PROGRESS OF THE ASIAN DEVELOPMENT BANK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500220026-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: December 28, 2004
• Sequence Number: 26
• Publication Date: February 1, 1968
• Content Type: IM

 Approved For Release 2005/01/11 : CIA-RDP8 T0087 R001500220026-
Confidential
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
Progress of the Asian Development Bank
Confidential
ER IM 68-24
February 1968
Copy No 16
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 Approved For Release 2005/01/11 : CIA-RDP85T00875R001500220026-0
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP I
IXCLUDSD FNOM AUTOMATIC
DON NC)IAUINn AND
DLC LA NN IF ICA TION
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CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
February 1968
INTELLIGENCE MEMORANDUM
Progress of the Asian Development Bank
Summary
The Asian Development Bank (ADB), capitalized
at $965 million and conceived as the principal
center for finance and regional economic planning
in Asia, has made impressive progress since its
inception two years ago.. In January 1968, the ADB
made its first loan of $5 million to the Industrial
Finance Corporation of Thailand, and in February
the Bank extended a small technical-assistance
grant to a newly formed South Korean development
corporation. The loan to the Thai corporation will
be used to finance industrial projects in the
private sector,. and the technical-assistance grant
to the South Korean institution will finance an
ADB mission to provide managerial advice. Activi-
ties initiated during 1967 included an agricultural
technical-assistance mission to Indonesia, completed
in January 1968, and extensive survey missions still
underway 4n several countries to determine poten-
tialities for development that would merit !cans.
The comparatively rapid activation of the ADB
augurs well for-its intended role as a key
financial institution in Asian economic develop-
ment. It has moved ahead as rapidly as the Inter-
American Development Bank in its early stages and
somewhat faster than the smaller African Develop-
ment Bank. The ADB not only will channel capital
to small-scale development projects in Asia on
Note: This memorandum was produced by CIA. It was
prepared by the Office of Economic Research.
CONFIDENTIAL
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. CONFIDENTIAL
both conventional and more liberal financial terms
but also will attempt to promote regional economic
planning. Although the loan cperations of the ADB
probab-ly'will have a significant financial. impact
on economic development in Asian countries, the
greatest. contribution of the Bank may be the
impetus it gives to regional economic integration.
CONFIDENTIAL
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CONFIDENTIAL
Organization and Functions
1. The Asian Development Bank grew out of a
proposal by a group of experts of the Economic
Commission for Asia and the Far East (ECAFE)* on
regional economic cooperation. This proposal was
endorsed by ministers representing Asian countries
at the ECAFE Ministerial Conference on Asian
Economic Cooperation in Manila in December 1963.
After detailed technical investigations were com-
pleted by ECAFE and a comprehensive report was
made available, the agreement establishing the ADB
was signed in December 1965 and January 1966 by 30
countries, including all regional ECAFE members
except Burma, Iran, Mongolia, and Indonesia (which..
joined in 1967); three nonregional ECAFE members --
the United States, the United Kingdom, and the Nether-
lands; and eight European countries and Canada.
The Soviet Union! and France, both members of ECAFE,
have not joined the ADB. Membership a:n the ADB is
open to members and. associate members of ECAFE and
to other regional and.nonregonal countries. that
are members of the:"United Nations or any of its
specialized agencies'. Thus, Communist China, North
Korea, and North Vietnam are not eligible for
-membership..
2. The ADB, to which the United States and
Japan have each subscribed $200 million,** is
expected to serve as a principal renter for-finance
* Member nations of ECAFE are Afghanistan,
Australia, Burma, Cambodia, Ceylon, Nationalist
China, India, Indonesia, Iran, Japan, Laos, Malay-
sia, the Mongolian People's Republic, Nepal, New
Zealand, Pakistan, the Philippines, South Korea,
South Vietnam, Singapore, Thailand, Western Samoa,
France, the Netherlands, the Soviet Union, the
United Kingdom, and the United States. Brunei and
Hong Kong are associate members.
** The ADB is capitalized at $965 million (see
the Table). One-half of the authorized capital
s"