WORLD BANK

Grey River Argus, 22 February 1947, Page 2

WORLD BANK

PLAN LIKELY TO BE MUCH

MODIFIED.

NEW YORK, Feb. 20. The existence of the World Bank hangs on the outcome of discussions between the Truman Administration, the bank’s directorate and the former Assistant-Secretary for War, Mr John 1,. McCloy, who has been offered the presidency of the bank, but. has declined acceptance, unless the bank changes its policy. This is reported by the Herald Tribune’s Washington correspondent who adds: If no agreement is reached, the bank’s outlook is seemingly all but hopeless. The administration, after consultation with Mr McCloy, accepted a greatly restricted concept of the bank’s role in world reconstruction and development. Instead of being the source of billions of dollars of quick, easy credits, for nations whose devastation and shaky political structure make them poor commercial risks, the bank would confine itself to safer loans. Mr McCloy has the confidence of the American private banking interests. He has made it clear that, under his direction, credit?, would be granted only when there were good prospects of repayment. United States investment sources have been unwilling to take up debentures which would provide the bank with funds.