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PROCEEDINGS AND DOCUMENTS OF THE

United Nations
Monetary and Financial
Conference
BRETTON WOODS, N EW HAMPSHIRE
J U L Y 1-22, 1944

Vol. I

UNITED

STATES

GOVERNMENT

PRINTING

OFFICE,

WASHINGTON

1948

DEPARTMENT OF STATE

Publication 2866
International Organization and
Conference Series 1,3

DIVISION OF PUBLICATIONS
OFFICE OF PUBLIC AFFAIRS

For sale by the Superintendent of Documents, U . S. Government P rin tin g Office
W ashington 25, D. C. - Price $3.50

Preface
HESE volumes of Proceedings and Documents of the United
Nations Monetary and Financial Conference held at Bretton
Woods, New Hampshire, July 1-22, 1944, are intended pri
marily as a collection of working papers. The documents included
in this publication are reproduced exactly as they were issued at
the Conference site, except for some slight rewording of docu
ment titles, and with no attempt at editing.
The substantive Conference documents have been arranged for
publication in numerical order, except for certain types of docu
ments such as press releases and French and Spanish translations,
which were believed more properly to belong in appendixes.
Appropriate annotations in the form of footnotes have been added
where required. Certain types of documents of a purely admin
istrative nature, such as announcements and news bulletins, have
been omitted. In addition, the tables of contents and social and
other announcements have been deleted from the issues of the
Journal. A complete list of all documents issued at the Conference,
with specific reference to those that have been omitted, has been
included as Appendix II. A list of the symbols used to differen
tiate the various series of documents has been included as Ap
pendix III.
The principal substantive documents are included in Volume I
of the Proceedings; the remaining substantive material, together
with a comprehensive index, will be found in Volume II. The
reader wr find the index to be the key to the many documents
ill
contained in the two volumes.
The Department of State, the International Monetary Fund,
and the International Bank for Reconstruction and Development
have collaborated in the arrangement of materials in these vol
umes; they have also shared the initial costs of publication.

Contents
Preface ...............................................................................
Introduction ....................................................................
Proceedings and Documents Issued at the Conference

Introduction
HEN currency systems were restored after the last war,
there was little or no attempt at coordination of meas
ures to provide stability; no machinery was set up to
facilitate an orderly adjustment of exchange rates when funda
mental conditions necessitated such a revision. The disturbances
of the 1930’s, involving a resort to competitive currency deprecia
tion, imposition of exchange restrictions, import quotas, and
other devices which all but stifled trade, made it clear that im
proved international financial arrangements were necessary. Cur
rency and exchange difficulties are generally regarded as con
tributing to a considerable extent to the economic and political
breakdown of that period.
During the war financial experts in all countries early came to
the recognition that the postwar world would stand in great need
of some stabilizing influence in the international financial field.
. Discussion of international financial objectives and procedures
was stimulated as the war progressed until the middle of 1943
when the first informal discussion of technical experts from a
large number of countries was held in Washington. Following
this meeting concrete proposals from Canada, China, France,
Great Britain, and the United States were exchanged, and in April
of 1944 the Joint Statement of Experts on the International
Monetary Fund1 was published simultaneously in Washington,
London, Moscow, Chungking, Ottawa, Rio de Janeiro, Mexico
City, and Habana. The report was also published in full or ab
breviated form in many other countries. It reported the views of
the experts of the numerous consulting countries and constituted
the basis for the development of the subsequent detailed plan.
Time had not permitted preparation of a similar statement with
respect to an international investment bank. The discussions had
indicated a large measure of agreement on a proposal for the
establishment of such a bank, but the plan was not so far ad
vanced as that for the monetary fund.
1 This joint statem ent is printed in Appendix IV, p. 1629.

INTRODUCTION

In May 1944 the President of the United States issued invita
tions to the 44 United and Associated Nations to attend a con
ference to be held at Bretton Woods, New Hampshire, in July
1944. The Conference was to discuss the proposed Monetary Fund
within the terms of the Joint Statement and was to consider, if
possible, the Bank proposal.
In order to facilitate the work of the Conference and to work
out some of the many details, a preliminary meeting was held at
Atlantic City, New Jersey. On June 15 a group of American finan
cial experts assembled there and were joined a few days later by
experts from 15 other countries. The group worked intensively,
endeavoring to deal with some of the unsettled questions and to
produce a more finished document. At this preliminary conference
the British experts presented suggestions on the Bank which in
volved some changes from the earlier plan but which met with
almost immediate approval of the experts of the other nations.
It became clear that the Conference would be able to consider the
establishment of an International Bank as well as a Fund. The
group at Atlantic City went directly from there to the Conference
at Bretton Woods, New Hampshire, which assembled on July 1,
1944.
The Bretton Woods Conference worked in a spirit of complete
cooperation and harmony. All the nations represented at Bretton
Woods were interested in finding the best means for cooperation
in dealing with international monetary and financial problems.
Every country realized that the effectiveness of its own economic
policies depended to a considerable extent upon removing the
monetary disorders and obstructions that stifled world trade in
the 1930’s. At the same time, every country represented at Bretton
Woods was concerned with protecting its own interests. In this
atmosphere of enlightened self-interest the United Nations found
the basis for their mutual advantage.
To carry out the work of the Conference three technical com
missions were established upon which each delegation was repre
sented. Commission I, under the chairmanship of Harry D. White,
of the United States, was charged with formulating the Articles
of Agreement of the International Monetary Fund; and Com
mission II, under Lord Keynes, of the United Kingdom, assumed
the same responsibility with respect to the International Bank
for Reconstruction and Development. Commission III, under the
chairmanship of Dr. Eduardo Suarez, of Mexico, was to consider
other means of international financial cooperation.
Each Commission, in turn, established several committees upon

INTRODUCTION

vii

which all countries were represented to handle much of the pre
paratory work. In addition numerous subcommittees were set up
to deal with the more technical and controversial problems as they
arose. As a general rule decisions were taken without formal vote
except in the main commissions.
The first weeks of the Conference were devoted almost ex
clusively to the wr
ork of Commission I on the International Mone
tary Fund. In fact, a major portion of the Fund articles were in
final form before Commission II on the Bank began to function
actively. This accounts, in large part, for the degree of parallelism
evident between the two instruments since many of the provisions
of the Fund articles and decisions in Commission I were adapted
for Bank purposes by Commission II in preparing the Bank arti
cles. Thus, in a number of cases, the history of a provision in the
Bank articles will require a careful check of the history of a
parallel provision in the Fund articles.
Procedurally, the work in Commission I on the Fund agreement
commenced with the Secretariat’s distributing a preliminary draft
of the proposed articles. In this working paper the pertinent
provisions of the Joint Statement of Experts were set forth, to
gether with such elaborations thereon as had been formulated by
the various delegations separately or jointly at Atlantic City. All
proposals relating to a specific provision of the Joint Statement
were grouped together and designated as “alternatives” for con
sideration by the Commission. The Commission allocated the
various proposals to the major functional committees which were
charged with developing the substantive provisions within their
respective jurisdictions. As each committee completed its sub
stantive work the articles were relayed to the Commission’s Draft
ing Committee which was charged with preparing the final docu
ment. Whenever, after exhaustive consideration, a committee
failed to achieve substantial agreement on a problem, the Com
mission transferred its consideration to the Special Committee.
This body was given final authority to resolve disputed issues of
substance, subject only to direct appeal to the Commission. The
Special Committee was small in membership, but its technical
competence together with its representative composition con
tributed substantially to the achievement of final accord on many
difficult issues.
Commission II followed the same general procedural lines as
those indicated for Commission I except that greater use was
made of ad hoc committees and subcommittees and the functions
of the Drafting and Special Committees of Commission I were

viii

INTRODUCTION

more or less merged into a single Drafting Committee in the case
of Commission II.
Commission III, with a less sharply defined mandate from the
Conference, employed a somewhat more flexible procedure.
The principal accomplishments of the Conference were the draw
ing up of two instruments—the Articles of Agreement of the Inter
national Monetary Fund and the Articles of Agreement of the
International Bank for Reconstruction and Development. The pro
posal for the establishment of the first of these bodies, the Fund,
was based on the premise that international financial cooperation
and the establishment of conditions conducive to international
trade are imperative to the economic welfare of the peoples of the
world and to world peace. Agreement was therefore reached that
there should be established an International Monetary Fund, with
powers and resources deemed adequate to perform the tasks as
signed to it, for the purpose of maintaining an international mone
tary system to promote foreign trade and that all nations should
thus work together toward the goal of world prosperity.
The second organization projected by the Conference was the
International Bank for Reconstruction and Development. Pro
posals for the establishment of the Bank were based on the prem
ise that postwar reconstruction and development are essential
to the general economic interest, that it should be begun as soon
as possible, and that expanded international investment is neces
sary to establish part of the capital for reconstruction and devel
opment. It was further agreed that a program for reconstruction
and development would aid political stability and foster peace
among all nations. In order to accomplish these aims, the Confer
ence recommended that an International Bank for Reconstruction
and Development be created and given the powers and resources
to carry out the program.
The Conference further recommended that the proposed Arti
cles of Agreement for the establishment of the Fund and of the
Bank2 should be studied carefully by the participating govern
ments and that special attention should be given to the needs of
those countries which had suffered from enemy occupation.
In addition, the Conference adopted seven resolutions, state
ments, and recommendations. Chief among them were: (1) a
2 The Articles of Agreement for the establishment of the Bank and of the
Fund having been accepted by the requisite number of governments, the in
augural meetings of the Boards of Governors of the International Bank for
Reconstruction and Development and the International Monetary Fund were
held simultaneously a t Wilmington Island near Savannah, Ga., Mar. 8-18,
1946.

INTRODUCTION

recommendation that the Bank for International Settlements be
liquidated; (2) a statement that, since it was impossible to study
the fluctuation of silver at this Conference, a further study be
made by the interested governments; (3) a recommendation that
all nations assist in the return of looted properties to their right
ful owners; and (4) a general recommendation that all nations
seek to cooperate more fully with each other to reduce obstacles
to trade, to bring about the orderly marketing of stable com
modities at fair prices, and to hasten the solution of various inter
national economic problems.
The Articles of Agreement of the International Monetary Fund
and the Articles of Agreement of the International Bank for Re
construction and Development were submitted for ratification to
the member governments during 1945. The agreements entered
into force on December 27, 1945, when representatives of 30
countries met and participated in a ceremony of signature held
in Washington, D.C. The inaugural meeting of the Boards of
Governors of the two institutions took place in Savannah, Georgia,
on March 8, 1946. The reports of the proceedings of this and sub
sequent meetings are available elsewhere in published form.

Volume I
PROCEEDINGS AND DOCUMENTS
ISSUED AT THE CONFERENCE

Proceedings and Documents Issued
at the Conference
Document 6

J OUR NA L
UNITED

N ATIONS

No. 1

MONETARY

AND

FINANCIAL

Bretton W o o d s, N ew Ham pshire

ORDER

THE

CONFERENCE
July 1, 1944

DAY

Saturday, July 1, 1944
12 Noon
3 p.m.
5 p.m.
9 p.m.
10 p.m.

Executive Meeting of the Chairmen of the
Delegations
Inaugural Plenary Session
Reception by the Delegation of the United
States
Committee on Rules and Regulations
Committee on Nominations

Banquet Room
Auditorium
The Hemicycle
Room A
Room B

(P. 2)
T e m p o r a r y P r e s id e n t of t h e C o n f e r e n c e , S e c r e t a r y
G e n e r a l , a n d T e c h n ic a l S e c r e t a r y G e n e r a l

In accordance with established international practice, the Presi
dent of the United States of America, as Chief of State of the
country serving as host to the Conference, has designated the
Chairman of the Delegation of the United States, the Honorable
Henry Morgenthau, Jr., as Temporary President of the Confer
ence, to serve until the election of the Permanent President.
In further observance of international practice, the President
has designated Warren Kelchner, Chief of the Division of Inter
national Conferences, Department of State, as Secretary General
of the Conference, and V. Frank Coe, Assistant Administrator,
Foreign Economic Administration, as Technical Secretary Gen
eral of the Conference.
I n v it a t io n o f t h e U n it e d S t a t e s o f A m e r ic a
to t h e C o n f e r e n c e

A paraphrase of the circular note sent by the Secretary of State

MONETARY AND FINANCIAL CONFERENCE

to the Washington missions, inviting them to attend the United
Nations Monetary and Financial Conference, follows:
The Secretary of State presents his compliments to Their Excel
lencies and Messieurs, the chiefs of mission or principal represen
tatives of the governments and authorities of the United Nations
and the nations associated with them in this war, and refers to
the Joint Statement of Technical Experts recommending the estab
lishment of an international monetary fund and outlining the prin
ciples for such a fund.
The Government of the United States feels that the joint state
ment marks an important step toward international economic co
operation in the post-war world and is confident that others have
been equally gratified by this evidence of the desire of the United
Nations and the Nations associated with them in this war to co
operate in meeting post-war economic problems.
As a further step toward the realization of this objective, the
President of the United States now proposes to call a United Na
tions conference for the purpose of formulating proposals of a
definite character for an international monetary fund and possibly
a bank for reconstruction and development. Of course, it would be
understood that the delegates would not be required to possess
plenipotentiary powers and that the proposals formulated at the
meeting would be submitted to the several governments and au
thorities for acceptance or rejection.
Accordingly, telegraphic instructions have been issued to the
chiefs of the appropriate diplomatic missions of the United States
to extend on behalf of the President a cordial invitation for the
respective governments and authorities to send (p. 3) one or
more delegates to the United Nations Monetary and Financial
Conference to convene in the United States on July 1, 1944. The
governments and authorities are being informed that the United
States Delegation to the Conference will be under the chairmanship
of the Secretary of the Treasury and that the names of the other
United States delegates, as well as information concerning the
site of the Conference and arrangements for the meeting, will be
forwarded at a later date.
The Government of the United States, believing that the early
formulation of precise proposals for an international monetary
fund and a bank for reconstruction and development is of vital
concern to all of the United Nations group, hopes that favorable
replies to the invitations extended on behalf of the President will
be received at the earliest possible moment, together with the
names of all of the members of the respective delegations.

PROCEEDINGS AND DOCUMENTS

Mr. Hull will be glad to communicate from time to time to Their
Excellencies and Messieurs, the chiefs of mission or principal rep
resentatives, detailed information concerning the arrangements
for the forthcoming Conference.
D e p a r t m e n t of S ta t e ,

Washington, May 26, 194-4-.
G o v e r n m e n t s a n d A u t h o r it ie s P a r t ic ip a t in g i n t h e
Co n fe r e n c e
French Committee of
National Liberation
Greece
Guatemala
H aiti
Honduras
Iceland
India
Iran
Iraq
Liberia
Luxembourg
Mexico
Netherlands
New Zealand
Nicaragua

A ustralia
Belgium
Bolivia
Brazil
Canada
Chile
China
Colombia
Costa Rica
Cuba
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Ethiopia

Norway
Panama
Paraguay
Peru
Philippine
Commonwealth
Poland
Union of South Africa
Union of Soviet
Socialist Republics
United Kingdom
United States
of America
Uruguay
Venezuela
Yugoslavia

(P. 4)
C r e d e n t ia l s o f D e l e g a t io n s

It will be appreciated .if the chairmen of the respective delega
tions will cause to be delivered to the Office of the Secretary Gen
eral, room 138, before noon on Sunday, July 2, the necesary cre
dentials in the form chosen by the respective governments or
authorities. It is anticipated that, as is customary, the credentials
will be in the form of a certificate, a communication from an ap
propriate official of the accrediting government or authority, or a
certification by the chief of mission at Washington.

Document 7
UNITED

N ATIONS

MONETARY

AND

FINANCIAL

CONFERENCE

Agenda
I. International Monetary Fund

A. Purposes, Policies and Quotas of the Fund
(Purposes and policies of the Fund, obligations of member

MONETARY AND FINANCIAL CONFERENCE

countries, transitional arrangements for the period during
which the Fund and member countries adopt the agreed poli
cies, relationship of the Fund with the public and with non
member countries, and relationship of member countries with
non-member countries, to consider the quota of member coun
tries, the basis for future revision of quotas, and payment of
subscriptions in gold and local currency.)
B. Operations of the Fund
(Operations of the Fund including the sale of exchange,
acquisition of gold by the Fund, borrowing by the Fund,
charges levied by the Fund, determination of parities and
changes in parities, guarantee of the value of the assets of
the Fund, regulation of capital transactions, apportionment
of scarce currencies, and provision for reserves and distri
bution of profits.)
C. Organization and Management
(Establishment of governing boards, basis for voting, selec
tion of officers, appointment of committees, location of offices
and depositories, provision for by-laws and regulations, pub
lication of reports by the Fund, information to be reported
to the Fund by member countries, and suspension from mem
bership, liquidation of reciprocal obligations on termination
of membership, and general liquidation of the Fund.)
I). Form and Status of the Fund
(Nature of the agreement establishing the Fund, the legal
position of the Fund in member countries, immunities of the
Fund and its assets, amendment of the Fund agreement and
the regulationship of the Fund to other international organi
zations.)
(P. 2)
II. Bank fo r R econstruction and D evelopm ent

A. Purposes, Policies, Capital and Subscription of the Bank.
(Purposes and policies of the Bank, relationship of the Bank
with the public and with non-member countries, and rela
tionship of member countries with non-member countries,
capital of the Bank, subscription of member countries, pro
portion of subscriptions to be paid in, payment in gold and
local currencies, further calls for payment on subscriptions
and the reservation of part of the unpaid capital as a surety
fund.)
B. Operations of the Bank
(Conditions under which the Bank may guarantee, partici
pate in or make loans, the manner in which it will aid and

PROCEEDINGS AND DOCUMENTS

encourage equity investment, provision for safeguarding
funds lent by the Bank, guarantee of the value of the local
currency assets of the Bank, provision for repayment of
principal and interest, borrowing by the Bank, the limita
tion on direct and contingent liabilities of the Bank, the
charges the Bank may levy, provision for reserves and dis
tribution of profits, security and foreign exchange transac
tions the Bank may undertake, and other operations of the
Bank.)
C. Organization and Management
(Establishment of governing boards, basis for voting, selec
tion of officers, appointment of committees, location of offices
and depositories, provision for by-laws and regulations, pub
lication of reports by the Bank, withdrawal or suspension
from membership, contingent liability of former members,
and general liquidation of the Bank.)
D. Form and Status of the Bank
(Nature of the agreement establishing the Bank, the legal
position of the Bank in member countries, immunities of the
Bank and its assets, amendment of the Bank agreement and
the relationship of the Bank to other international organiza
tions.)
III.

Other Measures for International Financial Cooperation

Document 8

G D /1
UNITED

NATIONS

MONETARY

AND

FINANCIAL

CONFERENCE

Inaugural Plenary Session
July 1, 1944
Assembly Hall, 3:00 p.m.

MONETARY AND FINANCIAL CONFERENCE

Appointment by the Temporary President of the Members of the
following Committees:
Committee on Credentials
Committee on Rules and Regulations
Committee on Nominations
Address by the Chairman of the Delegation of Mexico, the Hon
orable Eduardo Suarez.
Address by the Chairman of the Delegation of Brazil, the Honor
able Arthur de Souza Costa.
Address by the Chairman of the Delegation of Canada, the Hon
orable J. L. Ilsley.
Address by the Chairman of the Delegation of the Union of
Soviet Socialist Republics, the Honorable M. S. Stepanov.
Election of the Permanent President of the Conference.
Adjournment.
“The Star-Spangled Banner”.

Document l l 1
G D /2
Correction o f G D / l
UNITED

N A T IO N S

MONETARY

AND

FIN ANCIAL

CONFERENCE

Inaugural Plenary Session
July 1, 1944
Assembly Hall, 3:00 p.m.

Convening of the Conference by the Secretary General.
Message from the President of the United States.
Responses on behalf of the visiting delegations by the following:
Address by the Chairman of the Delegation of China, the
Honorable Hsiang-Hsi Kung.
Address by the Chairman of the Delegation of Czechoslovakia,
the Honorable Ladislav Feierabend.
Appointment by the Temporary President of the Members of
the following Committees:
Committee on Credentials
Committee on Rules and Regulations
Committee on Nominations
Address by the Chairman of the Delegation of Mexico, the
Honorable Eduardo Suarez.
1 Document 11 is a corrected version of Document 8.

PROCEEDINGS AND DOCUMENTS

Address by the Chairman of the Delegation of Brazil, the Honor
able Arthur de Souza Costa.
Address by the Chairman of the Delegation of Canada, the Honor
able J. L. Ilsley.
Address by the Chairman of the Delegation of the Union of Soviet
Socialist Republics, the Honorable M. S. Stepanov.
Election of the Permanent President of the Conference.
Address of the Permanent President of the Conference.
Adjournment.
“The Star-Spangled Banner”.

Document 13
UNITED

NATIONS

MONETARY

AND

FINANCIAL

CONFERENCE

Draft Regulations

Document 14
C /R R /1

Regulations of the United Nations Monetary and
Financial Conference
Chapter I

Re presentation

Art. 1. Representation at the Conference shall be confined to
the delegations accredited by the governments or authorities of
the United Nations and the nations associated with them in the
war, in response to the invitation extended by the President of
the United States of America to participate in the United Nations
Monetary and Financial Conference.
Chapter II

Personnel of the Conference
S ec t io n I
Temporary President
Art. 2. The President of the United States of America shall
designate the Temporary President of the Conference who shall
preside at the opening session and shall continue to preside until
the Conference elects a Permanent President.

MONETARY AND FINANCIAL CONFERENCE

Art. 3. At the opening plenary session of the Conference, the
Temporary President shall appoint the following committees:
(a) Committee on Credentials,
(b) Committee on Rules and Regulations, and
(c) Committee on Nominations.
S e c t io n II
Permanent President
Art. 4. The Permanent President of the Conference shall be
elected by an absolute majority of the delegations of states rep
resented at the Conference.
Art. 5. The duties of the Permanent President shall be:
First. To preside at the meetings of the Conference and to
submit for consideration in their regular order the subjects con
tained in the order of the day.
Second. To concede the floor to the delegates in the order in
which they may have requested it.
Third. To decide all questions of order raised during the debates
of the Conference. Nevertheless, if any delegate shall so request,
the ruling made by the chair shall be submitted to the Conference
for decision by a majority vote of the delegations.
(p. 2) Fourth. To call for votes and to announce the result of
the vote to the Conference.
Fifth. To transmit to the delegates in advance, through the Sec
retary General, the order of business of each plenary session.
Sixth. To prescribe all necessary measures for the maintenance
of order and strict compliance with the regulations.
S ec t io n III
Vice Presidents
Art. 6. Four Vice Presidents shall be elected by an absolute
majority of the delegations of states represented at the Conference.
In the absence of the Permanent President, a Vice President shall
preside at the plenary sessions of the Conference. A Vice Presi
dent, when acting as President, shall have the same powers and
duties as the President.
S e c t io n IV

Secretary General
Art. 7. The Secretary General of the Conference shall be
appointed by the President of the United States of America.
The duties of the Secretary General are:
First. To organize, direct, and coordinate the work of the sec
retaries, assistant secretaries, secretaries of committees, inter

PROCEEDINGS AND DOCUMENTS

preters, clerks and other employees whom the Government of the
United States of America may appoint for service with the
secretariat of the Conference. He shall also assist w7
ith and
coordinate the work of the several Technical Commissions of the
Conference.
Second. To serve as the principal adviser to the President of
the Conference on parliamentary, procedural and protocol mat
ters.
Third. To receive, distribute, and answer the official corre
spondence of the Conference in conformity with the resolutions of
that body.
Fourth. To prepare, or cause to be prepared under his super
vision, the minutes of the meetings of the Conference, the Com
mittees, and the Technical Commissions in conformity wr the
ith
notes the secretaries shall furnish him.
F ifth . To distribute among the Committees and Technical Com
missions the matters on which they are required to present reports,
and place at the disposal of the Committees everything that may
be necessary for the discharge of their duties.
(p. 3) Sixth. To prepare the order of the day in conformity
with the instructions of the President.
Seventh. To be the intermediary between the delegations or their
respective members in matters relating to the Conference, and
between the delegates and the authorities of the Government of
the United States of America.
Eighth. To perform such other functions as may be assigned to
him by the regulations, by the Conference, or by the President.
S ec tio n V

Technical Secretary General
Art. 8. The Technical Secretary General of the Conference
shall be appointed with the approval of the President of the
United States of America.
The duties of the Technical Secretary General are:
F irst. To coordinate the work of the Technical Commissions
and their Committees.
Second. To plan and supervise the work of the Secretaries of
the Technical Commissions and their Committees.
Third. To supervise the preparation of the reports and minutes
of the Technical Commissions and their Committees.
Fourth. To advise the delegations on questions pertaining to
the technical work of the Conference.
F ifth . To advise with the Secretary General on the preparation
of the Final Act and the Proceedings of the Conference,

MONETARY AND FINANCIAL CONFERENCE

S e c t io n VI
Participants
Art. 9. Participants in the Conference shall be limited to
the following:

(p. 4) (a) Delegates accredited by the governments and
authorities to which the invitations on behalf of the President of
the United States of America have been extended. Delegates
accredited by the invited governments and authorities shall have
the privilege of attending all plenary sessions and all meetings
of the Technical Commissions of the Conference; shall have
the privilege of addressing the plenary sessions and meetings
of the Technical Commissions and their Committees subject only
to regulations hereafter described; shall have the privilege of
voting at all plenary or general sessions and at all of the Technical
Commission and Committee meetings subject to restrictions here
after specified concerning the casting of a delegation vote.
(b) Technical advisers and other members of the delegations
of the governments and authorities which have been invited to
participate may attend with their delegates the plenary or com
mittee sessions and meetings of the Technical Commissions but
they shall not have the right to vote except as hereafter provided.
Such other persons may attend as the Steering Committee of
the Conference may determine.
Chapter III

General Committees of the Conference

Art. 10. The following General Committees shall be consti
tuted :
(a) Committee on Nominations, composed of five members
appointed by the Temporary President. The Nominating Com
mittee shall propose candidates for the following offices: Perma
nent President of the Conference; four Vice Presidents of the Con
ference; Chairmen and Vice Chairmen and Reporting Delegates
of the Commissions; Chairmen and Reporting Delegates of the
Committees of Commissions I and II; and the members of the
Steering Committee.
(b) Steering Committee, composed of the President of the
Conference as Chairman and ten other members elected by the
Conference, following the receipt of the recommendations of the
Committee on Nominations.
(c) Committee on Credentials, composed of five members
appointed by the Temporary President.

PROCEEDINGS AND DOCUMENTS

(d) Committee on Rules and Regulations, composed of five
members appointed by the Temporary President.
(e) Coordinating Committee, composed of seven members, the
Committee to be constituted by the Steering Committee.
Art. 11. Prior to the first plenary session, a meeting of the
Chairmen of the delegations shall be held at which the organiza
tion of the Conference shall be considered and recommendations
formulated for submission to the Conference at the first plenary
session.
(p.5)
Chapter IV

Art. 12. The Conference shall be divided into the following
three Technical Commissions and Committees and such other Com
mittees as the respective Commissions shall determine.
C o m m is s io n I. International Monetary Fund
Committee 1. Purposes, Policies and Obligations of the
Fund.
Committee 2. Operations of the Fund.
Committee 3. Organization and Management.
Committee 4. Form and Status of the Fund.
C o m m is s io n II. Bank for Reconstruction and Development.
Committee 1. Purposes, Policies, Capital and Subscription
of the Bank.
Committee 2. Operations of the Bank.
Committee 3. Organization and Management.
Committee 4. Form and Status of the Bank.
Co m m is s io n III. Other Means of International Financial Coop
eration.
Art. 13. The Reporting Delegate of each Commission shall
present to a plenary session of the Conference the conclusions at
which the Technical Commissions may arrive after they have been
reviewed by the Coordinating Committee.
Art. 14. The representative of the Delegation elected as Chair
man or as Recording Secretary of a Committee of a Technical
Commission, shall be the Chairman of the Delegation indicated or
such other member of that Delegation as the Chairman may desig
nate.
Art. 15. Each delegation shall be entitled to be represented
by one or more of its members in each of the Technical Com
missions. The names of such members shall be transmitted by
each delegation to the Secretary General as soon as possible and
in any event before the first regular meeting of each Commission.

MONETARY AND FINANCIAL CONFERENCE

(P. 6)
Chapter V

Language of the Conference

Art. 16.
ference.

English shall be the official language of the Con
Chapter VI

The Delegations

Art. 17. A delegation not present at the session at which a
vote is taken may deposit or transmit its vote in writing to the
Secretary, which shall be counted provided it has been transmitted
or deposited before the vote is declared closed. In this event, the
delegation shall be considered as present and its vote counted.
Art. 18. Each delegation shall be entitled to one vote, to be
cast through the chairman or such member as may be designated
to act for the delegation on questions considered at Technical
Commission and Committee meetings or at the plenary sessions
of the Conference. Delegations may arrange for the substitution
of delegates at specified meetings in the manner provided in Ar
ticle 26.
Chapter VII

Meetings of the Conference Conference Committees,
and Technical Commissions

Art. 19. The first meeting of the Conference shall be held
at the time and place designated by the Government of the United
States of America and further sessions on such days as the Con
ference may determine.
Art. 20. Attendance by a majority of the nations participating
in the Conference shall constitute a quorum at plenary sessions.
Similarly, the presence of a majority of the delegations participat
ing in the Technical Commissions shall constitute a quorum at
the meetings of the respective Commissions and the presence of
the same proportion of members of General Committees shall
constitute a quorum.
Art. 21. In the deliberations of the plenary sessions as well
as in the Committees and Technical Commissions, the delegation
of each state represented at the Conference shall have but one
vote and the votes shall be taken separately in alphabetical order
in the English language and recorded in the minutes of the re
spective sessions.
(p. 7) Art. 22. Votes as a general rule shall be taken orally
unless any delegate should request that they be taken in writing.

PROCEEDINGS AND DOCUMENTS

In this case each delegate shall deposit in an urn a ballot containing
the name of the nation which it represents and the sense in which
the vote is cast. The secretary shall read aloud these ballots,
count the votes, and record the results.
Art. 23. The Conference shall not proceed to vote on any re
port, project or proposal relating to any of the subjects included
in the agenda unless at least two-thirds of the nations attending
the Conference are represented by one or more delegates. The
same proportion of the delegations participating in the Technical
Commissions shall be present before a vote is undertaken at
Commission meetings. The General Committees likewise shall
proceed to vote only with the attendance of at least two-thirds of
their respective members. In the event of written voting at any
session or meeting, the count shall be taken of the votes deposited
in writing as provided for in Articles 21 and 22, the absent dele
gates being considered present, only for the purpose of the vote,
when they have submitted their vote in the manner indicated.
Art. 24. Except in cases expressly indicated in these Regula
tions, proposals, reports and projects under consideration by the
Conference or by any of the Committees or Technical Commissions
shall be considered approved when they have obtained the affirm
ative vote of an absolute majority of the delegations represented
by one or more of their members at the meeting where the vote
is taken. Any delegation which may have deposited its vote
in the manner prescribed in Article 18 shall be considered as
present at the meeting.
Art. 25. The following may attend the sessions of the Con
ference and the meetings of the Technical Commissions and of
their committees: the delegates, their technical advisers and other
members of their delegations; members of the Secretariat of the
Conference; and any others to whom the Steering Committee of
the Conference may extend this privilege.
Art. 26. Should it be impossible for a delegate to attend a
particular session, either a plenary session or a meeting of a Tech
nical Commission or Committee, the delegation may designate a
member to substitute for him. In such case the one so designated
shall have the right to voice and vote on behalf of his delegation.
Notification of such appointment shall be communicated in advance
to the Secretary General, to the Secretary of the Committee, or
to the Secretary of the Technical Commission, as the case may be.
Art. 27. The opening and closing sessions of the Conference
shall be public. Other public sessions may be held when previously
agreed upon and so ordered by a majority vote of the Steering

MONETARY AND FINANCIAL CONFERENCE

Committee. The meetings of [p. 8] the Technical Commissions
and their Committees shall be private unless otherwise ordered
by a majority vote of the delegations. The meetings of the General
Committees shall be private.
Art. 28. All projects or proposals which a delegation may wish
to present to the Conference shall be delivered to the Secretary
General as soon as possible but not later than one week after the
opening plenary session of the Conference. No project or proposal
shall be considered until copies thereof shall have been distributed
by the Secretary General among the participating delegations. No
proposal of a topic which constitutes an addition to the agenda
shall be included unless it has the consent of two-thirds of the
Steering Committee.
. Chapter VIII

Minutes of the Sessions and Publications of the Meeting

Art. 29. The Secretary General shall cause to be kept verbatim
minutes of the public plenary sessions of the Conference. The
Secretary General shall prepare a summarized record of the pro
ceedings of private plenary sessions which shall be preserved in
the archives of the Conference.
Art. 30. The Secretary of each Technical Commission and
of each Committee shall prepare brief minutes of each session
which shall be approved by the respective Chairmen before pres
entation to the Secretary General for distribution to the delega
tions. These minutes shall contain a record of the conclusions at
which the Commission or Committee may arrive.
Art. 31. The minutes of all private meetings, whether of the
Conference, the Technical Commissions or Committees, shall be
available to the participating governments and authorities but
shall be regarded as confidential.
Art. 32. The conclusions at which the Conference may arrive
shall be incorporated in a’ Final Act which shall be signed by the
delegates at the final session.
Art. 33. The Government of the United States of America
shall publish the minutes of the public plenary sessions and the
Final Act and shall forthwith transmit certified copies to the gov
ernments participating in the Conference and to the delegates
attending the sessions.
Art. 34. The original minutes and the original copy of the
Final Act shall be preserved in the archives of the Government of
the United States of America to which they shall be sent by the
Secretary General.

PROCEEDINGS AND DOCUMENTS

(P. 9)
Chapter IX

Approval of and Amendments to the Regulations

Art. 35 These regulations, after approval by an absolute ma
jority of the delegations meeting in plenary session, shall be sub
ject to subsequent modification only upon the recommendation, by
a two-thirds vote, of the Steering Committee and by vote of
two-thirds of the Conference meeting in plenary session.

Document 21
C /R R /2

Notice of Meeting
C o m m it t e e o n R u l e s a n d R e g u l a t io n s
Saturday, July 1, 1944, 9:00 p.m.—Hemicycle Room

Members:
China ................................ .H. H. Kung, Chairman
Nicaragua ........................ .Guillermo Sevilla Sacasa
Poland .............................. .Ludwig Grosfeld
Australia .......................... .Leslie G. Melville
Secretary: Phillip Jessup

Document 22
C /N /l

Notice of Meeting
C o m m it t e e o n N o m in a t io n s
Saturday, July 1, 1944, 10:00 p.m.—Room B

Members:
New Zealand.................... .Walter Nash, Chairman
Luxembourg .................... .Hugues Le Gallais
Honduras .......................... .Julian R. Caceres
Iceland .............................. .Magnus Sigurdsson
Peru .................................. .Pedro Beltran
Secretary: Mr. V. Frank Coe

MONETARY AND FINANCIAL CONFERENCE
Document 23
C /C R /1

Notice of Meeting
C o m m it t e e o n C r e d e n t ia l s
Sunday, July 2, 9:00 p.m.—Room A

Members:
Cuba .................................. Eduardo I. Montoulieu,
Chairman
Netherlands...................... J. W. Beyen
Union of South A frica .. . . S. F. N. Gie
Liberia .............................. William E. Dennis
Norway ............................ Wilhelm Keilhan
Secretary: Edward G. Miller, Jr.

Document 26 (21)

Notice of Meeting
C o m m it t e e o n R u l e s a n d R e g u l a t io n s
Saturday, July 1, 1944, 9:00 p.m.—Hemicycle Room

Members:
China ................................
Nicaragua ........................
Poland ..............................
Australia ..........................
I r a q ....................................
Secretary: Phillip Jessup

H. H. Kung, Chairman
Guillermo Sevilla Sacasa
Ludwig Grosfeld
Leslie G. Melville
Ibrahim Kamal

Document 28

J OURNAL
UNITED

NATIONS

No. 2

MONETARY

AND

FINANCIAL

Bretton W o o d s, N ew H am pshire

ORDER

THE

CONFERENCE
July 2, 1944

DAY

Sunday, July 2, 1944
9 p.m.

Committee on Credentials

Room A

PROCEEDINGS AND DOCUMENTS

(P. 6)
I n a u g u r a l P l e n a r y S e ssio n
(Auditorium, July 1, 3 p.m.)

The Inaugural Plenary Session of the United Nations Monetary
and Financial Conference met in the Auditorium at 3 p.m., July 1,
1944. The Conference was convened by the Secretary General,
who announced that in accordance with international practice,
the President of the United States had designated as Temporary
Chairman of the Conference, the Honorable Henry Morgenthau,
Jr. Mr. Morgenthau took the Chair and called on the Secretary
General to read a message of welcome from% President of the
the
United States. The Honorable Hsiang-Hsi Kung, on behalf of the
Delegation of China, and the Chairman of the Delegation of
Czechoslovakia, the Honorable Ladislav Feierabend, responded.
The Temporary President appointed the following committees,
in accordance with a resolution introduced by Sir A. J. Raisman,
Chairman of the Delegation of India, and duly seconded and passed
by the Conference:
C o m m it t e e o n C r e d e n t ia l s

Cuba
Netherlands
Union of South Africa
Liberia
Norway
C o m m it t e e

China
Nicaragua
Poland
Australia
Iraq

Eduardo I. Montoulieu, Chairman
J. W. Beyen
S. F. N. Gie
William E. Dennis
Wilhelm Keilhan
on

R u l e s a n d R eg u l a t io n s

H. H. Kung, Chairman
Guillermo Sevilla Sacasa
Ludwig Grosfeld
Leslie G. Melville
Ibrahim Kamal
C o m m it t e e o n N o m in a t io n s

New Zealand
Walter Nash, Chairman
Luxembourg
Hugues Le Gallais
Honduras
Julian R. Caceres
Iceland
Magnus Sigurdsson
Peru
Pedro Beltran
The Chairman of the Delegation of Mexico, the Honorable
Eduardo Suarez, nominated Secretary Morgenthau for Permanent
President of the Conference. The motion was seconded by the
Chairman of the Delegation of Brazil, the Honorable Arthur de
Souza Costa, the Chairman of the Delegation of Canada, the

MONETARY AND FINANCIAL CONFERENCE

Honorable J. L. Ilsley; and the Chairman of the Delegation of
the Union of Soviet Socialist Republics, the Honorable M. S.
Stepanov. Thereupon, Secretary Morgenthau was unanimously
elected Permanent President of the Conference.
Secretary Morgenthau addressed the Conference. (This and
other addresses of the Inaugural Plenary Session have been printed
and distributed separately.)
The meeting was adjourned at 4:10 p.m. with the playing of
The Star-Spangled Banner.
(P. 7)
• M e e t in g s o f G e n e r a l C o m m it t e e s

The Committee on Rules and Regulations met on Saturday,
July 1, 1944, at 9 p.m. in the Hemicycle Room with H. H. Kung
(China) as Chairman. It will report to the plenary session at
10 a.m. on Monday.
The Committee on Nominations met on Saturday, July 1, 1944,
at 10 p.m. with Walter Nash (New Zealand) as Chairman. It
will report to the plenary session at 10 a.m. on Monday.
C o r r e c t io n i n D r a f t R e g u l a t io n s o f t h e C o n f e r e n c e

A number of the mimeographed copies of the draft regulations
of the Conference (Doc. No. 13) which were distributed on Sat
urday evening contain a typographical error. Chapter III, article
10 (b) should read as follows:
“ (b) Steering Committee, composed of the President of
the Conference as Chairman and ten other members elected
by the Conference, following the receipt of the recommendations
of the Committee on Nominations.”
C r e d e n t ia l s o f D e l e g a t io n s

It will be appreciated if the chairmen of the respective delega
tions will cause to be delivered to the Office of the Secretary Gen
eral, room 136, before noon today, the necessary credentials in
the form chosen by the respective governments or authorities.
It is anticipated that, as is customary, the credentials will be in
the form of a certificate, a communication from an appropriate
official of the accrediting government or authority, or a certifica
tion by the chief of mission at Washington.

PROCEEDINGS AND DOCUMENTS

Document 32

SA/1
Document F-l
July 1 ,1 9 4 4

Preliminary Draft of Suggested Articles of Agreement
for the Establishment of an International Monetary Fund
There is attached a preliminary draft of provisions which have
been submitted to the Secretariat.
At the top of each page there is set forth the pertinent pro
vision of the Joint Statement of Principles. Immediately below
appear alternative and supplementary texts submitted to the
Secretariat. It is expected that further suggestions will be
made and as they are presented to the Secretariat, they will be
distributed for inclusion in the attached draft.
The Secretariat has attempted to put the various proposals
together in a manner which would be helpful in the consideration
of the alternative provisions suggested. The order adopted con
forms in general to the Joint Statement but is in no way indicative
of where the provisions might appropriately appear in a final
document.
The Secretariat is aware of the possibility that errors and omis
sions have been made in the attached draft, despite the care em
ployed in its preparation. Accordingly, the Secretariat requests
the indulgence of any delegation whose proposals may have been
partially or wholly omitted or improperly presented. If the
attention of the Secretariat is called to any error or omission,
such error or omission will be corrected promptly.
Three types of alternatives have been submitted: (1) Sugges
tions that do not appear to make substantial changes in the Joint
Statement provisions but merely modify the language for pur
poses of clarity, (2) suggestions that substantially modify the
Joint Statement provisions, and (3) suggestions that supplement
the provisions of the Joint Statement. For the convenience of the
reader, the Secretariat has used symbols to indicate the character
of the alternative provisions submitted. In each case the char
acterization is that of the Secretariat and, if errors have been
made, the proper characterization (p. ii) should be communi
cated to the Secretariat by the delegation proposing the alternative
provision so that corrections can be made. The symbols employed
are:
* = No substantial change
& = Substantial change
# = Supplementary material

MONETARY AND FINANCIAL CONFERENCE

(P- 1)
J o in t S t a t e m e n t I

I. Purpose and Policies of the Fund
, The Fund will be guided in all its decisions by the purposes and
policies set forth below:
1. To promote international monetary cooperation through a
permanent institution which provides the machinery for consulta
tion on international monetary problems.
2. To facilitate the expansion and balanced growth of inter
national trade and to contribute in this way to the maintenance
of a high level of employment and real income, which must be a
primary objective of economic policy.
3. To give confidence to member countries by making the
Fund’s resources available to them under adequate safeguards,
thus giving members time to correct maladjustments in their bal
ance of payments without resorting to measures destructive of
national or international prosperity.
4. To promote exchange stability, to maintain orderly ex
change arrangements among member countries, and to avoid
competitive exchange depreciation.
5. To assist in the establishment of multilateral payments
facilities on current transactions among member countries and
in the elimination of foreign exchange restrictions which hamper
the growth of world trade.
6. To shorten the periods and lessen the degree of disequilib
rium in the international balance of payments of member coun
tries.
7 /1 /4 4

J.S. Ar*. I

(p. la)
A lternative A

The purposes of the International Monetary Fund are:
*

1. To promote international monetary co-operation by pro
viding permanent machinery for consultation on international
monetary problems.
* 2. To facilitate the expansion and balanced growth of interna
tional trade and to contribute thereby to the maintenance of
high levels of employment and real income, as a primary ob
jective of economic policy.
* 3. To give confidence to member countries by making the
Fund’s resources available to them under adequate safeguards,
thus giving them time to correct maladjustments in their balance

PROCEEDINGS AND DOCUMENTS

*
*

of payments without resort to measures destructive of national
or international prosperity.
4. To promote exchange stability, to maintain orderly ex
change arrangements among member countries, and to avoid
competitive exchange depreciation.
5. To assist in the establishment of a multilateral system of
payments in respect of current transactions between members
and in the elimination of foreign exchange restrictions which
hamper the growth of world trade.
6. To shorten the periods and lessen the degree of disequi
librium in the international balance of payments of-members.
The Fund shall be guided in all its decisions by the purposes
set forth above.

7 /1 /4 4

J.S. A r U

(p -lb )
Alternative B
(Substitute for Joint Statem ent I, subdivisions 2, 3, 4 and 6)

2. To facilitate the expansion and balanced growth of inter
national trade and to contribute to a high level of employment
and real income which must be a primary objective of economic
policy.
& 3. To make the Fund’s resources available to members under
adequate safeguards and to assist them to correct maladjust
ments in their balance of payments without resort to measures
destructive of national or international prosperity.
& 4. To secure orderly changes in exchange rates among mem
ber countries where necessary to correct exchange disequilib
rium, thus promoting exchange stability and avoiding compet
itive exchange depreciation.
* 6. In accordance ivith the above principles, to shorten the
periods and lessen the degree of disequilibrium in the interna
tional balance of payments of member countries.
Alternative C
(Substitute for Joint Statem ent I, subdivision 2)

2. To facilitate the expansion and balanced growth of inter
national trade, to assist in the fuller utilisation of the resources
of economically underdeveloped countries and to contribute
thereby to the maintenance in the world as a whole of a high
level of employment and real income, which must be a primary
objective of economic policy;
7 4 9 0 1 3 — 48— 3

MONETARY AND FINANCIAL CONFERENCE

Alternative D
(Substitute for Joint Statement I, subdivision 4)

4. To promote exchange stability and avoid competitive ex
change depreciation by securing, where necessary to correct
exchange disequilibrium, orderly changes in exchange rates
among member countries.

7 /1 /4 4

J.S. Art. I

(P. lc)
Alternative E
(Substitute the following for Joint Statement I, subdivision 4)

&
&

4. To promote exchange stability.
5. To avoid competitive exchange depreciation by securing,
where necessary to correct fundamental disequilibria, orderly
changes in par values of member currencies.
Alternative F
(Add as a new subdivision)

To correlate procedures for exchange stability, with a
policy for the promotion of international investment by other
international financial agencies and to evolve a working relationshio with such agencies.
Alternative G
(Add as a new subdivision)

To promote and facilitate the settlement of abnormal in
debtedness arising out of the war.

7 /1 /4 4

J.S. Art. I

(p. 2)
J o in t S t a t e m e n t I I , 1

II. Subscription to the Fund
1.
Member countries shall subscribe in gold and in their local
funds amounts (quotas) to be agreed, which will amount altogether
to about $8 billion if all the United and Associated Nations sub
scribe to the Fund (corresponding to about $10 billion for the
world as a whole).
Alternative A

# Section 1. Countries Eligible for Membership.
The members of the Fund shall be those of the countries rep
resented at the United Nations Monetary and Financial Con

PROCEEDINGS AND DOCUMENTS

ference whose governments accept membership in the Fund.
Membership in the Fund shall be open to other countries at
such times and in accordance with such terms as may be pre
scribed by the Fund.
^Section 2. Quotas.
Each member shall be assigned a quota. The quotas of the
countries represented at the United Nations Monetary and Fi
nancial Conference shall be those set forth in Schedule A.
(Schedule A to be added later)

Quotas of other countries which become members of the
Fund shall be determined by the Fund.
# Section 3. Time and Place of Payment.
Each member shall provide the Fund at the appropriate de
pository with the full amount of its quota on or before the date
fixed for exchange transactions in its currency to begin. Any
member whose quota is increased shall provide the full amount
of the increase within thirty days of the date on which the
member approves the increase in its quota.
7 /1 /4 4

J.S. Art. II
Sec. 1

(p. 2a)
Alternative B
(It is suggested to add to the text of A lternative A :)

Notwithstanding the fundamental principles on payment of
quotas particular arrangements may be made with countries
whose currency system has been disrupted as a result of enemy
occupation. Such arrangements may not extend over more than
nine months i.e., after nine months, at the latest, the obligations
of the country will be the same as they would have been if such
an exception had not been granted. The government of the
respective country has to guarantee by a specific act that the
fund will not suffer any loss because of that particular arrange
ment.

7 /1 /4 4

J.S. Art. li
Sec. 1

(P. 3)
J o in t S ta te m e n t

II, 2

2.
The quotas may be revised from time to time but changes
shall require a four-fifths vote and no member’s quota may be
changed without its assent.

MONETARY AND FINANCIAL CONFERENCE

Alternative A

* Section 4. Adjustm ent of Quotas.
The Fund may, at intervals of five years, adjust the quotas
of the members. It may also, if it thinks fit, consider at any
other time the adjustment of any particular quota at the request
of the member concerned. A four-fifths majority vote shall be
required for any change in quotas and no quota shall be changed
without the consent of the member concerned.
7 /1 /4 4

J.S. Art. II
Sec. 2

(P. 4)
J o in t S t a t e m e n t II, 3

3.
The obligatory gold subscription of a member country shall
be fixed at 25 percent of its subscription (quota) or 10 percent
of its holdiiigs of gold and gold-convertible exchange, whichever
is the smaller.
Alternative A

* Section 5. Initial Payments.
Each member shall pay in gold the smaller of (a) twenty-five
percent of its quota or (b) ten percent of its official holdings of
gold and gold-convertible exchange1 o n ------------. In the case
of any member occupied by the enemy whose holdings are not
ascertainable as o f ------------, the Fund shall fix an appropriate
alternative date. The data necessary to determine official hold
ings of gold and gold-convertible exchange shall be furnished by
the members as provided in this Agreement.
Each member shall pay the balance of its quota in its own
currency.
* Section 6. Payments When Quotas are Changed.
(a) Each member whose quota is increased shall pay twentyfive percent of the increase in gold. Each member shall pay
the balance of any increase in its own currency. If, however,
on the date the member approves an increase, its holdings of
gold and gold-convertible exchange are less than its new quota,
the Fund may reduce the portion of the increase to be paid in
gold.
(b) Each member whose quota is reduced shall receive from
the Fund within thirty days of the reduction an amount in its
own currency or gold equal to the reduction. In making this
1The phrase “gold and gold-convertible exchange” is subject to definition
and to such change in terminology as may be agreed.

PROCEEDINGS AND DOCUMENTS

payment, the Fund shall pay to such member only the amount
of gold necessary to prevent reducing the holdings of the Fund
of that currency below seventy-five percent of such new quota
of the member.
7 /1 /4 4

J.S. Art. II
Sec. 3

(p. 4a)
Alternative

(Add at the end of Joint Statement II, 3)

Any country represented at the United Nations Monetary
and Financial Conference whose home areas have suffered from
enemy occupation and hostilities during the present war, may
reduce its gold payment to between seventy-five and fifty percent
of the amount it would otherwise have to pay, dependent on the
extent of the damage caused to it by the enemy occupation and
hostilities.
Alternative C
(Add to Joint Statement II, 3)

Any country represented at the United Nations Monetary
and Financial Conference whose home areas have suffered sub
stantial damage from enemy action or occupation during the
present war, may reduce its initial gold payment to --------per cent of the amount it would otherwise have to pay.

7 /1 /4 4

J.S. Art. II
Sec. 3

(p. 5)
III. Transactions with the Fund
J o in t S ta te m e n t

III, 1

1.
Member countries shall deal with the Fund only through
their Treasury, Central Bank, Stabilization Fund, or other fiscal
agencies. The Fund’s account in a member’s currency shall be kept
at the Central Bank of the member country.
Alternative A

* Section 1. Agencies Dealing with the Fund.
Each member country shall deal with the Fund only through
its Treasury, Central Bank, Stabilization Fund or other similar

MONETARY AND FINANCIAL CONFERENCE

fiscal agency and the Fund shall deal only through the same
agencies.
(Second sentence of J.S. dealt with elsewhere)
7 /1 /4 4

J.S. Art! Ill
Sec. 1

(p. 6)
J o in t S ta te m e n t

III, 2

2.
A member shall be entitled to buy another member’s currency
from the Fund in exchange for its own currency on the following
conditions:
(a) The member represents that the currency demanded is pres
ently needed for making payments in that currency which
are consistent with the purposes of the Fund.
(b) The Fund has not given notice that its holdings of the cur
rency demanded have become scarce in which case the pro
visions of VI, below, come into force.
(c) The Fund’s total holdings of the currency offered (after hav
ing been restored, if below that figure, to 75 percent of the
member’s quota) have not been increased by more than 25
percent of the member’s quota during the previous 12 months
and do not exceed 200 percent of the quota.
(d) The Fund has not previously given appropriate notice that
the member is suspended from making further use of the
Fund’s resources on the ground that it is using them in a
manner contrary to the purposes and policies of the Fund; but
the Fund shall not give such notice until it has presented to
the member concerned a report setting forth its views and has
allowed a suitable time for reply.
The Fund in its discretion and on terms which safeguard its
interests waive any of the conditions above.
7 /1 /4 4

J.S. Art. Ill
Sec. 2

(p. 6a)
Alternative A

Section 2.

Conditions upon which any Member may Purchase
Currencies of other Members.
A member shall be entitled to buy the currency of another
member from the Fund in exchange for its own currency sub
ject to the following conditions:
*
(1) The member initiating the purchase represents that the
currency requested is presently needed for making pay

PROCEEDINGS AND DOCUMENTS

ments in that currency which are consistent with the
'provisions of this Agreement;
*
(2) The Fund has not given notice under Article VI that its
holdings of the currency requested have become scarce;
*
(3) The total holdings of the Fund in the currency of the
member initiating the purchase (after having been re
stored, if below that figure, to seventy-five percent of the
quota of such member) have not increased during the pre
vious twelve months by more than twenty-five percent
of the quota of such member and do not exceed two hun
dred percent of the quota; and
& (4) The Fund has not previously declared under Section 3
of this Article that the member initiating the purchase is
ineligible to use the resources of the Fund.
The Fund may, in its discretion, and on terms which safeguard
its interests, waive any of these conditions. In special circum
stances, where the Fund considers it necessary, it may require
collateral security as a condition of such waiver.
& Section 2a. Conditions Governing Purchases for Capital
Transfers.
If the Fund’s holdings of the currency of a member have
remained below 75 percent of its quota for a period not less
than six months such member shall be entitled, notwithstanding
the provisions of Article V, Section 1, to buy the currency of
another member from the Fund for its own currency for any
purpose, including capital transfers, provided, however, that
7 /1 /4 4

J.S. Art. Ill
Sec. 2

(p. 6b) purchases for capital transfers may not have the
effect of raising the Fund's holdings of the currency of such
member above 75 percent of its quota, or reducing the Fund's
holdings of the currency purchased below 751 percent of the
quota of the member whose currency is purchased.
& Section 3. Declaring Members Ineligible to Use the Resources
of the Fund.
Whenever the Fund is of the opinion that any member is
using the resources of the Fund in a manner contrary to the
purposes and policies of the Fund, it shall present to the mem
ber a report setting forth the views of the Fund and stating a
suitable time for reply. After presenting such a report to a
member the Fund may limit the use of its resources by the
member. If no reply to the report is received from the member
1Should this figure be 60, 75 or 100 percent?

MONETARY AND FINANCIAL CONFERENCE

within the stated time, or the reply received is unsatisfactory,
the Fund may continue to limit the member’s use of the Fund’s
resources or, after giving reasonable notice to the member,
declare it ineligible to use the resources of the Fund.
Alternative B
(Substitute for Joint Statem ent III, 2 (c).)

(c) The Fund’s total holdings of the currency offered (after
having been restored, if below that figure, to 75 percent of the
member’s quota) have not been increased by more than w y 3
percent of the member’s quota during the previous 12 months
and do not exceed 200 percent of the quota.

7 /1 /4 4

J.S. Art. Ill
Sec. 2

(P. 6c)
Alternative C
(Amend Joint Statem ent III, 2 as follows:)

It is suggested to change the term “consistent with the pur
poses of the Fund” to “consistent with the purposes and pro
visions of the Fund.”
Alternative D
(Substitute for Joint Statem ent III, 2 (c).)

The total holdings of the Fund in the currency of the
member country initiating the purchase shall not exceed 125%
of the quota during the first, 150% of. the quota during the
second, 175% of the quota during the third year of the operations
of the Fund in that particular currency and 200% thereafter.

7 /1 /4 4

J.S. Art. Ill
Sec. 2

(P. 7)
J oint Statement III, 3

3.
The operations on the Fund’s account will be limited to trans
actions for the purpose of supplying a member country on the
member’s initiative with another member’s currency in exchange
for its own currency or for gold. Transactions provided for under
4 and 7, below, are not subject to this limitation.
Alternative A

* Section 4. Limitation on the operations of the Fund.
Except as otherwise provided in this Agreement, operations

PROCEEDINGS AND DOCUMENTS

for the account of the Fund shall be limited to transactions
for the purpose of supplying a member, on the initiative of such
member, with the currency of another member in exchange
for the currency of the member initiating the transactions or
for gold.
7 /1 /4 4

J.S. Art. Ill
Sec. 3

(P. 8)
III, 4
4. The Fund will be entitled at its option, with a view to pre
venting a particular member's currency from becoming scarce:
(a) To borrow its currency from a member country;
(b) To offer gold to a member country in exchange for its
currency.
J o in t S t a t e m e n t

Alternative A

Section 5.

Operations for the Purpose of Preventing Cur
rencies from becoming scarce.
The Fund may, if it deems such action appropriate to prevent
the currency of any member from becoming scarce, take either
or both of the following steps:
& (1) Propose to the member that it lend such currency to the
Fund or, with the approval of the member, borrow such
currency within that country from some other source,
but no member shall be under any obligation to lend its
currency to the Fund or to approve the Fund's borrow
ing its currency from any other source.
*
(2) Offer to buy the currency of that member with gold.
Alternative B
(Substitute for Joint Statement III, 4( b) )

To sell gold to a member country in exchange for its currency.

7 /1 /4 4

J.S. Art. Ill
Sec. 4

(p. 9)
J o in t S t a t e m e n t

III, 5

5. So long as a member country is entitled to buy another mem
ber's currency from the Fund in exchange for its own currency, it
shall be prepared to buy its own currency from that member with
that member's currency or with gold. This shall not apply to cur
rency subject to restrictions in conformity with IX, 3 below, or
to holdings of currency which have accumulated as a result of

MONETARY AND FINANCIAL CONFERENCE

transactions of a current account nature effected before the re
moval by the member country of restrictions on multilateral
clearing maintained or imposed under X, 2 below.
Alternative A

Section 6. Multilateral International Clearing.
Each member shall buy balances of its currency held by
another member with currency of that member or, at the option
of the member buying, with gold, if the member selling repre
sents either that the balances in question have been currently
acquired or that their conversion is needed for making currency
payments which are consistent with the provisions of the Fund.
This obligation shall not relate to transactions involving:
(a) capital transfers, except those transactions referred to
in the second and third sentences of V, 1, below; or
(b) holdings of currency which have accumulated as a re
sult of transactions effected before the removal by a
member of restrictions on multilateral clearing main
tained or imposed under X, 2, below; or
(c) the provision of a currency which has been declared
scarce under VI, above; or
(d) holdings of currency acquired as a result of dealings
illegal under the exchange regulations of the member
which is asked to buy such currency;
nor shall it apply to a member which has ceased to be entitled
to buy currencies of other members from the Fund in exchange
for its own currency.
Nothing in this section shall be deemed to modify or affect
the obligation of a member under IX, 2 and 3, below.
(Proposed to be transferred in final draft to Article IX as
Section 3)

7 /1 /4 4

J.S. Art. Ill
Sec. 5

(p. 10)
J o in t S t a t e m e n t II I , 6

6.
A member country desiring to obtain, directly or indirectly,
the currency of another member country for gold is expected,
provided that it can do so with equal advantage, to acquire the
currency by the sale of gold to the Fund. This shall not preclude the
sale of newly-mined gold by a gold-producing country on any
market.

