f you wish the attached "confidential" material placed in a safe, please indicate who is authorized to see it and the date it can be declassified.

Thank you.

FROM: ROOM NO.:

Form No. 27 (3-70)

I IJJ -INTERNATIONAL DEVELOPMENT

ASSOCIATION



INTERNATIONAL FINANCI!

TO:

COUNTRY:

TEXT: Cable No.:

AUTHORIZED BY:

NAME

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OUTGOING WIRE

INTBAFRAD ( DATE, O<'.'.'ober 20, 19?V

----CLASS OF BANGKOK SERVICE: TELEX

THAILAND (Extn . 3571 )

No .

CONFJJ>ENTIAL FOR BIDBEL.

ALPHA. REFUR 630 WE HAVE RELEASED '.JlfE '1'\0 CONSULTANTS AND !DOK

FORWARD 'ID HEARING FroM UMBRIGHT AFTER HIS VIENTIANE VISIT.

~ . i-r>ULD BE MOST GRATEFUL IF YOU COULD SUPPLY A BRIEF

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APR. PERHAPS VOTAW COULD BRING IT ID WASHING'.IDN. REnARDS

GIBBS

NOT TO BE TRANSMmED


Messrs . Bell (thru Mr . Ruddy) Kirmani

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INTERNATI ON AL DEVELOPMENT I INTERNAT IONAL BANK F6Fr' ' INTERNAl'+QWI: FIPlfir~ev kl .. ASSOCIATI ON RE CONSTRUCTION AND DEVELOPMEN y · . / CO~PO ATION

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Files n DA TE: October 20, 1975 •

S, Ruffin\~ N, GorjestaniV

Indochina: · Discussions with Staff of the Executive Director for Scandinavia, Finland and Ice~and

On 3 October, 1975, Ms. Gunilla Svedin, staff assistant to Mr. Sigurdsson, Executive Director, visited us to discuss the status of Bank relations with the countries of Indochina. Ms. Sv:edin indicated that she was preparing a background brief for a high level Swedish delegation led by Mr. Klakenberg,Deputy Foreign Minister for Economic Affairs, which would visit South Vietnam and Laos during the month of October to discuss current economic conditions and external assistance requirements of those cotUitries. In response to Ms. Svedin 1s inquiries we provided the following information:

1. General: Laos, Cambodia and South Viet Nam were members of the Bank' and IDA. The recent changes in -their governments have not altered their legal status in the Bank. At the ...Annual Meeting, Laos and Viet Nam were represented by official delegations,(the South Vietnamese delegators, however, were the Permanent observer at the UN and his assistant}., while Cambodia was not represented at all.

2. Laos: IDA assistance of $15 million out of the Fourth Replenishment ~been tentatively earmarked for Laos for FY76-77. After a number of exchanges since the Meeting in Manila, the Bank and . the Government were at present pursuing agr.eement on the general outlines of an agricultural project directed towards increasing food production. It has been agreed with the Goverrunent that if and when such a project reaches appraisal s!age..J. . .c:1. Bank mission would visit Laos; but this was unlikely to take place before the end of 197S • Bank relations with Laos are friendly at present. In the past, some political elements in Indochina have had a negative image of the Bank which we believed was due to bo~h lack of infonnation and mis-information about the Bank. As a result of recent contacts (economic mission in Vientiane, meetings in Manila and Washington) the Laotians had developed a better understanding of the operations and policies of the Bank.

3. South Viet Nam: There have been no activities related .to lending by the Bank in that country. A meeting took place between · the Governr,1ent I s observers at the Annual Meeting and Bank Staff but this was a purely courtesy affair during which infonnation on Bank's operations and policies were exchanged. There has been no request for assistance from the Bank by the PRG of South Viet Nam.

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4. Cambodia: There have been absolutely no contacts 9etween the Bank and the present Cambodian Government. i

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RECOMMENDATION

SIGNATURE

REMARKS

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FROM

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FOf\'M NO. 75 (7-73) WORLD BANK GROUP

DATE • ROUTING SLIP

NAME ROOM NO.


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!iZ(lf you wish the attached "confidential" material placed in a safe, please indicate who is authorized to see it and the date it can be declassified.

Thank you.

FROM: ROOM NO.: EXTENSION :

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ASSOCIATION

INTERNATIONAL BANK FOR INTERNATIONAL FINANCE

RECONSTRUCTION AND DEVELOPMENT CORPORATION

-0 U T GO I N G WI RE

DATE: tw7 TO: INTBAFRAD

BANGKOK CLASS OF

SERVICE:

OCTOBE~975

TX ~7~~103)

THAILAND COUNTRY:

TEXT: ~ FOR BLOBEL Cable No.:

THANKS YOUR 596.

BANK RESPONSE ALMOST CERTAINLY POSITIVE AND SHOULD BE CONVEYED FORMALLY )I G.. ST f:i.R D 4-Y

TO UMBRIGHT TOMORROW, SINCE CABLING YOU 0N I lffll.i J7FF27Jf'::1!7 ~ LlblSl:I

W•'fIONS PROV.E:WIUj HAVE mKNK» SEEN CABLES AND LEARNED OF CONVERSATIONS

BETWEEN KNAPP AND UMBRIGHT LAST WEEK DURING MY ABSENCE IN PARIS. UNDERSTAND

BANK PREPARED TO PROVIDE EXPERT AND PAY EXPENSES. ONLY REMAINING UNCERTAINTY

IS JUST WHAT SKILLS NOW NEEDED AND BECAUSE OF CHANGING SIGNALS FROM UMBRIGHT

PERSONNEL NORTH PHONING UMBRIGHT ON KNAPP'S INSTRUCTIONS TO CLARIFY.

REGARDS

VOTAW


AUTHORIZED BY: CLEARANCES AND COPY DISTRIBUTION:

NAME Gregory B. Votaw

DEPT. East Asi

REFERENCE:

ORIGINAL (File Copy) (IMPORTANT: See Secretaries Guide for prepar ing form)

cc: Messrs. !i] h Gibbs

GBVotaw:jw For Use By Communications Section

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INTERNATIONAL DEVELOPMENT I INTEF«ATIONAL BANK FO~ I .2!:::0:A,1tt;~; / ASSOCIATION RECONSTRUCTION AND DEVE~:/~ ~OR~O~~ /~;ej

OFFICE MEMOR1:.,ND , T p Files DATE: October 6, 197.5

S. Ruffii\) , Div. A, East Asia & Pacific Programs

VIET NAM l~ gional Management Meeting with ihe Vietnamese Delegation Annual Meetings 1975

1. The following members of the delegation of the Republic of South Viet Nam called on Mr. Bernard R. Bell at 3 p.m. on September 4, 1975:

Ambassador Dinh Ba Thi, Permanent Observer to the United Nations

Mr. Huynh Huu Nghiep, Assistant Permanent Observer to the United Nations

Mr. Phan Quoc, Interpreter

Also present for the Bank were: Messrs. Votaw, Kirmani, Baneth, Hasan, Blobel, Gibbs and Ruffini. The meeting lasted about one hour. The atmosphere was frank.

2. IBRD Bonds: Mr. Bell, after welcoming the delegation, thanked the Government of the Republic of South Viet Nam for having offered to subscribe $1 million to the September 1975 two-year bond issue. Ambassador Thi asked how the Government could pay the Bank for the bonds. Mr. Bell explained that payment could be made either in cash or by rolling over atnaturity the $1 million in two-year bonds held by the Republic of South Viet Nam in the September 1973 issue. Ambassador Thi stated that these bonds, together with another $3 million of Bank bonds owned by the Republic of South Viet Nam (for a total of $4 million), had been frozen by the United States Government with all other assets of the Republic of South Viet Nam (estimated to be about $60 million) deposited in the United States; therefore, the bonds were outside the control of the Government of South Viet Nam. He was also quite concerned that the Bank bonds could have been misappropriated by the previous Government and asked what action could be taken to prevent a representative of the previous government encashing the bonds.

3. There followed a general discussion on the question of the Bank's twoyear bend issues, covering such matters as whether Bank bonds were immune from being "f'rozen" by other Bank members, what type of bonds was involved, whether they could have been sold in the secondary market and whether they were safe f'rom misappropriation. Ambassador Thi stated that he realized that the question of' f'rozen assets was an issue between the United States Government and the South Vietnamese Government; however, he thought that the Bank had some obligation to help his Government recover these IBRD bonds. Mr. Bell assured the Ambassador that the Bank would do everything possible to help the Government in this matter, and he would consult with the Bank 's legal staff'. He noted, however, that the

·- ...

'lb Files - 2 - October 6, 1 97 5

Bank does not keep a record of who holds the bonds and suggested that the Government should check with the Chase Manhattan Bank in New York, which was the Vietnamese National Bank's depository in the United states. He undertook to keep the South Vietnamese delegation informed . l/

4. Membership: Mr . Bell sought to make clear to the .Ambassador that South Viet Nam was a member of the W:>rld Bank and that, as such, South Viet Nam enjoyed the same rights and privileges, and carried the same obligations, as any other member . The .Ambassador said he would pass this information to Saigon.

5. Ambassador '.1hi enquired whether one Bank member could veto the grant-ing of a loan to another member. Mr. Bell explained that a member could indeed oppose a loan to another member; however, the decision to make a loan was taken by a majority vote and since no Government held a majority, no country had veto powers . Mr. Bell explained that there had been occasions, f ortunately rare, when some members, including one or another larger member, had opposed a proposed Bank loan; but in all such cases a majority voted in favor, and the loan had been approved .

6 . ADB: 'lhe .Ambassador asked what were the relations between the Bank and ADB . Mr. Bell replied that the two institutions were quite separate, but there were frequent contacts between the staff of the two Banks on matters of mutual interest.

7. Conclusion: In concluding the meeting, the .Ambassador said he hoped that the relationship between the Bank and the Republic of South Viet Nam would be good in the future and that he relied on the good offices of the Bank to recover the IBRD bonds frozen in the United states . Mr. Bell welcomed the frank exchange during the meeting and stated that he also looked forward to good relations in the future . Mr . Bell assured Ambassador Thi that the Bank would do everything possible to help the South Vietnamese Government on the bond issue problem.

l/ The bonds were subsequently located at Chase Manhattan and the National Bank of Viet Nam confirmed its intention to offer the maturing bonds in payment of $1 .0 million for the September 1975 issue . This amount was allocated to the National Bank of Viet Nam and the transaction has been completed. The Bank ' s General Counsel was kept informed of all steps in this process and asked to consider the general question of "immunity from freezing", which had been raised by this episode .

• To Files - 3 -

Cleared with & cc: Mr. G.B. Votaw Mr. N.A. Gibbs

cc : Messrs. Bell Kinnani Baneth Hasan Blobel Sella Fbntein Applegarth

SRuffini:at

October 6, 1975

,·

.... . , 7 U/£1 ffi1) 1 ~rs: REPUBLIC OF SOUTH VIETNAM

OFFICE OF THE PERMANENT OBSERVER TO THE UNITED NATIONS 20 Waterside Plaza , New York, New York 10010 (212) 685-8002

Le 6 octobre l975

OCT O REC'D

Monsieur le Directeur ,

./ Je vous remercie pour votre ldtre du l8 septembre

ainsi que les copies de l a corr~s r ondance echangee avec la Banque n ationale du gud- Viet-Nam .

Quant la question du drapeau , nous avons fourni , durant notre sejour a 1.'ashin ton , un drapeau du Sud VietNam au F.MI , drapeau qui a et mis a vec les autres dans la salle de reunion le dernie r jour. Je vous envoie ci- joint neanmoins un mod le .

Les nroportions sont les suivant es

- Largeur : 2

- Longueur : 3

- Diametre du cercle circonscrit a l ' etoile :

1 ( soit la moitie de la largeur )

- Le rouge constitue le haut du drapeau .

En vous rem rciant ainsi que Ml\1. Bell , Gibbs et Ruf fini pour votre assistance , je vous u ri·e de croi1 e , ¥onsieur le Directeur , ma haute consideration .

