Huge Emergency Fund Proposed

Press, Volume CIV, Issue 30930, 10 December 1965, Page 17

Huge Emergency Fund Proposed

/N.Z.P.A. Reuter—Copyright)

WASHINGTON, December 9.

A World Bank research team has proposed that a huge fund be held in readiness in case lesser-developed nations hit sudden financial trouble.

The money would come mainly from developed countries and 1500 to 2000 million dollars (£NZ535,555,000 to £NZ714.288,000) would be required initially for a five-year experimental period.

It would be handed out to stricken countries by the International Development Association, a soft-loan affiliate of the World Bank. The idea is to protect developing nations from unforeseen sudden drops which might occur fa their foreign trade. Itie the outgrowth at a recommendation Inst year by the United Nations Conference on Trade and Develop-

ment (U.N.C.TJLD.) for a World Bank study of supplementary financial measures to assist developing countries with sudden export-prompted economic ailments. Mr George D. Woods, president of the World Bank, told the United Nations SecretaryGeneral (U Thant) in a letter that the plan formed the “basis for a feasible solution to a problem of major importance and that it is worthy of the most careful consideration by all Governments.” He said the proposal did not necessarily represent the views of the World Bank’s executive directors, nor their Governments.