PROCEEDINGS AND DOCUMENTS

Alternative A

* Section 7.

Acquisition by Members of the currencies of other
Members for Gold.
Any member desiring to obtain, directly or indirectly, the
currency of another member for gold shall, provided that it can
do so with equal advantage, acquire the currency by the sale
of gold to the Fund. Nothing in this Section shall be deemed
to preclude any member from selling in any market the new
production of gold from mines located within territory subject
to its jurisdiction.

7 /1 /4 4

J.S. Art. Ill
Sec. 6

( P . 11 )
J o in t S t a t e m e n t III, 7

7. The Fund may also acquire gold from member countries in
accordance with the following provisions:
(a) A member country may repurchase from the Fund for gold
any part of the latter’s holdings of its currency.
(b) So long as a member’s holdings of gold and gold-convertible
exchange exceed its quota, the Fund in selling foreign
exchange to that country shall require that one-half of
the net sales of such exchange during the Fund’s financial
year be paid for with gold.
(c) If at the end of the Fund’s financial year a member’s hold
ings of gold and gold-convertible exchange have increased,
the Fund may require up to one-half of the increase to be
used to repurchase part of the Fund’s holdings of its cur
rency so long as this does not reduce the Fund’s holdings
of a country’s currency below 75 percent of its quota or
the member’s holdings of gold and gold-convertible ex
change below its quota.
Alternative A

Section 8.

Other Acquisitions of Gold by the Fund.
(To be submitted later.)

Alternative B
(Add to Joint Statem ent III, 7 ( b ) )
# This provision shall not be applied during five-year period
from the beginning of the operations of the Fund to member
countries who suffered particularly great damage from enemy
occupation and hostilities.

MONETARY AND FINANCIAL CONFERENCE
(Add to Joint Statem ent III, 7(c))

This, provision shall not be applied during the period of
restoration of economy to the newly-mined gold of member
countries, whose home areas particularly suffered from enemy
occupation and hostilities.

7 /1 /4 4

J.S. Art. Ill
Sec. 7

(p. lla )
Alternative C
Substitute for Joint Statem ent III, 7 ( c ) )

(c) If at the end of any financial year of the Fund, the
official holdings of gold and gold-convertible exchange of any
member country have increased as compared to that mem
ber's official holdings of gold and gold-convertible exchange
at the moment of joining the Fund, the Fund may require . . .
etc. . . .
Alternative D

So long as a member's holdings of gold and gold-convertible
exchange exceed its quota, the Fund in selling foreign exchange
to that country shall require that one-half of the net sales of
such exchange during the Fund's financial year be paid for with
gold or gold-convertible exchange. The Fund, however, may in
its discretion ivaive this condition tvith respect to any particular
country if its application woidd reduce the facilities accorded
by the Fund to that Country in a ivay contrary to the purposes
and policies of the Fund and in particular to the purpose stated
in 1(3).

(Substitute for Joint Statem ent III, 7 ( b ) )

7 /1 /4 4

J.S. Art. Ill
Sec. 7

(P. 12)
J oint Statement — no provisions

The following material has been suggested as an addition to
Article III.
Alternative A
# Section 9. Transferability and Guarantee of the Assets of
the Fund.
(a)
All assets of the Fund shall, to the extent necessary to
carry out the operations prescribed by this Agreement, be
free from restrictions, regulations and controls of any nature
imposed by members.

PROCEEDINGS AND DOCUMENTS

(b) The currency of a member purchased from the Fund
shall always be accepted by that member in payment of current
account obligations due to that member.
(c) All assets of the Fund shall be guaranteed by each mem
ber against loss resulting from failure or default on the part
of the depository designated by such member.
7 /1 /4 4

J.S. Art. Ill
A d d ition a l Section (9)

(P. 13)
J oint Statement — no provision

The following material has been suggested as an addition to
Article III.
A lternative A

# Section 10. Charges and Commissions.
(a) Any member buying the currency of any other member
from the Fund in exchange for its own currency shall pay a
service charge in addition to the parity price.
(b) The Fund may levy a reasonable handling charge on
any member buying gold from the Fund or selling gold to the
Fund.
(c) The Fund shall prescribe charges uniform among mem
bers which shall be payable by any member on the amount of its
currency in excess of its quota held by the Fund, as follows:
(to be inserted later)
(d) All charges and commissions shall be paid in gold. If,
however, the member’s holdings of gold and gold-convertible
exchange are less than one-half of its quota, it shall pay in gold
that proportion which such holdings bear to one-half of its
quota, and shall pay the balance in its own currency.
A lternative

(Substitute for Section 10(c) of Alternative A)

The Fund shall levy a charge uniform to all countries, at a
rate not more than 1 percent per annum, payable in gold,
against any country on the amount of its currency held by the
Fund in excess of the quota of that country. An additional
charge, payable in gold, shall be levied by the Fund against any
member country on the Fund’s holdings of its currency in
excess of 200 percent of the quota of that country.

7 /1 /4 4

J.S. Art. Ill
A d dition al Section (10)

MONETARY AND FINANCIAL CONFERENCE

(p. 14)
J oint Statement — no provisions

The following material has been suggested as an addition to
Article III.
Alternative A

# Section 11. Furnishing Information.
The Fund may require members to furnish it with such in
formation as it deems necessary for its operations. In request
ing information the Fund shall, however, take into considera
tion the ability of individual members to furnish the data asked
for. The minimum amount of information necessary for the due
carrying out of the Fund’s operations includes the following:
(List of required information to be inserted)
The Fund may arrange to obtain further information by
agreement with the members.
Alternative B
(Substitute for list to be inserted in Alternative A)

I- Gold holdings of the Central Bank and the Treasury and
their changes.
2 . Gold convertible exchange holdings of the Central Bank
and the Treasury.
3. Movement of capital.
4. Foreign Trade data.
5. Other items of the balance of payments.
6. Rates of exchange and their changes.
J.S. Art. Ill

7 /1 /4 4

A d d itio n a l Section (11)

(P. 15)

J oint Statement — no provisions

The following material has been suggested as an addition to
Article III.
Alternative A

# Section 12. Consideration of Representations of the Fund.
The Fund may make representations to a member on mone
tary or economic conditions and developments in such member
which tend, or may tend, to produce a serious disequilibrium in
the international balance of payments of members. A represen
tative of the member country involved shall participate in the
preparation of the Fund’s representations. The Fund shall not

PROCEEDINGS AND DOCUMENTS

make representations which would involve changes in the funda
mental structure of the economic organization of members.
Alternative B

The Fund shall have at all times the right to communicate
its views informally to any member on any matter arising under
this Agreement.

7 /1 /4 4

J.Sv Arf. Ill
A d dition al Section (12)

(P. 16)

J oint Statement IV, 1.

IV. Par Values of Member Currencies
1. The par value of a member's currency shall be agreed with
the Fund when it is admitted to membership, and shall be ex
pressed in terms of gold. All transactions between the Fund and
members shall be at par, subject to a fixed charge payable by the
member making application to the Fund, and all transactions in
member currencies shall be at rates within an agreed percentage
of parity.
Alternative A

J.S. Art. IV
Sec. 1

(p .17)
J oint Statement IV, 2, 3, 4.

2. Subject to 5, below, no change in the par value of a member's
currency shall be made by the Fund without the country’s ap
proval. Member countries agree not to propose a change in the
parity of their currency unless they consider it appropriate to the
correction of a fundamental disequilibrium. Changes shall be
made only with the approval of the Fund, subject to the provisions
below.
3. The Fund shall approve a requested change in the par value
of a member’s currency, if it is essential to the correction of a
fundamental disequilibrium. In particular, the Fund shall not

MONETARY AND FINANCIAL CONFERENCE

reject a requested change, necessary to restore equilibrium, be
cause of the domestic social or political policies of the country
applying for a change. In considering a requested change, the
Fund shall take into consideration the extreme uncertainties pre
vailing at the time the parities of the currencies of the member
countries were initially agreed upon.
4. After consulting the Fund, a member country may change
the established parity of its currency, provided the proposed
change, inclusive of any previous change since the establishment
of the Fund, does not exceed 10 percent. In the case of application
for a further change, not covered by the above and not exceeding
10 percent, the Fund shall give its decision within 2 days of re
ceiving the application, if the applicant so requests.
7 /1 /4 4

J.S. Art. IV
Secs 2 -4

(p. 17a)
J oint Statement , IV, 2-4 .
(All alternatives to be supplied later)
J.S. Art. IV

7 /3 /4 4

Secs. 2 -4

( P . 18)

J oint Statement IV, 5
5. An agreed uniform change may be made in the gold value
of member currencies, provided every member country having
10 percent or more of the aggregate quotas approves.
A lternative A

* Section 5. Uniform Changes in Par Values.
Notwithstanding the provisions of Section 3 of this Article,
the Fund by majority vote may make uniform proportionate
changes in the par values of the currencies of all the members,
provided each such change is approved by every country which
has ten percent or more of the aggregate quotas. Such uniform
changes shall be excluded from consideration in applying the
provisions of Sections 4(3) and (4) of this Article. (J.S. IV,
4).
7 /1 /4 4

J.S. Art. IV
Sec. 5

(P .19)
J oint Statement —no provision
The following material has been suggested as an addition to
Article IV.

PROCEEDINGS AND DOCUMENTS

A lternative A

# Section 6. Protection of the Assets of the Fund.
No change in the foreign exchange value of the currency of
any member shall alter the gold value of the assets of the
Fund. Whenever (i) the par value of a currency of a member
is reduced, or (ii) the foreign exchange value of the currency
of any member has depreciated within its jurisdiction to a
significant extent in the opinion of the Fund, the member shall
compensate the Fund by paying to the Fund within a reasonable
time an amount of its own currency equal to the reduction in
the gold value of the currency of such member held* by the
Fund. Whenever the par value of the currency of any member
has been increased the Fund shall compensate such member
by returning, within a reasonable time, an amount in the cur
rency of such member equal to the increase in the gold value
of the currency of such member held by the Fund.
7 /1 /4 4

J.S. Art. IV
A d d ition a l Section

( P .20)

J oint Statement — no provision

The following material has been suggested as an addition to
Article IV.
Alternative A
Section 7. Separate currencies within a Member’s jurisdiction.
# A member proposing a change in the par value of its cur
rency shall be deemed, unless it declares otherwise, to be pro
posing a corresponding change in the par value of the currencies
of all territories under its jurisdiction. It shall however be
open to a member to declare that its proposal relates either to
the metropolitan currency alone, or to one or more specified
subordinate currencies alone., or to the metropolitan currency
and one or more specified subordinate currencies.
Alternative B
(Add to Joint Statement IV)

if separate currencies are used in different parts of the
territory of a member country, the provisions of this article
shall apply to each of these currencies.

7 /1 /4 4

J.S. Art. IV
A d d ition a l Section

749013— 48— 4

MONETARY AND FINANCIAL CONFERENCE

(P. 21)
J oint Statement V, 1.

V. Capital Transactions
1. A member country may not use the Fund’s resources to meet
a large or sustained outflow of capital, and the Fund may require
a member country to exercise controls to prevent such use of the
resources of the Fund. This provision is not intended to prevent
the use of the Fund’s resources for capital transactions of reason
able amount required for the expansion of exports or in the
ordinary course of trade, banking, or other business. Nor is it in
tended to prevent capital movements which are met out of a
member country’s own resources of gold and foreign exchange,
provided such capital movements are in accordance with the pur
poses of the Fund.
Alternative A

& Section 1.

Use of the Resources of the Fund for Transfers of
Capital.
A member may not use the resources of the Fund to meet a
large or sustained outflow of capital, and the Fund may request
a member to exercise controls to prevent such use of the re
sources of the Fund. If after receiving such request, a member
fails to exercise appropriate controls the Fund may declare such
member ineligible to use the resources of the Fund.
This Section is not intended to prevent the use of the re
sources of the Fund for capital transactions of reasonable
amount required for the expansion of exports or in the ordinary
course of trade, banking or other business. Capital movements
which are met out of a member’s own resources of gold and
foreign exchange, are not affected by this section, but members
undertake that such capital movements will be in accord with
the purposes of the Fund.

7 /1 /4 4

J.S. Art. V
. Sec. 1

(P .

22)
J oint Statement V, 2.

2.
Subject to VI below, a member country may not use its con
trol of capital movements to restrict payments for current trans
actions or to delay unduly the transfer of funds in settlement of
commitments.

PROCEEDINGS AND DOCUMENTS

Alternative A

* Section 2—Limitation on Controls of Capital Movements.
Members may control international capital movements but no
member may exercise such controls in a manner which will
restrict payments for current transactions or which will unduly
delay the transfer of funds in settlement of commitments, ex
cept as provided in VI, 2 and in X.
7 /1 /4 4

J.S. Art. V
Sec. 2

(P. 23)
J o in t S ta te m e n t

VI, 1, 2

VI. Apportionm ent of Scarce Currencies
1. When it becomes evident to the Fund that the demand for a
member country's currency may soon exhaust the Fund's holdings
of that currency, the Fund shall so inform member countries and
propose an equitable method of apportioning the scarce currency.
When a currency is thus declared scarce, the Fund shall issue a
report embodying the causes of the scarcity and containing recom
mendations designed to bring it to an end.
2. A decision by the Fund to apportion a scarce currency shall
operate as an authorization to a member country, after consulta
tion with the Fund, temporarily to restrict the freedom of ex
change operations in the affected currency, and in determining
the manner of restricting the demand and rationing the limited
supply among its nationals, the member country shall have com
plete jurisdiction.
7 /1 /4 4

J.S. Art. VI
Sec. 1 & 2

(p. 23a)
VI, 1 a n d 2
Alternative A

J o in t S ta te m e n t

# Section 1. General Scarcity.
If the Fund finds that a general scarcity of a particular cur
rency is developing, the Fund may so inform members and may
issue a report setting forth the causes of the scarcity and con
taining recommendations designed to bring it to an end. In the
preparation of such report there shall participate a representa
tive of the member the currency of which is involved.
& Section 2. Scarcity of the Fund's Holdings.
If it becomes evident to the Fund that the demand for a mem-

MONETARY AND FINANCIAL CONFERENCE

ber’s currency seriously threatens the Fund’s ability to supply
that currency, the Fund, whether or not it has acted under
Section 1 above, shall formally declare such currency scarce and
shall thenceforth apportion the existing and accruing supply
of the scarce currency ivith due regard to the relative needs of
members and the general international economic situation and
any other pertinent considerations. The Fund shall also issue
a report concerning its action. The formal declaration shall op
erate as an authorization to each member, after consultation
with the Fund, temporarily to restrict the freedom of exchange
operations in the affected currency; and, in determining the
manner of restricting the demand and rationing the limited
supply among its nationals, the members shall have complete
jurisdiction subject to the'provisions of Article IX , Section 2.
(J.S.).
7 /1 /4 4

J.S. Art. V I
Secs. 1 & 2

( P .24)

VII. Management of the Fund
J o in t S t a t e m e n t

VII, 1

1. The Fund shall be governed by a board on which each mem
ber will be represented and by an executive committee. The ex
ecutive committee shall consist of at least nine members including
the representatives of the five countries with the largest quotas.
(As to Executive Committee see p. 25)
A lternative A

# Section 1. Board of Governors.
#
(a) The administration of the Fund shall be vested in a
Board of Governors consisting of one governor and one alternate
appointed by each member in such manner as it may determine.
Governors and alternates shall serve for five years, subject to
the pleasure of their respective governments, and may be re
appointed. No alternate may vote except in the absence of his
governor. The Board shall select a chairman from its members.
#
(b) The Board of Governors may delegate to the Executive
Directors authority to exercise any powers of the Board, except:
(1) Determining what new members may be admitted and
the conditions of their admission;
(2) Approving a revision of quotas;
(3) Approving an agreed uniform change in the par value
of the currencies of all member countries;

PROCEEDINGS AND DOCUMENTS

(4) Requiring a member to withdraw;
(5) Deciding appeals against interpretations of the Agree
ment by the Executive Directors given on application
by a member country;
(6) Making agreements to cooperate with other international
organizations;
(7) Deciding to liquidate the Fund.
7 /1 /4 4

J.S. Art. V II
Sec. 1
(Board of Directors)

(p.24a)
#
(c) The Board of Governors shall hold an annual meeting and
such other meetings as may be provided for by the Board or
convened by the Executive Directors. Meetings of the Board
shall be convened by the Executive Directors whenever requested
by one quarter of the members or by members having one
quarter of the aggregate votes.
#
(d) The Board may by regulation establish a procedure
whereby the Executive Directors, when they deem such action
to be in the best interests of the Fund, may obtain a vote of the
governors on a specific question in lieu of calling a meeting
of the Board.
ii (e) Governors and alternates shall serve as such without
compensation from the Fund, but the Fund shall pay such
reasonable expenses as are incurred by the governors and alter
nates in attending any meetings.
A lternative B
(Substitute the following for section 1(c) of Alternative A :)

(c)
The Board of Governors shall hold an annual meeting and
such other meetings as may be provided for by the Board or
convened by the Executive Directors. Meetings of the Board
shall be convened by the Executive Directors whenever requested
by five member countries. Annual meetings shall not be held in
the same country more than once in five years.
7 /1 /4 4

J.S. Art. V II
Sec. 1
(Board of Directors)

(p .25)
J o in t S t a t e m e n t V I I , 1

1.
The Fund shall be governed by a board on which each mem
ber will be represented and by an executive committee. The ex
ecutive committee shall consist of at least nine members including

MONETARY AND FINANCIAL CONFERENCE

the representatives of the five countries with the largest quotas.
(As to Board of Directors see p. 25)
Alternative A

# Section 2. The Executive Directors.
#
(a) There shall be twelve Executive Directors, namely, the
General Manager, the governors representing the five member
countries having the largest quotas, and six other governors
elected biennially by the governors who are not automatically
Executive Directors. The General Manager shall be chairman
of the Executive Directors. The Executive Directors shall ex
ercise all authority delegated to them by the Board of Governors
and shall be in continuous session at the principal office of the
Fund for at least the first three years of operations. In the ab
sence of any Executive Director, his alternate on the Board of
Governors may serve in his place. Executive Directors shall be
compensated by the Fund in an amount fixed by the Board of
Governors.
Whenever a member country not having a governor among
the Executive Directors has requested action or will be directly
affected by a decision of the Executive Directors, the governor
representing such country shall be entitled to be present at the
meeting of the Executive Directors considering such request or
decision, but he shall not be entitled to vote.
#
(b) In balloting for the elective Executive Directors, each
governor eligible to vote shall cast for one governor all of the
votes to which he is entitled under the first paragraph of Section
3 of this article (J.S. VII, 2) The six persons receiving the
greatest number of votes shall be Executive Directors, except that
no person who receives less than sixteen percent of the aggre
gate eligible votes shall be considei'ed elected. When six persons
7 /1 /4 4

J.S. Art V! I, Sec. 1
(Executive Committee)

are not elected on the initial balloting, a (p. 25a) second
balloting shall be held in which the person receiving the lowest
number of votes shall be ineligible for election and in which there
shall vote only those governors who vote for a person not elected
and these governors all or part of whose votes for a person
elected are deemed to have raised the votes cast for such person
above seventeen per cent of the aggregate eligible votes. In
determining whether any part of the votes cast by a governor
raised the total of any person above seventeen per cent, there
shall be considered as not forming part of the excess the votes of

PROCEEDINGS AND DOCUMENTS

the governor casting the largest number of votes for such per
son, then the votes of the governor casting the next largest num
ber, and so on until the total reaches seventeen per cent. Any
governor whose votes are partly not in excess and partly in ex
cess shall be eligible to vote in the second balloting only to the
extent of the votes in excess. If enough additional persons are
not elected on the second balloting to bring to six the total num
ber each of whom has received at least sixteen per cent of the
aggregate eligible votes, further ballots shall be taken on the
same principles until six such persons have been elected, pro
vided that after five persons are elected the sixth may be elected
by a simple majority of the remaining votes and shall be deemed
to have been elected by all such votes.
#
(c) Each governor who is automatically an Executive Direc
tor shall be entitled to cast the number of votes alloted under
Section 3 of this Article (J.S. VII, 2) to the country which he
represents. Each elected Executive Director shall be entitled
to cast the number of votes to which the governors who elected
him would be entitled. A member whose election is due in part
to his having received a portion of the votes of a particular
governor shall be entitled to vote only those votes of such
governor which contributed to his election. When the provisions
of the second paragraph of Section 2 of this Article are ap7 /1 /4 4

J.S. Art. VI!, Sue. 1
(Executive CorismittGe)

plicable to a vote (p. 25b) on any question the votes to which
an Executive Director would otherwise be entitled shall be in
creased or decreased proportionately. The General Manager
shall have no vote.
#
(d) The Executive Directors may appoint such committees
as they deem advisable. Membership of such committees need
not be limited to governors and alternates.
7 /1 /4 4

J.S. Art. V li ; Soc. 1
(Executive Committee)

(p. 25b)
A lternative B

(b)
There shall be twelve Executive Directors, of whom x
shall be appointed by the members having the x largest quotas,
(the remaining y seats being filled by Executive Directors ap
pointed by members chosen for this purpose by all the Gov
ernors excluding those representing the members with the x
largest quotas). The members so chosen shall have the power

MONETARY AND FINANCIAL CONFERENCE

of appointment of directors for two years; at the end of this
period any of the members may be chosen again or other mem
bers may be chosen. The persons chosen as Executive Directors
need not be Governors. The Executive Directors shall meet not
less than once every three months.
(c)
The Executive Directors shall appoint as Chairman a
suitable person who is not a Director. The Chairman may ap
point a Director to act for him as Deputy Chairman. The
Chairman of the Executive Directors, if he is not a Governor,
may attend and speak at meetings of the Board. He shall be
eligible to be elected as Chairman of the Board of Governors.
(b) Executive Directors.
The Executive Directors shall conduct all of the business of
the Fund delegated to them by the Board of Governors.
(c) The Chairman.
(i) the Chairman shall reside at the Headquarters of
the Fund and the Deputy Chairman must reside
there at those times when he is acting for the
Chairman;
(ii) the Executive Directors may delegate to the Chair
man or Deputy Chairman the power of performing
on their behalf any of the functions delegated to
them except the following, supposing they have
been so delegated:
7 /1 /4 4

J.S. Art. V II, Sec. 1
(Executive Committee)

(p.25c)
(1) waiver of any of the conditions in III (2) ;
(2) the exercise of the options of the Fund in
111(4);
(3) all decisions on the par value of member cur
rencies in IV (1-4) ;
(4) all action relating to the apportionment of scarce
currencies (V I );
(5) decision on the use of the resources of the Fund
by a member who has withdrawn (VIII (4) as
revised);
(6) decision on X (3) as revised and X (4) as re
vised ;
(7) a formal interpretation of the Statute.
(d) Voting.
On questions before the Executive Directors, the Director

PROCEEDINGS AND DOCUMENTS

appointed by the United States shall cast 6 votes, the Director
appointed by the United Kingdom shall cast 3 votes, the Di
rector appointed by the U.S.S.R. shall cast 2 votes, and all the
other Directors shall cast 1 vote each. The appointed Chairman
shall only have a casting vote in case of an equal division in the
voting.
In order to constitute a quorum for the Executive Directors
there must be present Directors representing not less than onehalf of the total voting power of the Executive Directors and
not less than six in number.
7 /1 /4 4

J.S. Art. V II, Sec. 1
(Executive Committee)

( P .26)

J oint Statement TIT, 2, 3

2. The distribution of voting power on the board and the ex
ecutive committee shall be closely related to the quotas.
3. Subject to II, 2 and IV, 5, all matters shall be settled by a
majority of the votes.
Alternative A

& Section 3. Voting
Each member shall have two hundred fifty votes plus one
additional vote for each part of its quota equivalent to one
hundred thousand United States dollars of the weight and fine
ness in effect on July 1, 1944.
Whenever a vote is required under Article III, each member
shall be entitled to a number of votes modified from its normal
number:
(a) By the addition of one vote for the equivalent of each
two hundred thousand United States dollars of the weight
and fineness in effect on July 1, 1944 of net sales of its
currency by the Fund (adjusted for its net transactions
in gold), and
(b) By the subtraction of one vote for the equivalent of
each two hundred thousand such United States dollars
of its net purchases of the currencies of other member
countries from the Fund (adjusted for its net transac
tions in gold).
Except as otherwise specifically provided all matters before
the Fund shall be decided by a majority of the aggregate votes
cast.
7/1/44

J.S Art. V II
Sec. 2 & 3

MONETARY AND FINANCIAL CONFERENCE

(p. 26a)
Alternative B
(Substitute for Joint Statem ent III, 2 and 3.)

(a) On the Board of Governors the number of votes which
each governor can cast shall be related to the quota of the mem
ber appointing the governors;
A quorum for the Board shall consist of not less than twothirds of the total voting power of the governors.

7 /1 /4 4

J.S. Art. V II
Sec. 2 and 3

(P. 27)
J oint Statement — no provision

The following material has been suggested as an addition to
Article VII.
Alternative A

# Section 4. The General Manager.
The Board of Governors shall appoint and fix the compensa
tion of a General Manager of the Fund and one or more As
sistant General Managers. The General Manager shall be chief
of the operating staff of the Fund and shall be a member ex
officio of the Board of Governors.
Alternative B

(d) The Executive Directors shall appoint a General Man
ager, being a person of knowledge and experience of the business.
(e) The Chief Assistants of the General Manager shall be
appointed by the Executive Directors, on the proposal of the
General Manager. The General Manager and his Chief Assis
tants shall be appointed under contract determinable by six
months’ notice on either side. The continuance of the service
of each of these officials shall be considered by the Executive
Directors after every period of 5 years.
(f) The General Manager shall conduct, under the general
direction of the Chairman, the ordinary business of the Fund’s
7 /1 /4 4

J.S. Art. V II
A d d itio n a l Section (4)

work. Subject to the (p. 27a) general control of the Execu
tive Directors, he shall be responsible for internal organization
and the appointment and dismissal of subordinate staff. The
General Manager shall be responsible to the Executive Directors
for the accounts.
(g) The Chairman, the Deputy-Chairman, the General Man

PROCEEDINGS AND DOCUMENTS

ager and all the members of the staff shall be paid such salaries
and expenses and serve under such conditions as the Fund may
determine.
7 /1 /4 4

Article V II
A d d ition a l Section (4)

( P .28)

J oint Statement VII, 4

4. The Fund shall publish at short intervals a statement of its
position showing the extent of its holdings of member currencies
and of gold and its transactions in gold.
A lternative A

# Section 5. Publication of Reports
The Fund shall publish an annual report containing an audited
statement of its accounts and shall issue at intervals of three
months or less, a summary statement of its transactions and
its holdings of gold and currencies of members.
The Fund may publish such other reports as it deems de
sirable for carrying out its purposes and policies.
7 /1 /4 4

J.S. Art. V II
Sec. 4

(P. 2 9 )

J oint Statement — no provisions

The following material has been suggested as an addition to
Article VII.
A lternative A

# Section 6. Depositories.
(a) Each member country shall designate its central bank
as a depository for all the Fund's holdings of its currency or,
if it has no central bank, it shall designate such other institution
as may be acceptable to the Fund.
(b) The Fund may hold other assets, including gold, in des
ignated depositories in the four members having the largest
quotas and in such other depositories as the Fund may select.
At least one-half of the holdings of gold of the Fund shall be
held in the designated depository in the member in which
the Fund has its principal office. In an emergency, the Execu
tive Directors may transfer all or any part of the Fund's hold
ings of gold to any place wT
here it can be adequately protected.
# Section 7. Form of Holdings of Currency.
The Fund shall accept from any member in lieu of any part

MONETARY AND FINANCIAL CONFERENCE

of the currency of that country not needed by the Fund in its
operations, notes or similar obligations issued by the Govern
ment of the country or the depository designated by such mem
ber, which shall be non-negotiable, non-interest bearing and
payable at their par value on demand by a credit to the cur
rency account of the Fund in that country.
7 /1 /4 4

J.S Art. V II
A d d itio n a l Sections (6 & 7)

(p. 29a)
A lternative B
(Substitute for (b) under Section 6 of A lternative A)

(b)
Sums payable to the Fund in gold shall be placed at the
disposal of the Fund at a depository indicated by the Fund. In
indicating a depository the Fund shall pay regard to the con
venience of the member, the costs of transport, and the ex
pected requirements of the Fund. Gold and assets other than
holdings of currency belonging to the Fund may be held in or
moved to any depository as the Fund may determine.
Alternative C
(Substitute the following for subdivision (b) of Alternative A :)

(b)
Other assets of the Fund, including gold, shall be held
in designated depositories, as a general rule, in the four mem
ber countries having the largest quotas.
About one-half of the holding of gold of the Fund shall be
deposited in the designated depository in the country in which
the Fund has its principal office.
7 /1 /4 4

J.S. Art. V II
A d d itio n a l Section (6)

(P. 30)
J o i n t S t a t e m e n t — n o .p r o v isio n s

The following material has been suggested as an addition to
Article VII.
Alternative A
it Section 8. Relationship to other International Organizations.
The Fund, within the terms of this Agreement, shall co
operate with any general international organization and with
public international organizations having specialized responsi
bilities in related fields. Any arrangements for such coopera
tion which would involve a modification of any o f the provisions

PROCEEDINGS AND DOCUMENTS

of this Agreement may be effected only after amendment to
this Agreement in conformity with the procedure set forth in
A rticle---------.
7 /1 /4 4

J.S. Art. V II
A d dition al Section (7)

(P.

31)
J o i n t S t a t e m e n t — no p r o v isio n s

The following material has been suggested as an addition to
Article V II:
A lternative A

# Section 9. Location of Offices.
The principal office of the Fund shall be located in the mem
ber having the largest quota, and agencies or branch offices
may be established in any member or members.
Alternative B

The location of the principal office of the Fund shall be
decided by the Fund at the first meeting of the Board of
Governors, which shall take place in the territory of the mem
ber having the largest quota.
7 /1 /4 4

J.S. Art. V II
A d dition a l Section (9)

(P. 3 2 )
J o i n t S t a t e m e n t — no p r o v isio n s

The following material has been suggested as an addition to
Article VII.
A lternative A

The Fund shall determine annually what part of its net income
shall be placed to reserve and what part, if any, shall be dis
tributed.
7 /1 /4 4 .

J.S. Art. V II
A d d ition a l Section (10)

(p. 32a)
(Alternative B continued)
If any part is distributed, two per cent noncumulative shall
be paid, as a first charge against the distribution of any year, to
each member on the average amount during the year by which
75 percent of its quota exceeds the holdings by the Fund of its

MONETARY AND FINANCIAL CONFERENCE

currency; and the balance to the members in proportion to their
quotas. Payments to each member shall be made in its own cur
rency.
7 /1 /4 4

J.S. Art. V II
A d d itio n a l Section (10)

(P. 33)
J oint Statement — no provisions

The following material has been suggested as an addition to
Article VII.
# Section 11. Miscellaneous Poxoers.
In order to carry out its purposes, the Fund may:
(1) Make contracts;
(2) Acquire and dispose of real and personal property;
(3) Institute legal proceedings in any court of competent
jurisdiction;
(4) Employ such staff as shall be necessary to conduct the
business of the Fund; and
(5) Adopt such rules or regulations as may be necessary or
appropriate to conduct the business of the Fund.
7 /1 /4 4

J.S. Art. V II
A d d itio n a l Section (10)

(P. 34)
J oint Statement VIII, 1

VIII. Withdrawal from the Fund
1.
A member country may withdraw from the Fund by giving
notice in writing.
Alternative A
* Section 1. Right of Members to Withdraw.
Any member may withdraw from the Fund at any time by
serving written notice on the Fund at its principal office. Withdrawal shall become effective on the date such notice is received.
Alternative B

A member country may withdraw from the Fund by giving
notice in writing and the right of withdrawal shall not be preju
diced by membership of the Fund being made a condition of
membership of any other international body.

7/1/44

J.S. Art. V III
Sec. 1

PROCEEDINGS AND DOCUMENTS

(P .35)
J o i n t S t a t e m e n t — 110

provision
The following material has been suggested as an addition to
Article VIII.
Alternative A
# Section 2. Suspension of Membership or Compulsory With
drawal.
(To be inserted later.)
7 /1 /4 4

J.S. Art. V III
A d dition al Sec. (2)

(P. 36)
J o in t S ta te m e n t

VIII, 2 & 3

Settlement of Accounts with Countries Ceasing to
he Members.
(To be inserted later)

Alternative B
(To be inserted later)
J.S. Art. V III

7 /1 /4 4

Secs. 2 & 3

(P. 37)
J o in t S t a t e m e n t — no

provision

The following material has been suggested as an addition to
Article VIII.
Alternative A
# Section 4. Liquidation of the Fund.
(To be inserted later)

Alternative B
(To be inserted later)
7/1/44

J.S. Art. V III
A d d ition a l Section (4)

MONETARY AND FINANCIAL CONFERENCE

( P .38)
J o in t S t a t e m e n t

IX, 1

IX. Obligations of Member Countries
1. Not to buy gold at a price which exceed the agreed parity
of its currency by more than a prescribed margin and not to sell
gold at a price which falls below the agreed parity by more than
a prescribed margin.
Alternative A

# Section 1.

Purpose and Scope of Additional Undertakings
(To be inserted later)

* Section 2. Gold Purchases Based on Parity Prices
No member country shall buy or sell gold from or to the mon
etary authorities of another member at prices which vary
from the agreed parity of its currency by more than a pre
scribed margin.
7 / 1/44

J.S. Art. IX
Sec. 1

(P .39)
J oint Statement IX, 2
2. Not to allow exchange transactions in its market in curren
cies of other members at rates outside a prescribed range based
on the agreed parities.
Alternative A

& Section 3. Foreign Exchange Dealings Based on Par Values.
(a) The Fund shall prescribe maximum and minimum rates
for exchange transactions in the currencies of members, which
shall not differ by more th an ---------percent from parity.
(b) Each member undertakes, through appropriate measures
authorized under this Agreement, not to permit within its juris
diction an appreciation or depreciation of the exchange value of
its own currency in terms of gold beyond the range prescribed
under (a) above. A member whose monetary authorities in
fact freely buy and sell gold within the prescribed range, to
settle international transactions, shall be deemed to be fultilling
this undertaking.
(c) Exchange transactions in the territory of one member
involving the currency of any other member, which evade or
avoid the exchange regulations prescribed by that other mem

PROCEEDINGS AND DOCUMENTS

ber and authorized by this Agreement, shall not be enforceable
in the territory of any member.
7 /1 /4 4

J.S Art. IX
Sec. 2

(p: 40)
J o in t S t a t e m e n t IX , 3

3.
Not to impose restrictions on payments for current inter
national transactions with other member countries (other than
those involving capital transfers or in accordance with VI, above)
or to engage in any discriminatory currency arrangements or
multiple currency practices without the approval of the Fund.
Alternative A

* Section 4. Exchange Controls on Current Payments.
No member shall impose restrictions on the transfer into
the currency of another member of the proceeds of current
transactions with that member, or engage in any discriminatory
currency arrangements or multiple currency practices unless
authorized under this Agreement, or approved by the Fund.
Alternative B

* 4. Not to impose restrictions save as otherwise provided on
payments for current international transactions with other
member countries, or to engage in any discriminatory currency
arrangements or multiple currency practices without the ap
proval of the Fund.
7 /1 /4 4

J.S. Art. IX
Sec. 3

(p. 41)
J oint Statement — no provisions

The following material has been suggested as an addition to
Article IX:
Alternative A
* Section 5. Im m unity of Assets of the Fund.
The Fund and its assets of whatsoever nature shall, where
soever located and by whomsoever held, be exempt and immune
from search, seizure, attachment, execution, requisition, confis
cation, moratorium and expropriation in the territory of any
member.
7 ,1 /4 4

J.S. Art. IX
A d d itio n a l Sec. (5)

749018- -48 - 5

MONETARY AND FINANCIAL CONFERENCE

(P. 42)
J o i n t S t a t e m e n t — No Provisions

The following material has been suggested as an addition to
Article IX:
# Section 6. Im munity from Suit.
The Fund shall be immune from suit except when it consents
to be sued.
7 /1 /4 4

J.S. Art. IX
A d d itio n a l Sec. (6)

(P. 43)
J o in t S t a t e m e n t —No Provisions
The following material has been suggested as an addition to
Article IX :

# Section 7.

Restrictions on Taxation of Fund, its Employees
and Obligations.
(a) The Fund, its assets, property, income, activities, opera
tions and transactions of whatsoever nature shall be exempt
and immune from all taxation or liability for the collection or
payment of any tax, including without limitation by reason of
this enumeration, excises, duties, and imposts, imposed by any
member or any political subdivision or taxing authority thereof.
(b) No member, or any political subdivision or taxing author
ity thereof shall impose or collect any tax on or measured by
salaries or remunerations for personal services paid by the Fund
to persons who are not citizens of such country.
(c) (Provision concerning taxation of securities issued by
the Fund to be inserted later.)

7 /1 /4 4

J.S. Art. IX
A d d itio n a l Sec. (7)

(P. 44)
J o in t S t a t e m e n t X , 1-4
X.

Transitional Arrangements

1.
Since the Fund is not intended to provide facilities for relief
or reconstruction or to deal with international indebtedness arising
out of the war, the agreement of a member country to provisions
III, 5 and IX, 3 above, shall not become operative until it is satis
fied as to the arrangements at its disposal to facilitate the settle
ment of the balance of payments differences during the early
post-war transition period by means which will not unduly en
cumber its facilities with the Fund.

PROCEEDINGS AND DOCUMENTS

2. During this transition period member countries may main
tain and adapt to changing circumstances exchange regulations
of the character which have been in operation during the war,
but they shall undertake to withdraw as soon as possible by pro
gressive stages any restrictions which impede multilateral clear
ing on current account. In their exchange policy they shall pay
continuous regard to the principles and objectives of the Fund;
and they shall take all possible measures to develop commercial
and financial relations with other member countries which will
facilitate international payments and the maintenance of exchange
stability.
3. The Fund may make representations to any member that con
ditions are favorable to withdrawal of particular restrictions or
for the general abandonment of the restrictions inconsistent with
IX, 3 above. Not later than 3 years after coming into force of
the Fund any member still retaining any restrictions inconsistent
with IX, 3 shall consult with the Fund as to their further reten
tion.
4. In its relations with member countries, the Fund shall rec
ognize that the transition period is one of change and adjustment,
and in deciding on its attitude to any proposals presented by mem
bers it shall give the member country the benefit of any reasonable
doubt.
Alternative A
(To be inserted later)

Alternative B
(To be inserted later)
7 /1 /4 4

J.S. Art. x
Secs. 1-4

(P .45)
J oint Statement — No Provisions
The following material has-been suggested as part of an addi
tional Article (X I).
Article XI — Amendments
# Any governor or executive director desiring to introduce
modifications in this Agreement shall communicate his proposal
to the Chairman of the Board of Governors who shall bring
the proposal before the Board of Governors. If the proposed
amendment is approved by the Board of Governors by a majority
of the aggregate votes, the Fund shall prepare a protocol, by
dated circular letter, to the governments of all the members
asking whether they accept the proposed modifications. When

MONETARY AND FINANCIAL CONFERENCE

the governments of members haying four-fifths of the aggre
gate votes, have accepted the proposed amendment, or, in the
case of modifications of the right to withdraw from the Fund,
wherl the governments of all of the members have accepted,
the Fund shall certify the fact by means of a proces verbal,
which it shall communicate to the governments of all members.
The protocol will enter into force between all members three
months from the date of the proces verbal unless a shorter
period is specified in the protocol.
Alternative B
(Add the following to A lternative A)

Notwithstanding the foregoing provisions (of Alternative
A) amendments may be made to the following provisions of this
Agreement, namely (unimportant provisions will be inserted
later) by a four-fifths majority vote of the Board of Governors.
7 /1 /4 4

J.S. Art. XI
(A d dition al Article)

(P. 46)
J o in t St a t e m e n t —

No provisions

The following material has been suggested as part of an addi
tional Article (XII) on interpretation of the Agreement.
Alternative A
Article XII— Interpretation o f the Agreement

# Section 1. Interpretation.
All questions of interpretation of the provisions of this Agree
ment between two or more member countries shall be resolved
by the Fund. Whenever a disagreement arises between the
Fund and a country which has ceased to be a member, or be
tween the Fund and any member country after liquidation of
the Fund, such disagreement shall be submitted to arbitration.
Alternative B

(1) All questions which arise involving doubts or differences
relating to the interpretation of the provisions of this
Agreement shall be submitted to the Executive Directors
of the Fund for their opinion. If the question is one
which involves a dispute affecting particularly one (or
more) member (s) and that (or those) member (s) are
not represented among the Executive Directors by a
Director appointed by it (or them) then that (or those)

PROCEEDINGS AND DOCUMENTS

member (s) may appoint a representative to take part
in the discussions of this question of the Executive Di
rectors on the same footing as the Directors.
(2) In any case where the Executive Directors have given an
opinion under paragraph (1) above, a member may re
quire that the question be submitted to the Board and
the opinion of the Board is final. Pending the result of
the reference to the Board of Governors, the Fund may
(so as is necessary) act on the basis of the opinion of the
Executive Directors.

7 /1 /4 4

Art. XII, Sec. 1
(Additional Article)

(P. 47)
J oint Statement — No provisions

The following material has been suggested as part of an addi
tional Article (XII) on interpretation of the Agreement.
Alternative A

# Section 2.

Definitions.
(To be inserted later)

Alternative B
(To be inserted later)

Alternative C
(To be inserted later)
7 /1 /4 4

Art. XII, Sec. 2
(A dditional Article)

(P. 48)
J oint Statement — No provisions

The following material has been suggested as part of an addi
tional Article (XII) on interpretation of the Agreement.
# Section 3.

Alternative A
Effect on other International Commitments.
(To be inserted later)

7 /1 /4 4

Art. XII, Sec. 2
(A dditional Article)

(p .49)
J oint Statement — No Provisions

The following material has been suggested as an additional
Article (XIII) on putting the Fund into operation:

MONETARY AND FINANCIAL CONFERENCE

Alternative A

# Section 1.

Entry into Effect.
(To be inserted later)

# Section 2.

Effective Date of the Agreement.
(To be inserted later)

#Section 3.

Calling the initial Meeting of the Fund.
(To be inserted later)

# Section 4.

Agenda of the Initial Meeting.
(To be inserted later)

Section 5.

Fixing Initial Par Values.
(To be inserted later)

Alternative B

it I A.

Entry into Effect.
(To be inserted later)
J.S. Art. X III, Sec. 1

7 /1 /4 4

(A d dition al Article)

Document 34
UNITED

NATIONS

MONETARY

AND

FIN ANCIAL

CONFERENCE

Regulations
Chapter I

Representation

Art. 1. Representation at the Conference shall be confined to
the delegations accredited by the governments or authorities of the
United Nations and the nations associated with them in the war,
in response to the invitation extended by the President of the
United States of America to participate in the United Nations
Monetary and Financial Conference.
Chapter II

Personnel of the Conference
S e c tio n I

Temporary President
Art. 2. The President of the United States of America shall
designate the Temporary President of the Conference who shall
preside at the opening session and shall continue to preside until
the Conference elects a Permanent President.

PROCEEDINGS AND DOCUMENTS

Per man en t Presid en t
Art. 4. The Permanent President of the Conference shall be
elected by an absolute majority of the delegations of states rep
resented at the Conference.
Art. 5. The duties of the Permanent President shall be:
First. To preside at the meetings of the Conference and to sub
mit for consideration in their regular order the subjects contained
in the order of the day.
Second. To concede the floor to the delegates in the order in
which they may have requested it.
Third. To decide all questions of order raised during the debates
of the Conference. Nevertheless, if any delegate shall so request,
the ruling made by the chair shall be submitted to the Conference
for decision by a majority vote of the delegations.
(p. 2) Fourth. To call for votes and to announce the result of
the vote to the Conference.
F ifth. To transmit to the delegates in advance, through the Sec
retary General, the order of business of each plenary session.
Sixth. To prescribe all necessary measures for the maintenance
of order and strict compliance with the regulations.
S e c t io n I I I

Vice Presidents
Art. 6. Four Vice Presidents shall be elected by an absolute
majority of the delegations of states represented at the Conference.
In the absence of the Permanent President, a Vice President shall
preside at the plenary sessions of the Conference. A Vice Presi
dent, when acting as President, shall have the same powers and
duties as the President.
S e c t io n IV

Secretary General
Art. 7. The Secretary General of the Conference shall be ap
pointed by the President of the United States of America.
The duties of the Secretary General are:
First. To organize, direct, and coordinate the work of the
secretaries, assistant secretaries, secretaries of committees, in
terpreters, clerks and other employees whom the Government of

MONETARY AND FINANCIAL CONFERENCE

the United States of America may appoint for service with the
secretariat of the Conference. He shall also assist with and
coordinate the work of the several Technical Commissions of the
Conference.
Second. To serve as the principal adviser to the President of
the Conference on parliamentary, procedural and protocol matters.
Third. To receive, distribute, and answer the official corre
spondence of the Conference in conformity with the resolutions
of that body.
Fourth. To prepare, or cause to be prepared under his super
vision, the minutes of the meetings of the Conference, the Com
mittees, and the Technical Commissions in conformity with the
notes the secretaries shall furnish him.
Fifth. To distribute among the Committees and Technical Com
missions the matters on which they are required to present re
ports, and place at the disposal of the Committees everything that
may be necessary for the discharge of their duties.
(p. 3) Sixth. To prepare the order of the day in conformity
with the instructions of the President.
Seventh. To be the intermediary between the delegations or their
respective members in matters relating to the Conference, and be
tween the delegates and the authorities of the Government of
the United States of America.
Eighth. To perform such other functions as may be assigned
to him by the regulations, by the Conference, or by the President.
S ection V
Technical Secretary General
Art. 8. The Technical Secretary General of the Conference
shall be appointed with the approval of the President of the
United States of America.
The duties of the Technical Secretary General are:
First. To coordinate the work of the Technical Commissions
and their Committees.
Second. To plan and supervise the work of the Secretaries of
the Technical Commissions and their Committees.
Third. To cooperate with the Secretary General by supervising
the preparation of the reports and minutes of the Technical Com
missions and their Committees.
Fourth. To advise the delegations on questions pertaining to the
technical work of the Conference.
Fifth. To advise with the Secretary General on the preparation
of the Final Act and the Proceedings of the Conference.

PROCEEDINGS AND DOCUMENTS

S e c t io n VI
Participants
Art. 9. Participants in the Conference shall be limited to
the following:
(p. 4) (a) Delegates accredited by the governments and au
thorities to which the invitations on behalf of the President of
the United States of America have been extended. Delegates
accredited by the invited governments and authorities shall have
the privilege of attending all plenary sessions and all meetings
of the Technical Commissions of the Conference; shall have the
privilege of addressing the plenary sessions and meetings of the
Technical Commissions and their Committees subject only to reg
ulations hereafter described; shall have the privilege of voting
at all plenary or general sessions and at all of the Technical Com
mission and Committee meetings subject to restrictions hereafter
specified concerning the casting of a delegation vote.
(b) Technical advisers and other members of the delegations
of the governments and authorities which have been invited to
participate may attend with their delegates the plenary or com
mittee sessions and meetings of the Technical Commissions but
they shall not have the right to vote except as hereafter provided.
(c) Such other persons may attend as the Steering Committee
of the Conference may determine.

Chapter III

General Committees of the Conference
The following General Committees shall be consti

Art. 10.
tuted :
(a) Committee on Nominations, composed of five members
appointed by the Temporary President. The Nominating Com
mittee shall propose candidates for the following offices: four
Vice Presidents of the Conference; Chairmen and Vice Chairmen
and Reporting Delegates of the Commissions; Chairmen and Re
porting Delegates of the Committees of Commissions I and I I ;
and the members of the Steering Committee.
(b) Steering Committee, composed of the President of the
Conference as Chairman and ten other members elected by the
Conference, following the receipt of the recommendations of
the Committee on Nominations.
(c) Committee on Credentials, composed of five members ap
pointed by the Temporary President.
(d) Committee on Rules and Regulations, composed of five
members appointed by the Temporary President.

MONETARY ANI) FINANCIAL CONFERENCE

(e)
Coordinating Committee, composed of seven members, the
Committee to be constituted by the Steering Committee.
Art. 11. Prior to the first plenary session, a meeting of the
Chairmen of the delegations shall be held at which the organiza
tion of the Conference shall be considered and recommendations
formulated for submission to the Conference at the first plenary
session.
(P. 5)
Chapter IV

Art. 12. The Conference shall be divided into the following
three Technical Commissions and Committees and such other
Committees as the respective Commissions shall determine.
Commission I. International Monetary Fund
Committee 1. Purposes, Policies and Obligations of the
Fund.
Committee 2. Operations of the Fund
Committee 3. Organization and Management.
Committee 4. Form and Status of the Fund.
Commission II. Bank for Reconstruction and Development.
Committee 1. Purposes, Policies, Capital and Subscription
of the Bank.
Committee 2. Operations of the Bank.
Committee 3. Organization and Management.
Committee 4. Form and Status of the Bank.
Commission III. Other Means of International Financial Coop
eration.
Art. 13. The Reporting Delegate of each Commission shall
present to a plenary session of the Conference the conclusions at
which the Technical Commissions may arrive after they have
been reviewed by the Coordinating Committee.
Art. 14. The representative of the Delegation elected as
Chairman or as Recording Secretary of a Committee of a Tech
nical Commission, shall be the Chairman of the Delegation indi
cated or such other member of that Delegation as the Chairman
may designate.
Art. 15. Each delegation shall be entitled to be represented
by one or more of its members in each of the Technical Commis
sions. The names of such members shall be transmitted by each
delegation to the Secretary General as soon as possible and in
any event before the first regular meeting of each Commission.

PROCEEDINGS AMD DOCUMENTS

(P. 6)
Chapter V

Language of the Conference

Art. 16.
ence.

English shall be the official language of the Confer
Chapter VI

The Delegations

Art. 17. A delegation not present at the session at which a
vote is taken may deposit or transmit its vote in writing to the
Secretary, which shall be counted provided it has been trans
mitted or deposited before the vote is declared closed. In this
event, the delegation shall be considered as present and its vote
counted.
Art. 18. Each delegation shall be entitled to one vote, to be
cast through the chairman or such member as may be designated
to act for the delegation on questions considered at Technical
Commission and Committee meetings or at the plenary sessions
of the Conference. Delegations may arrange for the substitution
of delegates at specified meetings in the manner provided in
Article 26.
Chapter VII

Meetings of the Conference, Conference Committees ,
and Technical Commissions

MONETARY AND FINANCIAL CONFERENCE

unless any delegate should request that they be taken in writing.
In this case each delegate shall deposit in an urn a ballot contain
ing the name of the nation which it represents and the sense in
which the vote is cast. The secretary shall read aloud these
ballots, count the votes, and record the results.
Art. 23. The Conference shall not proceed to vote on any re
port, project or proposal relating to any of the subjects included in
the agenda unless at least two-thirds of the nations attending
the Conference are represented by one or more delegates. The
same proportion of the delegations participating in the Technical
Commissions shall be present before a vote is undertaken at Com
mission meetings. The General Committees likewise shall proceed
to vote only with the attendance of at least two-thirds of their
respective members. In the event of written voting at any ses
sion or meeting, the count shall be taken of the votes deposited
in writing as provided for in Articles 21 and 22, the absent dele
gates being considered present, only for the purpose of the vote,
when they have submitted their vote in the manner indicated.
Art. 24. Except in cases expressly indicated in these Regula
tions, proposals, reports and projects under consideration by the
Conference or by any of the Committees or Technical Commissions
shall be considered approved when they have obtained the affirm
ative vote of an absolute majority of the delegations represented
by one or more of their members at the meeting where the vote
is taken. Any delegation which may have deposited its vote in
the manner prescribed in Article 18 shall be considered as present
at the meeting.
Art. 25. The following may attend the sessions of the Con
ference and the meetings of the Technical Commissions and of
their committees: the delegates, their technical advisers and other
members of their delegations; members of the Secretariat of the
Conference; and any others to whom the Steering Committee of
the Conference may extend this privilege.
Art. 26. Should it be impossible for a delegate to attend a
particular session, either a plenary session or a meeting of a
Technical Commission or Committee, the delegation may desig
nate a member to substitute for him. In such case the one so
designated shall have the right to voice and vote on behalf of
his delegation. Notification of such appointment shall be commu
nicated in advance to the Secretary General, to the Secretary of
the Committee, or to the Secretary of the Technical Commission,
as the case may be.
Art. 27. The opening and closing sessions of the Conference

PROCEEDINGS AND DOCUMENTS

shall be public. Other public sessions may be held when previously
agreed upon and so ordered by a majority vote of the Steering
Committee. The meetings of (p. 8) the Technical Commissions
and their Committees shall be private unless otherwise ordered by
a majority vote of the delegations. The meetings of the General
Committees shall be private.
Art. 28. All new projects or proposals which a delegation
may wish to present to the Conference shall be delivered to the
Secretary General as soon as possible but not later than one week
after the opening plenary session of the Conference. No project
or proposal shall be considered until copies thereof shall have
been distributed by the Secretary General among the participating
delegations. No proposal of a topic which constitutes an addition
to the agenda shall be included unless it has the consent of twothirds of the Steering Committee.
Chapter VIII

Minutes of the Sessions and Publications of the Meeting

Art. 29. The Secretary General shall cause to be kept verbatim
minutes of the public plenary sessions of the Conference. The
Secretary General shall prepare a summarized record of the pro
ceedings of private plenary sessions which shall bo preserved
in the archives of the Conference.
Art. 30. The Secretary of each Technical Commission and of
each Committee shall prepare brief minutes of each session which
shall be approved by the respective Chairmen before presentation
to the Secretary General for distribution to the delegations. These
minutes shall contain a record of the conclusions at which the
Commission or Committee may arrive.
Art. 3.1. The minutes of all private meetings, whether of the
Conference, the Technical Commissions or Committees, shall be
available to the participating governments and authorities but
shall be regarded as confidential.
Art. 32. The conclusions at which the Conference may arrive
shall be incorporated in a Final Act which shall be signed by
the delegates at the final session.
Art. 33. The Government of the United States of America
shall publish the minutes of the public plenary sessions and the
Final Act and shall forthwith transmit certified copies to the
governments participating in the Conference and to the delegates
attending the sessions.
Art. 34. The original minutes and the original copy of the
Final Act shall be preserved in the archives of the Government

MONETARY AND FINANCIAL CONFERENCE

of the United States of America to which they shall be sent by
the Secretary General.
(P.

9)
Chapter IX

Approval of and Amendments to the Regulations

Art. 35 These regulations* after approval by an absolute
majority of the delegations meeting in plenary session, shall be
subject to subsequent modification only upon the recommendation,
by a two-thirds vote, of the Steering Committee and by vote of
two-thirds of the Conference meeting in plenary session.

Document 36
C /N /2
UNITED

NATIONS

MONETARY

AND

FIN ANCIAL

CONFERENCE

Committee on Nominations
Saturday, July 1, 1944
10:00 p.m.
R oom B

Chairman.......... Walter Nash, New Zealand,
Secretary.......... Mr. Frank Coe.
The meeting of the Committee on Nominations was called to
gether by the Chairman, Mr. Walter Nash, the representative of
New Zealand. The members present at the meeting were:
Luxembourg...................... Hugues Le Gallais
Honduras.......................... Julian R. Caceres
Iceland................................ Magnus Sigurdsson
Peru.................................... Pedro Beltran
The Chairman, after convening the meeting, submitted the fol
lowing suggestions for recommendation to the plenary session
for appointment as committees to conduct the business of the
conference. All the suggestions were unanimously approved.
S u g g e s t e d N o m in a t io n s f o r V ic e P r e s id e n t s
of t h e Co n fe r en c e

Mr. M. S. Stepanov, the Chairman of the Delegation of the
Union of Soviet Socialist Republics;
Mr. Arthur de Souza Costa, the Chairman of the Delegation
of Brazil;

PROCEEDINGS AND DOCUMENTS

Mr. Camille Gutt, the Chairman of the Delegation of Belgium;
and
Mr. Leslie G. Melville, the Chairman of the Delegation of
Australia.
(P. 2 )
S u g g ested N o m in a t io n s for t h e S t e e r in g C o m m it t e e

For Chairman of the Committee, the Representative of the
United States.
For Members of the Committee, the Representatives o f:
Belgium
Iran
Brazil
Mexico
Canada
Union of Soviet
China
Socialist Republics
Colombia
United Kingdom
France
S u g g ested N o m in a t io n s for C o m m issio n I— I n t e r n a t io n a l
M onetary F und

For Chairman, the Representative of the United States.
For Vice Chairman, the Representative of Venezuela.
For Reporting Delegate, the Representative of Canada.
(p. 3)
S u g g e s t e d N o m in a t i o n s f o r C o m m it t e e s o f C o m m issio n

Committee No.
Chairman:
Reporter:
Committee No.
Chairman:
Reporter:
Committee No.
Chairman:
Reporter:
Committee No.
Chairman:
Reporter:

1—Purposes, Policies and Quotas of the Fund
The Representative of China
The Representative of Greece
2—Operations of the Fund
The Representative of the Union of Soviet
Socialist Republics
The Representative of the French Committee
3—Organization and Management
The Representative of Brazil
The Representative of Czechoslovakia
4—Form and Status of the Fund
The Representative of Peru
The Representative of Norway

S u g g e s t e d N o m i n a t io n s f o r C o m m issio n II— B a n k f o r
R e c o n s tr u c tio n an d D e v e lo p m e n t

For Chairman, the Representative of the United Kingdom.
For Vice Chairman, the Representative of Chile.
For Reporting Delegate, the Representative of Belgium.

MONETARY AND FINANCIAL CONFERENCE

70
(P.

