Announcement of Consortium Communique on Aid to India on August 7, 1963

WOIILD • INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W. 1 WASHINGTON 25 1 D. C. TELEPHONE: EXECUTIVE3-6360 (Bank Press Release No. 63/35) (IDA Press Release No. 63/11) Wednesday, August 7, 1963 Consortium Communique on Aid to India The eighth meeting of the India.1.1 consortium, which opened in Paris on June 4, was concluded in Washington on August 7. The consortium met under the chairman- ship of the Worl~ Bank. The meeting was attended by representatives of the Govern- ments of Austria, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, •• the United Kingdom and the United States and by representatives of the World Bank and the International Development Association (IDA). The International Monetary Fund sent an observer. _The purpose of the meeting was to discuss aid for India during 1963/64, the third year of India's Third Five-Year Plan. It was announced in Paris that the members of the consortium would make aid available for commitment during the year in the amount of $915 million, subject as appropriate to legislative action or other necessary authorization. This figure has now been raised to $1,052 million as a result of increased offers from Austria, Germany, Italy, Japan, the United States and the World Banke •  (/ • - 2 - The f'inal position With regard to consortium aid pledges for 19.63/64 is as follows (with pledges ~ the two previous yea.rs s~own for comparison): PledGes !~ million e511!ivalentl 1961/6~ 1962L63 126JL64 3-Year Total Austria 5 7 12 Belgium 10 10 20 Canada 28 33 3ot 91! 80 France 15 45 20 Germany 225 139 99i 463-! Italy 53 45 98 Japan 50 55 65 170 Netherlands 11 11 22 United Kingdom 182 84 84 350 United States 545 435 435 1,415 World Bank and IDA 250 200 .2.!ti ~ Total 1,295 1,070 1,052 3,417 -- Just over half the aid pledged for 1963/64 will be in the fqrm of gra~ts or long-term loans at nominal rates of interest. All but about $150 million of the remainder is expected to be in the form of loans with substantial grace periods • and repayments extending over 15 years or longer. Particular importance was attached at the meeting to providing India with non-project assistance which can be used to finance imports required for the general support and 4evelopment of the economy. About two-fifths of the total aid pledged. will probably pe in this form. It was agreed that the consortium would meet again befol'e tpe end of the current Indian fiscal year to review the progress made in the d~velopment of l the Indian economy and to consider India's programs and prospects for the remainder of the Third Plan. •