THE WORLD BANK GROUP ARCHIVES PUBLIC DISCLOSURE AUTHORIZED Folder Title: Banque Nationale de Developpement Economique Project [BNDE] (04) - Morocco - Loan 0660 - P005356 / Credit Immobilier et Hotelier Project (01) - Hotel Financing - Morocco - Loan 0704 - P005359 - Negotiations - Volume 1 Folder ID: 1697585 Project ID: P005356 Dates: 6/23/1962 - 12/15/1965 Fonds: Records of the Middle East and North Africa Regional Vice Presidency ISAD Reference Code: WB IBRD/IDA MNA Digitized: 11/29/2017 To cite materials from this archival folder, please follow the following format: [Descriptive name of item], [Folder Title], Folder ID [Folder ID], World Bank Group Archives, Washington, D.C., United States. The records in this folder were created or received by The World Bank in the course of its business. The records that were created by the staff of The World Bank are subject to the Bank’s copyright. Please refer to http://www.worldbank.org/terms-of-use-earchives for full copyright terms of use and disclaimers. THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Mo1tocco - oan 6601704 MOR ( Negotiation~ ) I -- -=-,~ 11 1111 mm1 111 111111111 1111111 1111 11 1 111r1111 111 1887181 A11H-OIO Other#: 31 1701831 Banque Nationale de Developpement Economlque Project [BND!J (04) • Morocco. Loan 0660. P005356 I Credit lmmoblller et Hotelier Project (01) • Hottl ll'lnanclng. Morocco. - c:::, :z: >< c:::, l:ICI .. . - . .. .. . " . . . . . ' , -- - . . . . . . .. - " : .. . .. . .: . - . . . THIS FIIE IS CLOOED AS OF DECEMBER 196.5. FOR FURTHER CORRESPONDENCE SEE1 1966 - 1968. RECORDS MANAGEMENT SECTION February 1969 /f)Cf .3z.. ¢ ~ o-J°J.o ~<4. RABAT , LE 1 5 De c . 19 65 Monsieur W ill i am DI OND CAPITAL 30 MILLIONS DE DIRHAMS Directeur des Compagni e s BOITE POSTALE 407 - RABAT· TEL. 264 - 41 - 42 6< 43 ADRESSE TEL EG RAPHIOUE 9 A DEMARO C Fina nc i er es de Developpement 1818 H Stre et N•• DG/MF/ N° 207 WASHI NGTON 25 D. C. DIRECTION GENERALE .SPECJAL DELIYBIY I / Che r rrionsieur DIAI' OND , 3 \ f1~ ~ -/1-~- ~ ~~ su-'11:; - Faisant s ui t e a no s d i - f ere nt§ e n ~ au jet de notre i nt ervention pour le fina ncement des proje t s hot eli e rs , j' a i l ' h onne ur de vous t r ansmet tre ci- j oint l a let tre que j ' envo i e ce j our a M onsi eur EL EMARY a la- qu elle j ' y joins l es t a bleaux r ecapitulati fs des projets ' ./ !"/ de l'e spece . .\ J ' ai t enu , a va nt de r ep ondre a la l e ttre de Mo ,, . / EL EMARY, a c onnai tre le sentiment de not re Conseil qui s ' est t enu l e 22 Novem bre e t au cours duquel j ' a i exp os e l e s ~ r andes lignes des pr op osit ions de M. EL EMARY. No tre ~ ' Cons e il n ' a pas s oule v e d 'obj ect ion p our l ' a pplicat i on de s ua tre points ment ionnes par l a B. I . R. D. et m' a charge d e pou rsuivre l ' examen e t l a r ealisation de cette op eration afin d ' a ssure r a l a B. N. D. ~ . un volume d ' affa i res en a c- croi s sement p our l ' annee 1966 . J e vous ad re s se e a lement ci- joint, les proje t s susceptibles d ' un i nancement par la B. N. D•• pr epares par n os s oins sur la ba se des i ndi ca tions f ourni es par l a C. P . I . I1 . Vous en s ouha itant bonne r e ception, j e vous pri e de croi r e , Che r Mon s i eur DI fJ:OND , a l ' assurance de ma considerat i on . / Le Di r e ct eur Gen eral , M ~ ohamed B~NKI RA.NE H[C EIVEO li EN Efl,\ L FILES COMMU NIC ATIONS 965 DEC 20 lUi 9: 08 1 ·,- ~ RABAT, LE 15 Dec. 1965 c., . es-- i _ BANQUE INTERNATIONALE POUR LA RECONSTRUCTION ET LE CAPITAL 30 MILLIONS DE DIRHAMS 3 01TE POSTALE 407 - RABAT - TEL . 264 -41 - 42 DEVELOPPEMENT ~ 4 3 ADRESSE TELt G RAPHI O UE BADEMARO C. 1818 H. Street N. W. DG/RT. n° 205 WASHINGTON 25 D. C. A. G. El Emir a l'attention de M. EL EMARY. F=t-- DIRECTION GENERALE OBJ ET: Intervention de la B. N. D. E. dans le credit hotelier. - Messieurs, ~ ous avons bien re9u en son temps votre correspondance du 1 foct~bre qui a eu toute notre attention et vous en remercions vivement. Nous somrnes parfaitement d'accord avec vous sur les quatre points essentiels signales dans votre correspondance. Nous etudions actuellement, en liaison avec le Ministere des Finances et la C. P. I. M •• un mecanisme d'intervention de la B. N. D. E. dans ce secteur et ne manquerons pas de vous en expo- ser les grandes lignes des qu'il aura ete mis au point. ~ );.~ Comme vous l'avez demande lors de nos entretiens a

E a mmber ot hotel J)l'OjNt. to be tinaneecl joint- ]¥ with CPlM. We •ball revia thaa on a eue by' UN baaia an4 deeida 1n euh .... what.her tu projHt aho1lld be e11gible tor t1.nanM under tha Benlc loan. In this eoDDNtion, I am attaoh1ng a eow ot a letter whieh Mr. El...,. hu Nnt to BIDE Nttina tort.h 'tlla aia ,rindplN *1eh w hope BNDE will follow in under- tald.na nob joi:At projHt. wit.h CPlM. Attuhllmit ••• Muare. Benjenk T. Jones Fbny Bate1llerd Qarrana-Lulldberg ~1RFSk:Ul1ngaau. A - ·, I.' ~' . •.L Files OCtober lJ, 196S _J Ill M. Cojot Meeting with the Moro,ecan. Delegation . I. • -I 'I .... • - ~ -· ·1.... L . ( J Maaan. JU Jaar;y, Willi•••, Ban.1-*, Boos and Cojot • t with ,. -. Mnan. Tabiri, Sl.aoui, Barpeh, Benkirane and Tui ot Merooco on Sept.eeber 27, 1'6S. The natua of TU'ioua projNt.a or poa• aibl• projeeti vu ~ . A ~ 11Nt1nc waa bel.4 OD Onober 1 attend.ecl bJ '119 .... penou (--.,t Jlenn. W1l11n•, ~ ·- Boos and Co jot) and Jlaalh"9. .Ali Ben,elloun (Dinetor General ot OCP) and Mr. Ton Hottunn. , "" • . ' .; i. . . • 1 . ,.·... '' ....,. I ... I I 1-1 - 1. ·OCP .. tY ,,._ l •· . 5 · ~ • ·. ~· ~ I , It vu agl"MCl that, pending the nllliaaJ.on ot a •te.Uecl projeet ,- tor OCP•e iD'YNtaent prograa 1n tha Sidi Daoui area, ua D'C ld.aeion • rr ,. . vould, on bebal.t of the Bank, aalc• a preUainu'J NY1n of OOP u ~ an inatitution. I • a. To~ .·-_ -N~ I ... .. I T- 1 Mr. Tahirt point.eel out that lut Jee in TolrJo the pl"inci.J)lA ·. ot Bas f:1D&Jle1ng of '°'11'1111111,.d. been ueepted and \hat \he tour1ea • I ohapt;m, of \he MeroMan nan . . ftr7 IIWlh 1n line wt.th that ot the ,: .• IIVft7 111.-ion•e report. Mr. vn11- nplied that the )lri.Doiple \ bu been UNpted nt that. a pNjeot ~ t l y oonftnecl to touria .. ~ ,rou1.d aout.1\ut. a MW t ~ te ti. Bink. To enable \be Bank to ... · - N&Ch a poeitlon DD ~ I tounaa, u noh, in Moroeeo, it wo'Qld be balp.tu1. to reo*1n a clofnment duffibiq ~1"0000'• procr- tor · ••ther touriat .tnelo)allllt., than Uaoua• 1.aolated Pf'0.1MW. ror the t1ae be~1, •QM propue ooul.4 be ll&da bJ un1n:lng a t.ut oaee 1'h1oh oould be IUbld.tted to ti. BaDk u a nb-irrojeet by BNDI. Mr. Tahiri wined that while the Bade ooulll finanoe tov1.a through the BRDB, ha nnt.l OPIM, 11hich vu ti. l'NOp.ise4 Korooean bCM\r tor tinano1q tour:l.111, to be a~ to 111• ita aperi.eDoe 1n tld.a •tter, ~ have aooue to lam flmde. It wu clNil"able to ha'Y• bol'Nllin depen4 only • ·.1 QOD a ehgla ina\ituticm tor U"Nit tor touria, rat.be than on two. J It ..,.. a1ao all,"Md that thl Bas "1.ght un,ne projeota to ftnanee 1ntnetneture {roa4e, pc,nr and ,rat.er eupp].y) eonnected vit.h the dne• lopaent, ot a tourietic &NI&. ). ldueaUon aad A@1::!ultural CJNdit . - ; -. Projeota Mr. lenjem illdi.oated that the tOl'IIID va• to ao to tbi BoaN DD ootober 7. litgotiationa for the latter &ft ocapl.et,ed aD4 proyi4ecl the taruli\iN &N properly ooapl.W with, ta projNt eould be pnaentedlto tbl Boari about Jdd..Qetober. ., 4. - Clff'A • MP. Benjenk 1ndiea'414 that th1e 1netitution vaa na.t on our projeot U..t end t.bat a Kiee1.on vu to go to Moroooo to appraiae 1te : needa for oredit. I ,? ~, 1• L. ., ... ,, ... •·. ...· ~ t • . ·l,"f .,.f .... _-. . ... I.• .... , I ,. . f' . 2. ,. J'' , "' ""' ..- ·J• . I • ~ 3t .~,- "I l L Ii.,,:- It .. '1.-1 ' I ...- .a. ,. .J ~ • ;- . ··' . I .••• ·' I I ~-.1! ~·\·· •, ·:· .. ~ - .... -~J . . - ' T.. _t- ..... - ,. I ~;1· ·._ _: ... '!I .. A joint Bad&/IJ.O 111aaton ia \o exaw1ne th19 Pl"03Mt •"' tlllt -~--~.rio1v · J- ·i.. and of October. ~. Barga.ch indioated \ha\ bl ha4 ao laaowl.NP ~ _ _ ~ •....._ of the Nnd.ing of a UM8J' Miaion t,o lloroooo Sn OOIIIIMUm with •- \hie project. Be S.U.W hia ..s.re \o coor4iute \bit etfona .,:_ · ·.'1 · of all ianitutiou ~ witb-Derro. ~- _..... I~- ' '"11, • I •. "~• • •) ...... 6 . = BNDE · •• - ,_ " ·, ... - . I~: - 11:3 I ...-. Jr • ' • · .... : ' ,_ I • ,- I L- - -·~ .. ' ' 1 I • An D'C aiatioD viU be le&finl for Moroooo \ma NOON ~ ~ - ~ ~-.,.'\· ?-1·. halt of Oc~r to aP,lll"lliN BHDB•a 1..,,..,na Pl'OP'UI and need tor 1 ;,, • --.::!•,__..._ t\mda Vi.th a via¥ t.o the reaobiDg a dHi'16D on a aeooad Bak•• -i flfl"' I. '; line or oNCl.it tor BIDI. ,~ · , ~'<, ~'t'f.,_t- ;t~ ~. 1 • "I" I : ~'.• · ~ ' • .... · 4 .• .;~ lf'I ~' . l.i..P- • • ' {i ·~ ~ .)t: ~ -~-i . I ~· ~....- I ,: .- , . .... ,,t:; "'J! .- . ~ I I ~ ~ J 1 IJ - 0 L _ • , 1-, • I II •, f ..: ,~r'IIIIC •• 1'.-· .._ ii! - , r I ~... • ~ I - ' I...., I t • . I I).. J. II I r - - . ~ •. r:· q• I ~ , } \ ._, I J ·.~ ' .. - " . '-= . ~ 1 .,, ..f..:' - ~ ~ J ::...1 '--1 . . . . . . . -. , I I. \~ ,..1 i--•• · MOojot.~~100• . ,. ... • I • --.~ 1,, . ~ ,_ 1 . -~ ·, ·'~;~) ·)s, _.. Copy to Mr. Tui r ' 1-. L .t. ' ----, . :_.·-~~.:Ji: ~ , ' ·~..1: -. J .·. .,.. · r.- I •• Maasra. n ~,NUJ1aaa -~ . ,:- ' f •r .t. . 11· .. . ~ Tui . ' ·~, I -, ,. r I ....... D1aaond I -1 ~ '• ~ TOD Hoffllann ii,.. I •r J ._, 1 ·' L . '11 I. ' $: I ~ "' I .lo ~- °'.c ~~- ·..t-1~·. /---..,. ·. r ' ..• ~ 1_ 4 • f L • '• ~L •t ' ;. . ,t. "I:- .,,, • ill i ... ~ t October 1.3, 1965 Jlfr • MohaMc.l Benld.raM DirMtev 06n,ra1 BalM(u latioule pour le Dmlopp_..t loonoJd.ttue Botte Foatale 407 Rabat, Karoo. BIDE'• letter ot Jw JO ukN u to N rut on oert.ain propoul.a tor the f:l.1wud.111 of hotel projeota in aaaooi&tion with t.ba CaiaN du Mta Iaobilien a Ma.roe (C PJX). A• 7ft kaow, the paval. ..-t.1on ot hotel f:lvne1ng bu DND tia8118Nd with the Bau: and with D'C OD Nteral oooaaiou in the put J'N.I' or aon. You will han a JINON of tboN llltChaaa'e• aDd I ..itl nwpq add that the 1961a. Worli Bank loonmd.o Suney Mi•d.en to Jlol'Ooeo ba• ,aid partinlar attention to hotel 4.nelo,-nt and !'NC'IIIIBCI ita report to 79111' attention lfhen it beooa• an1labl.•• We beliffe that clneloJ1119Dt ot hotel• an4 tour.la 1• ot hip ~ priority ill t.- Mol'Oeean eooDOJ17, aDl that it ahcnalcl be aa illportant field ot aoti'Yit7 tor BIDI. We lteJ.ien, tutbal'IIOre, that BliDI'• app:roaoh to the fimoiltg •f hotels aboul.4 be hnda:alD~ the .... u ita &PJ)l'Oaoh to indutrial pl'Ojeota. It appeara altopt.bar natural that ill unat1111 th1a aeotor BHDE ahould frequntq adert.ake the joint tiuMilla of projeeta with CPIM. I a nre 70\l ean work out the 11Nhan1 oa ot tbia Nlatiouhip with CPIii to the Rtiafaot1on ot both partiH. In uk1ng thue arranpMBta, n tNl that there are tnr ••nntial point• to N aatiafied troa BIDE'• point ot 'Yi•s Fint, BHDE ahould retain ita ~ t power to appl"Oft or rejeot ita partioipation in Ul1' loan or ilrnataat. Seoond, BIDE aholll.cl partioipate aot1...:l.7 in t.he .appniaal ~ the projeot, and ita enldnation ahoul.cl be d.ireoted toward N'Nal1q the projeot'• MODald.o aD4 tinanoial •l'ita, in the .... u:aner u in BIDE'• appraiaal• ot indutrial projeota. We haft noted that CPDI'• appra1Nl.• are oarried out bT, or under the aupem.aion ot, eacperta from the Cridit Fonoier de Franoe, whoN partinlar -,erimoe 1a in the tiel.4 of real utate &Del aortaap tirwac1q. I would th1nk that BHDE eould MJm a ft'J7 nbatantial oontribution in add1:nc to tb8 work ot theN -,ertll it• oaprehenllin . Jj· apprd.Nl. of the eoonoa:Lo ancl t1n1vial jut1.tioation ot the -· ~ I.' i.i ~r, It I ~ projeet, thl nitability ot the eq\d.JJMD.t Hing npplled, , , 1 " ·~- _ - .r p- l ot the Jllall&PlllaDt ent'iaapcl, and ao on. I j .' ~ ~ - \.- ' - ,, Ill'. Jlobru:nar4 BaJd.w -2- Third, BIDE ~ rata:1a fJ 11rta to ~ ta. tena ot ita lolma. Tba JIIP03en &Jllll'ld.u1 all tba a.euatom vi th CPIM w1 with ta app11eaat 1lll1 l'IIRlt ia a apeed t1uncd111 p1.aa. bat ta lom baa tha we illnitat.iw probabq aboRlA aot be on ta w .......... Blll>B alloll1d eharp ita DOftlal rate ot 1Dte!Wt ad oapt t o ~ tM duration of and ....ar1.ty tor it.a loam to ta.a ..... of tba project. All - - it, 1ib1a 1lill ...it 1a 1 - fJIGll - on t w -,w11ar to t.hoN ot ita low to ialutr:l.al projecta. Fourth, vbataftl' eoatruwal anaeamta plWll Bllm'• lendinc. t..a, allould be uan ia auh a - , u t,,o . . . . . .taq proteO't BIDE'•~. I hope th1a apl •1N ov poait.ion olearly mil prc,,ea wta1 tor BIIDI. If the abotS Tllt.icmld ecmditiau U9 M.f1J]N1 the Bank 1a pnpt.Nd to eamder hotel p,rojeeta tor 11.....,111 Gilt d ita loan to BIDE under the .... proeecblre ancl aabj•t to ta .... Nldl.U.. appqilll to indutr:l.al p:,ojeet.t. We look tonud. to l'MCnJIC lllloh pziojeeta. With 1dm Nl&l'da, ~ I, ... ' f·.. . ~- .~ . • .i...' j~· ... ' ' ll '1 t I t, . . ~- ; ..... r . • . 1, - I •. -. :-1 • I I ~ ~ ~ t° 1 I I ...... ..,L ~ T' :;-. ··i1· :.· 11 , . I l ( . ' . I ' • ~ ~ ~ I,~ .I ... I '11. - I . 