MESSAGE REFERENCE:
RECEIVED 2-MAY-86 10:13:25.
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02 MAY 86
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FROM TELEX1 AT PRINTED 2-MAY-86
D/30
10:20:37
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FOR J. L. F. BUIST
FROM UK DELEGATION, ASDB MEETING
ASDB ANNUAL MEETING, MANILA, 30 APRIL 2 MAY 1986.
SUMMARY:
1. AS USUAL THE MEETING WENT SMOOTHLY AND WITHOUT PROBLEMS. IT WAS OPENED BY PRESIDENT AQUINO. SPAIN AND THE PEOPLE'S REPUBLIC OF CHINA WERE WELCOMED AS NEW MEMBERS.
2. IN RESPONSE TO PRESIDENT FUJIOKA'S REQUEST FOR ADVICE ON THE QUESTION OF THE SIZE OF THE BOARD FOLLOWING CHINA'S MEMBERSHIP, GOVERNORS INDICATED THEIR PREFERENCES. THE REGIONALS, INCLUDING AUSTRALIA AND JAPAN, SUPPORTED THE ADDITION OF ONE SEAT TO ACCOMMODATE CHINA WITHOUT DETRIMENT TO THE EXISTING RESIDUAL CONSTITUENCY OF SMALL COUNTRIES. NON-REGIONALS PREFERRED THE PRESENT BOARD SIZE OF 12 MEMBERS, BUT WITH ANY INCREASE BEING UP TO 14 OR 15 TO MAINTAIN THE BALANCE BETWEEN THE REGIONAL AND NON-REGIONAL GROUPS. THE PRESIDENT CONCLUDED THAT THERE WAS NO MAJORITY FOR ANY ONE SOLUTION, AND SAID THAT HE WOULD HAVE TO CONSIDER THE QUESTION FURTHER.
3. MR. FUJIOKA WAS RE-ELECTED AS PRESIDENT FOR A FURTHER FIVE YEARS. 4. GOVERNORS' STATEMENTS COVERED THE USUAL SUBJECTS: THE GLOBAL ECONOMIC SITUATION, ITS EFFECT ON INDIVIDUAL COUNTRIES' DOMESTIC SITUATIONS, THE PROBLEMS FACING DEVELOPING MEMBER COUNTRIES, THE BANK'S OPERATIONS IN 1985 AS DESCRIBED IN THE ANNUAL REPORT AND FUTURE POLICY TRENDS.
5. LENDING TO INDIA WAS GENERALLY WELCOMED, AS WERE NEW POLICIES ON THE PRIVATE SECTOR INCLUDING LENDING WITHOUT GOVERNMENT GUARANTEE, ON ENVIRONMENTAL QUESTIONS, ON THE ROLE OF WOMEN IN DEVELOPMENT, AND THE INTRODUCTION OF A POOL BASED VARIABLE LENDING RATE SCHEME.
6. NON-REGIONAL MEMBERS STRESSED THE IMPORTANCE OF COUNTRY STRATEGIES SUPPORTED BY POLICY DIALOGUE, BUT INDONESIA AND SRI LANKA WARNED THAT THIS SHOULD NOT BECOME THE BASIS FOR CROSS-CONDITIONALITY BETWEEN VARIOUS LENDERS.
7. THE PROPOSAL TO INITIATE STUDIES IN PREPARATION FOR THE NEXT GENERAL CAPITAL INCREASE WAS WELCOMED, BUT THE U.S.A. EMPHASIZED THAT A GCI WOULD NOT BE NEEDED BEFORE 1989 OR EVEN 1990.
8. THE SUCCESSFUL ASDF V NEGOTIATION WAS WELCOMED, WITH ONE OR TWO COMPLAINTS FROM DEVELOPING MEMBER COUNTRIES THAT THE TOTAL WAS NOT ENOUGH.
9. JAPAN AND GERMANY PUT DOWN MARKERS FOR SPECIAL CAPITAL INCREASES AND FRANCE INDICATED THAT IT WOULD LIKE ANOTHER INCREASE. THE U.S.A. EMPHATICALLY RESISTED A SECOND ROUND NOW.
10. THE UK ANNOUCED A FURTHER VOLUNTARY CONTRIBUTION OF £300,000 TO THE BANK'S TECHNICAL ASSISTANCE SPECIAL FUND FOR SPENDING THIS FINANCIAL YEAR.
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