S u g g e s t e d N o m in a t io n s f o r C o m m it t e e s o f C o m m is s io n I I

Committee No.
Chairman:
Reporter:
Committee No.
Chairman:
Reporter:
Committee No.
Chairman:
Reporter:

1—Purposes, Policies and Capital of the Bank
The Representative of Netherlands
The Representative of Costa Rica
2—Operations of the Bank
The Representative of Cuba
The Representative of Australia
3—Organization and Management
The Representative of Colombia
The Representative of the Union of South
Africa
Committee No. 4—Form and Status of the Bank
Chairman: The Representative of India
Reporter: The Representative of Poland.

S u g g e s t e d N o m in a t io n s f o r C o m m is s io n I I I — O t h e r M e a n s
o f I n t e r n a t i o n a l F in a n c i a l C o o p e r a t io n

For Chairman, the Representative of Mexico.
For Vice Chairman, the Representative of Egypt.
For Reporting Delegate, the Representative of New Zealand.
The Chairman moved at the conclusion of a short discussion
that the suggestions be approved as recommendations to the
plenary sessions, and this resolution was unanimously carried.

Document 40

G D /7
UNITED

NATIONS

MONETARY

AND

FIN ANCIAL

CONFERENCE

Inaugural Plenary Session
July 1, 1944
Assembly Hall, 3:00 p.m.
D r . K e l c h n e r : The United Nations Monetary and Financial
Conference is hereby convened. It is the generally accepted prac
tice for the host government to designate the temporary president
of an international conference held under its auspices. Accord
ingly President Roosevelt has designated as temporary president
of this Conference the Honorable Henry L. Morgenthau, Jr., Sec

PROCEEDINGS AND DOCUMENTS

retary of the Treasury of the United States. Secretary Morgenthau:
S e c r e t a r y M o r g e n t h a u : President Roosevelt has sent a mes
sage to the Conference, and I can think of no more fitting way
to welcome you than to have this message delivered to you at this
time. I request the Secretary General to read President Roose
velt’s message.
M e m b e r s ok t h e C o n f e r e n c e :

I welcome you to this quiet meeting’ place with confidence and with hope.
I am grateful to you for making the long journey here, grateful to your gov
ernments for their ready acceptance of my invitation to this meeting. It is
fitting th a t even while the war for liberation is at its peak, the representatives
of free men should gather to take counsel with one another respecting the
shape of the future which we are to win.
The war has prodded us into the healthy habit of coming together in con
ference when we have common problems to discuss and solve. We have
done this successfully with respect to various m ilitary and production phases
of the war and also with respect to measures which must be taken immediately
after the war is won, such as relief and rehabilitation and (p. 2) distribu
tion of the world’s food supplies. These have been essentially emergency m at
ters. At Bretton Woods, you who come from many lands are meeting for the
first time to talk over proposals for an enduring program of future economic
cooperation and peaceful progress.
The program you are to discuss constitutes, of course, only one phase of
the arrangem ents which must be made between nations to ensure an orderly,
harmonious world. But it is a vital phase, affecting ordinary men and
women everywhere. For it concerns the basis upon which they will be able
to exchange with one another the natural riches of the earth and the products
of their own industry and ingenuity. Commerce is the life blood of a free
society. We must see to it th at the arteries which carry th a t blood stream are
not clogged again, as they have been in the past, by artificial barriers created
through senseless economic rivalries.
Economic diseases are highly communicable. It follows, therefore, that
the economic health of every country is a proper m atter of concern to all its
neighbors, near and distant. Only through a dynamic and a soundly expand
ing world economy can the living standards of individual nations be advanced
to levels which will permit a full realization of our hopes for the future.
The spirit in which you carry on these discussions will set a pattern for
future friendly consultations among nations in their common interest. Further
evidence will be furnished at Bretton Woods th a t men of different nationalities
have learned how to adjust possible differences and how to work together as
friends. The things th at we need to do, must be done—can only be done in
concert. This conference will test our capacity to cooperate in peace as we
have in war. I know th at you will all approach your task with a high sense
of responsibility to those who have sacrificed so much in their hopes for
a better world.
(S ig n ed )

F r a n k l in D el a n o R oosevelt

The Chair recognizes the Chairman
of the Delegation from China.
Secretary M o r g e n t h a u :
71901 ^

•
;

MONETARY AND FINANCIAL CONFERENCE

T h e H o n o r a b l e H s ia n g - H s i R u n g : Mr. President, Fellow
Delegates, Ladies and Gentlemen:
I deeply appreciate the honor conferred upon my country and
myself by the Delegations attending this Conference who have
asked me to respond on their behalf to the encouraging words of
the President of the United States. We have just listened to a
message of hope, (p. 3) realism and far-sighted statesmanship.
We are grateful to the United States for the calling of this Con
ference, which, we believe, marks a long step forward in laying
the foundation for post-war economic collaboration in the interest
of peace and prosperity among the nations.
We thoroughly agree with President Roosevelt that the program
we are to discuss here constitutes a vital phase of the arrange
ments which-must be made among the nations to ensure an orderly
and harmonious world. We have witnessed, especially in the ex
perience of the last twenty odd years, the blighting affects of
monetary instability and dislocation in trade. I am sure you agree
with me that we cannot be said to have w7 the peace unless our
on
peace include international cooperation in monetary affairs as
well as in the task of encouraging and facilitating international
investment for economic reconstruction and development.
It is clear that suitable machinery must be provided to give
effect to these objectives. It will be, therefore, a main duty of this
Conference to set up permanent organizations or agencies for the
consideration of these problems and for making such adjustments
as may from time to time be found desirable and necessary. World
economic forces are so dynamic that we shall be faced with prob
lems of adjustment and change that will continue to occur. Hence
there is need for permanent agencies to deal with these problems
in their international aspects.
The questions we are here considering together, it is clear, are
of vital concern to all of us—both to the countries that have long
suffered through a bitter period of invasion and occupation, and
to the more fortunate countries that have not felt so directly the
blows of the enemy. The great need that will exist after the war
in all parts of the world for all kinds of goods—to bring about,
first, recovery and then progress to higher standards of living—
will require the systematic restoration and improvement of the
productive resources and facilities for trade in all countries. Our
aim can be accomplished only through common action—so that
countries will benefit from mutual accommodation of their policies
and actions.
The world is coming more and more to recognize the interde

PROCEEDINGS AND DOCUMENTS

pendence of countries. We see that the action of one country in
the field of currency and finance may have far-reaching effects
upon the welfare of all. Only by working together can we estab
lish a basis on which we can maintain a high level of prosperity
and employment in our respective countries.
(p. 4) Monetary and financial problems are admittedly com
plicated. The task of the Conference is bound to be as arduous
as it is important. We are gratified to find that the technical
preparations of the Conference have been thorough and complete.
I wish to take this opportunity to offer congratulations to the
Technical Experts from all the nations who participated in the
preliminary discussions for their splendid work which have so
ably paved the way for this Conference.
The quiet and pleasant atmosphere of Bretton Woods provides
a most fitting physical setting for the discussions of the Con
ference which, being a Conference of friendly powers united for
a common purpose, will surely be dominated by a spirit of cordial
ity and cooperation. I am sure we are all conscious of the fact
that the outcome of the Conference will affect the shape of the
peace and the welfare of generations to come. We have before us
a rare opportunity to serve the common people everywhere. I feel
confident that we will all do our best to make the Conference
a success.
Secretary Morgenthau : The Chair next recognizes the Chair
man of the Delegation from Czechoslovakia.
T he H onorable Ladislav F eierabend: Mr. Chairman, Hon
ored colleagues:
I am mindful of the honor bestowed on me, in that I am per
mitted, as one of the humble servants of the people of Czecho
slovakia, to greet the inspiring message of the President of the
United States of America in which he so profoundly character
ized this constructive undertaking of ours for the future peace
whose horizons we can already envisage even though the guns
are still thundering. This is no paradox, for war and peace have
never been abrupt or instantaneous.
Our country has a deep interest in international currency sta
bility and in the creation of an International Stabilization Fund
which would be instrumental in achieving this desired end.
But it is not enough to assert our intentions nor to profess them.
We must practice them. Assertion and profession indicate goals.
We must progress from advocating to actually doing. We are
gathered here to establish two institutions which will, in my opin
ion, greatly enhance the peaceful co-existence of all nations and

MONETARY AND FINANCIAL CONFERENCE

serve as a highway to the security and prosperity for which man
kind has striven so long and for which it is even now paying so
dearly. The basic principles upon which we found these institu
tions must be stability and the opportunity for all to prosper, so
that,—as (p. 5) President Roosevelt put it—we can truly add
this to the spiral upon which our civilization is built. They should
embody and foster the philosophy of man’s humanity and by virtue
of this we may hope to come close enough to the City of God so
that the Deity Himself in glancing at our structure will be inspired
to say “Well Done.”
International Monetary Stability can hardly be achieved with
out an adequate solution of the problem of long term credits, the
fluid and satisfactory evolution of which can in turn be assured
only by a general stability of currencies. Because our country was
entirely occupied before actual shooting began, the Germans suc
ceeded in liquidating for their benefit nearly all our assets
abroad emanating from our active trade balance. And because
we had neither colonies, shipping nor investments outside of con
tinental Europe there are practically no economic assets in friendly
free countries. At home too; the Germans succeeded in robbing and
destroying. Therefore, we will be obliged to begin to set our house
in order with whatever assets we will be able to obtain from abroad
in order to import raw materials, capital goods and other in
struments without which we would be unable to offer employment
to our citizens and assure them of a decent standard of living. In
spite of our present deplorable economic status, we come to this
Conference not to receive a “handout” or to attempt to make the
more fortunate countries the Santa Claus for the rest of us. We
come rather as industrious neighbors whose houses have been
burned down by incendiaries to seek ways of rebuilding without
encroaching upon the rights of those more fortunate whose struc
tures remain to mark the familiar landscape. The existence of an
International Reconstruction Bank and an International Stabiliza
tion Fund would ease our task.
Let me conclude with a humble tribute to the men and women
in the great armies of the United States, Soviet Russia and Great
Britain and China, and the other United Nations, and the people
who stand behind them without whose strength and determination
we could not have survived and whose deeds have kept alive the
courage, faith and endurance of occupied lands. In the words of
Walt Whitman, poet and prophet of the American people and their
democratic way of life:

PROCEEDINGS AND DOCUMENTS

For happy are all free peoples too strong to be
dispossessed,
But happiest are those among nations
That dare to be strong for the rest.
S e c r e t a r y M o r g e n t h a u : It is customary to appoint certain
temporary committees for the purpose of effecting the organiza
tion of the Conference. The draft (p. 6) regulations which were
circulated provide for the appointment of a temporary Committee
on Credentials, a Committee on Rules and Regulations, and a Com
mittee on Nominations, all of which will report to the next plenary
session. The Chair recognizes the Chairman of the Delegation
of India.
S ir A. J. R a is m a n : Mr. President, I move the adoption of the
following resolutions:
“Resolved that the Conference establish the following committess: Committee on Credentials, Committee on Rules and Regu
lations, and Committee on Nominations.
“Resolved that the Temporary President of the Conference be
authorized to appoint the members of the foregoing committees.”
(The motion was seconded and passed.)
S e c r e t a r y M o r g e n t h a u : The Chairman appoints the follow
ing members for the Committee on Credentials:
The Chaii'men of the Delegations of Cuba, Netherlands, Union
of South Africa, Libera and Norway.
To the Committee on Rules and Regulations:
The Chairmen of the Delegations of China, Nicaragua, Poland,
Australia and Iraq.
To the Committee on Nominations:
The Chairmen of the Delegations of New Zealand, Luxembourg,
Honduras, Iceland and Peru.
Next the Chair recognizes the Chairman of the Delegation
of Mexico:
T h e H o n o r a b l e E duardo S u a r e z : Mr. Chairman, Ladies, and
Gentlemen:
(p. 7) It is my privilege to nominate for Permanent President
of the International Monetary Conference, the Honorable Henry
Morgenthau, Jr., Secretary of the Treasury of the United States
of America.
I do this not merely to follow customary procedure in gatherings
of an international character. I submit his name to you in the
light of his personal merits and his achievements as a statesman.
There could hardly be a better occasion than this one to commend
the courageous and far-sighted financial policy carried out under
the Secretary’s immediate responsibility. That policy defied ortho

MONETARY AND FINANCIAL CONFERENCE

dox thinking and set the course that led this great Nation to
economic safety through seemingly unsurmountable difficulties.
It was inspired in the principle that the national income should
be kept at the highest possible level and distributed more equitably,
by means of the full utilization of manpower and resources.
One of the teachings derived from that wise policy is that ex
ternal equilibrium and exchange stability should not be sought
at the expense of internal equilibrium. Rather, they should be
fundamentally the automatic consequence of an harmonious de
velopment of the national economies of all countries.
It is most fitting that this high Assembly by appointing Mr.
Morgenthau as its Permanent President, should pay tribute to
the unfailing devotion of his country to the cause of international
monetary stability.
Had it not been for the effective and timely action of the
Treasury of the United States, the world would have remained for
many more years in the throes of monetary chaos and competitive
depreciation of currencies.
It is because of the perseverance of the pursuit of that goal, that
we now meet under the auspices of the Government of the United
States to reach agreements embodying many of the same prin
ciples which have proved so sound, that they may be applied with
equal advantage throughout the world.
We are confident that we shall attain full success in our en
deavor to create a stable basis upon which nations can freely
interchange their products, thereby raising the standard of living
of humanity as a whole, which aim His Excellency the President
of the United States of America has vigorously and properly set
before us.
Permit me again to ask the Delegates to this Conference to elect
Mr. Morgenthau as our Permanent President.
(p. 8) S e c r e t a r y M o r g e n t h a u : The Chair recognizes the
Chairman of the Delegation of Brazil.
T h e H o n o r a b l e A r t h u r d e S o u za C o st a : Mr. President, Fel
low Delegates, Gentlemen:
It is with the greatest pleasure that I beg to second the nomi
nation of Mr. Morgenthau for the Presidency of this Conference.
There are still in the memory of all of us the drama of monetary
chaos, of restrictions of all sorts of international trade, of blocked
currencies, of economic isolationism, of competition instead of
cooperation among central banks, and of general unemployment.
The civilized world must not permit a repetition of this tragic
situation.

PROCEEDINGS ANJ) DOCUMENTS

The lesson which grew out of this experience is that we all live
in one'world and that the economic destinies of our respective
peoples are mutually interdependent.
We are here united with the objective of establishing the gen
eral principles of economic understanding among nations which
will assure that there will be no repetition of the tragic events of
the inter-war period.
The technical experts of our respective countries have formu
lated the basis of a system of cooperation to guarantee a satisfac
tory equilibrium in the balance of international payments.
The general agreement among these experts is indicative of the
substantial progress already made despite the criticism which al
ways arises from resistance to innovation.
In this Conference we shall endeavor to consolidate these ac
complishments and to establish an interrelationship between the
Monetary Fund and other agencies of international economic and
financial cooperation.
The preliminary work done by the Treasury Department of the
United States constitutes a most appreciable constr-ibution to the
achievement of these objectives. We are indebted to Mr. Morgen
thau for his initiative and leadership in making this Conference
possible and I am confident that these same qualities will con
tribute greatly to the successful conclusion of our efforts.
In closing, I wish to express the thought that it should be our
united purpose to awaken our peoples to the fact that an interna
tional monetary system is essential to the attainment of our com
mon objective of (p. 9) increased productivity, elimination of
unemployment and progressive improvement in living standards.
S ecretary Morgenthau: The Chair recognizes the Chairman
of the Delegation of Canada.
T he H onorable J. L. I lsley :
It is a privilege to support the nomination of the Secretary of
the United States Treasury, Mr. Henry L. Morgenthau, Jr., to be
Permanent President of this Conference.
Since the beginning of the war there has been an ever closer
collaboration between our two countries which has necessitated
the closest association of the United States and Canadian Treas
uries. In my contacts with Mr. Morgenthau I have developed for
him a high degree of respect and regard. It is true the interests
of his country, the United States of America, have always been
his guiding consideration in any dealings with us. But his concern
has been for the broad and long-run interests of his country.
He has seen, as everyone must see that there are two objectives,

MONETARY AND FINANCIAL CONFERENCE

the attainment of which is vital to every one of the United Na
tions, (1) the winning of the war in the shortest possible time
and (2) the perfecting and successful operation of certain plans
of international cooperation after the war, in fields in which
we cooperated ineffectively before the war, and in fields not
previously entered.
These I know to be the Secretary’s views. He is, in large measure,
personally responsible for the very gratifying progress already
made in discussions among officials toward “establishing monetary
arrangements favorable to the expansion of trade and employ
ment”. We would like to feel in Canada that the efforts of Canadian
officials have contributed in some degree toward that progress.
Neither the contribution nor the progress would have been possi
ble without the initiative of the Secretary of the Treasury.
In his letter of instruction, the President has defined the re
sponsibility placed on the delegates of the United States:
“The responsibility which you and the other delegates of the
American delegation will undertake is the responsibility for
demonstrating to the world that international post-war co
operation is possible.”
(p. 10) That is a responsibility in this Conference which all
of us must share. Under no other leadership than Mr. Morgenthau’s would this responsibility be assumed with so great a chance
of success.
The importance of the deliberations we are about to begin
extends far beyond the subject matter of the conference. The
outcome will influence in large measure the successful reestablish
ment of normal commercial pursuits after the war. But above
and beyond this, it will demonstrate to- the world at large, and
in particular to those unhappy people whom we are now begin
ning to liberate from the enemy’s yoke, that the working partner
ship of the United and Associated Nations means to remain in
business after the war.
All of us have a vital national interest in the promotion of
conditions and the establishment of agencies through which world
trade will expand and the world’s productive resources be used
for the benefit of all.
It is in this spirit that the technicians of various countries have
brought forward the proposals that lie at the base of our delibera
tions and it is in this spirit that we associate ourselves with the
work of this Conference.
S e c r e t a r y M o r g e n t h a u : The Chair recognizes the Chairman
of the Delegation of the Union of Soviet Socialist Republics.

PROCEEDINGS AND DOCUMENTS

T he H onorable M. S. S tepanov: Mr. Chairman, Ladies and
Gentlemen:
On behalf of the Delegation of the Soviet Union I have the
pleasure to greet the Monetary and Financial Conference of the
United and Associated Nations, which was initiated by the Gov
ernment of the United States. The present Conference is taking
place in time of great significance when the democratic peoples
are fighting against aggressors and when the armed forces of the
Allies are delivering crushing and powerful blows to Hitlerite
Germany from the East and from the West. I would like to draw
your attention to the great work which has been done by the
Secretary of the United States Treasury, Mr. Morgenthau, his
assistants and experts, the work which made this Conference
possible.
On behalf of the Delegation of the Soviet Union I second the
motion of the Chairman of the Mexican Delegation to nominate
Mr. Morgenthau, the Secretary of the United States Treasury,
as the permanent chairman of the Monetary and Financial Con
ference of the United and Associated Nations.
(p. 11) (Secretary Morgenthau was thereupon elected Per
manent President of the Conference.)
S ecretary Morgenthau: Fellow delegates and members of
the conference:
You have given me an honor and an opportunity. I accept the
presidency of this conference with gratitude for the confidence
you have reposed in me. I accept it also with deep humility. For
I know that what we do here will shape to a significant degree the
nature of the world in which we are to live—and the nature of the
world in which men and women younger than ourselves must round
out their lives and seek the fulfillment of their hopes. All of you,
I know, share this sense of responsibility.
We are more likely to be successful in the work before us if we
see it in perspective. Our agenda is concerned specifically with
the monetary and investment field. It should be viewed, however,
as part of a broader program of agreed action among nations
to bring about the expansion of production, employment and trade
contemplated in the Atlantic Charter and in Article VII of the
mutual aid agreements concluded by the United States with many
of the United Nations. Whatever we accomplish here must be
supplemented and buttressed by other action having this end
in view.
President Roosevelt has made it clear that we are not asked
to make definitive agreements binding on any nation, but that pro

MONETARY AND FINANCIAL CONFERENCE

posals here formulated are to be referred to our respective govern
ments for acceptance or rejection. Our task, then, is to confer, and
to reach understanding and agreement, upon certain basic meas
ures which must be recommended to our governments for the
establishment of a sound and stable economic relationship among
us.
We can accomplish this task only if we approach it not as
bargainers but as partners—not as rivals but as men who recog
nize that their common welfare depends, in peace as in war, upon
mutual trust and joint endeavor. It is not an easy task that is
before u s; but I believe, if we devote ourselves to it in this spirit,
earnestly and sincerely, that what we achieve here will have the
greatest historical significance. Men and women everywhere will
look to this meeting for a sign that the unity welded among us
by war will endure in peace.
Through cooperation we are now overcoming the most fearful
and formidable threat ever to be raised against our security and
freedom. In time, with God's grace, the scourge of war will be
lifted from us. But we shall delude ourselves if we regard victory
as synonymous with freedom and security. Victory in this war
will give us simply the opportunity to mould, through our common
effort, a world that is, in truth, secure and free.
(p. 12) We are to concern ourselves here with essential steps
in the creation of a dynamic world economy in which the people
of every nation will be able to realize their potentialities in peace;
will be able, through their industry, their inventiveness, their
thrift, to raise their own standards of living and enjoy, increas
ingly, the fruits of material progress on an earth infinitely blessed
with natural riches. This is the indispensable cornerstone of
freedom and security. All else must be built upon this. For freedom
of opportunity is the foundation for all other freedoms.
I hope that this conference will focus its attention upon two
elementary economic axioms. The first of these is th is: that pros
perity has no fixed limits. It is not a finite substance to be dimin
ished by division. On the contrary, the more of it that other na
tions enjoy, the more each nation will have for itself. There is
a tragic fallacy in the notion that any country is liable to lose
its customers by promoting greater production and higher living
standards among them. Good customers are prosperous customers.
The point can be illustrated very simply from the foreign trade
experience of my own country. In the prewar decade, about 20
percent of our exports went to the 47 million people in the highly

PROCEEDINGS AND DOCUMENTS

industrialized United Kingdom; less than three percent went to
the 450 million people in China.
The second axiom is a corollary of the first. Prosperity, like
peace, is indivisible. We cannot afford to have it scattered here or
there among the fortunate or to enjoy it at the expense of others.
Poverty, wherever it exists, is menacing to us all and undermines
the well-being of each of us. It can no more be localized than war,
but spreads and saps the economic strength of all the more fav
ored areas of the earth. We know now that the thread of economic
life in every nation is inseparably woven into a fabric of world
economy. Let any thread become frayed and the entire fabric is
weakened. No nation, however great and strong, can remain im
mune.
All of us have seen the great economic tragedy of our time.
We saw the world-wide depression of the 1930’s. We saw currency
disorders develop and spread from land to land, destroying the
basis for international trade and international investment and
even international faith. In their wake, we saw unemployment and
wretchedness—idle tools, wasted wealth. We saw their victims
fall prey, in places, to demagogues and dictators. We saw be
wilderment and bitterness become the breeders of fascism, and,
finally, of war.
(p. 13) In many countries controls and restrictions were set
up without regard to their effect on other countries. Some coun
tries, in a desperate attempt to grasp a share of the shrinking
volume of world trade, aggravated the disorder by resorting to
competitive depreciation of currency. Much of our economic in
genuity was expended in the fashioning of devices to hamper
and limit the free movement of goods. These devices became
economic weapons with which the earliest phase of our pres
ent war was fought by the Fascist dictators. There was an
ironic inevitability in this process. Economic aggression can have
no other offspi'ing than war. It is as dangerous as it is futile.
We know now that economic conflict must develop when nations
endeavor separately to deal with economic ills which are interna
tional in scope. To deal with the problems of international ex
change and of international investment is beyond the capacity of
any one country, or of any two or three countries. These are multi
lateral problems, to be solved only by multilateral cooperation.
They are fixed and permanent problems, not merely transitional
considerations of the postwar reconstruction. They are problems
not limited in importance to foreign exchange traders and bankers
but are vital factors in the flow of raw materials and finished

MONETARY AND FINANCIAL CONFERENCE

goods, in the maintenance of high levels of production and con
sumption, in the establishment of a satisfactory standard of living
for all the people of all the countries on this earth.
Throughout the past decade, the Government of the United
States has sought in many directions to promote joint action
among the nations of the world. In the realm of monetary and
financial problems, this Government undertook, as far back as
1936, to facilitate the maintenance of orderly exchanges by en
tering into the Tri-Partite Agreement with England and France,
under which they, and subsequently Belgium, the Netherlands and
Switzerland, agreed with us to consult on foreign exchange ques
tions before important steps were taken. This policy of consultation
was extended in the bi-lateral exchange arrangements which we
set up, starting in 1937, with our neighbors on the American
continents.
In 1941, we began to study the possibility of international co
operation on a multilateral basis as a means of establishing a
stable and orderly system of international currency relationships
and to revive international investment. Our technical staff—soon
joined by the experts of other nations—undertook the preparation
of practical proposals, designed to implement international mone
tary and financial cooperation. The opinions of these technicians,
as reported in the joint public statement which they have issued,
reveal a common belief that the disruption of foreign exchanges
can be prevented, and the collapse of monetary systems can be
avoided, and a sound currency basis for the balanced growth of
international trade can be provided, if we are forehanded enough
to plan ahead of (p. 14) time—and to plan together. It is the
consensus of these technical experts that the solution lies in a
permanent institution for consultation and cooperation on inter
national monetary, finance and economic problems. The formula
tion of a definite proposal for a Stabilization Fund of the United
and Associated Nations is one of the items on our agenda.
But provision for monetary stabilization alone will not meet
the need for the rehabilitation of war-wrecked economies. It is
not, in fact, designed toward that end. It is proposed, rather, as
a permanent mechanism to promote exchange stability. Even
to discharge this function effectively, it must be supplemented by
many other measures to remove impediments to world trade.
For long-range reconstruction purposes, international loans
on a broad scale will be imperative. We have in mind a need wholly
apart from the problem of immediate aid wT
hich is being under
taken by the United Nations Relief and Rehabilitation Admin

PROCEEDINGS AND DOCUMENTS

istration. The need which we seek to meet through the second
proposal on our agenda is for loans to provide capital for economic
reconstruction, loans for which adequate security may be avail
able and which will provide the opportunity for investment, under
proper safeguards, of capital from many lands. The technicians
have prepared the outline of a plan for an International Bank
for Postwar Reconstruction which will investigate the opportuni
ties for loans of this character, will recommend and supervise
them and, if advisable, furnish to investors guaranties of their
repayment.
I shall not attempt here to discuss these proposals in detail.
That is the task of this conference. It is a task the performance
of which calls for wisdom, for statesmanship, above all for
good will.
The transcendent fact of contemporary life is this—that the
world is a community. On battlefronts the world over, the young
men of all our united countries have been dying together—dying
for a common purpose. It is not beyond our powers to enable the
young men of all our countries to live together—to pour their
energies, their skills, their aspirations into mutual enrichment and
peaceful progress. Our final responsibility is to them. As they
prosper or perish, the work which we do here will be judged.
The opportunity before us has been bought with blood. Let us
meet it with faith in one another, with faith in our common future,
which these men fought to make free.
(The inaugural plenary session was closed with the playing
of the Star-Spangled Banner.)

Document 43

(p. 9)

J OURNAL
UNITED

N ATIONS

No. 3

MONETARY

AND

FINANCIAL

Bretton W o o d s, New Ham pshire

ORDER

THE

DAY

Meetings for Monday, July 3
Second Plenary Session
Commission I
Commission II
Commission III

10
2
3:30
5

a.m.
p.m.
p.m.
p.m.

Auditorium
Auditorium
Auditorium
Auditorium

CONFERENCE
July 3, 1944

MONETARY AND FINANCIAL CONFERENCE

(p. 10)
R e s u m e o f M e e t in g o f t h e C o m m it t e e
o n C r e d e n t ia l s

The Committee on Credentials met on Sunday, July 2, at 9 p.m.,
with Eduardo I. Montoulieu (Cuba) as Chairman. The Committee
will report to the plenary session to be held today at 10 a.m.

Document 47
ID / 2

Opening Remarks of Lord Keynes at the First Meeting
of the Second Commission on the Bank for Reconstruction
and Development
It is our hope that the institution of the Bank for Reconstruction
and Development, to which this Commission is to devote its work,
will .serve the purpose of increasing the health, prosperity and
friendship of the participating countries in two main respects.
In the first place, it will be authorised in proper cases and with
due prudence to make loans to the countries of the world which
have suffered from the devastation of war, to enable them to
restore their shattered economies and replace the instruments of
production which have been lost or destroyed. It is no part of the
purpose of UNRRA to provide funds for reconstruction as distin
guished from the necessary relief and rehabilitation in the days
immediately following liberation. There is, therefore, at present
a gap in the proposals of the United and Associated Nations which
is not yet filled, and to fill which there is no proposal in view
except the institution of this Bank. Yet this is a matter of the
utmost urgency and importance where we should, therefore, press
forward to reach agreement on methods and on details. We do not
know the date of the complete liberation of the occupied countries
of Europe and Asia. But we are now entitled to hope that it will
be not unduly delayed. We should be bitterly failing in duty if we
were not ready prepared for the days of liberation. The countries
chiefly concerned can scarcely begin to make their necessary plans
until they know upon what resources they can rely. Any delay,
any avoidable time lag will be disastrous to the establishment of
good order and good government, and may also postpone the date

PROCEEDINGS AND DOCUMENTS

at which the victorious armies of liberation can return to their
homelands.
(p. 2) I cannot, therefore, conceive a more urgent, necessary
and important task for the Delegates of the forty-four nations
here assembled. I am confident that the members of the Commis
sion of which I have the honour to be the Chairman will devote
themselves to their work in a spirit of full responsibility, well
aware how much depends on their success.
It is likely, in my judgment, that the field of reconstruction from
the consequences of war will mainly occupy the proposed Bank
in its early days. But as soon as possible, and with increasing
emphasis as time goes on, there is a second primary duty laid upon
it, namely, to develop the resources and productive capacity of the
world, with special attention to the less developed countries, to
raising the standard of life and the conditions of labour every
where, to make the resources of the world more fully available to
all mankind, and so to order its operations as to promote and
maintain equilibrium in the international balances of payments
of all member countries.
These two purposes deserve particular emphasis, but are not
exclusive or comprehensive. In general, it will be the duty of the
Bank, by wise and prudent lending, to promote a policy of expan
sion of the world's economy in the sense in which this term is the
exact opposite of inflation. By “expansion” we should mean the
increase of resources and production in real terms, in physical
quantity, accompanied and facilitated by a corresponding increase
of purchasing power. By “inflation” on the other hand, we should
mean the increase of purchasing power corresponding to which
there is no accompanying increase in the quantity of production.
The Bank will promote expansion and avoid inflation.
(p. 3) Under the proposals to be brought before you, the Bank
will be free to operate along three different lines.
A certain part of the Fund’s subscribed capital will be called up
and will be available for direct lending by the Bank for approved
purposes in the currencies of the contributing members.
But the greater part of its subscribed capital will be held
as a reserve fund with which to guarantee two other types of
operations.
The first type of loan eligible for such guarantee will be loans
for suitable purposes and on suitable terms issued through the
ordinary channels of the investment market where on account of
the risks involved there would be difficulty otherwise in placing
the loan on terms which the borrowing country could afford to pay.

MONETARY AND FINANCIAL CONFERENCE

The second type of loan secured by the assets and subscribed
capital of the Bank will also be placed through the ordinary
channels of the investment market but will be offered on the
Bank’s behalf in its own name. The proceeds of such loans will
then be re-lent by the Bank to borrowing countries on terms and
for purposes to be directly agreed with them.
The proceeds of both these types of loan would be freely avail
able for the borrower to make purchases in any member country,
with due regard to economy and efficiency.
Let me now explain the nature of the proposed guarantee, for
this is of a novel character which may be regarded as marking in
a particularly significant way the international character of the
proposed institution.
(p. 4) It is evident that only a few of the member countries
will be in possession of an investable surplus available for over
seas loans on a large scale, especially in the years immediately
following the war. It is in the nature of the case that the bulk of
the lending can only come from a small group of the member
countries, and mainly from the United States. How then can the
other member countries play their proper part and make their
appropriate contribution to the common purpose ?
Herein lies the novelty of the proposals which will be submitted
to you. Only those countries which find themselves in a specially
favoured position can provide the loanable funds. But this is no
reason why these lending countries should also run the whole risk
of the transaction. In the dangerous and precarious days which
lie ahead, the risks of the lender will be inevitably large and
most difficult to calculate. The risk premium reckoned on strict
commercial principles may be beyond the capacity of an im
poverished borrower to meet, and may itself contribute to the
risks of ultimate default. Experience between the wars was not
encouraging. Without some supporting guarantee, therefore, loans
which are greatly in the interests of the whole world, and indeed
essential for recovery, it may prove impossible to float.
Yet, as I have said, there is no reason in a case like this, where
the interests of all countries alike, whether lenders or borrowers,
or exporters, are favourably affected, why the unavoidable risks
should fall exclusively on the lenders, for example, the investors
or the government of the United States, if it turns out that they
are the chief source of available funds.
(p. 5) The proposal is, therefore, that all the member coun
tries should share the risk in proportions which correspond to
their capacity. The guarantees will be joint and several, up to

PROCEEDINGS AND DOCUMENTS

the limit of any member’s subscription, so that the failure of any
member to implement his guarantee will not injuriously affect
the lender, so long as the Bank has other assets and subscriptions
to draw upon, resources which will, according to our proposals,
be of considerable dimensions. Moreover, it is proposed that every
member country should undertake to provide gold or free exchange
up to the full amount of its subscription, in so far as it is called
upon under its guarantee. Therefore the quality of the bonds
thus guaranteed should be of the first order; at any rate they
will be a great deal better than in the case of many borrowing
countries there would be any hope of offering otherwise than under
the auspices of the new institution.
The bonds will be good for several different reasons. In the
first place, they will have behind them the vast resources of the
Bank available in gold or free exchange. In the second place, the
proceeds will be expended only for proper purposes and in proper
ways, after due enquiry by experts and technicians, so that there
will be safeguards against squandering and waste and extrava
gance, which were not present with many of the ill-fated loans
made between the wars. In the third place, they will carry the
guarantee of the borrowing country; and this borrower will be
under an overwhelming motive to do its best and play fair, for
the consequences of improper action and avoidable default to so
great an institution will not be lightly incurred.
(p. 6) But there is also a fourth safeguard of great impor
tance to the guaranteeing countries as well as to the lenders.
There are two reasons for hoping that the guarantors will not
find themselves under any insupportable or burdensome liability.
In the first place, a guarantee will relate to the annual servicing
of the loan for interest and amortisation. Its implementation will,
therefore, be spread over a period corresponding to the term of
the loan and cannot fall due suddenly as a lump sum obligation.
In the second place, there is an interesting and essential feature
of the proposals in the shape of a commission payable by the
borrower in return for its guarantee. It is suggested that for
long-term loans of the normal character this commission should
be at the rate of 1 per cent, per annum. This rate of commission
should be the same for all members alike, for it would be a mis
take, and worse than a mistake, to attempt the invidious task of
discriminating between members and assessing their credit
worthiness in what is really a mutual pool of credit insurance
amongst a group acting in good faith—indeed in the old language
740013

48— 7

MONETARY AND FINANCIAL CONFERENCE

of insurers consecrated by tradition, in the spirit of uberrima fides,
of good faith, complete, abundant and overflowing.
This commission should not be an excessive burden on the bor
rower. 1 per cent, added to the interest appropriate to a loan guar
anteed by the Bank will not be onerous. On the other hand, the
annual receipts from the commission will greatly augment the
free reserves of the Bank available to meet its obligations before
calling on the guarantors. The Bank should aim at so conducting
its business that there would be a good hope of the pool of com
missions being sufficient by itself to carry it most of the way.
(p. 7) Here are the broad outlines of the proposals which you
will be asked to consider. There are other aspects and much detail
for you to work out. For the Bank has not enjoyed so much
discussion as has the Fund prior to this Conference.
But I believe that we have before us a proposal the origins of
which we owe primarily to the initiative and ability of the United
States Treasury, conceived on sound and fruitful lines. Indeed,
I fancy that the underlying conception of a joint and several
guarantee of all the member countries throughout the world, in
virtue of which they share the risks of projects of common in
terest and advantage even when they cannot themselves provide
the lump sum loan originally required, thus separating the carry
ing of risk from the provision of funds, may be a contribution
of fundamental value and importance to those difficult, those al
most overwhelming tasks which lie ahead of us, to rebuild the
world when a final victory over the forces of evil opens the way
to a new age of peace and progress after great afflictions.
3rd July 1944.

Document 51

Commission I
C o m m itte e A s s ig n m e n ts

Committee 1. Purposes, Policies, and Quotas of the Fund
Article I. Purposes and Policies of the Fund
Article II. Subscription to the Fund
Sec. 1. Countries eligible for membership
Sec. 2. Quotas

PROCEEDINGS AND DOCUMENTS

Sec. 3. Time and place of payment
Sec. 4. Adjustment of quotas
Sec. 5. Initial payments
Sec. 6. Payments when quotas are changed
Article IX. Obligations of Member Countries
Sec. 1. Purpose and scope of additional undertakings
Sec. 2. Gold purchases based on parity prices
Sec. 3. Foreign exchange dealings based on par values
Sec. 4. Exchange controls on current payments
Committee II. Operations of the Fund
Article III. Transactions with the Fund
Sec. 1. Agencies dealing with the Fund
Sec. 2. Conditions upon which any member may purchase cur
rencies of other members
Sec. 2 (a). Conditions governing purchases for capital transfers
Sec. 3. Declaring members ineligible to use the resources of
the Fund
Sec. 4. Limitation on the operations of the Fund
Sec. 5. Operations for the purpose of preventing currencies
from becoming scarce
Sec. 6. Multilateral international clearing
Sec. 7. Acquisition by members of the currencies of other mem
bers for gold
Sec. 8. Other acquisitions of gold by the Fund
(p. 2) Sec. 9. Transferability and guarantee of the assets of
the Fund
Sec. 10. Charges and commissions
Sec. 11. Furnishing information
Sec. 12. Consideration of representations of the Fund
Article IV. Par Values of Member Currencies
Sec. 1. Par values of the currencies of members
Sec. 2-4. Changes in par values
Sec. 5. Uniform changes in par values
Sec. 6. Protection of the assets of the Fund
Sec. 7. Separate currencies within a member’s jurisdiction
Article V. Capital Transactions
Sec. 1. Use of the resources of the Fund for transfers of
capital
Sec. 2. Limitation on controls of capital movements
Article VI. Apportionment of Scarce Currencies
Sec. 1. General scarcity

MONETARY AND FINANCIAL CONFERENCE

Sec. 2. Scarcity of the Fund’s holdings
Article X. Transitional arrangements
Sec. 1. Exchange restrictions and currency arrangements and
practices retained
Sec. 2. Withdrawal of exchange restrictions
Sec. 3. Policy of the Fund during the transition period
Article XIII. Final Provisions
Sec. 5. Fixing initial par values
Committee III. Organization and Management of the Fund
Article VII. Management of the Fund
Sec. 1. Board of Governors
Sec. 2. The Executive Directors
Sec. 3. Voting
(p. 3) Sec. 4. The General Manager
Sec. 5. Publication of reports
Sec. 6. Depositories
Sec. 7. Form of holdings of currency
Sec. 8. Relationship to other international organizations
Sec. 9. Location of offices
Sec. 10. Distribution of net income of the Fund
Sec. 11. Miscellaneous powers
Article VIII. Withdrawal from the Fund
Sec. 1. Right of members to withdraw
Sec. 2. Suspension of membership or compulsory withdrawal
Sec. 3. Settlement of accounts with countries ceasing to be
members
Sec. 4. Liquidation of the Fund
Committee IV. Form and Status of the Fund
Article IX. Obligations of Member Countries
Sec. 5. Immunity of assets of the Fund
Sec. 6. Immunity from suit
Sec. 7. Restrictions on taxation of Fund, its employees and
obligations
Article XI. Amendments
Article XII. Interpretation of the Agreement
Sec. 1. Interpretation
Sec. 2. Definitions
Sec. 3. Effect on other international commitments
Article XIII. Final Provisions
Sec. 1. Acceptance of membership in the Fund
Sec. 2. Effective date of the Agreement

PROCEEDINGS AND DOCUMENTS

Sec. 3. Calling the initial meeting of the Fund
Sec. 4. Agenda of the initial meeting
Article XIV. Execution of the Agreement

Document 52

Report of the Committee on Rules and Regulations
The Committee on Rules and Regulations met on Saturday,
July 1 at 9 p.m.
The Committee had before it the preliminary draft regulations
which had been distributed to all delegations in advance of the
Conference and the revision of these regulations (Conference
Document SN/1) which had been distributed to the members of
the Conference during the day.
The Committee received from the Secretariat an explanation
of the changes in drafting which had been made in the regulations
since they were first distributed. In the interests of clarification
the Committee adopted certain additional changes of phraseology
and arrangement.
The Committee unanimously approved the regulations as
amended and submits them herewith to the Conference for adop
tion.
The only changes introduced by the Committee since the dis
tribution of the draft to the Conference on July 1 are the follow
ing:
Article IX, Paragraph (b). The last sentence of this para
graph is made a separate Paragraph (c).
Article X (a). With reference to the functions of the Com
mittee on Nominations, and having in mind the action of the
Conference at its Inaugural Session in electing its Permanent
President, the deletion of the reference to the Permanent Presi
dent in this paragraph.
Article XXVIII. Insert after the first word of the Article
the word “new”.
Submitted by: Leslie G. Melville, Australia
Ibrahim Kama], Iraq
Guillermo Sevilla Sacasa, Nicaragua
Ludwig Grosfeld, Poland
H. H. Kung, China, Chairman
Philip C. Jessup, Secretary

MONETARY AND FINANCIAL CONFERENCE
Document 53
C /R R /6

Minutes of the Committee on Rules and Regulations
Saturday, July 1, 1944, 9 p.m.

The Committee on Rules and Regulations met in Room A at
9 p.m. on Saturday, July 1. The Chairman, Dr. H. H. Kung (China)
presided. The following members of the Committee were also
present: .
Leslie G. Melville, Australia
Ibrahim Kamal, Iraq
Guillermo Sevilla Sacasa, Nicaragua
Ludwik Grosfeld, Poland
Dr. Kelchner, the Secretary General, also attended.
The Chairman called on the Secretary to make a report to the
Committee concerning the drafts of the regulations which had
already been distributed.
The Secretary reminded the Committee that a preliminary draft
of the regulations, prepared by the Secretary General in accord
ance with international precedents, had been circulated to the
delegations some days before the Conference opened. A revision
of that preliminary draft had been distributed to the delegates
during the day. The Secretary proceeded to call attention to the
changes which had been made and to explain the reasons for
them. In addition to the changes already incorporated in the
draft regulations as circulated in Conference Document SN/1
(C/RR/1) the Secretary called attention to changes in drafting
in the third paragraph of article 8 and in paragraph (a) of
article 10.
The Chairman then inquired whether there were any other sug
gestions for changes in the draft regulations.
Mr. Grosfeld suggested that the last sentence of paragraph
(b) of article 9 be made paragraph (c) of that article. This sug
gestion was accepted.
(p. 2) Mr. Grosfeld also suggested a clarification of the phras
ing of article 28 to make it clear that it did not refer to the
ordinary exchange of views or amendments introduced in the
course of Committee discussions. After discussion the suggestion
was adopted.
Mr. Melville inquired whether the provisions in chapter 7 of the
regulations contemplated that formal ballots would need to be
taken on each point as it arose. He felt that if this were the case

PROCEEDINGS AND DOCUMENTS

it might unnecessarily prolong the proceedings. At the request
of the Chairman, the Secretary General explained that what Mr.
Melville feared was quite the opposite of what was contemplated
under the regulations. He explained that in accordance with the
customary practice of such international conferences the Com
mittees and Commissions would proceed merely by taking the
consensus of the group and that it was not contemplated that
formal record votes by delegations would be taken on the various
points as they arise in the course of the discussions. Mr. Melville
felt that in the light of this explanation no change in the regula
tions was necessary.
There being no further suggestions the Chairman inquired
whether it was the desire of the Committee that the draft regu
lations as amended should be submitted to the Conference on
Monday as the report of the Committee. The members of the Com
mittee having unanimously indicated their approval of this course
of action, the Chairman instructed the Secretary to prepare the
report. The Committee then adjourned.
H. H. Kung, Chairman
Philip C. Jessup, Secretary

Document 55

(p. 11)

J OURNAL
UNITED

NATIONS

MONETARY

No. 4

AND

FINANCIAL

CONFERENCE

Bretton W o o d s, New Ham pshire

ORDER

THE

July 4, 1944

DAY

Meetings for Tuesday, July 4
10
10
11:30
LI:30
4
4
5:30

a.m.
a.m.
a.m.
a.m.
p.m.
p.m.
p.m.
p.m.

Committee
Committee
Committee
Committee
Committee
Committee
Committee
Committee

1
3
2
4
1
3
2
4

of
of
of
of
of
of
of
of

Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission

I
I
1
I
I
I
I
I

Auditorium
The Hemicycle
Auditorium
The Hemicycle
Auditorium
The Hemicycle
Auditorium
The Hemicycle

(f.1 2 )
R e s u m e o f t h e S e c o n d P l e n a r y S e s s io n
(Auditorium, July 3, 10 a.m.)

The Second Plenary Session of the Conference was held at 10

MONETARY AND FINANCIAL CONFERENCE

a.m. on July 3. The reports of the Committee on Credentials, the
Committee on Rules and Regulations, and the Committee on Nomi
nations were received and approved.
The Delegate of Peru proposed a resolution on the occasion of
the Independence Day of the United States. Charles W. Tobey,
Senator from New Hampshire and a member of the United States
Delegation, responded with an inspired addfess.
R e s u m e o f C o m m issio n M e e t in g s

Commission I. International Monetary Fund
(July 3, 2 p.m.)

The first meeting of Commission I was held on July 3 at 2 p.m.
The Chairman, Mr. White (U.S.A.), addressed the Commission,
explaining the need for the Fund and the objectives of the Fund.
After the conclusion of his remarks, the Chairman requested the
delegations to submit the names of their members on the Com
mission to the Secretary General or to the Secretary of the Com
mission. It was announced that the basic documentation for the
work of Commission I would consist of the Preliminary Draft of
July 1, 1944, the first part of which had already been distributed,
in addition to the P r e lim in a r y Draft Outline of July 10, 1943 and
the Joint Statement of April 21, 1944.
(Minutes of the meeting are being distributed separately as
document ±t58.)
Commission II, Bank for Reconstruction
and Development
(July 3, 3:30 p.m.)

The organizational meeting of Commission II was held at 3:30
p.m. on Monday, July 3. The Chairman, Lord Keynes (United
Kingdom), explained the purposes of the Commission, and, in
accordance with his recommendation, an agenda committee was
established preparatory to further meetings of the Commission
and its member Committees.
(Minutes of the meeting are being distributed separately as
document #60.)
(P. 13)

Commission III. Other Means of International
Financial Cooperation
(July 3, 5 p.m.)

The first meeting of Commission III was held at 5 p.m. on
July 3. The Chairman, Mr. Suarez (Mexico), outlined the scope

PROCEEDINGS AM) DOCUMENTS

and nature of the work of the Commission. An agenda committee
consisting of live members was appointed for the purpose of
receiving suggestions and making recommendations as to the
specific problems which should be dealt with in Commission III.
(Minutes of the meeting are being distributed separately as
document #81.)
T y p o g r a p h ic E r r o r in R e g u l a t io n s

Attention is called to a typographic error in the Regulations as
distributed (Conference Document 34, C/RR/4(C/RR/1)).
In article 24, last sentence, the reference should be to article 17
instead of article 18.

Documeni 56
DP/1

M ex/cjn Delegation

Proposal on Voting Changes in Rates of
Member Currencies
W h e r e a s th e p rop osed d istr ib u tio n o f v o tin g p ow er in con n ec
tion w ith a lte r in g th e r a te s o f ex ch a n g e o f a m em ber country
p laces c o u n tr ie s w ith sm a ll q u otas in a n o to rio u sly d isa d
v a n ta g e o u s p o sitio n as com p ared w ith th a t o f th e co u n tries
w ith th e la r g e st q u o ta s ;
W h er ea s under th e p rop osed v o tin g sy ste m a co a litio n o f a sm all
n um b er o f m a jo r m em b er co u n tries c o n tr o llin g th e m a jo rity
o f v o te s is in a p o sitio n to ap p ro v e ch a n g e s in the ra tes o f th eir
ow n cu rren cies w h ile su ch a co a litio n eq u ally could p rev en t
ch a n g e s in th e r a te s o f all o th er m em b er cu r re n cie s;
W h e r e a s all th e co u n tries h a v in g th e sm a ller q u otas even if th ey
ca st ail th e ir v o tes to g e th e r could n ev er a tta in such an o v er
w h e lm in g p o s it io n ;
W h e r e a s th e s ta b ility o f th e ex ch a n g e r a te s o f th e econ om ically
w ea k er co u n tries is la rg ely d ep en d en t upon th e r esp o n sib ility
o f th e eco n o m ica lly str o n g e r co u n tries fo r m a in ta in in g a h igh
level o f em p lo y m en t and n a tio n a l in co m e; and
W h e r e a s , th e r e fo r e , a ch a n g e in th e r a te s o f th e le ss im p o rta n t
cu rren cies a ffects in te r n a tio n a l m o n eta ry eq u ilib riu m to an e x
te n t v e r y m uch sm a ller th a n a ch a n g e in th e ra te s o f th e m a jo r
c u r r e n c ie s ;

MONETARY AND FINANCIAL CONFERENCE

The Mexican Delegation submits the following
MODIFICATION
of Article IV, Section 4, of the Joint Statement:
After consulting the Fund, a member country may change the
established parity of its currency, provided the proposed (p. 2)
change, inclusive of any previous change since the establishment
of the Fund, does not exceed 10 c for the country having a quota
/c
ten per cent or more of the aggregate quotas, and not to exceed
20 'r in the case of a country having less than ten per cent of the
aggregate quotas. In the case of application for a further change
not covered by the above and not exceeding 10 per cent for the
country having a quota ten per cent or more of the aggregate
quotas, and not to exceed 20 per cent in the case of a country
having less than ten per cent of the aggregate quotas, the Fund
shall give its decision within two days of receiving the application,
if the applicant so requests.

Document 58
C l/M /1

Minutes of Meeting of Commission I
July

3, 1 9 4 4 , 2

p.m.

The first meeting of Commission I was called to order by the
Secretary General, who announced that in conformity with the
rules and regulations adopted July 3, 1944, Harry D. White
(U.S.A.) had been designated Chairman, Rodolfo Rojas (Vene
zuela), Vice Chairman, and L. Rasminsky (Canada), Reporting
Delegate. Mr. White took over the Chair and introduced the Secre
tary of the Commission, Leroy D. Stinebower, and the Assistant
Secretary, Mrs. Eleanor Lansing Dulles. (The Secretaries will be
available in room 156 for assistance to the members of the Com
mission.)
Mr. White then addressed the Commission, explaining the ob
jectives of the Fund and its importance for full production and
employment, and for improvement of the standard of living in
all peace-loving countries. He stressed the danger of economic
warfare and the need for fostering multilateral trade. He said
that the international monetary fund is designed to promote ex
change stability, to assure multilateral payment facilities, and to
lessen international disequilibrium.

PROCEEDINGS AND DOCUMENTS

The Chairman asked the Delegations to submit the names of
members on Commission I to the Secretary General (room 136)
or to the office of Commission I (room 156). He said that it had
been decided that the work of the Commission would be divided
into four Committees according to the agenda already distributed,
and that the Committees would usually report their conclusions
to the Commission after each two meetings.
It was announced that the basic documentation for the work
of Commission I, in addition to the Preliminary Draft Outline and
the Joint Statement, will include the Preliminary Draft of July 1,
1944 (SA /1). (This document is not yet complete but the first
part has been distributed.)
The Chairman announced that Committees 1 and 3 would meet
at 10 a.m., July 4, 1944, and Committees 2 and 4 at 11:30, the
placcs of meeting to be announced. The Committees will also meet
in the afternoon.
The Commission was thereupon adjourned, to meet again at the
call of the Chairman.

Document 59
C l/ R / 1

Opening Remarks of Mr. Harry D. White at the First
Meeting of the Commission on the International
Monetary Fund
Each of the United and Associated Nations has as a fundamental
objective the creation of as full production and employment as is
possible in its own country. This is the only practical way to
improve the standard of living in the peace-loving nations. But
this objective is attainable only if there is the fullest trade among
the nations based on the interests of all. It cannot be achieved
if military warfare is followed by economic warfare—if each
country, to the disregard of the interests of other countries,
battles solely for its own short-range economic interests. The
unrestrained economic fighting of the 1930\s points clearly to the
conclusion that such economic warfare is neither in the best
interests of the particular country nor in the general interest of
all countries. Unrestrained economic warfare, if allowed to
continue in the future, will again disrupt production and employ
ment by destroying international trade and injuring national mar
kets. It will undermine one of the foundation stones for a secure
peace.

MONETARY AND FINANCIAL CONFERENCE

Some examples from the United States may illustrate what
I mean: The condition of American cotton, tobacco, and other agri
cultural producers depends upon the ability of European and
other countries to buy substantial portions of their crops. If
Europe is not prosperous and the proper mechanisms of trade
are not used, these American producers will not be able to export
as much of their produce. At the same time the prosperity of
other parts of the world and of the United States depends on
the importation of raw materials from foreign countries. The
higher the production levels in the United States and the more
efficient the trade mechanisms, the more raw7 materials we import
from (p. 2) abroad. Both the United States and other coun
tries are thus benefited. A unilateral or bilateral approach to our
trade problems cannot produce the highest benefits for the peaceloving nations. The approach must be multilateral.
The proposal for an International Monetary Fund w7
hich we
are to consider in this Commission is designed to promote the
development of international markets by providing a permanent
institution for international monetary cooperation. It would pro
mote exchange stability, assure multilateral payment facilities,
help lessen international disequilibrium, and give confidence to
member countries. Only by developing the necessary machinery
to maintain multilateral ron-discriminatory trading among na
tions can we hope to avoid resort to exchange restrictions, quotas,
and other devices which inevitably cause a contraction of trade
and production. The proposed Fund, w7
hich is before you for
consideration, would be an important influence toward stability
in international monetary and economic relations.
Clearly it is going to be a difficult task to get over all the ground
that we hope to cover before the end of the Conference. We can
be successful only if we concentrate on the job and cooperate
to the fullest possible extent. That is the task of this Commission
and its various Committees.

Document 60
C l l/ M / 1

Minutes of Meeting of Commission II
Ju ly 3, 1944, 3:30 p.m.

The Secretary General called the meeting to order and an
nounced the election by the Conference of representatives of the

()c k t:i) i n (;s a l\j) i ) o (:i m k j n t s

United Kingdom, Chile, and Belgium to the positions of Chairman,
Vice Chairman, and Reporting Delegate, respectively. He also
announced that the respective delegations had nominated Lord
Keynes as Chairman, Luis Alamos Barros as Vice Chairman,
and Georges Theunis as Reporting Delegate.
Lord Keynes assumed the Chair and introduced the Secretaries
of the Commission, Messrs. Upgren and Smithies, and the As
sistant Secretary, Miss Russell, who will be available in room 147
for assistance to members of the Commission.
The Chairman then delivered a brief address (copies of which
have been separately distributed), on the purposes of the pro
posed United Nations Bank for Reconstruction and Develop
ment.
The Chairman suggested that it would be advisable to appoint
an agenda committee to assemble suggestions from the various
delegations and prepare for the next meeting of the Commission.
The Delegate of Ecuador thereupon moved that the Chairman’s
suggestion be adopted and that the Chairman be empowered to
appoint a committee. The motion was seconded by the Delegate of
Haiti and carried unanimously.
The Chairman announced that the members of the Committee
would be representatives of the following delegations:
United Kingdom, Chairman
Brazil
French Committee
Canada
India
China
Union of Soviet Socialist
Cuba
Republics
Czechoslovakia
United States of America
The meeting was thereupon adjourned until further notice.

Document 61

cm ;M'1

Minutes of Meeting of Commission III
Ju ly 3, 1944, 5 p.m.

The meeting was opened by the Secretary General who an
nounced the election of officers of Commission III and intro
duced the Chairman, Eduardo Suarez (Mexico), the Vice Chair
man, Sany Lackany Bey (Egypt), and the Reporting Delegate,
A. G. B. Fisher (New Zealand).

100

MONETARY AND FINANCIAL CONFERENCE

The Chairman discussed the nature and scope of the work of the
Commission. He pointed out that Commission III will not be deal
ing with specific proposals that have been the subject of extended
consultation and study by the technical representatives of various
nations.
A motion was passed authorizing the Chairman to appoint a
committee to receive suggestions and make recommendations as
to the problems which should be dealt with by the Commission.
The Chairman appointed the following agenda committee:
Representative of Poland, Chairman
Representative of the Netherlands, Reporter
Representatives of Chile, Ethiopia, and
Uruguay, Members
Delegates were requested to submit specific problems to the
committee during the next three days through the Technical
Secretary (office, room 151).
The meeting was thereupon adjourned until further notice.

Document 63
G D /1 2

Verbatim Minutes of the Second Plenary Session
(July 3, 15)44, 10 a.m.)