'I_.,_ t . . . -.. ~ .;.,I .. ... • • ., ' ~ ,I I ~ Record Removal Notice Arch iVes 0 & Records M.inagcmcnt File Title Barcode No. Banque Nationale de Developpement Economique Project [BNDE] (04) - Morocco - Loan 0660 - P005356 / Credit Immobilier et Hotelier Project (01) - Hotel Financing - Morocco - Loan 0704 - P005359 - Negotiations - Volume 1 1697585 Document Date Document Type 28 September, 1965 lI Terms of Reference Correspondents/ Participants A : M. Abdel G. El Emary B : Abderrahman Tazi Subject/ Title Financement d'un credit hotelier au Maroc ·--- Exception(s) Additional Comments The item(s) identified above has/have been removed in accordance with The Wo rld Bonk Policy on Acces s to Pending a decision on matters co ncern in g Board of Governors (BoG) records , the declassification and disclosure Information . This Poli cy ca n be found on th e World Bank process set out in the World Bank's Policy on Access to Information cannot be applied to the non public records of the Access to Information website. BoG. Please refer to Al Policy interpretation on the "Application of the Access to Inform ation Policy to the Records of -------------··----· ---·······---- __ . ___ · - - - · ________ the Board of Governors", dated February 27 , 2014 which is available on the World Bank Access to Information website . Irwithdrawn by _J Date Chandra Kumar 24-M ar-l 5 ·------- Archives 1 (Augu , t 2014) FORM NO, 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICATION: Me,no DATED: Sept. 28, 1965 TO: Files FROM: Mr. Williams F1LED UNDER: Morocco General Negs. SUMMARY: Tourisr- a nd Bnde; consideration of CPI and also Bank Loan since BNDE could not fina nce it; FORM NO. 59 ( 2. 55) CROSS REFERENCE SHEET COMMUNICATION: Memo DATED: September 27, 1965 TO: File s FROM: Mr. Skillings FILED UNDER: Vorocco BNDE General SUMMARY: Profitability; Adviser; A:111ount of Loan; Financing of Touris'!Tl . MOROCCO -- FINANCING OF HOTEL INDUSTRY 1. The Government asked the Bank for a loan for CPIM, for the financing of the hotel industry. CPIM, a subsidiary of the government-controlled Caisse des Depo ts de Gestion, until recently functioned primarily as a real estate mortgage-financing institution. Of late, its activities have been increasingly directed towards financing hotels. The Bank told the Government that it would not lend to CPil1 primarily because it was not a suitable institution but also because the Bank felt ENDE was a proper instrument for financing the hotel industry. 2. The Government then proposed that ENDE give a line of credit to CPIM, but this has been discouraged both by the Bank and by ENDE itself, because CPIM would thus be inserted as an unnecessary intermediary between BNDE and its clients. 3. The Government's latest proposal has been for joint financing of in- dividual hotel projects by both BNDE and CPIM: CPIM providing dirham financing and BNDE providing foreign exchange from the World Bank line of credit. (a) The exact mechanics of collaboration, as described in the documents we have received, are a little unclear. However, they imply that CPIM's Board (on which ENDE would be rep- resented) would make loan decisions binding on ENDE as well. (b) There appears to be a difference of opinion as to ~hether in any particular joint financing there should be a single loan contract (government's view) or two separate but related loan contracts (BNDE's view, at least until the summer of 1965). The Government's argument for a single contract is that CPIM is an institution specialized in hotel financing and thus having considerable expertise in the field. However, there is ambiguity on the contract: one document states that the CPIM contract would assure ENDE rights of end-use supervision; another does not mention this point, but implies the opposite. Our views have been asked on this proposal for joint financing. 4. Tourism merits high priority in Morocco's development plan; and BNDE has already been informed that the Bank would have no objection to BNDE's financing hotels or to the use of the Bank's line of credit for that purpose. As for joint operations between CPIM and ENDE, both institutions could benefit from such collaboration. CPIM would contribute domestic currency and special privileges for its borrower as well as som e experience. BNDE has also developed considerable expertise in the tourist field, perhaps more than CPIM itself, which has only recently bggun to finance hotels, while ENDE has been involved for several years in one or another aspect of tourist industry promotion. Moreover, BNDE's ability to invest in e~uity will be important in financing the hotel industry-i~ --unsatisfactory debt-e~uity ratios are common. -2- 5. Accordingly, we would encourage joint financing by BNDE and CPIM. However, BNDE 1 s responsibility to its shareholders and its position as an independent decision-m aker require that, in joint financing as in other cases: (a) BNDE have an independent power of decision whether or not to finance a particular project; (b) its examination of that project be based on the project's economic and financial merits and that it agree with CPIM on a satisfactory financing pTam f or the project; (c) its terms and conditions be "hard"; and (d) contractual arrangements with the borrower adequately pro- tect BNDE's interests 6. fhe question of whether to have separate contracts or a single contract appears to us to be unimportant if the foregoing criteria are strictly adhered to, and if BNDE's rights as an independent creditor are adequately protected. The question is principally a matter of convenience. 7. Rather than continue to discuss general principles, it would be better to develop a concrete case, to proceed with it in accordance with the criteria mentioned before and to draft contracts appropriate to the case. WDiamond:us rrur " <] -rC:i..) . .I '{ ~ ~22,196S tor"""'" ot P2te1! MCR>CCo - mm, ?mfflle ~~~ =.t;o=,: =:?·a:===~':=:.: (cmo. dell Mu 1-aobtl1. . dla Hlt:roo t.bl otlJllt tOP anocd.at.1.aa ot lllZ Id.th wat•• ...-w. CP.DI Sa nmno1111 bDte1 TIii 1a,w, . oJeo pr '11le tw ~ - ..,..... t.o i. tM aovw• 11owe..... s. · w• l1ld.ob . . . . .._. _..., . . . r.. our - , to t.be w.ldll8 111.t'tf' of Sljttr A• , - tdl1 ,.....,. U. WGfld.ail Jvta.r'• ~ Oil tht.a lattar pNp>Ml. 2. '1'hl w.ldll8 BlriF bae not dltJOUIINll tbt foll!IW propoal - cttNot .,..... to -111.- CF.Df.Batlb 1lbm Mr. Tald.r1 Ni . . 1\ with Mr. Sk1ll1. Sa lloncco 1D J\lm 1964, 1111111 - - Hr. Blupob rateed lt b11ra wltb thl Bttlt 1n Juli' 1'6S, U. 1,-.pclllN w JT naaattw. .3. '1'111 CPDC 1a a aabd4:l,tJ7 ot tm Od.- dlie D6p&ta • • Oert.1m aal t.am ~ Oo••• It. bu flDrt.toDl4 • a r..:l-Ntate or mrt.1111 fl.,,,,,IW tn.tita- ttan lnrl aaJ II 1cwW for -.J_ ~ ~ tc. law IINt lme.1111, ~s~~1::1n~l: t:9a~,~ ~f~-':'!:'~ ::=~· tor~ h d = - . tor botela. 'ftd.11 lMt. actt..S.v ot b CPDI la aabt.i.t.lAld U. __.. of 1lo & I • S• 19621 ca IIDft8III ..U.t, wld.ab eateNt.., ~ oansUtiiw tor 1oeDI to ..:a. ....,...,... t'l'GII mtboJ'Sald l a n i ~ . ..,._ b l 111, t.bla act.1.T.U" Z'ISIIU 1'84 ~ 2h% ot 1-- appao,114111 ~ 4. CPJIC•a aper!- 111 bota1. loee Sa, ~ llaaft. 1111d bu not bean a 1 ~ eat:1atactol'7', tt "'.,..,., .. tm ot • 1962 • • • Jll'Gftd dUt!GuJ.t, to atlaty UDt.11 IIOdlfted MJE I lblt dlar.l.lll 1SJ63 m l ~ . We a- DD ........ t.hat, CPIM hu aaqaS.Nll tba ...,..S.0. ot tANl'.1.III that 1ll>B bu u a l'llllalt of 1ta operat:l.ona 1n SCIWZT, SFDLlH,eto. S. 1"9 Blmk S1ll'ftLY Nlaaia . . not Sip I IIM bT CPDI' a ft.t.lW t.o 8Rft,1.N bot.el. p!'Ojeota - ~ -.-u hall tM "C..wt.t l'ad•n, cm 1lblll CP.DI Nl:l.a, law _.. ...,..S.O. 1D Na1 eatate l:aeln1r1 SIi ....,.:1 (...iuau.cm ot OCIIUIVIIOtiaD 11114 11111d .,.i.) t.bla 1n botie1 buetmN. It bu NO . . . . . . . . . . of 1lbl Cndlt JISteUw Sato m _, ___ 11111111d.tll 1W OIID eq,wt, etaft. Tbe 111.....-•e Rllport daa dl8'1llpilb 1ibll eatAlblt.. 11,t; 11d tlDll.lld.Jw of hotA1 Oftdit U WIii r, "tO at1al1ate Ja'J,'fate NOt.ar iauaf 111t.• 9T21pdop 6. Aa ildlMt.ed, tbe Wostd.111 Alrt,' teal8 tat BrlJE om 81111. ebaold 1ta4 to hot.el pa'Ojeota iD umoiatiOD vlt.b ta. CPJII, 8UbJeat to Clll"tldD Jll'llldpJ•, ml W IIOa1d .....t time aN Nte:Nl. ~ to . . ~ for Ban1c Jw dlNct to tbe CPJIC, ~ 1 (1) 1\a ataadud of operat.1CD8 . . ..,. 111111&U~J ts...,,. (11) flm9 - . nc,t, . . . . t.o be 811' ~ . . . .. 11 IIIOli t'or ~ a ....S lalt.t.taatlCD ill ltwoooo ill a ftflld ot aoti..S.t,7 w be11 •• ~ - tor 111>!:. 001 MIU NeSk1ll1np, . . . . T.-., Rnl!r, B a t a d . 1 l a l d , ~ • lWilal'toll1110. ~ Mr. N. H. Hanh Septeaber 20, 196S R. B. J. licbarda ll>IOCGD - BNDE1 Propoaala tor rinanci.D& ot Hotel• In 70ur ..._andml dated September 17 to tbe Working Party it 1a recorded that "D'C Legal Department has upreaaed a preference tor al'Nngeaenta allowing BNDE to aign a separate contract w1 th the client". Thia does not fully reflect our vine. In the tirat place, I think that the question of form may auk a question of aubatance. I haTe not e:xpnaaed arq Tina upon the basic question ot who lenda to whom tor what. This is the illlportant basic utter • .A.a to the aeconda!7 .... u. ot ton, it aeeu to • a matter ot no i.llportance whether._. 18 a mltilateral loan agreeaent between a DUllber ot lencillN ad a borrover, or aeparate &gl'Nll8llte between aneral lendera _. a borrower. Thia ia a utter ot con- venience onl.7. J'requentl.7 it ia .... NlmlDient to haw Hparate contracts between each lender and tM NnOlfwr beoaun, 1n thia wq, each lender oan baTe the tol"Dl Ula\ he vante, ratber than negotiate on the matter. In an:r eTent, it, will be nece88&17 to coordinate coT9ll&llte and events ot dllfa11lt. I I ~ RBJR/jgb - I ff A •. •• . . ' . l t\llW ' • HEADQUARTERS '. WASHINGTON 25 . D. C. INTERNATIONAL FINANCE CORPORATION TELEPHONE WHITEHALL 3886/ 3887 c .. eLE AoORESS : CORINTFIN LONDON SWI LONDON OF"F"ICE: NEW ZEALAND HOUSE HAYMARKET · LONDON. S.W. I 7th September , 19650 Mr . William Diamond. irector , Development Finance Companies Department , International Finance Corporation, 1818 H Street, N. W., Washington. DoC. 204330 U. S . A. Dear Bill, B DE - Tourism 'aJld Hotels ~ Thanks f or your letter of Augu~Oth, anc] the memo of A ugust 23rd prepared for the W orking Party o This i s interestin and it is useful to me to be brought up to date on I BRD/IFC contacts with BNDE and the Moroccan Government on the subject of finance for hotel s . I have two observations to make , on paragraph 14 of the memo- randum. Paragraph 14 recommends rejection of the Finance M inistry's re- quest that t here should be one combined loan contract, covering both the C. P.I.M. loan and the BNDE l oan (which in the opinion of the Survey Mission, see paragraph 9 , may often be acccmpanied by a BNDE equity investment )o First : on the purely formal and procedural question whether there should be one or two loan contracts, our own IFC experience in our early years led us to t he firm conviction that one canbined loan contract was un- questionably the best met hod, when t wo or mor e investment institutions were making more or less simultaneous investment cornmitmentso Ask Dick Richards about the troubles and waste of time involved in the several loan contracts in Mantos Blancos! Second: m uch more is involved here t han legal formalities or investment procedureso You will recall (from my recent conf i dential letter on the Bengelloun drama ) that Bengelloun himsel f believed that his refusal of the Finance M inist er 's request for B N DE t o channel I B RD funds through the CPIM was the event which triggered the G overnment ' s decision to get rid of himo Now you are proJ:los'na (or: at l east •the memo of A ugust 23rd proposes ) t o continue to refuse tha ipequ st to channe l funds in t hat wayo I entirel y agree with you , but if you refuse the request t o charmel, I think you would further inflame our rel ations w ith thel _I Finance J Minister, if you a l so refuse / continued ••• o•• oo.. o .. . . . .. . . 1f • • f1EC€1'.'E!J Lf.} ·L :p.J"U91116 OfU., L6Jg+:r01J2 t J4:Jl E~}-J- f·ilff.. '91JC :r:rlJ:f8+5L 1 °!l A0f1 gJ20 L6lfJ26 g5L6G MT i:µ !',Orr > prr.c :rl 1orr LG:i;_rN •·.:I: r , I,(BOIB3 ?+ + cµqrnJGJ > I +J.J~ U}( t,on Monyq +o cou.i::runG +O L6lf126 +JJgfl '1 . rfi + c,fil111~I 1nuc,2 p1 +JJg+ flgt,· I 6D.pLCJA Of. JJ=[1l1 ' HOI~. /\Ofl CJLG bLoL '"' ll' 1:)1.;· + .l $~+: LAJ6 11Jb1IJO Ol vrr8fl2.f- :S3 ,0 LLOb086c ) i:JJG cIH Ms2 +JJG GAGIJ..f. hJJ:rcJJ .f.L:r su,q .f-J-'6 c AGLIJ1JJ61J+ , 2 qGc:r2:rou +O a.G+ L:rq Ot. +JJ6 1:ru'31JC6 :ru:r2+GL I 2 L ·dfJ68+ :i;_oL Bi1DE +O CJJ lllJGJ IRI:ill 1nuq2 +JJLOf10:JJ lJ 4:µG BGlJEGJJOfTU qL9t '9') +JJg+ BGIJbGJJOITU µ:f}J86Jl P6n 61\Gq ..CJJ9+ JJ:r 2 L6lfl89'J IDl\68.pIJGU+ bJ:..ocGqfTL68 ' J...OIT .M:rJJ LGCgJJ (ll.DllJ llJ/\ LGCGU.f. COIJl:rqsuHgJ JG++GL SGCouq: l!JITCJJ uroLG T2 IlJI\OJAGq JJGL6 +JJ'-JU JG5gJ tOJ:.llJ9J:f+'!G2 OL COU+L0C.f-8 :ru W91.l+02 BJ'31JC02 ; KfCJ..]9Lq2 gpon.i: +JJG +:wrrpJG8 91.Jq M 8.f.6 Ol +=fLJ. '.fDAOJAGq :ru +JJG 261\GLgJ J09U l 8']Cf1J 11JOL6 OL J628 8'~1IJ[TJ +glJGOfT8 '.flJl\62p:!JGD+ CC'' II.""'