Announcement that the Bank Has Not Successfully Negotiated with the United Kingdom Colonial Development Corporation Regarding a Loan on January 1, 1950

CJ HOLD FOR RELEASE BOID FOR RELEASE HOLP FOR REl&SE INTEBNATIONAL BANK FOR RECONSTRUCT!~, J\Nl) DEVELOffAEMT Washington, n~:e. ..FOR THE P:a;ESS () FOR RELEA~E \,' I Press Rel,e~.se No. 164 7.;0l P.M.,January'l;' 1950 0 (To be rele~sed c? s~ult~eously in London) The International Bank tor Reconstruction and Development Ji \'-.j) , today issuea. ~he f oUowing statement: Negotiations have .been in progre;s for some t~e between the Inte~ational B~ and t,he ·united Kingd,om Colonial Develop- ment Corporation tor a loan from the Bank to the Corporation of approximatel.y $5,000,000, of which the proceeds would have b~en devoted to the purchase 9f equipment from the dol~ar area, ttY be :m~ta.J.led iQ various development undertakings to be pro- moted, by the Corporat~on ~ the Pepend,ent Overseas Territories of th~ United Ki.flgdom. It has. not been pos'si~le., at present, to' l:>ring these o negotiations to a successtul conclusion. T·he Board. of the Co~oration have eXPressed themselves ~s unable to aQcept certain of the Bank's standSf>d requirements, especially the non-,financial covenants, on the grounds that these are not reQoncilable with the principles and JQ.ethods by which the CorpQration oper.atee.