~ a-~-rr-_h_i·----

Ambassadeur ex traord inaire et plenipotentiaire , Observateur pe rmanent aupres des Nations Unies de la Re ublique du Sud Viet - Nam

Monsieur Gregory B. Votaw Dire c teur des programmes Regi on Est Asi e B. I . R. D. Washing t on D. C. P . S . Je vous prie de noter que le bureau

dont l ' adresse est donnee ci- dessus ferme r a provj so i rement a partir dull octobre l975 .

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ar Mr. aseadort

It as pl asure to make your qud.ntano during the Annual 1;:ma. Encl.osed tor y-our info tion copies of oorres• pondenee e=hqed 'Id.th the National. Bank of Vietnam on th aul:)jeot of th two-;rear bond issue. I was glad that it was possibl to reso1ve the ilrmecliate problem e tisfaoto~.

l understand that th o! previous ad.mini tration ot the pw>lic o.f · uth Viet.rua w s1illl on diapl :t, th Bank's Headquartent at the time of your Ti.sit. 1be nag has en removed; ple oept our apologie,s for th1a oversight. '.I.he Prov.Lsional. Revolution.arr OoT rment nag will be dbplqed soon as the Bank's supplier can provi.d me consistent with the offloial mea8UNll'lente and colors. ou1d appreciate, therefore, your providing us w:t.tb an o1'.t"ic1al flag so th :t can have 1t reproduced tor displq with mtm 1XPJlll d.e1 •

Please do not h itate to contact Mr. 11, Mr. Gibbs, Mr. Rltffini or me it there is a1I1' we:, 1n wh1ch the Bank can be of

sistance to your country.

Hie · ellency ba.ssedor Dlnh Ba 1b1

Office ot the Pemanent Obsel'"V'8r of the public of South V1e to the United Nations 20 Waterside Plaza, .Apt. )4-D ew Yolk, N.Y. 10010

Enclosure •

cc: Messrs. Po Damey D. Harris

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... J • ai ,t, trea honor, d8 t ire wtre oonnaiaeance lor de l

r'1nion annuelle du Fonda n6t~e Internatiooal. .t de la Banque Mond.ialeo Comme convanu, wua trouverez ci .. joint, pour votre in.formation, copie de la correspondance flcbangle avec la Banque ationale du Viet aa au euj.t. daa obligation• Banque ond1.ale a

deux ans achet'8a par votre pay-a. J'ai '1;6 heureux d•apprendre qu•il a ~, possible de trouver une aolution aatillfaieante au problem• imm&diat.

n m•a &t.6 indiqu, qu le drapeau & pr&c£dant gouvernement de la u.blique dU SUd Viet am ltait encore en pl ce au aiege de la Banque lore de wtre Vis! te. Ce drap-.u a ft' enlev,J je wus pri d • accepter mea excuNa pour notre inattention. Le drapeau du gouvernement r,"90lutionnaire pron10ire Nra Dlia en place 1 notre aiege d.Aa que notre tourniaaeur pourra noua t11 procurer un contome aux proportiona et coul.eura o.f'ficiell••• A cette .tin, je voua aera:111 tree oblig' de noue faire tenir un 41D11plaire &a votre drapeau a.fin de pouvoir le reprodlli,re le plua dama.ent poaeible.

'h,aitez pa•t je voue prle, l conta.cter M. 111 G:1bb1, M. Rut.tini ou moi-mlme ai wus penaez qua la Banque peut aider votre pay-1 d •une manik'• ou d •une autre.

Je voue prle de recevoir, de ma haute conai~ration. ·

oneieur l•ADi>aaaadeur., l•aasurance .

• otaw Direct dea Prograuaea

Direction Reg onale de l•Asie de l•Eet et du Pacitique

Son Excellence Monei.'8111' l • .Allbaeaadwr Dinh Ba 1hi !Nreau de 11 <l>1serTB.teur Permanen:t de la n,publique du Sud Viet Nam aupres dee Nations Un1ee 20 ateraide Plaza, pt, • .lb D New York, .Y. 10010

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72 2 RE YOURS SEPTEMBER 6 PLEASE DIS REGARDS OURS

SEPTEMBER 5 TEST 6 75 STOP . THANK FOR YOUR COO?CRATIO~ AND

WE WOULD INSTRUCT OUR AGENT CHAS E MAFHATTA."rnAI.:i K NEWYORK TO

PROCEED WITH NEW SUBSCRIPTIONS OF IBRD BO~DS ISSUED

SEPTE~IBER 15 1975 REGARDS

BANVINA

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ATITITU DE OUR USOOLLAR FU NDS ARE BLOCKED BY TR EASURY

DEPA~ TMEN T REGULAT]ONS AS FRO M APR IL 30 COM MA ~2 CANN OT THUS

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FU.OM YOU 'I'O S DER a;:• Y 1973

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Messrs. Bell, Votaw and Gibbs September 4, 197.5

s. Ruf'.fini l VIET NAM - Meeting with the Vietnamese Delegation at the Annual Meeting

1. On Monday, September l, I et Ambassador Dinh Ba Thi and Mr, Huynh Hu.u Nghiep, the Vietnamese del g tion to the Annual Meeting. The conversation was very cordial and it lasted about one hour.

2. I informed the delegation that I had sought the meeting to let them know what the World Bank Group is all about. During the conver ation, I emphasized that the Bank is an apoliticaJ. organi~ation, the msnbers of which belong to the widest range of political beliefs including several ocialist and elf-defining socialist countrie. I also e~lained that in

the Bank staff t.he widest spectrum of nationall ties is re anted. I xpanded on the Bank procedures end 1n particular, on th requirement \ ,

to send missions to our member countries to assess their' ecoriomic performance and the viability of the projects proposed for Bank Group financing; 3. The Vietnamese deleg tion enquired (1) whether Viet Nam was still

member or whether the rather "sp cial. conditions" upon which the administration had changed raised the question of renewing Viet Nam's membership, and (2) whether the Bank had den operations in Viet N in the past.

4. They were pleased to leam that Viet Nam is still a Bank member and that no lending op rations had been c rried out with the previous administration. I e~lained that the main reason was because that administration, in our opinion, wa:! not 1n position to mobilize ei"ficiently resources for economic development •

;.,

.5. Af'ter cautiously qualifying my request to avoid giving the ilnpression of being pushy, I asked Ambassador Thi whether be had the intention to sign copies of the letter registering him to the Annual Meeting as Governor for the Bank. The Ambassador quite frankly tated th&t he had not received instructions as f r as 1he Bank w s cone med. Mr. Nghiep told me that the Bank should not mind this informality ince the important thing was that a Vietnamese delegation w at the Annual Meeting.

6. The deleg ti.on was not aware ot the exchange of messages we had lately with the National. Bank of Viet Nam with reference to the debt/credit position of Viet Nam in th Bank. Upon request, I provided the delegation copies of this correspondence, as well a the 1973 and 1974 economic reports on Viet Nam.

7. The Ambassador noted, on a low key and w1 thout complaining, th t the Vietnamese nag w s not displayed in the meeting room and that the nags of the previous dministr tion were still on display both t the Bank and t the Pund. I apologized and undertook to follow the matter up within the Bank. (I talked on th subject with Mr. D ry who g ve instructions to remove the flags t the Bank. Mr. Demry also stated that the Banic would be glad to display the Vietnamese flagJ however, to avoid embarrassing mistakes, he requested me to ask th Government to provide the Bank with an official flag with the official design, eize and colors.)

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8. You may wish to recall that in the last few months we had S!Veral contacts with the Government of Viet Nam and the National Bank of Viet Nam, on the following occasions:

(1) When the Government enquired about the status of debts and credits held by the Bank (copies of correspondence attached);

(2) When the Bank requested, and reclived Government's • pproval to accept the membership of Grenada (copy of correspondence attached);

(J) When the Bank proposed, the National Bank subscribed, • and the Bank alloted $1. million of the B . .i.nk' s two-year bond issue (copies of correspondence attached); and

(4) When the Government advised the Bank that Mr. Trenduong had been appointed new Governor of the National Bank.

9. On August l Mr. Damry sent a cable which en unanswered, in which he asked whether Mr. Tranduong had been officially designated Governor for the Bank Group.

,II

10. The Vietnamese delegation h&s with Messrs. Tun Thin and Woodley on September 2, 1975 and is scheduled to see Mr. Witteveen this morning September 4.

11. During your meeting with the Vietnamese delegation you may wish to:

(1) point out our previous relations with the Government

Attachments

(and perhaps comment upon the purchase of the Bank's bonds);

(2) inform them that the flags of the previous administration had been re100ved; and

(J) ask that the Bank be provided with a nag with the of.fl cial design, sizes and colors.

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Document Date

01 July, 1975

Correspondents / Participants

Document Type

Letter

To: Chief Secretary, Ministry of Foreign Affairs From: Bernard R. Bell, Regional Vice President

Subject / Title Statement of Republic of Vietnam's account in IBRD as of April 30, 1975

Exception(s) Financial Information iv

Additional Comments



Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


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TO:

CO:J?HRY:

TEXT: Cable No.:

0

AUTHORIZED BY:

NNAE

OEf>T.

S1GNA1URE

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'. ~TERNATIONAL DEVELOPMENT

ASSOCIATION


RECONSTRUCTIO AND DfVELOPMENT

INTERNATIOt-.AL FINANCE

CORPORATION

TO: CIRCULAR CABLE NUMBER ONE DATE: AUGUST 28 , 1975

CLASS OF

SERVICE: FULL RATE OR TELEX

COUNTRY: SEE ATTACHED LIST

TEXT: RF:GARDING YOUR SUBSCRIPTION FOR NEW ISSUE OF INTER1 ATIONAL BANK FOR RECONS1RUCTI0r-i Cable No. :

AND DEVELOPHENT U. 40 PERCENT 1.WO YEAR UNI TED STATES DOLLAR BONDS TO BE DATED

SEPTF:HBER 15 , 197 5 DUE SEPTEMBER 15 , 1977 OFFERED AT PAR WE CONFIRN ALLOTMENT TO

YOU OF $ (I NSERT 1) PRINCIPAL AMOUNT OF SUCH BONDS STOP DELIVERY OF BONDS WILL BE

MAD~ AT THE OFFICE OF FEDERAL RESERVE BANK OF., NEW YORK , 33 LIBERTY STREET , NF,i,1

YORK AT TEN A .N. NEW YORK TIME SEPTEMBER 15 , 1975 AGAINST PAYMENT IN FEDERAL

RESERVE FUNDS AND / OR SURRENDER OF THIS BANK ' S MATURI, G 8-5 / 8% 1.WO YEAR BONDS OF

1973 DUE SEPTEMBER 15, 1975 IN THE AGCREGl TF. F.QlA1. TO 11:r PTIT . 'r.T'Pt~I. A}:OL:T O?

YOIBl ,\LLOTMENT STOP UNLESS YOU ADVISE US OTHERWISE RIOR TO CLOSE OF BUSINESS

SEPTEMBER 4 INITIAL DELIVERY WILL BE MADE IN ONE REGISTERED BOND IN YOUR NAJ.'1.E

WHICH MAY BE EXCHANGED AT A LATER DATE WITHOUT CHARGE FOR COUPON BO~DS IN

DEKOMINATIONS OF $1 , 000 , $ 10 , 000 AND $100 , 000 OR FOR REGISTERED BONDS IN DENOt'1INA

TIONS OF $1,000 OR MULTIPLES 'IBEREOF STOP PLEASE CABLE PRIOR TO CLOSE OF BUSINESS

SJT TEMilER 4 PRINCIPAL AMOUNT OF MATURING BONDS TO BE SURRENDERED IF AN-Y AND NAJ.'1.E

OF YOUR NEW YORK AGENT WHO WILL MAKE PAYMENT FOR AND ACCEPT DELIVERY OF BONDS

STOP TESTED FOR PRINCIPAL AMOUNT ALLOTMENT ONLY . ( INSERT 2)

' '

INTBAFR/\D

NOi TO o::. T~, SMiTIED

AUTHORIZ(D BY: CLEARANCES AND COPY DISTRIBUTION:

NAME Hans C. Hittmair

orrr Tr caA 11rcr ' s

' , Jc •NII 1111/r

< SIGNATURE OF INDIVIDUAL AUTHORIZEO TO APPROVE)

kf. JlR fNL~, .IBRadi f era /DEHa rri s: r,1h I

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-~ ORIGINAL (File Copy)

cc : and cleared with : Mr . Yokota cc : Messrs. Cargi ll

Rotberg Hittmair cl r> I\ I"',. k

Veely/Sec.Div.r1les

For Use By CommunJC alions Scctior.