.' .p.IJGU+8 • · \f2]< D:fCJ( drJE,2.f."fOU9pJA +JJG pG8.j: ll/G+JJoq > Mp6U .j:l"'JJ OL lliOT,6 IUAG8.jJlJ6lJ+ pk+'.f +fl.f.'.f01J8 MGJ,6 /\G9L8 JGq na +O +J..16 t:rI.llJ colJ/qc+:rolJ + B+ 0116 caup:rUE,q J09U COU,£:L9C r. l"fl2 nu- 8].JOfTJq pG OlJG OL +t'iO J091J COlJ+LgC+2 > OnL OMU I!.C GxbcL:r61JC6 :ru OfTL G9LJ/\ L~ L8+ : OlJ +JJG DITLGJ/\ :i;_onugy '31Jq b:wcsqnVJJ Gf168+:ro11 MJJG+JJGL +JJ6L6 2cc bCU...9hl,9bJJ a> wg!I. Ol+GIJ pG gccCl.lJ.b9u:rGq Pl\. g BI1DE Gdn:r +A :ruAsa.p~GU+) • c i • I" w JO:JIJ drr.-::2+ +JJg+ +JJGLG 8JJOITJq pG 0116 Ca.IJp:rusq JOgJ,J COlJ.j:LgC+ COJ\6L:flJ1 po JJ +JJG LglJ rr.J• · bgLgfu,gbp Jrt L6COllJJJJ61Jq2 L6~Gc+:rou Ol_ JJG L:flJ91JC6 I,ffUl2+Lll. 18 LG- I JJgJ\6 +t10 op86LJ\g+:rou2 +O l1J~6 ) OU b9Lg5'.Lgbµ Jrt Of. .f. 6 lLGllJO- ltPLOCCgJJ (;'01\GLUIJGU.f. OU +JJG arrp~GC+ Ol t.:rmucG 4:0L JJ0+6J2 · .ro U:6 +O J.1 pLorr8JJ+ rrb +O qg,+:s ov IB!ill\ Il.C coIJ+gc,£:a t'i'.f +JJ B' "E gJJq ..CJ.JG S3LCJ tL6t:aLGq :i;_oL +JJG i OLJC[U8 b9L.f.A • .LJJ:[8 :f8 :ru+ L68.!='.flJb gi;q :f +- :ra f186tfJJ JJ.YTIJ}(2 lOL /1.0fTL J6++6L o:i;_ rJ5fT2+ ~O+JJ > guq +JJG J;J61Jf0 Ol_ fl[1fT8.j: BT1Df - J,OITL'.f8W ~ q HO+GJ2 1 I)G9L B:rrr r ·~ n· 2· v· •g2J.q f +O 1· D" C- SOrt33 ° JE'J .. 2+L66L > T1° W > I1JJ:!'.,Lugp·ougy L-; 11911cs eoLboL9+:fOJJ > T)GbCJL.pIJ61J+ > JGJ\GJOb!DGl'+ L'.fl.i91JC6 Coillbgu:rs2 ','.[LGC,/:OL> 1,;., · TJJ:f91.J D:f911Jouq • H V ,U"ll'v'l:Sl cvere: voo i,e:aa C Ol:lll-1.LLll-1 r o1>1DOK 8Ml I~ J.E H11VJ.IO~V r E.11-1.Vl-1.C E COH b OHVJ.10~ MV8HIVIG.l.Oli1 S2 o· c· HEVDOn Vl:SJ.El:S2. Mr . W. Diamond . - 2 - 7th September , 1965 . the request for a combined loan agreement. I believe a canbined l oan a gree- ment is a good thing , not merel y on grounds of l egal convenience and clarity, but also because i t should influence the two institutions (CPIM and BNDE ) to work more close l y together and to prepare a properly integr ated financial pl an each time. Yours ever , J. G. Beevor. cc Mr . R. B. J . Richards. f FoRM No. 26 ( 2. 6 2) I INT'ERNATIONAL DEVELOPMENT INTERNATIONAL BANK FOR INTERNATIONAL f'I NANCE ASSOCIATION RECONSTRUCTION AND DEVELOPMENT RP6RATIOf; INCOMING WIRE DATE OF WIRE: m• I ti 61 1"' ROUTING LOG NO.: ACTirn CDPY: a. DIAIIIID > 10: INFOIMATIOO ,, "' a>PY: f101: DECDDED BY: TEXT: , ; •,. I :. , 1 ,.·, .. ' ft8tNII . . . . RUiii 10 W I 11 raN Wii•H Ill ...... • • • • • ,.,. . . 14 Gr - wm AWi "a ... DUPLICATE "/ I . I, I • I 0 - ffiO) Jov() ..::. 1 t ..._ 1 ) -bl.)~C 6r-..,CA_, U August 30, 1965 Dear Jack, I have not had a cha.nee yet to thank you properly tor your very comprehensive coverage of the BHDE drama. Thanks to you we have had the insight we needed on several angles that were not easily cowred from bere. You may be interested in the enclosed letters trom Beri.ld.rane to Eugene Black ( 11 ) and Marty, on whose behalf I shall be replying. We are also indebted to you for your assistance on the j hotels question, particularly your recent letter of August 17. The attached memo from this department to the BNDE Working Party may interest you. I •hall eend you a copy ot our letter to BNDE on this subject, when it ia done. A• regards the draft Survey Mission report, I suggest you pick it up when you are here in October, since by then Paul Booz will have had time to consider any comments made during his visit to Morocco. Best regards, Sincerely, William Diamond Director Developnent Finance Companies Mr. John O. Beevor International Finance Corporation 15th Floor, New Zealand House, Haymarket London,s.w.1, England ~ RAMorton:ac. cc; Messrs. Benjenk, T.Jones,Povey,Bataillard,Garrana/Lundberg,Hanh ,•c C: l\'F'J ': :- ~, ,~ ~ : ._ : ~ C~ lon: ., J J <: 3: () ~'-:r-,:-... ~oD : 8C • ' J.1 lJ . EJJ,'.J ., J; q .I f /{..,..J f - ?G ~ G J ~ w O lJ i : l JJ I (j • _,:...,,_\J ,JH .,.·"'.'·~·)] J t., . ,J, !J . , J . •) . . . 0 ··rr.JJ i .. ... )I • ' ...1- j l't . t u . , .,..r:. q I., ~·...."~ . ·, C ... : .J: . T ) .. .. ) & :rf' . 2 OlJ r, lJG 1·~ .. (' - (: ,1 " J I .bI. l' ·- r, ;1 (, " ,n er ~l. .c J lt)J- .,,j '· / /.... ( 1 1 I' '1 I. H. HIIDh K«.lCOOt W - l'r!ID!!l• ~,-/.!I ot Hote1e 1. Br J.at•r dated Jw 30, •m bu uucl tbe :auk to o· r t on t.he pN{IOllala tbat an ~ tor 111lB'• pu-U.o1pat.10D aJmplde - . Go...,._t, '• Cai•• dea PNWI I.lllold.l1an di& llaroo ( CPDI) in t.be nuaoiq ~ hotel dllwl.opllDt. 2• Ill the OOVN of J.964, lllIB and. tbe llol"ONU Oow,_t rdMd a, ._ _,.,. t.m q-'1oll ot lllIB ua1a. . . . to NU1et proJeew 14th Iba IrC IIICl- w m,..s.. 1a .1-. • ._... wre iatUlll4 11bat * wt.111p 111 Tat,o. n.:, Ball/DC bad. ao ol>.14M\l.• 111 prilleiple to am'• ~ PIOb P"JM\9, bl&\ wa14 oalidu .-cm ,.......i. lll'NlY.\Da BIIDk fllllU ca 1"8 IIU'l'8. !be Sutt Ia1U1alat CClllld.ttee oauidmMl t.be aujeO\ • »osutbu' 24 alld ..._taw DJCa ebcNld 0G11Dln•1d tlaat . .n DNIO• ~ pl'Ojeew • AOl'll&l, . - oanoeaaiaaal., tAmlll, tald •1 . . . to..,.. ._,-.~um.aw ••>4 • pro.a.~ 111 tv inter at.I :De•••r 14. Ita 11-1t. ams . . 111.fonad. ot 'lillia le"9r DOif batan .. SDOlUN• a r.,.-1 CID diNU8lcma ld.t.h t.1111 CP.Dl a1Dce ~ T'*lo -'1,Qp. - CPlll 3. 6. CPill la Wd V 11be acn.n.m, Cal•• ON'tii.•, tile rn t1lldllr NIA& a.ld. b7 ttw•ao.,...., iut.t.'-leaa" aooOJ!CIS.Qa to tbe dnft npon ot-. x..... ~ 111..s.m• .a.t leut da DeP" ., de UDt.11 lbe NNDt OUd.•I almtt1e tlild.oll .... Ida JU•1 •tu" ot ft.UDoe, JIit. !ald..r.l. waa S.\a "911i danttt Ita N110UMa appMr to be alllOn eou.r.q e4WIIC4NI tNII the ~ and tba c.ava.1 Buk. iliboll&b b ·~ pulio ...-,. ~ llote1 orecll,, ft'GII 1"8 ft.NI hotel loen 111 1917 •W. tba elld. ot 1962 CPDI 11n aaq 11112.4 wUUon, but. 1\ vu U.. Nvl\aHwed aD4 apfll'OMd lOIIU toteU1q DI 8.8 wUUca 1D t.be DeQ 16 wtu .........,,_, lao'-1 CINClit NJII'•••• Gill¥ about 1'* of 1ta bu.S.a11a to date uct lt la pl"UIU'S.q a IIOl"t. . . bulk. o.,...,_ TN Slwft7 N1N1•, ,I I0\1q Ulat; dUtuwlt ol"lt.ria app1' tor real. wt.ate aonpae 1:1.unot DC Id.till bot.el tJ.Dlalcina, bu l"eCCIIIIIIIIDd ~ t W.. l'Cftdl~ HotelJar bl N\ apart, fNII tile otMI" opentlau ot OPIK ud t.laa~ lu fWld8 lNt ~ b;r a apecieUNd a'Wf VS.lb a hiab ...... of •tmalltr·" 4. ReClllNta tor • hotel J.oan baa CP.Dl are appralNd Iv' rr.eh upan., 1h11 Ule Cnd.it l'wier de l'nDDe, wbo an ca ,....,mt, to 1ilJe Societe dla JIDllua cl». lfa&llnb wl la taot ~ MSDJT tor CPill. Tbue ape~. rari.n tbt NCSU'i.i;y oftu.d &Dd t.lMa o.....,.t,1GII pl . . . . . r - 2 - .. bus.a .r iibeil' appl'U.Al, -,,n w I.tie OP.DI ,...,.... a ~ -1, l.t - . ~ pro.,_,. 1a 1' 1ib-. .-Oftd.a 11 ........ lit' tbe IUldev, 1JvMeol lou'4 ...S.MM M tllil C ·· 11..S. 1•1*11.. _, ..... alld daKa.-oo, . . a Qf.ft.ee aacl 1'Cllll'lae S.\Nlt. !1119 CPDI ·s..s.• C 4NidN . . . . . '° ...... G e ~ ............... la'1ulln - - · · U aU , - . to t• aauatuU., CPlK ' - - a1llla a lOIID ce11tnct, vi.Ill lu ol.Ulln. ...... 1.0-20 J'M", 111ollld'YII '*P to S ,-.n' J~ ter fS.ion S ,-n1 li1iC tor aecall4 S ,._., ~ tor , ,a,smaa .,.. (1) -ccee:1 Ni• .- •-,.nue, .. ,-p1>2a • .,.,U.0•'1• tor • loaa, of up "IE7S0~111•at.seot.,... plloa\leJ (ii} (U.) "Dn1• de ...U.aU.an, n pqable • c- mtraaa\ ot dUINrwt, 1 equl t.o Wi,oe tbe "OG8111Q1CII (W.) •'-."'1.lle" pai.4J a.....~ obarat• of 2~ OIi UIIQMct balance•. nn, •naa11 • io. doe. on ea• 1-oYablM .. ?S'S ot .....Nd cnx•a ........... -11111 ~ - - - ~ ao.na., CPDI lllad.aM 'tihat tbe eqld."71111d "POIIM'N' hDda be utiliud in \ba proJM\ bdon 1, dialNnM iu loan. u tint C0111:\Mle111 acn.u..n .- ~ tbe proJec~, 0ow1•m . . . . PQIIIDU ("ri.a\ou'DN cl'ia~") \o CPDI \o bl"1D1 1'8 1*,Clllt 11P \o 8-.3~ p.a. (U) an ~ loaQ. Pllrlber, atDoe '11M law ot 11"911ber $, 1962, *1ob Nplat.N W.a CNdt..t, Hotelier, pend.\a CPJX \o t1U11Ce 60-So;C Gt a proJec,t;, a a......., panatee ot tba .....i .1'7 1lblob \be lile of J.ou Ul!Jllda 7~ o f ~ aonpp ftl"9 la C· cnl./, -- J - •m•• ,,,,_. ~mt.t.• 7. JtollCMIDI -.Owl. . ld.tb CPD alld. t:MteaSev, o.t ft....,., lllJJE'aa uNCt-,. • • lat.YI' w •••lw b wot 1IIMt 11M 10llll tw fi.Daaoia, b.o'Ml pl'OJeo\a. JlfS vote OIi Karch 18 t.o Tabln, u 'Ullclu'- S.Onat.arr ot Sta• tor nano-, \o propoae the tol.lo!llaas (1) llillE a.cl OPIM lhoa14 botb oGDtr1lNM 'Mt~ appraiMJ. ot proJect., prod11elq a o-.. repon and cOQOluion, inoladilla an -cr-d &uciraa plulJ (U.) «.rhia aboulct 'be Joinq' n'tillS.,w \o t.ta. c....... ~ n , W ,._. 11eei,ou am ...,_4 'be ia'fiucl vl\b CPDlJ (Ui) ADI' Oo•wt uaia\allo• aocorded. equalJ¥ to bo'Ul lu\itlltieu, (auana•• ''°·) alw,lld. be (1Y) s.parate lOIA ape ...U ab.o\lld De ailM4 b.r iM Nl'J"CIIMI" v1tb w two iuUw\1.cma, wt. lib.- .\eni apq nte ot iawnet, wow.cl 'be idaa't.ioal., UCl nch *1•• M 0111118d ..1. .!{, ...v1...... dlallvNMll\a bullala1M4J JIUlE abo\Wi led fw toN111 •xcbaD• Nqw..NMllte, 11114 (v) CPIK lor looal coew, bn la "* * ot cl1.ffl.#ill.V (aoectrGaa io JIIIB) 111 ,-an} ad a at.ead»n, b\lt not neONaan.]¥ b,ipr, n• .r iAtM'eat t•r CPD'• loam. Tbil ~ 1114 ffC do DO~ v1M •m ·t o 118D ton loua. There.,._, tta.re.t-., to 'Na fuacluental d1..S..S.. of .t\mo'11an b e - . CPIK Md lll181 tbe IOJ'IIU' a.ur.1ag oaavuct.t..• a\ IP ,.an at. abov.t ~ s * 2S l&t'lier tiuao1.q ttqld.pr•• a\ up to aNU 12 '° ,-re •t 7f,. U W.. 1a • oe ao, CPDI al SIDI MOllld ..n.in]¥ - ~ ' - jolll\l,y 14tb • cllat to "\abliah a •1""8, ..... t1.uac1ng pl.a, Alid . - a .1cd.a~ pl'HallU.\1.aa k ta C..S•al• Jlcnel.1en, IMlt it J1119\-._ olar \bat, tit.1119 o f ~ lOIU an ao\ w be MIIDUcal. c., - ----- I - - ~ ~ g ff - 0 Q .. E >- c+ .'~ 1 1 &;''J If~ '.l. '' J Jlf ·,r:(C:! ii. 1~1; =1' . J,rilftl[i:li Jt !! I 'jif5'f (,1. ~ '1olf l: !ff._!~ :,rr o lf! s 1 .;'!if )fiJ:a; 1-1 .. f !,~f .. ~f.1_u_ J\! J~ at; ii~:~:!!l•'~Jf ~ ., '-~ ..fl:~ .. let t, ~•tJ . !'I itr f . I .! _ · l!-&tf I &1 'i~ f ~r, '• . a , t,s1 .011 f ~ t''5 .. 'fi ,llo ,1. lr'~U1: '" of 5"~ • \I\ ,.,....l . 1~1'ir C i.: ,:a. Jsof i;:~: ,.,, •; f ala a • ~ ' -~ ti., • ! .a g: el=- c+ i •[.~Jt .1 ;., .. ,1,~•~ij1~ ~tf 8 J~'i 0 3.f 8 I: f f ! fi ' .. 8 ..,., sr ~ ' fl:'tl - cf' IS " • i " '" : . i'Uj t~r~t,& f Ji .. i'I :·~1 i-c, Q ~ r~ '[i . i n i ~ (~i~f ..:: i f .c+· f} t''1I' ·~ tf :, i. · 1 o O . il- l;' I t. ~1·lil~ -.~!'et i § i 12 f ., -''° Q ~~f~o• . II i-;:.!d It i t I~ ... C ~ ia ;~ ~r£ e a .. ... cf' . ~ _ ~ r.:.l t. ~ Je t:. I • ~ .Record Removal Notice Archives Th• World Bank G.-oup & Re cords Management File Title Barcode No. Banque Nationale de Developpement Economique Project [BNDE] (04) - Morocco - Loan 0660 - P005356 / Credit Immobilier et Hotelier Project (01 ) - Hotel Financing - Morocco - Loan 0704 - P005359 - Negotiations - Volume I 1697585 Document Date Document Type 24 August, 1965 Letter Correspondents I Participants To: Mon Cher John From : Abderrahman Tazi Subject/ Title Mission to Morocco Exception(s) Additional Comments The item(s) identified above l1as/have been removed in Declassification revi ew of this record may be initiated upon request. accordance with The World Bank Policy on Access to Information . This Policy can be found on the World Bank Access to Information website. Withdrawn by --- -- ---------·- - - - D;t~-·--------- - ---·--1 Chandra Kumar 24-Mar-l 5 I -----'----------' Arc hi ves 1 (Augu st 2014) HE.,:...OQUARTERS : WASHINGTON 25 , D . C . INTERNATIONAL FINANCE CORPORATION TELEPHONE WHITEHALL 3886 / 3887 CABLE ADDRESS : CORINTFIN LONDON SWI LONDON OFFICE: NEW ZEALAND HOUSE HAYMARKET · LONDON , S .W. I 17th August , 1965 . Mr . William Di amond . Director , Development Finance Companie s Department , International Finance Corporation , 1818 H Street , N. W ., hia shineton . D. C. 20433. U. S . A. Dear ill , 1 orocco - Tourism . Ref erring to our correspondence in July , I mi s sed s eeing Bolin when I was in Madri d on July 23rd , but I enclose a copy of hi s letter t o me of July 22nd. Although the World Bank ' s Survey Mission Report on Morocco is not yet published , I hear fran Johnni e M iller that Paul Booz i s going shortly t o Morocco t o transmit the final copy . You will no doubt have seen I the t ext or can get at it , and it would be interestins t o see what the 1ission in fact recomnended about t ourism , as mentioned in Bolin ' s l etter. It would be he l pful t o me if I could have a copy of the entire Mission report , not mer ely the tourism sect ion 1 before I o to the next BN DE Board Meet ing in November. Coul d you l ay hands on a t yped copy f or me , even though the published print may not be avail able for c;:i. lone; time t o come. As -Bolin says , that the real solution is t he establishment of a stron Credit Hotelier and that the M i ssion is recommending it; this fit s in with the observa t ion in my letter t o Marty that the Bank and IFC should be discussing with the oroccan Deleeation at the Annual Meeting what help can be iven in creating s uitable new institutions , t hough in t hi s case it i s a matt er of strengthening rather t han creating. Yours ever , Sadc U Enc : .. ~ · . ~ .; J . G. Beevor • . r:uc : rl • (; • 866/\0L • llHj:+6L Ol 2+L6UL+JJ6ll:rll' ~ L'J+JJ6L +}~JU CLGr:r+:ruL • P6 '-1:r /\GU :ru CLGs+:ru 2n:r +gPJG 1J811 :ru2+T -i:n.p01.12) +}JOflr,JJ :rll +JJ:r2 cs2c :r + :r2 g q:r2cn22 . uL 1":f +JJ +JJG w01..occg1J T)6J6i,s.i:1ou 9+ +JJG vuungJ 1 J66+:ruL t1}J9"+ JJGJL C'JlJ :rll t·11+}J +PE'" op26L/\9.poll TU ui\ J6++6L .;::o ~·gL+' +JJg+ +JJ ~J<.'