S e c r e t a r y M o r g e n t h a u : The Second Plenary Session of the
United Nations Monetary and Financial Conference is hereby
convened.
I recognize the Chairman of the Delegation of Cuba, who will
present the report of the Committee on Credentials.
M r . M o n t o u l ie u :

Report o f the Com m ittee on Credentials

July 2, 19AA
The Committee appointed by the Temporary President of the
United Nations Monetary and Financial Conference to examine the
credentials of its participants met under the chairmanship of the
Honorable Eduardo I. Montoulieu, Chairman of the Delegation
of Cuba, on July 2, 1944, at 9 p.m. The Committee consisted of
representatives of Cuba, Liberia, Netherlands, Norway, and Union
of South Africa. The credentials of the representatives of the
following governments or authorities were examined and found

PROCEEDINGS AND DOCUMENTS

101

to be in good order: Australia, Belgium, Bolivia, Brazil, Canada,
Chile, China, Colombia, Costa Rica, Cuba, Czechoslovakia, Do
minican Republic, Ecuador, Egypt, El Salvador, Ethiopia, French
Delegation, Greece, Guatemala, Haiti, Honduras, Iceland, India,
Iran, Iraq, Liberia, Luxembourg, Mexico, Netherlands, New
Zealand, Nicaragua, Norway, Panama, Paraguay, Peru, Philip
pine Commonwealth, Poland, Union of South Africa, Union of
Soviet Socialist Republics,. United Kingdom, United States, Uru
guay, Venezuela, and Yugoslavia. The Committee therefore rec
ommends the approval of these credentials and the accordance
of full right of participation in the Conference.
The Committee on Credentials also had occasion to read a
letter dated June 2, 1944, from the Honorable Cordell Hull, Sec
retary of State of the United States, to the Honorable Henrik de
Kauffmann, Minister of Denmark, inviting him to attend in his
personal capacity the inaugural plenary meeting of the Confer
ence. It also had before it the reply of the Danish Minister dated
June 3, 1944, accepting this invitation and stating that he would
be accompanied to Bretton Woods by an adviser. Inasmuch as
no question of credentials was raised by these letters, the Com
mittee agreed to refer their subject matter to the Conference and
would be pleased if an invitation could be extended to the Danish
Minister to attend further meetings of this Conference, without
the privilege of a vote.
(p. 2) The Committee on Credentials also had occasion to read
letters dated. June 12, 1944 from the Honorable Dean Acheson,
Assistant Secretary of State of the United States, to the appro
priate officials of the following international organizations inviting
each of these organizations to send an observer to the Confer
ence: The International Labor Office, the United Nations Relief
and Rehabilitation Administration, the Economic Section of the
League of Nations, and the United Nations Interim Commission
on Food and Agriculture, in response to which each of these organi
zations had indicated its desire to send observers pursuant to such
invitation. Inasmuch as no question of credentials was raised by
this matter, the Committee merely reports it to the Conference
with a request that the observers be invited to attend the sessions
of the Conference, without the privilege of a vote.
Eduardo I. Montoulieu,
Chairman
Edward G. Miller, Jr.,
Secretary
M r . M o n t o u l ie u : The Committee also prepared a draft of a

102

MONETARY AND FINANCIAL CONFERENCE

resolution which I move be adopted. The resolution reads as
follows:
A Resolution Approving and Adopting the
Report of the Committee on Credentials
W h er ea s,

The Committee on Credentials appointed by the Temporary Chair
man has convened, examined the credentials of the representatives
of the participating governments or authorities, their technical ad
visers and other assistants, and made its report, a copy of which
is annexed hereto and made a part hereof, now therefore
B e I t R eso lved ,

That the aforesaid Report be, and hereby is, in all respects ap
proved and adopted; that the representatives of the participating
governments or authorities, technical advisers, and other assist
ants, be accredited in accordance therewith; that the Conference
invite the Danish Minister, in his personal capacity, and an ad
viser, to attend further meetings of the Conference without the
privilege of a vote; and that the Conference invite the Interna
tional Labor Office, the United Nations Relief and Rehabilitation
Administration, the Economic Section of the League of Nations,
and the United Nations Interim Commission on Food and Agri
culture to send one observer from each organization to attend the
sessions of the Conference without the privilege of a vote.
(p . 3 )
S ecretary M o r g e n t h a u : G en tlem en , you h a v e h eard
th e re so lu tio n . A n y d isc u ssio n ?

(None.)
All those in favor of the resolution please signify by saying
“Aye”.
(Aye.)
S ecretary M o r g e n t h a u : C on tra ry m in d ed ?

(None.)
(The motion was duly seconded and passed.)
I now recognize Dr. Kung, Chairman of the Committee on Rules
and Regulations of the Conference, who will present the report
of this committee.
Dr. K u n g :

Report o f the Com m ittee on R ules and R egulations

The Committee on Rules and Regulations met on Saturday, July
1, at 9 p.m.
The Committee had before it the preliminary draft regulations
which had been distributed to all delegations in advance of the
Conference and the revision of these regulations (Conference Doc

PROCEEDINGS AND DOCUMENTS

103

ument SN/1) which had been distributed to the members of the
Conference during the day.
The Committee received from the Secretariat an explanation
of the changes in drafting which had been made in the regulations
since they were first distributed. In the interests of clarification
the Committee adopted certain additional changes of phraseology
and arrangement.
The Committee unanimously approved the regulations as
amended and submits them herewith to the Conference for
adoption.
The only changes introduced by the Committee since the dis
tribution of the draft to the Conference on July 1 are the
following:
Article 9, paragraph (b ). The last sentence of this paragraph
is made a separate paragraph (c).
Article 10 (a ). With reference to the functions of the Com
mittee on Nominations, and having in mind the action of the
Conference at its Inaugural Session in electing its Permanent
President, the deletion of the reference to the Permanent Presi
dent in this paragraph.
(p. 4) Article 28. Insert after the first word of the article
the word “new”.
Submitted by: Leslie G. Melville, Australia
Ibrahim Kamal, Iraq
Guillermo Sevilla Sacasa, Nicaragua
Ludwik Grosfeld, Poland
H. H. Kung, China, Chairman
Philip C. Jessup, Secretary
D r . K u n g : M r. President, may I move that this report be
adopted by the Conference.
S ecretary M o r g e n t h a u : With reference to that part of the
report of the Committee on Rules and Regulations which makes
a slight change in article 28 in the interest of clarity, the Chair
understands that the Committee had in mind making it plain that
article 28 refers to additional matters which it might be desirable
to bring into the discussion. In regard to these new matters,
article 28 requires delivery to the Secretary General and special
advance distribution. Article 28 of the Regulations, in the under
standing of the Chair, is not intended to apply to the ordinary ex
change of views or amendments introduced in the normal course
of committee discussions. The Chair understands, however,
that any important amendments to any text changes under
consideration by a committee or commission will not be submitted
7 4 9 0 1 3 — 48— 8

104

MONETARY AND FINANCIAL CONFERENCE

to the committee or commission for any final expression of its
views until after a lapse of time sufficient to enable the delega
tions to give careful consideration to the proposed modification
of the text. Of course, like all other rules of the Conference, this
procedure might be varied by unanimous consent if considered
desirable.
I now recognize the Chairman of the Delegation of Poland.
Mr. G r o s f ie l d : I second the motion of the Chairman of the
Chinese Delegation. The regulations, or the proposed regula
tions, give, I am sure, the full opportunity to every delegation
to express their views and at the same time they guarantee an
efficient functioning of the Conference. I, therefore, beg you
to approve the proposed regulations.
S ecretary M o r g e n t h a u : D o I h ea r a n y o b je ctio n s?

(Pause.)
I hear no objections. All those in favor say “Aye.”
(Aye.)
S ecretary M o r g e n t h a u : O pposed?

(None.)
(p. 5) (The regulations were duly approved.)
I recognize the Chairman of the Delegation of New Zealand,
Mr. Nash, who will present the report of the Committee on
Nominations.
Mr . N a s h :

Report o f the Com m ittee on N om inations
S a tu r d a y , Ju ly 1, 1044, 10 p.m.

Chairman—Walter Nash, New Zealand
Secretary—Frank Coe
The meeting of the Committee on Nominations was called
together by the Chairman, Mr. Walter Nash, the Representative
of New Zealand. The members present at the meeting were:
Luxembourg
Iiugues Le Gallais
Honduras
Julian R. Caceres
Iceland
Magnus Sigurdsson
Peru
Pedro Beltran
The Chairman, after convening the meeting, submitted the fol
lowing suggestions for recommendation to the plenary session
for appointment as committees to conduct the business of the Con
ference. All the suggestions were unanimously approved.
Suggested Nominations for Vice Presidents of the Conference
Mr. M. S. Stepanov, the Chairman of the Delegation of the
Union of Soviet Socialist Republics;

PROCEEDINGS AND DOCUMENTS

105

Mr. Arthur de Souza Costa, the Chairman of the Delegation
of Brazil;
Mr. Camille Gutt, the Chairman of the Delegation of Belgium;
and
Mr. Leslie G. Melville, the Chairman of the Delegation of
Australia.
Suggested Nominations for the Steering Committee
For Chairman of the Committee, the Representative of the
United States.
For Members of the Committee, the Representatives of:
Belgium
Iran
Brazil
Mexico
Canada
Union of Soviet Socialist
China
Republics
Colombia
United Kingdom
French Delegation
(p. 6)
Suggested Nominations for Commission I— International
Monetary Fund
For Chairman, the Representative of the United States.
For Vice Chairman, the Representative of Venezuela.
For Reporting Delegate, the Representative of Canada.
Suggested Nominations for Committees of Commission I
Committee No. 1—Purposes, Policies, and Quotas of the Fund
Chairman: The Representative of China
Reporter: The Representative of Greece
Committee No. 2—Operations of the Fund
Chairman: The Representative of the Union of Soviet So
cialist Republics
Reporter: The Representative of the French Delegation
Committee No. 3—Organization and Management
Chairman: The Representative of Brazil
Reporter: The Representative of Czechoslovakia
Committee No. 4—Form and Status of the Fund
Chairman: The Representative of Peru
Reporter: The Representative of Norway
Suggested Nominations for Commission II— Bank for
Reconstruction and Development
For Chairman, the Representative of the United Kingdom.
For Vice Chairman, the Representative of Chile.
For Reporting Delegate, the Representative of Belgium.

106

MONETARY AND FINANCIAL CONFERENCE

Suggested Nominations for Committees of Commission II
Committee No. 1—Purposes, Policies, and Capital of the Bank
Chairman: The Representative of the Netherlands
Reporter: The Representative of Costa Rica
(p. 7) Committee No. 2—Operations of the Bank
Chairman: The Representative of Cuba
Reporter: The Representative of Australia
Committee No. 3—Organization and Management
Chairman: The Representative of Colombia
Reporter: The Representative of the Union of South Africa
Committee No. 4—Form and Status of the Bank
Chairman: The Representative of India
Reporter: The Representative of Poland
Suggested Nominations for Commission III— Other Means
of International Financial Cooperation
For Chairman, the Representative of Mexico.
For Vice Chairman, the Representative of Egypt.
For Reporting Delegate, the Representative of New Zealand.
The Chairman moved at the conclusion of a short discussion
that the suggestions be approved as recommendations to the
plenary sessions, and this resolution was unanimously carried.
Mr. N a s h : Mr. President, may I suggest I move first that
this report be received and then move separately the various nom
inations for the respective bodies as set up by the Committee.
I therefore move that this report be received.
S ecretary M o r g e n t h a u : Gentlemen, you have heard the re
port of the Committee on Nominations which the Chairman has
moved to be received. Unless there is objection, the report will
be received. Do I hear any objections?
(None.)
(The report was received favorably.)
I recognize the Chairman of the Delegation of New Zealand,
Mr. Nash.
(Mr. Nash moved the election of the four Vice Presidents as
given in the report of the Committee on Nominations.)
S ecretary M o r g e n t h a u : I recognize the Chairman of the
Delegation of Luxembourg.
Mr. Le G a l l a i s : I second the motion presented by my distin
guished colleague, the Chairman of the Delegation of New Zealand.
(p . 8 )
S ecretary M o r g e n t h a u : You have heard the motion
made and seconded. Do I hear any objections?
(None.)

PROCEEDINGS AND DOCUMENTS

107

I hear no objections. All those in favor say “Aye”.
(Aye.)
S ecretary M o r g e n t h a u : O pposed?

(None.)
The “Ayes” have it.
(The four Vice Presidents were thereupon elected.)
I again recognize the Chairman of the Delegation of New
Zealand, Mr. Nash.
(Mr. Nash moved the election of the members of the Steering
Committee as given in the report of the Committee on Nomina
tions.)
S ecretary M o r g e n t h a u : I recognize the Chairman o f the
Delegation of Peru.
M r . B e l t r a n : I beg to second the motion of M r. Nash.
S ecretary M o r g e n t h a u : You have heard the motion made
and seconded. Do I hear any objections?
(None.)
I hear no objections. All those in favor please say “Aye”.
(Aye.)
S ecretary M o r g e n t h a u : Opposed?
(None.)
(The members of the Steering Committee were thereupon
elected.)
I
again recognize the Chairman of the Delegation of New
Zealand, Mr. Nash.
(Mr. Nash moved the election of the officers of Commission I
and of its relevant committees as given in the report of the
Committee on Nominations.)
S ecretary M o r g e n t h a u : I recognize the Chairman of the
Delegation of Honduras.
M r . Ca c e r e s : M r. Chairman, I have the honor to second the
motion introduced by the Honorable Delegate of New Zealand
proposing the acceptance of the nominations for officers of Com
mission 1. The ability of the officers (p. !)) proposed is so well
known that it is not necessary for me to stress their competence.
The subject to be studied, the creation of an international stabili
zation fund, is the backbone of this Conference. There is no doubt
that the officers proposed will make every effort to carry the
deliberations of Commission I to a successful conclusion.
S ecretary M o r g e n t h a u : You have heard the motion made
and seconded. Do I hear any objections?
(None.)

108

MONETARY AND FINANCIAL CONFERENCE

I hear no objections. All those in favor please say “Aye”.
(Aye.)
S ecretary M o r g e n t h a u : Opposed?
(None.)
The “Ayes” have it.
(The officers of Commission I and of its relevant committees
were thereupon elected.)
I recognize the Chairman of the Delegation of New Zealand,
Mr. Nash.
(Mr. Nash moved the election of the officers of Commission
II and of its relevant committees as given in the report of the
Committee on Nominations.)
S ecretary M o r g e n t h a u : I recognize the Chairman of the
Delegation of Iceland.
Mr. S ig u r d sso n : Mr. President, I hereby second the motion for
the election of the proposed Chairman, Vice Chairman, and Re
porting Delegate of Commission II, together with the officers of
its respective committees.
As everybody present knows, the problems to be dealt with at
the conclusion of this war are numerous. Last, but not least,
there are the commercial and financial problems which have grown
out of the war. The proposals for an erection of a Bank for
Reconstruction and Development of the United and Associated
Nations, which this Commission will handle, are among the
most important problems of this Conference and have been drafted
by the most able men. I hope this Commission will succeed in
reaching a final decision in these matters, so that the Bank may
be established, for commercial and financial benefit, at the con
clusion of the war.
S ecretary M o r g e n t h a u : You have heard the motion made
and seconded. Do I hear any objections?
(None.)
No objections. All those in favor please say “Aye”.
(p.10) (Aye.)
S ecretary M o r g e n t h a u : Contrary minded?
(None.)
(The officers of Commission II and of its relevant committees
were thereupon elected.)
I recognize the Chairman of the Delegation of New Zealand,
Mr. Nash.
(Mr. Nash moved the election of the officers of Commission III
as given in the report of the Committee on Nominations.)

PROCEEDINGS AND DOCUMENTS

109

S ecretary M o r g e n t h a u : I recognize the Chairman of the
Delegation of Peru.
M r . B e l t r a n : I beg to second the motion for the election of
the officers of Commission III.
S ecretary M o r g e n t h a u : Y ou have heard the motion made
and seconded. Do I hear any objections?
(None.)
I hear no objections. All those in favor please say “Aye”.
(Aye.)
S ecretary M o r g e n t h a u : Opposed?
(None.)
The “Ayes” have it.
(The officers of Commission III were thereupon elected.)
I recognize the Chairman of the Delegation of Peru.
M r . B e l t r a n : M r. President, fellow delegates to the Conference,
Tomorrow we will celebrate the national day of this country
to whose generous hospitality we all owe the opportunity of being
here together in this Conference to study those problems which
have worried the world in the past and the solution of which would
be of untold benefit to mankind.
On this occasion, on behalf of the Peruvian Delegation, I beg
leave to move the following resolution:
R esolved ,

“In celebration of the 168th anniversary of the Proclamation
of Independence of the United States of America, the United
Nations Monetary and Financial Conference sends its greetings
to the American nation (p. 11) in the person of its illustrious
President, Mr. Franklin D. Roosevelt, and expresses its admira
tion of the heroic efforts which their fighting services, together
with those of the other Allies, are making to achieve a quick
victory which will make possible a new era of world cooperation
for the good of all peoples.”
S ecretary M o r g e n t h a u : I recognize Senator Tobey, a Mem
ber of the United States Delegation, United States Senator from
the State of New Hampshire. Senator Tobey will now address
the meeting.
S e n a t o r T o b e y : Mr. President and fellow delegates of the
Conference, on behalf of the American Delegation and on behalf
of the President of the United States, I express our deep apprecia
tion to the Peruvian Delegation for its sincerely expressed resolu
tion.
One hundred and sixty-eight years ago in this country men
of various creeds and from varied walks of life met together

110

MONETARY AND FINANCIAL CONFERENCE

with a common objective to establish a free nation. Their high
purpose impelled them to cooperate, and there resulted a per
manent contribution to the welfare of generations then unborn.
Today men and women of different races and creeds are here
assembled together, determined to work out, by mutual coopera
tion, a plan for a permanent contribution for the benefit of the
people of the world.
It is our common aspiration, I believe, that, assembled here
among these eternal hills, we shall, under a deep conviction of the
needs of humanity, discard trivia and refuse to be turned away
from our great purpose to give to the people of the w7
orld new
hope and courage through the constructive results which we pray
may come from this historic Conference.
The specific task assigned to us is to formulate a practical plan
for the establishment of a world fund and for the stabilization
of exchange. This is our immediate and essential objective.
If we can be successful in achieving this end, we shall be paving
the way for the accomplishment of the even more vital objective
of a permanent world peace. For, by our successfully working
out the immediate problem of the present Conference, we shall
have proven to ourselves and to the world that international co
operation is possible.
Every great effort in human history has had its saboteurs, men
who utter critic peep and cynic bark. There are some of these
around the perimeter of this Conference. But, fellow members
of the Conference, wr dare not, we cannot fail in the high purpose
e
which brought us together, for today men are dying and homes
are saddened for the cause of world freedom. Their sacrifices
are a challenge to us here assembled and should stand out in our
consciousness as we strive together to work out a plan for
world cooperation.
(p. 12) The man in the foxhole has left all that he has loved
and cherished behind him. As he faces the shock of enemy fire
through long days and nights, he feels alone and apart from the
rest of the world. For him, life may be a matter of days, hours,
or minutes. He wonders what we who represent governments
are doing. Are we conscious of his agonies and sufferings? On
us is a grave responsibility. To us is given a high privilege. God,
the Father of all, give us understanding and a vision of the needs
of men today, of the fundamental truth that, whatever our na
tionality or creed, we are brothers under the skin.
As we confer together here today, amidst the eternal hills, in
spired by the sublime beauty around us, and as the shadows of

PROCEEDINGS AND DOCUMENTS

111

passing clouds above leave their impress for a moment on the
slopes of yonder mountains, may the contemplation of the tragic
sufferings and sacrifices of every nation bind us together in
brotherly love and in a spirit of consecration to the great oppor
tunity which is ours to displace doubt and cynicism with hope
and confidence.
Two thousand years ago Christ was hanged on a cross, a spear
thrust in his side, nails driven through his hands, a crown of
thorns pressed upon his brow, and a cup of vinegar placed to
his lips.
He died that men might be saved, and be, in truth, free.
There are nations represented here today who, too, have had
their sides pierced and a crown of thorns pressed upon them by
the sufferings of war. They fight wT and for us and we with
ith
and for them.
If cooperation can weld the United Nations together in solid
phalanx against our enemies in war, surely we shall join together
to achieve the vital objective of this Conference, meeting the
world’s needs for the rehabilitation of a war-torn world.
There came into the Senate last May a remarkable personality
—Madame Chiang Kai-shek, wife of the Generalissimo of China.
She made a ten-minute extemporaneous address. In closing, she
eloquently and truthfully said: “Gentlemen, it is fine to have ideals
and to give expression to them, but to make our ideals effective,
we must implement them.”
So may we, by constructive action here, implement our great
objective of world cooperation.
In the play “Valley Forge” by Maxwell Anderson, there appear
these lines: “There are some men who lift the level of the age
they inhabit, until all men stand on higher ground in that lifetime.”
(p. 13) Fellow members of the Conference, may that be said
in truth of us when we have concluded our labors. To that end
I call upon each of you to place your hand with mine upon the
lever of the spirit and aspirations that called this Conference
into being, and by our united cooperation to lift the level of our
age, that its blessings may be passed on to generations yet unborn.
Gentlemen, we must not, we cannot, we dare not fail. The hopes
and aspirations of the common people of each of our countries
rest in us.
S ecretary M o r g e n t h a u : You have heard the motion of the
Chairman of the Peruvian Delegation and the very fine address
of Senator Tobey. All those who are in sympathy with the motion

112

MONETARY AND FINANCIAL CONFERENCE

and the very fine thoughts expressed by Senator Tobey please
say “Aye.”
(The motion was adopted by acclamation, whereupon the meet
ing was adjourned.)

Document 69

Report of the Committee on Credentials
Jul y 2, 1944

The Committee appointed by the Temporary President of the
United Nations Monetary and Financial Conference to examine
the credentials of its participants met under the chairmanship of
the Honorable Eduardo I. Montoulieu, Chairman of the Delega
tion of Cuba, on July 2, 1944, at 9 p.m. The Committee consisted
of representatives of Cuba, Liberia, Netherlands, Norway, and
Union of South Africa. The credentials of the representatives of
the following governments or authorities were examined and
found to be in good order: Australia, Belgium, Bolivia, Brazil,
Canada, Chile, China, Colombia, Costa Rica, Cuba, Czecho
slovakia, Dominican Republic, Ecuador, Egypt, El Salvador, Ethi
opia, French Delegation, Greece, Guatemala, Haiti, Honduras,
Iceland, India, Iran, Iraq, Liberia, Luxembourg, Mexico, Nether
lands, New Zealand, Nicaragua, Norway, Panama, Paraguay,
Peru, Philippine Commonwealth, Poland, Union of South Africa,
Union of Soviet Socialist Republics, United Kingdom, United
States, Uruguay, Venezuela, and Yugoslavia. The Committee
therefore recommends the approval of these credentials and the
accordance of full right of participation in the Conference.
The Committee on Credentials also had occasion to read a letter
dated June 2, 1944, from the Honorable Cordell Hull, Secretary
of State of the United States, to the Honorable Henrik de Kauffmann, Minister of Denmark, inviting him to attend in his personal
capacity the inaugural plenary meeting of the Conference. It
also had before it the reply of the Danish Minister dated June 3,
1944, accepting this invitation and stating that he would be ac
companied to Bretton Woods by an adviser. Inasmuch as no ques
tion of credentials was raised by these letters, the Committee
agreed to refer their subject matter to the Conference and would
be pleased if an invitation could be extended to the Danish Min
ister to attend further meetings of this Conference, without the
privilege of a vote.

PROCEEDINGS AND DOCUMENTS

113

The Committee on Credentials also had occasion to read letters
dated June 12, 1944 from the Honorable Dean Acheson, Assistant
Secretary of State of the United States, to the appropriate officials
of the following international organizations inviting each of these
organizations to send an observer to the Conference: The Inter
national Labor Office, the United Nations Relief and Rehabilita
tion Administration, the Economic Section of the League of Na
tions, and the United Nations Interim Commission on Food and
Agriculture, in response to which each of these organizations
had indicated its desire to send observers pursuant to such in
vitation. Inasmuch as no question of credentials was raised by
this matter, the Committee merely reports it to the Conference
with a request that the observers be invited to attend the sessions
of the Conference, without the privilege of a vote.
Eduardo I. Montoulieu,
Chairman
Edward G. Miller, Jr.
Secretary

Document 101

(p . 1 4 )

J OURNAL
UNITED

NATIONS

N o. 5

MONETARY

AND

FINANCIAL

CONFERENCE

Bretton W o cd s, Nr?w Ham pshire

ORDER

THE

July 5, 1944

DAY

Meetings for Wednesday. July 5
10:30 a.m.
4 p.m.
4 p.m.
5:30 p.m.
5:30 p.m.

Commission I ............................................................Auditorium
Committee 1 of Commission I.................................. Auditorium
Committee 3 of Commission I ................................The Hemicycle
Committee 2 of Commission I ................................Auditorium
Committee 4 of Commission I ................................The Hemicycle

(P . 1 5 )

R e s u m e s of C o m m it t e e M e e t in g s

Committee 1 of Commission I
Purposes. P o licies, anti Q uotas o f th e F uih ?
(July 4. 10 a.m.)

Committee 1 of Commission I held its first meeting at 10 a.m.

114

MONETARY AMI) FINANCIAL CONFERENCE

on July 4 with Dr. Tsiang (China) in the Chair. The Committee
agreed to postpone temporarily discussion of quotas and consid
ered article 1 of the Proliminary Draft on purposes and policies
of the Fund. Considerable discussion took place over section 2,
Alternative C, which includes as a purpose “to assist in the
fuller utilisation of the resources of economically underdeveloped
countries”. The sponsors of this alternative explained that this
purpose was implicit in the Joint Statement but should be ex
plicitly stated. Other members believed that it was an expansion
of the purpose and was more appropriate for the Bank.
(The minutes of this meeting are being distributed separately
as document #102.)
(July 4, 4 p.m.)

The second meeting of Committee 1, Commission I was de
voted to a discussion of alternatives to sections 2-6 of article I,
which deals with purposes and policies. The wording of Alterna
tive A to section 5 was accepted. Alternatives A and B for sec
tions 2 and 3 were referred to a drafting committee. Alternative
D to section 4, which deals with exchange stability, was withdrawn
by the member proposing it after discussion of Alternatives B and
E. The Committee decided to refer the matter to the drafting
committee with the understanding that it would make its report
after the provisions regarding changes in par values had been
agreed upon. The Committee agreed to postpone consideration of
Alternative F, dealing with the correlation of the activities of the
Fund with those of other international financial agencies, until
the general relations of the Fund with other international organi
zations had been considered. The sponsors of Alternative G, which
deals with abnormal indebtedness arising out of war, emphasized
the importance of this question to the countries concerned. The
suggestion was made that the matter be referred by Commission
I to Commission III.
(The minutes of this meeting are being distributed separately
as document #111.)
(P. 16)
Committee 2 of Commission I
Operations of the Fund
(July 4, 11:30 a.m.)

The first meeting of Committee 2 of Commission I was held
on July 4 at 11:30 a.m. The Chairman of Committee 2, N. A.
Maletin (U.S.S.R.), was introduced by Mr. White (U.S.A.),
Chairman of Commission I. The Chairman was authorized by the

PROCEEDINGS A i I ) DOCUMENTS
\

115

Committee to appoint a Vice Chairman, \V. A. Mackintosh (Cana
da), to assist him in presiding over the meetings of the Com
mittee. The Committee then discussed the Alternatives suggested
to article III, sections 1 and 2 of the Joint Statement, as pre
sented on pages 5 and G oi‘ Document F -i. These sections deal
with the agencies through which dealings between the members
and the Fund shall take place and the conditions under which
a member country is entitled to buy another member’s currency
from the Fund.
(The minutes of this meeting are being distributed separately
as document it 104.)
(July 4, 5:30 p.m.)

The second meeting of Committee 2 of Commission I was
held on July 4 at 5:80 p.m. The Chairman was authorized to ap
point a small committee to consider questions of language. The
Committee proceeded with a discussion of article III, sections 2,
3, and 4. These sections deal with the conditions under which
a member country is entitled to buy another member’s currency
from the Fund, the limitation on the operations of the Fund,
and the power of the Fund to borrow a member’s currency or to
offer gold to a member country in exchange for its currency.
(The minutes of this meeting are being distributed separately
as document #112.)
Committee 3 of Commission I
O rg anizatio n and M anagem ent of th e F und
(July 4, 10 ct.})i.)

The first meeting of Committee 3 of Commission I was held on
July 4 at 10 a.m. with Dr. de Souza Costa (Brazil) as Chairman.
The Committee considered article VII, section 1. Consideration
was given to Alternatives A and B to VII-1 (c ), and the Committee
approved the inclusion of Alternative B in the draft with the
exception of the last sentence, which was deleted by general
consent.
(The minutes of this meeting are being distributed separately
as document #103.)
(P .17)
( July 4, 4

The Committee on Management accepted the provisions of
VII-1 (d) with the understanding that they were supplementary
to VII-1 (c). VII-1 (e) was accepted without discussion. The Com

116

MONETARY AND FINANCIAL CONFERENCE

mittee gave extended consideration to Alternatives A and B of
VII-2. Questions were raised about the proper functions of the
managing director or chairman of the executive directorate. The
question of frequency of meetings of the directorate and the allo
cation of functions between the various boards of the Fund’s
management were discussed. No action was taken and the entire
question remains open for further consideration.
(The minutes of this meeting are being distributed separately
as document #113.)
Committee 4 of Commission I
Form and Status of the Fund
( July 4, 11:30 a.m.)

The first meeting of Committee 4 of Commission I was held
on July 4 at 11:30 a.m. The Chairman of Commission I, Mr.
White (U.S.A.), introduced the Chairman of the Committee,
Mr. Llosa of Peru. The scope of the work of the Committee was
discussed.
(The minutes of this meeting are being distributed separately
as document #105.)
(p. 18)
L ist o f D o c u m e n t s I ssu e d as o f
July 4, 1944
Subject

Symbol No.

Journal No. 1 ........................................................................................... J.'l
Agenda .....................................................................................................A/1
Inaugural Plenary S e ssio n ................................................................... GD/1
Press Release No. 1 ............................................................................... PR/1
Press Release No. 2 ...............................................................................PR/2
Inaugural Plenary Session (Correction of GD/1) ...................... ....GD/2
Press Release No. 3 .......................................... ....................................PR/3
Regulations for UNMFC, D r a f t .................................................... ....C/RR/1
Address by Czechoslovakian Delegate—Press Release No. 4 . . . PR/4
Address by Chinese Delegate—Press Release No. 5 .................... ....PR/5
Address by Mexican Delegate—Press Release No. G .................. ....PR /6
Address by Brazilian Delegate—Press Release No. 7 ................ .... PR /7
Address by Canadian Delegate—Press Release No. 8 ................ ....PR/8
Rules and Regulations Committee, Notice of Meeting, July 1,
1944, 9 p.m............................................................................................C/RR/2
Nominating Committee, Notice of Meeting, July 3, 1944, 10 p.m. C /N /l
Credentials Committee, Notice of Meeting, July 1, 1944, 9 p.m. C'C R/1
Address by Russian Delegate—Press Release No. 9 .................. .... PR, 9
Rules and Regulations Committee, Notice of Meeting. July 1,
1944, 9 p.m. (Correction of C /R R /2) ........................................ ....C/RR/3
Order of the Day, July 2, 1944 ........................................................ ....SN 2
Journal No. 2 .........................................................................................J/2

PROCEEDINGS AMD DOCUMENTS
Subject

117
Symbol No.

Press Release No. 1 0 ........................................................................ ....P R /10
Regulations for UNMFC (Revision of C, RR/1) (Final D raft) C/RR/4
Nominating Committee, Report of Meeting, July 1, 1944, 10 p.m. C /N '2
Press Release No. 11 ........................................................................ ....PR 11
Order of the Day, July 3, 1 0 4 4 ........................................................ ....GD. (5
Inaugural Plenary S e ssio n .............................................................. ....GD/7
Journal No. 3 ...................................................................................... ....J/3
Press Release No. 12 ........................................................................ ....PR 12
Special Note on Hotel Registration and Conference D irectory.. GI)/9
Opening Remarks of Lord Keynes at the F irst Meeting of the
Second Commission........................................................................ ....FD/2
Press Release. No. 13 ........................................................................ ... PR/13
Press Release No. 1 4 ........................................................................ ... PR/14
Representation of Delegations on Commissions and Committees,
Memorandum from Secretariat io Chairmen of D elegations.. SN/7
Commission I—Committee Assignments ...................................... ... CI/1
Rules and Regulations Committee, R e p o rt.................................... ... C/RR/5
Rules and Regulations Committee, Minutes of M eetin g .............. ... C/RR/6
Journal No. 4 ...................................................................................... ... J, 4
Proposal by Mexican D eleg atio n .................................................... ...DP/1
Order of the Day, July 4, 1 9 4 4 ........................................................ ... GD/1.1
Commission I, Minutes of Meeting, July 3, 2 p.m......................... ... CI/M /1
Remarks by Mr. H arry D. W h ite .................................................. ...CI/R/1
Commission II, Minutes of Meeting, July 3, 3:30 p.m................. ... CII/M /1
Commission III, Minutes of Meeting, July 3, 5 p.m..................... ...CIII/M /1
Second Plenary Session (July 3. 10 a.m.), M in u te s.................... ...GD/12
Press Release No. 1 5 ........................................................................ ...PR/15
Credentials Committee, Report ...................................................... ...C/C.R/2

Document 102
C l/ l/ M l

Minutes of Meeting of Commission I, Committee 1
P u r p o s e s , P o l ic ie s , a n d Q uotas o f t h e F u n d
(July 4, 10 ajiir)

The Chairman of Commission I, Mr. White (U.S.A.), intro
duced the Permanent Chairman of Committee 1, Dr. Tsiang
(China). Dr. Tsiang introduced the Reporter, Mr. Varvaressos
(Greece), and the Secretaries, Mr. Brown and Mr. Young.
Dr. Tsiang said that the procedure would be that whenever
there were several alternatives to be considered, those involving
substantial changes would be considered first.
It was agreed to postpone temporarily the discussion of quotas
until a paper on this subject had been distributed.

MONETARY AND FINANCIAL CONFERENCE

The discussion then turned to article I. section 1. Alternative A,
section 1, was rejected by the Committee.
It was moved that in order to expedite matters, a drafting
committee be appointed and that sections involving no substantial
change be referred to such committee by the Chair with the ap
proval in each case of the full Committee. This motion was carried.
The Chair then brought up section 2, Alternative C, in which
appear the following words: “to assist in the fuller utilisation of
the resources of economically underdeveloped countries”. Consid
erable discussion took place as to whether this purpose was an
appropriate one for the Fund or whether it did not belong in the
purposes of the Bank.
The purpose of the alternative was explained to the Com
mittee as making explicit an objective which was implicit in the
references in the Joint Statement to the expansion of trade. The
wording of the provision of the Joint Statement which speaks
of the maintenance of high levels of employment and real income
was thought by the proposers of Alternative C to stress unduly the
position of highly industrialized countries. In discussion there
developed a consensus that the attainment and promotion of high
levels of real income and employment, as well as their mainte
nance, once attained, was intended to be included among the
purposes and that the addition of the appropriate words to that
effect would be desirable. The main discussion of the amendment
turned on the question of whether as worded it did not broaden
the purposes of the Fund to include objectives which were appro
priately those of the Bank. A number of suggestions for alterna
tive language were suggested in the course of discussion.
The Chairman, at the conclusion of the discussion, referred
Alternative C to the drafting committee upon the understanding
that the intent of the amendment was not to enlarge the meaning
of the purposes as they are stated in the Joint Statement but
merely to make the stated purposes more explicit.

Document 103
C I/ 3 / M 1

Minutes of Meeting of Commission I, Committee 3
O r g a n iz a t io n a n d M a n a g e m e n t o f t h e F u n d
(July 4, 10 a.m.)

The Committee was organized with the introduction of the

PROCEEDINGS AND DOCUMENTS

119

Chairman, Dr. de Souza Costa (Brazil), the Reporter, Dr. Hexner
(Czechoslovakia), and the Secretaries, Messrs. Bryan and Bittermann.
The text of VII-1 (a) (Alternative A) was accepted by the
Committee with the suggestion that the words “all powers” be sub
stituted for the word “administration” since the latter word has
too restricted a meaning in Spanish.
The Committee next considered VII-1 (b). After an exchange
of views about the delegation of powers, the text of Alternative
A met with general approval.
Alternatives A and B of VII-1 (c) were discussed. The view was
expressed that Alternative A did not give adequate opportunity
to the small countries to protect their interests by asking for
special meetings of the Board of Governors. After full considera
tion, the Committee generally agreed to the incorporation into
the draft of Alternative B with the exception of the last sentence.
As agreed, VII-1 (c) therefore would provide that special meet
ings of the Board of Governors could be called on the initiative
of five countries or of countries having 25 percent of the quotas.

Document 104
C l/2 /M l

Minutes of Meeting of Commission I. Committee 2
O

p e r a t io n

o f

t h e

u n d

(July 4, 1944, 11:30 a.m.)

The first meeting of Committee 2 of Commission I was called
to order by Harry D. White (U.S.A.), wT introduced the Chair
ho
man of Committee 2, N. A. Maletin (U.S.S.R.). The Chairman
of the Committee introduced the Reporter, Robert Mosse (French
Delegation), the Secretary, Karl Bopp, and the Assistant Secre
tary, Miss Alice Bourneuf. (The Secretaries will be available in
room 158 for assistance to the members of the Committee.)
The Chairman asked permission of the Committee to appoint
a Vice Chairman to assist him in presiding over the Committee.
This request was granted, and the Chairman appointed W. A.
Mackintosh (Canada) as Vice Chairman, who presided during the
remainder of the meeting.
The Vice Chairman indicated that the Committee would begin
with a discussion of matters relating to article III of the Joint
Statement beginning on page 5 of Document F-l.
749013—48—9

120

MONETARY AND FINANCIAL CONFERENCE

On article III-l, Alternative A was reserved for later discussion.
On article III-2, paragraph (1> of Alternative A was passed over
without discussion and paragraph (2) was reserved for later
discussion.
There was considerable discussion on III-2 (3) with respect to
Alternatives A, B, and D. Some delegates felt that Alternative B
would be most likely to meet the needs of those countries that have
wide variations in their balance of payments positions. Others
felt that the waiver provision in Alternative A would permit ade
quate flexibility to handle the needs of such countries and would
also more adequately protect the Fund. Those who supported Al
ternative B held that the waiver provision was inadequate in view
of the fact that the member countries would have no assurance
that the waiver would be granted.
There was discussion also as to the relative merits of the “carry
over” provision suggested in Alternative D and section 2 (3) of
Alternative A. Those who favored Alternative D felt that Alterna
tive A might induce member countries to resort to the Fund when
it was not necessary, while Alternative D would assure countries
of more ample assistance from the Fund in times of need. Those
who favored section 2 (3) of Alternative A felt that the Fund must
have assurance that it will always be able to provide resources
when needed and that if Alternative D were adopted it might be
impossible to avoid continuous exercise of discretion by the Fund
over the sale of exchange.

Document 105
C I/ 4 / M 1

Minutes of Meeting of Commission I. Committee 4
F o r m a n d St a t u s o f t h e F u n d
(July 4, 1944, 11:30 a.m.)

The first meeting of Commission I, Committee 4 was held on
July 4 at 11:30 a.m. The Chairman of Commission I, Mr. White
(USA), introduced the Chairman of the Committee, Mr. Llosa
(Peru), who in turn introduced the Committee Reporter, Mr.
Keilhau (Norway) and the Secretaries of the Committee, Mr.
Fuqua and Colonel Dyson. (The Secretaries will be available in
room 162 for assistance to members of the Committee.)
After expressing appreciation on behalf of his country, the

PROCEEDINGS AND DOCUMENTS

121

Chairman explained that a document indicating the parts of the
preliminary draft of the agreement within the scope of the Com
mittee had just been distributed and suggested that it would be
advisable to delay discussion until the next meeting. He also sug
gested that the next meeting be held the following morning. There
was no objection to these suggestions.
The Chairman stated that it appeared that the following sections
of the preliminary draft fall within the scope of the Committee’s
activities: Article IX, sections 5, 6, and 7; article X I; article XII,
sections 1, 2, and 3; article XIII, sections 1, 2, 3, and 4; and
article XIV.

Document 107
(p .

6d)

S A /i/i

A l t e r n a t iv e E 1
(Add as an additional section after Joint Statement III, 2)

Apart from the facilities provided under Art. Ill Section 2 of
the Joint Statement, a silver-hoarding member country shall
be entitled to buy from the Fund another member’s currency in
exchange for its own currency, in an amount not exceeding 80
percent of the gold value of that country's silver hoardings, which
will be assigned to the Fund as collateral guaranty.
7 /4 /4 4

J.S. Art. Ill
A d dition al Section

Document 108

(p. 18a)

s a / i /2

l t e r n a t iv e

A uniform change in the gold value of member currencies may
be made provided that a majority of countries, voting as countries,
so decide, including in that majority those countries having 10
percent or more of the aggregate quotas.
7 /4 /4 4

J.S. Art. IV

Sec. 5

! For Prelim inary D raft of Suggested Articles of Agreement for the Estab
lishment of an International M onetary Fund, to which this and following
SA/1 alternative texts refer, see Doc. 32, p. 21.—Editor.

122

MONETARY AND FINANCIAL CONFERENCE
Document 109

(p .

Id)

S A / 1/3

A l t e r n a t iv e H
(Add as a new Subdivision)

To promote the multilateral settlement of foreign credit bal
ances accumulated during the war.
7 /4 /4 4

J.S. Art. I

Document 110

(P. l i b )

S A /l/4

A l t e r n a t iv e

(Substitute for Joint Statem ent III, 7 ( b ) )

If, at the end of the Fund's financial year, a member’s holding
of gold and gold convertible exchange exceeds its quota, the Fund
shall require that half of the net increase of its holdings in that
member’s currency during that year shall be repurchased by that
membvjr with gold or gold convertible exchange, but only if and
inasmuch as the Fund's holdings at that moment exceed the mem
ber's quota.
7 /4 /4 4

J.S. Art. Ill
Sec. 7

Document 111
C I/1 /M 2

Minutes of Meeting of Commission I, Committee 1
P u rp o s e s , P o lic ie s , a n d Q u o ta s o f t h e F u n d
Jul y 4, 1944, 4 p.m.

The second meeting of the Committee was devoted to a discus
sion of the various alternatives proposed for sections 2-6 of article
1 of the preliminary Draft Articles of Agreement, and to additional
alternatives suggested in the course of the discussion.
The warding of Alternative A, section 5, was agreed to by the
Committee.

PROCEEDINGS AND DOCUMENTS

123

Alternatives A and B for sections 2 and 3 were referred to the
drafting committee after brief discussion.
The various alternatives to section 4 were discussed at length
and the purposes of the sponsors of Alternatives B and E on this
section were developed. In this discussion Alternative D was with
drawn by the member proposing it.
In view of the fundamental importance of the wording of the
section dealing with exchange stability (section 4), the Committee
agreed not to express a choice between these alternatives by a
vote. It further agreed that the wording of this section of article I
should be in harmony with the balance of the document and
especially with the sections dealing with changes in par values.
The alternatives on section 4, article I were therefore referred
to the drafting committee on the understanding that it would
take into account the various views expressed but would not make
its report until a later stage when the provisions of the plan re
garding par values were agreed upon.
The Committee then considered the additional subdivision pro
posed for correlation of the activities of the Fund with those of
the Bank (Alternative F). It was stated that a proposal would
be brought forward in another part of the plan dealing with the
general relations of the Fund with other international organiza
tions. The proposer of Alternative F agreed to postpone consid
eration of that alternative until the new provisions were made
available and agreed upon.
The Committee then considered Alternative G which would
include among the purposes of the Fund “to promote and facili
tate settlement of abnormal indebtedness arising out of war”.
The sponsors of this proposal noted that some provision for dealing
with these balances had been included in an earlier version of the
plan but had been omitted in subsequent drafts. They stressed
the vital importance of the problem for the countries directly
concerned, and indicated that it was difficult to justify the com
plete exclusion of the subject from any scheme of post-war inter
national monetary cooperation.
The dangers and difficulties of burdening the Fund from the
outset with the immense problem of settlement of balances accumu
lated in war time was brought out in the discussion. The sug
gestion was made that the Committee might refer the matter
to Commission I with the suggestion that it might be referred
by that Commission to Commission III, which deals with “Other
Means of International Financial Cooperation” outside the Fund.
The view was also expressed that the matter should be dealt with

124

MONETARY AND FINANCIAL CONFERENCE

by negotiations between debtor and creditors and not by this
Conference.
(p. 2) The Chairman announced at the close of the meeting
that the drafting committee of Committee 1 would be made up of
delegates from Australia, Brazil, Czechoslovakia, the United
Kingdom, and the United States, and that the Reporting Member
and the Secretary should have the right to be present at its meet
ings. He further stated that if any proposal referred to the draft
ing committee was of especial interest to any delegation, that
delegation should be represented when the proposal was being
discussed.

Document 112
C I/2 /M 2

Minutes of Meeting of Commission I, Committee 2
O p e ra tio n s o f t h e F u n d
(J u l y 4, 1944, 5:30 p.m.)

The second meeting of Committee 2 of Commission I was held
on July 4 at 5:30 p.m. The Chairman announced that the Chair
men of all the delegations had agreed that there would be no
formal voting in the Committees. It was agreed that questions
of wording and language would be referred to a small committee
to be appointed by the Chairman, and that in the case of lack of
agreement on important questions the lack of agreement would be
reported to the Commission.
The Committee continued its discussion of article III, Trans
actions With the Fund.
In answer to a question by one of the delegates, it was ex
plained that the wording of section 2 (1) of Alternative A (page
6a of SA/1) is intended to indicate that the representation of a
member country will be accepted bv the Fund except in cases of
obviously false representation.
Section 2 (4) of Alternative A (page 6a) was approved by
the Committee and also the remaining sentences of section 2
(page 6a).
The Committee approved section 2a of Alternative A (pages
6a and 6b), but it was suggested that this clause should be in
serted in another part of the draft.
Section 3 of Alternative A (page 6b) was approved by the

PROCEEDINGS AND DOCUMENTS

125

Committee. It was suggested that the words “and policies” be
deleted from the second line of section 3.
The Committee accepted the withdrawal of Alternative C (page
6c).
The Committee approved Alternative A (page 7).
There was some discussion of Alternative A (page 8). It was
pointed out that the language of Alternative A (1) was not clear,
and the Committee agreed to refer this paragraph to the small
committee to be appointed by the Chairman. The Committee dis
cussed very briefly paragraph (2) of Alternative A (page 8)
and also Alternative B (page 8). It was decided to continue the
discussion of these provisions at the next meeting of the Com
mittee.

Document

113
C l / 3 / M2

Minutes of Meeting of Commission I, Committee 3
O rg a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(July 4, 1944, 4 p.m.)

At its second meeting, held on July 4 at 4 p.m., the Committee
continued discussion of article VII, Management of the Fund.
It was agreed that the provisions of VII-1 (d) are supplemen
tary to VII-1 (c), and, on this understanding, the provision was
accepted. The meeting agreed to VII-1 (e) without discussion.
Consideration was then given to VII-2 (a). Some members
favored postponement of the discussion of this section until the
quotas shall have been determined. Others suggested that the
principles of the quotas were known so that discussion of this
section could profitably be undertaken at once. Proposals were
made to increase the Board of Governors from 12 to 15 and to
refer the matter to a proper subcommittee. No action was taken
on these proposals. Discussion of Alternatives A and B followed.
It was stated that Alternative A proposed to vest the powers of
the Fund on most matters except those specially reserved to a
small body which could be in continuous session and so could
transact business expeditiously as is required under other clauses
of the draft. The voting method permitted the formation of
groups for the election of members and so made possible repre
sentation on a geographical basis or on the basis of similarity
of .economic interests irrespective of areas. The proposal was con

126

MONETARY AND FINANCIAL CONFERENCE

sistent with VII-2 of the Joint Statement, which provided that
voting in the Board of Governors and in the Executive Directorate
was to be roughly proportional to the quotas.
On the other hand, in the opinion of some of the delegates pres
ent, the importance of voting might be overemphasized, since the
principal function of the Fund wT
ould be consultative. For this
purpose, periodic meetings would be sufficient, whereas continuous
meeting might result in excessive activity on the part of the
management of the Fund. In opposition to this view, it was stated
that agreement and unanimity would be desirable but might not
always be possible. The consultative function of the Fund was not
to be minimized but, in the absence of complete agreement, voting
might be necessary. It was also suggested that a monthly meeting
of the Directors would not be adequate unless in practice many
of the functions of the Executive Directorate were delegated to
the managers.
In the argument in favor of Alternative B, it was suggested
that the routine powers of the Executive Directors would in many
cases be delegated to a permanent official, who need not be a mem
ber of the Board and so might be selected for reasons other than
the considerations involved in selection by governments direct.
Furthermore, the Chairman could call meetings of the Directors
in advance of crises which could be anticipated. In general, the
argument emphasized the consultative functions of the Executive
Directors rather than their direct administrative responsibility.
There was no consensus of views on this question at the meeting
and discussion will be continued.

Document 116
D P /2

Mexican Delegation

Proposal on Silver
in order to attain a large measure of international
monetary cooperation, the Monetary Fund must take into
account the monetary habits, needs and practices of all the
member countries;
W h e r e a s there are countries among the United and Associated
Nations wr
hich, besides keeping a gold reserve sufficient to
guarantee the convertibility of their currencies, are compelled
to invest heavily in silver stocks in order to provide their re
W hereas

PROCEEDINGS AND DOCUMENTS

127

spective populations with costly silver coins, thereby meeting
traditional unavoidable hoarding requirements;
W h e r e a s these hoardings actually constitute an additional and
burdensome monetary reserve which operates in the same
manner as gold and foreign exchange reserves for regulating
the value of those countries’ respective currencies in terms
of other currencies;
W h e r e a s th e r e a re d efin ite in te r n a tio n a l m o n e ta r y con seq u en ces
fr o m th e in c r e a se o f silv e r sto ck s o f th o se co u n tr ies in th e
a sc e n d in g p h a se o f th e tra d e cycle, and th e ir d ecrease d u rin g
p erio d s o f d e p r e ssio n ;
W h e r e a s it is o b v io u sly u n fa ir th a t c o u n tries w ith le sse r econom ic
str e n g th , a s a re a ll o f th e silv e r -h o a r d in g co u n tries, be fo rced
to b ea r an e x c e ssiv e m o n e ta r y b urd en , in ord er to com ply
fu lly w ith th e o b lig a tio n s d eriv ed fr o m th e ir p a rticip a tio n
in th e F u n d ;
W h e r e a s in ord er to se ttle th e ir u n fa v o r a b le b alan ces, silv e rh o a r d in g c o u n tr ie s fr o m tim e to tim e are com p elled to sell
p a r t o f th e ir silv e r sto ck s in th e w o rld m a rk ets, th ereb y
fo r c in g silv e r p r ic e s dow n to th e ir o w n d etrim en t and th a t o f
th e o th er silv e r -h o a r d in g c o u n tr ie s;
(p. 2 )
T h e M e x ic a n D eleg a tio n submits to this Monetary

Conference that the following provision be added to Art. Ill of
the final Draft Agreement relative to the Fund:
Apart from the facilities provided under Art. Ill Section 2
of the Joint Statement, a silver-hoarding member country, shall
be entitled to buy from the Fund another member’s currency
in exchange for its own currency, in an amount not exceeding
80'! of the gold value of that country’s silver hoardings, which
will be assigned to the Fund as collateral guaranty.

Document 117
DP/3

Memorandum
Submitted by the Egyptian Delegation
Requesting Certain Additions to Joint
Statement I “Purposes and Policies of the Fund”
As a country owning large foreign exchange assets, Egypt is
naturally concerned how best to achieve the ready transference
of those assets into goods and services.

MONETARY AND FINANCIAL CONFERENCE

128

This legitimate expectation was reflected in a resolution unani
mously passed by the Middle East Financial Conference held in
Cairo last April which read as follows:—
“The conference shares in the hope that it will become possible
for foreign credit to be readily transferable into goods from any
source.”
What is important from the standpoint of countries which have
accumulated large foreign assets, is that such countries should
be able to liquidate those assets fairly readily after the War at
something like their present value.
The Egyptian Delegation therefore proposes to move the in
clusion under “purposes and policies of the Fund” of a clause to
the following effect:—
“To promote the multilateral settlement of foreign credit bal
ances accumulated during the War.”

Document 118
D P /4

Mexican Delegation

Proposal on Voting a Uniform Change in the Gold Value
of Member Currencies.
a uniform change in the gold value of member cur
rencies is one of the most important and far-reaching de
cisions that the Fund will be authorized to take under the
proposed provisions;

W hereas

W h e r e a s A r t. IV -5 o f th e d r a ft s ta te s th a t su ch a d ecisio n can
be ta k en b y a m a jo r ity o f qu ota v o tes, p rovid ed e v e r y m em b er
co u n tr y h a v in g 10 c r or m ore o f th e a g g r e g a te q u o ta s a p
/
p ro v es ;
WHEREAS a m a jo r ity o f quota v o te s m ay be c o n stitu te d b y a v er y
sm all n um b er o f m em b er co u n tries, an d th e r e fo r e th e w ill
o f th e la r g e s t num ber o f c o u n tries m ig h t not ev en be in d i
ca ted in th a t m a jo r ity ;
W h e r e a s su ch proced u re is in eq u ita b le and u n w a r ra n te d and con
stitu te s one o f th e p r o v isio n s o f th e d r a ft w h ich is m ost
vu ln era b le to pu b lic c r itic ism , w h en th e final d o cu m en t is
su b m itted for r a tifica tio n b y th e d iffe r e n t m em b er co u n trie s,
T h e M e x ic a n D e leg a tio n su b m its to th e co n sid er a tio n o f th is

Monetary Conference the following amended draft of Art. IV-5:
A u n ifo r m ch a n g e in th e g o ld v a lu e o f m em b er c u rr en c ies m ay

PROCKKDliNGS AND DOCUMENTS

129

be made provided that a majority of countries, voting as coun
tries, so decide, including in that majority those countries having
10% or more of the aggregate quotas.

Document 120

(P .

41)

S A /l/5

J o i n t S t a t e m e n t —No

Provisions

The following material has been suggested as an addition to
Article IX :
M lrrnativo A

& Section 5. Immunities of the Fund.
(a) The Fund shall be immune from suit except when it
consents to be sued.
(b) The Fund and its assets of whatsoever nature shall,
wheresoever located and by whomsoever held, be exempt and
immune from search, seizure, attachment, execution, requisition,
confiscation, moratorium and expropriation, whether under ju
dicial process or otherwise, in the territory of any member.
(c) All governors, executive directors, officers and employees
of the Fund shall, with respect to their official acts, be exempt
from suit except when the Fund consents.
(d) The archives of the Fund shall be inviolable.
There are certain other minor privileges or immunities which will a l s o
be required such as courier facilities. A further document will be issued
completing this section in this respect.

N ote.

7/ 5/44

J.S. Art. IX
Additional Sec. (5)

Document 121

(p. 43)

S A /1/6

J o i n t S t a t e m e n t — N o P rovision s

The following material has been suggested as an addition to
Article IX:
Alternative A

#■ Section 7.

Restrictions on Taxation of Fund, its Employees
and Obligations.
(a)
The Fund shall be exempt and immune from all taxation
or liability for the collection or payment of any tax, including

130

MONETARY AND FINANCIAL CONFERENCE

without limitation by reason of this enumeration, excises, du
ties, and imposts, imposed by any member or any political sub
division or taxing authority thereof, in respect of its assets,
property, income, activities, operations and transactions of
whatsoever nature.
(b) No member, or any political subdivision or taxing author
ity thereof shall impose or collect any tax on or measured by
salaries paid by the Fund to its Executive Directors, officials
and employees who are not citizens of such member.
(c) No member, or any political subdivision or taxing author
ity thereof, shall impose or collect any taxation on any obliga
tion or security issued by the Fund or any dividend or interest
thereon, by whomsoever held or received, which discriminates
against such obligation, dividend, or interest, because of its
origin, or which is applicable with respect to such obligation,
security, dividend, or interest solely because of the place or
currency in which it is issued, made payable or paid, or solely
because of the location of any office or place of business main
tained by the Fund.
7 /5 /4 4

J.S. Art. IX
A d d itio n a l Sec. (7)

Document 122
C I/ 1 / D C 1

Report of the Drafting Committee of Committee 1 of
Commission I on Matters Referred to It at the
Meeting of Committee 1 on July 4
The Drafting Subcommittee met on July 5 to consider the mat
ters referred to it by the Full Committee.
The following members were present: Mr. Goldenweiser Chair
man, Dr. Tsiang, Dr. Gudin, Mr. Mladek, Mr. Melville, Professor
Robbins and Mr. Varvaressos.
The Committee considered Alternatives A, B and C relating
to Section 2 of Article I in the Preliminary Draft Articles of
Agreement (Document F -l) and also considered alternative lan
guage submitted by the Colombian, New Zealand, and French
delegations bearing on this Section. The drafting committee rec
ommends for the consideration of the full committee the follow
ing language:
Article I, Section 2
“To facilitate the expansion and balanced growth of inter-

PROCEEDINGS AND DOCUMENTS

131

national trade and to contribute thereby to the promotion
and maintenance of high levels of employment and to the
development of the sources of productive power in all mem
ber countries as primary objectives of economic policy.”
In recommending this new formulation the drafting committee
wishes to report that the representatives of the Indian delegation
who were present during the discussion expressed themselves as
regarding the language as an improvement from their point of
Aev? but as not completely meeting their wishes on the point.
The representative of the Australian delegation also agreed that
the new language was an improvement but stated that its suita
bility from the point of view of his delegation was partly de
pendent upon the language to be adopted under Article III, para
graphs 2, sections (a) and (d) of the Joint Statement, which deal
with the conditions under which a member is entitled to buy
another member’s currency from the Fund in exchange for its
cwn currency.
The drafting committee therefore recommends that if the new
wording it suggests is adopted by the Committee, the attention
of Committee 2 shall be drawn to the position of the Australian
delegation on this matter.
The drafting committee wishes also to report that the sug
gestion was made in its discussions that many of the difficulties
encountered in the drafting of the language of Article I, Section 2
might be overcome if there were a suitable general preamble to
the final document of the Conference, in which the basic economic
objectives of all its work, both Fund and Bank, are clearly stated.
(p. 2) Tho drafting committee recommends the following lan
guage for Article I, Section 3:
“To give confidence to member countries by making the
Fund’s resources available to them under adequate safe
guards, thus providing them with opportunity to correct mal
adjustments in their balance of payments without resorting
to measures destructive of national or international pros
perity.”
In accordance with its instructions, the drafting committee
d'.'fonvd consideration of Article I, Section 4.
The drafting committee considered Alternatives A and B of
Article I, Section 6 and recommends to the Committee the fol
lowing language:
“In accordance with the above objectives, to shorten the
periods and lessen the degree of disequilibrium in the inter
national balances of payments of member countries.”

132

MONETARY AND FINANCIAL CONFERENCE

The drafting committee calls the attention of the Committee
to the words at the end of Article I, Alternative A, which read:
“The Fund shall be guided in all its decisions by the purposes
set forth above.”
The drafting committee recommends that the whole Commit
tee approve the inclusion of this language at the end of Article I.

