 The World's Honored Watch is Laun Jean. Laun Jean watches have won ten World's Fair Grand Prizes, twenty-eight gold medals and more, honors for accuracy than any other timepiece. Laun Jean, the world's most honored watch, is made and guaranteed by the Laun Jean Wittemaw Watch Company. It's time for the Laun Jean Chronoscope, a television journal of the important issues of the hour, brought to you every Monday, Wednesday and Friday. A presentation of the Laun Jean Wittemaw Watch Company, maker of Laun Jean, the world's most honored watch, and Wittemaw, distinguished companion to the world-honored Laun Jean. Good evening. This is David Ross. May I introduce our co-editors for this edition of the Laun Jean Chronoscope? Mr. William Bradford Huey, editor of the American Mercury, and Mr. Henry Haslett, contributing editor of Newsweek and editor of The Freeman. Our distinguished guest for this evening is Mr. Eugene Black, president of the International Bank for Reconstruction and Development. The opinions expressed are necessarily those of the speakers. Mr. Black, we're very happy to have you with us this evening. I wondered if you could begin by telling us something about the history and origin of the World Bank. Mr. Haslett, the International Bank for Reconstruction and Development, which is the full name of the bank, but it's quite a mouthful, so we usually call it the World Bank, was begun in the conference in Bretton Woods, New Hampshire in 1944. The bank was set up on an international basis at stockholders at the present time, 51 nations. It's begun operations about five years ago. And it's now made loans of over a billion, hasn't it? Well, you made total loans of about $1,300 million. Well, you just recently got back from a long trip in Asia, and would you tell us about that, what you saw, what countries you saw, and what you found there? Well, I just got back from a trip around the world, covering about 35,000 miles. I first went to England, and then Pakistan, India, Salon, Singapore, Thailand, Australia, and New Zealand. Are we making loans in that part of the world, sir, particularly in the India, Salon, Pakistan area now? Yes, we've made loans in India, totaling about $60 million. We've made loans in Pakistan of about $27 million, in Thailand of $25 million, and in Australia, $100 million. I just wanted to find out whether you were there to see about new loans, or just see how the old loans were working. Well, I went for two purposes. The first place I had never been in that part of the world, and I was very anxious to learn as much as I could about it. I find that it's important to get a proper understanding of a country's problems, to visit the country, and to meet the people, and to see as much of the country as you can. The second reason I went was that I was very anxious to see the progress of the projects that we had financed, to see how they were getting the loan, whether the job was being done properly or not. Well, our people have an enormous interest in India, Mr. Black. Our audience says, what type of loan have you made in India? So far, we've made three loans. The first loan we made was to rebuild the transportation system, which was in bad shape after the war. And the first loan, which we thought had the top priority in India, was for railroad equipment, diesel engines and coaches and so forth. The second loan was for the construction of a large steam plant, which is part of a multipurpose power project in the Damoda Valley in India, which will eventually have hydroelectric plants and will have irrigation systems and so forth as part of it. The third loan was quite an interesting operation. It was for the purpose of eradicating a weed in a weed infested area. There's a weed there in India called kinsgrass. And this weed has grown for a number of years there, and the land is worthless as long as this weed is in the land. And we carried out a number of experiments, and we made a loan of about eight and a half million dollars for the purpose of buying tractors, which were deep-cutting tractors, which could eliminate this weed. They've got the roots grow very deep, some cases as much as 30 feet deep. When we carry out this project with this eight million dollars, we will clear about two million acres of land, and the annual production of wheat on that land will be 40 million dollars a year. Well, that sounds very constructive, sir. Now, this isn't part of a grant. This isn't one of the ways that America is giving away money, is it? No. Our loans are made for... We expect to be repaid for productive purposes, and we think that they're for sound projects. Now, what's your record on getting repaid? Of the 59 loans you've made to 26 countries, are you getting any of them in default now? We've had no delay in the payment of interest or in amputation. So far, we have a perfect record. Well, I'd like to ask something about what the result of these loans is going to be. Do you think India is doing the things that will make it attractive to foreign capital? Ultimately, India will depend on attracting free private foreign capital, won't it? I mean, that's the only way it can grow rapidly. Yes, India will need private capital, and there's been some evidence of private capital going there recently. There's been a very large refinery built by American oil companies in India. And what we are doing is to try to supply the basic things, such as power, transportation, irrigation, developing the ports, the shipping, things of that kind that will be conducive later on for private capital to come in. Well, isn't the famine that's now going on in parts of India in part the result of their own governmental policies? For example, they still have price fixing in grain in India