. LTU+ W9/\ lJO+ JX; ',:f/\9TJ9pJG lOJ, g JOlJb pIDG O CQ'.J6 " ,.>0sr..,q ',IGG+:ruC :ru W/\61.UflGL" conJq Aon JOL+ au ;,,iOLocco ~ 2 wG o-l:. •v1yi\ s:::,uq· t'lp6U I 1'\':12 Tl. JS.0,Lf(J OU 'lf1J/\ ~31.,0 l rr 1.- 1 €,11(., T026 CJ co.u:\ Ol JJ:r 2 J6++6L +O :j(,:fGLL{lJ. -i:o OflL COLL6200UC]61JG6 :ru 'lflJ',) I U:=f286CJ 2G51IJI{ 3(.>J=flJ n O f C O \ JO , 9c:L:riJb.j:OJJ ' 1) 0 ( . ~rrtn• JPJ~ '' c.;JLGb.j: ) •• · • l llJ.j:6LlJCJ.j::fC.:lJ':JJ J ~ UYlJC...6 CQL.lJOL'T.f.=fOlJ l I)6Af; ro' h 16U+ LPJ~UC(, (,OWD9U=f62 1 )GD'JL+11GU+ ) D.LCC.j:OL~ ,·,L • I' :rJ J ~ 9Ll TJ::f'.11 IOlJ(J • HVAWVl:S 1<'.E l. · ro 111 DO 1,r 2 'M' I MEM SEVrY III D HOn2 E r0 "1D OY1 01:. 1:. IC E: . .L Er EbH 0'1 E MHl.l.EHv r r 39 9 e \ 3 88.\. c•sr E voo .. Eaa : C O~ l"1.l.UJ,1 r0 "1DOIII clMI Iv1 J, E Y1VJ. I0Y1Vr h I:v1 v1CE C Hh0I:SVJ..I0Y1 MV2H I Y1G.1.0i.1 s2 · o · c · HE o on .1. ~ 2 : J '"-/ r ·-· ~ : . . -~· . ~ -·-u- ,. ,, . ! •. .· . .:., ~;;·· . i• : . .. ~ .. .uoctor .11'lem1ng l, ·1· el.~ 259 1929. .Madrld 16. Spain. July 22nd, 1965. John G • ..oeevor, ~~q •• .riotel ititz, J1D.adrld • . My dear Jack, ·.1.·hank you so much for your letter of the 19th. What a plty I am golng to mlss seelng you, again. 1 leave for ~edn at 2.10 to-day and wlll not be back untll to-morrow nlght, or saturday. lt ls klnd of you to ask me about Moroccan hotels. AS you very properly say ln your letter to Mr. Dlamond, lam not an author- ity on the flnanclng alde, but l do agree with all you say. 'l'o my wa ot thlnklng the real solut 10n ls the est aoJ.lshment of a strong ~~~dlt Hoteller, anct th1s 1s what the ..b~ 1s advoca- tl ln lt ort. ln ~paln lt has worked wonderfully, though occasional.Ly 1t was short of t'uncts. .1.ncldentally, the u.u. people at t ne J)IDOassy here• ~hen john J..oag e was .&110assador, repeat ed.ly of- fered c:ount erpart funds to strengthen the ur~d1t I s pOl:l1tlon, ln the bellei· tnat more hotels would help opa1n to develop 1ts tourism • ..i.Jlck AJ.rld.ge remernoers thls, .L am sure • .L do not know, or courBe 0 wnetner the ..oank cou.1.a. provlde the · .. 0ov<:)rnment in .iia.urocco, or ..o.~ • .u.~., w11..n funct::i i;o nourlsh the vr~- OJ.li .iioteller wnich must be set up in that coi...ntry, but that mlght be a solution. The ~~.L.1111. naw not done much, up to now. lam sorry to know that ..oenjeloun may leave _.o.:i.-. • .LJ • .ts., but .L thlnk the new .11.1.lnlster tor '.l'ourlsm -Ababou, lf J. am not mlsteken· he was Royal Al.r Maroc's secretary-general- ls a much better ~an than h1s predecessor. enclose a copy of my observat1ons to tne cnapt er on 'l'OU:DliSm J. 1n the ..o~nK 1 report; you may llke to Sde lt. Al.L best wlshes to you and. Mary. ~ec111a arrives next aunday Yours ever, ~;._ •w ;a Lu 1;:j A, D G~-"f1 . ', ~- From L.A. Bol1n 1 Doctor Flem1ng 1, liad.rld 16, Spaln. ---- - - -- - -- Not es and Observat1ons on Chapter VIII 1 "The .Internat1onal Tour1st Trade,• of the Conf'1dent1a1 Draft ot the world .Bank• a Report on lrlorocco • ... ---- ..... Chapter a, p. 1, par. 2: Llne 3. :, Insert •ancl central" ~ · after •northern.• · · L1ne 5. Del.eta ttbut not hot,• or wr1t e 1nst ead "though hot 1n. • parts of the c.ountry." In morocco, 1n summer, once ·you move away from · the sea lt can be qUlte ,not. · .,' .- . p. 3, par.12: F1nal llne. 1he •paekage• prln- clple, lt' applled to large groups should not be extended to hotels that are hlghly graded. It would drl ve away vlsltora who do not care what the spend but object to large · groups, usually no1sy. p. 4, ,par.16:: Lines 7, ·e, 9. The uru.t for reckon- ing hotel bulldlng costs 1a usual.Ly a room, not a bed. .At the Rabat H111;on -a luxury hotel- the cost of a tw1n- bedded room wll.i be more llke DH 00.000 than llke DH 40.000, and thls does not 1ncludelt crockery, glassware, s1lver, 11nen. and landsceplng. : p.14, par.47 . L1ne 5. l thlnk 1t would be better to refer to thls comrn1ttee as an •1nter- government consultatlve and 1nt"ormat1ve cormn1ttee. • Xh1a ls wnat lt should be; nothlng else. I ! 1t assumes executlve or even a1rect1ve powers, ana- ·tb.1s rlsk 1 ed 1n the flr{;it three llnea of 1a 1t:npl. par. 49, page 15 -*the department would act aa secret ar1at for ~hat comml.ttee•- confl1ct and confus.1 on are '·'bound to re- sult. The departraen'&, a hlgbly teeh- n1cal concern, should act as outllned 1n the three flnal l1nes of' par. 48; page 15. p.16, par.51:· Last llne but one: the word -take• - .... . should be "make. • .......... July 22nd, 1965. FORM . 30·. · \. I FC ( 1.65) - - INTERNATI ON AL FINANCE COR PORATION Dat~ .., ~ '2. "2.. 0 .., .. ROUTING SLIP Mr. Arango 94-9 Mr. . Lundberg 1 972 Mr. Assimakis 933 Mr. Luzny 952 Mr. Bakker 982 Mr . Malone 94-9 Mr . Batai 11·ard 981 Mr. Mathew 94-9 Mr. Bel 1 976 Mr. Mon sod Mr. Bose 958 Mr. Morton 958 Mr . Cash 981 Mr . Mustafa 939 Mr . Castle 982 Mr. Navarrete 972 Mr . Chanmugam 94-1 Mr. Oberdorfer 938 Mr. Cohn 981 Mr . Parmar 909 Mr . Daj any 900 Mr. Paterson 902 Mr . Dewey 920 Mr. Per ram 920 -~ Mr. Diamond 950 Mr . Prado 94-2 Mr. Di 1 lard 933 Mr. Richards 976 Mr. Dodd 94-5 Mr . Rodriguez 930 .. Du Pre 902 Mr • Rosen 900 ..... ... . Duvieusart 920 Mr • Searle 923 Mr. Elms 909 Mr . Sekse 952 Mr . Enthoven 933 Mr . Shin 958 Mr. Ettl inger 958 Mr. Skillings 950 Mr. Ewing 94-0 Mr. Su 957 Mr. Farbach 974- Mr. Thomas 949 Mr . Feige 94-5 Mr. von Hoffmann 910 Mr. Franco-Holguin 930 Mr. Wells 968 Mr . Garrana 969 Mr. Wi 11 i ams 965 Mr. Glynn 976 Mr. Wi 11 i amson 916 Mr. Grayson 920 Miss Wolf 939 Mr. Gustafson 958 Mr. Wyeth 958 Mr . Hilton 94-5 IFC Files 236 •tr, Jeffries 957 I FC Leg a 1 Fi 1es 968 ~ . t\ I Kapur 933 I FC Ref . Library 904- Mr . Kirk 923 1 Mr . Kneip 933 I 7AJ Mr. Labouerie 923 \ /J ~ v Mr . Lis 1e 982 £))// . h Mr . Lord (Ena . ) 94-4- (' )'I{ i' J/~ v V Mr . Lord (Leaal) 969 ~ Ml\ . I /) Remarks: / ' .T / /· From: I FC Files, Room 236 3 ~ t{t \ ~ HEAD0UARTERS : WASHINGTON 25 . D . C . l Jf/JY INTERNATIONAL FINANCE CORPORATION TELEPl- 'T . r ~- -r r r .f" 1. r r r r .f C .r -r ,f .r ," ,r r r ) .. T ' ' r r ! r .f. r ' ,. i ·, t • {) ~ ',_l J ,_,• ;."I f\ \/ r: i./1 .; r : l"··' "l,.•'i,1 "_t. 1,, 1 -:>d d - 2 - Generally on the tourist prospects in Morocco I am sure you will be referring back to the tourist section in the report of the Bank Survey Mission of 1964, though I understand that the report is still in process of final clearance with the government. But one point may be worth noting, t hat the chapter on tourism is probably much condensed from the detailed draft report prepared by Bolin, the tourist expert on the mission. You might find it worth while to refer to his first draft of August 14, 1964 of which he gave me a copy privately because I was a Director of BNDE and I wanted to have his unedited view . I know him well and when I next see him, (he is back in Madrid) I will be glad to take up any points informally which you may think worth raising rather than do it officially through Bank channels. On the other hand he is of course primarily an expert on the promotion of tourism, not on the financing side . I suggest that in Moroccan conditions, with a limited range of local manufacture, the foreign exchange cost of a hotel will be a substantial proportion of the total; in r ds almost all the cost, apart from land, site clearance and bricks and mortar, other wo- will have to be purchased abroad in foreign exchange. Presumably any Joint hotel financing by BNDE and CPIM will involve BNDE financing most of the foreign exchange and CPIM, who I expect have no worthwhile foreign exchange resources, providing most of t he local currency loan. I suggest that this is a point which you could usefully study, as regards the principles of joint financing by two institutions with different currencies at their disposal. It occurs to me that our good friend Gilbert Pierre now in Paris who studied this question and jointly signed the letter of 18 March might be able to give me some further thoughts and I will try and get in touch with him. I am sure, if Bolin's optimistic though cautious forecasts are correct, there is a great future for tourism in Morocco and this is an important field for BNDE. I would particularly call your attention to the· section in Bolin's report dealing with the location and density of hotel accommodation in the various regions of Morocco and the areas which he considered most promising. This information is contained in the appendix immediately following page 46 of his draft report of August 14, 1964. Do not hesitate to write to me further if there is any information I can try to collect for you. Yours sincerely, ~~ · J.G.Beevor Dear Mr. S.vora 'Xbe BaDk baa received the attached letter trca mmE da1eribiq a propoa&l tar Joint tiDaDcia& ot hotel proJeota vit.h " - "Caiue dea Preta Imob.tlten cm llaroc" (CPIH). Aa ,ou will ... , Mr. Beqaloun . .timed · t hat this - . diac\WNd at, the laat wo llIDE Board Meetinp, and I aa taking the liberty o~ aaking it it u poaa1ble tor 7ou to tell ua a little more about thoae diacuaalona. W9 ahall be diac:uain& thi• propoeitiaa 1n vorkina parv aoon md aball be dallghted to baTe &113 :s11ch intormation tran 7ou together with e.ny thoughts ,ou may haw on the subject. N. H. Hanh De~l~pm.ant Fina.nee Companies EDoloaure Mr. J. o. Beevor Intemation.al F.lnano• Corporatioa 15th noor, Nev Zeal •nd HoUN Ha,11arket Londcm, s. w. l, England RAKo~ ~ cci Ciro. (2Y FORM NO . 59 .,. ( 2- 55) I'\.,/ ~ , CROSS REFERENCE SHEET COMMUNICATION: Memorandum DAT ED: July 7, 196.5 TO: Files FROM: M. P. Benjenk TILED UNDER: Morocco - Loan 32 9 MOR Adminis t ration SUMMARY: Morocco: Visit of Mr . M1 Harnrned Bar gach to t h e Bank Excerpt: Bank financing of Moroccan hoc•l• Mr. Bargach raised the question as to the possibility for the Bank to finance new hotels in Morocco by making loans to the Caisse des Prets Immobiliers du Maroc (CPIM) which is an institution set up for the financing not only of apartment and office buildings but also of hotels. The Bank representatives explained that the Bank had for a long time been reluctant to make loans in the sector of tourism, butthat it had finally agreed to such investments being financed out of the Bank line of credit to BNDE. The Bank had felt that tourism could be considered as [ an industry and was well aware o~ its importance to Morocco's economy. \ In view of this development, it was not clear to the Bank why it was necessary for a different body, the CPIM, which was mainly concerned with real estate investment, to step into the picture. Any investors wishing to build hotels could have direct access to BNDE. Mr. Bargach replied that the CPIM was more specialized in the hotel business, whereas BNDE was inexperienced in this field. Perhaps a system could be devised where BNDE was authorized to lend to CPIM, which in turn would relend to the clients interested in investing in hotel building. The Bank representatives replied that they would have to study such a new approach, but that they had doubts as to its feasibility and usefulness. :&)~ 3 ...1v 10u.1Ur RABAT , LE 30 Juin 19.65 . Banque Internationale pour la Reconstruction et le Developpement CAPITAL 30 MILLIONS DE DIAHAMS 1818 H. Street N. W. BOITE POSTALE 407 - RABAT -T E L. 264 . 41 . 42 & 43 ADRESSE TELEGRAPHIQUE BADEMAROC WASHINGTON 25 D. C. (U.S.A.) DG/RT. n° 78 \ , DIRECTION GENERALE Messieurs, ' Nous avons eu l'occasion d'evoquer avec vos representants la possibilite, pour la B. N. D. E., de participer au financement du credit hotelier. Cette question a fait l'objet d'entretiens, tant avec le Ministere des Finances qu'avec la Caisse des Frets Immobiliers du Maroc (C. P. I. M.), competente dans ce secteur. Le Gouvernement avait demande a la B. N. D. E. d'envisager des financements conjoints avec la C. P. I. M., celle-ci couvrant la partie des prets donnant lieu a des depenses en dirhams et notre Etablissements couvrant la partie payable en devises. Notre intervention, qui est d'ailleurs prevue dans le chapitre du Plan triennal consacre au financement, devrait, bien entendu, etre imputee sur la ligne de credit de la B. I. R. D. Au cours de ses reunions du 30 octobre 1964 et du 29 avril 1965, notre Conseil d'administration a brievement examine cette question. Par lettre du 18 mars 1965 adres- see au Ministere des Finances, dont j e vous adresse copie ci-joint, nous avons esquisse un schema de finance~ nt conjoint B. N. D. E. / C. P. I. M. Recemment, le Ministere des Finances nous a fait savoir que la principale objection au projet soumis par la B. N. D. E. · tenait a l' obligation faite a l' emprunteur de conclure, pour une meme operation, deux contrats de pret. Cette procedure entrafnerait des formalites supplementaires et la necessite de mener des negociations avec deux etablissements a la fois situes dans deux villes differentes. La preference du Minist ere des Finances irait vers une solution dans laquelle la B. N. D. E. refinancerait la C. P. I. M. operation par operation, sans conclure avec l' emprunteur . un contrat particulier. Le contrat entre la l' FC,.. JV rn, (: ,.." ' I Ir~ T CO,ii ,Lir:1C ~;i :ris n· r·· 1 h!I u "' 7 . t!. I j · ·J ' .,'t.. ./\.