World Bank Clarifies Position on Status of Observers at Its Meeting

The International Bank for Reconstruction and Development (IBRD) — popularly known as the World Bank — clarified its position today on the status of observers at the annual meeting here next week of the IBRD and the international Monetary Fund (IMF) which is a member of the World Bank group, whose boards of directors have ruled out the Palestine Liberation Organization from attending.

The IBRD and the IMF adopted a U.S. sponsored resolution that limited observers at the annual meeting from Sept. 30 to Oct. 3 to those who were listed as observers for last year’s meeting. The PLO was not among the 42 observers who attended last year’s meeting.

TANZANIAN DECISION NOT OVERRULED

However, the two organizations did not overrule the decision made by Tanzania, which holds the chairmanship of next week’s meeting, to “disinvite all observers.” World Bank sources indicated yesterday that the IBRD — erroneously referred to as the Reconstruction Finance Corporation yesterday — had in effect upset the decision by the chairman, Tanzanian Finance Minister Amir Jamal.

Today, however, they said the IBRD and the IMF boards con advise the chairman but are not empowered to overrule him if he doesn’t want to issue invitations, it is understood that Jamal’s decision was intended to place to Saudi Arabia and Kuwait which had sought observer status for the PLO. The boards reportedly went along with Jamal’s “compromise” to avoid offending the oil-rich states since they may withdraw support from bank loons and credits.

In discussing confusion resulting from the board’s action against the PLO and Jamal’s decision to bar all observers, bank sources said it was now uncertain whether the Bank for International Settlements and the Organization for Economic Cooperation and Development would be allowed to attend as observers. They have traditionally attended the annual meetings. it was indicated that the Arab states may take the PLO issue, to the meeting despite the votes against them. But bank sources felt that “the join flurry is over.”