The Rotary Balita no. 695 (May 8, 1952)

What are the Powers of the Bank? U. S, Senator Wiley posed the question. He is concerned lest the Bank's proposals for resuming the flow of Ira- nian oil "encourage governments everywhere in the world to embark upon a policy of confiscatory action in violation of their contractual obligations." He also questioned whether the International Bank has authority under its charter to take control of the Iranian oil industry. Bank officials said, however, that the Bank's character was "very broad" and authorized it "to encourage the flow of international trade and investment." Certainly, a plan that would permit the 560,000 barrels of oil that Iran produced daily to flow once more into international trade seems justified by these broad powers. Will Iran Accept? A mission from the Bank visited Iran recently, and met with a rather cool reception. In simple terms, the proposal is for a three-way split of the profits between Iran, a dis-tributing and marketing contractor-presumably the dispossessed Anglo-Iranian Oil Company and the Bank, to insure retirement of an initial loan.