• ' \ (' ., ', \} - '\ - ,. 1.J .. . , ,. l . (; T, 'J l -r; '• . ,, ~ ·' '- ' \ • ,- ~ ·, -; f" 1· .' V ,r T' .. ,. ,.. . -, . ~ B. N.D. E. 2. C. P. I. M. et le client assurerait a la B. N. D. E. et a la B. I. R. D. les moyens de controle dont elles souhaiteraient disposer. Une telle solution est encore actuellement a l' etude dans nos Services. Mais etant donne que !'imputation de ces operations sur la ligne de credit est une condition essentielle de leur mise en oeuvre, je vous serais reconnaissant de bien vouloir me faire connaftre votre point de vue aussi bien sur le principe que sur les modalites de ce nouveau type de financement. Votre reponse nous permettrait de reprendre les entretiens avec le Ministere des Finances et la C. P. I. M. Pour completer votre information, je vous adresse ci-joint, un exemplaire du proces-verbal des premieres conversations entre- prises l'hiver dernier avec la C. P. I. M. ainsi qu'un exemplaire du regime du credit hotelier au Maroc tel qu'il resulte du dahir du 5 novembre 1962, Je reste a votre disposition pour vous fournir tout autre element d'information que vous souhaiterez. J'adresse copie de la presente au Departement des Banques de developpement de la S. F. I. Je vous prie de croire, Messieurs, a !'assurance de mes sentiments de consideration distinguee. / Directeur General M.A. BENtELOUN, Mr. W1U1aa Dl.eacmd J\IDe 9, l965 N.H. Banh "fJ KOROOCOs La CaiaH de Depot et de Guts.on The i'ollOV'iAg exc•rpt trca the Bank'• •conOllic report on Morocco dated. Karch 14, 1963, deacribee tb8 cbaracter and role ot tba Caisse de Depot et de Oestion: "La Caisse de rets !mllobillers du Maroc '' is confined to ci-vina ..U.1,11 and lang-tem o.-.d:lt• tor buUdina and oanatructicm. Altbougb ot miY..ed omerahip, sine• 1960 it baa been ,aanapd by thl public iut1tut.1on, 1'1.& Cai- ct. lllpot et• Oeetioa", The latter 1nat1t.ut1on ha.a tour aajor functions giving it a central place in the Moroccan capital. ll&l'ket. J'int, a nlllt.r ot inetitutiona are oblipd. to and otben have the opUon to depoait tbair t\mda 1n La Cai•• de Depota. .MaOn& the 110et illporturt. or t.be torMr tn,. 18 La Cai••• d'Eparpe Hationale and aona the latter are retiraent, corporative., aDd •utual MVi.Dp t\anda. Second, La caia" de Depota ia entrwrt.d with the financial aanapa1111\ ol a larp amber ot apecial tunda 8\ICh M the Habou (rellgiou propert7 tund), the Rational Social ~urity Fund, etc. It al.ao unages the National Ret.iraent :rand - and.~ Fond d'lquiJ••nt eo..unai, which fina11Ce Mavest.Mnta uct. by- local govel'111191ltal authorities. 1hird., depoaita are inveated ill Oov•l'IIIICt bond• or lent. on abort-tera to the TreU\ll'7J depoaita an &lao ued to pllJ"Cbue shares and bonde. La Cai.aH alao bu the ript, to participate 1n public and llixed enter- prise•. Some of tho more iaportant panic1:pat1ona are in La CaisH de Prete Imaobillera du Ma.roe, BICE, ad Maroc-Touriate. Fourth, La Caisse de Depot• bu eatabl1ehed a apeoial apnoy, vh1ch re-Iii1ure1 in1urarace 1aaud b7 ce11111eroial ina\U'Ulee oaapaD,iea. Thua, La Cai.see de Depot 1.a in a key po1itian to play & d)'nallic role in prcaoting in- veet.aent ot illportallce to Moroccan econoa1o devel.opNDt. ESekNtedl !/ La Caiaae liationale de traitee et d'iaeurancea created in 1959. ecr t iro · on ieur le cm.o- ~ • t "•t i nces I • 0 1 C-.:.: ._.nt. ,. e. 0 6ra.t i n hOtol ier .- .o ie .. l e . iini s tre , . ~ cette it .e our artio1 de 1/ - le 1'i t · 2/ - ./ • 3 / - ...:.n trois i lieu, la ossibi1ite d ' obtonir Wl ret'i ce- ient o devises eat int re to our l ' e oo . ble de l ' vCO 10 tnarooa.ine . d .d . o ulo- 'V' s s e rvices c f onue d ' un c te- r e •• et porte a 1a. conn 0 l c •• I. , . e cette ha s a ire n ece s elon oeuvre un, _ r :ala.b~ o , ne vent ori enter no er.ions l a. c de c dits ort nt G es fonds , ' c · i on . . l oat en o b1'3 de l ' op ; ,tion , que :rie ce ec no..1 ~ 1 -u.e at t i · t t tc l ' o u. .irl,vao f vou.r ~o ... oil q; e notr e et t octobre "llo a et 6 Boctl.e o t l· OU8Sa. , d Dep t . nt . • , ..• • ., l rs e roe l o nove ./ :; . demi.era onsiour ouea" av: · -t con id re 'e1le poui·r t tra soumise· la Danqu.e Internationale eur · se d •u.ne 6tud e ,eral.e fa.:l.sant reo ortir le pou.roent e oyen de cl' en e , an dovt c.1,a dans le rea.li .::.t1one h~to.lieres a.u .1 roe . o; - re.it me,nee oonco t de c;on a ,arven1r u.n. r la • .i: . lJ . ~. ot. la ort co . un. :os deu.x or ani · e O.tU'ont d no une conclusion commune et noti ent d exminaront un la.n de finnnoeme-nt, L 1 tude conjo1nte et · e conol , eions seraient al.ors tr smis. a a·u. .uini·t ... re de inances. o/ - .we 1niat" r des i' . oes exe:t"ce "" tutelle sur l ' op r - tion conjointo a.ana le · m3mes conditions u'au r vant . La • !I . • · • aerai t . eJ.ae i rticiper ~- la ot , . ss1 n des r3t. s hOtelier , non seu.le t pour los op6ro.t1ona ui 1 . concemo t ., is de r e _ G~noe ou..t' t oute le.a operations f i n d ' ccro:ftre s on ea» i nee an renant conn s ance. dee d oasiero cle la. . P.I. · • tie de 1 1 ·t t, le c eoheant,. ains:1 ue toute utre _, r. tio, beneficieraient pari osu aux: deux organis- er 1 t 6t );t donne 1 'in i V1 aib.111 t du :ri que • . I - ii y ura r oontre deux n cons uonce, l • . I> . •• d ' a:1.J.l urs , lap oo dure du e e credit e la .I • • • 1m 11 ue n un e tre a . .... . ot le cJ.ient . 7° / • L .a •.1' • • 1. et la ., • • I.• .• a.ppliqueraient lea rtl' es oon.ditions do t ux et do dureo Wl oliont . o nn!S. outre. il , u · tro.1 t tile cPh :rmoni"'&r, pa t-3tre d 'wu.f iol', dans u.ne cart · ne e, 1 a cl e •t.yp& de c ntr ta C. • I.. ... t . 1·• • ; • : co s .;ions d i ve?'ae , f lite d •1xwcr1 tl. n dea ga. tie, s, r c., :Ure 'bloc! des :fondo. proo 2tlure cont ntiouse • . / • 4. Wl · J.a l ne de ces rincipes, une eanoe ' ,. ~ ,.c:;! ,\.: ,( --, I G- . ., r• .,. ....,r I. !JJT , C <• ~u J, ' l f l' q r ) ,, ... r ,. ., l , (; r .; 'rl ·r c:: ,.r ( ... r • l,(,P' DLO.lt..[yl .J . J ~~ . u .. ,..... 111 ' ( poqA 11ro r.· • rc11 · . ~ E'",G ~ C: • ,.t - 'l ..... , .. c:!0 ::, '}/J "T ~~ c1iJ .' ;wlld J.. 6 -•• . .L , J...,i{ ...... "J• " 'JJ1 I, L, ,. , , ., f ... , ~ ,l, J, ). } ,, :JC . JJ "~ r ~ ' 81, ]< ... ~ I >.• L ,•l, _, ' _; ) , (' [ ~ L_j{; f., ;• .... l"'t ~! 'T . T l. ' ·. 1,t, " ,J l • r UJ >. JG '1a ~ . •l (;;.>,., r .; !, ...,. TEXTILB HOUSB S. SARDA M.A. (CANTU),, P.O. BoX 410 DAR ES SALAAM A, M. AM, Soc. C. E., A, M. I. Sn.ucr. E., M. I. S. E. TANOANYII.A CONSULTING BNOINBER ftUIPIIONII : Offl(S 21156 REIIDBNCII 21866 RD NO.~Q_lQL§-1~ 28th December , 1964 . ~ - R. A. Morton , Esg. , International Finance Corporation , 1818 H Street, N. n. , V'lashington, D. Co 20433 , · .U. S. A. Dear Mr . Morton , / I thank ~rou f'or' your letter dated 17th December, 1964 and p l ease be not hesit,mt to write again on any information that you may require rrom this part of the worldo If' :possible, please do send ne some literature on Interna tionel Finance Corpora tiono Vi th best wishes f'or 1965 . Yours Sincerely , FORM NO, 59 ( 2- 55) CROSS REFERENCE SHEET COMMUNICATION: Memorandum DATED: December 23,1964 TO: Mr. Diamond FROM: Mr. Sekse F1LED UNDER: Morocco - Loan 329 - Administration SUMMARY: The fol l owing is a summary of an article in "La Vie Ec onomique" of December 4,1964. The presentatiot). is that of a conversation with Mr. Lyazidi, President, and Mr. Bengeloun, Managing Director of BNDE. EXCERPT: Tourism 9. Tourism, which was haraly talked about or disdained two or three years ago, is now considered of fundamental rpiority in the new Three-Year-Plan. The change is t o a large extent attributable to BNDE's efforts in this field. These efforts have partly been ca ried out by BNDE itself, partly through its tourist promotion agency, the SOMADET. BNDE has cooperated with the Omnium Nord Agricain (insurance company) and with the ~aisse de Depot et de Gestion in this field, and has also established, t ogether with appropriate public agencies, the SED~IM company for studies and land development on the Mediterranean coast. When called upon, SEDLIM will participate directly in the realization of its plans. 10. The work done through SOMADET has already borne fruits. It has rsssisssrl resulted in the construction of the two • tvacation villages," one at AlHoceina, one near Tangier (Vi l la ~_arris, in cooperation with the Club Mediterranie and the Club Europeen the Tourisme, re~ctively. For the wbmnedia te future, another such establishment is under constructioi: on the Mediterranean coast, near Tetouan, in conpeastdmn with the Caisse Francaise des D e~ts e t C ns i gna t i on • b "f,6 c. ·'-' ~ ').. ' - 7 0- '' 'I.A~ t\ \ Mr. H~ A:. . . .1oe D:l.No1.or General Banqu. bUooaa pour i. Deqlopp•ent GIIOlliq• Bo1te : p ~ 4 1 Rabat, M&J"OCCO Dear Hr. Benploas I aa vr1'1Dc t,o ,w. vit.b retenac• ,o the qUMUCll 10• raincl wit.h ll8 in Tolqo abou\. t1!11Dcina ot proJ94ts irl the t1el4 of toun•· What w NMI \aim vu. I belie'YW. \bat, . . 'WCNU haft DO objeet.ian in principle \o BlrJJE •tariq into tb.i.a ti•ld, u4 &lao t.lUL\ 't.ba W orlcl Bak would be pn- pand to ccmaidar proJect.a 1or lloiel ocut.ruotion and ~id.plellt. tor tinmcinc under iu loan to • The W OJ!'ld. Bank' e approYal of a parUculu' cue oOllld., AO'IMwr, be .a.a. ffllly • the bu1a ~- . of-. Mdu of-. -,.itio _.,41 'l'hia at.atlllent. ot our poaiUcm still appliu. Lat•• add th&\, u iA ihe cue of iQ4u.trial. project.., • would expect, project. iD tbl tial.d ot t.ouriaa to ott.r &oocl pru,-eia ot mak1na pratita. p1.n, u in the cue of iwbaatria.1 proJ•t., we vow..d atta.ch grnt illportanee to th9 -.ped.ellc:• and c ~ • t4 \be JUnaplNll\ ot JWV tCNriat. enter- pri.au. • would aleo upte\ pl'OJ"ta 1D 1hia li..U to hav. a reuCJDablA pl"OpOl'UGD ot ~v capi\al., •• t.bu __,are-' alCUIIINred in lbAt 1Dcip.1ellt at.Apa 1d.t.b WO buv a dab\ INrdell, and 90 \bat ff«li\ore are adiaq11at.ly protecHd. Ia t.iJa a••• of b.otel project.a, untanaa"1.)r, there 1a a t.eradeacy tor the de'b~/eqld.'ty rat.io to be danprouaq hi&b• None ot t.bNe poillta u MW to 7011, of eoune. I JND\icm. t.ba menl.7 to highJ1gbt aCllle or tbe t.b111p vb1.ch vow.cl be ot apecial canaem \o u il • were to beecau iDYolwd in tiaanciJI& ~ i a t proJecta. w e ba'" no uperieace in W.. field and we vow.d ta.nton awroach 1, with pea\ ca.U•., bearin& ala._, in Jlincl t.bat t. \o\U"'J.at proJMt, 1a alvqa i.JaUa.a\eq dapaaan~ cm. ccaplaMD1iar.f 1Dveatllmt.a b7 ~ . Fraa OIII' pnv&l lmovadp oS tbe eubject., • would. want \o be pa.rticularl,- caref',u in u••,,•ln& ti. need tor cC11:PlllNntuJ' illvNta.at.a, proti.t.a'bUit;r, ll&UpllUlllt and. capit.al str\lCture. ID Tolqo 1'JU alao J"&UN a. amwllat, special s\lbJeet, iaYolvi.Qa tho t:J nanoiog 0£ cel't&iD luwi dawlopaeat, ~ . OD. tu lwctit.rranam coast. N• aave 41UlUMd that 10ll had 1a a1Dd tM SEDiilM ac_.., an4 w bav• a,udi~ vi.th Feat. 1nten•t the Npon an W.. pNject vb1eh ,ou aada available w tho Jlieaion t,hat,. wu 1a Morocco lut a,1111aeu·. Tblre is littl• doubt ~ .. \1· " J r'C t lVF.D r.;::, : :" I I_ FiU: S ,... ' • '"' ~ - t ... • ... V .,1,, 1, i., J 1961, ". .r l J - 2 - tbt.\ U. dev.i..-t. of t.ov1• 1n Mol'Oeoo u a aat\llr ot h1ah priority, aJ.ld t h e ~ Uld eq\llpfllna ot cenala parUolllarq sld.ubla a-...• the coan appear t.o N d.eair&bla. .1, tar a. ' - •rld Bank a.nc1 Il'O are conc•med• bow•ftr, ~ pPQjec\s vhioh u. upecMd. 'k make a &ood prcati~ VS.U be coui.d.eNd ror tirwlciaC, d4 we wo\\l.d expect that BtfDE would app~ Vie .... critericlD foi, it, cnm iaffa-..w. U Iara correct in -, llllder•t.ancUa, taat tu sm CClllp&D7 vUl be o.perat.1Js.i an a non- profit, hui.a, I ea vtr:, ciollbthl wba\ber '°" voald want aD.E to tau 1\ oa. Then aq, ot coVH, be proj ect.a otber than 5.EDl.IH in tu field ot land, a.evel.O,pMllt for \ou'bt t&d.li:Uu wlwl• a,POQaors do DO'\ ru.oUDCe pro.tit•aktna. U ao, • ahcNlci be al1p"'1 . 1.f 10• vo\Wi lat ws lmolr about; tlla. W e will, ot couree, con.ider 4t&Ch eue an its oa merits. ~ general r•arll. In Yarioua comtr.l.es, specu.l illcent.1-..a ha.ve been given to t.bAt CDnat.r\lct.i.an ot tourist. tacillties, ineetivaa su.oh ae 1.ov-intere" loans, tu holidqs and out•• duty concessions. While 3\ICh meaaurea UT well be j uat.1.tied in t.he circ\Jlletaaces ot part,iolllar oountries, heavy conce,eiCIUI t.o tilaancial viabil.1.\7 cw:m.ot help but cast same doubt an tbe •concaic Juat1fication 0£ th4 inve•t.menta th.auelvea, and tb1t net econad.c advantage sboul.ci be d•mstrateor of the !oroccon econaay. i 1th best personal regards, Sincerely ;youra, Wil.l.i.am Diuumd Director of Operati.on. Davel op1NDt FiaaDce Cmpaniea -~ ' .. mekae/RFSkilJ 1nge/WDiamond:.mam cc: Meaan.