Announcement of Meeting of the Consultative Group for Thailand on May 4, 1973

INTE:RNATIONAL ·BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 May 4, 1973 Subject: Meeting of the Consultative ·Group for Thai land The Consultative Group on development assistance to Thailand met in Paris on May 3 and 4, 1973, mder the chairmanship of the World Bank. The following countries were represented: Australia, Canada, France, Germany, Italy, Japan, New Zealand, the United Kingdom and the United States. Representatives of the International Monetary Fund, the United Nations Development Programme, the Asian Development Bank and the Organization for Economic Cooperation and Development also attended the meeting. The Thai delegation was led by Mr. Renoo Suvamsit, Sec~etary General ~f the National Economic and Social Development Board. The Consultative Group reviewed economic development during 19 72, the first year of the third Five-Year Social and Economic Development Plan (1972-1976), problems of Thailand's regional development and the progress acllieved in obtaining extemal ~ assistance for the Plan's investment requirements and Thailand's needs for the balance of the P.lan period. The Group noted that during the first year of the Plan GDP growth had been below expectations largely because of adverse weather conditions affecting agricultural production. However, because of the strong demand for some of Thailand's principal exports and the existence of large stocks of rice, Thailand was able to substantially improve its balance of payments position. The Group noted the Government's expectation that economic growth could be acceler~ted during the remainder of the Plan period and that the original target of an increase of 40% in gross domestic product could be achieved over the Plan period. The Thai Delegation outlined the Government's program in support of the Plan's objectives, emphasizing measures directed towards increasing agricultural production, raising the level of investment and stimulating.'·exports. The Group confirmed its support for the objectives of the Third P~an and in this context it urged the Government to continue to give attention to measures to insure that its fiscal position is consistent with development objectives. • A review of the prospects of external assistance confirmed that Thailand should be able to obtain from abroad its requirements for the balance of the ·Plan. In this context, h\rwever, the leader of the Thai Delegation requested that more assistance should li,r provided in the form of grants and that the terms of loans /more ',, b• made softer. - 2 - During the session, the Thai Delegation held bilateral talks with the Japanese Delegation and the Japanese Delegation noted ip response • to the Thai request that it was prepared to give favorable con,ideration to increasing grants in the form of teffln:1,cal assistance if suitable programs could be identified. The Thai Delegation also presented a proposal to improve arrangements for financing feasibility studies .. In the course of his presentation to the, Group the leader of the Thai Delegation proposed that a fund be set up to ilS&ist in the reconstruction and development of Indochina, and urged the aid-g:L ving countries to begtn now to provide planning and financial help to the co,mt ries of the region to enable them to expand their productive capacity so as to support this effort. It was provisionally agreed that the Consultative Group would meet again in the first half of May 1974. • - 0 - •