Ex-J. P. Morgan Chairman to Be World Bank Head

President Bush has chosen Lewis T. Preston, retired chairman of J. P. Morgan & Co. in New York, to succeed Barber B. Conable Jr. as president of the World Bank, the White House said. Preston, a 40-year Morgan veteran, will return a commercial banker’s viewpoint to the World Bank’s top management. Conable was a career politician and friend of the President who served with Bush when the two were in the House in the 1970s.

The appointment of Preston comes as the World Bank faces vast new challenges in the wake of the Persian Gulf War. Preston will face a complex situation in the Gulf as he guides the bank in whatever role emerges for it in rebuilding the region.

Meanwhile, Eastern Europe, including the Soviet Union, will also need assistance as it moves to a market system. The Latin debt crisis continues to stalk policy makers, and many countries in the region face difficult times as they try to reform their economies. Moreover, the very poor of Africa seem to face an almost hopeless economic situation that few believe can be solved without radical changes.

Conable’s term runs through June 30, but he has said he will stay until Sept. 1 to smooth the transition. The 68-year-old indicated that he wanted to spend more time with his family in Upstate New York.

The World Bank is the biggest source of aid to the Third World, lending over $20 billion a year. It is also potentially a major source of funds to help Eastern Europe shift away from communist systems.

Preston, 64, was in charge of Morgan’s international banking for eight years and earlier headed its London office. He has also served as chief executive officer of the Federal Reserve Bank of New York, which handles international affairs for the Federal Reserve System.