~~e, von Hot1Dann, Patereon, Dodd, Richard.a, DaJ&AT, Sekee Circulatic:11 Files (2) ' ~ , ' I ", _ t ·- ' J R c. c -i vrn Q:-:r. '. ~ L FIL ES c-~ :: v .. ~1,J: . ., y T ~ Record Removal Notice Archives 0 6, Records Manag c mc11t File Title Barcode No . Banque Nationale de Developpement Economique Project [BNDE] (04) - Morocco - Loan 0660 - P005356 / Credit Immobilier et Hotelier Project (01) - Hotel Financing - Morocco - Loan 0704 - P005359 - Negotiations - Volume 1 1697585 Document Date Document Type ,. 20 November, 1964 Notice - - -- -- - - - - - - ~ -- - - -- -- - - - - - - - - - - - - - - - - - - - - - - - - 1 _ _ I Correspondents/ Participants •- -- - - - - -- -- - - Subject I Title Development Finance Company Assistance to the Tourist Industry · - -- - - I Exception(s) Information Restricted Under Separate Discl osure Regimes and Other Investigative Information: International Finance Corporati on ([FC) Additional Comments The item(s) identified above has/t1 ave bee n removed in accordance with The World Bank Policy on Access to Information. Thi s Policy can be found on the World Bank Access to Information website . Withdrawn by . ID~te . . . Chandra Kumar 124-Mar-15 Archi ves 1 (Augu st 2014) OFFICE MEMORANDUM sic/o/64-64 To: Staff Investment Committee Date: November 20, 1964 From: William Dia.."Tlond Subject: Development Finance Company Assistance to the Tourist Industry 1. We have been approached by the Banque Nationale pour le Developpement Economique in Morocco for advice about the kind of assistance they should give to the tourist industry. The attached memorandum by Mr. Sekse discusses some of the issues involved. 2. The Committee is asked to consider: a. What advice, if any, IFC should give to development finance companies who are interested in the tourist sector; b. What attitude the Bank and IFC should adopt toward projects in this sector submitted for financing under Bank lines of credit. 3. Up until now, our line, with respect to 2 b. above, has been that we would not exclude such financing in principle, but that each case would have to be examined on its own merits. 4. The first case of a hotel project, submitted by the Industrial Finance Corporation of Thailand, is now before us. If possible, an analysis of IFCT•s appraisal will be circulated to the Committee before the meeting. RFSkillings/WDiamond:anf OFFICE MEMORANWM TO: Mr. \villiam Diamond DATE: lfovember 16, 1964 · FROM: Einar Sekse SUBJECT: MOROCCO - Financing the Development of Tourism A. The Question Before Us 1. We have been asked by BNDE whether we would have any objection to ENDE's financing projects in the field of tourism, and whether such projects might be eligible for financing out of the World Bank loan. B. SEDLIM 2. It is not quite clear what kind of projects BNDE has in mind. In Tokyo, Mr. Bengeloun referred to certain plans for land development, presumably on the Mediterranean coast in the first place. We have a summary, dated December 31, 1963, of these plans, prepared by BNDE's pranotional department, which is the admird.strator of the Fonds Public de Developpement. 3. On November 20, 1962, a new company called the Societe d'Etudes et de Developpement du Littoral Mediterranean or SEDLIM was constituted, with the capital (proposed to be DH 500,000) provided in its entirety by the Fonds Public de Developpement, possibly with symbolic participations fran the SOHADET tourist promotion company and others. Its first Board consisted of ENDE, Mr. Bengeloun (in addition to ENDE), O.N.M.T. (office National Marocain du Tourisme), the Chef du Service de 1 1Urbanisme, SOMADET, the Chef du Service des Dornaines, and representatives from the Ministry of the Interior, the Promotion Nationale, Division of Plan, and the Vdnistry of Public ·works. The Water and Forests Ad- ministration was also invited to the Board, but declined taking a seat. 4. The objectives of SEDIDI were to carry out surveys of the Mediterranean shores with a view to determining which areas are particularly suitable for touristic development. Following its surveys, SEDLUI wanted to coordinate infrastructure development and site layouts, to strangle land speculation, and to establish a maator- plan for all development on the coast. SEDLIM would purchase - by mutual agreement or by expropriation - or lease on long tenn the most attractive sites, and equip them with such basic facilities (roads, water, afforestation etc.) as considered necessary. As a public com- pany, SEDLIM would not take a commercial character, would, without exception, not enter into the field of commercially exploiting the sites chosen for tourism, and would not be expected to make a profit - in any event only on very long term. It would turn over to private or public entrepreneurs the sites acquired and properly laid-out, and leave it to them to put up and run the hotels, motels, camps and all kinds of necessary ancillary facilities. - 2 - 5. The sponsors and creators of SEDLIM - BNDE par excellence - were particularly preoccupied with and concerned about the possibility and effects of land speculation, likely to follow in the wake of SEDLil1's surveys. They see low land costs reducing overheads and hence charges, and so compensating for higher travel costs for tourists choosing Morocco for a vacation. Expropriation is seen as the only effective way of preventing land speculation resulting in high costs. In December 1962, therefore, SED1IM sought a decree giving it the necessary powers to carry out its program, including that of expro- priation. It had had no reply a year later; significantly, only the Ministry of Public Works seems to have concurred with the request. 6. Next SEDLIM tried to get a decree setting up Zones d'.Amenagement Prioritaires (ZAPs), by which SEDLIM would acquire administrative and executive powers in the ZAPs, including expropriation again. We do not know what happened to that request, but chances are that it was turned down again. 7. The report on SEDLil4 does not mention how the acquisition of land and the infrastructure investments were to be financed. The composition of its Board. suggests that SEDLIM was intended to be the means of coordinating the work of ministries and public agencies on infrastructure for tourist development, and SOMADET - BNDE 1 s tourist promotion company - to prove the possibilities with pioneer schemes. The idea of a ENDE/Credit Immobilier site development scheme mentioned by Mr. Bengeloun in Tokyo appears to involve both infrastructure and some pilot development. If so, this may be a further indication of SEDLil-i's failure to persuade the Government to vest it with the powers requested. 8. It would be interesting to know, in this connection, whether the Moroccans have considered., as an alternative to expropriation, attaching onerous development clauses to all sales of land in areas found suitable for tourist development (ZAPs). The clauses would oblige any purchaser of such land to spend a certain percentage of the purchase price within a stipulated period of time, say three years, within defined heads of improvement to the land - for example survey, sub-division, water and sewage, building according to area plan, etc. Present landlords could possibly also be subjected to similar - or somewhat more lenient - obligations, or be required to sell the land to interested and qualifying developers. Should such a scheme provide an incentive for development, it would have to be coordinated with public infrastructure works, such as access roads and other means .~ t communications, afforestation, water supply, etc. Other countries, like Tanganyika and Zambia, have or had such land clauses. We are endeavoring to obtain some more infonnation about these schemes. - 3 - C. Survey Hission Con~_lusions 9. There seems to be no doubt about the excellent potentialities for Morocco in the field of tourism. The expert on tourism in the recent economic survey mission to !-torocco, Mr. Bolin, states that "Morocco is ideally suited for the development of tourism." In his (prelim:inary) conclusions, he says, inter alia: (1) The developnent of tourism in Morocco is a practical possibility. (2) So far, tourism has not been adequately exploited to balance payments. (3) The construction of seaside resorts has been a step in the right direction. (4) Morocco could receive one million foreign visitors in the year 1970 !/. (5) To make this possible, 12,000 hotel rooms must be built in the intervening years. (6) Hotels, and second-class hotels, are indispensable. (7) Receipts from tourism during the 1964-1970 period should largely suffice to cover the outlay, provided more hotel rooms are immediately available. 10. The investment program, as outlined by Mr. Bolin, would include: 3,000 rooms already being built or planned to be built in hotels or resorts of various kinds; 4,000 rooms in bungalows and hotels on Mediterranean or Atlantic beaches; 3,000 rooms in good Second Class hotels in large cities; 2,000 rooms in motels on roads, mountain areas, or in the South. This construction program would require financing to the extent of $50 million excluding all investment for infrastructure programs, which !/ For comparison, Morocco had 205,000 foreign 'Visitors in 1962 and 287,000 in 1963. - 4- might easily run up to an equal amount or more. From an over-all economic point of view, the survey mission is doubtful as to the feasibi- lity of implementing such a program, and suggests that priority should be given to the construction of an adequate number of good, second-class hotels in cities and places of touristic interest (Tangier, Marrakesh, Fes etc.) and to the further development of such resorts or areas where considerable investment has already been made, such as those in the vicinity of Tangier, or between Ceuta and Tetouan (Villa Harris, Restringa, }I'Dig, Al Hoceima). New development schemes such as those aimed at by SEDLIM should certainly be kept in mind, but not entered into at present. 11. With respect to the financing of the construction programs, the survey-mission suggests that the Credit Hotelier, a section of the government-owned Caisse des Prets Immobiliers de Maroc, should be in- vigorated and play a major role. As one way of increasing its resources, it is suggested that the Goverrunent dispose of the five hotels which it now owns, and invest the proceeds of their sale in the Credit Hotelier. The Credit Hotelier should extend the term of its loans, now usually 15 years, to 25/30 years. BNDE is not mentioned as a possible source of financing in the draft report of the survey mission. D. Checchi Report, Possible Sources of Finance 12. Checchi and Company of Washington in 1961 prepared an in- , 1 teresting report on "The Future of Tourism in the Facific and Far East 11!t . As possible sources of finance for projects of tourism are listed: Local Sources 1. Development banks and government lending institutions; 2. Special hotel loan funds; 3. Government guarantees for lending from other sources; 4. Counterpart funds; 5. u.s. fublic Law 4tb funds; including Cooley funds; 6. Private funds. !/ Joint Library, ref. 380.8 - C4J.f. - 5- International Sources 1. International lending institutions, IDA and IFC specifically mentioned; 2. Government lending institutions, such as (a) Colonial Development Corporation (U.K.) (b) Kreditanstalt fiir Wiederaufbau (Germany) (c) Export-Import Bank (u.s.) (d) Development Loan Fund (u.s.) 3. Supplier credit or supplier credit guarantees; 4. Reparations; 5. Private lending sources (e.g. investment banks, hotel companies, special syndicates, Edge Act banks authorized to lend and invest abroad). 13. In Spain, perhaps most important competitor to Morocco in this field, the Credito Hotelero lent to tourist enterprises at a rate of 4.5% for many years, and now lends at 5-1/4%. In France, the Fonds National de Tourisme lends at 6-1/2% for construction purposes, and at 5% for modernization and equipment. Similar examples of lending for tourism on easy terms can be found in other countries. In Morocco, low-interest money may not be easily found. It might prove worthwhile, however, to explore the possibility of obtaining loans from u.s. counter- part funds or P.L. 480 funds at a reasonable rate, for relending to tourism through the most suitable agency, be it the Credit Hotelier, BNDE or a special loan fund for tourism. As has been done in other countries, the Government of Morocco may possibly consider guarante&ing all or a certain portion of loans, and gearing the loans to other appropriate measures, e.g. exoneration in part from truces and customs duties. 