Document 124

(p. 36)

S A /l/7

J o in t S t a t e m e n t V I I I , 2 & 3

2. The reciprocal obligations of the Fund and the country are
to be liquidated within a reasonable time.
3. After a member country has given notice in writing of its
withdrawal from the Fund, the Fund may not dispose of its hold
ings of the country’s currency except in accordance with the ar
rangements made under 2, above. After a country has given notice
of withdrawal, its use of the resources of the Fund is subject to
the approval of the Fund.
Alternative A
it Section 3. Settlement of Accounts with Governments Ceasing
to be Members.
(a) When a government ceases to be a member in any of the
cases referred to in sections---------above, settlement of all ac
counts between the Fund and such government shall be made
with reasonable dispatch by agreement between the Fund and
the government. The Fund shall not engage in any transac
tions in the currency of such country except in accordance with
this Section.
(b) The Fund shall be obligated to pay to such government
an amount equal to its quota, plus any other amounts due to
it from the Fund, less any amounts due to the Fund from such
government, including charges accruing after the government
ceases to be a member; but no payment shall be made prior to
six months from the date when such government ceases to be
a member. Payments shall be made in the currency of that
country.
(c) If the Fund’s holdings of the currency of such country
are not sufficient to pay the net amounts due from the Fund,
the balance shall be paid in gold, or in a manner to be agreed
between the Fund and such government. If the Fund and the

PROCEEDINGS AND DOCUMENTS

133

government have not reached agreement within six months
from the date of withdrawal, the currency of that country held
by the Fund shall immediately be paid to the government. The
balance shall be paid in 12 quarterly installments during the
following 3 years. Each such installment shall be paid in the
currency of the country acquired by the Fund since the date of
withdrawal or by the delivery of gold.
7 '5 /4 4

J.S. Art. VIII
Sec. 2 & 3

(p. 36a) (d) If the Fund fails to meet any payment due in
accordance with the preceding paragraphs, the government
shall be entitled to acquire from the Fund against the amount
then due to it from the Fund the currency of any member held
by the Fund, which has not been declared scarce under Article
VI, Section 2 (J.S. VI, 2).
(3)
If the Fund’s holdings of the currency of such country
exceed the amount due to such government, and the Fund and
the government do not reach agreement on the method of settling
their accounts within six months from the date of withdrawal,
settlement shall be made as provided in this and the following
paragraphs. The government shall be obligated to redeem such
excess currency in gold or in the currencies of members which
at the time- of actual redemption are convertible under Article
III, Section 6 (J.S. Ill, 5) within three years from the date of
withdrawal or such longer period as may be fixed by the Fund.
Such redemption shall not be effected at a rate in any quarterly
period greater than one-twelfth of the Fund’s excess holdings
at the date of withdrawal of the currency to be redeemed plus
current accruals of such currency during such quarterly period.
If the Government fails to redeem such excess currency in this
manner, the Fund may liquidate in any market that currency
at the same rate in an orderly manner. The withdrawing
government unconditionally guarantees at all times the un
restricted use of such currency for the purchase of goods or for
the payment of other sums duo to it or to its nationals. Further,
the withdrawing government shall indemnify the Fund against
any loss resulting from exchange depreciation until such cur
rency has been used or redeemed.
(f)
Any member desiring to obtain the currency of a former
member shall acquire the currency by purchase from the Fund,
to the extent that such member has access to the resources of
the Fund and such currency is available under the preceding
paragraph,

134

MONETARY AND FINANCIAL CONFERENCE

(g)
In the event of the Fund going into liquidation under . . .
within six months of the date upon which any government
ceases to be a member, all rights and obligations of such gov
ernment shall be determined in accordance with the provisions
governing liquidation instead of the provisions of this section.
7 /5 /4 4

J.S. Art. V III
Sec. 2 & 3

Document 125
C I/ 1 / R P / 1

Report of Committee 1 on Purposes, Policies, and Quotas
of the Fund to Commission I
(July 5, 1944, 10:30 a.m.)

Mr . V a r v a r esso s:

Mr. Chairman, -your Committee I on Purposes, Policies, and
Quotas of the Fund held two meetings on July 4; the first at 10:00
A.M. and the second at 4:00 P.M.
A document (Doc. #51) containing the Committee assignments
had been distributed to the Members of the Committee at its first
meeting. In determining the objects which should come within
its jurisdiction the Committee had been guided by the suggestions
contained in the document.
With regard to the procedure to be followed, the Chairman
proposed and the Committee accepted that whenever there were
several alternatives to be considered, those involving substantial
changes of the provisions of the Joint Statement would be con
sidered first.
On the other hand, it has been moved and accepted by the Com
mittee that, in order to expedite matters, a small drafting sub
committee be appointed and that alternatives involving no sub
stantial changes of the Joint Statement provisions be referred
to this Committee by the Chairman with the approval in each case
r,f the Committee.
A subcommittee has been accordingly constituted to that effect.
At the beginning of the first meeting it was suggested that the
principal question which comes within the jurisdiction of the
Committee is the question of the determination of the quotas of
member countries referred to in Article II, section 7, of the Joint
Statement. It was argued that this question was of the highest im
portance to the member countries and that a procedure ought to
be established for determining such quotas. The Committee, being

PROCEEDINGS AND DOCUMENTS

135

in the meantime informed that a paper referring to this subject
was being prepared for distribution to its members, has decided
to postpone temporarily the discussion of quotas until such paper
has been distributed.
During the further discussions of the specific subjects of the
Committee, it was suggested that it would be desirable in so far
as possible to eliminate voting and that, where a fundamental
difference of opinion was evident and a rapprochement of the dif
ferent views was unattainable, the Chairman, with the consent
of the Committee, would refer the matter to your Commission
with a record of the different opinions represented.
(p. 2) The Committee then proceeded to the discussion of
Article I of the Joint Statement referring to the purposes and
policies of the Fund and of the numerous alternatives submitted
by members.
The Committee has not been able to make substantial progress
in arriving at an agreement in the first day of its meetings.
Three subjects involving questions of principle have been re
viewed, which absorbed the time allowed for the two meetings.
The first of these three subjects was Alternative C, section 2, of
Article I. The purpose of this Alternative, which was explained
to the Committee, was to state explicitly that one of the purposes
of the Fund was “to assist in the fuller utilization of the resources
of economically underdeveloped countries and to contribute there
by to the maintenance in the world as a whole of a high level of
employment and real income . .
It was thought by the pro
poser that the wording of section 2 as it stands now was stressing
unduly the position of highly industrialized countries while it
made no reference to underdeveloped agricultural countries. Al
ternative C has been seconded by several members while others
expressed very serious doubts on the advisability of adopting a
wording which would be interpreted as enlarging the purposes
of the Fund in a way which was out of proportion with the means
at its disposal and attributing to it objectives which were appro
priately those of the Bank for Reconstruction and Development.
In discussion, however, there developed a consensus that the
attainment of a high level of employment and real income as
well as their maintenance was intended to be included among the
purposes and that the addition of appropriate words to that effect
would be desirable.
At the conclusion of the discussion, the Chairman referred
Alternative C to the drafting committee upon the understanding
7 4 9 0 1 3 — 4 8 — 10

136

MONETARY AND FINANCIAL CONFERENCE

that the intent of the amendment was not to enlarge the purposes
of the Fund but merely to make them more explicit.
The second subject involving a question of principle was Al
ternatives B, D and E of Article I, section 4, which relates to
exchange stability. The discussion on these Alternatives revealed
that the wording of this section of the purposes and policies of the
Fund was closely connected with Article IV of the Joint State
ment dealing with par values of member countries and providing
for changes in these par values.
(p. 3) It has been accordingly decided that the subject be
referred to the drafting committee on the understanding that it
would not make its report until a later stage when the provisions
of Article IV of the plan have been agreed upon.
The third subject was Alternative G, which should include
among the purposes of the the Fund “to promote and facilitate
the settlement of abnormal indebtedness arising out of war.”
The sponsors of the proposal stressed the vital importance of the
problem for the countries directly concerned, and indicated the
necessity of including the subject in a scheme of postwar inter
national monetary cooperation. In the discussion the dangers and
difficulties of burdening the Fund with the immense problem of
settlement of balances accumulated in wartime was emphasized.
It has been suggested that the Committee should refer the matter
to your Commission.
Other Alternatives to the sections of Article I of the Joint
Statement which do not involve substantial changes have been
referred by the Committee to the drafting subcommittee which
will report to the Committee in due time.

Document 126
CI/3/RP1

Report of Committee 3 on Organization and Management
of the Fund to Commission I
Jul y 5, 1944, 10:30 a.m.

Mr. H e x n e r : Committee 3 of Commission I on the Organiza
tion and Management of the Fund held two meetings on July 4.
Although no general discussion in the formal sense took place,
there became crystalized one or two fundamental principles. The
most important was that what may be called economic states
manship should prevail in the management. Although it was clear

PROCEEDINGS AND DOCUMENTS

137

that consultation will be the principal means of cooperation, the
Committee realized that the management of the Fund has to be
prepared to deal with possible or potential conflicts of interest
which ultimately may have to be voted upon. There was no doubt
that in the management of the Fund large countries should have
stronger representation and certain privileges, and also no dis
agreement was expressed about the implementing of the organi
zation to give adequate protection to small countries.
The discussion was based on the draft presented to the Com
mittee as a part of Document F-l. The Committee discussed Article
VII, 1 and 2 of the Joint Statement. It was envisaged that there
will be an agency called “Board of Governors” consisting of the
representatives of all of the member countries. These representa
tives serve at the pleasure of their governments and can be recalled
and replaced at the discretion of the member countries. The same
relates to their alternates, who may participate in the meetings. All
powers, in so far as they are not specifically assigned to other
agencies, are concentrated in the Board of Governors. It was
agreed that this agency may delegate its powers to other agencies
within the Fund provided such delegation is not excluded expressly
by the Statutes of the Fund. Meetings of this Board shall be
convened whenever requested by members representing one quar
ter of the aggregate votes or by five member countries. The Com
mittee did not accept the provision of the draft that annual
meetings shall not be held in the same country more than once
in five years. Thus no limitation was placed in this regard on
the management. The Board of Governors will have a chairman;
however, no particular discussion took place about the powers
of this presiding officer. It was assumed that the voting in the
Board of Governors will be conducted according to quotas unless
otherwise provided for. There was general agreement about those
items which the Board of Governors cannot delegate to other
agencies.
The discussion concerning the jurisdiction and election of
agencies other than the Board of Governors and its chairman
was not finished. The opinions were not even crystalized on the
the point whether a fruitful discussion on the structure of the
Executive Committee may take place before the quotas are agreed
upon.
It may perhaps be wise to indicate some differences of opinion
concerning the structure and jurisdiction of the Executive Com
mittee as contained in Alternatives A and B to VII, 2.
According to both Alternatives the Executive Committee has

138

MONETARY AND FINANCIAL CONFERENCE

to consist of representatives of a certain number of major (p. 2)
countries, which are individually represented in this body. An
other group of members in the Executive Committee is repre
sented by elected representatives. There is a difference of views
whether the members of the Executive Committee have to be
necessarily members of the Board of Governors or not. Further
more, no clarity exists as to whether the members of the Executive
Committee serve at the pleasure of their governments or not. No
agreement was reached whether the members of the Executive
Committee, who are elected, should be individual persons or coun
tries. One of the main points at issue was whether the Executive
Committee should be in permanent session during the first three
years or whether it should operate according to expediency. No
agreement was reached concerning the functions of the Executive
Committee. One alternative focused the powers on the Commit
tee as a corporate body, the other on its chairman. One alterna
tive made the managing director the chairman of the Committee,
the other provided for a specific chairman with extensive powers.
The Committee will consider in its afternoon meeting whether
a subcommittee should be established to discuss the procedure
for the election of the Executive Committee.
There was a visible trend in the discussion to create a framew7
ork
which may make it possible to manage the Fund in the spirit of
the ideas on which the Fund—according to the purposes expressed
in the Joint Statement—ought to rest.

Document 127
C I/4 /R P 1

Report of Committee 4 on Form and Status
of the Fund to Commission I
Jul y 5, 1944, 10:30 a.m.

Mr. K e i l h a u : After the opening remarks of the Chairman at
the fir&t meeting of Committee 4 of Commission I on July 4, he
announced that the material to be used by the Committee would
not be available for distribution until the afternoon. Because
of this, discussion was postponed until the regular afternoon
meeting scheduled for July 5. There is nothing further to report.

PROCEEDINGS AND DOCUMENTS

139

Document 128
C I/2 /R P 1

Report of Committee 2 on Operations of the Fund
to Commission I
■July

5, 194-1—10:‘i0

a. m.

M r . M o s s e : I am reporting to you on the work of Committee
No. 2 of Commission I, which deals with the Operations of the
Fund. I shall cover both the morning and the afternoon meetings
held on July 4. I shall keep the following order:
1. I shall offer some remarks on the procedure of our Committee,
2. I shall enumerate the items which have obtained a general
agreement,
3. Finally I shall report to you more fully about one point on
which wide differences of opinion have appeared.
Concerning the procedure, it had been generally accepted that
committees should not take a formal vote but that they should
try to iron out differences of opinion.
In order to do so, the committee authorized the Chairman to
appoint a small asterisk committee—so called because it will study
the texts which are marked with an asterisk in document F-l.
This asterisk committee will be limited to questions which do
not involve wide differences and are chiefly questions of language.
Committee 2 also decided that the Chairman should invite
objections; when no objection is made the Chairman shall declare
that there is a general agreement and the reporting delegate shall
so report to the committee. However, any delegate may go on
record for any opinion, if it so desires, and this will be reported
by the reporting delegate.
When there are wide differences of opinion, the reporter will
so report to the Commission. But the Chairman stated that
it will always welcome suggestions from the floor designed to
adjust differences. Any delegate may suggest devices which might
serve to reconcile conflicting views—for instance, an ad hoc com
mittee or unofficial conversations among delegates. So much for
the question of procedure.
(p. 2) I am now glad to report that Committee No. 2 has
covered Article III, 1, 2, 3. If you refer to Document #51 on
committee assignments, the Committee has covered section 1,
section 2, section 2A, section 3, section 4 and, in part, section 5.
With the exception of one question, there has been general agree
ment on substance on ail questions. I shall name them in order.

140

MONETARY AND FINANCIAL CONFERENCE

according to Document #32. May I invite you, gentlemen, to
take document 32, or FI, page 5.
On page 5, with reference to Joint Statement III, 1, there has
been general agreement on alternative A wr
ith, however, a sug
gestion for the lawyers to insure harmony between this alterna
tive A and alternative A, section 5, on page 8, concerning borrow
ing by the Fund from any other source. The minutes of the
meeting of Committee 2 of Commission I at 11:30 A.M. on July 4
(Document #104) should be corrected accordingly to include
this suggestion.
Section 2, page 6A, alternative A has been accepted by common
agreement with the exception of paragraph 2, which was reserved
for later discussion, and of paragraph 3, upon which I shall speak
later. Now, although there was general agreement on the ward
ing, I am not sure that there is agreement on the interpretation;
some countries believe that buying is a right while others believe
that a certain amount of elbow room is left to the Fund.
There has been general agreement on section 2A, on Conditions
Governing Purchases for Capital Transfers. But an important
question was raised by the delegates of Greece and Czechoslovakia.
They asked whether the country of which the currency is re
quested for capital transfer is obliged to accept imports of capital.
Let me take an illustration of this point. Under certain condi
tions, which have been fully agreed and understood by the members
of the Committee, Canada might purchase drachmas in order
to make capital investments in Greece. Normally, Greece is
required to accept drachmas for current payments, but is she
obliged to accept them for capital investments in Greece by Cana
dian interests? The delegates of Canada gave the answer that
any country could refuse imports of capital. In other words,
the consent of the nation of which the currency is purchased, will
be required in practice. This answer was deemed satisfactory,
and it is with this implication that the section has been generally
accepted.
Section 3, page 6b, concerning ineligibility of members to use
the resources of the Fund has been generally accepted, but with
the suppression of the words “and policies” at the end of the
second line. The Committee recognized that alternative A is
more mindful of the dignity of the country members; as Mr. Brown
(U.S.A.) said “It is better to limit the use of the Fund or to declare
a nation ineligible rather than to suspend it with a connotation
of blame”.
(p. 3) Section 4, alternative A, page 7. Elimination on the

PROCEEDINGS AND DOCUMENTS

141

Operations of the Fund, has been generally approved without
objection.
Section 5, alternative A, page 8 on Operations for the Purpose
of Preventing Currencies from Becoming Scarce has been gen
erally agreed with the exception of paragraph (2), which has
not yet been discussed. However, there are in paragraph (1)
of this section some minor problems of drafting and this section
has been turned over to the asterisk committee.
To summarize, committee 1 has achieved a general agreement
on Section 1, 2, 2A and 4, with exception of paragraphs 2 and
3, in section 2.
I think that I am not going beyond the assignment of a report
ing delegate in saying that Committee 2 recommends that this
Commission approve these articles.
Now I come to the only point upon which there were wide dif
ferences of opinion, namely III, 2, c of the Joint Statement.
Before doing so, I want to ask, What is your pleasure? If the
Commission decides to put that question on its order of the day
right away, it is appropriate that I should report to you the dis
cussion which took place in Committee No. 2. If, on the other
hand, you decide to postpone the discussion on this rather ticklish
question, I respectfully submit that my report be postponed until
such time as the C6mmission may select.

Document 129
C /S P /1

Report of the Special Committee on Furnishing Informa
tion of the Pre-Conference Agenda Committee,
June 28, 1944
The Special Committee on Furnishing Information met on June
28 under the Chairmanship of Mr. Morozov of the U.S.S.R. The
other members of the Committee were Sir Theodore Gregory of
India, Mr. Deutsch of Canada, Mr. Polak of the Netherlands,
and Mr. Maffry of the United States as Reporter.
The Committee considered the advisability of a general pro
vision which would require member countries to furnish informa
tion needed for the operations of the Fund as against a listing
of required information. Several members of the Committee

142

MONETARY AND FINANCIAL CONFERENCE

would have been willing to accept a general provision on the
assumptions that the Fund would be reasonable in its demands
for information and that it would make allowances for the posi
tion of countries the statistical services of which are less well de
veloped than those of others.
It was decided to attempt a listing of information essential for
the operations of the Fund with an escape clause which would
permit a country to plead inability to supply certain information
but not unavailability of information in its possession. Such a
clause was considered necessary because some countries cannot
now furnish some of the information which would be considered
essential to the operations of the Fund.
It was recognized that a listing of required information would
have the positive advantage of putting member countries on notice
as to what was required and in this way of promoting the devel
opment of new statistical and other information.
The Committee did not reach full agreement on required items
of information and has therefore submitted two lists as given
below. It should be noted that items 3, 6 (b ), (c ), and (d ), and
10, which appeared in Alternative A submitted to the Committee
for consideration were deleted and that the exact phrasing of items
1 and 2 on List I will depend upon the final definition of terms.
The Committee discussed at some length the* question of requir
ing information on gold production. It was pointed out that gold
production may be inferred, although with some margin of error,
from data on gold holdings and gold movements, and could not be
shown to be required under any specific provision of the draft
agreement. The opposing view was that it would be very useful
and indeed essential for the Fund to know current additions to
gold supply as a result of new production independently of factors
such as movements into and out of private hoards. The longer
list given below includes gold production as an item of required
information.
Section —. Furnishing Information
The Fund may require member countries to furnish it with
such information as it deems necessary for its operations. In
requesting information the Fund shall, however, take into consid
eration the ability of individual countries to furnish the data
asked for. The minimum amount of information necessary for
the due carrying out of the Fund’s duties includes the following:
(P. 2)
1. Official holdings of (a) gold at home and abroad, (b) goldconvertible currencies distributed by currencies, and (c)

PROCEEDINGS AND DOCUMENTS

3.
4.
5.

8.
9.

10.
11.

143

other currencies distributed by currencies, as defined for pur
poses of the Fund.
Holdings by banking and financial agencies other than of
ficial agencies of (a) gold at home and abroad, (b) goldconvertible currencies distributed by currencies, and (c)
other currencies distributed by currencies, as defined for pur
poses of the Fund.
Production of gold.
Gold exports and imports distributed by countries of destina
tion and origin.
Total exports and imports of merchandise, in terms of local
currency values, distributed by countries of destination and
origin.
International balance of payments, including (a) trade in
goods and services, (b) gold movements, and (c) capital
transactions.
International investment position, i.e., investments within the
country owned abroad and investments abroad owned by
residents of the country.
National income.
Price indexes. (Indexes of commodity prices in wholesale
and retail markets and of export and import prices as avail
able from official sources).
Buying and selling rates for foreign currencies.
Exchange controls. (Comprehensive statement of exchange
controls in effect at the time of assuming membership in the
Fund and changes thereafter as they occur.)

(p. 3)
12. Where official exchange controls exist, arrearages for com
mercial or financial remittances in terms both of the time
lag in remittances and total amounts in arrears by types of
arrearage.
(List 2)
1. Gold holdings of the Central Bank and the Treasury and
their changes.
2. Gold convertible exchange holdings of the Central Bank and
the Treasury.
3. Movement of capital.
4. Foreign trade data.
5. Other items of the balance of payments.
6f Rates of exchange and their changes,

144

MONETARY AND FINANCIAL CONFERENCE
Document 131(7)
UNITED

NATIONS

MONETARY

AND

FIN ANCIAL

CONFERENCE

Agenda
(Corrected Copy)

I. International Monetary Fund

1. Purposes, Policies and Quotas of the Fund
(Purposes and policies of the Fund, obligations of member
countries, transitional arrangements for the period during
which the Fund and member countries adopt the agreed
policies, relationship of the Fund with the public and with
non-member countries, and relationship of member countries
with non-member countries, to consider the quota of member
countries, the basis for future revision of quotas, and pay
ment of subscriptions in gold and local currency.)
2. Operations of the Fund
(Operations of the Fund including the sale of exchange, ac
quisition of gold by the Fund, borrowing by the Fund, charges
levied by the Fund, determination of parities and changes in
parities, guarantee of the value of the assets of the Fund,
regulation of capital transactions, apportionment of scarce
currencies, and provision for reserves and distribution of
profits.)
3. Organization and Management
(Establishment of governing boards, basis for voting, selec
tion of officers, appointment of committees, location of offices
and depositories, provision for by-laws and regulations, pub
lication of reports by the Fund, information to be reported to
the Fund by member countries, and suspension from member
ship, liquidation of reciprocal obligations on termination of
membership, and general liquidation of the Fund.)
4. Form and Status of the Fund
(Nature of the agreement establishing the Fund, the legal
position of the Fund in member countries, immunities of
the Fund and its assets, amendment of the Fund agreement
and the regulationship of the Fund to other international or
ganizations.)
(P. 2)
II. Bank fo r R econstruction and D evelopm ent

1. Purposes, Policies, Capital and Subscription of the Bank.
(Purposes and policies of the Bank, relationship of the Bank
with the public and with non-member countries, and relation

PROCEEDINGS AND DOCUMENTS

145

ship of member countries with non-member countries, capital
of the Bank, subscription of member countries, proportion of
subscriptions to be paid in, payment in gold and local cur
rencies, further calls for payment on subscriptions and the
reservation of part of the unpaid capital as a surety fund.)
2. Operations of the Bank
(Conditions under which the Bank may guarantee, participate
in or make loans, the manner in which it will aid and en
courage equity investment, provision for safeguarding funds
lent by the Bank, guarantee of the value of the local currency
assets of the Bank, provision for repayment of principal and
interest, borrowing by the Bank, the limitation on direct and
contingent liabilities of the Bank, the charges the Bank may
levy, provision for reserves and distribution of profits, se
curity and foreign exchange transactions the Bank may un
dertake, and other operations of the Bank.)
3. Organization and Management
(Establishment of governing boards, basis for voting, selec
tion of officers, appointment of committees, location of offices
and depositories, provision for by-laws and regulations, pub
lication of reports by the Bank, withdrawal or suspension
from membership, contingent liability of former members,
and general liquidation of the Bank.)
4. Form, and Status of the Bank
(Nature of the agreement establishing the Bank, the legal
position of the Bank in member countries, immunities of the
Bank and its assets, amendment of the Bank agreement and
the relationship of the Bank to other international organiza
tions.)
III. Other M easures for International Financial Cooperation

Document 132

C l/M /2

Minutes of Meeting of Commission I
I n te r n a tio n a l M o n e ta ry F u n d
( July 5, 10:30 a.m.)

The Chairman urged that the work should be speeded.
The Reporters of the four Committees of Commission I (Mr.
Varvaressos, Greece, for Committee 1; Mr. Mosse, French Com
mittee of National Liberation, for Committee 2; Mr. Hexner,

MONETARY AND FINANCIAL CONFERENCE

146

Czechoslovakia, for Committee 3; and Mr. Keilhau, Norway, for
Committee 4) then reported on the progress made to date by their
respective Committees. (These reports are being circulated sep
arately.)
The Commission discussed procedure to be followed with respect
to these reports and its future activities and decided:
(1) To postpone consideration of the reports until further
progress has been made in the Committees;
(2) To have the reports from the Committee circulated in
advance so that the members would be better able to participate;
(3) That the next meeting of the Commission should be left to
further determination but in any event should not be held until
reports covering several more meetings of the Committees are
available;
(4) To have the Committee sessions longer and less frequent,
and
(5) To have one meeting of each Committee on July 6 (two in
the morning and two in the afternoon).

Document 137

(P. 2 0)

J OURNAL
UNITED

NATIONS

N o. 6

MONETARY

AND

FIN ANCIAL

Bretton W o o d s / N e w H am pshire

CONFERENCE
July 6, 1944

O R D E R OF T H E DAY
Meetings for Thursday, July 6
10
10
2:30
2:30
4:45

a.m.
a.m.
p.m.
p.m.
p.m.

Committee 1 of Commission I ..................................Auditorium
Committee 3 of Commission I ................................The Hemicycle
Committee 2 of Commission I ................................Auditorium
Committee 4 of Commission I ............................... The Hemicycle
Agenda Committee of Commission I I ................... Room 219

(p . 2 1 )

R e s u m e s o f C o m m is s io n a n d C o m m i t t e e M e e t in g s

Commission I
International Monetary Fund
(July 5, 10:30 a.m.)

The second meeting of Commission I was devoted to receiving
progress reports from the four Committees of the Commission.
(The reports of the Committee Reporters are being distributed

PROCEEDINGS AND DOCUMENTS

147

separately as documents no. 125 (Committee 1), no. 126 (Com
mittee 3), no. 127 (Committee 4), and no. 128 (Committee 2).)
It was agreed that in the future the reports of Committee Re
porters would be circulated in advance of Commission meetings.
It was decided to hold only one meeting of each Committee on
Thursday, July 6, and to leave to further arrangement the date
of the next meeting of the Commission.
(The minutes of this meeting are being distributed separately
as document no. 132.)
Committee 1 of Commission I
P urposes, P o lic ies, and Q uotas o f th e F un d
(July 5, 4 p.m,.)

Committee 1 of Commission I met at 4 p.m., July 5 and con
sidered Alternative A of article II, on page 2—“Subscription
to the Fund”. After brief discussion, section 1 of Alternative A
was referred to the drafting committee for a slight change in
phraseology. Section 2 of Alternative A, which deals with quotas,
was deferred until the document on this is available. Alternative
A, section 3, which deals with time and place of payment, was
also deferred since it is related to section 5 of an additional article
XIII on page 49 which has not yet been considered. In considering
Alternative B, a proposed addition to section 3 of Alternative A,
it was agreed to recommend to.Commission I the appointment of
an ad hoc committee to consider the problems of liberated coun
tries with respect too their initial quota payments and other mat
ters. In considering Alternative A, section 4, on page 3, which
deals with adjustment of quotas, the consensus was that the Fund
should be permitted to revise quotas whenever this was deemed
appropriate, and it also should review the question every five
years. The matter was referred to the drafting committee. The
Committee agreed with the substance of Alternative A, section
5, to article II, section 3, on page 4, which deals with initial pay
ments. and referred it to the drafting committee for language
changes.
(The minutes of this meeting are being distributed separately
as document no. 138.)
(P .22)
Committee 2 of Commission I
O p erations o f th e F u n d
(July 5, 5:30 p.m.)

The third meeting of Committee 2 of Commission I was held

148

MONETARY AND FINANCIAL CONFERENCE

on July 5 at 5:30 p.m. The Committee continued its discussion
of article III, Transactions with the Fund. The Committee agreed
to refer the consideration of Alternative A, section 2 (3) (p.
6a of Document SA /1), Alternative B (p. 6b), and Alternative D
(p. 6c) to an ad hoc committee to be appointed by the Chairman.
The Committee continued its discussion of article III of the Joint
Statement. The Committee postponed for later consideration Al
ternative A, section 5 (2) (p.8) and Alternative B (p. 8 ); also
Alternative A; section 6 (p. 9) and Alternatives B, C, D, and E
to article III, section 7, of the Joint Statement (pp. 11, 11a, and
lib ) . The Committee approved Alternative A, section 7 (p. 10)
and referred parts of Alternative A, section 6 (p. 9) and Alterna
tive A, section 9 (p. 12) to the language committee.
(The minutes of this meeting are being distributed separately
as document no. 140.)
Committee 3 of Commission I
Organization and Management of the Fund
(Jul y 5, 4 p.m.)

The third meeting of Committee 3 of Commission I deferred
consideration of article VII, section 2, relating to the executive
directors until new drafts were submitted by various interested
groups of members. The Committee took up consideration of
section 3 on voting in the board of governors. The principle of
allotting each member a certain number of votes in addition to
its votes determined by quotas was generally accepted. No action
was taken on the precise number of votes so to be assigned to each
member. There was no final agreement on the second paragraph,
which proposed to increase the votes of members whose currencies
are sold by the Fund. It was referred back to the Secretariat for
redrafting so as to clarify the proposal insofar as it referred to
“net transactions in gold” and for specification of the cases in
which the paragraph is supposed to apply. The general objectives
met with rather wide approval although there was some dissent.
The third paragraph was approved. Alternative B was withdrawn.
The Committee agreed to include in the draft a quorum provision
whereby the quorum would consist of at least half of the mem
bers and two thirds of the votes.
(The minutes of this meeting are being distributed separately
as document no. 141.)

PROCEEDINGS AND DOCUMENTS

149

(p. 23)
Committee 4 of Commission 1
F orm and Status o f th e F un d
( July 5, 5:30 p.m.)

The second meeting of Committee 4 of Commission I was held
on July 5 at 5:30 p.m. The Chairman was authorized to appoint
a small “asterisk committee” to consider minor questions of word
ing and coordination. The Committee proceeded with a discussion
and approval of section 5 of article IX, dealing with immunity of
assets of the Fund, as amended to include section 6. After an ex
tended discussion of section 7 of article IX, pertaining to restric
tions on taxation of the Fund, its employees and obligations, the
Chairman appointed a subcommittee to consider the present Al
ternative A contained in document no. 121. Delegates from Cuba,
Norway, Union of Soviet Socialist Republics, United Kingdom,
and the United States were appointed to the subcommittee, with
the Delegate of the United States as Chairman.
(The minutes of this meeting are being distributed separately
as document no. 142.)
N o t ic e

In observance of the Eighth Year of Chinee Resistance to the
forces of aggression, a meeting will be held in the Auditorium
on Friday, July 7, at 9 p.m., at which the Honorable H. H. Kung
will make a brief address and motion pictures of the war in China
will be shown. The members of the Delegations, of the Secre
tariat, and of the Press are cordially invited to attend.
Warren Kelchner
Secretary General
(p .24)
L is t o f D o c u m e n t s I ssu e d as o f
J u l y 5, 1944
Subject

Symbol No.

Order of the Day, July 5, 1944 ........................................................ ....GD/13
Journal No. 5 ...................................................................................... ... J/5
Commission I, Committee 1, Minutes of Meeting, July 4 ..............CI/1/M1
Commission I, Committee 3, Minutes of Meeting, July 4 .......... ....CI/3/M1
Commission I, Committee 2, Minutes of Meeting, July 4 .......... ....CI/2/M1
Commission I, Committee 4, Minutes of Meeting, July 4 .......... ... CI/4/M1
Additional Page to S A / 1 .................................................................. ... SA/1/1
Additional Page to S A / 1 .................................................................. ... SA/1/2
Additional Page to S A / 1 .................................................................. ... SA/1/3
Additional Page to S A / 1 .................................................................. ... SA /1/4
Commission I, Committee 1, Minutes of Meeting, July 4 .......... ... CI/1/M2

150

MONETARY AND FINANCIAL CONFERENCE

Subject

Symbol No.

Commission I, Committee 2, Minutes of Meeting, July 4 .......... ...CI/2/M 2
Commission I, Committee 3, Minutes of Meeting, July 4 .......... ...CI/3/M 2
Telephone D ire c to ry ..............................................................................GD/13
Mexican Delegation, Proposal on S ilv e r ...................................... ...D P/2
Egyptian Delegation, Memorandum on Purposes and Policies
of the F u n d ........................................................................................ D P/3
Mexican Delegation Proposal on Voting a Uniform Change in
Gold Value of Member C u rre n c ie s............................................ ...D P/4
Additional Page to S A / 1 ......................................................................SA /1/5
Additional Page to S A / 1 ......................................................................SA /1/6
Commission I, Committee 1, Report of D rafting Committee . . . . C I/l/D C /1
Additional Page to S A / 1 ......................................................................SA /1/7
Committee 1, Report to Commission I, July 5 .............................. ... CI/1/R P1
Committee 3, Report to Commission I, July 5 .............................. ... C I/3/R P1
Committee 4, Report to Commission I, July 5 .............................. ... C I/4/R P1
Committee 2, Report to Commission I, July 5 .............................. ... C I/2/R P1
Special Committee on Furnishing Information, R e p o r t............ ... C /SP/1
Agenda, Revision o f .............................................................................. A/1
Commission I, Minutes of Meeting, July 5, 1944, 10:30 a.m............ CI/M /2

Document 138
C I/ 1 / M 3

Minutes of Meeting of Committee 1 of Commission I
P u rp o s e s , P o lic ie s , a n d Q u o ta s o f t h e
(J ul y 5, 1944, 4 p.m.)

Fund

The third meeting of Committee 1 of Commission I was held on
Wednesday, July 5, 1944, at 4 p.m.
Copies of the first report of the drafting committee of Com
mittee 1 were distributed. The Committee agreed to defer dis
cussion of the report until the next meeting.
The Chairman then took up the regular agenda, beginning
with Alternative A of Article II—“Subscription to the Fund”—
(Page 2 of document SA /1). Section 1 of this Alternative deals
with “Countries Eligible for Membership”. A question was raised
as to whether there was not a defect in the wording of this pro
vision which might be remedied by reference to “original” mem
bers or “founder” members, or some similar expression. The
Chairman found that the consensus of the Committee was to
agree with the sense of Alternative A and to refer the question
to the drafting committee.

PROCEEDINGS AND DOCUMENTS

151

Section 2 of Alternative A—“Quotas”—was passed over, as
the Chairman indicated that the expected document on this sub
ject was not yet ready.
The Chairman then read Alternative A, section 3—“Time and
Place of Payment”. In answer to inquiries from various members
as to whether all the quotas had to be paid in before the fund
could begin operations, it was explained that this problem
would be dealt with in section 5 of an additional article XIII,
referred to on page 49 of Document SA/1.
The Committee then discussed Alternative B (p. 2a), proposed
as an addition to section 3 of Alternative A. The proposer of this
amendment explained its importance to liberated countries, in
dicating the complete disorganization of their monetary systems.
He also pointed out the safeguards for the Fund contained in
Alternative B. It was brought out in discussion that other countries
in the Middle East would be faced with similar difficulties and
might require similar arrangements.
This led to general discussion of the applicability of the Agree
ment to liberated countries, and the Committee agreed to recom
mend to Commission I that it appoint an ad hoc committee to
consider the problems of liberated countries with respect to their
initial quota payments and other matters dealt with in other pro
visions of the Fund.
(p. 2) The Chairman found that there was agreement with
the substance of Alternative A, section 3, but that since it was
related to provisions not yet before the Committee, final consid
eration should be deferred.
The discussion then turned to Alternative A, section 4 (p. 3),
which deals with adjustment of quotas. Questions were raised
regarding whether the Fund should be permitted to revise quotas
in general at any time or only at five-year intervals, and also
whether the Fund should be able to revise an individual quota
at any time. The consensus of the meeting was that the Fund
should be permitted to revise quotas whenever it was deemed
appropriate, and that it should also review the question every
five years. Various phrases were suggested to accomplish this
purpose. The matter was referred to the drafting committee.
The Committee then considered Alternative A, section 5, to
article II, section 3 of the Joint Statement (p. 4), dealing with
“Initial Payments”. The Committee concurred in the substance
of this provision and referred the various suggested improve
ments in language to the drafting committee.
7 4 9 0 1 3 — 48— 11

152

MONETARY AND FINANCIAL CONFERENCE
Document 140
C I/ 2 / M 3

Minutes of Meeting of Committee 2 of Commission I
O p e ra tio n s o f t h e F u n d
(Jul y 5, 1944, 5:30 p.m.)

The third meeting of Committee 2 of Commission I was held at
5:30 p.m. on July 5.
The Chairman was authorized to appoint an ad hoc committee
to consider the question recommitted to Committee 2 by Com
mission I, that is, Alternative A, section 2 (3) (p. 6a of Docu
ment SA /1), Alternative B (p. 6b), and Alternative D (p. 6c),
all of which refer to the conditions under which a member country
may purchase the currency of another member from the Fund.
The Committee then continued its discussion of article III,
“Transactions with the Fund”. The Committee agreed to defer
discussion of Alternative A, section 5 (2) and Alternative B
(p. 8) in order to allow time for informal discussion of these
Alternatives.
The Committee agreed to defer discussion of Alternative A,
section 6 (p. 9) until article IX, sections 2 and 3 of the Joint
Statement have been considered, since the meaning of section 6
(p. 9) depends on the provisions of article IX. In view of the
close relation of article IX, sections 2 and 3, to the work of
Committee 2, the possibility of a reassignment of work among
the Committees of Commission I was suggested. The Committee
also noted certain typographic errors in section 6. In the fifth
line the word “currency” should be replaced by the word “current”
and in the second line of paragraph (c) the word “above” should
be replaced by the word “below”. The Committee agreed that,
pending further discussion, paragraph (c) be referred to the
language committee with the suggestion that the words “contrary
to” be substituted for the words “as a result of dealings illegal
under”.
The Committee agreed to approve Alternative A, section 7
(p. 10).
The Committee agreed to defer consideration of Alternatives
B, C, D, and E to article III, section 7, of the Joint Statement (pp.
11, 11a, lib) until Alternative A has been presented to the Com
mittee.
The Committee agreed to refer Alternative A, section 9 (p. 12),
to the language committee for rewording and clarification.

PROCEEDINGS AND DOCUMENTS

153

The Committee was informally presented with a new Alternative
F to article III-2 (3) of the Joint Statement which the Committee
agreed to refer to the ad hoe committee mentioned above, which
is to be appointed by the Chairman to consider the other Alterna
tives to this same paragraph.
The Committee discussed briefly Alternative E (p. 6d), pro
posed as an addition to article III, section 2 of the Joint State
ment. It will continue the discussion of this Alternative at its
next meeting.

Document 141
C l/ 3 / M3

Minutes of Meeting of Committee 3 of Commission I
O rg a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(Jul y 5, 1944, 4 p.m.)

At its third meeting, held on July 5 at 4 p.m., Committee 3 of
Commission I decided to defer action and further consideration
of article VII, section 2, Alternatives A and B, relating to the
executive directors, until new drafts would be submitted by various
members for the sections in controversy. The Committee pro
ceeded to consider article VII, section 3, voting in the board of
governors. After extended debate it was agreed to accept in prin
ciple the first paragraph providing for a number of votes to be
assigned to each country by virtue of its membership, in addition
to the votes proportional to quotas. No decision was taken on the
number of 250 votes per country until more information about
the quotas becomes available.
The Committee discussed, at considerable length, the implica
tions of the second paragraph of article VII, section 3, providing
for the reduction of votes of members purchasing currency from
the Fund and increasing the votes of members whose currencies
are sold by the Fund. In the discussion it was brought out that
the precise limitations of the use of the proposed provision should
be clarified by redrafting so as to make clear that the special
voting provisions applied only to a few circumstances, e.g., the
waiver by the Fund of the limitations on the annual purchase of
currency by a member country and the prevention of the misuse
of the Fund’s assets. While there was no general agreement,

154

MONETARY AND FINANCIAL CONFERENCE

the weight of opinion seemed to approve of the terms of Alterna
tive A, with perhaps some reduction in the penalty to be applied
to the countries making large purchases of currency from the
Fund.
The third paragraph of the section was accepted. Alternative B
was withdrawn by its supporters, except the portion relating to
the quorum. It was agreed that the quorum should be constituted
by at least half of the member countries and at least two thirds
of the votes.
The last word of the minutes of the meeting of Committee 3 of Com
mission I held on July 4 a t 10:00 a.m. (Doc. 103) should read “votes”
instead of “quotas”.)

(n .b .

Document 142
C I/4 /M 2

Minutes of Meeting of Committee 4 of Commission I
F o rm a n d S ta tu s o f t h e F u n d
(July 5, 1944, 5:30 p.m.)

The second meeting of Committee 4 of Commission I was held
on July 5 at 5:30 p.m. The Chairman announced that the Chair
men of all of the delegations had agreed that there would be no
formal voting in the Committees. The Chair was authorized to
appoint a small “asterisk committee” to which minor questions of
wording and coordination may be referred. In the case of a lack
of agreement on important questions, the lack of agreement will
be reported to the Commission. Approval was obtained permitting
the technical personnel accompanying the delegations to be al
lowed, at the request of the representatives, to express the point
of view of their delegations without entering into debate.
The Committee proceeded with the discussion of article IX, sec
tions 5, 6, and 7, as amended. After considerable discussion and
comments by various delegates, section 5 of article IX was ap
proved as amended by document No. 120 to include the substance
of section 6. There was considerable discussion of section 7, as
amended by document No. 121. The Chairman appointed a sub
committee to review this section further before final approval.
The subcommittee appointed consists of one delegate from Cuba,
Norway, Union of Soviet Socialist Republics, United Kingdom,

PROCEEDINGS AND DOCUMENTS

155

and United States of America, with the delegate of the United
States as Chairman.
In addition to the articles and sections assigned to this Com
mittee in document No. 51, the following matters previously as
signed to Committee 3 of Commission I were also assigned for
discussion at the next meeting of the Committee on July 6:
Article VII—Management of the Fund
Sec. 8—Relationship to other international organizations
Article VIII—Withdrawal from the Fund
Sec. 1—Right of members to withdraw
Sec. 2—Suspension of membership or compulsory withdrawal

Document 143

(p .

14)

SA /1/8

J o i n t S t a t e m e n t —no

provision

The following material has been suggested as an addition to
Alternative A, Article III.
# Section 11. Furnishing Information.
The Fund may require members to furnish it with such in
formation as it deems necessary for its operations. In request
ing information the Fund shall, however, take into considera
tion the ability of individual members to furnish the data asked
for. The minimum amount of information necessary for the due
carrying out of the Fund’s duties includes the following:
1. Official holdings of (a) gold at home and abroad, (b)
gold-convertible currencies distributed by currencies, and
(c) other currencies distributed by currencies, as de
fined for purposes of the Fund.
2. Holdings by banking and financial agencies other than
official agencies of (a) gold at home and abroad, (b)
gold-convertible currencies distributed by currencies, and
(c) other currencies distributed by currencies, as de
fined for purposes of the Fund.
3. Production of gold.
4. Gold exports and imports distributed by countries of
destination and origin.
5. Total exports and imports of merchandise, in terms of
local currency values, distributed by countries of destina
tion and origin.

156

MONETARY AND FINANCIAL CONFERENCE

(p.14a)
6. International balance of payments, including (a) trade
in goods and services, (b) gold movements, and (c) capi
tal transactions.
7. International investment position, i.e., investments with
in the country owned abroad and investments abroad
owned by residents of the country.
8. National income.
9. Price indexes. (Indexes of commodity prices in whole
sale and retail markets and of export and import prices
as available from official sources.)
10. Buying and selling rates for foreign currencies.
11. Exchange controls. (Comprehensive statement of ex
change controls in effect at the time of assuming mem
bership in the Fund and changes thereafter as they
occur.)
12. Where official exchange controls exist, arrearages for
commercial or financial remittances in terms both of
the time lag in remittances and total amounts in arrears
by types of arrearage.
Alternative B
(Substitute for list in A lternative A)

1. Gold holdings of the Central Bank and the Treasury and
their changes.
2. Gold convertible exchange holdings of the Central Bank
and the Treasury.
(p.14b)
3. Movement of capital.
4. Foreign trade data.
5. Other items of the balance of payments.
6. Rates of exchange and their changes.
7 /6 /4 4

J.S. Art. Ill
A d d itio n a l Section (11)

Document 144

(p* 9a)

s a / i /9

A l t e r n a t iv e B
(Substitute for Joint Statem ent III, 5)

So long as a member country is entitled to buy another mem

PROCEEDINGS AND DOCUMENTS

157

ber’s currency from the Fund in exchange for its own currency
it shall be prepared to buy its own currency from that member
with that member's currency or with gold and silver. In the latter
case the proportion of the silver shall not exceed a percentage
corresponding to that in which silver was used by the member
country in subscribing its quota. This shall not apply to currency
subject to restrictions in conformity with IX, 3 below, or to hold
ings of currency which have accumulated as a result of transac
tions of a current account nature effected before the removal by
the member country of restrictions on multilateral clearing main
tained or imposed under X, 2 below.
7 /5 /4 4

J.S. Art. Ml
Sec. 5

Document 145

(P- 2b)

S A / i/ io

A l t e r n a t iv e C
(Substitute for Joint Statement II, 1)

Member countries shall subscribe in gold and in their local
currencies amounts (quotas) to be agreed, up to a total of $10
billions (for the world as a whole) or $8 billions (for all the
United and Associated Nations). Member countries may subscribe
part of their quotas, as per 3 below (Alternative D, page 4b)', in
silver.
7 /5 /4 4

J.S. Ar*. II

See. 1

Document 146

(p. 4b)

S A / i/ ii

A l t e r n a t iv e D
(Substitute for Joint Statement II, 3)

The obligatory gold subscription of a member country shall be
fixed at 25 percent of its quota or 10 percent of its holdings of
gold and gold convertible exchange, whichever is the smallest.
The remaining 75 percent shall be subscribed in local currencies
or, if a member nation so wishes, in silver and its local currency
in a proportion to be agreed upon in each individual case.
7 /5 /4 4

J.S. Art. II
Sec, 3

158

MONETARY AND FINANCIAL CONFERENCE
Document 147

(P -6 c )

SA /1 /1 2

A lte rn a tiv e

(Substitute in A lternative A of A rt. Ill, Section 2 for paragraph (3))

(3) The total holdings of the Fund in the currency of the member
initiating the purchase (after having been brought up, if
below that figure, to the value of the quota of such member)
have not increased during the previous twelve months by
more than twenty-five percent of the quota of such member
and do not exceed two hundred percent of the quota; and
7 /5 /4 4

J.S. Art. Ill
Sec. 2

Document 148

(p .lie )

SA/1/13
A lte rn a tiv e

(Substitute for Joint Statement III, 7 (a ), (b), and ( c ) )

The Fund may also acquire gold and silver from member coun
tries in accordance with the following provisions:
(a) A member country may repurchase from the Fund for gold
and silver, as per III, 5 (Alternative B, page 10a) above,
any part of the latter’s holdings of its currency.
(b) So long as a member's holding of gold, gold-convertible ex
change and silver exceed its quota, the Fund in selling foreign
exchange to that country shall require that one-half of the
net sales of such exchange during the Fund's financial year
be paid for with gold.
(c) If at the end of the Fund’s financial year a member’s holdings
of gold, gold-convertible exchange and silver have increased,
the Fund may require up to one-half of the increase to be
used to repurchase part of the Fund’s holdings of its currency
so long as this does not reduce the Fund’s holdings of a coun
try’s currency below 75 percent of its quota or the member’s
holdings of gold, gold-convertible exchange and silver below
its quota.
7/5/44

J.S. Art. Ill
Sec. 7

PROCEEDINGS AND DOCUMENTS

159

Document 149

(p. 10a)

sa/ 1/14
A l t e r n a t iv e B
(Substitute for Joint Statement III, 6)

A member country desiring to obtain, directly or indirectly, the
currency of another member country for gold and silver is ex
pected, provided that it can do so with equal advantage, to acquire
the currency by the sale of gold and silver to the Fund. This shall
not preclude the sale of newly mined gold and silver in any market.
7 /5 /4 4

J.S. Art. Ill
Sec. 6

Document 150

( p. 25g)

SA/1/15
A l t e r n a t iv e D
(Substitute for Joint Statem ent VII, 1)

(b) There shall be 12 Executive Directors of whom 5 shall
be appointed by the members having the five largest quotas,
3 by the members having the six next largest quotas, and 4 by
the other members. In the balloting for the seats allowed
to each of the last two categories, each member eligible
to vote in that category shall cast for one director all the
votes to which he is entitled and the directors receiving the
greatest number of votes shall be Executive Directors.
The members so chosen shall have the power of appointment
of directors for two years; at the end of this period any of the
members may be chosen again or other members may be chosen.
The persons chosen as Executive Directors need not be Gov
ernors. The Executive Directors shall meet not less than once
every three months.
7 /5 /4 4

J.S. Art. V II
Sec. 1

Document 151

(p. 25d)

/ i /1 6

A l t e r n a t iv e C

(a)
The Board of Governors shall appoint an Executive
Committee.

160

MONETARY AND FINANCIAL CONFERENCE

The Executive Committee shall conduct all of the business of the
Fund delegated to them by the Board of Governors.
(b) Formation of the Executive Committee.
The Executive Committee shall consist of fourteen Executive
Directors appointed as follows:
1. Five Directors representing each one of the five member
countries having the largest quotas in the Fund.
2. Three Directors representing the member countries in the
economic area of the British Empire.
3. Three Directors representing the member countries in the
economic area of the American Republics.
4. Three Directors representing the member countries in all
other economic areas.
Each Director shall have an alternate appointed in the same
manner. Executive Directors and their alternates need not be
Governors and may be reappointed.
(c) Method of Election of the Executive Committee.
The five Executive Directors of the five member countries having
the largest quotas in the Fund shall be appointed directly by each
one of such member countries and shall continue to serve for an
indefinite period, subject to the pleasure of their respective Gov
ernments.
The remaining nine Executive Directors shall be chosen by
the Board of Governors every year at its Annual meeting by
separate elections in which all the governors of the respective
economic areas shall participate, except those governors repre
senting member countries holding permanent seats in the Execu
tive Committee.
7 /5 /4 4

J.S. Art. V II
Sec. 1

(p. 25e) Each governor, in the respective economic area to
which his member country belongs, shall be entitled to cast ex
clusively for one Executive Director all of the votes to which his
member country is entitled according to the rules of voting of
Section 3 of this Article. The three persons receiving the highest
number of votes shall be considered elected, provided, however,
that no Executive Director shall be considered elected at the first
ballot who has not received at least one-third of all the votes of the
participating countries, of his respective economic area.
If at the first balloting of the respective economic areas all three
Directors should not have been elected according to the application
of the preceding rules, then a second balloting shall be held at
which only those governors who voted for a person not elected shall

PROCEEDINGS AND DOCUMENTS

161

be entitled to participate in the second balloting. If at the second
balloting the total number of Directors of the respective area shall
not have been elected, further ballotings shall be taken applying
the same rules until two Directors shall have been so elected. The
third Director may then be elected by a simple majority vote.
The above procedure shall be equally applicable to the election
of alternate Executive Directors.
(d) Meetings of the Executive Committee.
The Executive Committee shall meet as often as the business of
the Fund may require. The Executive Committee may also decide
to hold regular meetings at stated periods to consider questions
of general policy of the Fund and to prepare the agenda for the
annual meeting of the Board of Governors.
The General Manager of the Fund shall act as Chairman of
the Executive Committee, but shall have no vote.
7 /5 /4 4

J,S. Art. V II
Sec. 1

(p. 25f) In order to constitute a quorum for the meetings of
the Executive Committee there must be present not less than seven
Directors representing not less than one-half of the total voting
power of the Executive Directors.
Whenever a member country not having a national among the
Executive Directors may have requested action or will be directly
affected by a decision of the Executive Committee, such member
country shall be entitled to have a representative present at the
meeting when such request or decision is to be considered, but
such representative shall not be entitled to vote.
(e) Decisions of the Executive Committee.
Resolutions of the Executive Committee shall be adopted by
the favorable vote of the majority of Directors attending the meet
ing, provided, however, that in the said voting there should also
concur a majority of the voting power represented by each Director
according to Section 3.
For the purpose of computing their voting power under Section
3, the Director representing an economic area on the Executive
Committee shall be entitled to represent and cast the accumulated
number of votes of the member countries that voted for him in
his area.
(f) The Executive Committee shall appoint the General Man
ager of the Fund, and shall determine his duties and powers.
The Executive Committee may also appoint such committees
as they deem advisable. Membership of such committees need not
be limited to governors, directors and alternates.

162

MONETARY AND FINANCIAL CONFERENCE

The General Manager and the Executive Directors shall be
compensated by the Fund in an amount fixed by the Board of
Governors.
7 /5 /4 4

J.S. Art. V II

Sec. 1

Document 152

(p. 26)

SA/1/17

C o m b in e d A l t e r n a t iv e s A a n d B f o r J o in t S t a t e m e n t
V I I 1, 2 , a n d 3 , a n d A d d it io n a l M a t e r ia l o n
P ag e 2 7 o f D o c u m e n t S A /1

1. The Executive Directors shall be responsible for the con
duct of the general operations of the Fund, and for this
purpose, shall exercise all the powers delegated to them by
the board of Governors.
2. There shall be eleven Executive Directors, of whom five shall
be appointed by the five members having the largest quotas
and six shall be elected biennually, in accordance with the
provisions of Schedule B, by all the Governors other than
those appointed by the members having the five largest quotas.
Persons chosen as Executive Directors need not be Governors.
3. Every Executive Director may appoint an alternate with full
power to act for him when he is not present. When the Execu
tive Directors appointing them are present, alternates may
participate in meetings but shall not vote.
4. The Executive Directors shall be in continuous session at the
principal office of the Fund.
5. In order to constitute a quorum for any meeting of the Ex
ecutive Directors, there must be present a majority of the
Directors representing not less than one-half of the Voting
power of all the Executive Directors.
6. Each Executive Director appointed by one of the members
with the five largest quotas shall be entitled to cast the num
ber of (p. 26a) votes alloted under Section 3 of this Ar
ticle (J.S. VII, 2) to the member appointing him. Each
elected Executive Director shall be entitled to cast only the
number of votes which actually count toward his election.
When the provisions of the second paragraph of Section 2
of this Article are applicable, the votes to which an Executive

PROCEEDINGS AND DOCUMENTS

163

Director would otherwise be entitled shall be increased or
decreased proportionately. Each Executive Director shall cast
all of the votes to which he is entitled as a single unit.
7. The Board of Governors shall make regulations containing
provisions under which a member which is not entitled to
appoint an Executive Director under 2 above shall be per
mitted to send a representative to attend any meeting of the
Executive Directors when a request made by, or a matter
particularly affecting, that member is under consideration.
8. The Executive Directors shall appoint a Managing Director
who shall not be a Governor or an Executive Director. The
Managing Director shall be Chairman of the Executive
Directors, but shall have no vote except a casting vote in
case of an equal division. He may participate in meetings of
the Board of Governors, but shall not vote at such meeting. He
shall, however, be eligible for election as Chairman of the
Board of Governors. The Managing Director shall hold office
at the pleasure of the Executive Directors.
(p.26b)
9. The Managing Director shall be chief of the operating staff
of the Fund and shall conduct under the direction of the
Executive Directors, the ordinary business of the Fund's
work. Subject to the general control of the Executive Di
rectors, he shall be responsible for the internal organization
of the Fund's staff and the appointment and dismissal of its
staff. The Managing Director shall be responsible to the Ex
ecutive Directors for the accounts.
10. The Executive Directors may appoint such committees as they
deem advisable. Members of such committees need not be lim
ited to Governors or Executive Directors or their alternates.
11. The Board of Governors shall determine the remuneration
to be paid to the Executive Directors and the salary and
terms of service of the Managing Director.
SCHEDULE B

(a) In balloting for the elective Executive Directors, each
governor eligible to vote shall cast for one person all of the votes
to which he is entitled under the first paragraph of Section 3 of
this article (J.S. VII, 2). The six persons receiving the greatest
number of votes shall be Executive Directors, except that no
person who receives less than sixteen percent of the aggregate
eligible votes shall be considered elected.
(p. 26c) (b) When six persons are not elected on the first bal
lot, a second ballot shall be held in which the person receiving the

164

MONETARY AND FINANCIAL CONFERENCE

lowest number of votes shall be ineligible for election and in
which there shall vote only those governors who voted on the first
ballot for a person not elected and those governors all or part of
whose votes for a person elected are deemed to have raised the
votes cast for that person above seventeen percent of the aggregate
eligible votes.
(c) In determining whether any part of the votes cast by a
governor are to be deemed to have raised the total of any person
above seventeen percent, there shall be considered as not forming
part of the excess over seventeen percent the votes of the governor
casting the largest number of votes for such person, then the
votes of the governor casting the next largest number, and so on
until the total reaches seventeen percent.
(d) Any governor whose votes are partly not in excess and
partly in excess shall be eligible to vote in the second balloting
only to the extent of the votes in excess.
(e) If on the second ballot, six persons have not been elected,
further ballots shall be taken on the same principles until six
persons have been elected, provided that after five persons are
elected, the sixth may be elected by a simple majority of the re
maining votes and shall be deemed to have been elected by all
such votes.

Document 153
D P /5

Egyptian Delegation

Memorandum to be Submitted to Commission T
(Committee 2)
Paragraph IV, 1 of the Joint Statement lays down that “The
par value of a member’s currency---- shall be expressed in terms
of gold.”
This statement lacks precision. It fails to indicate the date on
which the expression is to take place, an important point, since
the value of gold varies from day to day, and the place at which
the gold is situated, in terms of which the currency is to be
valued. This also is important, for a kilogram of gold in New York
has not the same value as a kilogram of gold in London, in
Pretoria, in Bombay or in Cairo.