CIRCULAR ALLO'l'MDJT CABLE NUMBER. ONE

Cable Address

CURBOR Abu Dhabi, United Arab Emirates

GOVERNBANK Taipei, Taiwan, Republic of China

CENTRABANK Nicosia, Cyprus

NA TIONALBANKEN Copenhagen, Denmark

BAGEN San Salvador, El Salvador

\)

NATIONBANK Addis Ababa , Ethiopia

BANGRECE Athens, Greece

GUATEBANCO Ciudad de Guatemala, Guatemala

CENTRALBANK Reykjavik, Iceland

RES ERVBAN'l Bombay, India

ISRABANK Jerusalem, Israel

KORFABANK Seoul, Republic of Korea

KENYABANK Nairobi, Kenya

MAURBANK Por t Louis , Mauritius

RABA BANKJNG Kathmandu, Nepal

NETHERBANK Amsterdam, 'lhe Netherlands

Insert 1 I

$ s,000,000

$3,000,000

$ 500,000

$ 2,000,000 .

$2,000,000

$2,000,000

$1,000,000

$1,000,000

$1,000,000

$ 2,000,000

$ 2,000,000

$4,000,000

$ 4,000,000

$ 500,000

$ 2,soo,000

$4,000,000

Ins ert 2

907

928

759

570

574

796

524

S2S

527

$80

670

657

821

815

816

575

... - c::. _,

•

• Cable Address Ins er t 1 Insert 2

BANCED ENIC $1,000,000 536 Managua, D.N., Nicaragua

FIDUCIA $ 5,000 ,ooo 839 Muscat, Sultanate of Oman

RESER.BANCO $2,000,000 592 Lima , Peru

PH ILG ENBANK $ 2,000,000 608 Manila, Philippines

MONETARY . $ 3,000,000 981 Singapore, Republic of Singapore

RESilANK $1, 000,000 545 Pretoria, Republic of South Africa

.. BANCO ESPANA $ 2,000,000 714 Madrid, Spain

CENTRALBANK $ s,000,000 732 Port-of-Spain, Trinidad and Tobago

y BANVINA $1,000, 000 589 Saigon, Viet-Nam

CENTRALBANK $2,000,000 834 Georgetown, Guyana

•• I,

'

I

FORM NO . 75 (7 - 73) WORLD BANK GROUP

DATE

[2u,;, l , ROUTING SLIP / 11/) -NAME ./ ROOM NO.

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(/

APPROPRIATE·DISPOSITION NOTE AND RETURN

A PPflOVAL NOTE AND SEND ON



X IN FORMATION PREPARE REPLY



Rr ~MRKS

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FORM NO . 75 il-7 3) WORLD BANK GROUP

DATE ROUTING SLIP 1 r_uly 30 , 1975 & / Il l ROOM NO.

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APPROPRIATE DI SPOSITION NOTE A ND RETURN

APPROVAL NOTE A ND SEND ON

G() MMENT PER OUR CONVERSATION

V FOR ACTION PER YOUR REQU EST

V INFORMATION PRE PARE RE PLY

INITIAL RECOM MENDATION


r- ~ ARKS

Attached is a free trans l ati on r e ceive d f.tO", Ll,e Ha.L .i. umi.l bt.1.ll!\. u .L lei., r a.l.U ( ' . \ aigon J •

(I . ~ , V

. N. Damry (~

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-FROM ROOM NO. EXTENSION

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, I HAVE THE HONOR TO INFORM YOU THAT BY DECREE NO. 04/PCT-75

DATED JUNE 6, 1975 THE PRESIDENT OF THE PROVTSTO \ T, REUQLUTIO .. A.!.Ti GOVI:RmIENT OF '1'1-J.E REPUBLIC OF SOUTH VIET-NAM HAS DESIGNATED MR. TRANDUONG AS THE NEW GOVERNOR OF THE NATIONAL BANK OF

-v-I~Si'OP THE S.Afffi DECREE AUTHORIZES THE NATIONAL BANK OF VIET-NAM TO RESUME ITS ACTIVITIES AND DEFINES ITS NEW RESPONSIBILITIES AND FUNCTTONS

&,_\;~

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o,rn No. Z7 r.t -70)

.' IN1ERNAllONAL DEVElOPMENT

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INTERNATIONAL FINAA'Cf

A~IATION

INTERNATIONAL BANI( FOR

Rt-CONSTRUCTION ANO DEVELOPMENT CORPORATION ..

TO:

. ,. · ..... -- ' :, . . :. :.....

COUNTRY:

TEXT: Cable No.:

0 U T G O I ,-! G W I R E . . '

.. . • .-.. ···.·.--·. ,_

B.ANVINA · ·· · • ... ~, · .· ·· ·· · SAIGON .--· >-·\ .... : c- .,,-_ :~:.-~·: ... ~-/--):.. ·.,

DATE: . J,,UGUST 1, ·<

... . ·., .. -.· , ' · . · .. · :·; > ·., .. ,, ·( ' : . ... ·. i.: : . . • · •· • :.- ctASS OF _.. ' · · _. · ·· .. ~.-~:. ·' -:·· :. ,_. .. '··· ·. •·· SERVICc. LT ., . , : ~ ~. -· -.: .. -.. .. r . .. _., L; .: •. • • - .

1975

•, ... . ~ -. -... .. ;.. · .. : ... :. : ..... ~-·. ·•· •.· ·_,:· --:../ .. ... ·,. } -:_ ,·. . -·:- - .. • .. t • • _,... - ·' • • •• ,:. - :.... ' - . ... ·;_::, .......... ... _-. ·,. '"---• • • .... •• • ..- .', • .:: "'"':·:

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, •. : -:-~ ;:\;:'{ ; }':~;:::[t;{}t ~i \t~f f (·'. . ~, . ; . : - -.

VIETNAM

VOUS ACCUSONS RECEPTION VOTRE TELEGRA11ME DU 29 JUlli NOUS .rnNONCA1'IT NOlilllATION .I

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DE M • . '.J.'RAN _ DUONG AU POSTE DE GOUVER.lfEUR B./l.NQUE . NATIONALE IlJ VIEINJJ,f STOP .. ,, . .-

' .

WI ADRESSONS NOS FELICITATIONS A CEITE OCCASION ET VOUS D:11AlIDONS BIEN ... _ · .. : .. ""\ -- ! . / - - , . -: .~- .. _,,.. .. . ., . VOULOIR NOUS FAIRE ·sAvom si M. TRAlf DUONG A. ETE OFFICIELID9iT DESIGHE

>-~· -·.:._-:. •:- :.. .... ·.' · · ··f ... ' .. : . ( COHME GOUVERNEUR DU GROUPE DE LA .BANQ:JE POOR .LE VIETNAM DU SUD STOP

• • r• -, : - • • • •" -• • .. • • J .,··., · ·-. -:._ .. ; ' ....

vou~ SERIONS, EGALEHENT OBLIGES ·Nous FAnm· PARVENIR COPIE w DECR::,"i' ••• ••• ' : ••• • • .- -- • .. :. f

~·! · ... --. - ... .

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AUllfORIZEO BY: . /· ... ~ .

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DEPT.

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<5JG1~ATUR£ O ,"' INiJI VIOUAL AUTHOI ::n;o REF~RENCE:

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CC!: Mr,.~ .-·~.

Fontein

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J -:.- .-

1975 BRIEFING PAPER

VIETNAM

DELEGATION

Ambassador Dinh Ba Thi Mr. Huynh Huu Nghiep

DELEGATION OFFICE

Address

Phone

Not available.

Main Contact

MEETINGS

With Messrs. McNamara/Knapp

Messrs. Bell/Votaw

Divisional level meeting

others

McNAMARA/KNAPP BRIEFS

Main Brief for McNamara/Knapp

BELL/VOTAW BRIEF

Main Brief for Bell/Votaw

APPENDIX

: none proposed

none proposed

none scheduled

: none scheduled

: Dated August 29, 1975

: Same as McNamara/Knapp Brief

Mr . J. Grenfell's memo of July 28, 1975

L.

VIETNAM

197.5 ANNUAL MEE'I'JNG BRIEFING PAPER

(Note: Delegates likely to speak only in French.)

SECTION I

'Ihere have been no lending operations nor is there a lending program for Vietnam.

A. ISSUES '.ID BE RAISED BY VIE'JN.AM DELEGATION

If the delegation meets at all with Bank staff, they may well enquire in very general terms about how the Bank makes loans, what projects would be of interest in Vietnam and how our economic work is conducted.

SECTION II

A. ISSUES TO BE RAISED BY MANAGEMENT

None at this time.

A. BIOGRAPHICAL NOTES

SECTION III

Ambassador Dinh Ba Thi Mr. Huynh Huu Nghiep

Both Officials are SVN observers at the United Nations. At this meeting it is not certain whether (i) Mr. Dinh Ba Thi is coming to the .Annual Meeting as "Observer" or as "Governor" or (ii) if he wishes to meet with Bank Officials.

....

••

Kr. P.N. Damry. Secretary

Piero Sella, Legal Department

Viet Nam.-

ugu.9t 22. 1975

The ~ o-rld auk has been informed by cable that the Provision 1 RevolutionaTy Covern:nent of tbe l: el)ublic of South Vietnam in F igon bas

J

aasumed full authority over the terTitory of South Vietna and has further Teceived varioue con.munications fro the governmental authorities in Saigon relatin to the relati.onship between the tlorld Bank and South Vietn ~ including relationships with the previous governme-ntal authorities in Saigon.

Fro press r ports I understand that in fact the Provisional Revolutionary Government is the only government.al authority iu the territory which had been und r t,be authority of tbe pTevious overnn,.ent in Saigon.

The 'Provisional !\evolutionary Govel."ffllent is thus repres-ent.ing tbe meober state which joined the \1orld Sank as the Republic: of Vie.tna ncl t. World Dank should acce__pt the new nama of 11B.epublic of South Vietno.mu wl1ich that Government has adopted for that nber and modify its records :c.cordingly •

INCOMING TELEX FROM: BANGKOK

JULY~ )) JULY 18, 1975 -

DISTRIBUTION:

Mr. Gibbs ./

434 FOR GIBBS

RSVN. WONDER WHY BELL'S CABLE JULY ONE GIVING STATE MENT

Of ACCOUNTS WITH WORLD BANK GROUP 010 NOT EXPLICITLY SAY

THAT THERE ARE NO OUTSTANDING OBLIGATIONS BECAUSE E NEVER

LE NT TO PREVIOUS GOVERNMENT

BLOB EL



Document Date

16 July, 1975

Correspondents / Participants

Document Type

Memorandum

To: The President, IBRD and The Acting Manager Director, IMF From: Bernard Bell (IBRD) and Tun Thin (IMF)

Subject I Title Meeting with the Ambassador of the Democratic Republic of Viet-Nam on July I, I 975 in Paris

Exception(s) Information Provided qy Member Countries or Third Parties in Confidence

Additional Comments



Ba~code No.

1387878


Withdrawn by


Date

November 15, 2019


Form No. 27 (3-70)


ASSOCIATION

INTERNATIONAL BANK FOR INTERNATIONAL FINANCE

RECONSTRUCTION AND DEVELOPMENT CORPORATION

TO: AMAT CARLTON

GENEVA

COUNTRY: SWITZERLAND

TEXT: Cable No.:

FOR JULIAN GRENFELL

OUTGOING WIRE

DATE: JULY 14, 1975

ClASS OF

SERVICE: TELEX 27 .595

THANKS YOUR TELEX JULY 14 STOP HOPE YOU RECEIVED MINE OF SAME DATE STOP

WOULD LIKE TO ADD BANK POSITION THAT SOUTH VIETNAM CONTINUES TO BE MEMBER

OF WORLD BANK GROUP WITH PROVISIONAL REVOLUTIONARY GOVERNMENT SUCCEEDING

GOVERNMENT OF REPUBLIC OF VIETNAM REGARDS

AUTHORIZED BY:

NAME Mahmud Burney

DEPT. International

REFERENCE: MB:mmcd


BURNEY



(3641)

(IMPORTANT: See Secretaries Guide for preparing form) Checked for Dispatch: --- - ----------

S'?•OiJ. VJ INn rlt,o:J

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Form No. 27 (3-70) .

), INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR


INTERNATIONAL FINANCE

CORPORATION ASSOCIATION

TO: AMAT CARLTON GENEVA

OUTGOING WIRE

DATE:

CLASS OF

SERVICE:

JULY 14, 197~

<i t(~ TELEX 27.595 (3641)


TEXT: Cable No.:

AUTHORIZED BY:

FOR JULIAN GRENFELL

ALPHA REYUR CONVERSATION WITH MIKE REGARDING SOUTH VIETNAM AAA NO BANK GROUP

LENDING OPERATION TODATE BBB SINCE 1973 PARIS ACCORDS SEVERAL ECONOMIC AND

TECHNICAL MISSIONS VISITED VIETNAM TO DETERMINE ABILITY OF GOVERNMENT TO

MOBILIZE RESOURCES FOR A DEVELOPMENT AND RECONSTRUCTION EFFORT AND TO IDENTIFY

POSSIBLE RECONSTRUCTION COMMA DEVELOPMENT AND TECHNICAL ASSISTANCE PROJECTS

SUCH AS IRRIGATION, GRAIN STORAGE, SEED MULTIPLICATION, SUGAR REHABILITATION,

INLAND WATERWAYS, URBAN AND RURAL WATER SUPPLIES BUT NONE OF THESE PROJECT

PROPOSALS WENT BEYOND IDENTIFICATION AND NO PREPARATION WORK WAS UNDERTAKEN

CCC LATEST BANK ECONOMIC REPORT DATED JANUARY 1974 HOWEVER YOU WILL APPRECIATE

THAT REPORT IS NO LONGER RELEVANT IN PRESENT SITUATION DDD WITHIN FRAMEWORK

UNDP FINANCED MEKONG COMMITTEE WORK WE PARTICIPATED IN TECHNICAL MISSIONS TO

PREPARE PIONEER AGRICULTURAL PROJECTS IN DELTA INCLUDING SOUTH VIETNAM "Twl:.LEVE

EEE BLEWBN SOUTH VIETNAMESE OFFICIALS HAVE PARTICIPATED IN VARIOUS EDI COURSES J\

STOP CONTINUED ON PAGE TWO



NAME

DEPT.

Mahmud Burney

International Relations

SIGNATURE_---=-----:-----:-----------1 <SIGNATURE OF INDIVIDUAL AUTHORIZED TO APPROVE)

REFERENCE:

MB:nnncd ORIGINAL (File Copy)

(IMPORTANT: See Secretaries Guide for preparing form)

For Use By Communications Section

Checked for Dispatch:-------------

Form No . 27

(3-70) "

INTERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR



CORPORATION ASSOCIATION

TO: AMAT CARLTON

GENEVA

OUTGOING WIRE

DATE: JULY 14, 1975

CLASS OF

SERVICE:


TEXT: Cable No.:

AUTHORIZED BY:

PAGE TWO

REGIONAL COURSES ARE PLANNED IN MALAYSIA IN JANUARY 1976 AND JAPAN 1977

BETA FOLLOWING SENIOR STAFF CHANGES ANNOUNCED JULY 11 STOP WAPENHANS VP

EFFECTIVE OCTOBER AND WILL BE IN CHARGE EMENA IN BENJENK'S ABSENCE ON

SABBATICAL STOP WYATT TO SUCCEED WAPENHANS STOP GUSTAFSON TRANSFERRED IFC

AS DEPUTY DIRECTOR AFRICA AND MIDDLE EAST AND GORDON SUCCEEDS GUSTAFSON

DIRECTOR DFC DEPARTMENT STOP BANETH TO SUCCEED GORDON IN INDONESIA STOP

SWAP BETWEEN WYSS CHIEF REGIONAL MISSION ABIDJAN AND GELI ASSISTANT DIRECTOR

PROJECTS LAC STOP REGARDS

BURNEY



NAME

DEPT.

Mahmud Burney

International

REFERENCE:

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Mr. Purviz N. Damry , Secretary

Douglas J. Fontcin, Legal Department

Cable from Saigon

June 20, 1975

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If r. M amara dee! es to ake a stat ent to the E ecutive Directors about the cable from Saigon, I sugges t he say somethi · along bhe followin lines ;

fl You may be interested to know that we have received a cable addressed to the Presi ent of the Bank f rom the authorities in Saigon informing us tha t the Provisional R,evolutionary Government has ssu ed co plete aut or1t over South Vie~-:i , ask ing uo to end the a statement of accounts as of April 30~ this year and r eserving t he right to settle any <lebts an credits of t previous government. In our cabled reply we have said that we are preparin a atat .ent of accounts as

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Form No. 27 (3-70)


ASSOCIATION




CORPORATION

TO:

COUNTRY:

TEXT: Cable No.:

•

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AUTHORIZED BY:

NAME

DEPT.

OUTGOING WIRE

CHEF SECREI'ARIAT MINISTERE DES AFFAIRES El'RANGERES SAIDON

DATE: LE 20 JUIN 1975

CLASS OF SERVICE: FULL RATE

REPUBLIQUE SUD vmNAM E:lctn. 3571 nr

AU NOM DU PRESIDENT DE LA BIRD, Jt.AI L'HONNEUR D'ACCUSER RECEPrION DE

VOTRE TELEGRAMME DU 17 JUIN 1975 El' VOUS REMERCIE POUR VOS SALUTATIONS

CORDI.ALES. EN REPONSE A VOTRE DEMANDE, NOUS SOMMES EN TRAJN DE

PREPARER UN ETAT DES COMPTES AU 30 AVRIL 1975, ET NOUS PENSCNS ETRE EN

MESURE DE VOUS L•ENVOYER PAR LA POSTE DANS QUELQUES JOURS A MOINS QUE

VOUS NE SUJGERIEZ AUTRE VOIE DE COMMUNICATICN.

VEUILLEZ AGREER L 'EXPRESSION DE MA HAUTE CONSIDERATION

BERNARD R. BELL VICE PRESIDENT REGIONAL

DIRBXJTirn DE L•ASIE DE L'EST El' DU PACIFIQUE

NOT TO BE TRANSMmED


Cleared with & cc: Mr. Bell ( thru Mr .Ruddy cc: Mr. McNamara

Mr. Damry Mr. Votaw

Mr. Tun Thin (IMF) Mr. J.G. Evans (IMF) Mr. M. Parmar (IFC)

REFERE~lmell/NAGibbs: at


Mr. Fontein Mr. Chang, V.C. Mr. Hitmlilir


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IB 11 (UNDP) ~t: nu K 6::, 012~j1Z ;

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M1SC68 HOFFMAN INFO DASILVA

Mr. De Silva Mr. Chadenet Mr. Votaw Personnel Travel Office Mr. Damry

RE REP AUTHORIZED TODAY EVACUATE DEPE! DA TS FROM SAIGO~

TO SAFE HAVEN BANGKOK OR HOME COUNTRIES IN CONSULTATION EM

PLOYING AGENCIES . IN VIEW RAPIDLY CHANGING DEVELOPMENTS HE

ALSO AUTHORIZED EVACUATE STAFF/ EXPERTS IF IN HIS JUDGEMENT

SITUATION SO YARRANTS. ON RESREP RECOMMENDATIO PLEASE WITH

HOLD UNTIL ;

FURTHER NOTICE EXPERTS R DEPE DANTS TRAVEL VIETNAM AND TOP

OR REROUTE SHIPMENT PERSONAL EFFECTS AND PROJECT EQUIPMENT ;

KIM" ' COL MI SC68 "

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Mr. J. Burke Knapp April 2, 1975 ,·

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I -G.B. Votaw, East Asia and Paci

VIETNAM - Economic Mission

I "'---~, ~·1.-._ ~..::.. "'· - ...,.

1. This note confirms my phone conversation with your office earlier this afternoon. All members of the Bank's economic mission to Vietnam have returned to Bangkok as planned. Most will remain there for a week or two, also as planned, to complete drafting whatever report is possible under the circumstances.

2. Incidentally, for two months now we have been telling anyone who inquired that there is no plan to convene a meeting on Vietnam, despite contingency plans discussed last December which involved t he possibility of a meeting in Manila at the end of June. It will not surprise you to know that there have been fewer such inquiries in the last ten days than there were in, say, February.

3. Since there will be no meeting, there is no urgent need to issue a report; but we will come to a final decision on the report only after we see Blobel's draft in May.

cc : Mr. cNamara's Office Mr. Gibbs Mr. Merriam

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Record Removal Notice . File Title

Vietnam - IBRD / IDA Programs / Missions - I 975 / I 977 Correspondence - Volume I

Document Date

07 March, 197 5

Correspondents / Participants To: Siav Hong Choi, Executive Director

Document Type

Memorandum

From: S. Ruffini, Division A, East Asia and Pacific

Subject/ Title Statement of Operations and Missions

Exception(s)

Additional Comments Declassification review of this record may be initiated upon request.



Barcode No.

1387878


Withdrawn by


Date

November 15, 2019


.•

241331 IMF UR

BANVINA 1,12 3 ( Telex Nr.) T

INCOMING TELEX

FROM NATIONAL BANK OF VIETNAM, SAIGON

TO INTERFUND WASHINGTONDC

MR. VOTAW

DIRECTOR COUNTRY PROGRAM

(t«{{~~/ ~ ff!'/,-~.

1975 FEB 27 Pt4 2: 48

Distribution,:

Mr ·vta / .... 0 W

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EAST ASIA REGION ~ l,..~ ~ . r u_,..., ,

REFERENCE IBRD MISSION PROPOSED SCHEDULE or MARCH 12 ~ ~ THROUGH APRIL 4 ACCEPTABLE TO ALL PARTIES CONCERNED STOP ~

BAN VINA WILL PROVIDE ACCOMMODATIONS AND TRANSPORTATION

STOP KINDLY CONFIRM ARRIVAL FLIGHTS AS SOON AS POSSIBLE

STOPEND REGARDS

LEIUANGUYEN GOVERNOR BANVINA

Form No. 27 (3-70)


ASSOCIATION




CORPORATION

TO:

COUNTRY:

TEXT: Cable No.:

AUTHORIZED BY:

NAME Chief

DEPT.

REFERENCE:

INTBAFRAD

BANGKOK

THAILAND

FOR BAIG

OUTGOING WIRE

DATE:

CLASS OF

SERVICE:

FEBRUARY 27, 1975

tele~ ti: t3571)

BANVINA HAS CONFIRMED MISSION MARCH TWELVE TO

APRIL FOUR ACCEPTABLE TO ALL CONCERNED AND BANVINA WILL PROVIDE ACCOMMODATION

AND TRANSPORT. NOVAK AND JEHTA ARRIVE BANGKOK MARCH NINE AND WILL

FLY TO SAIGON MARCH TWELVE. PLEASE SELECT FLIGHT TO SAIGON AND ADVISE

BANVINA THEIR FLIGHT ARRIVAL TIME ASAP.

REGARDS

GIBBS


N. Gibbs

NGibbs: jw


Programs



(IMPORTANT: See Secretaries Guide for preparing form) Checked for Dispatch: ------ ------- -

SP ;',TCHE fJ

Fm rt \0 35 r~ \915 COHMUH ICAT \OHS

Form No. 27 (3-70)

INTERNATIONAL DEVELOPM ENT

ASSOCIATION

TO: MANFRED BLOBEL MADRISA HOTEL GARGELLEN MONTAFON

COUNTRY: AUSTRIA

TEXT:

INTERNATIONA L BANK FOR

RECONSTRUCTION A ND DEVELOPMENT

OUTGOING WIRE

INTERNATIONAL FI NA NCE

CORPORATION

DA TE: FEBRUARY 2 7, 19 7 5

CLASS OF

SERVICE: f 3571)

rr( Cable No.: ALPHA BANVINA HAS CONFIRMED THAT MISSION MARCH TWELVE THROUGH APRIL FOUR

/~

ACCEPTABLE TO ALL CONCERNED AND BANVINA WILL PROVIDE ACCOMMODATION AND TRANSPORT.