14. The report's conunents on the availability of international financing for tourism are interesting enough to be quoted: "It has been our experience that few institutions engaged in international financing will refuse to 'consider' a loan application. This process of 'considering,' of asking for more and more facts, can go on for years. Mean- while, no hotel gets built. "The fact is that many international financing insti- tutions simply are not interested in hotels and would not - 6 .. finance one under any foreseeable circumstances. Other institutions might consider making a loan for a hotel, but only in certain countries. "It is our recommendation that, once a hotel project has been developed to the point where the sources of inter- national financing must be explored, as many sources as possible should be contacted and the strongest possible loan application should be developed, keeping in mind the dif£ering requirements of these lending institutions." E. Appraisal of Tourist Projects 15. Obviously, the appraisal of a project in the field of tourism requires considerations different from those applicable to industrial projects. Miss Wolf, in a memorandum dated September 17, 1964, to Mr. Dodd, has elaborated to some extent on this question. Copies of this memorandum will be made available to those interested. , F. Conclusions and Proposals for BNDE 16. If mmE were to enter into financing in the field of tourism, it would have to consider which of the various types of projects it would assist. At least four different types can be seen: (a) land development or i rurastructure projects of the SEDLIM concept; (b) mixed infrastructure and pilot scheme projects (e.g. land acquisition and development, including the construction of hotels and other facilities, in ZAPs covered by development clause legislation); (c) construction and equipping of hotels, motels, etc. all over the country, including ZAPs; (d) other facilities for tourist purposes, such as ferryboats and ancillary equipment. 17. It is suggested that Bl-1DE should not, as a rule, enter into the type (a) projects; such infrastructural development being seen as a primary responsibility of the Government to be financed principally from public finances. BNDE might consider, on their own merits, pilot schemes or construction projects of the types (b) and (c) mentioned, even in cases when a certain reasonable portion of the investment is for land development. RIDE should only do so, however, if other sources "f finance, such as the Credit Hotelier or other mortgage lenders, are not able to give the kind of financial assistance needed. As a rule, it should also be a condition that the management of the enterprise in .. 7 - question should be directly associated with an effective and substantial financial interest in the project. 18. It should be realized that Bi'IDE has been adapted pr:iJnarily to industrial lending, and may not at present be adequately equipped or capitalized for lending in the field of tourism. For one thing, such projects might require loans with a considerably longer term than BNDE may be in a position to offer today - say 25 or 30 years, with long grace periods. For another thing, BNDE's present lending rate of 7%, which is quite reasonable for industrial lending, may not be propitious to lending in the field of tourism, which often has to endure early stages of low profitability, and therefore may need low-cost capital and other benefits in order to survive. 19. With respect to BJ.'.l"DE financing projects in the field of tourism from the Bank loan, it was agreed in Tokyo that, in principle, hotel construction and equipment could be financed under the Loan, but that the Bank would make a definite judgment only on the basis of specific proposals. Since a major portion of the costs of such projects would normally consist of dirham expenditure, the Bank would have to agree specifically in each case to finance such local currency costs. The Bank would also have to consider whether it would be prepared to agree to repayment schedules in excess of 15 years, being the normal limitation under the Loan Agreement, except as otherwise agreed. It is suggested that the Bank keep an open mind on the ~estion of financing mixed construction and development projects L Para. 14 (b)_7, whereas genuine infrastructure projects of the SEDLIM type would probably not be suitable for Bank financing. 20. vJhereas the door should thus be kept open for Bank financing in principle, both BNDE and the Bank would probably do wise to exert restraint in their approval of loans in the field of tourism. Perhaps in no other field of activity are risks more difficult to calculate, or merits more easy to misinterprete. Thorough analysis of all facts and features likely to affect the viability of projects is therefore imperative. 4 -•~;i JJH!II '~ l'i' 1;1;~ 1::1L .~ 1 I r., I i ' · '• f' ~r ~ t f ff,I l 1-~~ . i~f ,,~( I i i~ JJ t ,a, I 'iili t 't J f: ? It .. ,-1.i1=--i .. l,s.i l f • I .•1,.!! . 1,111 [ " _ 't~ . f f .. •f! f · i l.- f f " · I I _f .1 ·J hfl;,t l • .. h I .~ ' ;:t:ilr. . ta r:l !;JI ii f;t . • ' I ~1'~·~,·1(· I' it'''iiill1; ~ If!.. .. ilJl~ -iJJ • r,ii .~ i I ' ' -. - a- s. 11111 .,.,... _. .....un et Sl1Jls1N • IIDI ,_ u11llrs• - - ~ q ,..... ••• 'ld.tll _. ••••rr•• alNN\ Ille ,11at.WUir . . ett.'8 .. lall .,...iatua. lt..i, - t.U. ia ....... of SIDLDl•a WWW¥1i•• 111ar - 1- la4 wta nt!M'f•1 • .........._ • >•ff CMJ'IN» ... • • .,.. ••••Una tor b&. .r t.ra,..l. wt.a tor WU'1na oboctl1 . . Jleneco ,_ a -..au.a. IJpl 11ria"1aa b . . - u *el.J' .U.CU.• .., d Jftwaniltc 1.-l -,.cnalati.• Nalll.\iaa ja Id.Ill ft.ta. la ~ 1962, -...er.., am.a N111Pt. ...l'N si.viac it. \be ••••U7 P•••N w •&1'17 en 1- ..,...._, 1.MlNhta ~ ot erqro- Jll'latha. I• _. llaC • . . . . • 7N1t latut ~ , aaq Mlll1.nrf ot ~ . WOlflfa . . . . w llaw ...,..._ 1J1'MI \IMa nq11a1t.. 6. JIGS S&l)JD Vied. '9 - ' a --·.. ~ wp z... Pl'i-.t.:kt.Ne (1"119 ), "7 wdek l&DLlJI wwld aeq.Sn ~ U . W ... ·····=·• 02, ww.Uw pa1ra 1a ._ Ula.- t.•J..Ua1 ea1n1d.ll\iAa 1pta. do -~ ... ._, bapp••• t.o tiut, req~, lN\ eatMu an tu• 1 \ - . Wl'lle4 .... •P'•· 7. Ille Npo.n • IDLDl . . . Mt. ...u • ._ 1- acqaaiVal ot 11M _. tlla ~ ia'YU-...tlt W1'9 w N flaae••• Illa 0 Q aelU. .t l\e liN.l'4 ........ ---~ IPdJI.D( . . . - · · · · . . M 1M ••• ot ceiercttna'1c•1 \be _,. ot ~ alMI ;•J.s.o apaoi• • lahannoUN ~- \Gllr.l.n ..,,.191 us,, alMl • • MIU'ia• fl'••U.• • arnr •tie,.._* p11st"1UU... • • pl.aa,r Nbrra. .,..an Ille 1. . .t' • IIIDl/0..-.~ J•-S.liu ad.• ••11' st. eclla1 ....-.... 1'r x... .,...l -111 Taqo \e iamw Nib f.lltfuvu-. • . . . pllet. ._wlofr•t• U ao, t.lala aq • Sm>LIK'e tailue a · Nc.t'l:MN\e4t.. , enad9 ..._ tulMr b4o•U.• .i o.-w~ \o wet 1t Ila• powen • It wftl.4 lM iBwNniq u kalN, iJI tld.a o.._\i.m.• 1d•tllff ._ Kaoocu•• Jaan o...w.ftid., N aluaat.lw \o a,roparl.&U.•, • at.t.acJIIJI& .,,... ~ cl&•• w all Nl.N ot 1acl la ....... toaact nlt.ule tu '4Nrln . ....i.111 -,n (UPa). n.. olauea ...U U.,.. • pw.rohu.r ot e110ll 18' to 8,-d. a cenai.n peroen et 'be pvehln pl"i. . . . . . . . . . ~ ,-rloll . , \t.M, .., _,_ ,....., ld.tblll MftMt _... et ilqtro; •~ lo \be 1DCl • tor -..,1e •llrf'tW', nb-ct.,':!.ri•• nt.r --,., ltaOAta1 or«lai to pl.a, eto. Prenat laa•fl•JU oOlll4 poesj.bq al.ao • • Ject.4 tea aildlar .. Oli' •• r bat! • n ,.,., . - - obl1&aU..., or lie nqld.red w ..U ua. W te 1MeNri1d. m1 qulJ.tJ1q - ~ . Sbovld nu • •c!IW pnda uaceniw f • cllt.,.,.,._t., it. vOIWI • • \o N cOOl'd1naW 111\la "*lie 111t.anr,aewn ...._ • aUA u aoeeu Nada MMl ot.ber IIHll• ~ e. .rmi ..U..., attw U.•, • ._.nppq. •'-• OUaar cearvt••, like ~ ad ZallDt.a, laaw or 1la4 e11CA 1.1M ol&UN. • an _..._,nae u obuila . . . lllll'e latolllaUm t the ec • - l - c. !!!'!I'.!!!!!• 9!!!1¥!• ~. . . . . . . . -- - - 41111111n . . . . . . . _ , ,. . ,......u.-.. ,- ....... a ._ a.w et ....s... "- ..,.,.. • Mllri.lll ta ._ rus•• •••at• ...,.. •NI• *' .. . _.... le l••11" ..S.W 1w le 111 Nit, *· le\ta, akiN ._. 1 rr,rst et __._. la Jiu ~ , •••l•t ...... ..,..~ tat. - .......,.•. .U.1 (1) a. ....... ! ., - - - a.a ...... 1- .. ..,..u.al (a) . . ,.,, ........... ..- . . . · - ~ . .WWM :a.1 011 M rsu. --~~. CJ) ._ .......... _. ...., .....,ne ..... •.., (k) ....... •..W. . . . . . . . el)Jt• ,..._ ......... Sa . . ,_. WIG J:/ • (5) !o - - Ilda JNalW., 12,000 -...i , . _ - - lie IIMil\ .ta ... ~ , . . . . . . (6) ....i., • ••••#-el•• Dllltl•• - . lat11a,mtula. (7) BIH&,r\8 111111 t1tt1a . . . . . . l.1611•1'70,..... •wJ4 luall¥ nl1lM NW . . . '° ............ lrraatei,- an.t>.:i.. Jl'ftiM . . . w. 10. i•Jqfg I !1111 s.a..... , ,......, u ~ "' •• leUa, . . i t ).,000 , . _ +l....,. llllilla lMd.1\ - »] I rs• le N INIU\ l a ~ - . . . . . . . . . . . . . . ldadlt - ,000 Nall 1a pe4 INZ1 Claea Jlnela Ja lar.. 81"-tJ ..... 2,000 . . _ ill ana1e • ...... ...t.ua ..... • ia ta 1w · - - ' - · ........ .W 2~,000 1..s.p nal..... &a 1'62 llltl 217 ,ooo Sa 1'6). - -- ........u., l"llll . . '° - ecaul •• , • .. .... ,,_ - .....u • • I lo , _ . et YIIIW, '11ft & •IV atwte t.a ~ u M 11111 lll1dNHtr ~ ' • ' • • M91 MIA• 1NP-. .,..,14 ..,. a1,-.. '° ._ ........U...., • ••..-• a rtw ., ...... ..a,..,.-*'~ ••• I elw Wa ill a.ta. ... ple111 .i ~ ~ ( ........ HuT - ~ 1N .... ) _. \e tlla hnlller .....1 J ,...... w ..... __. o••••....iti. al _ . iaw.etm11:t M8 ~ ._. ...., s, . . . u .... ia tlla 'dd!dtr f//1 hlsf•, • .., 1!11• Ceda lllli MIRI S ............. ~., ...... (fllla lluT.l.a, ~. . . ., Peoefee). - u - - I Ill* MIUZPI .... u . . _ .S-.C at 11r lll'D ,11.,.11 ~ N 11111P' ill ld.lllll, u. "° '- • ~ 1a a,• . , , . . . , • ~ ' " ' ,, \lie . ..., . . . . . . . . . . . . . . . ., . . ON&• .....,. ..... wt.la ., . . IDNlll LFl ..... c.1- ... PM'- JrnsMJt_.. tit ...... , Ill .......... _.. ,iq • _.,.. ..i.. 4- ... - , ti ........... 1tl ,..a.,.•, I.\ u ,.,__. tu\ tlla Gllsw 1 \ Clf•••., Aw * ~ . - - '' - .... al ua.,.., ........... ._ CNA\ W•H•• n. ere&\ an.u.- allt11111• al•f ._ _.. f1f ~ ~ Ala la ...... , .. 1 - , - u a J•at.i. •••• et ft.asrd . . ill tlla *aft 11.,111. flt \Ila _.,aw D. ca..• ...,11.7 J$ ,....., M 2S/)O JININ• am ia • R!f !!'J P111tJtle ,..,.. el nan,, ...s.. . 1. Dln91lfll1M .._. lllllli .~ l •dt.. f.M\i.w,.. u...., 2. lpeaial, --11Na ,.... 3. 4. ....... o.... ,,a, ..,....._. Coa..,,_..,.., tw 1.a.. hell .-r S. U.S. JJa1i.e ra, '61c) .._..J iMlwtla& Cool411r ,..._, ._.. .!. r I I J- .-~~ l I ·_.} I I . ., . t \,~ 2. CJD,w1 ntr 1. .s.. Sanlwtr , . . . u ( ) ColwtaJ :0.•1• , cu,.nu.. cw.,.) (b) l N c l l ~ IV ~lu'IIMR!t.11 (GernMl7) (c) ~lllfeft . . . cu.a.) <•> ~\191, 11at, x.. , - cu.a.> 3. SWU•r oNCU.t. • ...,U.er ......., ......._. s. lMt\el _.. ~ • <•·•· e• •••ewa .,..._._, 'f'&\e 1....... aa...., 1e lad ia......., . . . . Edp An l'N4). l). Ia a,.ta• ....,. WI ......... ....U• to llenooe ia *8 a.w, -. CN&te ~ ~ te ~ ~ n • . . . ol ... , , , _ ...,. ,._., ... - 1llllda ., > la h•••, Iba ,-. ~ de hvl,a 1-- • ' - fo, o---t.f.ea ,.,,••• • at, S$ tor.,.. M..- w1 ~ . liatlar ....lee er lra:Uac 1w ....s.. • ..., --- .... ~ Sa ellau' ~ . %a ....... lar-!del"Wi 11G1U1r _,. ao\ oe ...11,. t...a. I \ . . . , _ ~ ••tliltti., I -,1,n .... , • .vu.• 11 ....... ... et -,e1.... 1 - ,,.. v.s. ··--- " " tlllldlt • P.L. a.to,_.. a\ • ......,.le rat.,. tv nl•ff91 le. '°'11'1aa ~ \Ill w, n l ~ &&f/11147, lte 1\ ille Cndt.\ 8"olier, ff • -,,daJ 1 - ,.._ hr MUUII. .u ua _. tllu ta .._.. ._. .Vlaa. ~ o.,u .., ., ....... .., ,-d'.bq eGUlda ~ all or a aerkla pen:I.• .C loda. , 8Nr:la& \ta. loau M ~ a,pnpr.1.a\e .............. .......u. la .PIii"\ fnll ........ . . . . . . -"-· - 6 .. N•eao• . . _..,. _, .ror..11-.Je •lnWI-•• ot.r lutd.WU.... - - ' .i,, iA .M l'&at,a oGIIIIV'1N. •••lw •k1•1 a i..a .rw a uw, .- u ev ,w "It mftell• Ula",tllN a M\e1 pnJeot, . . - - -~lope« - • u\ltll&l n-tac an• ~, • ...,. ._.... poeulwt tbMW be .._..'94 _. 1M • ~ ,oia\ ...... 1- ........ ot s.nv- ,-.s.w. a, l.Ma w,U.ea"1• .....,. -_ ..~..... 1&11,Sac ia Ill.al tllll ~ ftllUWU ot tiMN l•rUIIC bnt.""'1.. . . " B. ~ ~ fou!a\ 1'ro~-'- l$. E abala1d an, .. a nla, etu 1no tu '7JNt C•> ,...JeouJ aM!a wru.._wnl ....1111 art_,... ...... ,.u.. ti••••· a JftllU7 ....,.aildU\7 of 1M ~ , ti. .,_ t1wect pn,aalplJ'q he llUJ& 1111,tr\ c•aCS.r, ca *11' on MrJ.t•, plln Hbr11 or coaatn&U• pNJ•t.a ot tbe -'her '\Jpttl (,) alld (o) llllniau4, nu••ble ~ - et \M •ffll J.11 o&Mil . . . a cenda lor 1.aM awi.-,. am aboalAt. aq d.o ao, bOINftl", ill"fN111eat 1a if o\blr eoan• of fiw•, allala u * er.cu., Bolelie# OI' ota.r ...,... l•ca.n, an an all1a w p.w ~ Jd.ad of' n..111111&1 uw'laW Dllde:d.. Al a rul.e, i\ a-1.d alao 'be a oGGdi.td.on tna\ ~ MD"-11 an\ J • ! 'I 11uf' i~· 1t'f UH'(f · :i r l 1 11.? • • e:. ; · r $ f .. i !o ·fr ~ ffrl~f f . rl !& to-1 1 f'HU. i:' !~ .·i t.i ~ If _. 1 ~ M![J II !I!"' • • ~ ~,Ei w ~ ~ . 11 rJ "' .,. .;,'- I: r ij 11 f .. i IS b fJ'~I g I: f - I ~ !';:) :Ur :-rlf, i~fttr;~~ ;i. • t:'" f t!ti ! 11! r~-i 1u, ,,.l!·!tit ~ SIil p.. • ... --i 1 it fr ft :i t e, .:l"... r"lil .. . ' ,,.:t - • ...i t r1 .i 1 ' .i Iti .r. .• a fl . o.- .. . .. J Ii) .. 4 . £ ~ ,. E . ,o .; ~ !I · ~ • "'I -~ ~~ .. ~ 0 . . cf' r ~,•~ •r J ~ . . , t~ · • [!