PROCEEDINGS AND DOCUMENTS

165

Difficulties are bound to arise, unless this ambiguity is removed,
as it can be removed by setting up an international standard of
value, which, it is suggested should be that of 10 (ten) grams of
fine gold at the seat of the Fund as of a date to be agreed.
It is suggested that this international unit of value be called
the val, with subdivision decimally into millivals (thousandths)
and multiples, kilovals (thousands) and megavals (millions).
It is further suggested that the value be expressed in terms of
gold, through the definition
“The price of ten grams of fine gold at the central
seat of the Fund, on (an agreed date) shall be one val.”
The possibility of such changes as have been mentioned above
seems to be envisaged in IV, 5 of the Joint Statement, which pro
vides for a uniform change in the gold value of member currencies.
In the suggested plan, such a change would be made by a modifica
tion of the defined price of ten grams of gold, in terms of vals.
It is submitted that the institution of some such international
unit of value will be found ultimately to be necessary, in order to
facilitate accounting, the expression of currencies in terms of gold,
and the expression of currencies in terms of each other, to serve,
in fact, as a common denominator of value. Its institution is in
line with the adoption of international measures of length, weight,
electrical units and so forth.
The introduction of an international unit into both the plans
associated with the names of Mr. White and Lord Keynes was
based on sound principles, although exception may be taken to
the particular units there devised, (p. 2) The amount, 10 grams,
is suggested because it links the international currency decimally
to the C.G.S. system already adopted for so many international
purposes. Its magnitude gives a convenient size to the unit, namely,
approximately $11,253 or 54.013 shillings, and the millival, about
iy& cent, is not very different from the cent, which is roughly
the lowest unit of value used in commercial accounting. (If lower
submultiples should be required for special purposes, there is no
difficulty in subdividing further decimally).
The following resolution is therefore recommended:
“An international unit of value shall be instituted. This inter
national unit shall be denominated one VAL. The val shall be
subdivided and multiplied decimally. The value of the val shall
be expressed in terms of gold by the definition:
‘The price of ten grams of fine gold at the central seat of the
Fund as of (a date to be agreed) shall be one VAL.’ ”

166

MONETARY AND FINANCIAL CONFERENCE
Document 156
G D /1 9

Representation of Delegations on Commissions
and Committees
This prelim inary list is based on inform ation available to the Secre
ta ria t at the time of typing. Please send corrections or additions to the
Secretary General, Room 136, immediately.)

(N o te:

C o m m issio n I

Chairman—Harry D. White (U.S.A.)
Vice Chairman—Rodolfo Rojas (Venezuela)
Reporting Delegate—L. Rasminsky (Canada)
Secretary—Leroy D. Stinebower
Assistant Secretary—Mrs. Eleanor Lansing Dulles
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Camille Gutt
BOLOVIA
No designation
BRAZIL
No designation
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch
D.
C. Abbott
J. A. Blanchette
CHILE
No designation
CHINA
Tingfu F. Tsiang
COLOMBIA
Carlos Lleras Restrepo
COSTA RICA
Luis D. Tinoco Castro
Jose Rafael Oreamuno
CUBA
No designation

CZECHOSLOVAKIA
Ladislav Feierabend
Jan Mladek
Antonin Basch
Josef Hanc
Ervin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
No designation
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Augustin Alfaro Moran
ETH IO PIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos ,
Alexander Argyropoulos
GUATEMALA
Manuel Noriega Morales

(P. 2 )
HA ITI
Pierre Chauvet
HONDURAS
Julian R. Caceres

NORWAY
Wilhelm Keilhau
Ole Colbjornsen
A*rne Skaug

PROCEEDINGS AND DOCUMENTS
ICELAND
Magnus Sigurdsson
INDIA
Sir A. J. Raisman
IRAN
Abol H asan Ebtohaj
Hosein Navab
Taghi N assr
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Lumb
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Antonio Espinosa de los
Monteros
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
H. Riemens
J. J. Polak
C. H. Schoch
A. Broches
NEW ZEALAND
W alter Nash
B. C. Ashwin
B. R. T urner
A. G. B. Fisher
E. C. Fussell
NICARAGUA
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
Leon DeBayle

PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Pedro G. Beltran
Juvenal Monge
Emilio Barreto
PH IL IPP IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael Mathay
POLAND
Leon Baranski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
No designation
UNITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n I

Committee 1
Chairman—Dr. Tingfu F. Tsiang (China)
Reporter—Kyriakos Varvaressos (Greece)
Secretary—W. A. Brown
Assistant Secretary—J. P. Young
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron Rene Boel
7 4 9 0 1 3 — 48— 12

167

EL SALVADOR
Augustin Alfaro Moran
Raul Gamero C.
Victor Manuel Valdes
ETHIOPIA
B latta Ephrem Medhen

168

MONETARY AND FINANCIAL CONFERENCE

BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
CHILE
Luis Alamos Barros
CHINA
Te-Liang Soong
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Ramiro Guerra y Sanchez
Eduardo D urruthy
CZECHOSLOVAKIA
Ja n Mladek
Antonin Basch
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. D uran Ballen
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

FREN CH DELEGATION
A. Istel
J. de Largentaye
R. Mosse
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
A. Asgeirsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A. D. Shroff
IRAN
No designation
IRAQ
No designation
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

P H IL IP P IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
S. Kirkor
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. P. Morozov
F.
P. Bystrov
P. Titov
N. Ivanov
UNITED KINGDOM
Lionel Robbins
A, W. Snelling

PROCEEDINGS AND DOCUMENTS
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Juan Chavez
Emilio Barreto

UNITED STATES OF AMERIC
No designation
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
Rodolfo Rojas
Cristobal L. Mendoza
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar
C o m m is s io n

Committee 2
Chairman—N. A. Maletin (U.S.S.R.)
Vice Chairman—W. -A. Mackintosh (Canada)
Reporter—Robert Mosse (French Delegation)
Secretary—Karl Bopp
Assistant Secretary-—
Miss Alice Bourneuf
AUSTRALIA
EL SALVADOR
Leslie G. Melville
Agustin Alfaro Moran
James B. Brigden
Raul Gamero C.
Frederick H. Wheeler
Victor Manuel Valdes
A rthur H. Tange
ETHIOPIA
BELGIUM
George A. Blowers
Georges Theunis
FRENCH DELEGATON
BOLIVIA
A. Istel
No designation
J. de Largentaye
BRAZIL
R. Mosse
Francisco Alves dos Santos Filho GREECE
CANADA
Kyriakos Varvaressos
L. Rasminsky
GUATEMALA
W. A. Mackintosh
Manuel Noriega Morales
HAITI
J. J. Deutsch
CHILE
P ierre Chauvet
German Riesco
HONDURAS
CHINA
No designation
Tsu-Yee Pei
rCELAND
COLOMBIA
S. Frimannsson
INDIA
No designation
COSTA RICA
Sir A. J. Raisman
No designation
Sir Theodore E. Gregory
CUBA
Sir Shanmukham Chetty
Sir Chintaman D. Beshmukh
Garcia Montes
A. D. Shroff
Eduardo D urruthy
IRAN
CZECHOSLOVAKIA
No designation
Antonin Basch
IRAQ
Ja n Mladek
No designation
DOMINICAN REPUBLIC
LIBERIA
Anselmo Copello
James F. Cooper
J. R. Rodriguez

169

170

MONETARY AND FINANCIAL CONFERENCE
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

ECUADOR
E.
F. Carbo
S. E. Duran Ballen
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
(P . 2 )
NETHERLANDS
D. Crena de Iongh
A. Andriesse
A. Bestebreurtje
J. J. Polak
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. Turner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
Ole Colbjornsen
Arne Skaug
Kaare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Juvenal Monge
Emilio G. B arreto
PH IL IPPIN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
Zygmunt Karpinski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Maletin
A.
Smirnov
L. Andreev
M. Chekmarev
N. Kuznetzov
UNITED KINGDOM
D. H. Robertson
G. F. Bolton
H. E. Brooks
UNITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
Rodolfo Rojas
J. J. Gonzalez Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m issio n I

Committee 3
Chairman—Dr. de Souza Costa (Brazil)
Reporter—Dr. Ervin Hexner (Czechoslovakia)
Secretary—Malcolm Bryan
Assistant Secretary—J. H. Bitterman
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange

EL SALVADOR
Augustin Alfaro Moran
Raul Gamero C.
Victor Manuel Valdes;

PROCEEDINGS AND DOCUMENTS
BELGIUM
Camille Gutt
BOLIVIA
No designation
BRAZIL .
Valentim Boucas
CANADA
J. J. Deutsch
J. A. Blanchette
D. C. Abbott
CHILE
A rturo Maschke Tornero
CHINA
Te-Mou Hsi
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Luis Machado
Manuel Menocal
CZECHOSLOVAKIA
Ervin Hexner
Josef Hanc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. Duran Ballen
E. F. Carbo
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
(p . 2 )
NETHERLANDS
J. W. Beyen
C.
H. Schoch
NEW ZEALAND
A. G. B. Fisher
E. C. Fussell
B. C. Ashwin
B. R. Turner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
Arne Skaug
Ole Colbjornsen
K aare Petersen

171

ETH IO PIA
George A. Blowers
FRENCH DELEGATION
J. de L argent aye
R. Aglion
GREECE
Alexander Argyropoulos
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
No delegation
ICELAND
M. Sigurdsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A.
D. Shroff
IRAN
No designation
IRAQ
No designation
LIBERIA
W alter F. Walker
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

POLAND
Janusz Zoltowski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
Slobin
M. Idashkin
N. Cheklin
UNITED KINGDOM
Sir W ilfred Eady
W. E. Beckett
G. L. F. Bolton
R. T. G. Miles

172

MONETARY AND FIN A N C IA L CO N FEREN CE

PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Andres F. Dasso
P H IL IP P IN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay

UNITED STATES OF AMERIC
No designation
URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
J. J. Gonzalez Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

I
Committee 4
Chairman—Manuel B. Llosa, Peru
Vice Chairman—
Reporter—Wilhelm Keilhau, Norway
Secretary—John Fuqua
Assistant Secretary-—Colonel Charles M. Dyson
C o m m is s io n

AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Joseph Nisot
BOLIVIA
No designation
BRAZIL
Octavio Bulhoes
CANADA
D. C. Abbott
A. F. W. Plum ptre
J. A. Blanchette
CHILE
Fernando Mardones R estat
CHINA
Victor Hoo
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Felipe Pazos
Miguel Perez
CZECHOSLOVAKIA
Josef Hanc
Ervin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodrigues

EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Agustin A lfaro Moran
Raul Gamero C.
Victor Manuel Valdes
ETH IO PIA
B latta Ephrem T. Medhen
FREN CH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
A thanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
Sir Chintaman D. Deshmukh
Sir Theodore E. Gregory
IRAN
No designation
IRAQ
No designation

PROCEEDINGS AND DOCUMENTS
ECUADOR
Sixto E. Duran Ballen .
Esteban F. Carbo
(p . 2 )
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
A. H. Philipse
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fisher
B. R. Turner
NICARAGUA
Leon DeBayle
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
NORWAY
Wilhelm Keilhau
Ole Colbjornsen
Kaare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Manuel B. Llosa
Juvenal Monge
Emilio B arreto Latzeh

LIBERIA
William E. Dennis

P H IL IP PIN E COMMONWEALTH
Jaim e Hernandez
Ismael Mathay
POLAND
Leon Baranski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutinian
F.
Bystrov
N. Panchenko
UNITED KINGDOM
Nigel Bruce Ronald
William E. Beckett
UNITED STATES OF AMERICA
No designation
URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
Cristobal C. Mendoza
Alfonso Espinoza
Manuel Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n

Chairman—Lord Keynes (U.K.)
Vice Chairman—Luis Alamos Barros (Chile)
Reporting Delegate—Georges Theunis (Belgium)
Secretary—A. Upgren
Assistant Secretary—A. Smithies
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation

173

FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos
Athanase Sbarounis

174

MONETARY AND FINANCIAL CONFERENCE

BRAZIL
No designation
CANADA
L. Rasminsky
W. A. Mackintosh
A. F. W. Plum ptre
J. J. Deutsch
CHILE
No designation
CHINA
Yee-Chung Koo
COLOMBIA
Miguel Lopez Pum areje
COSTA RICA
Francisco de P. Gutierrez Ross
Jose Rafael Oreamuno
CUBA
No designation
CZECHOSLOVAKIA
Ladislav Feierabend
Antonin Basch
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
No designation
EGYPT
No designation
EL SALVADOR
No designation
ETH IO PIA
George A. Blowers

GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
Julian R. Caceres
ICELAND
Magnus Sigurdsson
INDIA
Sir A. J. Raisman
IRAN
Taghi N assr
A. H. Ebtehaj
A. A. D aftary
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Lumb
LIBERIA
Jam es E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Daniel Cosio Villegas
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
A. H. Philipse
A. Andriesse
A. Bestebreurtje

(p. 2)
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. T urner
NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
Ole Colbjernsen
Wilhelm Keilhau
Arne Skaug
PANAMA
Guillermo Arango
Narciso E. Garay

PH IL IPP IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael M athay
POLAND
Ludwik Grosfeld
UNION OF SOUTH AFRICA
M. H. de Kock
J. E. Holloway
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
No designation
UNITED KINGDOM
No designation
U NITED STATES OF AMERICA
No designation

PROCEEDINGS AND DOCUMENTS
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Andres F. Dasso
Juvenal Monge

URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar
C o m m is s io n

Committee 1
Chairman—Representative of Netherlands
Reporter—Representative of Costa Rica
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron Rene Boel
BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
No designation
CHILE
Luis Alamos
CHINA
Te-Mou Hsi
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Ramiro Guerra
Eduardo D urruthy
CZECHOSLOVAKIA
Ervin Hexner
Jan Mladek
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
No designation

FRENCH DELEGATION
A. Istel
J. de Largentaye
R. Mosse
GREECE
K. Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Andre Liautaud
HONDURAS
No designation
ICELAND
A. Asgeirsson
INDIA
Sir Chintaman D. Deshmukh
IRAN
No designation
IRAQ
No designation
LIBERIA
James E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
J. W. Beyen
A. H. Philipsc
J. J. Polak
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. Turner

175

176

MONETARY AND FINANCIAL CONFERENCE

EL SALVADOR
No designation
ETH IO PIA
B latta Ephrem T. Medhen

NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle

(P- 2)
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Andres F. Dasso
Juvenal Monge
Emilio G. Barreto
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
Leon Baranski

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
Morozov
£ . Bystrov
P. Titov
U NITED KINGDOM
No designation
U N ITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
V ENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n

Committee 2
Chairman—Representative of Cuba
Reporter—Representative of Australia
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Georges Theunis
BOLIVIA
No designation
BRAZIL
Francisco Alves dos
Santos Filho
CANADA
No designation
CHILE
German Riesco
CHINA
Tsu-Yee Pei
COLOMBIA
No designation
COSTA RICA
No designation

EL SALVADOR
No designation
ETH IO PIA
George A. Blowers
FREN CH DELEGATION
Andre Istel
Robert Mosse
Jean de Largentaye
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Sveinbjorn Frimannsson
INDIA
No designation
IRAN
No designation

PROCEEDINGS AND DOCUMENTS
IRAQ
No designation
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
D. Crena de Iongh
A. Andriesse
A. Bestebreurtje

CUBA
Garcia Montes
Eduardo D urruthy
CZECHOSLOVAKIA
Ja n Mladek
Antonin Basch
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
No designation
(P. 2)
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. Turner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Juvenal Monge
PH IL IP PIN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
Leon Baranski
UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Chechulin
A. Smirnov
A.
Borisov
Mrs. L. Gouseva
U NITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n II

Committee 3
Chairman—Representative of Brazil
Reporter—Representative of Peru
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange

177

ETH IO PIA
George A. Blowers
FRENCH DELEGATION
J. de Largentaye
R. Aglion

178

MONETARY AND FINANCIAL CONFERENCE

GREECE
BELGIUM
Alexander Argyropoulos
B.
S. Chlepner
Kyriakos Varvaressos
BOLIVIA
No designation
GUATEMALA
BRAZIL
Manuel Noriega Morales
Francisco Alves dos Santos Filho HAITI
Andre Liautaud
CANADA
No designation
HONDURAS
No designation
CHILE
ICELAND
A rturo Maschke Tornero
CHINA
M. Sigurdsson
INDIA
Ts-Liang Soong
No designation
COLOMBIA
IRA N
No designation
No designation
COSTA RICA
IRAQ
No designation
No designation
CUBA
LIBERIA
Luis Machado
W alter E. Walker
Manuel Menocal
LUXEMBOURG
CZECHOSLOVAKIA
Hugues Le Gallais
Antonin Basch
MEXICO
E rnest Sturc
No designation
DOMINICAN REPUBLIC
NETHERLANDS
Anselmo Copello
J. W. Beyen
J. R. Rodriguez
ECUADOR
H.
Riemens
NEW ZEALAND
S. E. Duran Ballen
A. G. B. Fisher
E. F. Carbo
EGYPT
E. C. Fussell
No designation
C. B. Ashwin
EL SALVADOR
B. R. T urner
No designation
<p.2)

NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Ju an Chavez
PH IL IPP IN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay
POLAND
Janusz Zoltowski

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
I. Slobin
M. Idashkin
N. Cheklin
UNITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation
URUGUAY
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

PROCEEDINGS AND DOCUMENTS
C o m m issio n II

Committee 4
Chairman—Representative of India
Reporter—Representative of Poland
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Joseph Nisot
BOLIVIA
No designation
BRAZIL
Valentim Boucas
CANADA
No designation
CHILE
Fernando Mardones R estat
CHINA
Kuo-Ching Li
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Felipe Pazos
Miguel Perez
CZECHOSLOVAKIA
Josef Hanc
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
Sixto E. Duran Ballen
Esteban F. Carbo
EGYPT
No designation
EL SALVADOR
No designation
ETH IO PIA
B latta Ephrem T. Medhen
(P. 2 )
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay

FRENCH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
Athanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manual Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
No designation
IRAN
No designation
IRAQ
No designation
LIBERIA
James F. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
C. H. Schoch
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fisher
B. R. Turner
NICARAGUA
J. Jesus Sanchez Roig
Leon DeBayle
Guillermo Sevilla Sacasa

UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutinian
F. Bystrov
N. Panchenko

179

180

MONETARY AND FINANCIAL CONFERENCE

PARAGUAY
No designation
PERU
Manuel B. Llosa
Alberto Alvarez Calderon
PH IL IP P IN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay
POLAND
Stanislaw Kirkor
UNION OF SOUTH AFRICA
No designation

U N ITED KINGDOM
No designation
U N ITED STATES OF AMERICA
No designation
URUGUAY
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m ission IQ

Chairman—Eduardo Suarez (Mexico)
Vice Chairman—Mahmoud Saleh El Falaky (Egypt)
Reporting Delegate—A. G. B. Fisher (New Zealand)
Secretary—0. Schmidt
Assistant Secretary—L. Casaday
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Baron de Gruben
. BOLIVIA
No designation
BRAZIL
Valentim Boucas
Eugenio Gudin
Octavio Bulhoes
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch
CHILE
Luis Alamos
German Riesco
A rturo Maschke Tornero
Fernando Mardones R estat
CHINA
Kuo-Ching Li
COLOMBIA

Sr, Victor Dugand

ECUADOR
No designation
EGYPT
No designation
EL SALVADOR
No designation
ETH IO PIA
B latta Ephrem T. Medhen
FREN CH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
GREECE
Kyriakos Varvaressos
Alexander Argyropoulos
A thanase Sbarounis
GUATEMALA
Manual Noriega Morales
H A ITI
Andre Liautaud
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
Asgeir Asgeirsson
INDIA
No designation

PROCEEDINGS AND DOCUMENTS
COSTA RICA
Fernando Madrigal
J. Rafael Oreamuno
CUBA
Manuel Menocal
Garcia Montes
CZECHOSLOVAKIA
Ladislav Feierabend
Ervin Hexner
Antonin Basch
Josef Hanc
Ja n Mladek
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
(P. 2 )
MEXICO
Eduardo Suarez
Rodrigo Gomez
Victor Urquidi
NETHERLANDS
J. W. Beyen
D.
Crena de Iongh
NEW ZEALAND
W alter Nash
Bernard Carl Ashwin
Edward C. Fussell
Bruce R. Turner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Pedro G. Beltran
Andres F. Dasso
Alberto Alvarez Calderon
Juvenal Monge

181

IRAN
A. A. D aftary
Hosein Navab
IRAQ
Senator Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
Claude E. Lumb
LIBERIA
W alter F. Walker
LUXEMBOURG
Hughes Le Gallais

P H IL IPPIN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael Mathay
POLAND
Leon Baranski
UNION OF SOUTH AFRICA
S. F. N. Gie
J. E. Holloway
. M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I. D. Slobin
M. M. Idashkin
N. I. Cheklin
UNITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

182

MONETARY AND FINANCIAL CONFERENCE
Document 157
D P /6

Address Delivered Before Committee 2 of Commission I,
by Antonio Espinosa de los Monteros, Mexican Delegate,
in Support of Mexico’s Proposal on Silver, on July 5,
at 6:30 p.m.
M ist e r C h a ir m a n , F ello w D eleg a tes :

On behalf of the Mexican Delegation I want to explain why we
are making this proposal.
It is easy to misunderstand our position. Mexico produces 40%
of all the silver. Therefore, one could think, Mexico is interested,
above all, in furthering the interests of her mining industry.
However, we do not come before this High Assembly of Nations
as the largest producers of silver. Certainly nobody could believe
that the gold-producing nations are represented here to further
their own interests. Rather, we are all here to present our com
mon monetary problems, and to seek an agreement on how to
meet them in the brotherly spirit of cooperation.
We wish to emphasize, then, that Mexico wants to present to
your consideration a strictly monetary problem. We believe that
this problem has international implications, undoubtedly small in
economic significance for the world as a whole, but certainly large
and vital for some members of the community of nations. Further
more, we are certain that this problem has never received the un
prejudiced consideration it deserves by the nations which do not
have to face the same difficulties.
Mexico’s problem derives from the fact that her people con
tinue to hoard large amounts of silver coins. They, of course,
have been doing that for centuries. They know not as yet any of
the great advantages of savings banks and fiduciary currencies.
Nor do they seem to be very anxious to learn about them. When
they can they hoard silver and nothing else, probably because all
their ancestors have always done so, and certainly because their
personal income does not permit them to hoard gold.
Because of this fact, Mexicans absorb large quantities of silver
coins when their income is increasing, and return them to the
Central Bank when they have to draw on their savings. This
simply means that our Central Bank has to invest heavily in silver,
during the upward swing of the trade cycle when the price of
silver is naturally higher. On the other hand, the Bank is com
pelled to cash it in foreign markets, during the downward swing,

PROCEEDINGS AND DOCUMENTS

183

exactly when silver is cheaper. Thus, our Central Bank loses
not only the difference between the buying and selling prices,
but also the recurrent minting and melting costs.
Therefore, it is evident that because of the hoarding require
ments of our people, Mexico has to invest in silver a large part of
her international balances of gold and gold-convertible currencies
when her balance of payments is favorable. But when the situation
is (p. 2 ) reversed, she has to sell that silver in order to support
the parity of the peso, in the bargain she is always the loser, since
there is no manner in which she can hedge against the fluctua
tions of silver.
This is the essence of Mexico’s problem. Is it not true that many
other Nations partake of this same risk? Is it too much to expect
that the Fund extend credit facilities specially adopted to meet
this special need ? It might be said that the Fund, under the pro
posed provisions, is already authorized to waive all specific con
ditions set forth under Article III, Section 2 of the Draft, precisely
in order to meet exceptional cases. But Mexico's case is not ex
ceptional. Her problem is, we believe, common to several coun
tries, and it is besides recurrent in character. Should not the
Fund, which is essentially an instrument for international coopera
tion, be authorized specifically to extend credit to the silverhoarding countries of the world?
Specifically, then, Mexico is proposing that the Fund shall extend
credits to the silver-hoarding Nations over and above the normal
credits extended by the Fund to all countries. Mexico, further
more, proposes the silver hoarding of her nationals as an adequate
collateral security.
Should the Conference adopt this proposal, henceforth Mexico
and the countries which have the same problem will not have
recurrently to buy and coin silver only to melt and sell it again.
Instead of that wasteful and unnecessary process, whenever a
silver-hoarding country is running short of foreign exchange with
which to maintain the parity of its monetary unit, the Fund would
provide that exchange as a credit, with the understanding that
all the risks due to fluctuation in the price of silver will remain
with the borrowing country.
The Mexican Delegation feels certain that this proposal will be
supported by all the Delegates, inasmuch as the amounts of the
Fund’s resources needed for the purpose will be relatively small,
and adequately safe-guarded, and above all because the approval
of Mexico’s proposal would be an act of elementary international
justice.
749013— 48— 13

184

MONETARY AND FINANCIAL CONFERENCE
Document 161

SA /1/18

Alternative I
(Substitute for Joint Statement I, subdivision 2)
(Proposed as substitute for Alternative C, p. lb)
2.

To facilitate the expansion and balanced growth of interna
tional trade and to contribute thereby to the promotion and main
tenance of high levels of employment and to the development of
the resources and productive power of all member countries, with
due regard to the needs of economically backward countries.
7 /6 /4 4

J.s. Art. I

Document 162
D P /7

Indian Delegation

The following revised amendment to the J o in t S t a t e m e n t I,
Subdivision 2 is proposed by the Indian Delegation:—
A l t e r n a t iv e

To facilitate the expansion and balanced growth of international
trade and to contribute thereby to the promotion and maintenance
of high levels of employment and to the development of the re
sources and productive power of all member countries, with due
regard to the needs of economically backward countries.

Document 164

(P. 18(b))

SA/1/19
A l t e r n a t iv e

* Section 5. Uniform Changes in Par Values.
Notwithstanding the provisions of Section 2 of this Article,
the Fund may make uniform proportionate changes in the par
values of the currencies of all the members, provided each
such change is approved (a) by a majority vote and (b) by
at least one-third of the members, and (c) by every member
which has 10% or more of the aggregate votes. Such uniform
changes shall be excluded from consideration in applying the
provisions of Sections 4(3) and (A) of this Article. (J.S. IV, 4 ).

PROCEEDINGS AND DOCUMENTS

185

Document 166

(p. 16)

S A /l/2 0

J o in t S t a t e m e n t IV , 1.

IV. Par Values of Member Currencies.
1 . The par value of a member’s currency shall be agreed with
the Fund when it is admitted to membership, and shall be ex
pressed in terms of gold. All transactions between the Fund and
members shall be at par, subject to a fixed charge payable by
the member making application to the Fund, and all transactions
in member currencies shall be at rates within an agreed percentage
of parity.

A lte rn a tiv e A

& Section 1. Par Values of the Currencies of Members.
The par value of the currency of each member shall be ex
pressed in terms of gold, as a common denominator, or in terms
of a gold-convertible currency unit of the weight and fineness
in effect on July 1,19kh- All computations relating to currencies
of members for the purpose of applying the provisions of this
Agreement shall be on the basis of their par values.
The provisions of this Section shall apply to the case in which
a uniform proportionate change is made in the par values of
the currencies of all members, unless at the time when such
a change is proposed to be made the Fund shall declare them
to be inapplicable.
7 /1 /4 4

J.S.Art. IV
Sec. 1

Document 167
D P /8

Statement by Mahmoud Saleh el Falaki, Delegate for
Egypt in Support of Alternative H, Article I,
“Purposes and Policies of the Fund”
Made Before the Meeting of Committee 1 of Commission I
on July 6, 19kU
I venture to say a few words about the question of indebtedness
that has arisen during the war.

186

MONETARY AND FINANCIAL CONFERENCE

Some countries have accumulated large balances in foreign cur
rencies. Owing to the magnitude of those balances, the problem
of realizing them becomes quite difficult.
The repayment of those balances after the war by the debtor
country can be effected only in three ways
(1) Either by exporting more than is imported, when the sur
plus will go to repayment,
(2) Or by allowing the conversion of those balances into other
currencies,
(3) Or by gold or by some combination of these.
As to (1) exports exceeding imports: Here we must allow for
some appreciable time to elapse for the war machine of the
debtor country to be transformed into a “peace machine” before
any appreciable production can be made available, and then
presumably some sort of priorities would have to be adopted to
meet the most urgent needs first.
As to the conversion of the balances into other currencies—
to my mind, the ease of this transfer will to some extent depend
upon what success is achieved in the elaboration of a truly Inter
national Exchange and Trading regime.
As to gold, this will depend upon the stocks available.
What I have been driving at at this stage is to show that there
are great difficulties, we realise those difficulties and we realise
them fully and in the most friendly manner.
However, I beg to differ from the opinion expressed that these
matters should best be the subject of bilateral negotiations.
I also differ from the opinion that some provision for the settle
ment of those debts within the Fund must necessarily bear unduly
upon the Fund. Perhaps the existence, outside the scope of the
Fund of a difficult financial problem unsolved, may react upon the
efficiency of the Fund itself. In fact the Unitas scheme provided
for the liquidation of such assets. The British scheme also made
some sort of indirect provision.
The American proposal was that the Fund should be free to
buy a part of those balances from the creditor country, and
(p. 2 ) pay for them in currencies of other countries to the extent
that the creditor country needs them immediately to meet an ad
verse balance of payments. But if the creditor country is running
a surplus on income account, the scheme would then not apply,
in other words, creditor countries would be entitled to draw upon
its credit balances only in case of an adverse balance of payments.
Repayment by the debtor to the Fund might be postponed for
three years to allow a breathing space.

PROCEEDINGS AND DOCUMENTS

187

After the 3 years the debtor country might repurchase the bal
ances from the Fund, for gold or free currencies, at the rate of 2 per
cent per annum over 20 years. The debtor country was to be re
quired to pay off 80 per cent of the balances in free currency over
20 years. The 20 per cent that would remain after 23 years would
then be the subject of Consultation between the debtor country
and the Fund.
If I understand rightly, the British scheme in proposing to allow
countries to open their account in the Union with an overdraft,
seemed to face the possibility of transferring those credit balances
into other currencies.
The Joint Statement of experts, however, avoided the question
completely, the only explanation given being that it would bear
unduly on the new institution. I firmly believe that if the problem
of indebtedness arising out of the war were completely left out—
it would not only not relieve the Fund, but might possibly weaken
the whole mechanism of the Fund.
I would, therefore, put forward that some sort of provision be
made in the Fund for some sort of arrangement, due account
being taken of the difficulties that are involved and are inherent
in the matter.
The whole thing is important because in Egypt some credit
balances represent depreciation on capital equipment that must
necessarily be replaced after the war—which depreciation would
prevent us from playing our full part in the development and
expansion of both domestic and foreign trade. The expansion of
the latter being the objective of the Fund.
One or two instances may illustrate appropriately our concern:
The productivity of our agricultural land in Egypt has deteriorated
substantially. The yield per acre has fallen and is falling. This
is due partly to lack of imported fertilizers through shipping
space difficulties, and partly also through an unsuitable rotation
of crops dictated and forced upon us by the circumstances of the
war. Our State Railways have suffered from heavy wear and tear
and the impossibility of replacing worn out or damaged stock.
Our industrial plant is suffering from lack of renewals or even
sufficient maintenance. Our auxiliary transport can be said to
be literally running on the rim. This is really why we feel that we
ought to take up the question.
Our productive capacity must therefore be fully restored, if we
are to contribute towards an expansion of international trade and
with it a rise in the level of employment and real incomes which is
the main objective of economic policy as set down by the Fund.

188

MONETARY AND FINANCIAL CONFERENCE
Document 168

(P. 26)

J OURNAL
UNITED

N ATIONS

No. 7

MONETARY

AND

FINANCIAL

CONFERENCE

Bretton W o o d s, N e w Ham pshire

ORDER

THE

July 7 ,1 9 4 4

DAY

Meetings for Friday, July 7
9:30 a.m.
10 a.m.
2:30 p.m.
2:30 p.m.

Committee 3 of Commission I
Drafting Committee of Committee 1 of Com
mission I
Committee 2 of Commission I
Committee 4 of Commission I

The Hemicycle
Room A
Auditorium
The Hemicycle

(p .27)
R e s u m e s o f C o m m it t e e M e e t in g s

Steering Committee
(J u ly 6, 2 p.m. and 9 p.m .)

The Steering Committee met at 2 p.m. and 9 p.m. on July 6 to
discuss the progress of the work of the Conference. The decisions
reached by the Committee are being circulated separately as docu
ment no. 175.
The Steering Committee also set up a subcommittee composed
of members of the Union of Soviet Socialist Republics, United
Kingdom, and the United States, with full powers to discharge
the duties of the Committee under article 9 (c) of the Regula
tions of the Conference concerning the attendance of other persons
at sessions of the Conference, its Commissions and Committees.
Committee 1 of Commission I
Purposes, Policies, and Quotas of the Fund
(Ju ly 6, 10 a.m.)

Committee 1 of Commission I discussed and accepted the report
of the drafting committee, although with reservations on the part
of certain delegations regarding the revised language of article I,
section 2 . Alternative H to article I, which adds as a purpose
of the Fund the liquidation of war balances, was discussed and
referred to Commission I. Alternative A, section 6 (p. 4), dealing
with payments when quotas are changed, was approved. Alterna
tives B and C (p. 4a), relating to gold payments by countries

PROCEEDINGS AND DOCUMENTS

189

suffering from enemy occupation, was referred to the ad hoc
committee of Commission I dealing with problems of liberated
countries. Article IX, section 2 (p. 38), and section 3 (a) and (b)
(p. 39) were referred to the drafting committee. Section 3. (c) (p.
39) was referred to the drafting committee. Alternative A, section
4 (p. 40), was referred to Commission I for clarification.
(The minutes of this meeting are being distributed separately
as document no. 172.)
Committee 2 of Commission I
Operations of the Fund
(J u ly 6, Z:S0 p.m .)

The fourth meeting of Committee 2 of Commission I was held
on July 6 at 2:30 p.m. The Committee continued its discussion
of article III, Transactions with the Fund. The Chairman an
nounced the names of the delegations asked to designate members
of the language committee and of the ad hoc committee to con
sider Alternative A, section 2 (3) (p. 6 a of Document SA/1),
Alternative B (p. 6 b), Alternative D (p. 6 c), and Alternative F
(p. 6 e). The Committee agreed to defer action on Alternative E
(p. 6 d ), and (p. 28) Alternatives A and B (p. 13). The Com
mittee referred Alternatives A and B (p. 15) to the language
committee.
The Committee approved Alternative A (p. 16). The Committee
agreed to revise Alternative A, section 5 ( 2 ) (p. 8 ), to read
“Buy that currency from that member with gold”. Alternative B
(p. 8 ) was withdrawn.
(The minutes of this meeting are being distributed separately
as document no. 171.)
Committee 3 of Commission I
Organization and Management of the Fund
(Ju ly 6, 10 a.m.)

The Committee accepted without change article VII, section 5
(p. 28); article VII, section 6 , paragraph (a) (p. 29); and article
VII, section 1 1 (5). The Committee referred article VII, sec
tion 6 (b) (p. 29), to Commission I for decision. Alternative
C, article VII, section 6 (p. 29a), was dropped by general consent.
The Committee did not reach agreement on Alternatives of article
VII, section 2 —The Executive Directors. The three Alternatives
before the Committee were referred to a special subcommittee for

190

MONETARY AND FINANCIAL CONFERENCE

report. The Committee took no action on article VII, section 8
(p. 30) ; article VII, section 11 (1), (2), and (3) (p. 33) ; and
article VIII, section 1 (p. 34), pending clarification of their pos
sible assignment to Committee 4.
(The minutes of this meeting are being distributed separately
as document no. 173.)
Committee 4 of Commission I
Form and Status of the Fund
(Ju ly 6, 2:30 p.m .)

The third meeting of Committee 4 of Commission I was held
on July 6 at 2:30 p.m. Members of the “asterisk committee” were
appointed. The subcommittee to review article XI, section 7, re
ported substantial agreement. Article VII, section 8 , was recom
mended for approval. In the case of article VII, section 11, items
1, 2 , and 3, a modification in wording was approved by the Com
mittee. Article VIII, section 1, Alternative A, was approved after
considerable discussion. By agreement between the Chairmen of
Committees 3 and 4, article VIII, section 2, will be discussed by
Committee 3 instead of Committee 4. Article XI and Article XII,
section 1 , were referred to the “asterisk committee” for further
consideration.
(The minutes of this meeting are being distributed separately
as document no. 174.)
(p. 29)
Agenda Committee of Commission II
Bank for Reconstruction and Development
(Ju ly 6, 4:45 p.m .)

The Agenda Committee of Commission II met at 4:45 p.m. on
July 6 and agreed to a procedure by which it is hoped there soon
may be distributed to all delegations copies of a preliminary draft
“Agreement to Establish a Bank for Reconstruction and De
velopment”—a revised combination of the preliminary draft out
line of a proposal for “A Bank for Reconstruction of the United
and Associated Nations” of November 1943 (United States) and
the revision of June 29, 1944 (United Kingdom).
N o tice C o n c e r n i n g P r in t e d L ist o f D e l e g a t io n s

Preparation of material for the definitive printed list of delega
tions is now under way. Corrections and revisions which have

PROCEEDINGS AND DOCUMENTS

191

been requested by the delegations through the Office of the Secre
tary General and the. Registration and Information Desk have
been entered. In order that the appropriate officer of each dele
gation may inspect the information concerning his delegation
as it will appear in the final list and also in order that he may
have an opportunity to make any additional revisions, a member of
the editorial staff of the Journal will call at the office of each dele
gation today. Any further changes may be made at the Journal
office (room 69) before 6 p.m. on Saturday, July 8 .

Document 169
SA /2

Proposal for a Bank for Reconstruction and Development
The Agenda Committee of Commission II propose that the at
tached draft should be taken as the initial basis for discussion
and amendment. It is not to be regarded as the proposal of any
Delegation, nor is any Delegation committed to it.
Delegations are invited to send to the Secretariat (Mr. Upgren,
Room 147) by 7 o’clock on Saturday, 8 th July, any amendments,
suggestions or proposals which they may have ready by that time
for incorporation in the first edition of a text incorporating al
ternatives to be circulated for discussion. This will not preclude
any Delegation from submitting further proposals at a later
time. Papers received by the time named above will be assembled
by the Secretariat and considered by a meeting of the Agenda
Committee at 5 p.m. on Sunday, 9th July.
It will be much appreciated if, where this can be done without
inconvenience, Delegations will supply the Secretariat with 25
copies of any papers they send in.
The Agenda Committee suggests, having regard to the shortness
of time available, that Delegations need not be at the trouble of
attempting to draft their proposals in legal form. It will be
sufficient if the substantial intention of any addition or amend
ment which they wish to have discussed is communicated to the
Agenda Committee at this stage. There will be a later opportunity
of casting them into proper form.
7 /6 /4 4

192

MONETARY AND FINANCIAL CONFERENCE

( P - 1)
A g r e e m e n t to E st a b l is h a B a n k f o r R e c o n s t r u c t io n
an d D evelopm ent

Article I.

See note below

Purposes of the Bank

The bank shall be guided in all its decisions by the
following purposes:
siightiy
1- To assist in the reconstruction and development
(U edi i-5)
K
member countries by facilitating provision of long
term investment capital for productive purposes through
private financial agencies, by means of guaranteeing
and participating in the loans made by private investors;
2 . To supplement private financial agencies by pro
viding capital for productive purposes out of its own
resources, on conditions that amply safeguard its fund,
when private capital is not available on reasonable
terms;
3. To promote the long-range balanced growth of in
ternational trade by encouraging international invest
ment for the development of the productive resources
of member countries;
4. To coordinate loans made or guaranteed by it with
revised)
international loans through other channels so that the
more useful and urgent projects will be dealt with first.
5. To conduct its operations w ith due regard to the
effect of international investment on business conditions
in member countries and, in the immediate post-war
years, to assist in bringing about a smooth transition
from a wartime to a peacetime economy.
i.m .f . 1

: Symbols used in marginal notes.
U.S.—Printed plan of November 24, 1943.
U.K.— Mimeographed draft outline of June 25, 1944.
I.M.F.—Latest mimeographed version of Agreement for Fund using
Alternative A in all cases.

N ote

7 /6 /4 4

A rt. ,

(p. 2 )
Article II.

Membership in and Capital of the Bank
i .m . f

ii, i

Section 1 . Countries Eligible for Membership
The members of the Bank shall be those members
of the International Monetary Fund which accept mem
bership in the Bank.

PROCEEDINGS AND DOCUMENTS
U.S. II, 1
slightly re
vised

New

U .S. II, 3
revised

Cf. U.K. II,

193

Section 2. Authorized Capital.
The authorized capital stock of the Bank shall be
$ 1 0 ,0 0 0 ,0 0 0 ,0 0 0 , in terms of United States dollars of the
weight and fineness in effect on------------------. The capi
tal stock shall be divided into 1 0 0 , 0 0 0 shares having
a par value of $1 0 0 , 0 0 0 each, which shall be available
for subscription only by members.
The capital stock may be increased when the Bank
deems it advisable by four-fifths of the aggregate votes.
Section 3. Subscription for Stock.
Each member shall subscribe for shares of stock. The
minimum numbers of shares to be subscribed by coun
tries represented at the United Nations Monetary and
Financial Conference shall be those set forth in Sched
ule A. (Schedule A to be added later). The minimum
number of shares for other countries which become
members of the Bank shall be determined by the Bank.
Any member may subscribe for additional shares of
stock in accordance with rules to be established by the
Bank, except that a part of the authorized capital shall
be reserved by the Bank for minimum subscriptions of
countries not represented at the United Nations Mone
tary and Financial Conference.
Section 4. Availability of Subscribed Capital.
The subscription of each member country shall be
divided into two parts as follows:
(a) Twenty percent shall be callable by the Bank as
needed for any of its operations.
(b) The remaining 80 percent shall be callable by the
Bank only when required to implement obligations
of the Bank created under IV (1) (b) and (c)
below.
Calls on unpaid subscriptions shall be uniform on all
shares.
Art. II

7/6/44

(P. 3)
U.K. n , 4

Section 5. Payment of Subscription.
(a) Payments under Section 5 (a) shall be partly in
gold and partly in local currency. The proportions
to be paid in gold and local currency shall be gradu
ated according to an agreed upon schedule which
shall take into account the adequacy of the gold
and free foreign exchange holdings of each mem-

194

MONETARY AND FINANCIAL CONFERENCE

ber country. The portion to be paid in gold shall
not in any event exceed 2 0 percent of the total
payment.
(Schedule to be inserted)

m
enthi curl (b) Payments under Section 5 (b) shall at the option
renC converty
0f the member be made either in gold or in the curlble under
1-m.f.)
rency required to implement the obligations with
respect to which a call is made.
N
ew
(c) The initial payment on each share issued shall be
such as to equal the total amount per share already
called on outstanding shares adjusted for the
amount by which the issue price of the share differs
from par value.
U.K. Section 5 eliminated on ground it is covered by IV, 4 and 5 and
VII, 2, below).

(N o te:

N
ew

u.s. ii, 2
u.s. i i , 2

u.s. i i , 6

Section 6 . Issue Price of Shares.
Shares of stock included in the initial subscription
of a member represented at the United Nations Mone
tary and Financial Conference shall be issued at par
if the subscription is received not later than one year
after the date set for operations of the Bank to begin.
Other shares shall be issued at par or such other price
as may be fixed by three-fourths vote of the Bank.
Section 7. Limitation on Liability.
Liability on shares shall be limited to the unpaid por
tion of the issue price of the shares.
Section 8 . Disposal of Shares Limited.
Shares shall not be pledged or encumbered in any
manner whatever and they shall be transferable only
to the Bank.
Section 9. Return of Subscriptions.
When the liquid resources of the Bank are substan
tially in excess of prospective needs, the Bank may re
turn, subject to call, uniform amounts on all shares of
stock outstanding.

7 /6 /4 4

(P.

Art. H

4)
Article III.

(T itle derived
from U .K .)

u.s. i i ,

General Provisions Relating to Loans
®

Section 1. Use of Resources Restricted.
The resources and the facilities of the Bank shall
be used exclusively for the benefit of members.

PROCEEDINGS AND DOCUMENTS

195

Section 2. Agencies Dealing with the Bank.
Except as otherwise indicated in this Agreement, the
Bank shall conduct its business only with or through
the governments of the members, their central banks,
stabilization funds and other similar fiscal agencies, the
International Monetary Fund, and other international
agencies participated in primarily by governments of
members.
Section 3. Limitation on Loans and Guarantees.
N ew
The total amount of guarantees, participations in
loans, and loans and other investments made by the
Bank shall not exceed at any one time------------percent
of the subscribed capital and surplus of the Bank.
Section 4. Conditions on which Bank may Guarantee
or Make Loans.
us*
The Bank may guarantee, participate in, or make
in_i ’
loans to the government of any member, political sub
divisions thereof, and business and industrial enter
prises therein, subject to the following conditions:
( u .k . confines
(i) The government of the member in which the
to n a tio n ^
p r o j e c £ j s iocated, the central bank of such member, or
som£ comparable agency fully guarantees the payment
of interest on the loan and repayment of the principal.
(2)
The borrower is unable to secure the funds from
other sources under conditions which, in the opinion of
the Bank, are reasonable.
(O its “d
m i( 3 ) a competent committee, after a careful study of
d
lrectiy^
’Tromthe merits of the project, has submitted a written reUK > < port concluding that the project would serve to increase
4
orabieS
pros-^ the productivity of the member country in which it is
pects” from located.
U S)
(4) In the opinion of the Bank, the rate of interest
is reasonable and such rate and the schedule for re
payment of the principal are appropriate to the project
and to the balance of payments prospects of the mem
ber country in which the project is located.
(5) In guaranteeing a loan made by other investors,
the Bank receives compensation for its risk.

u.s.

iv, 17

7 /6 /4 4

Art. Ill

ALTERNATIVE A

PART (1 )
u .k

. h i, 6

newm er
a

general, loans made or guaranteed by the Bank,
^ £or
pUrp0Se 0f specific projects of reconstruc-

196

MONETARY AND FINANCIAL CONFERENCE

tion and development, and except as otherwise provided
in this plan, the proceeds of loans shall only be made
available to meet specific purposes. In exceptional cir
cumstances, however, the Bank, acting in agreement
with the International Monetary Fund, may make or
guarantee a loan which provides the borrowing coun
try with gold or foreign exchange for the purpose of
establishing its exchanges and and allowing a breathing
space for the recovery of its economy and the balancing
of its international payments.
P art (2 )
U.K . I ll, 7
(n ew m atter)

In making or guaranteeing a loan the Bank shall pay
due regard to the prospects of the borrowing country
being in a position to service the loan; and in determin
ing the destination, the character and the volume of its
loans it shall act prudently in the interests both of the
borrowing member country and also of the guaranteeing
members. At the same time it shall not seek to avoid
the incurring of some measure of reasonable risk (tak
ing account of the commission chargeable—see below)
where the loan is in the general interests of reconstruct
ing or developing the world’s resources or expanding
international trade along mutually advantageous lines;
and shall seek to conduct its operations taken as a whole
in such manner as to avoid, so far as possible, the calling
up of the capital reserved for guarantees, rather than
seek full security from risk in each transaction taken
separately. These considerations shall govern the lending
policy of the Bank especially in approving reconstruc
tion loans to countries which have suffered from the
war.
— U.K. I ll, 2 , taken directly from P.P. IV, 6 has been
omitted as essentially duplicative of A rt. Ill, Sec. 4, subdiv.
(2) above.

N ote

U .S . IV , 8,
revised;
(C f. U .K .
H I, 4)

Section 5. Provision of currencies for loans.
When the Bank makes loans it shall:
(a) Furnish the borrower with the currencies of
members other than that of the member in which the
project is located which are needed by the borrower in
connection with the loan;
(b) Finance the expenditures of the borrower
in the member in which the project is located only as

PROCEEDINGS AND DOCUMENTS

197

follows, (1) under exceptional circumstances when the
local currency required cannot be raised on reasonable
terms in the country where the project is located, the
Bank may provide an appropriate part of the loan in
that currency, or (2) if the development program or
project gives rise to an increased need for foreign
exchange, the Bank may make available to the borrower
an appropriate amount of gold or foreign exchange
not to exceed the borrower's expenditure in the member
in which the project is located;
Art. Ill

7 /6 /4 4
(p . 6 )

U .S. I ll, 5
revised
Cf. U .K . I ll,
1(d )

(c)
Make available at the request of a member in
which a portion of a loan is spent an amount of gold
or foreign exchange not to exceed the amount by which
the expenditure of the loan in that member gives rise
to an increased need for foreign exchange.
Section 6. Use of loans guaranteed, participated in
or made by the bank.
(a) The Bank shall impose no conditions as to the
particular member in which the proceeds of a loan shall
be spent.
(b) The Bank shall make arrangements to assure
that the proceeds of any loan are used only for the pur
poses for which the loan was granted, with due atten
tion to considerations of economy and efficiency regard
less of political or other non-economic influences or
considerations.
(c) In addition to any other action which the Bank
may take to implement the provisions of subsection (b)
above with respect to loans it makes, it shall credit the
account of the borrower with the amount of the loan
and shall make payment from the account only to meet
expenses as they are actually incurred.

7 /6 /4 4

Art. Ill

(P. 7 )

IV.
U.K. IV, 1

Operations

Section 1. Methods of facilitating provision of loans.
The Bank may facilitate the provision of loans which
satisfy the general conditions of Article III in any of
the following w ays:
(a) By direct loans out of the Bank's own capital
subscribed under Article II, Section 4(a).

198

New

MONETARY AND FINANCIAL CONFERENCE

(b) By direct loans out of funds raised by the Bank
in the market of a member.
(c) By guaranteeing in whole or in part loans made
by private investors through the usual investment
channels.
Section 2. Loans from subscribed capital.
The Bank shall make loans from currency subscribed
under Article II, Section 4(a), only with the approval
in each case of the member whose currency is to be
loaned. If the currency required by the borrowing coun
try is not available in whole or in part out of capital so
subscribed, the Bank may supply such currency from
its holdings derived from other sources or may supply
gold, subject to Article III, Section 5, and Section 8 of
this Article.
ALTERNATIVE A

U.K. IV , 4

In the case of loans under Section 1 (a) of this Article,
the borrower shall notify the Bank in which members it
desires to incur expenditure to be met out of the loan,
and the Bank shall make the required currencies avail
able out of its subscribed capital, provided that the
country whose currency is to be supplied has agreed
in each case. If local currency subscribed under II (4)
(a) is not available in whole or in part, the Bank shall
make it available out of its holdings of gold or other
free resources, if it possesses an adequate amount of
such resources and is satisfied that, without this pro
vision, the country in which the borrowing country de
sires to place the order, would have difficulty in main
taining the equilibrium of its international balance of
payments. Otherwise it shall request the borrowing
country to transfer its proposed expenditure to
another member country. Furthermore, at the request
of the countries in which portions of the loan are spent,
the Bank will repurchase for gold or needed foreign
exchange a part of the sum expended in the currencies
of those countries made by the borrower from the pro
ceeds of the loan.
Art. IV

7 /6 /4 4
(P . 8 )

U.K. IV, 5

Section 3. Loans from borroived funds and guarantees.
The Bank shall borrow funds under Section 1 (b) of
this Article or guarantee loans under Section 1 (c) only

PROCEEDINGS AND DOCUMENTS

199

with the approval of the member in the market of which
the funds are raised and only if that member agrees
that the proceeds may be expended in any member with
out restriction.
Section 4. Payment Provisions for Direct Loans.
Loans made directly by the Bank under Section 1(a)
or (b) of this Article shall contain the following pay
ment provisions
(a) The annual service of the loan shall be made up
of three parts, namely:

U.K. IV , 6

(i) a standard rate of interest fixed by the Bank
and the same to all borrowers but modifiable
from time to time for new loans;
(ii) an annual commission at a flat rate fixed at one
percent in the first instance but alterable by
the Bank from time to time at its discretion for
new loans in the light of experience, the same
to all borrowers, to cover the general expenses
of the Bank, and as a provision against risk, but
the particular expenses of investigation, etc.,
attaching to the individual loan, may be charged
separately against the borrowers.
(iii) an annual contribution to amortization either at
a flat, or at a progressive rate sufficient to repay
the capital within a determined number of years,
the length of which shall be fixed with regard not
only to the character and purpose of the loan, but
also, especially in the case of reconstruction
loans, to the conditions in the country of the
borrower which may delay the time within
which the borrower can repay the loan. The
time normally shall not exceed thirty years but
may be extended to fifty years in particular
cases.

(Could items
(i) and (ii)
be combined?)

(b) The loan and its annual service shall be fixed
in whatever currency may be stipulated by the Bank
when making the loan, and may be paid, at the option
of the borrower, in gold, or at the discretion of the
Bank, in any other currency of a member.

(Om its con
vertible
I.M .F.
currency)

7 /6 /4 4

Art. IV

(P. 9)
(c) In the event of the country of the borrower suf749013-

4 8 — 14

200

( Should this
sentence be
included?)

U .S.IV 1 0 (d )

U .S. IV , 3
revised

(rew ritten
from U .K .
IV , 7)

MONETARY AND FINANCIAL CONFERENCE

fering from an acute exchange stringency, so that the
service of the loan cannot be provided in the stipulated
manner, the country may appeal to the Bank for a re
laxation of the conditions of payment. If the Bank is
satisfied that some relaxation is in the interests of the
country of the borrower and of the operations of the
Bank and the other members as a whole it may take
action under either, or both, of the following headings
in respect of the whole, or part, of the annual service
(i) The Bank may in its judgment accept payments
in respect of the service of the loan for periods
not exceeding three years at a time in local
currency. The Bank shall arrange with the bor
rowing country for the repurchase of such local
currency over a period of years on appropriate
terms that safeguard the Bank’s holdings of
such currency. The Bank may also require that
the whole, or part of such currency, may be
transferred to another member in whose hands it
shall be freely available to make payments or
to purchase exports in the borrowing country,
(ii) The Bank may re-arrange the instalments of
amortization so as to increase the amount due
in later years or to prolong the life-time of the
loan.
(d)
Payments of interest, commissions, and principal,
whether made in currency or in gold, must be equivalent
to the gold value of the loan and of the contractual in
terest and commissions thereon.
Section 5. Participations.
The Bank may participate in loans with any of its
resources except those subscribed under Article II, Sec
tion 4(a). Loans participated in by the Bank shall be
placed through the usual investment channels.
Section 6. Guarantees.
In guaranteeing a loan placed through the usual in
vestment channels, the Bank shall charge a commission
on the entire original amount of the loan at a flat rate
fixed at one percent per annum in the first instance but
alterable by the Bank from time to time at its discretion
for new guarantees in the light of experience. Commis
sions shall be paid direct to the Bank by the borrower.

7 /6 /4 4

Art. IV

PROCEEDINGS AND DOCUMENTS

201

( p .10)

Section 7. Order of Meeting Obligations.
The obligation of the Bank on borrowings or guar
antees under Section 1 (b) and (c) of this Article
shall be met first from its receipts from commissions
and other profits, then from a call on unpaid subscrip
tions, and finally from paid-in capital. When there is
any interruption in the service of a loan guaranteed by
the Bank, it shall assume the service. If losses of the
Bank are recovered the funds received shall be returned
pro rata to members responding to any calls by which
the obligations of the Bank were met. With the approval
of the Bank, a member subjected to a call, may, in lieu
‘of paying the call, purchase from the Bank currency of
the country the default of which or of a borrower in
which has necessitated the call but in such case the
amount returnable to the member if the loss is re
covered shall be appropriately reduced.
Section 8. Miscellaneous Operations.
(U .S. IV ,
In addition to the operations specified elsewhere in
15 (a)
this Agreement, the Bank shall have the power:
Revised)
(U .K . V , 1)
(1) To issue, buy and sell (i) its own securities
including securities collateralized by loans or in
vestments it has made, (ii) securities it has guar
anteed and, (iii) securities in which it has in
vested, but the Bank shall obtain the approval
of the member in which securities are to be is
sued, bought or sold, and when the Bank buys
securities it has issued, it shall also obtain the
approval of the member whose currency will be
paid for such securities.
(U .S. IV , 5)
(2) To guarantee securities in which it has invested
for the purpose of facilitating the sale of such
securities;
(U .S . IV , 15
(3) To borrow the currency of any member with the
( c ) , R evised)
approval of such country; and

(U .K . IV ,
7 & 8 re
w ritten and
combined)

7 /6 /4 4

Art. IV

( p . 11)
(U .S. IV , 15
( c ) , Revised)

(4) After consultation with the International Mone
tary Fund, to buy and sell gold and the currencies
of members tohenever such transactions are nec
essary in connection with the operations of the
Bank but with respect to each transaction other

202

MONETARY AND FINANCIAL CONFERENCE

than any undertaken to pay creditors, the Bank
shall obtain the approval of the member in which
the transaction takes place and the member cur
rency of which is disposed of by the Bank.
In exercising the powers conferred by this Section,
the Bank may deal with any person, partnership, asso
ciation, corporation or other legal entity in any member
country.
(N ote:

U.K. V, 2; taken from U.S. IV, 18 has been omitted)

Section 10. Warning to be Placed on Securities.
Every security guaranteed or issued by the Bank
shall bear on its face a conspicuous statement that it
is not an obligation of the government of any country
other than any expressly stated to be obligated on the
security.
Section 11. Political A ctivity Prohibited.
(u.s. iv, 19) The Bank and its officers shall scrupulously avoid in
terference in the political affairs of any member. This
provision shall not limit the right of an officer of the
Bank to participate in the political life of his own
country.
The Bank shall not be influenced in its decisions with
respect to applications for loans by the political char
acter of the government of the member concerned with
the loan. Only economic considerations shall be relevant
to the Bank’s decisions.
The Bank, acting with the strictest impartiality, shall
U .K . V , 5
pay particular regard, both in selecting the‘place of its
borrowing and of its lending to maintaining the equi
librium of the international balance of payments of
members.

N
ew

7 /6 /4 4

Art. IV

(P. 12)
Article V

Management
U .S. V , 1

Section 1. Board of Governors.
(a)
The administration of the Bank shall be vested
in a Board of Governors consisting of one governor and
one alternate ^appointed by each member country in
such manner as it may determine. Governors and al
ternates shall serve for five years, subject to the pleasure
of their respective governments, and may be reap-

PROCEEDINGS AND DOCUMENTS

U.S. V, 2
revised

203

pointed. No alternate may vote except in the absence of
his governor. The Board shall select a chairman from
its members.
(b) The Board of Governors may delegate to the
Executive Directors authority to exercise any powers
of the Board, except:
(1) Determining what new members may be ad
mitted and the conditions of their admission;
(2) Increasing the capital stock;
(3) Requiring a member to withdraw;
(4) Deciding appeals against interpretations of the
Agreement by the Executive Directors given on
application by a member;
(5) Making agreements to cooperate with other in
ternational organizations;
(6) Deciding to liquidate the Bank.
(c) The Board of Governors shall hold an annual
meeting and such other meetings as may be provided for
by the Board or convened by the Executive Directors
whenever requested by five members or by one quarter
of the aggregate votes.
(d) The Board may by regulation establish a pro
cedure whereby the Executive Director, when they deem
such action to be in the best interest of the Bank may
obtain vot£s of the governor on a specific question in
lieu of calling a meeting of the Board.
(e) Governors and alternates shall serve as such
without compensation from the Bank, but the Bank shall
pay such reasonable expenses as are incurred by the
Governors and alternates in attending any meetings.
Section 2. Voting
Each member shall have ------------ votes plus one
additional vote for each share of stock held.
Except as otherwise specifically provided, all matters
before the Bank shall be decided by a majority of the
aggregate votes.
Art. v

7 /6 /4 4

(p. 12a)
International
Monetary
Fund, V II, 2

Section 3. The Executive Directors
(a) The Executive Directors shall be responsible for
the conduct of the general operations of the Bank,
and for this purpose, shall exercise all the powers
delegated to them by the board of governors.