BANVINA REQUESTS CONFIRMATION Ai.RIVAL FLIGHTS ASAP. ABOVE COPIED TO BANGKOK.

BETA IT HAS BEEN SUGGESTED THAT PAUL APPLEGARTH YP IN VOTAWS OFFICE MIGHT

AUTHORIZED BY:

NAME

DEPT.

REFERENCE:

BE CONSIDERED FOR INCLUSION IN MISSION. EYE BELIEVE HE ABLE CONTRIBUTE

TO MISSIONS WORK ON ANALYSIS OF INDUSTRIAL INVESTMENT FINANCING AND

PRODUCTION AND LEND SUPPORT TO ANALYSIS OF PUBLIC EXPENDITURES GENERALLY.

HOWEVER THIS WOULD BE HIS FIRST MISSION AND MISSION WILL BE WORKING UNDER

SEVERE TIME CONSTRAINTS. MOREOVER I KNOW YOUR DESIRE TO KEEP MISSION

TO MANAGEABLE SIZE. GRATEFUL YOUR REACTIONS.

Nicholas Gibbs

NGibbs :jw



REGARDS

GIBBS

CLEARANCES A ND COPY DISTRIBUTION:

Pac. Programs

For Use By Communicat ions Section

C: (IMPORTANT: See Secretarie3 Guide for prepar ing form) Checked for Dispatch:-~-==---------------

r.

A (

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For m No. 27 (3-70)


ASSOCIATION




CORPORATION

TO:

COUNTRY:

TEXT: Cable No.:

GOVERNOR LE QUANG UilN BANVINA SAIGON

REPUBLIC OF VIETNAM

OUTGOING WIRE

DATE:

CLASS OF

SERVICE:

FEBRUARY 25, 1975

THANKS URTEL FEBRUARY 22, 1975 RE IBRD ECONOMIC MISSION STOP WE PROFOSE THAT

MESSRS. NOVAK AND JETHA ARRIVE SAIGON MARCH 12 TO BIDIN ASSEMBLING INFORMATION

ON FISCAL PERFORMANCE, BALANCE OF PAYMENTS AND P:OODUCTION IN KEY SECTORS STOP

THEY WILL BE JOINED BY MESSRS • BWBEL, REESE AND GOER.ING ON MARCH 20 STOP

MISSION EXPECTS COMPLETE ITS WORK IN SAIGON BY APRIL 4 STOP GRATEFUL IF MISSION

COULD BE ACCOMMODATED AT BANVINA APARTMENTS STOP OUR REGIONAL MISSION BANGKOK

WILL ADVISE FLIGHT ARRIVALS KIND REGARDS

VOTAW DIRECTOR COUNTRY PROGRAMS EAST ASIA AND PACIFIC REGION



NAME Nicholas A. Gibbs Chief, Division }l._; t';,.. East As\r8n~ P~~n

SIGNATURE _____ __.!.../_ Y_ '+ ______ ---:::;;;;;,o_..,,_~::-:----1 <SIGNATURE OF INDIVIDUAL AUTHORI

DEPT.

REFERENCE: NAGibbs :vmk


(IMPORTANT: See Secretaries Guide for preparing form)

cc: Messrs. Bell (thru Ruddy) Kirmani


Checked for Dispatch: ~

Form I C>. 27 ' (3-70)

(

I TER, ATIONAL DEVELOPMENT INTERNATIONA L BANK FOR

RECONS. RUCTIO ANO DEVELOPMENT ASSOCIAT ION CORPO RATION

TO:

COUNTRY:

MR . MANFRED BLOBEL K!\.DRISA HOTEL GARGELLEN MONTAFDN AUSTRIA

OUTGOI G WIRE

DATE:

Cl.ASS OF

SERVICE:

FEBRUARY 25, 1975

L/T ( (3571) ·

-tef · TEXT: PR.Il-'10 MAF BOA..>ID PA-PER WAS DISTRIBUTED FEBRUARY 'IWENTY-FDUR FOR CONSIDERATION

Ca b'"! No.:

AUTHORIZED BY:

NMIE

DEPT.

ON MA.RCH ELEVEN STOP HAVE ASKED REESE SO ADVISE VJ>JHJERCORD .AND CAUTI N

HIM THAT Kti.F D'.)Cll1ENTS SHOULD NOT BE GIVEN 1D POTENTIAL OONORS UNm. HE

HEP.RS FRDM US STOP ALSO BEG _USE OF SENSI TI VE NATURE OF PAPER POSTPONEMENT

OF ED1 S CONSIDERATION M).Y BE REQUESTED .AN'D EYE ASKED REESE ADVISE VAN

-AGAINST SE'l"r.l.NG U? A PRELIMINARY ID NOR MEETING FOR MARCH FOUR TEEN .WFITCH HE

H.\D PRO POSED IF MAF :CCCUMENTS }K)T READY DUR.nm ESC.AP MEETING S'IOP WE STILL

F ,EL ·youa P ~P.TICIPA'I'ION ESC.1..P MOST USEFUL P_d.RTICULIB.LY 'JU RECEIVE COMMI1"1'.1IB '

•NSOLIDATED CG:!MuTTS CO ·Il-LA. POSSIBL_ OBT1tIN ADB 1 S PRELnmTARY REACTIO.i:TS COMMA

T-OITCH BASE ITIB POTENTIAL OONORS ON TIIEIR INTERESTS IN MAF AND ID HEL? ~cr .

~·ITS0?-ID-='?.ST.ii1TDING I S ON P .AB.T C~IMIT'.1. Ei OR DJNORS sroP CO?I OF

BO A."iill PAPER A.1.'iD M.AF IOCUMENTS S~TT TO GIIllARTIN FEBRUARY 'IWEN TY-01,'E .fllW

A!JDIIT NAL COPIES AIE1AILED YOU I N DEIJII TOD.AY

sscur HAVE REG"' .L V..SD LETI'Ert DATED FEBRUARY srr FROM H ACCE '.I'ING :MISSION

AND PRQR)S.AL TO HOLD MEETING S'IDP I N REPLY WE HAVE SUGGESTED 1HAT IF

AGREE.aBLE 'ID H_i\O DATE FOR MEETING NOT BE FINALI ZED UNTIL MISSION HAS

• •• • • • • COl-l TriIT?.-:D •••••••


CLEARANCES AND COPY DISTRI BUTION:

SiGNATU~E ------------- --:------! • SIGNATURE OF I CIV I OUAL A UTHOrHZ ::'.O TO APP ROVE I

For Use Sv Comf'Tlunications Sect,on

ORlGl Al (File Copy)

I

'

• Form No. 27 i3-70)

I l

INTERNATIONAL DEVELOPME T

ASSOCIATION

INTERNATIONAL BAN K FOR

RECONSTRUCTION A ND DEVELOPM ENT

INTERNATIO IIJAL ·FI NANCE

CORPORA Tl ON

TO:

COUNTRY:

TEXT: Cable No.:

AUTHORIZED BY:

NA'AE

DEPT.

OUTGOli G Wl.

PAGE 'FtiO

DATE:

CLASS OF

SERVICE:

OPPORTUNI'i'Y 'IO DISCUSS PREPA.-qATIONS FOR MEETING i'JI'lE HlM S'IDP NOV.AK .AND

JETtl.A WEmI WE PRO?OSE FDR FISCAL ECONOMIST COMMA PL.AN ARRIVE BANGKOK

M.A..."R.CH NINE OR TEN 'ID BEGIN WORK MARCH '.IHIRTEEN S'IDP EXPECT C-OERING JOIN

YOU BPJTGKOK MARGE SEVEN'.t'EEN REGAR.DS

GIBBS

NOT TO BE TRA SMITIED

CLEARANCES A ND COPY DISTRISUTION:

cc: Messrs. Vot aw/Cheetham Bel l/Kirmani/Verg:in Nicholas A. Gibbs ~ ,

/ ) ' East Asj,a~ PaQl.L~ C / J

I ~ fl ~ C(f:Y:> -SIGNATURE _ _____ :..../ ___ ,_ ---- - -~-~- --, --.~-- - - 1

<SIGNATURE O F I NDIV I D U AL A,J THO~PROVE>

lEGibb .::i :oo · Fer IJse B/t'omm v nica tiOns Section

O~IGI NAl (File Copy)

Form No. 27 (3-70)

INTERNATIONAL DEVELOPM ENT

ASSOCIATION



INTERNATIONAL FINA NCE

CORPORATION

OUTGOING WIRE

TO: DR NGUYEN VAN HAO DATE: FEBRUARY 24., 1975

DEPUTY PRIME MINISTER FOR ECCNOOC DEVELOPMENT

SAIGON

CLASS OF

SERVICE: j~ COUNTRY: REPUBLIC OF VlETN.AM

TEXT: Cable No.:

THANKS URLET~RUARY 6, 1915 RECEIVED HERE FEBRUARY 21 STOP WE PROPCSE THAT

MESSRS. NOVAK AND JETHA fl OUR ECONOOC MISSION ARRIVE SAIGON MARCll 12 TO BEGIN

ASSEMBLING INFORMATION ON FISCAL PERFORMANCE, BALANCE OF PAYMENTS AND PRODUCTION

IN KEY SECTORS STOP THEY WILL BE JOINED BY MESSRS, BLCBEL, REESE AND GOERING ON

MARCH 20 STOP MISSION EXPECTS CCMPIETE ITS WORK IN SAIGON BY APRIL 4 STOP WITH

REGARD TO PROP CS ED MEETING WE HA VE TENTATIVELY RESERVED ADB I S CONFERENCE

FACILITIES IN MANILA FOR JUNE 26-27 BUT., IF AGREEABLE TO YOU, WE SUGGEST THAT

WE DEF.ER FINALIZING DATE UNTll. OUR MISSION HAS OPPORl'UNITY TO DISCUSS PREPARATIONS

WITH YOU STOP GRATEFUL YOUR VIEWS STOP KIND REGARil3

V<YrAW DIHEal'OR COUNTRY PROORAMS

EASl' .ASIA REGION



NAME

REFERENCE:


(IMPORTANT: See Secretar ies Guide for preparing form)

cos Mr. B. Bell Mr. Kimani


Checked for Dispatch: ------------

r•Jrr11 ;' o. 17

; c:J-70) ~ /. ' t_~ ~:

,mm AT!ON/ L D['./ClCPU,tNT

A5SOC:A T!ON

INTERNATION/ll ·v~:, fOR

RECONSTRiJCT:ON AND DEVELOf'N,E H

---------- -----------~-

TO:

COU TRY:

'EXT: Cable No,

••

AUTHORIZED BY:

NAME

DEPT.