~ ~~, 1 .I =... f • • ... - f !' t l . ·. 1! a~ · ,L~ 1 c~ · 1 ° t ~ ~.; ~ i! a '" r C _ , -·- . . > ' -. . .' .. - . •1 .... I • r . - "'J - ME-. E1nar Sekl!le JJ Ill Hovember 5, 1964 A• Volait , , !',. . . K>ROCOO - Financing the Development or Tourism / I ref er to your draft memorandum of November 2 on the aboTe eubject ,. ... • I which you sent me on November 4 for cOJlll8Dt. , ,• I .h1• r I feel that the problaa raiaed in your draft J1191110l"andnll ahonld be diacuased in a Working Party meeting. ilio, I do not feel that your draft .l reflects sutticientq the Bank'• poaition on touriam as upreseed in 1191111D our memrandum of September 22 1 1964 regarding our conversation with the r Moroccan delegation at the Tokyo .Annual Meeting (a oopy ot the memo waa sent to you). For your convenience I have extracted the following from '"I. the above September 22 lll8DIDI •Touri1m., - We agreed in principle that hotel construction and equipment eouid be financed under our line or credit to BNDB, but that we would make a. definite judgment o~ on the baais or spacitic proposal.a. Land develop- ment operations would not be comd.derad eligible.• , _.ii' .. ~I -. ... I ,-. I ... •• 1 '1 -;·;..,. l ... .. • ' · - .. f.-tr L •1 r , ~ ,. ... ,;. I I I~ •• l ~ , ~.J 1 I I '¥' ~ : - ,.:,J '"' ... ,I I 'i, r - ' . ;f I • I. ' ; I / AVolait:cvb,/. ft. f ,I Ir "' i .... p ' . . . I' ,.. \ Mr. Einar Sekee September 2), 1964 Rohen F. Sldl.llnga~ MOROCCO - BIDE 1. During the Annual Muting, Mr. Bengeloun asked Mr. Rosen whether we would have an, objection to BNDE 1 a financing projects in the field of tourip, and whether a,uch projects might be eligible tor financing out o.t the World Banlc loan. 2. Mr. Rosen said that, 1n principle, ve would have no objection to BNDE's entering the field ot tourism, provided. projects wre well worked out. Each case would have to be examined. on its own •rits. ). In further convereation it developed that what Mr. Bengeloun had primarily in mind w as not t he vac~ti on colonie~ in which BNDE' s atf'ilia.te, SOMADEI'. has already invested, in association with French private capital , and which are proving quite successful, but, r ather, the creation of' colll)&lliu, jointly with tlw Credit bnoblier (an affiliate or the Government-owned CaiHe dee D6p8te et de Gestion) , whic i would engage 1n land development. I think this has reference in parti.cular to a zone overlooking the Maditerranean near Tangier11 which Mr. Bengeloun pointed out to me in Morocco in June. As I understood it., the development company would acquire the land, obtaining special powers froJ'll the State in this connection, would install water, severe, and other utilities, put 1n streets and design a layout into which Tarioue private inveetors would come to build hotels, motels, "bungalows," aunmar camps, and ot~r facilities into Which tourists of various kinds would be attracted. 4. Land development business ot this kind is likely to be nry speculative, so that the cbancea ot losing one's shirt may be as good as (or better than) those or maldng a killing. With the aura of Go•er:nment interest in the a!!air in Morocco, I suspect that a c o ~ associated with BNDE would not be a.llowd to make very subetantial pro.t its, but might still suffer the consequences of a heavy loss. 5. We promised to give Mr. Bengeloun some kind of reaction to his proposal. W ould you kindly consult a.a many people in the Bank and IFC as you can find who know something about this kind of busineaa, and in the light of those discussions and your own thinking on the matter, draft a letter t o BNDE setting forth our views. cc s l4es srs. El Einary, Dodd, J. Williams RFSldllings :anf FORM NO. 59 ( 2 - 55) CROSS REFERENCE SHEET COMMUNICATION: Memorandum DATED= September 22,1964 TO: Files FROM= Mr. Jentgen FILED UNDER: Morocco - General Ne gotiations SUMMARY: Meeting a•d discussions with Moroccan Delegation at Annual Meeting, Tokyo, Spetember 4 and 11,1964. EXCERPT: Tourism - We agreed in principle that hotel construction and equipment could be financed under our line of credit to BNDE, but that we would make a definite judgment only on the basis of specific proposals. Land develop• -J ment operations would not be considered eligible. ... .rt·- . . • l • ·. ' ' . ....--i-~ ,· .... - . ., ...... I• ' 1 L, • .. ~ '-r '"i_ - 'v~ Mr. Abd91"'r&lltulrl T&z.1 L Juq 2, 1964 .r-1:/ . ·' I - I I. • ,. - • ~ Willia Diacmd. - ' I ... '~ •~ I - ~ ._ I J~..111' t • • , • Financing Inftstnaent i'or Tourist Faoillti•• - Morocco =--~ . I I. . ~.. ~- • • • ~ Ii 1~·· I ' ' ~ f -1. _ 1. You have uked £or a statement. about the poait1on regarding UM of Bank and lFC tunda for investment 1n t.ouriat fac1lit1ea ln Morocco. .- 2. I beline Mr. Skillinga has already told 7ou that Mr. Tah.iri -~ ·I raised a a1udJar question with hi.a in Rabat. that lie .replied as :£olle11a1 • Skillings hu repcrted •· 11 Mr. Tahiri then asked whether IFC would be in- • I( terested 1n financing hotels or at.her projeata duigned to promote touri• in ooco. I aaid that I did not think that au.ch financtna ou1.d be excluded 1n pr1ncipie., but L" that ea.ch case would have to be exami.ned an ita own merit1. ' • Tabir1 asked whether D'.C could land directly to the nsae de D6p&t, et de Oestion for a11ch project.a, I aa1d that it could not since the Caisse wa~ a public inatitu- tion. He then aaked e ther part 0£ the World Bank line -· -, I ,•·. o.f credit to BlID might be re-lent by the JliDE t.o the caian f or hotel proJect.a. I s«Ld that such a achae aee11ed un- . ~ r • ! . ·T . neceas~ caplicated and that it aeened to be R10l"e .. practical to think 1n tenu of B NDE'• landing directly to printe hotela and other tourist project s, aonce1vabl.T with direct IFG participation side by aide with DE in a largo project." J. lit..h respect to financing by lJND , I ahould. like to confirm the .fallovin,g. Aaaiatance to the t ouriat industry has ao tar not been provided b,.- be the cue in M Bank. HaveTe r • in a cue in 'Which the develapment or touria a ot great importance to the country oancemed - aa would orocco - the ank would be prepared in principle to allow the proceed.a of it• loan to be ueed tor apectfic projects to "' , l d.nelop tourist tacU1t,iea. Obvioual.y, each oue would have t o be conaid.-ed on ita n erite, and ve would t.hat BNDS would look with part.icu.lar care both into t e de.111a11d tor the facilltt:es and the quality of their ma.n~ t. u. - I e.l.ao ionf1na that IFC ia prepared to c aider an invest- I •, I tQ8llt tourist faci.litiea. In accordance with _ ur general policy, 'We woul.d pre1'er to invest along side D E. . I . . .. ..... ,....-~ I. 1' I • I t' \ .. f ..J " •• 'Ill ~"" ... ,, Mr1' ,' ~ ~ 1 .' .:-" FORM NO. 59 ( 2- 55) CROSS REFERENCE SHEET COMMUNICATION: Mel'l"orandum DATED: June 30,1964 TO: Files FROM: Mr. Skillings FILED UNDER: Morocco - Loan 329 SUMMARY: Conversation with Mr. Tahiri re position of BNDE and IFC 1s interest in financing hotels, tourist areas, etc. ~.)La::i'Yf ..Lc.i:W ~_,!f ~ f 19 MAI \9~ RABAT, . LE - ····' ....................._..__.._ _____..._..______ ·- · BANQUE NATIONALE 3 , C HARIi T IHAMA (l!X · AV, DI! GASGOGNE) / POUR LE BOITE POSTALE 407 \ DEVELOPPEMENT ECONOMIQUE CAPITAL DE 30 MILLIONS DE DI R HAMS Monsieur BOLIN, C . N. S. S . 68 , 805 Expert de la Mission B.I.R.D. R, C , 16.423 RABAT Ministere des Travaux Publics ADRESSE T£L£G , , BADEMAROC T£L£PHONI! , 264·41 · 42 · 43 R ABAT DEPARTEMENT -------- 11 " ETUDES ET EQUI PEMENT MG/MB O N» Monsieur, Nous vous prions de trouver ci-joint quelques documents complementaires, relatifs aux problemes du d eveloppe- ment touristique. Veuillez croir e , Monsieur, a l'assura.nce de notre cons ider a tion t re s di stinguee. BANQUE NATIONALE POUR LE " DEVELOPPEMENT ECONOMI QUE P.J. I FORM NO. 59 OJI ~ ( 2- 55) CROSS REFERENCE SHEET COMMUN! CATION: Report DATED: Decembre 31,1963 TO: FROM: BNDE F1LED UNDER: Document 32 Mor 329. SUMMARY: Comite des Fonds Publics de Developpement. Bilan au 31 De cembre 1963. Pages 29 - 44 concerning Tourism. I>O(. '' ·:BANQ;fJE l\fATIOHALB POD1t LB DmmLOPPEl,J.1:itr ECONOHI QUE Rabat~ le 23 JUilif 'l 962 NOTE RELA.TIY8 _____,..,.r..:.- - - ·- A LA Ot.EATION D QU.N"E ~ - ...-"--....i'"--··~ --.. .i-...,_,..,.._ _ SOCIE'J:B --- D 2ETUDES ET DE DEV!MJPJ]fl.ENT DU LITTORA.L lYLED1.TifilIBL lfilmli - ...... 000.-- Ce pro j et pa:rt du pos· ;ulat que le tourisme d oi t oons ·c:L-~ -cu e:c J_ne des pri n c ipales a ctivi·;es marocaj_nes et qu ?a 1 1 i n:l; e rie u.r d e 8 a 0t :Lon.s tou:r·ist j_ques a e:nt:c,11):cendre 1.e J.i ttoral mecJ.i te:r·r2.i1een Q c ons ·: . d;-ue Ul'.l a:vant2.ge· i.:ndis cuta: /i_e :pour . le Naro Co Rn efi'et , c ~ es·c un fa:_t entierement :cecoxmu e n Eur m~e q1,1.8 leo cotes medj_t e:c:r.aneenne s :rnnt un element d : attrai t tres - im:por- .L~ an:b :p our les populations o Pou:i." s r en o_ onvaincre 1• il suffit de se :ceµ rc:'.is eilte r 1 1 aff.li.; .x tourisi:;j_qw~ sur 1~. cot e franga ise e t s u r la CO'L~e italienne et c Pavoi:r. prese:1t e, 1 °s s:prit l : effort entre pris s u:r la cote espac;nole,, A ce j ou1· f il 1:l 9 exist ,~ pas d ~ actions d 9 ensemble pour 1 'au10n.agement du b .ttoral rn.edj_t;.3rraneeno Des in.i tiatives d ispe rsee s presentees sous l'E,mpire de la ·rolonte d 9 agir vite i, ne permettent ., ce pendant pas d 3 abcutir dans de3 conditions favorableso 2 - I - JUSTIFICATION DE LA CREATION .,.__...._...__ .... En parcant du pr:Lncipe que la cote medi terraneenne , represente un atout indiscutablc :; il faut cependant reconna1::tre, qu actuellera.ent, taus les elements ne sont pas favorables" 1 Tout d 1 abord , il ntex.:i_ste pratiquement pas de sites reconnus" Les moyens d 9 a cces sont difficiles, la cartograpb.ie et la doow:a.entation de base : no·;;amment clima.tique, sont prc.tique- ment inexistantes" Aucun organisme n 1 est charge de la prospection des sites et de la coordination des amenagementso Il existe quelques ini- tiatives locales, compte tenu dE) l!~urrpleur de la cote , il ne s 1 agit que d Vinitia.tives de faible importance,, Face aux rivages marocains, se developpe un e ff ort consi- derable qui est a la fois un eltiment possible de concurrence :, _conll!l.e u.n elem0nt possible encouragean-i; les touristes a se deplci.cer jus _ _L1.. 7 e.u Haroco ::1 serait 'Oaradoxal de roster inactif au moment ou_ les cotes europee.imes apparaissent comme nurchargees et ou. les touristes euro- peens ont tendance a s 1 eloigner de plus en plus de leur pays d 1 ori- gine pend.ant les vacanceso ' I ·l lI II - ~CTIFS DE lA SOCIETE - La Societe d ?etudes ei; de developpement du littoral medi- terraneen devra realiser les opt~rations suivantes ~ 1 °/ etude systematique de , g, cote avec le_. conc'"'urs des services · pUrJlics interesses et r; ';; geographes c[h3 la °G'0,culte ; 2 °/ prospection et releve der: sites ut~_lisables pa:r une campagne de visi tes qui devra ine·;ri tablement comport er des deplaceraent ,3 ma1~itimes '1 compte tenu d E: 1 1 insi1:Pfisa11ce deG moyens te r res,- tres d ·, acces ; .ces travanx devr.n nt etre effectues par d es I I SJ:lecialistes ayant l 1 hab:.tude d - J ,pprecier la valeur d qun site touristique ( il ne s 1 agi··; pas d 1 une simple valeur esthetique) " 3 °/ _E-bua.e des amer. .agemer.ci:is a apporter aux sites ; pour qu !un site ;veconnu soit utilisable ~ il faut, de toute evidence ~ assurer son boisement, sa viabiL.te et ses moyens d 7 acces o Il est indeniable que la . societij devra cooperer tree et:roitement avec ·l 1 Admiriistration de ri Eaux et J?orets et les autorites locales, afin qu tun tres important effort de boj_semont so:Lt ent:C0]'.)l'iS treS rapidement SUr lflS cotes de la lVledi terranee ~ lG, prin-, cipal obstacle comm actuellement a une action d I envergure etant 1 9 absence quasi-totale d?arbres; .. - --- -- • -· 4°/ Operations foncieres: pour les sites les plus interessants 1 il parai+. indispensa ble que la societe soit cha r g ee de 1 1 ac:b...at ou. de la location a long terrue des terrains pour en realiser 1 2 equipement; ce s terrains Aquipes seraien t recedes a 1 1 initiative privee OU publique OU ti_:'G_ilises di:.re c t0ment par la soci et e elle-m§me o J l i III ... COHSTITUTION pE LA NOUVE_ldi} 5 SOCIETE - I i a tion et 1 1 ob jet s oci al Des que le principe de cette cre_ II delimite ci-dessus auront ete admis par les membres du Coroi t e des I Fonds Publics 1 la societe pourra etre creee dans les condi·l; i ons suivantes g a): .Qm2itg ; Le capital sera ~preleve sur les fonds publics de developpemento A priori~ il faut e.dmettre que son montant ne devrai t pas €H:.:'e i nferieur a 500.,000 DH car les e.ctions entreprises ne trouv eron-'c leur rentabilite qu ~a moyen OU long terme 0 b) fe Oonseil d!.A,.drn.inistration i Le Conseil d 1 Administration i ourrait ~tre constitue par les personnalites suiva:l'1 tes g l a BoH oD a:S o , Admi11ist r a teur -Delegu.e 9 1 1 OJ?FICE NATIONAL H.A.ROCAI N DU TOURISI