204

MONETARY AND FINANCIAL CONFERENCE

(b) There shall be eleven Executive Directors, of
whom five shall be appointed by the five members
holding the largest number of shares and six shall
be elected biennially, in accordance with the pro
visions of Schedule B, by all the Governors other
than those appointed by the members having the
five largest number of shares. Persons chosen as
Executive Directors need not be Governors.
(c) Every Executive Director may appoint an alternate
with full power to act for him when he is not pres
ent. When the Executive Directors appointing them
are present, alternates may participate in meetings
but shall not vote.
(d) The Executive Directors shall be in continuous
session at the principal office of the Bank.
(e) In order to constitute a quorum for any meeting
of the Executive Directors, there must be present
a majority of the Directors representing not less
than one-half of the voting power of all the Execu
tive Directors.
(f) Each Executive Director appointed by one of the
members with the five largest quotas shall be en
titled to cast the number of votes alloted under Sec
tion 2 of this Article to the member appointing him.
Each elected Executive Director shall be entitled
to cast only the number of votes which actually
count toward his election. Each Executive Director
shall cast all of the votes to which he is entitled
as a single unit.
(g) The Board of Governors shall make regulations con
taining provisions under which a member which is
not entitled to appoint an Executive Director under
(b) above shall be permitted to send a representa
tive to attend any meeting of the Executive Direc
tors when a request made by, or a matter particu
larly affecting, that member is under consideration.
(h) The Executive Directors shall appoint a President
7/6/44

Art. V

who shall not be a Governor or an (p. 12b) Exective Director. The President shall be Chairman of
the Executive Directors, but shall have no vote
except a casting vote in case of an equal division.
He may participate in meetings of the Board of

PROCEEDINGS AND DOCUMENTS

205

Governors, but shall not vote at such meetings. He
shall, however, be eligible for election as Chairman
of the Board of Governors. The President shall hold
office at the pleasure of the Executive Directors,
(i) The President shall be chief of the operating staff
of the Bank and shall conduct under the direction
of the Executive Directors, the ordinary business
of the Bank’s work: Subject to the general control
of the Executive Directors, he shall be responsible
for the internal organization of the Bank’s staff and
the appointment and dismissal of its staff. The
Managing Director shall be responsible to the Ex
ecutive Directors for the accounts.
(j) The Executive Directors may appoint such
committees as they deem advisable. Members of
such committees need not be limited to Governors
or Executive Directors or their alternates.
(k) The Board of Governors shall determine the re
muneration to be paid to the Executive Directors
and the salary and terms of service of the Presi
dent.
SCHEDULE B

7 /6 /4 4

(a) In balloting for the elective Executive Directors,
each governor eligible to vote shall cast for one person
all of the votes to which he is entitled under Section 2
of this article. The six persons receiving the greatest
number of votes shall be Executive Directors, except
that no person who receives less than sixteen percent
of the aggregate eligible votes shall be considered elected.
(b) When six persons are not elected on the first
ballot, a second ballot shall be held in which the person
receiving the lowest number of votes shall be ineligible
for election and in which there shall vote only those
governors who voted on the first ballot for a person
not elected and those governors all or part of whose
votes for a person elected are deemed to have raised
the votes cast for that person above seventeen percent
of the aggregate eligible votes.
Art. v

(p. 12c)
(c) In determining whether any part of the votes
cast by a governor are to be deemed to have raised the
total of any person above seventeen percent, there shall

206

7 /6 /4 4

MONETARY AND FINANCIAL CONFERENCE

be considered as not forming part of the excess over
seventeen percent the votes of the governor casting the
largest number of votes for such person, then the votes
of the governor casting the next largest number, and
so on until the total reaches seventeen percent.
(d) Any governor whose votes are partly not in ex
cess and partly in excess shall be eligible to vote in the
second balloting only to the extent of the votes in
excess.
(e) If on the second ballot, six persons have not been
elected, further ballots shall be taken on the same prin
ciples until six persons have been elected, provided that
after five persons are elected, the sixth may be elected
by a simple majority of the remaining votes and shall
be deemed to have been elected by all such votes.
Art. v

(P. 13)
U.S. V , 5

New
U .S. IV ,
(c)

[.M.F. V III,
C f.U .S.V ,10

Section 3. Advisory Council.
There shall be an Advisory Council of seven persons,
elected by the Fund from outstanding representatives
of banking, business, labor and agricultural interests,
who are citizens of members, but only one citizen of
any member shall serve on the Council at any one time.
The Council shall advise with the Bank on matters of
general policy. The Council shall meet annually and on
such other occasions as the Bank may request.
Councillors shall serve for two years, and may be
reelected. They shall be paid their reasonable expenses
incurred in behalf of the Bank.
Section 4. Loan Committees.
The committees required to report on loans under
Article I, Section 5, shall be appointed by the Bank,
except that such committee shall include an expert se
lected by the Governor representing the member in
which the project is located, who may or may not be
from the technical staff of the Bank. The majority of
each committee shall be from the technical staff.
Section 5. Relationship to Other International Organi
zations.
8
The Bank, within the terms of this Agreement, shall
cooperate with any general international organization
and with public international organizations having spe
cialized responsibilities in related fields. Any arrange

PROCEEDINGS AND DOCUMENTS

I.M.F.
IV, 1

I.M.F.
VII, 5

7 /6 /4 4

207

ments for such cooperation which would involve a
modification of any of the provisions of this Agreement
may be effected only after amendment to this Agreement
in conformity with the procedure set forth in Article IX.
Section 6. Location of Offices
The principal office of the Bank shall be located in
the member holding the greatest number of shares and
agencies or branch offices may be established in any
member or members.
Section 7. Depositories.
(a) Each member shall designate its central bank as
a depository for all the Bank's holdings of its currency
or, if it has no central bank, it shall designate such
other institution as may be acceptable to the Bank.
Art. v

(p. 14)

I.M.F.
V II, 6

I.M .F.
IV , G

(b) The Bank may hold other assets, including gold,
in designated depositories in the four members holding
the greatest number of shares and in such other deposi
tories as the Bank may select. At least one-half of the
holdings of gold of the Bank shall be held in the desig
nated depository in the member in which the Bank has
its principal office. In an emergency, the Executive Di
rectors may transfer all or any part of the Bank's
holdings of gold to any place where it can be adequately
protected.
Section 8. Form of Holdings of Currency.
The Bank shall accept from any member in lieu of
any part of the currency of that member not needed by
the Bank in its operations, notes or similar obligations
issued by the Government of the member or the deposi
tory designated by such member, which shall be nonnegotiable, non-interest bearing and payable at their
par value on demand by a credit to the currency account
of the Fund in that member.
Section 9. Protection of the Assets of the Bank.
No change in the foreign exchange value of the cur
rency of any member shall alter the gold value of the
assets of the Bank. Whenever (i) the par value of a
currency of a member is reduced, or (ii) the foreign
exchange value of the currency of any member has de
preciated within the jurisdiction to a significant extent
in the opinion of the Bank, the member shall compensate

MONETARY AND FINANCIAL CONFERENCE

the Bank by paying to the Bank within a reasonable time
an amount of its own currency equal to the reduction
the gold value of the currency of such member held by
the Bank. Whenever the par value of the currency of
any member has been increased the Bank shall com
pensate such member by returning, within a reasonable
time, an amount in the currency of such member equal
to the increase in gold value of the currency of such
member held by the Bank.
Section 10. Publication of Reports.
The Bank shall publish an annual report containing
an audited statement of its accounts and shall issue at
intervals of three months or less a summary statement
of its financial position and a profit and loss statement
showing the results of its operations.
The Bank may publish such other reports as it deems
desirable for carrying out its purposes and policies.
Art. V

Section 11. Allocation of Income.
The Bank shall determine annually what part of its
net income shall be placed to reserve and what part, if
any, shall be distributed.
Section 12. Distribution of Income.
If any part is distributed, two per cent non-cumulative
shall be paid, as a first charge against the distribution
of any year, to each member on the average amount
during the year by which 75 per cent of its quota ex
ceeds the holdings by the Fund of its currency; and the
balance to the members in proportion to their quotas.
Payments to each member shall be made in its own
currency.
Section 13. Miscellaneous Powers.
In order to carry out its purposes, the Bank may:
(1) Make contracts;
(2) Acquire and dispose of real and personal prop
erty;
(3) Institute legal proceedings in any court of com
petent jurisdiction;
(4) Enter into such compromises or settlements of
obligations due to or by the Bank as in the judg
ment of the Board are to the best interests of
the Bank;

PROCEEDINGS AND DOCUMENTS

209

(5) Employ such staff as shall be necessary to con
duct the business of the Bank; and
(6) Adopt such rules or regulations as may be neces
sary or appropriate to conduct the business of
the Bank.
Art. V

7 /6 /4 4

(P. 16)
Article VI
Withdrawal and Suspension of Membership and Liquidation
Section 1. Right of Members to Withdraw.
Any member may withdraw from the Bank at any
time by serving written notice on the Bank at its prinl m . v . v i i i , i c i p a i office. Withdrawal shall become effective on the
date such notice is received.
Section 2. Suspension of Membership.
U.S. V, 8,
A member country failing to meet any of its obliga
revised.
tions to the Bank may be suspended from membership
(F urther
revision
by decision of a majority of the member countries, each
may be rec
of which for this purpose shall have one vote, to be cast
ommended)
by its director or alternate. At the end of one year from
the date of suspensions, the country shall automatically
cease to be a member of the Bank unless a majority of
the member countries, voting in the same manner as for
suspension, restores the country to good standing.
While under suspension, a country shall be denied
all of the privileges of membership except the right of
withdrawal, but shall be subject to all of its obligations.
Section 3. Financial Assistance to be Withheld.
U .S. IV, 18
If any country is suspended from membership, the
slightly re
members agree that they and their agencies will not ex
vised
U.K . V , 4
tend financial assistance to that country during the
( should
period of suspension without approval of the Bank.
this be in
cluded)
Section 4. Cessation of Membership in International
Monetary Fund.
N ew
Any member which ceases to be a member of the In
ternational Monetary Fund shall immediately cease to
be a member of the Bank.
ALTERNATIVE A
U.K . IV , 10
taken liter
ally from
U .S . V , 8

Any member country that withdraws or is dropped
from the International Monetary Fund, shall relinquish
its membership in the Bank unless three-fourths of the
member votes favor its remaining as a member.

210

MONETARY AND FINANCIAL CONFERENCE

Section 5.
U .S. V , 8
greatly ex
panded
subject to
further
revision.

7 /6 /4 4

(P-17)
(U .K . IV , 11,
follows U .S.
V, 8 literally)

U .S . V , 8
greatly
expanded

at which such shares are carried on the books of
the Bank on the day the country ceases to be a
a member of the Bank plus a pro rata share of any
surplus existing on that date.
(b) The payment for shares repurchased by the Bank
under this section shall be governed by the fol
lowing conditions:
(1) No amount shall be paid for shares prior to
six months from the date upon which the coun
try ceases to be a member nor thereafter so
long as the country, its central bank or any
of its agencies remain liable, directly, or con
tingently, to the Bank, except as to liability
of the country resulting from its subscription
for shares, and any amount so withheld may,
at the option of the Bank, be applied on any
matured obligation. Payments for shares shall
be made from time to time to the extent by
which the amount due as the repurchase price
exceeds the aggregate of such liabilities until
the former member has received the full re
purchase price.
(2) Payments shall be made in the currency of the
country receiving payment and any deficiency
shall be paid in gold or gold-convertible ex
change at the option of the Bank.
(c) In the event the Bank goes into liquidation within
six months of the date upon which any country
ceases to be a member of the Bank, all rights of
such country shall be determined by the provisions
governing liquidation.
Section 6. Assessments to Meet Losses
(a) In the event any loss is sustained by the Bank on
any guarantee, participation in a loan, or loan
which was outstanding on the date the country

PROCEEDINGS AND DOCUMENTS

211

ceased to be a member of the Bank, and the amount
of such loss exceeds the amount of the reserve
existing on the date the country ceased to be a
member, such country shall be obligated to repay
upon demand that amount by which the repur
chase price of its shares would have been reduced
if the loss had been taken into account when the
repurchase price was determined. In addition, the
7 /6 /4 4

Art. V I

<P*18)

N
ew

former member country shall remain liable on any
call for unpaid subscriptions to the extent that it
would have been required to respond if the im
pairment of capital had occurred and the call had
been made at the time the repurchase price of its
shares was determined.
(b) Repayment to the Bank under this section shall be
in currency and gold or gold-convertible exchange
in the same proportion as the payments by the Bank
for the repurchase of the shares.
Section 7. Liquidation
In an emergency, the Executive Committee by a ma
jority vote, temporarily may suspend the operations
of the Bank, pending an opportunity for further con
sideration and action by the Board.
The Bank may be voted into liquidation by a majority
of the aggregate votes.
Upon being voted into liquidation, the Bank shall
forthwith cease engaging in any activities except those
incident to the orderly liquidation, conservation and
preservation of its assets and the settlement of its
obligations.
The liability of all member countries for uncalled
subscriptions to the capital stock of the Bank and their
guarantees with respect to the depreciations of their
own currencies shall continue until all claims of credi
tors including all contingent claims shall have been
discharged.
Upon liquidation of all creditors holding direct claims
shall be paid immediately if the Bank has sufficient
assets, and if the assets are not sufficient, the Execu
tive Committee shall pay such creditors as soon as pos
sible out of payments to the Bank or calls on subscrip

MONETARY AND FINANCIAL CONFERENCE

212

tions, but before making any payments to holders of
direct claims, the Committee shall make such arrange
ments as are necessary, in its judgment, to insure a
distribution to holders of contingent claims ratably
with creditors holding direct claims.
No distribution shall be made to a member country
on account of its capital subscription until all claims of
creditors, including all contingent claims, have been
discharged or have been provided for by the Executive
Committee having made arrangements sufficient, in its
judgment, to accomplish that purpose.
(Detailed provisions relating to method of distri
bution to shareholders will be supplied later on basis of
principles provided for liquidating the International
Monetary Fund.)
7/6/44

Art. VI

(P. 19)
Article VII
Additional Undertakings on the part of Member Countries

N
ew

i.m .f. ix , 5
revised

Section 1. Purposes and Scope of Undertakings.
In order to support the activities of the Bank and
to foster the accomplishment of its purposes and
policies, each member country, in addition to commit
ments appearing elsewhere in this Agreement, under
takes the performance of and agrees to the stipulations
set forth herein, all of which shall remain binding during
suspension or after termination of membership.
Section 2. Immunities of the Bank.
(a) The Bank and its assets of whatsoever nature
t
shall, wheresoever located and by whomsoever held, be
exempt and immune in the territory of any member
from:
(i) search, seizure, attachment, execution, requisi
tion, confiscation, moratorium and expropriation,
except as provided in 3, below; and
(ii) any exchange, debt, or export controls, except
such as are consented to by the Bank.
(b) All governors, executive directors, officers and
employees of the Bank- shall, with respect to their of
ficial acts, be exempt from suit except when the Bank
consents.
(c) The archives of the Bank shall be inviolable.

PROCEEDINGS AND DOCUMENTS

213

N ote. There are certain other minor privileges or immunities which will also
be required such as courier facilities. F u rth er m aterial will be supplied
completing this section in this respect.
N ew

I.M.K. IX, 7,
(subject to
revision)

Section 3. Suits against the Bank.
Suits may be brought against the Bank only in a court
of competent jurisdiction in a member in which the
Bank has an office, and only by litigants other than
members and those acting for or deriving claims from
members. The Bank and its assets of whatsoever nature
shall, wheresoever located and by whomsoever held, be
exempt and immune from seizure, attachment and exe
cution in advance of final judgment.
Section 4. Restrictions on Taxation of Bank, its Em
ployees and Obligations.
(a)
The Bank, its assets, property, income, activities,
operations and transactions of whatsoever nature shall
be exempt and immune from all taxation or liability
for the collection or payment of any tax, including
without limitation by reason of this enumeration, ex
cises, duties, and imposts, imposed by any member
or any political subdivision or taxing authority thereof.
Art. VII

7 /6 /4 4

(p .20)
(b) No member, or any political subdivision or tax
ing authority thereof, shall impose or collect any tax
on or measured by salaries or remunerations for per
sonal services paid by the Bank to persons who are
not citizens of such member.
(c) No member, or any political subdivision or taxing
authority thereof, shall impose or collect any taxation
on any obligation or security issued by the Bank or
any dividend or interest thereon, by whomsoever held
or received, which discriminates against such obli
gation, dividend, or interest, because of its origin, or
which is applicable with respect to such obligation,
security, dividend, or interest because of the place
or currency in which it is issued, made payable or paid,
or because of the location of any office or place of busi
ness maintained by the Bank.
7/6/44

Art. VII

214

MONETARY AND FINANCIAL CONFERENCE

(p. 21)
Article IX— Amendments
I.M.F.
XI

Any governor or executive director desiring to intro
duce modifications in this Agreement shall communi
cate his proposal to the Chairman of the Board of
Governors who shall bring the proposal before the
Board of Governors. If the proposed amendment is
approved by the Board of Governors by a majority
of the aggregate votes, the Fund shall prepare a protocol,
by dated circular letters, to the governments of all the
members asking whether they accept the proposed
modifications. When the governments of members hav
ing four-fifths of the aggregate votes, have accepted
the proposed amendment, or, in the case of modifica
tions of the right to withdraw from the Fund when
the governments of all of the members have accepted,
the Fund shall certify the fact by means of a proces
verbal, which it shall communicate to the governments of
all members. The protocol will enter into force between
all members three months from the date of the proces
verbal unless a shorter period is specified in the protocol.

7 /6 /4 4

Art. IX

(P. 22)
Article X
I.M .F.
X II, 1

Section 1. Interpretation.
All questions of the interpretation of the provisions
of this Agreement between two or more member coun
tries shall be resolved by the Bank. Whenever a disagree
ment arises between the Bank and a country which has
ceased to be a member, or between the Bank and any
member after liquidation of the Bank, such disagree
ment shall be submitted to arbitration.
Section 2. Definitions.
(To be supplied later)

(N ew )

Section 3. Approval Deemed Given.
Whenever the approval of any member is required
before any act may be done by the Bank approval shall
be deemed to have been given unless the member pre
sents an objection within such reasonable period as the
Bank may fix in notifying the member of the proposed
act.

7/6/44

Art.X

215

PROCEEDINGS AND DOCUMENTS

(P. 23)
Article XI
(Final Provisions)
(To be supplied later)
7 /6 /4 4

Art. X
I

Document 171
CI/2/M4

Minutes of Meeting of Committee 2 of Commission I
O p e ra tio n s o f t h e F u n d
(Ju ly 6, 19uu, 2:30 p.m .)

The Chairman asked the delegations of the following countries
to name a member to serve on the language committee: United
States, Chairman; China, Ecuador, French Delegation, Union of
South Africa, and Union of Soviet Socialist Republics. The Chair
man asked the delegations of the following countries to name
a member to serve on the ad hoc committee to consider article
III, section 2 (3), Alternatives A, B, D, and F (Document SA/1,
pp. 6a, 6b, 6c, and 6e) : French Delegation Chairman; Australia,
Brazil, Canada, China, Mexico, Netherlands, Union of Soviet So
cialist Republics, United Kingdom, and United States.
The Committee continued its discussion of article III, Transac
tions with the Fund.
On Alternative E (p. 6d), it was decided to defer action pend
ing informal discussions among certain members of the Com
mittee looking toward the submission of a compromise proposal.
On Alternative A, section 5 (2) (p. 8), and Alternative B
(p. 8) the Committee agreed to revise Alternative A, section 5 (2)
to read “Buy that currency from that member with gold”. Alterna
tive B was withdrawn.
(p. 2) On Alternatives A and B (p. 13) the Committee agreed
to defer discussion until the material to be inserted in Alterna
tive A is available.
The Committee deferred discussion of Alternatives A and B
(pp. 14, 14a, and 14b) until all members have had a chance to
study them.
The Committee agreed to refer Alternatives A and B (p. 15)
to the language committee.
The Committee agreed to approve Alternative A (p. 16).
The Committee discussed Alternatives A and B (pp. 18 and
18a) at some length. A third Alternative was presented infor749013^—48—15

216

MONETARY AND FINANCIAL CONFERENCE

mally and will be circulated. The .Committee will continue its
discussion of these Alternatives at its next meeting.

Document 172
CI/1/M 4

Minutes of Meeting of Committee 1 of Commission I
P u rp o s e s , P o lic ie s , a n d Q u o ta s o f t h e F u n d
J u ly 6, 19 H — 10 a.m.

The Committee began its fourth meeting by discussing the re
port of the drafting committee. The Committee discussed the re
vised language for article I, section 2, dealing with the purposes
of the Fund. It was agreed to accept this wording with the reserva
tion that delegations not completely satisfied might raise the ques
tion later if their viewpoint did not find adequate expression in
a general preamble covering the whole work of the Conference.
The Committee approved the revised wording of article I, sec
tions 3 and 6, and also accepted the recommendation of the drafting
committee to accept the wording of Alternative A following sec
tion 6, which reads, “The Fund shall be guided in all its decisions
by the purposes set forth above”.
Alternative H to article I (p. Id ), which adds to the purposes
of the Fund the liquidation of war balances, was discussed in con
junction with Alternative G (p. lc ), dealing with the same sub
ject. The importance attached by a number of delegations to the
inclusion in the Agreement of some means of facilitating the set
tlement of this problem was fully developed. The considerations
which led to the omission of references to this problem from the
Joint Statement were once more brought out and the view that the
matter was one for (p. 2) direct settlement between creditors
and debtors was debated. Some delegations advanced the view that
balances of members now in enemy hands had as good a claim
to the assistance of the Fund in their liquidation as the balances
of one member held by another member.
Following its procedure of the previous day with regard to Al
ternative G, the Committee agreed to refer Alternative H to Com
mission I with a report of the nature of its discussions.
The Committee approved Alternative A, section 6 (p. 4 of
Document SA /1), which deals with payments when quotas are
changed. The Committee also discussed Alternatives B and C
relating to the reduction in initial gold payments by countries

PROCEEDINGS AND DOCUMENTS

217

suffering as a result of enemy occupation (p. 4a), and agreed to
refer these proposals to the ad hoc committee of Commission I
which is to deal with questions of special interest to liberated
countries.
The Committee passed over article IX, section 1 (p. 38), since
the necessary material was not available.
The suggestion was made that in view of the interest of
Committee 2 in the whole of article IX a joint session of the two
Committees on this article would be desirable. The Chairman
announced that, pending decision on this suggestion, Committee
1 would continue with its original assignment, which includes this
article.
(p. 3) The Committee discussed section 2 of article IX (p.
38), dealing with gold purchases based on parity prices, and
referred it to its drafting committee for clarification of statement.
The same action was taken with regard to paragraph (a) of the
proposed section 3 under article IX, concerning foreign-exchange
dealings based on par values. This appears as part of Alternative
A on p. 39, Document SA/1. Paragraph (b) of this Alternative
was agreed upon in substance but was referred to the drafting
committee for language clarification. With regard to paragraph
(c) of this Alternative, discussion disclosed various difficulties of
a legal nature. Emphasis was also given to the close relation
ship of this section to the work of Committee 2. The paragraph
was therefore referred to the drafting committee with instruc
tions to defer its report.
The Committee then considered Alternative A to section 4 of ar
ticle IX (p. 40). The discussion developed a substantial degree
of uncertainty as to the precise character of the exchange con
trol which member countries obligate themselves to eliminate
under this section. The Committee decided to request Commission
I to clarify the meaning of this provision, and to postpone further
consideration of it until Committee 2 had discussed the problem.

Document 173
CI/3/M4

Minutes of Meeting of Committee 3 of Commission I
O rg a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(J u ly 6, 1944, 10 a.m.)

At the fourth meeting of the Committee, held on July 6 at 10

218

MONETARY AND FINANCIAL CONFERENCE

a.m., the text of article VII, section 5 (p. 28), was accepted with
out change. Article VII, section 6 (p. 29) on depositories was
then given extended consideration. Paragraph (a) in Alternative
A was agreed to without change. Agreement was not reached on
paragraph (b), Alternatives A and B (pp. 29 and 29a), and the
question was referred to Commission I for decision. Alternative
C (p. 29a) was dropped by general consent. Section 7 was agreed
upon as proposed in Alternative A (p. 29).
The Committee resumed consideration of the question of man
agement of the Fund, article VII, section 2. New drafts for the
relevant sections were submitted. The original Alternatives A
and B were combined into a new draft (SA/1/17, Document 152).
Alternative C (SA/1/16, Document 151) and Alternative D
(SA/1/15, Document 150) were introduced at this meeting. After
discussion, it was apparent that no complete agreement was pos
sible in view of the differences of these drafts. Additional amend
ments to these drafts are to be submitted by several of the mem
bers. The Chairman was authorized to appoint a special com
mittee to consider the reconciliation of these drafts and to present
a new document to the Committee as soon as possible. The fol
lowing countries were named to this committee: Belgium, Cuba,
Netherlands, United Kingdom, and United States.
Article VII, section 8 (p. 30), and article VIII, section 1 (p. 34),
were not discussed, pending clarification of their possible assign
ment to Committee 4. The Committee recommended that the first
three clauses of article VII, section 11 (p. 33), be referred to
Committee 4. Since an amendment is proposed to the fourth clause,
action was postponed on this clause, while the fifth clause was
adopted as presented.
(N.B. In the Minutes of Meeting of July 4, 4 p.m., (document no. 113) in
lines 6 and 7 of the third paragraph, the words “Board of Governors” should
read “Executive Directors”.)

Document 174
CI/4/M 3

Minutes of Meeting of Committee 4 of Commission I
F o rm a n d S ta tu s o f t h e F u n d
(J u ly 6, 1944, 2:30 p.m .)

The third meeting of Committee 4 of Commission I was held
on July 6, at 2 :30 p.m. The Chair appointed the Delegates from
China, Cuba, Ecuador, Poland, Union of Soviet Socialist Re

PROCEEDINGS AND DOCUMENTS

219

publics, United Kingdom, and the United States as members of
the “asterisk committee”, with the Delegate from Cuba serving
as Chairman. Also serving as ex officio members of this Committee
are the Chairman, Reporter, and Secretary of Committee 4.
The Chairman of the subcommittee to review article XI, section
7, reported that the members, at the meeting held today, were
substantially in agreement. It was indicated by the Chairman
that the revised article XI, section 7, would be submitted to the
full Committee at the next scheduled meeting.
Article VII, section 8 (p. 30), was discussed extensively and
recommended for approval without change. At the suggestion of
one of the delegates, the Committee approved the discussion at
this meeting of article VII, section 11, “Miscellaneous Powers”,
items 1, 2, and 3 (p. 33), which had been previously assigned to
Committee 3. After considerable discussion of the interpretation
of the proposed wording of the first phrase under the heading,
it was agreed that the present wording would be revised and
stated as follows: “In order to carry out its purposes, the Fund
shall have full legal personality and, in particular, t o . . . ” With
this amendment in wording the Committee approved article VII,
section 11, (1), (2), and (3).
Following an extended discussion of article VIII, section 1, Al
ternative A, the Chair stated that a consensus of the delegates
indicated approval. During this discussion the delegate of the
country proposing Alternative B stated his reasons for recom
mending changes in Alternative B.
(p. 2) Article VIII, section 2 (p. 35), was not available for
discussion.
At a joint meeting of the Chairmen of Committees 3 and 4,
it was agreed that article VIII, section 2, would be discussed upon
its completion in Committee 3 instead of Committee 4, as pre
viously announced in the minutes of July 5, 1944.
In the case of article XI, “Amendments” (p. 45), there was a
consensus of the Committee that certain modifications be made
to cover the proposals made by the delegates of two of the
countries. This article was referred to the “asterisk committee”
for its consideration.
Article XII, section 1 (p. 46), was discussed at length. At the
conclusion of the discussion the Chairman stated that the con
sensus approved Alternative A but, because Alternative B was
an explanation of a part of Alternative A, recommended that the
“asterisk committee” meet and prepare one document for pres
entation to the Committee.

220

MONETARY AND FINANCIAL CONFERENCE
Document 175
C/S/M l

Procedural Decisions of the Steering Committee
(July 6, 19U)

The Steering Committee has determined upon the following
procedures in order to expedite the work of Commission I and its
Committees on the International Monetary Fund. It requests that
the officers and members of the Commission and its Committees
follow these procedures:
1. Commission I should meet next at 9:30 a.m. on July 10. In
accordance with the prior decisions of Commission I, the
reports of the Reporting Delegates of Committees should be
circulated long enough in advance of this meeting to permit
full consideration.
2. The Committees of Commission I will want to conclude their
consideration of all matters on which the texts of provisions
have been laid before them in time to allow the Reporting
Delegates opportunity to prepare their reports.
3. No matter should be referred to the Commission unless it
has been considered first by the Committees or their sub
committees.
4. The Chairman of Commission I is empowered, in advance
of the meeting of July 10, to appoint such ad hoc commit
tees as may be conducive to the securing of agreement on
particular questions which have not been resolved by the
Committees.

Document 177

(p. 16a)

sa/ 1/21

A l t e r n a t iv e B
(F or the first sentence of Joint Statem ent IV, I, substitute:)

The Government of the United States and the Government of
the United Kingdom will communicate to the Monetary Fund at
its inauguration the initial par value of their respective cur
rencies, expressed in terms of gold. Within one month, the other
member countries wishing to adhere to the Fund, will make
corresponding communications. Notwithstanding this rule, mem
ber countries that have been occupied by the enemy need not

PROCEEDINGS AND DOCUMENTS

221

make a definitive communication in the above sense until the re
construction of their monetary system has been completed, and
the initial communication may be limited to giving a provisional
par value. If the Board of Governors (Directors) of the Fund
finds a communicated initial (or pvosisional) par value reason
able, such par value shall come into force immediately for the
purpose of the Fund. If, however, the Board of Governors (Di
rectors) should deem the communicated par value to be open to
criticism, the question shall be the subject of further considera
tion with the member country in question, and the facilities of
the Fund shall not be available to the member until agreement
has been reached.
7 /6 /4 4

J.S. Art. IV

Sec.

Document 178
(p .

26d)

SA/1/22

A l t e r n a t iv e C
(For Combined Alternatives A and B for Joint Statement VII, 1,
2 and 3, and additional m aterial on page 27 of Document SA/1/17)

Substitute for 3:
B For every Executive Director there shall be elected at the same
e
time and according to the same rules an alternate with full
power to act for him when he is not present. An Executive Di
rector and his alternate need not represent the same country.
Substitute for 4:
4. The Executive Directors shall be continuously in function at
the principal office of the Fund.
Substitute for 8:
8. The Executive Directors shall co-opt a Managing Director who
shall not be a Governor or an Executive Director. The Man
aging Director shall be Chairman of the Executive Directors,
but shall have no vote except a casting vote in case of an equal
division. He may participate in meetings of the Board of
Governors, but shall not vote at such meeting. He shall, how
ever, be eligible for election as Chairman of the Board of
Governors. The Managing Director shall cease to hold office
when the Executive Directors will so decide. He will not take
the chair in the meeting taking such decision.
7/ 6/44

J.S. Art. VII
Sections 1, 2 and 3

222

MONETARY AND FINANCIAL CONFERENCE
Document 179

(p. 26e)-

S A /l/2 3

A lte rn a tiv e D
(For Combined A lternatives A and B for Joint Statem ents VII, 1,
2 and 3, and additional m aterial on page 27 of Document SA/1/17)

Substitute for 2:
2. There shall be 12 Executive Directors, of whom 6 shall be
appointed by the six members having the largest quotas and 6
shall be elected biennially in accordance with the provisions
of Schedule B, by all the Governors other than those appointed
by the members having the 6 largest quotas. Persons chosen
as Executive Directors need not be Governors.
Substitute for 4:
4. Employ such staff as shall be necessary to conduct the business
of the Fund, provided that, in employing staff due regard shall
be paid to the fair representation of the nationals of member
countries.
7 /6 /4 4

J.S. Art. V II

Sections 1, 2 and 3

Document 180

(p. 36b)

S A /1/24

A lte rn a tiv e

# Section 3. (a) When a government ceases to be a member
in any of the cases referred to in sections---------above, settle
ment of all accounts between the Fund and such governments
shall, with reasonable dispatch, be made in accordance with b)
and c) below.
(b) The Fund shall be obligated to pay to such government
an amount equal to its quota, plus any other amounts due to it
from the Fund, less any amounts due to the Fund from such
government, including charges accruing after the government
ceases to be a member; but no payment shall be made prior
to six months from the date when such government ceases to
be a member.
(c) Payments shall be made in the member’s currency and
if the Fund’s holdings in that currency are not sufficient, in gold
and in the other currencies held by the Fund, in accordance with
the principles governing liquidation of the Fund (section 4

PROCEEDINGS AND DOCUMENTS

223

below) and as if liquidation took place at the day of the mem
ber's withdrawal.
(d) If the Fund's holdings of the currency of such country
exceed the amount due to such government, that government
shall be obligated to redeem such excess currency in gold or in
the currencies of members which at the time of actual redemp
tion are convertible under Article III, Section 6 (J.S. Ill, 5)
within three years from the date of withdrawal, or such longer
period as may (p. 36c) be fixed by the Fund. Such redemption
shall not be effected at a rate in any quarterly period greater
than one-twelfth of the Fund's excess holdings at the date of
withdrawal of the currency to be redeemed plus current ac
cruals of such currency during such quarterly period. If the
Government fails to redeem such excess currency in this man
ner, the Fund may liquidate in any market that currency at
the same rate in an orderly manner. The withdrawing govern
ment unconditionally guarantees at all times the unrestricted
use of such currency for the purchase of goods or for the pay
ment of other sums due to it or to its nationals. Further, the
withdrawing government shall indemnify the Fund against any
loss resulting from exchange depreciation until such currency
has been used or redeemed.
(e) Any member desiring to obtain the currency of a former
member shall acquire the currency by purchase from the Fund,
to the extent that such member has access to the resources of the
Fund and such currency is available under the preceding para
graph.
7 /6 /4 4

J.s. Art. V III

Sec. 2 and 3

Document 181
(p .

29b)

S A /l/2 5

A l t e r n a t iv e D
(Supplement to A lternative A, section 6-b)

"At least one half of the holdings of gold of the Fund shall be
held in the designated depository in the member in which the
Fund has its principal office, and U % of the holdings of gold of the
O
Fund shall be held in the designated depositories in the remaining
three members having the largest quotas.
7 /6 /4 4

J.S. Art. VII
Additional Sections (6 & 7)

224

MONETARY AND FINANCIAL CONFERENCE
Document 182

(p .

14c)

SA /1/26

A l t e r n a t iv e C
(The following m aterial has been suggested as an addition to Article III)

Section 11. Furnishing Information.
The Fund may require members to furnish it with such infor
mation as it deems necessary for its operations. In requesting
information the Fund shall, however, take into consideration
the varying ability of members to furnish the data asked for, and
members shall be under no obligation to furnish information in
such detail that the affairs of individuals or corporations are
disclosed. Subject to this proviso members undertake to furnish
the desired information in as detailed and accurate a manner as
is practicable, and to avoid mere estimates so far as possible. The
minimum amount of information necessary for the effective dis
charge of the Fund’s duties includes the following.
1. Official holdings at home and abroad, of (a) gold, (b)
foreign exchange.
2. Holdings at home and abroad by banking and financial
agencies other than official agencies of (a) gold, (b) foreign
exchange.
3. Production of gold.
4. Gold exports and imports according to countries of destina
tion and origin.
5. Total exports and imports of merchandise, in terms of
local currency values, according to countries of destination
and origin.
7 /7 /4 4

(p. 14d)
6. International balance of payments, including (a) trade
in goods and services, (b) gold transactions (c) known
capital transactions, and (d) other items.
7. International investment position, i.e., investments within
the country owned abroad and investments abroad owned
by residents of the country so far as it is possible to furnish
this information.
8. National income.
9. Price indices. (Indices of commodity prices in wholesale
and retail markets and of export and import prices.)
10. Buying and selling rates for foreign currencies.
11. Exchange controls. (Comprehensive statement of exchange

PROCEEDINGS AND DOCUMENTS

225

controls in effect at the time of assuming membership in
the Fund and changes thereafter as they occur.)
12. Where official clearing arrangements exist, details of
amounts awaiting clearance in respect of commercial and
financial transactions, and of the time lag for each group.
7/7/44

J.S. Art. ill
Additional Section (11)

Document 183

(p. 17b)

S A / 1/2 7

A l t e r n a t iv e B
(F o r A rticle IV, Section 4, of the Joint Statement)

After consulting the Fund, a member country may change the
established parity of its currency, provided the proposed change,
inclusive of any.previous change since the establishment of the
Fund, does not exceed 10% for the country having a quota ten
per cent or more of the aggregate quotas, and not to exceed 20%
in the case of a country having less than ten per cent of the aggre
gate quotas. In the case of application for a further change not
covered by the above and not exceeding 10 per cent for the coun
try having a quota ten per cent or more of the aggregate quotas,
and not to exceed 20 per cent in the case of a country having less
than ten per cent of the aggregate quotas, the Fund shall give its
decision within two days of receiving the application, if the ap
plicant so requests.
7 /7 /4 4

J.S. Art. IV

Section 4

Document 186
C II/ 3 / B 1

As of Adjournment
10:20 a.m., July 7, 1944

Status of Business Before Committee 3
of Commission I.
Article VII— Management of the Fund.

Sec. 1.

Board of Governors. Disposed of (see Minutes, Doc.
103).

226

Sec. 2.
Sec. 3.

Sec. 4.
Sec. 5.
Sec. 6.
Sec. 7.
Sec. 8.

Sec. 9.
Sec. 10.
Sec. 11.

MONETARY AND FINANCIAL CONFERENCE

The Executive Directors. Pending (referred to sub
committee) .
Voting. Disposed of with reference to Board of Gov
ernors; pending with reference to Executive Direc
tors. Sent to sub-committee with reference to Execu
tive Directors (see Minutes, Doc. 147, paragraphs 1
and 2).
The General Manager. Pending (referred to sub
committee) .
Publication of Reports. Disposed of (see Minutes,
Doc. 173, lines 1-3).
Depositories. Disposed of (see Minutes, Doc. 173,
lines 3-8).
Form of Holdings of Currency. Disposed of (see Min
utes, Doc. 173, line 10).
Relationship to Other International Organizations.
Disposed of (referred to Committee 4 by agreement
between the Chairmen of Committee 4 and Commit
tee 3).
Location of Offices. Pending.
Distribution of the Net Income of the Fund. Disposed
of (see Minutes to be published).
Miscellaneous Powers. Pending, sub-section 4, (see
Minutes, Doc. 173, page 2, lines 5-6). Disposed of sub
section 5 (see Minutes, Doc. 173, line 7). Disposed of
sub-sections 1, 2 and 3 (referred to Committee 4 by
agreement between the Chairmen of Committee 3 and
Committee 4).

7 /7 /4 4

(p. 2)
Article VIII— Withdrawal From, the Fund.

Sec. 1.

Right of Members to Withdraw. Disposed of (referred
to Committee 4 by agreement between the Chairmen
of Committee 3 and Committee 4).
Sec. 2. Suspension of Membership or Compulsory With
drawal. Pending (no material available).
Sec. 3. Settlement of Accounts with Countries Ceasing to be
Members. Pending (additional alternative to be fur
nished).
Sec. 4. Liquidation of the Fund. Pending (no material avail
able) .

PROCEEDINGS AND DOCUMENTS

227

Article III— Transactions with the Fund.

Sec. 11.

Furnishing Information. Pending (referred to Com
mittee 3 by agreement between the Chairmen of
Committee 3 and Committee 2).

7 /7 /4 4

Document 187
DP/9

Mexican Delegation

Submitted for Consideration by Commission H I

Agreement on Earmarked Gold.
the practices for earmarking gold might not coincide
in all particulars in different countries;
W h e r e a s earmarked gold is part of the monetary reserve of such
countries and therefore should be free from all restrictions
as to its use, transfer, and transportation; and
W h e r e a s , in order to avoid unnecessary movements of gold and
thereby reduce to a minimum the cost and risks involved, it
would be convenient to adopt a common international policy
with respect to such gold;
T h e M e x i c a n D e l e g a t io n submits the following proposal for
the consideration of Commission III:
1. The countries represented at this Conference agree to extend
to earmarked gold the same treatment and immunities they
may agree to give to the gold and other assets of the Inter
national Monetary Fund.
W hereas

Document 189
DP/10

Mex/con Delegation

Mexico’s Proposal on Silver
Submitted for consideration by Commission III
W hereas it is undeniable that about half of the world’s population
prefers silver coins to any other kind of currency for every
day use and trade, as well as for hoarding;

228

MONETARY AND FINANCIAL CONFERENCE

W hereas the economically weaker silver-using nations of the

world, upon becoming members of the proposed International
Monetary Fund, would in fact agree, among other things, to
collaborate with the stronger nations in the establishment of
a world-wide free market for gold, and in the maintenance of
a stable and fair price for that metal;
W hereas it is just and fair that, in due correspondence, the
economically stronger countries should agree to extend their
cooperation to the economically weaker ones, in order that
silver may also have an ample market and a relatively stable
and fair international price;
W hereas , to comply fully with the proposed agreement, the silverusing peoples would need proportionately larger, and there
fore more burdensome, monetary reserves, since besides their
normally heavy investments in silver coins, they would also
have to maintain a gold reserve proportionately as large as
that of any gold-using nation;
W hereas it is not fair that the economically weaker peoples should
carry the whole weight of their silver stocks, as well as the
heavy losses caused by the wide fluctuations of their inter
national value, and carry besides their proportionate share
of gold stocks;

(p. 2)
W hereas it has been fully demonstrated by the far-sighted policy

of the United States during the past decade, that it is not
only possible but equally feasible, without the slightest
danger to the monetary equilibrium even of a single nation, to
maintain stable the relative international prices of gold and
silver, and to stabilize both prices in terms of a single cur
rency ;
W hereas it should be relatively easier and less costly for the
United and Associated Nations to establish a fair and reason
able international price for silver than to fix one for gold, in
asmuch as the present value of the visible stocks of gold is
around thirty billion dollars, while that of silver is only a fifth
or a sixth of that amount;
W hereas one of the main purposes of this Conference should
evidently be, not to select gold or anything else as a metallic
standard which should lead the world back into the rigidity
of an arbitrary yardstick for national and international
values, but rather to lay the foundations of a well-integrated
world monetary system, wherein certain important currencies
generally accepted in international trade, as well as gold and

PROCEEDINGS AND DOCUMENTS

229

silver itself, can and should be used to great advantage, each
to fulfill a different international function;
W h e r e a s in the proposed agreement it is foreseen that the
Monetary Fund may be forced to change the price of gold
in terms of all the member countries’ currencies, in order to
provide additional means of international payments;
Wh e r e a s silver, because of its traditional monetary use by
approximately half of the inhabitants of the world, can and
should be used as a collateral monetary metal for (p. 3)
meeting such increases in credit requirements of member
countries;
W h e r e a s in principle there can be no better grounds for pegging
the price of gold in terms of the United Nations’ currencies,
than those for preventing the wide fluctuations of the inter
national price of silver, in relation to the same currencies;
W h e r e a s the wide fluctuations in the international value of silver,
besides placing a heavy risk on the shoulders of those
countries least able to carry it, are the direct source of recur
rent dislocation of the monetary system of the silver-using
countries; and
W h e r e a s it is technically possible to achieve a minimum price
for gold and a maximum price for silver in terms of all the cur
rencies of member countries;
The Mexican Delegation presents for the consideration of this
Conference the following tentative plan to link silver with
gold for international monetary purposes:
I. That the Monetary Fund should buy and sell from and to
member countries gold and silver together and jointly, at
the fixed rate in terms of member currencies and in a ratio
of, say, one ounce of pure gold to ten ounces of fine silver.
II. That member countries would agree to buy and sell from
and to the Fund, and from and to one another, gold and
silver together and jointly, at the same rate and in the
same ratio as above.
III. That the Fund should have power:
a. To alter permanently, by a four-fifths majority vote, the
proportions of gold and silver set forth above in I and
II, only when a permanent and fundamental change in
the average yearly rate of (p. 4) production and con
sumption of both metals has taken place; and
b. To eliminate silver entirely but temporarily from its
joint purchases and sales of gold and silver, and to
permit member countries to do likewise, only when and

230

MONETARY AND FINANCIAL CONFERENCE

just as long as, due to an increase in the price of silver,
over and above an agreed ceiling, the price of one ounce
of pure gold in the basic composite unit as defined under
I and II above, should be less than the agreed minimum
price of thirty-five U. S. dollars per ounce.
T he Mexican Delegation submits to this Conference the fol
lowing
RESOLUTION

A.-That the Fund shall determine the feasibility of linking
silver with gold for international monetary purposes, in
accordance with the formula pre-inserted or any other
formula;
B.-That the Fund shall be authorized to carry out whatever
policy it deems appropriate as regards the proper role and
function of silver within the international monetary
structure.

Document 191

( p . 43b)

SA /1/29

A l t e r n a t iv e A
(Suggested as additional section of A rt. IX)

S ection 8. To cooperate with other member countries in order
to enable them to render really effective such controls and restric
tions as these countries might adopt or continue, with the approval
of the Fund, for the purpose of regulating international move
ments of capital.
7 /7 /4 4

J.s. Art. IX
Additional Section (8)

Document 192

Second Report of the Drafting Committee
of Committee 1 of Commission I
J u ly 7, 19U

The Drafting Committee met on July 7, 1944 to consider the
matters referred to it by the Full Committee on July 5 and 6,1944.

PROCEEDINGS AND DOCUMENTS

231

The following members were present: Mr. Goldenweiser, Chair
man, Dr. Taiang, Dr. Gudin, Mr. Mladek, Mr. Melville, Professor
Robbins, Mr. Morozov, and Mr. Varvaressos, and Mr. Brown and
Mr. Young from the Secretariat.
The Drafting Committee recommends the following language
for Article II, Section 1—Countries Eligible for Membership:
Article II, Section 1
“At the outset the members of the Fund shall be those of
the countries represented at the United Nations Monetary
and Financial Conference whose governments accept mem
bership in the Fund.
“Subsequently membership in the Fund shall be open to other
countries at such times and in accordance with such terms
as may be prescribed by the Fund.”
The Drafting Committee recommends the following language
for Article II, Section 4 — Adjustment of Quotas (page 3):
“The Fund shall at intervals of five years review and, if it
deems it appropriate, adjust the quotas of the members.
It may also, if it thinks fit, consider at any other time the
adjustment of any particular quota at the request of the mem
ber concerned. A four fifths majority vote shall be required
for any change in quotas and no quota shall be changed with
out the consent of the member concerned.”
The Drafting Committee recommends the following language
for Article II, Section 5—Initial Payments (page 4) :
“Each member shall pay in gold as a minimum either (a)
twenty-five percent of its quota, or (b) ten percent of its
official holdings of gold and gold convertible exchange,1
whichever is smaller o n ------------. In the case of any member
occupied by the enemy whose holdings are not ascertainable
as o f ------------, the Fund shall fix an appropriate alternative
date. The data necessary to determine official holdings of gold
July 7, 1944

and gold convertible exchange shall be (p. 2) furnished by the
members as provided in this Agreement. Each member shall
pay the balance of its quota in its own currency.”
The Drafting Committee recommends the following language
aThe phrase “gold and gold convertible exchange” is subject to definition
and to such change in terminology as may be agreed upon.
749013 — 48— 16

232

MONETARY AND FINANCIAL CONFERENCE

for Article IX, Section 2—Gold Purchases Based on Parity Prices
(page 38) :
“Monetary authorities or agents of member countries shall
not buy or sell gold at prices* which vary from the agreed
parity of their currencies by more than a prescribed margin/’
The Drafting Committee wishes to report that if any revisions
are later included under Article IX, Section 1—Purpose and Scope
of Additional Undertakings (p. 38 of Document SA /1), which
affect Section 2 of this Article, the Committee wishes to recon
sider its recommendation.
The Drafting Committee recommends the following language
for Article IX, Section 3, Paragraph (a )—Foreign Exchange
Dealings Based on Par Values (p. 39 of Document SA/1) :
“The Fund shall prescribe the margin by which the maximum
and minimun rates for exchange transactions in member
currencies may differ from parity. This margin, however,
shall not exceed---------percent of the parity.”
This recommendation is made by the Drafting Committee in
order to make clear that the purpose of the paragraph is to pre
scribe the spread within which transactions may be carried out
and not to fix the level or parity of exchange rates which is dealt
with in other provisions of the agreement. The discussions of the
Drafting Committee, however, developed a difference of view as
to whether it is intended that the buying and selling rates falling
within the permissible spread should be agreed upon by the Fund
and each member, or whether the member country should have full
freedom in this respect. The Drafting Committee considered this
to be a matter of substance and not falling within its competence,
and referred the question to the Full Committee.
The Drafting Committee recommends the following language
for Article IX, Section 3, Paragraph (b) :
“Each member undertakes, through appropriate measures
authorized under this agreement, not to permit within its
jurisdiction an appreciation or depreciation of (p. 3) the
exchange value of its own currency in terms of gold beyond
the range prescribed under (a) above. In particular, a mem
ber whose monetary authorities in fact freely buy and sell
gold or gold convertible exchange within the prescribed range,
to settle international transactions, shall be deemed to be
fulfilling this undertaking.”
Some members of the Drafting Committee felt that it would

PROCEEDINGS AND DOCUMENTS

233

be necessary to obtain clarification of the precise meaning of
the word “freely” as used in this provision.
The Drafting Committee deferred consideration of Article IX,
Section 3, Paragraph (c), in accordance with its instructions
from the Full Committee.
The Drafting Committee considered again Article I, Section 4
of the agreement which deals with the promotion of exchange
stability as one of the purposes of the Fund. The Drafting Com
mittee wishes to inquire of the Full Committee whether the pro
cedure for changing exchange rates has been agreed upon since
it can not make a recommendation on this section until that is done.
The Drafting Committee also considered Article II, Section 3—
Time and Place of Payment (p. 2 of Document SA /1), which
was referred to it by the Committee on July 4, 1944. After con
sidering the possibility that the language in this clause might
enable a country to be a member of the Fund for a considerable
time without furnishing its quota, the Drafting Committee decided
that the language of the clause was not susceptible of such
interpretation and was, therefore, satisfactory. The delegate from
Czechoslovakia wishes the Drafting Committee to report that his
agreement with the wording of this section is contingent upon
the manner in which the Conference finally decides to deal with
Alternative B to this provision, which provides for special
arrangements for the payment of quotas by countries whose cur
rency systems have been disorganized as a result of the war.

Document 194

(p. 43a)

s a / i /2 8

A l t e r n a t iv e B
(Suggested as Article IX, Section 7)

Restrictions on Taxation of the Fund, Its Employees,
and Obligations
(a) The Fund, its assets, property, income and its operations,
and transactions authorized by these articles of Agreement shall
be exempt and immune from all taxation and from all customs
duties. The Fund shall also be exempt and immune from liability
for the collection or payment of any tax or duty.
(b) No member, or any political subdivision or any taxing
authority thereof, shall impose or collect any tax on or measured

234

MONETARY AND FINANCIAL CONFERENCE

by salaries paid by the Fund to its executive directors, officials
and employees who are not citizens of such member.
(c) No member, or any political subdivision or taxing authority
thereof, shall impose or collect any taxation on any obligation or
security issued by the Fund, or any dividend or any interest
thereon, by whomsoever held or received:
(i) which discriminates against such obligation, dividend, or
interest, because of its origin; or
(ii) which is applied solely on the basis of the place or'cur
rency in which it is issued, made payable or paid, or solely
on the basis of the location of any office or place of busi
ness maintained by the Fund.
(d) Each member shall inform the Fund of the detailed action
it has taken to grant the exemptions and immunities provided
for in this section and in section 5 respectively. Differences which
may arise between such member and the Fund as to the sufficiency
of propriety of any action shall be resolved in accordance with
the provisions of Article XII, Section 1.
7 /7 /4 4

J.S. Art. IX
A d d itio n a l Sec. (7)

Document 195

(p . i f )

S A /1 /3 0

A lte rn a tiv e J
(Substitute for Joint Statem ent I, subdivision 2)

To facilitate the expansion and balanced growth of interna
tional trade, the fuller utilization of the resources of economically
under-developed countries, and the promotion and maintenance
in the world of a high level of employment and real income,
which must be primary objectives of economic parley.
7 /7 /4 4

J.S. Art. I

Document 196

(p. 40a)

S A /l/3 1

A lte rn a tiv e

The following has been suggested as an addition to Article IX,
Subdivision 4, Alternative A :—

PROCEEDINGS AND DOCUMENTS

235

Nothing in this section shall prevent a member from determin
ing the extent to which it will be prepared to incur any financial
commitment to any other member.
7 /7 /4 4

J.S. Art. IX
Section 3

Document 198

CI/4/S1

Committee 4 of Commission I

Report of the Subcommittee to Consider Article IX,
Section 7— and of the Asterisk Committee
J u ly 7,1944

At the fourth meeting of Committee 4 the Chairman of the
subcommittee to consider article IX, section 7 read the document
approved by his Committee.
Following the regular meeting of Committee 4 the Asterisk
Committee met to consider articles XI and XII.
Copies of the articles referred to above as approved by their
respective committees are enclosed.
M a n u e l B. L l o sa

Chairman of Committee 4
Col. C h a r les D y so n

Secretary, Committee 4
7 /7 /4 4

(p.33a)
J o in t S t a t e m e n t —No Provisions
The following material has been suggested as an addition to
Article VII.
Alternative B

# Section 11. Miscellaneous Powers.
In order to carry out its purposes, the Fund shall have full legal
personality and, in particular, may:
(1) Make contracts;
(2) Acquire and dispose of movable and immovable property;
and:
(3) Institute legal proceedings in any court of competent
jurisdiction;

236

MONETARY AND FINANCIAL CONFERENCE

(4) Employ such staff as shall be necessary to conduct the
business of the Fund; and
(5) Adopt such rules or regulations as may be necessary or
. appropriate to conduct the business of the Fund.
7 /7 /4 4

J . S .A r t .V II
A d d itio n a l Section

(p. 45a)
J o in t S ta te m e n t— N o

Provisions

Alternative C
Substitute for Article XI—Amendment

A ny proposal to introduce modifications in the agreement,
whether emanating from a member a Governor or an Executive Di
rector, shall be communicated to the Chairman of the Board of
Governors who shall bring the proposal before the Board. If the
proposed amendment is approved by the Board by a majority of
the aggregate votes, the Fund shall, by circular letter, ask the
governments of all the members whether they accept the pro
posed amendment. When three-fifths of the members, having fourfifths of the aggregate votes, have accepted the proposed amend
ment, the Fund shall certify the fact by means of a proces verbal,
which it shall communicate to the governments of all members.
However, the acceptance of the amendment by the governments
of all members is required in the case of modifications of (1) the
right to withdraw from the Fund; (2) the provision that no
change in a member’s quota shall be made without its consent;
(3) the provision that no change may be made in the par value
of a member’s currency except on the initiative of that member.
The amendment will enter into force for all members three
months after the date of the proces verbal unless a shorter period
is specified in the circular letter.
7 /7 /4 4

J.S. Art. XI
(A d dition al Article)

(p. 46a)
J o in t S t a t e m e n t — No Provisions
The following material has been suggested as part of an addi
tional Article (XII) on interpretation of the Agreement.

Alternative C
Article XII— Interpretation of the Agreement

Section 1. Interpretation.
(a) All questions of interpretation of the provisions of this

PROCEEDINGS AND DOCUMENTS

237

agreement arising between any member and the Fund or between
any members of the Fund shall be submitted to the Executive Di
rectors of the Fund for their decision. If the question is one which
involves a dispute affecting particularly one (or more) member (s)
and that (or those) member (s) are not represented among the
Executive Directors by a Director appointed by it (or them) then
the provisions of Article VII, section 7, document 152, apply.
(b) In any case where the Executive Directors have given a
decision under paragraph (a) above, any member may require
that the question be submitted to the Board, and the decision of
the Board shall be final. Pending the result of the reference to
the Board of Governors, the Fund may (so far as is necessary) act
on the basis of the decision of the Executive Directors.
(c) Whenever a disagreement arises between the Fund and a
country which has ceased to be a member, or between the Fund
and any member country after liquidation of the Fund, such dis
agreement shall be submitted to arbitration by a tribunal of three
arbitrators, one appointed by the Fund, another by the country
involved and an umpire who, unless the parties otherwise agree,
shall be appointed by the President of the Permanent Court of
International Justice. The umpire shall have full power to settle
all questions of procedure in any case where the parties are in
disagreement with respect thereto.
7 /7 /4 4

Art. XII, Sec. 1
(A d dition al Article)

Document 199

(P.31)

J OU R N A L
UNITED

NATIONS

No. 8

MONETARY

AND

FINANCIAL

Bretton W o o d s, N ew Ham pshire

ORDER

THE

CONFERENCE

July 8, 1944

DAY

Meetings for Saturday, July 8
9:30
9:30
11:30
11:30
2:30

a.m.
a.m.
a.m.
a.m.
p.m.

Committee 1 of C o m m i s s io n I
Committee 3 of Commission I
Committee 2 of Commission I
Committee 4 of Commission I
Agenda Committee of Commission III

Auditorium
The Hemicycle
Auditorium
The Hemicycle
Room B

238

MONETARY AND FINANCIAL CONFERENCE
R e s u m e s o f C o m m it t e e M e e t in g s

Committee 2 of Commission I
Operations of the Fund
(July 7, 2:30 p.m.)

The fifth meeting of Committee 2 of Commission I was held on
July 7 at 2 :30 p.m. The Chairman read Document 175, “Procedural
Decisions of the Steering Committee”, and asked the Committee
members to cooperate with the Chairman to expedite the work of
the Committee.
It was pointed out that the last paragraph of Document 166
should be read as an addendum to Alternative A (p. 19, Docu
ment SA /1).
The Committee continued its discussion of article IV, Par
Values of Member Currencies. The Committee agreed to report
to Commission I a difference of opinion on section 5. The Com
mittee approved Alternative A (p. 19) and the addendum referred
to above (erroneously circulated as p. 16). The Committee ap
proved Alternative A (p. 20).
The Committee then began its discussion of article V, Capital
Transactions, sections 1 and 2, and approved Alternative A (p. 21)
and Alternative A (p. 22) with minor amendments. The Com
mittee agreed to defer discussion of article VI, Apportionment
of Scarce Currencies, Alternative A (p. 23a).
(The minutes of this meeting are being distributed separately
as document no. 205.)
Committee 3 of Commission I
Organization and Management of the Fund
(July 7, 9:30 a.m.)