P''l'BA~~-tAD BA1JGKOK

'fIIAILAlW

~·----- ·'

OUTGOI G Wl ":

DATE: · F.1..J, ·rr !dlY lL ;

Cl/SS OF SERVICE: T•-,L~~ (3571)

DiPAH.'l'UlIB FOR FUROPE l'ONJ:Gh'l'_~~]Q H.E STILL A~lAI'l'rnG HAO I S REPLY · TO LHT?: 1 S

LEl'TER AOOUT MISSIO.J 1'1J£.A;/•FLti!: HAVE DECIBED BECAUSE OF HAF TO DEJ<'1!::.t1 'lI .Cl'n ll~

HISSIO~ 'ID ·1A..1i.Cl 20 i, ,:D DJ t3CE STAR'.1.· 01' GEiIEH.A.L /G 'D FISCAL ECOHO}iI~T .~ ·_;'f)

H\RCH 13.. AIL HlSS1r1r :!,E"•iI1 ··.Es WILL J.P_'lE O,IE DAY IN DANGKCIC l:lEPJR,1!; :?:.:;~.:BJi W'

SAIG01L LEl"l' IT TII! 1 ACCO., :DJDJSION, Fl{E:1'"'.~H.A.BLY AT BANVINA APJ R'I'MEH'I'~:; wo:rLD

BE AR.3.ANGED BY B/J1GKOZ: Oli'FIC.i ON RECEIPT OF WORll FBDA 'WASHINGTON THAT l'.i0SF 1!i

IS ON. SECUN:00 .ALPHA .FUR.Tm;..rt RUFFIJH'S TEL 107 OH l1AF. AT M8E'!'IN'G , 1':I: K. 1AP 1

TIITS HORUil G Il' WJ\S DPXIDi!:D 1'HA'.L' , n- SEEKING APPROVAL ·nr PRINCIPLE 'lu TD.A

CONTRIBUTION TO .!·1Aii' IF AND ·,;,..CJ E'.31'.t.EL[Ch.~1) , EDS SEOTJLD BE GI VEN F'.AIICY

C0i1PREI-It!1SIVE PAPER AND HO :J1L N"OTIC.c; OF TEN vORKING DAYS . EARLIEST 130Jl!1D

DATE IS EAHCH FJTJ1 . AS YOU ~·iI LL APPRECIATE, WE WILL BE ABLE TO AGilliE TO DONOI S

RELEP SE OF HAF PHO PO SAL TO ~lmi3 DURING ESCAP SESSION ONLY IF ALL THE

REMA11H!m STEPS CAN BE TAKEN ON TIME, VIZ IF BOP.Ru PAPER IS READY l•On

DISTPJBU'l'I01 NEXT THURSDAY, IF COMMITTEE COMNENTS ARE SUCH THAT CAN ~~~-_,,_,_,_J.? ..

NOT . 0 BE TRANSMITT D ·---------------CLEARANCES AND COPY DISTRIB!JT10N:

SIGNATURE __ ·----· -----< SIGi'.'\TURE' or 'NCIV IDUAL AUTHOF-< IZF..D T /,FPROVEl

,-------For UsP. By Cc.m"1vnica l:on, Se"icn __ -----·

C,,.!Gl: IAL (rih Co~y) I

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•Jl tf.:f !/> TI ONAL DEVELOPMENT

ASSOCIATION

INTF.li:NATIONAL BANK FOR

REC.ONSTRUCTION AND DEVELOPMENT

INTER ATIONAL FINANCE

CORP R,\TION

TO:

0 1 TPY:

TEXT: Cab.e N .:

•

•

Ol TGO!NG WIRE

'.f.'flTNK V.A"I DW.!i OOP..D S!:JULD

DATE:

CLASS OF

SERVICE:

·'

FINAL DAY, 1B HOVES WITH TlIB CIRGUHSPES'rIOn 'l'flll_T THE SITUATIOn R.EQUJ.·.F-S .

BETJ HEASOW J:,DR DEFEliRING r_1:~ 1 NiJl 1lL'.::SIOH JS TO ALJ.f):·J FOR c0:JTlW1ENCY '.I'I-L'i.T

OF COHSULTATIONS WITH IPDTHD JAL DOi.lORS TERT:i:O PLEASE !u,PrL\ ITF,..1:u1-1 F.AIG ~:fi.t: --VARIOUS CHANG:i!:S IN EAHLIER PLi1!1!S .AS KYE ASKED HIH ARRANGE: l<lJR GPJ.LS Qlir N!11

HUGSTI<.RS . B.LTA ASK YUVARIF 3I:Il<"l' EY OHE WEEK 1-rI DETTAL APIDI1i'I11N:;T

s;wE-I' S WIFE . GP.Hi1A SIGRID PLANS RETUI~N J.S SCH• UL.'.;,,D OI:I GINA.LLY

REDARDS

BLOBEL

NOT TO BF. TRANSN ITTED ------ ---- - - ---------- ----- -----c----- ---·-----------------AUTHORIZED DY:

NAME

DEPL

Manfred fil.obel, Chief World Be.n!c Regional Mj_s sion Bru/gkok , Tha1J..and

I · .,- C- ::,_~~7 \ ~- -:.-. {, . ...-~ ,

CI.EARANCES AND COPY DISTRIBUTION:

cc: Messrs. Bell (thru Huddy ) Kirmani Vergin Gi bbs (o . r .)

SIGNATURE tSIG N._A_T _U -RE---OF_I_N_D_IV- I D_U_A_L_A._U_T_H_O_R_I_Zl:_D_T_O_/\_P_P_R __ O_V_E_l _ _ _ :________ ~ff~lL_ _________ _

Ri:rE-<E'.JCE: MBl obel :vmk For Use 3y Ccn·r.1ur:cu t'.ons S1'cti :;n 1------ --~

ORIGINAL (File C r y)

FROM : BANGKOK c::: 12 , 1975 - )

98 RUFF INI FOR BLOBEL

1975 FEB \ 2 M\ 7: 48 . Distribution:

Mr . B, 4 c/o Mr . Ruf ini Z.r,;~bbs

. R REUR TEL 101 . SHOU LD WE SEND QUEST IONNA ~E TO HAO OR WA IT

FOR FORMAL LETTER? REGARDS

REESE

' REPUBLIC OF VIETNAM

OFFICE OF

I fSffl> FEB 2 1 REC'D

February 6 , 1975 THE DEPUTY PRIME MINISTER

~ ea e:

<:J'J <:J'J < d ~ ~

IN CHARGE OF c:g1,,e §~ (!}>ffime CJrlinisJe,,,

ti} 0,

~ -Q N

Ll') - ~ :> 0 c::, 2:

~

IN CHARGE OF

c:ge&Wmic ({!)~

Mr . Gregory B. Votaw Director Country Programs World Bank 1818 H Street , N. W. Washington D. C. 33 U. S.A.

Dear Mr . Votaw ,

-:::=; -

It was a great pleasure to receive your congratulations .

and warm

Your proposal for a meeting during the second half of June , to be sponsored jointly by the World Bank and ADB

to examine the reconstruction aid needs of Vietnam, is

most appreciated by the GVN, especially in these times

of extreme difficulties .

We will proceed with the preparation of a report for use

at the proposed meeting on the GVN's past and exis ting policies and programs , and estimates of aid needs for

the purpose .

We also look forward to welcoming in mid - March an esteemed

friend , Mr . BLOBEL as well as the World Bank delegation

and discussing with them final arrangements for the June

meeting .

\

"''

,~. f C r;.·,: / ·\ 1 E" , 'L , • -

1975 FEB 20 PM 12: I I

CDMMUNIC.4Tf0NS srcr,oN

f

,

•

•

- 2 -

And if out of these endeavors, there should come some

tangible results, our people will for ever be indebted to the World Bank for its fa r s i ghtedness and cooperation .

Please accept my heartfelt thanks for your kind considera

tion.

Sincerely ,

Dr. NGUYEN VAN HAO

BTP/nttt /4

7$

r .. lklll

l

-------- y·

--

From: To.ngkok Distribution:

Mr . Gibbs / Mr . Sutherland

~ ·~ l----81 FOR RUFF INI

!~!SFEB-3 n, 8: 51

Uw !Ytt1u -P/11 REUR TEL 82 VIETNA M MISSI ON JA NUAR Y 31 . AS EYE SEE IT, IT IS

ESSENTIAL TO PURPOSE OF MISSI ON THAT IT ASSESS HAT PROGRESS

RVN IS MAK ING IN RECONSTRUCT ION AND DEVELOP MENT , INCLUD ING

IN PARTICULAR REFUGEE RESE TTL EMENT AND LANO RECLA MAT ION

WHIC H FOR M CORE OR RVN PROGRA M. VHIL E NE MAY DOUB T AB ILITY OF

MI S S I ON TO MK E F I ELD V I S I TS , FA I LURE TO P RO V I DE M I S S IO N

TH CAPACITY FOR ASSESS MENT IN THIS FIELD AMOUNTS TO PREJUDGING

MIS SION FINDINGS ON TH IS CENTRAL IS SUE . IN SHORT, EYE CONSIDER

RURAL DEVE LOP MENT SPECIALIST ESSENT IAL TO MISSI ON J ~

BLOBEL

~'~ECLASSIFIED

NOV 15 2019

Tl

T'H

CG~

0

L T

//

Form No. 27 (3-70)


ASSOCIATION



v INTERNATIONAL FINANCE

CORPORATION

TO: INTBAFRAD BANGKOK

OUTGOING WIRE

DATE:

CLASS OF SERVICE:

JANUARY 31, 1975 1

A,

TELEX ( 4256) f.- (// / THAILAND

COUNTRY: ~d--..

TEXT: FOR BLOBEL. STAFFING OF ECONOMIC MISSION ID VIET NAM REASON.ABIX ON HAND. Cable No.:

HAVE GENERAL ECONOMIST ON BOARD. FISCAL ECONOMIST IDENTIFIED. HOWEVER

RURAL DEVELOPMENT MAN VERY HARD TO LOCATE. OOUBTS HAVE BEEN CAST WHETHER

SUCH EXPERT IS PREMATURE IN VIEW OF rossIBILITY THAT HE MAY NOT BE .ABLE ro

TRAVEL IN THE FIELD. WONDER WHETHER YOU SHARE SUCH OOUBTS OR WHETHER

YOU WANT SUCH EXPERT ON BOARD FOR DEMONSTRATION EFFECT. MEANWHILE WILL

CONTINUE ro TRY TO IDENTIFY SUIT.ABLE MAN BUT NEED URGENTIX YOUR GUIDANCE.

WARMEST REGARDS

RUFFINI



NAME Silvio Ruffini Cc; Messrs. Bell/Kinnani

DEPT.

.. AUTHORIZED TO APPROVE)

REFERENCE: s By Communications Section


(IMPORTANT: See Secretaries Guide for preparing form) Checked for Disp ch: -------------

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Jammry 16, 1975

Si1-ir1 o uff'ini, 1~ -t O Di vi "°1 en Chi et, D:i 7 . , &'\tt.P

• In _c: in Indoc'bi a, ,..zt?st t.h~t w 1 ,.1.;.'1 ecc.n,mc ind t:..,.;;tc:r ~ .;f!.: c.n s., follmt.!ng r-·n·~~t:10.~ : (1) t l··t 1:113 p:t.::n a da.f'·'nit rc·~.w £0 ~.o t ~er cparation .'"4" v ry 1·: 'l{ely to sti1.rtJ (i · } t !vit • .,. p:t;...pa.r a. p:ro(rm'1 !er · ti t.:l.w. -f-J1a - 1.-tl .furt?'!-..r otic --- ba C<.'11:t,,'ic:~:rod u cc.t:i:r:,~ :nc;, ull<,-:J..'i..'l'ft:O; ~.,~ {iii) t ... :.. :; tv~ pl,·· rio pr ~:r..r:s ~ 1.t~°"'}v.'·'r !er · ·h i~r~ • r ~1,,~tlic . c t ·· o b;;. :J , , ~ h117 rovi~P d O p:r ,..:r<'.r.;s n't1"-'U' 'by ··,na r·.ro.jcc Divi Jicr>..1 .i.md &: •;.tcs th att1eh d ::icdl.noo p:rol.'1'?$::B .. fom 700 ' a tor the ifj_ 6 :--:.icnic, ,a ~-hiah 'h.l\J ll .. ;p,insor e o tt.a.c?!':Jd.

2 . t~et b;r aeet-c:r cct.~ents oo U1& program .... p1:o~ · ;d by Pr\ ~acts ! · rlsj_cn tollowi

l. :.,:~.~crt is re·.::_u~r Yl - b~t .. s not teen ~ cv d. t - £or thg • .1. 16 .SOO 'fr[l3 8::!CD<::n1 C :-i esic-nz. to ! etn::~r, "' .d fer ,cl Xit v·· ~i e ,e to I..u.-0 •

2. Vietnam ho revi:.tt , ·w~ w ' ld

tel" r i•,:j Qr..· (' '!n) i5 !,0~1.. ... to revi.rl4 .::.nd ~~ ~~1 'or lllA proJoeta.

l. L:.:.ca Zi...~c tio:t necto1· -:oport.s his ia n.p-p r ntly a tnl!!,SCO e:..ccrc · aa ;~d no ! .:'.'.Dk C·ector t.itirk _:;. .~r .vicl.oo . Jo uculd llke e ·1...cat.ic.n in ut to t . o I·· 76 cc 1Cnic r-~pc·t to lay tho t•T<n1nch,or k t cr i>- Nl)OPed prc)jects -< n the eoct-0r .

