FOR IMMEDIATE RELEASE JUNE 4, 1 9 6 8

O F F I C E OF THE WfilTE HOUSE PRESS SECRETARY

THE WHITE HOUSE

REMARKS OF T H E P R E S I D E N T
UPON T H E S I G N I N G OF T H E
INTER-AMERICAN BANK B I L L
T H E E A S T ROOM

(AT 1:10 PM EDT)

P r e s i d e n t T r e j o s , Members o f t h eDiplomatic Corps,

S e c r e t a r y General Plaza, D r . H e r r e r a , D r . Sanz, Members o f
Congress, Distinguished Secretary o f State and Secretary
o f t h eT r e a s u r y , My F r i e n d s :

We a r e q u i t e h o n o r e d t h i s morning t o have w i t h
us a v a l u e d f r i e n d a n d p a r t n e r f r o m Costa Rica. By happy
coincidence, we were able t o greet President Trejos w i t h
new evidence o f o u r commitment t o t h eA l l i a n c e f o r P r o g r e s s .

The Congress h a s now passed a b i l l t h a t a u t h o r -

izes u s , t h eUnited S t a t e s , t o support a $ 1 b i l l i o n increase
i n t h ec a p i t a l o f t h eInter-American Development Bank. The
s u b s c r i p t i o n share o f t h eUnited States i n t h i s increase i s
almost $412 million. W i t h t h enew a u t h o r i t y , t h ebank c a n
now e n t e r t h ep r i v a t e c a p i t a l markets o f t h ew o r l d f o r new
investment i n t h edevelopment o f t h i s g r e a t Hemisphere o f ours.

So t h i s m o r n i n g I a s k e d y o u t o come h e r e t o t h e
East Room s o t h a t I c o u l d t a k e t h i s o p p o r t u n i t y t o p a y t r i -
bute t o t h eInter-American Bank, i t s d i s t i n g u i s h e d President
and Board o f D i r e c t o r s , and s t a f f , f o rt h e i r achievement i n
buil ding an i n s t i t u t i o n t h a t i s so responsive t o present needs
and w i t h such v i s i o n o f f u t u r e challenges ando p p o r t u n i t i e s .
Pres ident Trejos and I spent most o f o u r time t h i s morning
talk i n g about what good had r e s u l t e d from t h i s development.

The p a s t f i v e y e a r s have been y e a r s o f u n p a r a l l e l e d

groitfth, a s y o u c a n s e e i n t h ec h a r t s t h a t we have p u t here
in t h eroom this morning.

— The bank w i l l have t r i p l e d i t s c a p i t a l resources w i t h

t h i s newa u t h o r i z a t i o n .

— I t s loan portfolio has increased 175 percent, t o

almost $2-1/2 b i l l i o n .

•— These loans, i nturn, have generated an additional

$4 b i l l i o n o f i n v e s t m e n t .

The I n t e r - A m e r i c a n Bank was e s t a b l i s h e d i n 1959

d u r i n g t h eA d m i n i s t r a t i o n o f P resident Dwight David Eisenhower,
and was e s t a b l i s h e d w i t h t h e b ipartisan support o f t h e United
States Congress. I tw a s my g r e a t p r i v i l e g e t o b e t h eM a j o r i t y
Leader o f t h eSenate a t t h a t time, and t o introduce t h e b i l l
t h a t authorized t h e U n i t e d S t a tes p a r t i c i p a t i o n i n t h e bank.

When I became P r e s i d e n t , t h ebank h a d $ 1 b i l l i o n

400 m i l l i o n t o d r a w o n , o f w h i c h t h e U n i t e d S t a t e s h a d c o n -
t r i b u t e d almost $850 m i l l i o n o f t h a t $ 1 b i l l i o n 400 m i l l i o n .

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I am v e r y p r o u d t h a t d u r i n g my P r e s i d e n c y t h e b a n k ' s resources
have now c l i m b e d t o $6 b i l l i o n , f r o m $ 1 b i l l i o n 400 million,
with t h e U n i t e d S t a t e s a d d i n g $2.7 b i l l i o n o f t h a t as t h e
Unite d States share.

I am e q u a l l y p r o u d t h a t i n t h i s p e r i o d t h e L a t i n
American members have g r e a t l y increased the r a t i o o f t h e i r
c o n t r i b u t i o n f o r the bank's special operations. I n 1964 i t
stood a t 11 t o 1; today i t stands a t 3 t o 1. This v i t a l i t y
has won t h e r e s p e c t and t h e s u p p o r t o f t h e c o u n t r i e s o u t s i d e
our regional system. S i x c o u n t r i e s i n Europe, Canada, I s r a e l and
Japan are i n v e s t i n g over $200 m i l l i o n i n t h e development o f t h e
Hemisphere through the Inter-American Bank.

I had t h e p l e a s u r e o f d i s c u s s i n g t h e p o s s i b i l i t y
of A u s t r a l i a ' s i n t e r e s t i n t h i s o n l y l a s t week w i t h the
Prime Minister of that great country.

So we k n o w f r o m experience that cap ital investment,

t o be t r u l y p r o d u c t i v e , m u s t be j o i n e d by i nves tment i n the
h e a l t h and e d u c a t i o n and t h e well being of the people. The
bank's p o r t f o l i o r e f l e c t s t h i s balance of i nves tment between
man and m a c h i n e :

— Agricultural loans are bringing almost 6 million acres

of f a r m l a n d i n t o p r o d u c t i o n , and t h e y a r e h e l p i n g m o r e
than 500,000 farmers w i t h i n d i v i d u a l c r e d i t s .

