Announcement of Seven Million Eight Hundred Thousand US Dollars Loan in China on September 27, 1963

~ INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 63/42 Subject: $7.8 million loan in China s~ptember 27, 1963 The World Bank today made a loan equivalent to $7.8 million to the Republic of China for the purchase abroad of 16 modern deep-sea fishing vessels to expand the cou..'"ltry' s tuna fishing fleet. As a result of the expansion, the value of China's ~~arly catch of fish is expected to increase by the equivalent of over $4.5 million. Since two-thirds of the catch w.I.11 be exported, this will substantially increase fJrcign exchange earnings. In addition, expansion of the fishing fleet will pro- vi 6.e more employment and augment domestic food supply. • Sixteen commercial banks are participating in the loan, without the World Bank's guarantee, for a total amount of $970 1 000 representing the first three ma.tur.I.- ties and parts of the fourth and fifth maturities falling due between August 1966 and August 1968. The participants are Irving Trust Company, New York Chemical Bank New York Trust CompazlY, New York United California Bank, Los Angeles The Bank of New York Girard Trust Corn Exchange Bank, Philadelphia Manufacturers Hanover Trust Company, New York The Marine Midland Trust Company of New York Bank of America National Trust and Savings Association, San Francisco The Fidelity-Philadelphia Trust Company The First Pennsylvania ~anking and Trust Company, Philadelphia Crocker-Anglo National Bank, San Francisco National Bank of Commerce of Seattle First National City Bank, New York The First National Bank of Boston Wells Fargo Bank, San Francisco Bank of China, New York Agency • The loan is the first to be made by the Bank to China, which has so far re- ceived four development credits totaling $15.3 million from the Bank's affiliate, the International Development Association (IDA). It is also the first to be made 'l;,. -~ by the Bank or IDA for the development of a fishing industry.  ) • - 2 - Taiwan has a population of 11. 7 m1~1lion and an area of 13,866 square miles. The liveliq.,;')o~ of more than half of ;'the population depends on agric.ulture, which because of the motn1tainous terr~in is confined mainly to about 2.2 million acres on the western coa;s·cal plain.,? In view of population pressure on farm lands, greater emphasis in the last ten years has been given to dev~ ioping the fishing 1 j_ndustry as a source of employment, domestic food supply and of foreign exchange earnings. As a result, the. industry now employs some 300,000 persons, providing support tor ovi"er twice that number. The fishing industry of Taiwan comprises deep-sea, inshore and coastal fish- eries and. fish culture. Stea~ progress has marked every phase of the industry since the restoration of Taiwan to the Republic of China in 1945. In 1953 the fishing industry entered a stage of accelerated development when the first·of a series of four-year development plans was launched. ing fleet had gro~n to 5,800 powered vessels of about By the end of 1961, the fish ... 84,ooo annual catch had increased to well over 300,000 metric tons. gross tons and the The Chinese have been • fishing with longliners since 1958, transshipping their catch at Singapore, Penang, Djibouti and Dakar for freighting to purchasers in the United States and Europe. Export c;f tuna, which was at around 700 metric tons in 1958, iri~reased to 2,000 metric tons valued at over $700"000 in 1962. The Bank loan of $7.8 million will meet the foreign exchange costs of con- structing and equipping 13 vessels of the 300-ton class and three vessels of the 1, 000-ton class. The vessels will be of the most modern design an.d equipped for year-round operation. Each of the 1,000-ton class vessels will carry at ·least two subsidiary boats of twenty tons each. It is estimated that a total equivalent tu $9 .4 .million will be investe~i in the project. The ships ·will be ope~~).ted by selected fishing companies to which th~ Govern- • ment of China will relend the p~oceeds of' the Bank loan. The Land Bank o1! Taiwan  - 3 - ~. ~•ill be responsible :for administering the loans on behal:f o:f the Government. The Taiwan Fisheries Bureau, a government organ1zation responsible for the administra- tion of fisheries, will supervise all technical aspects of the project. The Bureau has a large number of specialists, many of whom were trained abroad in the design and construction of fishing vessels, fishing equipment and marine engineering. Construction contracts will be awarded on the basis of international competitive bidding. The loan is for a term of 15 yea.rs and bears interest at the rate of 5-1/~ per annum i~clucling the 1% commission which is allocated to the Bank's Special Re- seyve. Amortization will begin in August 1966 • • • ,.. :. i