2. V et.na.m Education Sec tor !1Er,ort: .Azrln this ,.a a 1-1s3co exorcise , and J- ·ould like "' cen t.intc:.lCJ' pl.ru:l tor an ec.uc.a.tion input into t!<l f Tl onauc :report .

Pc;yer and P<'.'Eul.ati~·i;

l . l'lo sectcr ork i s provided f or ~i thar Laos or Vietn~ .. l"'6 propoeea

(i ) a txsnspo:rt i ,ut into the Ff:{fJ Laos rd rd -n to f 110"'.1 t ha l:1 ,rk s ·t.-iJ.r ted by t ti.:is ;rear ' s t'!li 6ai on ..

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• • Gregory B. Vota 1 January 16, 1975

(ii} a contingency plll.TI for a tra.nsport input into the FY76 and FY7 Viet.n.9111 l'lioaiona to provide us with a basis tor po~siblo projocte .

1. Cambodia Tourism. L)(3ctor Uiasion (FY77) - mission hould be dropped from tl19 prog~am.

Tolecomr.mnica ti ons ---- --- ..-00

1. No sector work is lclilr oo. Continf(ency plans for an FY78 seotor/identi.fication mission to either Laos or Vieu1am would be desirable . (The Laos 1 1d:ing progr m includes a telec ,nnunioatia..1s project. )

WatersuPplI

1. Any pl.'.llw i r ~ 'v:t .~~: ·che \. te1·:::rup l .; · ct,o :Ln! CUI'lbc ia should i e dropped. A wat rbupply sector rev..i.ew in Laos in FY76, however ., ight ba c:c.ful .

2. The J?Y77 1:rat r.. _ ly rav:iow n Vietnam should be reg:irdod as a contingency provio 'o ~nd the ~enourcee diverted elsomere if it appears that we a.I'S unlikely to stal•t op rations them .

tTrbnn

1. Agree urb inpl'..t t~ FY.'/8 nicsi • is de irable, but this should be a contingency plan ..

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January 13, 1975

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~ ... ~'I The Hon. Le Quang Uyen Governor National Bank of Viet Nam 17 Ben Chuong Duong Saigon Viet N81ll

Dear Mr. Uyen:

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I have written to Mr. Nguyen Van Hao, Deputy Prime Minister for Economic DevelopDlent, regarding arrangements the Asian Development Bank (ADB) and the Bank are jointly proposing for an aid meeting for South Viet N81ll in the latter part of June 1975; a copy of my letter dated January 1.3, 1975 is attached for your in.formation.

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As explained in that letter, if your Government agrees to these arrangements, we are p1anning to send an economic mission to South Viet N81ll about the middle of March 1975. The purpose of' the mission, which will be led by Mr. Man:fred Blobel, is to review the recent progress of the Government's economic and social development programs and to assess the prospects and programs for .further reconstruction and development during the next 12 months or so. As on previous occasions, the mission will be heavily dependent on the help and cooperation of the National. Bank of Viet N81ll in making its arrangements and in providing the mission with infomation and data relevant to its work.

I trust that the mission can proceed as presently planned and that we can once again look to the National Bank of Viet Nam for its

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•• Yours sincerely,

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Direc Countr,y Programs F.ast Asia Region

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J anu.ar,r 13, 1975

Mr. Nguyen Van Hao Deputy Prime Minister in Charge

of Economic Development ) I ~ c1o National Econorilc l;evalopment ]\md

17 Ben Chuong Duong Saigon, Viet Nam

Dear ¥..r. Hao i

I ~ vroulc J_\ke -to congratulate you on your recent appoi.'l"J.tment to the position o.f n~i.· ty- lr:trac!' lti.uistor · fo.r .tI:c011~.m.ic D~elopment and to w.1.sh you and your collea5.ies ~cry· success in your andeavours .

In April l.973 when Pres dfu~t Thieu vi.sited Washington, D.C., he &Eked Hr. Hc''fr..mo.ra if tha Bank would take tha iru. tiativ-e in setting up an aid-group for the Hepublic oJ:~ Viet Nam to help it in its reconstruction and development efforts . In reply Hr . McN&a.a1·r.. said he would be wiJJ..i..'1g to do so, proVided the proposal had the support of those I!lember co1ll'.l.tries of the Bruik who would be potentiitl. participants in such a grm1p and provided that we could work in partnership with the Asian Development Bank (J..DB) .

In.t'c~n::~J. discu~si.ons with potential participants in the .fi rst half of 1973 su,~gosted t 1· t at l east ini tiilly they would wish t.o meet to consicfar together the probletis of .the three countries o.f the Indochir...a Peninsula (nan1lly, Lnos, Khmer i't.el:fu.hlic and South Vi~t Nru11) , ho were .me1u.bers of thn Bank erJ.d r.DA . For this purpose th,~ Bank and ADB jointly sponsored meel:r:i.ngs which \-Ia:;-'G held in October 1973 and October 1974. These %1eetings were i.nforml1.1. end held :for the purpose of exchn.nging views on ths prospects f or reco:nstruction a.nct development and on current and prospectivo nid progrruns of.' the countries concerned . Whilo no decisions regarding the establi3hment of aid-groups for any countl.7 were taken, there were a nu..'ll.bc r of expressions of interest .from participating countries tl'mt at a."l appropriate time separate meetings might be held to discuss the reconstruction a.id needs of South Viet N::ua ru1.d Laos .

The ADB end ourselves lw.ve consi.deretl how and \Yhen this might be a.rrenged, and ue haven.bred, subject to the wishes of recipient gove:r:niilents., that it would be desirabl , hold tltase m~etings in the fir-st, half of 1975. Accordingly, wa are proposing to the Governm.ent of Lacis that a :meeting on Laos be held at ADE ' s offices in H.ru:d .. la. in late April~ Similarl y , we would

-2- Januar.r 1.3. 1975

like to propose that .A.DB and ourselves jointly orgsni.ze a meetJ..ng on Sou·Ul Viet Nam in t..lie second h.oli" cf .June, t-thich wuld be att<Jnd~~ by re~ resent.a;t:1.ves o:f curl-ant 1-;.,'J.d JY .. :rtential si.d donors P..S tfel.l ru.1

ropreeent!!t.ives o:f he Govorn.n6 t oi South Vl · t, lfa.m.; if t.";uo proposal is ac.cepu-Jll.a to ~-u.r C"i>V~l'r"-1..~~nt, we propoeo to proceed w-lth t..~a noce$s~r;; .al'Tangel\lelllt.s with a v-:7..ew to issuing the !o:mal announcement by early- Februzry.

In preparP1:tion for tr.a proposi2'.d. mooting, we also propom, to eend an ec.onomc miasi.on to r utn Viet Nam. to begin it:3 l>rork ,<i! •• ,nt the l\rl.ddle o£ .l.,"U'ch J.97''. ?ts purpo~e of that lltl.i.;sion woul.d b.J to prepare a brief report for t ,-:rm ll.u:ik ~nd po.rticipc.nts in the proposed meeting, revimdn " the Governl'iemt I s econorrl.c en.d r;ocia.l development prog-rwnn and assessing the prospects !or .further :reconstruction 1n tho next year or tuo .

YO'IU" Gover-~t w:Ul nl:::o wish to bae:l.n ohcrtly to repr,,..ro it, docrwnontat:tan .for t h .. <ll pl'Opc>sad. r..eetinrE. Buch preae:n , ... <it.i.onn u1ma.lly inclu.iJ13 a report on the G.-:;.>V"ff.v'1tent' s progn.ms ~J'l<l p.ollc.:ies r.,n ue.11 as the C..~vo.l'.l'.£lentta e~t .... tJ. t:3 o ·,... its aid needs; docur.,ents sent ou t be.fore the meeting uoul.d be su,ppleme.n:t:.ed by an or~ ~tn.tsment !'rem your del eg~tion to tr.a m:-t.lting . Kr. Jilobcl , who wculd l e~ t.11e Bmlk'~ economic rrl ss ion to Saigon in Hareh, is .f w.liar ltl th thG arr-ong,?monts £or aid r;:eetings an<l wottld ho ready to advise your o.f'fici.:lls o!l thie natter., if' ycu so td~hed .

I l ook forward to hso.rl.ng £rma you nt your Oa!'liest convenience whether the arrru:igctie:nta llO propo:;;e l.'ol" e.,"'l. nid nesting in .June 1md the visit 0£ an econom.c mission bcgi..'"ID.ing in mid .. r!c>..roh a.-u accoptable at :rour ov.d.

! am sendi..""lg a. copy of tl is letter to. Mr .. Lo Qi.umg Truong., Minister 0£ .?irumce., .for his infon:n.tien and a eind.1M' letter to rtr. Le <~ Uyen., Governor, llational Bmtlc p£ Viet Nam.

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cc: Messrs. P. Hasan R. Cheetham

lUGibbs/GBVotaw:vmk . I /J/ 'l '-~ \

Yours oincerely,.

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FR.OM: B.Al'l GKOK

REUR 669 /LPHA VIETNAM MI SS IO N.

FRENCH MATTERS . CONCUR YOCR VIE" ON LETTER 1-'.BOt'T MISSION MJD

MEETING , EXCEPT THAT EYE SUGGEST A SEPARATE LETTER RATHER THAN

COPY OF liAO LETTER BE SENT TO GOVERfJOR NA TIONAL BANJ( ON 'HOSE

HELP AND COOPERAT IO N I N MAK I NG /! RRANGEMENTS t 11D COLLECT I NG

INFORMATION EYE EXPECT THE MISSION WILL O~CE AGA I N HAVE TO

DEPEND HEP.VILY

BLOBEL

RM No., 57

'

IN lt.RNATIONAL DEV LLOPMENT INTERNArlON/\ L BANK FOR ASS0C l ~T10N RECONSTRUCT!ON AND DEVE LOPMEN T

I NTERNATIONAL F INANCE CORPORATION

OrFICE /\1\Etv\ORANDUM TO: Nr . Nicholas A . Gibbs

FROM: o. J. )IcDiarmid ..:., u fr-

SUBJECT: T'n e South Viet-Nam Economy

DATE: July 24, 1974

The Bank mission that visited South Viet-Nam in Nov.-Dec. 1973 concluded t hat putting the country on the road to reasonable economic growth would be a fairly long haul proposition, but that, subject to t wo ilnportant caveats, the portion of the country under Saigon control could eventually be a viable entity. The t wo caveats were (1) that the PRG (Viet Cong) and their North Viet-Namese allies ..(then estL'Tiated as having 3 di visions in South Viet-Nam ) would be contained in the comparably ~ unproductive highland area of the north and western parts of the country and not be able to launch a successful general offensive and (2) the South Viet-Namese receive about $700 million to $750 million of foreign assistance a year over at least the next 5 or 6 years. Lesser but llTlportant considerations were that a reduction in inflation be acco~plished mainly by an austere budgetary progr~, and the exchange rate system be unified and rationalized to encourage exports and discourage unnecessary imports as t hen proposed by the I MF . In the longer run, Viet-Nam would have to cope rd.th the basic structural distortions caused by the war notably the influx of people to the urban areas, and restore traditional exports such as rubber as well as expand new items such as fish products, Rubber production was and still is constrained by security considerations.

We now have the findings of the IMF Article XIV consultation mission that visited Saigon in early June and which has provided substantial new data on the economic situation as it has evolved during the first fe-w months of this year as well as firmer information on the outcome of 1973. T.he fallowing observatio:ns are based on the Dfii' staff report of discussions with the Viet-Namese authorities . I have not had time to read the longer background paper prepared for the consultations .

Judged by normal standards of economic performance and mindful that 11

2 years have now elapsed since the Paris Accords, one might have expecved more economic progress, particularly in view of the large foreign aid input of $650-700 million a year which Viet-Nam has received from the U.S. Economic growth is t entatively estimated at about 3% in 1973 but the Fund mission is pessimistic that any real growth can be achieved in 19?4. The t wo most important constraints to growth are the sharp curtailment of industrial production and demand for ser vices caused by the withdrawal of U.S. forces and the increase in the cost of agricultural inputs resulting mainly .from the increase in the price of petro1emn arrl its derivatives including particularly fertilizer .