still, don't they? And they have forced governmental deliveries of that grain, and doesn't their policy tend to prevent the growth of the maximum amount of grain? Haven't they done other things, for example, such as divert acreage from grain to jute and so on to make themselves independent of Pakistan? I think that's part of the reason, but it also costs a large extent the drought. Yes, but they add to the drought by these policies which intensify there, and how are we going to counter that? Another thing that I think is interesting and alone to India is how we're going to counter the tremendous increase in population. I was just reading in Time and Tide, a British publication this week, that the population of the territory of India jumped from 319 million in 1921 to 460 million now. So as I figure it, that means that they've added practically the whole population of the United States between 1920 and now. Now, if they're going to continue that, how can you keep up with that? Any loans that we could make? Well, that's a difficult problem. It's very important, and whatever we do, that everything possible be done to step up the production of food, to try to keep pace with that increase in population. I can't tell you whether we can solve it or not, but we're sending them going that direction. Do you think the government's industrialization policy leads away, diverts land and labor and capital away from the production of food into other things? No, I think the Indian government is fully cognizant of the importance and the priority of doing everything possible to step up the food production. Well, hasn't there been some fear of socialization in India? Doesn't that keep private American capital away? I think it has, to some extent. Well, I think that they will now welcome American capital in India. Yes, on that point, sir, recently on this particular program, we've had a number of rather somber reports from this part of the world. Mr. Bill Bullitt and others have expressed the opinion that perhaps neither American capital nor American technicians were really welcomed in Asia at the moment. Is it your opinion as a businessman after this trip that that's changing and that there is a better opportunity both for young American technicians and for American capital in that part of the world? I think so. I think that's right. You think that you could conscientiously recommend that a young American with ideas and energy could go to India or Pakistan or even into the Middle East with some chance of a proper opportunity. Yes, I think so. I think that there are problems, but I think that they recognize, more than ever, the need for private capital. I think they recognize the need for technical assistance. You think that the World Bank, your lending agency, is aiding us in our efforts to contain the expansion of communism in that part of the world? I think we are. I think that wherever we can contribute to improving the standard of living or at least to hold the standard of living and where it is, will definitely help to contain the growth of communism. And, sir, once again, these loans that you make are made, they're non-bankable loans, aren't they? You're sort of an international reconstruction finance corporation. That's correct. We can't make loans if the private market is willing to make the loans. You're not in competition with private capital. No, we cannot compete with them. And despite the fact that you're taking long-risk loans, you're making loans with considerable risk, you think that you've had a rather remarkable record on repayment. Yes, that's right. Well, sir, I think that your message tonight has been very hopeful. I'm sure that our audience has enjoyed it, and thank you very much for being with us, sir. Thank you, sir. The editorial board for this edition of the Laun Jean Chronoscope was Mr. William Bradford Huey and Mr. Henry Haslett. Our distinguished guest was Mr. Eugene Black, President of the International Bank for Reconstruction and Development. Now, before a businessman employs an important executive, he wants to know all about him. Is he dependable, trustworthy, accurate, a person of good character? Because we think you want to know much the same things about the watch you buy. We give you these facts about Laun Jean. Thus, an untarnished reputation is one reason why Laun Jean watches have won 10 World's Fair Grand Prizes and 28 Gold Medal Awards. Dependability? Dependability is the reason why Laun Jean watches are official for timing championships, sports events in all fields all over the world. Accuracy? Well, no other watch has won so many honors for accuracy from leading government observatories. When all these facts are considered, we think that most people will agree that Laun Jean is trustworthy, dependable, accurate, in fact, a watch of good character. If you wish to buy and own or buy and proudly give just about the finest watch made anywhere in the world, for graduation, for a birthday or anniversary, for any important occasion, your choice might well be Laun Jean, the world's most honored watch, premier product of the Laun Jean Wittner Watch Company since 1866, maker of watches of the highest character. This is David Ross, speaking for your regular host, Frank Knight, inviting you to join us every Monday, Wednesday, and Friday evening at the same time for the Laun Jean Chronoscope, a television journal of the important issues of the hour. Broadcast on behalf of Laun Jean, the world's most honored watch, and Wittner, distinguished companion for the world-honored Laun Jean, sold and serviced from coast to coast by more than 4,000 leading jewelers who proudly display the emblem Agency for Laun Jean Wittner Watches. This is the CBS Television Network.