— Industrial loans are at work i n 49 large plants and

2.700 s m a l l e r businesses.

— Road loans have b u i l t or improved more t h a n 2,000

m i l e s c f m a i n h i g h w a y s and n e a r l y 10,000 m i l e s o f
farm-to-market roads.

— W a t e r and sewage l o a n s , h a v e b u i l t - 3 ^ . 0 0 0 c i t y and

r u r a l w a t e r s y s t e m s and 270 s e w a g e s y s t e m s b e n e f i t i n g
a l m o s t 4u m i l l i o n people.

— Housing loans have b u i l t over 300,000 u n i t s f o r low-

income families t o t a l i n g 2 m i l l i o n people.

— Education loans have modernized 120 centers of higher

learning.

While the bank wrestles w i t h the needs of the

p r e s e n t , i t s p l a n n e r s a r e now a t w o r k o n t h e requirements of
the future. W i t h g r e a t v i s i o n , t h e bank has assumed leader-
ship, together with the Inter-American Commi ttee on t h e A l l i a n c e
for Progress, i n encouraging the physical in tegration of
Latin America.

D u r i n g 1 9 6 1 , 1962 and 1963, an a v e r a g e o f $203

m i l l i o n p e r y e a r was a p p r o p r i a t e d . I f this session of the
C o n g r e s s a p p r o p r i a t e s t h e a m o u n t a u t h o r i z e d a s we have
a s k e d , we w i l l h a v e m o r e t h a n d o u b l e d t h e y e a r l y U n i t e d S t a t e s
a p p r o p r i a t i o n s d u r i n g t h e l a s t f i v e y e a r s ; s i n c e 1963 we w i l l
have a p p r o p r i a t e d an average o f $430 m i l l i o n per year.

D r . H e r r e r a , t h e b i l l I am a b o u t t o s i g n c a r r i e s
the p l e d g e o f t h e U n i t e d S t a t e s s u p p o r t t o t h e bank, t o t h e
A l l i a n c e f o r Progress and t o t h e I n t e r - A m e r i c a n system.

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I f y o u w a n t t o s e e w h a t we a r e a c c o m p l i s h i n g by
t h i s cooperation o f t h e Inter-American Bank, t h e A l l i a n c e
for Progress, t h e World Bank and o u r other programs, you only
have t o look a t t h e very fine record o f t h e people o f Costa
Rica.
I observed a few minutes ago, i n welcoming t h e i r
great and distinguished President- the high p r i o r i t y
t h a t they gave t o education i n Costa Rica, t h es i x
p e r c e n t i n c r e a s e i n f a r m p r o d u c t i o n l a s t y e a r ? th© large
i n d u s t r i a l growth o f 1 1 percent, and a 400 percent increase
in Central American trade.

So t h e r e we h a v e p e o p l e who a r e c o n c e n t r a t i n g o n
eeucation. They a r e concentrating on farm production, con-
centrating on industrial growth, concentrating on regional
trade. That i s making b e t t e r l i v e s f o ra l l o f t h e people
of t h a t country. That i s setting an example t h a t t h e r e s t
of t h e Hemisphere I t h i n k i s v e r y proud o f , and c a n p r o f i t by.

I believe what t h e A l l i a n c e f o rProgress and

the Inter-American system have done i s a major c o n t r i b u t i o n
to s o c i a l j u s t i c e and economic development and freedom i n
this Hemisphere.

There a r e now b e f o r e t h e Congress o t h e r items

that a r e e s s e n t i a l t o t h e achievement o f this goal, such
as o u r second i n s t a l l m e n t o f t h e I n t e r - A m e r i c a n Bank's Fund
for Special Opeations, t h e replenishment o f t h e I n t e r -
national Development Association. A l l of t h e s e a r e v i t a l
to m a i n t a i n i n g t h e momentum o f development t h a t has been
achieved during t h e past five years.

Some d a y I hope t h a t I w i l l be a b l e t o come and

see w h a t y o u have done w i t h
For Progress i n this Hemisph
see f i r s t hand w h a t t h i s g r e
Bank, i s doing t o touch t h e
t h a t we have mentioned this
t h i s bank and w i t h t h e A l l i a n c e
ere, working together. I want t o
at institution, t h e Inter-American
l i v e s o f these m i l l i o n s o f people
morning.

I want t o see what you a r e doing t o u n i t e t h e

Hemisphere w i t h strong ties o f industry and communication.
I want t o see what you a r e doing i n cooperation w i t h t h e Alliance
f o r P r o g r e s s a n d t h e o t h e r p r o g r a m s we a r e h a v i n g t o c o n q u e r
these ancient enemies o f a l l o f us — t h e enemies o f disease,
ignorance, and poverty.

We want t o pay special tribute t o you, Dr. Herrera,

today f o ryour leadership and f o rt h e success t h a t t h i s bank
h a s h a d . We p a r t i c u l a r l y w a n t t o t h a n k P r e s i d e n t T r e j o s f o r
b e i n g h e r e o n t h i s o c c a s i o n s o we c o u l d honor n o t o n l y h i m ,
but h i s people who have helped us t o make a success i na l l
of these adventures.

Thank you very much.

END (AT 1 : 2 0 P.M. EDT)