1'.hen we prepared our report in January of this year, we felt t hat there were four potentially favorable developments which, provided the governntent was able to finance an import progr8Jll of ar ound $900 million, might enable the economy to begin a gradual improvement in 1 971~ . These f;;;ctors were (1) the hope o.f a modest reduction 5n security related expenditures from about 50;1, of the budget in 1973 to 45,;; in 19?4, (2) about

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Mr. Gibbs - 2 - July 24, 1974

a threefol d increase in government expenditures for reconstruction and » rehabilitation, (3) e:\.-ports which have been a minute percentage of imports over mos t of' the l ast decade were expected t o rise from about $50 million in 1973 to perhaps $100 million in 1974 and (4) monetary expansion which was estirr,ated at 19% in 197 3 was forecast to fall marginally to about 16% in 1974. In addition and perhaps more i.·rnportant , t he government hoped to subst antially el:Lminate t he refugee r esettlement problem in 1973 and t o release some personnel including t echnicians from the armed forces which would be vitally important to launching a reconstruction program .

The i nformation which we now have frolT:. the Il-1F i ndicates that only the fir st of these objectives may be achieved. 'l'he expectation is that the portion of the budget for defense expenditu:ces will decline from 50% to about 42% as between the two years. Therefore, on this score it s ee.ms tha t the performance has been satisfactory . However , in the reconstruction and rehabilitation area it appea.rs t hat · there will be a considerable shortfall below the expectations of last December and that funds that were t entatively eannarked for r econstruction will now be substantially used to increase salaries of civilian and milit,ary personnel. This is unfortunate but understandable when it is realized that the 60% rate of inflation which prevailed in 1973 has continued during the first 5 months of 1974 even though the goal for this year was a reduction in inflation to 25%. Looking at the budget as a whole, it now appears that revenues in. 1974 will f all somewhat short (about 12%) of keeping pace with the rate of inflation whereas expenditures will slightly exceed the expected rise in the price level . However , about 40% of the hike in expenditures is because of increased subsidies i....-1cluding those on imported rice. In any event, the central government's deficit which is about twice the expected accruals of foreign aid counterpart funds will be the main factor in the 1.J.5% increase in money supply which is nowcontemplat ed for 1974. This compares with 16% that was planned when the Bank mission visited Viet-Nam in December. The IMF has recommended that for 1975 the budget deficit not exceed foreign aid counterpart so t hat fiscal operations will not be an inflationary factor in that yee:r . In . respect of Bank credit to the productive sector of the economy, while interest rates have been r aised and banks are paying up to 29% on time and savings deposits, as elsewhere in the world, real interest r ates are still negative and it seems doubtful whether a f'u:rther tightening of credit policy would be compatible with production obj ectives or fo r that matter would do much to alleviate inflationary pressures.

Viet- Nam like other oil-importing countries is suffering severely from the increase in the price of POL . The volume of oil jJnports has been r educed from 2 million to 1 .63 million tons a year but costs have increased 100% . This has been the principal factor in the increase in the trade deficit of about 10% in 1974.

On the export side, t he official estimate used i n t he Fund paper is the s ame a s was given to us in December, namely $81 million (less than 1 O,l of impo~ts )but this is only at the annu2.l rate tha t H.S.S already 2.c:iioved in the lc.d:it2r p~rt or 1973 . Houever J foreign exch&ngc reserves arc c:xy,0ctee1 to decline by only $28 million i n 1974 as compared. t o $71 million in 1973 . In any event, this r elative optimism seems to be based on r ather shaky ground in r e.spect to foreign assistance and other undeffned receipts in

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Mr. Gibbs - 3 .. July 24, 1974

t he balance of payments. The Il1F is somewhat unhappy that the exchange rate flexibility supposed to be involved in the agreement reached in January has not resulted in the hoped for improvements in the balance of payments situation . Instead of relying on the exchange r ate , the government is tightening import controls.

To briefly summari ze the situation, it would appear that the government is doing what it can on the fiscal side even though its reconstruction program is disappointing and monetary expansion is certainly excessive . Of cours e , it is difficult to tell from a financial analysis what is happening in respect of some of the more basic problems of the economy . Some 500,000 refugees are sai d to have been resettled but many new refugees are produced by the sporadic fighting which is going on throughout a good portion of the country . Cert ainly a political settlement or at least a tacit understanding to reduce th.e conflict, including the breaches ·of security which are endemic in most .of the country outside the principal cities is essential to permit South Viet-Nam's very substantial economic potential to be developed .

cc: Mr . Gregory Votaw Nr . Parvez Hasan

OJHcDiP..rmid :my

TO:

FROM:

SUBJECT:

I NT£PNATICfP.L DEVELOPW.Etn- 1 INTEf{NAT !ONAL BANK FOR ·1 INTERNATIONAL fl :,N CE , t.S SCC(A TI C!'l I R[CCNSTRuCTtON AND DEV£LOPMr· · ~ CGRPOHA1 1r.;.

OFFICE 1\/\EMOR/ NDUM Mr. Robert S. McNamara, President DATE: July 24, 1974

Gregory Votaw, .Acting Regional Vice President East Asia Region

vn-::r AH - Visit of Mr. Ton That Trinh and Mr. Nguyen Tien Hun~

1. Mr. Ton That Trinh, Minister of Agriculture and Mr. Nguyen Tien rhmg, Co:rnmissioner General for :Planning, will call on you at 6:45 p.m. on July 25t h , 1974, as arranged by Gov. Hanh. Mr. Gibbs will join the meeting since I have a prior commitment outside the Bank. Background biographical information is attached.

.. 2. One of the purposes of their visit to Washington is to discuss with the Bank, USAID, UNIOO and UNDP the proposed fertilizer project in Viet Nam.. This proj ect has been assigned the highest priority by President Thieu~ An interagency meeting will take place at USAID at 11 a.m. on July 25th to prepare for a meeting with the Vietnamese delegation at 11 a.m. on July 26th.

J. The proposed fertilizer project is based on a UNIDO report completed in April. At the request of the Government and UNDP we have reviewed the report and fo.und it deficient in its treatment of such issues as capital costs, project size and scope, feedstock, prospects for off-shore oil/gas r~sources, alternative regional sources of urea, forecast of conditions and prices in early 1980s , fertilizer pricing policies and the distribution system. USAID also has reservations about the report and has offered to help finance a full feasibility study, estimated to cost about $500,000 and take about 8 months. The Government on the other hand appears to have accepted the UNilX) report as the basis for proceeding with the preparation of tender documents for an investment in fertilizer facilities. The purpose of the interagency meeting is to exchange views on the agencies' interests and intentions with regard to this project. As far as the meeting with the Vietnamese is concerned, it is intended to explain our reservations about proceeding with the project in the light of the world fertilizer situation and to offer advice on what inf'onnation the Government should have in hand before deciding on the scope, size, type, costs and location of the project. The Ba.."lk's role at this stage is limited to offering technical advice; however, the Government has indicated its inter-est in having the Bank help to arrange financing for the project, including hopefully Bank or IDA participation.

4. The last· time the staff reviewed the economic situation in Viet Ham was in November 1973, and a report (315-VN ) was distributed in Ja.~uary 1974. Our conclusion then was that the Government had budgeted a modest increase i n reconstI'\.lction a.~d development expenditures for FY74 and was endeavouring to gear-up fo r s supportable development program ; this could have provided the basis fo r an aid group meeting and a proposed program credit from IDA. However, following the adverse IDA vote in the House in January 1974, all but the mim.roum economic .and operational work in Viet Nam has been suspended. Recently, the IMF has completed its Article }ilV Consultations with the Government, and a su1 :1ary a..'1• comm .nt on its principal f indings is attached . T ere seem:.:: to l.:t.:

Mr. Robert S. McNamara - 2 - July 24, 1974

some deterioration in the economic situation this year or at least the nbped for improvement has not taken place. It seems unlikely that the Government will be able to make a substantial start in the implementation of the reconstruction an~ development program proposed in its FY74 budget.

5. In this connection, you may wish to enquire of the Vietnamese what expenditures on reconstruction and development are now planned (at the mid-year) for FY74. (Such expenditures were estimated in November 1973 at about VN$105,000 billion, of which VN$60,000 billion would be .financed from the budget and VN$45,000 billion from counterpart funds; total expenditures for all purposes were budgeted at VN$741,000 billion.)

6. The delegation is expected to ask what assistance IDA ~plans to give to Viet Nam. We propose to answer that when IDA-IV has been ratified, we shall send an economic mission to Viet Nam to reassess the situation with a view to determining what would be an appropriate role for the Bank Group.

7. The delegation may also ask what plans we have to hold further discussions with interested Governments on organizing an aid group for Viet Nam. In reply you could explain that we consider it highly unlikely that the Bank could organize and hold a successful meeting of Governments to consider this matter unless IDA is in a position to take an active role by providing development c editR-·"1"1 s-:.ippor t -of a worthwhile reconstruction and development program. M an¥hli1::, we continue to exchange views infomally wlth donor countries and, depending on the progress towards the ratification of IDA-IV, it may be appropriate to discuss the matter again during the Annual Meeting.

Attachments

Clearances and cc:

~ . C. Dewey, Industrial Projects Mr . O. McDiarmid, Office - V.P., Asia

cc: Mr. J. Burke Knapp, Senior Vice President (with attachments) Mr. H. Chenery, Vice President, Development Policy Mr. P. Hasan, Chief Economist , East Asia Region Mr. A. Ljungh, Office of the President Mr. H. Vergin, Assistant Director, Projects Asia

NAGibbs/GVotaw:vmk

/ BI 01RAPHTCAL DATA .:!/

Mr. 'fen That Trinh

Born in 1931 in Hue , Central Viet -Nam , Mr . Trinh graduated in 1954 from 2/

the National Institute of Agronomy'"in Paris, and in 1955 from the Advanced 3/

School of Agriculture '"in Nogent -sur-!1arne , France. Mr . Trinh has been active

both in the educational field, as a Professor at the National Institute of

Agriculture in Viet-Nam and member of the Cultural and Educational Council of

the Republic of Viet-Nam, and in the i'ield of public administration • .. Past assignments in administration include :

Director General for Budget and Foreign Aid, 1963

U.N. technical expert in Dahomey, 1965

Assistant Minister of Economy and Finance, 1966 ,:

·Assistant Secretary of State , Prime Minister 's Office , 1967 •• ';1. j

Corn.rnissioner General of ·Natio;i,..l 1 l c1lu1..Lng , 1968

Minister of Agriculture , as of February , 19 74

ColTU'llent : Mr . Trinh is an excellent technician but his character can be at times fairly abrasive .

AGros:lcs July 23 , 1 974

.lf Source: Embassy of the Republic of Viet-Nam .

2/ _.., s ,t M • o. 1.J. gronon quo .

11 Ecole Superieure d 1Appli cation d'Agr onomie tropicale .

BIOJ RAPHICAL DATA.l/

Dr. N guJen Tien Hugg_

Born in 1935 in Thanh Hoa , North Viet-Nam, Dr. Hung came to the South in

1954 and. graduated with a Law degree from the University of Saigon. He furthered

his education at the University of Virginia where he received his 11aster 1s

in Economics in 1960 and his Ph.D . in the same field in 1965.

He held various teaching positions., a.t North .Carolina Wesleyan College,

Ho ·Jard University and Trinity College prior to joining the I MF in 1966, as an

economist in the African Departr1ent . In 1969 , he returned to Howard University

to do independent research on "Economic Development apd Structure of North Viet-Nam,

1954-1973" (to be published shortly).

In 1973, he returned to Saigon and was, for six months , assistant to the

President for Reconstruct ion and Development, before being appointed in February

1974, Cormnissioner General for Planning .

Cormnent: Without doubting his good intentions, Dr . Hung appears to have been

sorne -1hat "parachuted" to a top position, despite his long absence from the country

and his lack of practical experience.

AGros :lcs July 23, 19·74

------------------'------------------ ---- --·· --l/ Source : Embassy of the Republ ic of Viet-Nam.