The Committee amended article VII, additional section 10 (p.
32), by substituting “The Board of Governors” for “The Fund”.
With this amendment, the section was adopted. Article III, section
11 (p. 14), was explained, but discussion was deferred on the
request of some of the members. Alternative C to article VII,
sections 1, 2, and 3 (Document 178, p. 26d), was presented to
the Committee and was referred to the subcommittee already
dealing with the question of the executive directors and methods
of election. The Committee took no action on article VII, sections
1, 2, and 3, pending a report of its special subcommittee. Discussion
of article VIII, section 3 (p. 36), was postponed until the next

PROCEEDINGS AND DOCUMENTS

239

meeting to allow time for the consideration of a proposed Alterna
tive B (p. 36b).
(The minutes of this meeting are being distributed separately
as document no. 200.)
(P. 33)
Committee 4 of Commission I
Form and Status of the Fund
(J u ly 7, 2 :30 p.m.)

The fourth meeting of Committee 4 of Commission I was held
on July 7 at 2:30 p.m. The Chairman of the subcommittee to
review article IX, section 7, read the document agreed upon by
the members of the Committee, with the observation that one of
the delegates reserved decision on a part of the document read to
the full Committee.
(The minutes of this meeting are being distributed separately
as document no. 204.)
N o tice

All delegations are reminded that corrections or additions to
be included in the definitive printed list of delegations will be re
ceived until 6 p.m. today at the Journal office (room 69). The
manuscript for the list is now being prepared in final form for
delivery to the printer. Corrections and revisions which have been
requested through the Office of the Secretary General and the Reg
istration and Information Desk have been entered, as well as
changes requested by delegations, whose offices were open when
members of the Journal staff called yesterday afternoon.
If no changes are requested, it will be presumed that the list as
printed is correct.
B o n d W a g o n T our

New Hampshire's Invasion Bond Wagon, which has been tour
ing the State selling Fifth War Loan bonds, will arrive at the
United Nations Monetary and Financial Conference at about 9
a.m. today.
The caravan of Army vehicles carrying war-front exhibits is in
the Bretton Woods area, and New Hampshire War Finance Com
mittee officials thought that delegates to the Conference would be
interested in a demonstration of one of the methods being used
in the United States to raise funds to finance the prosecution of
the war. There will be no solicitation of subscriptions at the
Conference.
(p. 34) Navy Chief Petty Officer William Leary is in charge

240

MONETARY AND FINANCIAL CONFERENCE

of the Bond Wagon. Sgt. Armand Deaudoin, injured veteran of the
North African campaign, has been the principal bond salesman
of the tour and has spoken at numerous bond rallies throughout
the State. He has been decorated by the United States and by the
Free French for heroic rescue work in an ammunition-explosion
disaster in which he received severe injuries.
Among the exihibits accompanying the Bond Wagon is a float
from a Japanese Zero shot down in the Pacific area.
New Hampshire has as its goal sale of enough “E” bonds to
finance construction of a destroyer to be named the U.S.S. Frank
Knox, after the late Secretary of the Navy, whose home was
in Manchester.
(p .35)
L ist o f D o c u m e n t s I ssu e d a s o f
J u l y 7, 1944
Subject

Statem ent by Mexican Delegation
Statem ent by U ruguayan Delegation
Journal No. 6
Minutes of Commission I, Committee 1,
July 5, 4 p.m.
Order of the Day
Minutes of Commission I, Committee 2,
July 5, 5:30 p.m.
Minutes of Commission I, Committee 3,
July 5, 4 p.m.
Minutes of Commission I, Committee 4,
July 5, 5:30 p.m.
Additional Pages to SA/1
n
ii
n
ii
ii
ii
ii
ii
ii

a
ii
ii
ii
ii
ii
ii
ii
ii

ii
ii
ii
a
ii
ii
ii
ii
ii

a
ii
ii
ii
ii
ii
ii
ii
ii

Memorandum to be Submitted to Commission I,
Committee 2, by Egyptian Delegation
News Bulletin No. 4
Representation of Delegations on Commissions
and Committees
Mexican Delegation Proposal on Silver—
Address Delivered Before Committee 2,
Commission I, July 5, 1944

Symbol No.

Doc. No.

PR/16
PR/17
J /6

135
136
137

CI/1/M 3
GD/17

138
139

CI/2/M 3

140

CI/3/M 3

141

CI/4/M 2
SA /1/8
SA /1/9
SA /1/10
SA/1/11
SA/1/12
SA/1/13
SA /1/14
SA/1/15
SA/1/16
SA/1/17

142
143
144
145
146
147
148
149
150
151
152

DP/5

153
154

GD/19

156

D P/6

157

PROCEEDINGS AND DOCUMENTS
Subject

Spanish Translation, Joint Statem ent by
Experts on Establishm ent of International
M onetary Fund, April 21, 1944

Symbol No.

241
Doc. No.

PC/6

158

SA/1/18
D P/7

161
162

SA/1/19
SA/1/20

164
165
166

DP/8
J /7

167
168

SA/2
GD/22

169
170

CI/2/M 4

171

CI/1/M 4

172

CI/3/M 4

173

CI/4/M3

174

C /S /M l
SA/1/21
SA/1/22
SA/1/23
SA/1/24
SA/1/25
SA/1/26
SA/1/27
PR/18

175
176
177
178
179
180
181
182
183
184

PR/19
CII/3/B1
DP/9

185
186
187

PR/20
DP/10
PR/18
SA/1/29

188
189
190
191

CI/1/DC2

192

(P. 36)
Additional Page to SA/1
Indian Delegation Proposal
Additional Page to SA/1—Uniform
Changes in P a r Values
News Bulletin No. 5
Additional Page to SA/1
Statement Made by Mahmoud Saleb El Falaky,
Delegate for Egypt, in Support of
A lternative H, Article I, Before the
Meeting of Committee 1 of Commission I
on July 6, 1944
Journal No. 7
Agenda of Commission II—Agreement to Establish
a Bank for Reconstruction and Development
Order of the Day
Minutes of Committee 2, Commission I,
July 6, 2 :30 p.m.
Minutes of Committee 1, Commission I,
July 6, 10 a.m,
Minutes of Committee 3, Commission I,
July 6, 10 a.m.
Minutes of Committee 4, Commission I,
July 6, 2 :30 p.m.
Procedural Decisions of Steering
Committee, July 6
News Bulletin No. 6
Additional Pages to SA/1

y
y
y
y
y
y
y
y
y
y
y
y

»
y
y
y
y
y
y
y
y
y
y

»
fy
it
y
>
u
j
j

Press Release No. 18, Address by Dr. K’ung

(P. 37)
Press Release No. 19 (Invasion Bond Wagon)
Status of Business Before Committee 3, Commission II
Agreement on Earm arked Gold—Mexican Delegation
Press Release No. 20, Statem ent by Delegate of Union
of South A frica
Mexico’s Proposal on Silver
Address by Dr. K’ung (Rerun of Doc. 184)
Additional Page of SA/1
Second Report of the D rafting Committee of Commit
tee 1 of Commission I, July 7

242

MONETARY AND FINANCIAL CONFERENCE
Document 200
C I/3 /M 5

Minutes of Meeting of Committee 3 of Commission I
O r g a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(July 7, 1944, 9:30 a.m.)

The Committee amended article VII (additional section 10)
(p. 32), by substituting “The Board of Governors” for “The Fund”.
With this amendment, the section was adopted. Article III, section
11 (p. 14), was explained, but discussion was deferred on the re
quest of some of the members. Alternative C to article VII, sec
tions 1, 2, and 3 (Document 178, p. 26d), was presented to the
Committee and was referred to the subcommittee already dealing
with the question of the executive directors and methods of elec
tion. The Committee took no action on article VII, sections 1, 2,
and 3, pending a report of its special subcommittee. Discussion
of article VIII, section 3 (p. 36), was postponed until the next
meeting to allow time for the consideration of a proposed Alterna
tive B (p. 36b).

Document 201 (156)
G D /2 3

Representation of Delegations on Commissions
and Committees
C o m m is s io n I

CZECHOSLOVAKIA
Ladislav Feierabend
Ja n Mladek
Antonin Basch
Josef Hanc
Ervin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo

PROCEEDINGS AND DOCUMENTS
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch
D.
C. Abbott
J. A. Blanchette
CHILE
Luis Alamos
German Riesco
A rturo Maschke
Fernando Mardones
CHINA
Tingfu F. Tsiang
COLOMBIA
Carlos Lleras Restrepo
COSTA RICA
Luis D. Tinoco Castro
Jose Raquel Oreamuno
CUBA
Ing. E. I. Montoulieu
Oscar Garcia Montes
Ramiro Guerra
Luis Machado
J. M. Menocal
Miguel A. Pirez
Eduardo D urruthy
Felipe Pazos
(P. 2 )
HAITI
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
Magnus Sigurdsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A.
D. Shroff
IRAN
Abol H asan Ebtehaj
Hosein Navab
Taghi N assr
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombo

243

EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Agustin Alfaro Moran
ETH IO PIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos
Alexander Argyropoulos
GUATEMALA
Manuel Noriega Morales

NICARAGUA
Guillermo Sevilla Sacasa*
J. Jesus Sanchez Roig
Leon DeBayle
NORWAY
Wilhelm Keilhau
Ole Colbjornsen
Arne Skaug
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Pedro G. Beltran
Juvenal Monge
Emilio Barreto Latzeb
P H IL IPP IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael Mathay

244

MONETARY AND FINANCIAL CONFERENCE

LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Antonio Espinosa de los
Monteros
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
H. Riemens
J. J. Polak
C. H. Schoch
A. Broches
NEW ZEALAND
W alter Nash
B. C. Ashwin
B. R. Turner
A. G. B. Fisher
E. C. Fussell

POLAND
Leon Baranski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
No designation
U N ITED KINGDOM
Lord Keynes
R. H. Brand
Sir W. Eady
R. Opie
U N ITED STATES OF AMERICA
F. M. Vinson
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No. designation
YUGOSLAVIA
Vladimir Rybar
C o m m is s io n

Committee 1
Chairman—Dr. Tingfu F. Tsiang (China)
Reporter—Kyriakos Varvaressos (Greece)
Secretary—W. A. Brown
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Baron Rene Boel
BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
CHILE
Luis Alamos
CHINA
Te-Liang Soong
COLOMBIA
No designation

PROCEEDINGS AND DOCUMENTS
COSTA RICA
No designation
CUBA
Ramiro Guerra
Garcia Montes
Eduardo D urruthy
CZECHOSLOVAKIA
Jan Mladek
Antonin Basch
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E.
F. Carbo
S. E. Duran Ballen
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

245

INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Doshmukh
A. D. Shroff
IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

(p. 2)
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
H. Riemens
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. Turner
NICARAGUA
Leon DeBayle
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
NORWAY
Wilhelm Keilhau
Arne Skaug
K aaro Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Ju an Chavez
Emilio Barreto
P H IL IPP IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
S. Kirkor
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. P. Morozov
F.
P. Bystrov
P. Titov
N. Ivanov
UNITED KINGDOM
Lionel Robbins
A. W. Snelling
UNITED STATES OF AMERICA
Mable Newcomer
F. M. Vinson
E. A. Goldenweiser
E. A. Collado
H.
Edmiston
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
Rodolfo Rojas
Cristobal L. Mendoza
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

246

MONETARY AND FINANCIAL CONFERENCE
C o m m issio n I

Committee 2
Chairman—N. A. Maletin (U.S.S.R.)
Vice Chairman—W. A. Mackintosh (Canada)
Reporter—Robert Mosse (French Delegation)
Secretary—Karl Bopp
Assistant Secretary—Alice Bourneuf
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Georges Theunis
BOLIVIA
No designation
BRAZIL
Francisco Alves dos
Santos Filho
CANADA
L. Rasminsky
W. A. Mackintosh
J. J. Deutsch
CHILE
German Riesco
CHINA
Tsu-Yee Pei
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Garcia Montes
Eduardo D urruthy
Felipe Pazos
CZECHOSLOVAKIA
Antonin Basch
Ja n Mladek
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. D uran Ballen
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETH IO PIA
George A. Blowers
FRENCH DELEGATION
A. Istel
J. de Largentaye
R. Mosse
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
S. Frim annsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A.
D. Shroff
IRAN
No designation
IRAQ
Ibrahim Kamel
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

PROCEEDINGS AND DOCUMENTS
(P. 2 )
NETHERLANDS
D. Crena de Iongh
A. Andriesse
A. Bestebreurtje
J. J. Polak
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. T urner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
Ole Colbjornsen
Arne Skaug
Kaare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Juvenal Monge
Emilio G. Barreto
PH IL IPP IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
Zygmunt Karpinski

UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Maletin
A.
Smirnov
L. Andreev
M. Chekmarev
N. Kuznetzov
UNITED KINGDOM
D. H. Robertson
G. L. F. Bolton
H. E. Brooks
UNITED STATES OF AMERICA
E. E. Brown
M. S. Eccles
J. P. Wolcott
E. M. Bernstein
J. W. Angell
W. Gardnei
A.
H. Hansen
E. G. Collado
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
Rodolfo Rojas
J. J. Gonzalez Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m issio n I

Committee 3
Chairman—Arthur de Souza Costa (Brazil)
Reporter—Ervin Hexner (Czechoslovakia)
Secretary—Malcolm Bryan
Assistant Secretary—J. H. Bitterman
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation
BRAZIL
Valentim Boucas
749013— 48— 17

247

EL SALVADOR
Agustin Alfaro Moran
Victor Manuel Valdes
Raul Gamero
ETHIOPIA
George A. Blowers
FRENCH DELEGATION
J. de Largentaye
R. Aglion

248

MONETARY AND FINANCIAL CONFERENCE

CANADA
J. J. Deutsch
J. A. Blanchette
D. C. Abbott
CHILE
A rturo Maschke
CHINA
Te-Mou Hsi
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Luis Machado
J. M. Menocal
Miguel Pirez
CZECHOSLOVAKIA
Ervin Hexner
Josef Hanc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. Duran Ballen
E. F. Carbo
EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

GREECE
Alexander Argyropoulos
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
No delegation
ICELAND
M. Sigurdsson
INDIA
Chintaman Deshmukh
Theodore Gregory
IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LIBERIA
W alter F. W alker
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation

(P. 2)
NETHERLANDS
J. W. Beyen
C.
H. Schoch
NEW ZEALAND
A. G. B. Fisher
E. C. Fussell
B. C. Ashwin
B. R. Turner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
A rne Skaug
Ole Colbjornsen
K aare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation

UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
Slobin
M. Idashkin
N. Cheklin
UN ITED KINGDOM
Sir Eady
W. E. Beckett
G.
L. F. Bolton
R. T. G. Miles
U NITED STATES OF AMERICA
R. F. W agner
C. W. Tobey
A. F. Luxford
B. Cohen
E. M. Bernstein
0. Cox

PROCEEDINGS AND DOCUMENTS
PERU
Andres F. Dasso
PH IL IP PIN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay
POLAND
Janusz Zoltowski

URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
J. J. Gonzalez Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

I
Committee 4
Chairman—Manuel B. Llosa, Peru
Reporter—Wilhelm Keilhau, Norway
Secretary—Colonel Charles M. Dyson
Assistant Secretary—Lauren Casaday
C o m m is s io n

AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Joseph Nisot
BOLIVIA
No designation
BRAZIL
Octavio Bulhoes
CANADA
D. C. Abbott
A. F. W. Plum ptre
J. A. Blanchette
CHILE
Fernando Mardones
CHINA
Victor Hoo
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Luis Machado
Miguel Pirez
J. M. Menocal
CZECHOSLOVAKIA
Josef Hanc
Ervin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
Sixto E. Duran Ballen
Esteban F. Carbo

EGYPT
Sany Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETHIOPIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
Athanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
Sir Chintaman D. Deshmukh
Sir Theodore E. Gregory
IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. L. Loombe
LIBERIA
William E. Dennis

249

250

MONETARY AND FINANCIAL CONFERENCE

(p . 2 )
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
A. H. Philipse
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fisher
B. R. Turner
NICARAGUA
Leon DeBayle
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
NORWAY
Wilhelm Keilhau
Ole Colbjornsen
K aare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Manuel B. Llosa
Juvenal Monge
Emilio Barreto Latzeh
P H IL IP P IN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay

POLAND
Leon Baranski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutinian
F. Bystrov
N. Panchenko
UNITED KINGDOM
N. B. Ronald
W. E. Beckett
J. W. Russell
UN ITED STATES OF AMERICA
D. Acheson
B. Spence
L. T. Crowley
0 . Cox
L. S. Pasvolsky
R. B. Brenner
URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
Cristobal L. Mendoza
Alfonso Espinoza
Manuel Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n I I

Chairman—Lord Keynes (U. K.)
Vice Chairman—Luis Alamos Barros (Chile)
Reporting Delegate—Georges Theunis (Belgium)
Secretary—A. Upgren
Assistant Secretary—A. Smithies
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation

FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos
Athanase Sbarounis

PROCEEDINGS AND DOCUMENTS
BRAZIL
No designation
CANADA
L. Rasminsky
W. A. Mackintosh
A. F. W. Plum ptre
J. J. Deutsch
CHILE
No designation
CHINA
Yee-Chung Koo
COLOMBIA
Miguel Lopez Pum arejo
COSTA RICA
Francisco de P. Gutierrez Ross
Jose Rafael Oreamuno
CUBA
No designation
CZECHOSLOVAKIA
Ladislav Feierabend
Antonin Basch
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
No designation
EGYPT
No designation
EL SALVADOR
No designation
ETHIOPIA
George A. Blowers
(P. 2 )
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. T urner
NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
Ole Colbjernsen
Wilhelm Keilhau
Arne Skaug
PANAMA
Guillermo Arango
Narciso E. Garay

251

GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
•HONDURAS
Julian R. Caceres
ICELAND
Magnus Sigurdsson
INDIA
Sir A. J. Raisman
IRAN
Taghi N assr
A. H. Ebtehaj
A. A. D aftary
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Lumb
LIBERIA
James E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Daniel Cosio Villegas
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
A. H. Philipse
A. Andriesse
A. Bestebreurtje
PH IL IP PIN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael Mathay
POLAND
Ludwik Grosfeld
UNION OF SOUTH AFRICA
M. H. de Kock
J. E. Holloway
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
No designation
UNITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation

252

MONETARY AND FINANCIAL CONFERENCE

PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Andres F. Dasso
Juvenal Monge

URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
V ENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar
C o m m is s io n

Committee 1
Chairman—Representative of Netherlands
Reporter—Representative of Costa Rica
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Baron Rene Boel
BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
No designation
CHILE
Luis Alamos
CHINA
Te-Mou Hsi
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Ramiro Guerra
Eduardo D urruthy
CZECHOSLOVAKIA
E rvin Hexner
Ja n Mladek
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
No designation

FRENCH DELEGATION
A. Istel
J. de Largentaye
R. Mosse
GREJECE
K. Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
A. Asgeirsson
INDIA
Sir Chintaman D. Deshmukh
IRAN
No designation
IRAQ
No designation
LIBERIA
Jam es E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
J. W. Beyen
A. H. Philipse
J. J. Polak
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. Turner

PROCEEDINGS AND DOCUMENTS

253

EL SALVADOR
No designation
ETH IO PIA
B latta Ephrem T. Medhen

NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle

(P. 2 )
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Andres F. Dasso
Juvenal Monge
Emilio G. Barreto
PH IL IP PIN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
Leon Baranski

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
A. Morozov
E. Bystrov
P. Titov
UNITED KINGDOM
No designation
U NITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m issio n II

Committee 2
Chairman—Representative of Cuba
Reporter—Representative of Australia
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Georges Theunis
BOLIVIA
No designation
BRAZIL
Francisco Alves dos
Santos Filho
CANADA
No designation
CHILE
German Riesco
CHINA
Tsu-Yee Pei
COLOMBIA
No designation
COSTA RICA
No designation

EL SALVADOR
No designation
ETHIOPIA
George A. Blowers
FRENCH DELEGATION
Andre Istel
Robert Mosse
Jean de Largentaye
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Sveinbjorn Frimannsson
INDIA
No designation
IRAN
No designation

254

MONETARY AND FINANCIAL CONFERENCE
IRAQ
No designation
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
N ETHERLANDS
D. Crena de Iongh
A. Andriesse
A. B estebreurtje

CUBA
Garcia Montes
Eduardo D urruthy
CZECHOSLOVAKIA
Ja n Mladek
Antonin Basch
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E.
F. Carbo
S. E. Duran Ballen
EGYPT
No designation
(P. 2 )
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. Turner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Juvenal Monge
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
Leon Baranski
UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Chechulin
A. Smirnov
A.
Borisov
Mrs. L. Gouseva
U NITED KINGDOM
No designation
U NITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m issio n I I

Committee 3
Chairman—Representative of Brazil
Reporter—Representative of Peru
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange

ETH IO PIA
George A. Blowers
FRENCH DELEGATION
j # < Largentaye
je
R. Aglion

PROCEEDINGS AND DOCUMENTS
BELGIUM
B.
S. Chlepner
BOLIVIA
No designation
BRAZIL
Francisco Alves dos
Santos Filho
CANADA
No designation
CHILE
A rturo Maschke Tornero
CHINA
Ts-Liang Soong
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Luis Machado
Manuel Menocal
CZECHOSLOVAKIA
Antonin Basch
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. Duran Ballen
E.
F. Carbo
EGYPT
No designation
EL SALVADOR
No designation
(P. 2 )
NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Juan Chavez

255

GREECE
Alexander Argyropoulos
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
M. Sigurdsson
INDIA
No designation
IRAN
No designation
IRAQ
No designation
LIBERIA
W alter E. W alker
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
J. W. Beyen
H.
Riemens
NEW ZEALAND
A. G. B. Fisher
E. C. Fussell
C. B. Ashwin
B. R. T urner

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
Slobin
M. Idashkin
N. Cheklin
U NITED KINGDOM
No designation
UN ITED STATES OF AMERICA
No designation
URUGUAY
Hugo Garcia

256

MONETARY AND FINANCIAL CONFERENCE

P H IL IP P IN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay
POLAND
Janusz Zoltowski

VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

II
Committee 4
Chairman—Representative of India
Reporter—Representative of Poland
C o m m is s io n

AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Joseph Nisot
BOLIVIA
No designation
BRAZIL
Valentim Bougas
CANADA
No designation
CHILE
Fernando Mardones Restat
CHINA
Kuo-Ching Li
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Felipe Pazos
Miguel Perez
CZECHOSLOVAKIA
Josef Hanc
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
Sixto E. Duran Ballen
Esteban F. Carbo
EGYPT
No designation
EL SALVADOR
No designation
ETHIOPIA
B latta Ephrem T. Medhen

FRENCH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
Athanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
No designation
IRAN
No designation
IRAQ
No designation
LIBERIA
James F. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
No designation
NETHERLANDS
C. H. Schoch
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fishe
B. R. Turner
NICARAGUA
J. Jesus Sanchez Roig
Leon DeBayle
Guillermo Sevilla Sacasa

PROCEEDINGS AND DOCUMENTS
(P. 2 )
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Manuel B. Llosa
Alberto Alvarez Calderon
PH IL IPP IN E COMMONWEALTH
Jaime Hernandez
Ismael M athay
POLAND
Stanislaw Kirkor
UNION OF SOUTH AFRICA
No designation

UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutinian
F. Bystrov
N. Panchenko
UNITED KINGDOM
No designation
UNITED STATES OF AMERICA
No designation
URUGUAY
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

III
Chairman—Eduardo Suarez (Mexico)
Vice Chairman—Mahmoud Saleh El Falaky (Egypt)
Reporting Delegate—A. G. B. Fisher (New Zealand)
Secretary—0 . Schmidt
Assistant Secretary—L. Casaday
C o m m issio n

AUSTRALIA
Leslie G! Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron de Gruben
BOLIVIA
No designation
BRAZIL
Valentim Bou^as
Eugenio Gudin
Octavio Bulhoes
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch
CHILE
Luis Alamos
German Riesco
A rturo Maschke Tornero
Fernando Mardones Restat

257

ECUADOR
No designation
EGYPT
No designation
EL SALVADOR
No designation
ETHIOPIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
GREECE
Kyriakos Varvaressos
Alexander Argyropoulos
Athanase Sbarounis
GUATEMALA
Manuel Moriega Morales
HAITI
Andre Liautaud
Pierre Chauvet
HONDURAS
Julian R. Caceres

253

MONETARY AND FINANCIAL CONFERENCE

CHINA
Kuo-Ching Li
COLOMBIA
Sr. Victor Dugand
COSTA RICA
Fernando Madrigal
J. Rafael Oreamuno
CUBA
Manuel Menocal
Garcia Montes
CZECHOSLOVAKIA
Ladislav Feierabend
E rvin Hexner
Antonin Basch
Josef Hanc
Ja n Mladek
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
(P -2)
MEXICO
Eduardo Suarez
Rodrigo Gomez
Victor Urquidi
NETHERLANDS
J. W. Beyen
D.
Crena de Iongh
NEW ZEALAND
W alter Nash
Bernard Carl Ashwin
Edward C. Fussell
Bruce R. T urner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Pedro G. Beltran
Andres F. Dasso
Alberto Alvarez Calderon
Juvenal Monge

ICELAND
Asgeir Asgeirsson
INDIA
No designation
IRAN
A. A. D aftary
Hosein Navab
IRAQ
Senator Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
Claude E. Lumb
LIBERIA
W alter F. W alker
LUXEMBOURG
Hughes Le Gallais

P H IL IP P IN E COMMONWEALTH
Anclres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael M athay
POLAND
Leon Baranski
UNION OF SOUTH AFRICA
S. F. N. Gie
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
D. Slobin
M. M. Idashkin
N. I. Cheklin
U NITED KINGDOM
No designation
U NITED STATES OF AMERICA
No designation
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

PROCEEDINGS AND DOCUMENTS

259

Document 202
Cl/2

Commission I: Status of Committee Assignments
A s of 6:00 p.m., July 7, 19bA

Com m ittee 1 — Purposes , Policies, and Quotas of the Fund

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
Without
Decision

No Actionor
Decision
Deferred

Article I —Purposes and
Policies of the Fund

Sec. 1

Joint S ta te
ment

Sec. 2

Drafting
Committee’s
revision

Sec. 3

Drafting
Committee's
revision

Sec. 4

Sec. 5

Alt. A

Sec. 6

Drafting
Committee’s
revision

Additional paragraph
(Alt. A, p. la)

Alt. A

Alt. F,

Alt. G

Alt. H

Article I I —Subscription
to the Fund

Sec. 1—Countries Eli
gible for Membership

Sec. 2—Quotas

260

MONETARY AND FINANCIAL CONFERENCE

Article and Section

Language
Accepted

Referred to
Drafting or
Other Sub
com m ittee

Referred to
Commission I
Without
Decision

Sec. 3—Time and Place
of Payment

No Action
or
Decision
Deferred

Alt. B (p.2a) and Alt.
B & C (p.4a)

Alt. C (p. 2b) and D
(p. 4b)

(p . 2 )
(Article 11)

Sec. 4 —A djustm ent
of Quotas

Sec. 5— I n i t i a l
Payments

S ec. 6— P a y m e n ts
w hen Q u o ta s are
Changed

Alt. A

Article I X —Obligations
of Member Countries

Sec. 1—Purpose and
scope of additional
undertaking

S ec. 2 — G o ld p u r
c h a s e s b a s e d on
parity prices

Sec. 3—Foreign Ex
c h a n g e d e a lin g s
based on par values

S ec. 4 — E x c h a n g e
controls on Current
Payments

C larifica t i o n of
la n g u a g e
req u ested
from Com
mission I

PROCEEDINGS AND DOCUMENTS

261

(p. 3)

Com m ittee 2 — Operations of the Fund

Article and Section

Language
Accepted

No Action
or
Decision
Deferred

Referred to
Commission I
W ithout f
Decision

Referred to
Drafting or
Other Sub- f
Committee

Article I I I — T ransac

tions with the Fund
S e c . 1 — A g e n c ie s
D ealing w ith th e
Fund
Sec. 2 — C on d itio n s
u p o n w h ic h a n y
Member May Pur
chase C u rre n c ie s
of Other Members
par. (1)

Alt. A

par. (2)

par. (3)

par. (4)

Alt. A

Final Sentence

Alt. A

Sec. 2(a) — Conditions
G o v e r n in g P u r
chases for C apital
Transfers

Alt. A

Sec. 3 — D e c la r in g
Members Ineligible
to use R esources
of the Fund

Alt. A

Alt. E (p.6d)
Sec. 4 — Limitations
on O p e ra tio n s of
Fund

Alt. A

Sec. 5 — O p eratio n s
for Purpose of Pre
venting Currencies
Becoming Scarce
par. (1)
par. (2)

A l t . A as
amended

1
1

262

MONETARY AND F I NA NC IA L CONFERENCE

(P- 4 )

Article and Section

Language
Accepted

(.Article I I I )
Sec. 6—M ultilateral
International
Clearing

Sec. 7—A cquisition
b y M e m b e r s of
Currencies of Other
Members for Gold

Referred to
Drafting or
.Other SubCommittee

Referred to
Commission I
Without
Decision

par. (d) re
ferred to
drafting
Committee

No Action
or
Decision
Deferred

Alt. A

Sec. 8—Other Acqui
sitions of Gold by
the Fund

Sec. 9—Transferabil
ity and G uarantee
of A s s e ts of th e
Fund

Sec. 10—Charges and
Commissions

Sec. 12—C onsidera
tion of Representa
tio n s of th e Fund

Article I V —Par Values

of Member Currencies
Sec. 1—Par Values of
th e C urren cies of
Members

Alt. A

£ec. 2

Sec. 3

Sec. 4

Sec. 5— U n i f o r m
Changes in Par Value
Sec. 6—Protection of
th e A ssets of th e
Fund

Revised
Alt. A

PROCEEDINGS AND DOCUMENTS

Article and Section

Referred to
Drafting or
Other SubCommittee

Language
Accepted

Referred to
Commission I
Without
Decision

263
No Action
or
Decision
Deferred

Sec. 7—Separate cur
re n c ie s w ith in a
M ember’s Jurisdic
tion
Alt. A
(P . 5 )
A rticle V — Ca pi t a l
Transactions

Sec. 1—Use of R e
sources of the Fund
for T ra n s fe rs of
Capital
Sec. 2—Limitations
on C o n t r o l s of
Capital Movements

Alt. A, as
amended

Alt. A,
amended

Article V I —Apportion
ment of Scarce Curren
cies

Sec . 1— G e n e r a l
Scarcity

Sec. 2—Scarcity of the
Fund’s holding

Article X —T ransition

al Arrangements
Sec. 1—Exchange re
strictions and cur
rency arrangements
and p ra c tic e s r e
tained

Sec. 2—Withdrawal of
exchange r e s tr ic
tions

Sec. 3—Policy of the
F u n d d u r i n g t he
transition period

Sec. 4

749013—48—JB

264

MONETARY AND FINANCIAL CONFERENCE

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
Without
Decision

No Action
or
Decision
Deferred

A r tic le X I I I —Fi nal

Provisions
Sec. 5—F ix in g in i
tial par values

(P. 6)
Com m ittee 3 — Organisation and Management of the Fund

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
Without
Decision

No Action
or
Decision
Deferred

A r t i c l e I I I —Transac

tions with the Fund
Sec. 11—Furnishing
Information

Article V I I —M anage

ment of the Fund
Sec. 1—Board of Gov
ernors

Combination
of Al t . A &
A l t . B , as
amended

Sec. 2— E x e c u t i v e
Directors

Sec. 3—Voting

Sec. 4—The General
Manager

Sec. 5—Publication
of Reports

Alt. A

Sec. 6—Depositories
par. (a)

Alt. A

par. (b)

A lts. A &
B referred
to Commis
sion I

PROCEEDINGS AND DOCUMENTS

Article and Section

Language
Accepted

Se c . 7 — F o r m a n d
H oldings of C u r
rency

Referred to
Drafting or
Other SubCommittee

265
No Action
or
Decision
Deferred

Referred to
Commission I
Without
Decision

Alt. A

Sec. 9—Location of
Office

Sec. 10—Distribution
of Net income of
the Fund

Alt. A,
amended

Sec. 11—M is c e lla
neous Powers
item (4)
item (5)

Alt. A

(P. 7 )
A r t i c l e V I I I — Wi t h

drawal from the Fund
Sec. 2—Suspension of
Membership or Com
pulsory Withdrawal

Sec. 3—Settlement of
accounts with coun
tries ceasing to be
members

Sec. 4—Liquidation of
Fund

Com m ittee 4 — Forms and Status of the Fund
i
Article and Section

i
!
1
1

Language
Accepted

Referred to
Commission I
Without
Decision

Referred to
Drafting or
Other SubCommittee

No Action
or
Decision
Deferred

Article V I I —M anage

ment of the Fund
Bee. 8—R elationship
to other international
organizations

i
!
t

Alt. A
i

266

MONETARY AND FINANCIAL CONFERENCE

Article and Section

Sec. 11—Miscellaneous
powers. Introduc
tion and items (1),
(2), and (3).

Language
Accepted

Referred to
Drafting or
Other SubCommittee

No Action
or
Decision
Deferred

Referred to
Commission I
W ithout
Decision

A l t . A , as
amended

Article V I I I —Withdraw
al from the Fund

Sec. 1—Right of Mem
bers to Withdraw

Alt. A

Article I X —Obligations
of Member Countries

Sec. 5—Immunity of
Assets of the Fund

Alt. A

Sec. 6—Immunity from
Suit

In c lu d e d in
new Sec. 5

Sec. 7—Restrictions on
taxation of Fund, its
employees and obli
gations

(p . 8 )

A r t i c l e X I —A m e n d

ments

Article X I I —Interp re
tation of the Agreement

Sec. 1—I n te r p r e ta
tion

Sec. 2—D efin itio n s

S ec . 3 — E f f e c t on
Other International
Commitments

A r t i c l e X I I I — Fi na l

Provisions
Sec. 1—E n try In to
Effect

PROCEEDINGS AND DOCUMENTS

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

267

Referred to
Commission I
W ithout
Decision

No Action
or
Decision
Deferred

Sec . 2 — E f f e c t i v e
date of Agreement

Sec. 3— C alling th e
In itia l M eeting of
the Fund

Sec. 4—Ag e n d a of
Initial Meeting

Article X I V —Execution
of the Agreement

Document 203
( p . 14 e)

SA/1/32

A lte r n a t iv e D
(Suggested as an alternative to Joint Statement, A rt. I ll)

The member countries shall furnish the Fund with the informa
tion on the following data:
1. Gold holdings of the Central Bank and Treasury and their
changes.
2. Gold convertible exchange holdings of the Central Bank and
Treasury.
3. Movement of capital.
4. Foreign trade data.
5. Other items of the balance of payments.
6. Rates of exchange and their changes.
The Fund may arrange to obtain additional information by
agreement with the member country.
7/ 7/ 44

J.S. Art. Ill
Additional Section (11)

268

MONETARY AND FINANCIAL CONFERENCE
Document 204
CI/4/M4

Minutes of Meeting of Committee 4 of Commission I
F o rm a n d S ta tu s o f t h e F u n d
{July 7, 1944, 2:30 p.m.)

The fourth meeting of Committee 4 of Commission I was held
on July 7 at 2:30 p. m. The Chairman of the subcommittee to
review article IX, section 7, read the document agreed upon by
the members of the Committee. He stated that one of the dele
gates reserved decision on a part of the document read to the full
Committee.
As the remaining material assigned to this Committee had been
referred to subcommittees or was not available for distribution,
the meeting was thereupon adjourned.

Document 205
CI/2/M5

Minutes of Meeting of Committee 2 of Commission I
O p e r a t io n s o f t h e F u n d
(July 7, 1944, 2:30 p.m.)

The Chairman read the “Procedural Decisions of the Steering
Committee” (Document 175) and urged the necessity of handling
all items with dispatch.
The Committee continued its discussion of article IV, Par
Values of Member Currencies.
On section 5, it was decided to report to the Commission the
differences of view indicated in Alternatives A (p. 18, Document
SA/1), B (p. 18a), and C (p. 18b).
On section 6 (p. 19), the Chairman announced that the last
paragraph of Document 166 had been misplaced and was intended
to be an addition to section 6. The Committee approved section 6
as thus amended.
Section 7, Alternative A (p. 20) was approved with the sug
gestion that the word “however” in line 5 be deleted.
The Committee discussed article V, Capital Transactions.
Section 1, Alternative A (p. 21) was approved with the amend

PROCEEDINGS AND DOCUMENTS

269

ment that the words “make net” be inserted between the words
“not” and “use” in line 1 and that the word “of” be inserted be
tween the words “use” and “the” in line 1. Section 2, Alternative
A (p. 22) was approved with the amendment that the words
underscored in line 1 be replaced by the following: “Members
may exercise such controls as are necessary to regulate interna
tional capital movements”.
The Committee deferred discussion of article VI, Apportion
ment of Scarce Currencies (p. 23).
At its next meeting the Committee will receive reports from the
ad hoc and the “asterisk” subcommittees and will reconsider items
that were deferred at earlier meetings.

Document 207
(p .

23b)

SA/1/33

S u b s t it u t e A l t e r n a t iv e A

General Scarcity
If the Fund finds that a general scarcity of a particular cur
rency is developing, the Fund may so inform members and may
issue a report setting forth the causes of the scarcity and con
taining recommendations designed to bring it to an end. In the
preparation of such report there shall participate a representa
tive of the member the currency of which is involved.
S e c t i o n 2 . Scarcity of the Fund’s Holdings.
If it becomes evident to the Fund that the demand for a
member’s currency seriously threatens the Fund’s ability to
supply that currency, the Fund whether or not it has acted
under Section 1 above, shall formally declare such currency
scarce and shall thenceforth apportion the existing and accruing
supply of the scarce currency with due regard to the relative
needs of members and the general international economic situ
ation and any other pertinent considerations. The Fund shall
also issue a report concerning its action. The formal declaration
shall operate as an authorization to a member, after consulta
tion between such member and the Fund, temporarily to limit
the freedom of exchange operations in the affected currency.
Subject to the provisions of Article IX, Section 2 (J.S.), the

# S e c t io n 1.

270

MONETARY AND FINANCIAL CONFERENCE

member shall have complete jurisdiction in determining the
nature of such limitations, but they shall be no more restrictive
than is necessary to limit the demand for the scarce currency
to the supply of it held by, or accruing to, the member in ques
tion; and they shall be relaxed and removed as rapidly as con
ditions permit. This authorization shall cease to be in effect
whenever the Fund formally declares the currency in question
no longer scarce.
7/7/44

J.S. Art. VI
Secs. 1 & 2

(p . 2 3 c )
# S e c t i o n 3.

SA/1/33

Administration of Restrictions on Scarce Curren
cies. Any member imposing restrictions in respect of the
currency of any other member pursuant to the provisions of
this Article shall give sympathetic consideration to any repre
sentations which may be made by such other member regard
ing the administration of such restrictions.
# S e c t i o n 4. Effect of Other International Agreements on Re
strictions on Scarce Currencies. Members agree not to invoke
the obligations of any engagements entered into with other
members prior to this Agreement in such a manner as will
prevent the operation of the provisions of this Article.

7/7/44

J.S. Art. VI
Secs. 3 & 4

Document 208

(p.l7a)

SA/1/34

A l te r n a t iv e A

The members agree that they will collaborate with
the Fund to promote exchange stability, to maintain orderly
exchange arrangements among members, and to avoid competi
tive exchange alterations.
S e c t i o n 3. A member shall not propose a change in the par
value of the currency except to correct a fundamental disequi
librium.
S e c t i o n 4. An alteration in the par value of a member’s cur
rency may be made only on the proposal of the member and,
only after consultation with the Fund. When a proposal for

* S e c t i o n 2.

PROCEEDINGS AND DOCUMENTS

271

alteration is made, the Fund shall first take into account the
changes, if any, which have already taken place in the par value
of the member’s currency as agreed initially with the Fund. If
the proposed change, together with all previous changes, whether
increases, or decreases,
* (a) does not exceed 10 percent of the initial par value, the
Fund shall raise no objection
* (b) does not exceed a further 10 percent of the initial par
value, the Fund may either concur in or object to such
a proposal, but shall declare its attitude within 72 hours
if the member so requests.
* (c) is not within (a) or (b) above, the Fund may either
concur in or object to such a proposal, but shall be en
titled to a larger period than 72 hours in which to
declare its attitude.
7 /7 /4 4

J.S, Art. IV
Secs. 2 -4

(p. 17aa)
* S ection 4a. In examining any proposed change the Fund
shall take into consideration the extreme uncertainties prevail
ing when the par values of the currencies of members were
initially determined. Moreover, the Fund shall not object to a
proposed change necessary to restore equilibrium because of
domestic social or political policies of the member or because of
its economic policies insofar as these contribute to the mainte
nance of a high level of employment and real income.
* S ection 4b. The Fund shall concur in a proposed change
under Section 3(b) or (c) if it is satisfied that the change is
required to correct a fundamental disequilibrium or that it will
not affect the international transactions of the member in
volved. If the Fund is not so satisfied and deems the proposal un
justified, having regard to the proper working of the Fund,
the Fund shall object to the proposed change.
* S ection 4 c . If a member alters the par value of its currency
despite the objection of the Fund, in cases where the Fund is en
titled to object the member shall be ineligible to use the re
sources of the Fund unless the Fund othemvise determines and
if, after the expiration of a reasonable period of time, the dif
ference between the member and the Fund continues, the matter
shall be subjcct to the provisions of Article VIII, Section---------.
7 /7 /4 4

J.S. Art. IV
Secs. 2 -4

272

MONETARY AND FINANCIAL CONFERENCE
Document 209

(P .

48)

SA /1 /3 5

J o in t S t a te m e n t—

No provisions

The following material has been suggested as part of an addi
tional Article (XII) on interpretation of the agreement.
A l t e r n a t iv e A

Effect on Other International Commitments.
Where under this Agreement a member is authorized in the
special or temporary circumstances specified in the Agreement
to maintain or establish restrictions on exchange transactions,
and there are other engagements between members entered
into prior to this Agreement which conflict with the application
of such restrictions, the parties to such engagements will con
sult with one another with a view to making such mutually ac
ceptable adjustments as may be necessary. The provisions of
this Article shall be without prejudice to the operation of
Article VI, Section 4.

# S e c t io n 3.

7 /1 /4 4

Art. X II, Sec. 2
(A d dition al Article)

Document 210

(P. 3 5 )

SA /1 /3 6

J o in t S t a te m e n t—

No Provision

The following material has been suggested as an addition to
Article VIII.
A lte rn a tiv e A

If a member fails to fulfill any of its obligations
under Article IX [other appropriate Articles, if any, may be
mentioned here] or acts otherwise in a manner which is con
trary to the purposes of the Fund, the Fund may declare the
member ineligible to use the resources of the Fund.
# S e c t io n 2a. If, after the expiration of a reasonable period the
member persists in its failure to fulfill any of its obligations
under Article IX, or continues to act in a manner which is con
trary to the purposes of the Fund, or a difference between a
member and the Fund under Article IV, Section 6, continues,
that member may be required to withdraw from membership
in the Fund by a decision of the Board of Governors carried
by a majority of the governors representing a majority of the
aggregate voting power.

# S e c t io n 2.

PROCEEDINGS AND DOCUMENTS

273

2b. The Board of Governors shall make regulations
securing that before action is taken against any member under
Section 3, above, the member shall be informed in reasonable
time and given a proper opportunity for stating its case.

# S e c t io n

7/7/44

J.S. Art. VIII
A d d ition a l Sections

Document 211

(p. 37)

SA /1 /3 7

J o i n t S t a t e m e n t —No

provision

The following material has been suggested as an addition to
Article VIII.
A lte rn a tiv e A.

Liquidation of the Fund
(a) The Fund may not be liquidated except after a decision
taken by a majority of the aggregate votes in the Board of
Governors. In an emergency, if the Executive Directors decide
that liquidation of the Fund may be necessary, they may by a
majority vote temporarily suspend all transactions of the Fund,
pending an opportunity for further consideration and action
by the Board of Governors.
(b) If a decision to liquidate the Fund is carried, the Fund
shall forthwith cease to engage in any activities except those
incident to an orderly liquidation of its assets and the settle
ment of its liabilities.
(c) The liabilities of the Fund, other than the repayment
of quotas, shall have priority in the distribution of the assets
of the Fund. In meeting each such liability the Fund shall use
its holdings of the currency in which the liability is due. If these
holdings are insufficient, it shall use its gold. If this is insuffi
cient to complete the payment, it shall draw on the currencies
held by the Fund as far as possible in proportion to the quotas
of the members.
(d) The net assets of the Fund available after the discharge
of the above liabilities shall be distributed as follows:
(i) The Fund shall divide its holdings of the currency of
each member by the quota of such member and thus
ascertain the percentages resulting from this division.

■^Se c t io n 4.

7 /7 /4 4

J.S. Art. V III
A d d ition a l Section

274

MONETARY AND FINANCIAL CONFERENCE

(p. 37a)
The members with regard to whose currency this divi
sion produces the lowest and second lowest percentages
are hereafter referred to as the members having the
lowest and second lowest percentages respectively.
(ii) All members shall have returned to them in their own
currencies a proportion of their quotas equal to the low
est percentage ascertained under (i).
(iii) There shall then be returned to the member having the
second lowest percentage the remainder of its currency
held by the Fund. The member having the lowr per
est
centage whose currency held by the Fund has been ex
hausted under (ii) above shall have returned to it in gold
a percentage of its quota equal to the percentage of quota
returned to the member having the second lowest percent
age. Alternatively, if there is not sufficient gold, then
the currency of the member having the second lowest
percentage shall be divided between it and the member
having the lowest percentage in such manner that each
will have been repaid the same proportion of its quota.
All other members shall have returned to them amounts
in their respective currencies which represent a like pro
portion of their quotas.
(d) Distribution of the available assets shall be continued on
the principles established above until all available currencies
7 /7 /4 4

J.S. Art. V III
A d d itio n a l Section

(p. 37b)
have been exhausted.
(e) Each member shall redeem its own currency held by an
other member as a result of the liquidation of the Fund. Re
demption shall be made in gold or in such other manner as may
be agreed by the members. Unless the members involved other
wise agree, redemption shall be made within three years but
shall not be effected at a rate in any quarterly period greater
than one-twelfth of the amount distributed to any other mem
ber. If the member fails to redeem its currency in this manner,
the currency may be disposed of in any market at the same rate
in an orderly manner. Each member who is under an obligation
to redeem its currency under this paragraph, unconditionally
guarantees at all times the unrestricted use of such currency
for the purchase of goods or for the payment of other sums due
to it or to its nationals. Further, each member agrees to make

PROCEEDINGS AND DOCUMENTS

275

good any loss resulting from the exchange depreciation of its
currency until it has been used or redeemed.
7 /7 /4 4

J.S. Art. V III
A d d ition a l Section

Document 212
C I/ 3 / S 1

Final Alternative Submitted by the Special Subcommittee
Appointed to Consider All Proposals Relative
to the Executive Directors
Duties and Powers of the Executive Directors
1. The Executive Directors shall be responsible for the con
duct of the general operations of the Fund and for this purpose
shall exercise all the powers delegated to them by the Board of
Governors.
Formation of the Executive Directors
2. There shall b e _____ Executive Directors, of w hom _____
shall be appointed by the _____ members having the largest
quotas and______ shall be elected biennially, in accordance with
the provisions of Schedule B, by all the Governors other than
those appointed by the members having th e _____ largest quotas.
Persons chosen as Executive Directors need not be Governors.
Alternate Directors
3. Every Executive Director may appoint an alternate with full
power to act for him when he is not present. When the Executive
Directors appointing them are present alternates may participate
in meetings but shall not vote.
Meetings of Executive Directors
4. The Executive Directors shall function in continuous ses
sion at the principal office of the Fund and shall meet as often as
the business of the Fund may require.
5. In order to constitute a quorem for any meeting of the Execu
tive Directors, there must be present a majority of the Directors
representing not less than one-half of the voting power of all the
Executive Directors.
(p. 2) 6. Each Executive Director appointed by one of the
members with th e _____ largest quotas shall be entitled to cast
the number of votes allotted under Section 3 of this Article (J. S.
VII, 2) to the member appointing him. Each elected Executive Di

276

MONETARY AND FINANCIAL CONFERENCE

rector shall be entitled to cast only the number of votes which
actually counted toward his election. When the provisions of the
second paragraph of Section 2 of this Article are applicable, the
votes to which an Executive Director would otherwise be entitled
shall be increased or decreased proportionately. Each Executive
Director shall cast all of the votes to which he is entitled as a
single unit.
6a. Except as otherwise specifically provided, all matters be
fore the Executive Directors shall be decided by a majority of the
aggregate votes cast.
7. The Board of Governors shall make regulations containing
provisions under which a member which is not entitled to appoint
an Executive Director under 2 above shall be permitted to send a
representative to attend any meeting of the Executive Directors
when a request made by, or a matter particularly affecting, that
member is under consideration.
Managing Director
8. The Executive Directors shall select a Managing Director
who shall not be a Governor or an Executive Director. The Man
aging Director shall be Chairman of the Executive Directors,
but shall have no vote except a deciding vote in case of an equal
division. He may participate in meetings of the Board of Gover
nors but shall not vote at such meetings, (p. 3) He shall, how
ever, be eligible for election as Chairman of the Board of Gover
nors. The Managing Director shall cease to hold office when the
Executive Directors shall so decide.
9. The Managing Director shall be chief of the operating staff
of the Fund and shall conduct under the direction of the Executive
Directors, the ordinary business of the Fund’s work. Subject to
the general control of the Executive Directors, he shall be respon
sible for the internal organization of the Fund’s staff and the
appointment and dismissal of its staff.
10. The Managing Director and the staff of the Fund, in the
discharge of their offices owe their duty entirely to the Fund and
to no other authority.
Each member of the Fund shall respect the international char
acter of this duty and shall refrain from all attempts to influence
any member of the staff in the discharge of his duty.
11. In appointing the staff the Managing Director shall subject
to the paramount importance of securing the highest standards of
efficiency and of technical competence, pay due regard to the im
portance of selecting personnel recruited on as wide a geographi
cal basis as is possible.

P R O C E E D I N G S AND D O C U M E N T S

277

Appointm ent of Committees
12. The Executive Directors may appoint such committees as
they deem advisable. Members of such committees need not be
limited to Governors or Executive Directors or their alternates.
Remuneration
13. The Board of Governors shall determine the remuneration
to be paid to the Executive Directors and the salary and terms
of the contract of service of the Managing Director.

Document 214

(,p. 26f)

SA /1 /3 8

A l t e r n a t iv e E
(For Combined Alternatives A and B for Joint Statement VII, 1, 2 and 3,
and additional m aterial on Page 27 of Document SA/1)

Substitute for 2:
2. There shall be eleven Executive Directors of whom five shall
be appointed by the five members having the largest quotas and
six shall be elected biennially, in accordance with the provisions
set forth in Schedule B by all the Governors other than those ap
pointed by members having the five largest quotas. Persons
chosen as Executive Directors need not be Governors.
The Board of Governors at the next election after the establish
ment of the Fund or at any time thereafter, may by a vote of the
majority of the member countries and a majority of the quota
votes increase the number of elective seats from a total of six to
a total of nine.
A l t e r n a t iv e F
It is suggested that the following paragraph precede Schedule B
on Page 26b:
Exclusively for the purpose of choosing the Elective Directors,
each governor representing a member country other than those
having permanent seats on the Executive Directorate shall be
entitled to cast all the quota votes which he represents according
to the first paragraph of Section 3 of this Article plus one thousand
additional votes.
7/8/44

J.S. Art. V II
Sections 1, 2 and 3

278

MONETARY AND FINANCIAL CONFERENCE
Document 215
DP/11
Colombian Delegation

Proposed Amendment to Article IX, Section 2,
Gold Purchases Based on Parity Prices
The following amendment is submitted to the language recom
mended by the Drafting Committee of Committee 1 of Commission
I for Article IX, Section 2, Gold Purchases Based on Parity Prices
(page 2 of Doc. No. 192):
“It is understood, however, that this provision does not affect
bonuses paid by a producing country to promote gold produc
tion within its territory, or taxes collected on domestic gold
production or domestic gold transactions.”

Document 216

(p. lg )

S A /l/39

A lte r n a tiv e

(Add as a new subdivision)

To facilitate the multilateral settlement of a reasonable portion
of the foreign credit balances accumulated amongst the member
countries during the war so as to promote the purposes referred
to in Subdivision 2, without placing undue strain on the resources
of the Fund.
7 /8 /4 4

J.S. Art.l

Document 217

( P .1 7 c )

S A / 1 /4 0

A l t e r n a t iv e C
(Suggested as an alternative to Section 4a of A lternative A of Joint
Statement, Article IV, p. 17aa)
S e c t io n 4a. In examining any proposed change the Fund shall
take into consideration the extreme uncertainties prevailing when
the par values of the currencies of members were initially de
termined. Moreover, the Fund shall not object to a proposed
change necessary to restore equilibrium because of domestic social
or political policies of the member nor one designed to meet a

279

P R O C E E D I N G S AND D O C U M E N T S

serious and persistent deficit in the balance of payments on cur
rent account accompanied by a substantially adverse change in
the terms of trade.
7 /8 /4 4

J.S. Art. IV
Sec. 4

Document 218
D P /1 2

Draft Resolution Submitted by Australian Representatives
to United Nations Monetary and Financial Conference.
the raising of standards of living throughout the world
must be the primary aim of economic policy and the most
essential conditions for this and for the achievement of the
objectives set out in Article I of the International Monetary
Fund are the promotion and maintenance of high levels of
employment; and
W h e r e a s the operations of the International Monetary Fund and
other forms of international economic cooperation will have
the best prospects of success if member countries by domestic
measures maintain high levels of employment and consump
tion and by so doing enable the accumulation of persistent
credit (and debit) balances on international account to be
avoided;
This Conference r e s o l v e s that Governments which are to be in
vited to accept an International Monetary Agreement should
be invited to accept con-currently an international agreement
in which the signatories will pledge themselves to their own
people and to one another to maintain high levels of em
ployment in their respective countries, and to exchange in
formation on measures necessary to prevent the growth of un
employment and its spread to other countries.

W hereas

Document 219

(p. 40b)

/ i /41

A l t e r n a t iv e D
(The following has been suggested as an addition to Article IX,
Subdivision 4, Alternative A, p. 40)

While imposing no restrictions on current international pay749018 — 48— 19

MONETARY AND FINANCIAL CONFERENCE

28 0

ments, a member country may take the necessary measures to
ensure that
(a) Its foreign exchange holdings and its quota are used to pay
for imports which are essential to its national economy.
(b) The proceeds of exports from the member country are
placed at the disposal of its foreign exchange authorities
to be used for its essential requirements thereby preventing
what may, otherwise, constitute capital transfers.
7 /8 /4 4

J.S. Art. IX
Section 3

Document 220

(p. 37c)

S A / l/4 2

A l t e r n a t iv e C
(The following has been suggested as an alternative for Section 4,
paragraph (d) of Alternative A, page 37)
S e c t io n 4. (d) The net assets of the Fund remaining shall be
distributed as follows:
(i) Each country shall have a prior claim up to its quota on
its own currency held by the Fund.
(ii) Each of the remaining assets of the Fund (gold and cur
rencies) shall be divided proportionately amongst all coun
tries whose quotas have not been reimbursed as per (i)
in relation to the amounts still due to them on their quotas.
7 /8 /4 4

J.S. Art. V III
A d d itio n a l Section

Document 221
C I/ 3 / S 2

Report Submitted to Committee 3 of Commission I by the
Special Subcommittee Appointed to Consider the Various
Proposals Relative to the Organization, Election
and Powers of the Executive Directors.
Bretton Woods, July 7,19U
U
Mr . C h a ir m a n :

The Special Subcommittee appointed to consider and report on

PROCEEDINGS AND DOCUMENTS

281

the various proposals submitted to Committee 3 of Commission I,
relative to the organization, election and powers of the Executive
Directors, has held several meetings at which the representatives
of the United States, United Kingdom, Belgium, Netherlands and
Cuba were present.
The Subcommittee has given careful consideration to the fol
lowing propositions:
1. Alternatives A and B to Article VII, 1-2, submitted jointly
by the United States of America and United Kingdom.
2. Alternative C submitted by the Delegation of Cuba.
3. Alternative D submitted by the Delegation of Belgium.
4. Alternative submitted by the Delegation of Norway.
5. Alternative submitted by the Delegation of Netherlands.
6. Alternative submitted by the Delegation of Canada.
7. Alternative submitted by the Delegation of India.
The Subcommittee endeavored to consolidate into one single
alternative the various proposals submitted accepting those views
and suggestions which in their opinion were acceptable.
The Subcommittee failed to reach an agreement on the total
number of Executive Directors.
The Subcommittee succeeded, however, in reaching an agree
ment on a number of other important points, and we beg to sub
mit a draft of the alternative in which the number of Directors
has been left in blank, referring (p. 2) this matter back to your
Committee for further discussion and consideration.*
Respectfully yours,
(Signed) Luis M achado (C u b a)
L u is M a c h a d o

(C u b a ),

Chairman

(Signed) J. W. B e y e n
W il f r e d E a d y ,

United Kingdom

J. W . B eyen

(Netherlands)

(S ig n e d ) G u t t
Ca m il l e G u t t

(Belgium)

A n sel

L uxford

(United States)

To th e H on o ra b le A r t h u r de S o u sa C osta ,
Chairman of Committee 3, Commission I.
* The text of this alternative entitled Final A lternative Sub m itted by the
Special Subcommittee A ppointed to Consider A ll Proposals Relative to the
E xecutive Directors has been previously circulated.

282

MONETARY AND FINANCIAL CONFERENCE
Document 223

(P. 38)

JOURNAL
UNITED

NATIONS

No. 9

MONETARY

AND

FINANCIAL

CONFERENCE

Bretton W o o d s, N ew H am pshire

ORDER

THE

July 9 t 1944

DAY

Meetings for Sunday, July 9
10
4
5
6

a.m.
p.m.
p.m.
p.m.

Subcommittee of Committee 3 of Commission I
Committee on Special Problems of Liberated Areas
Agenda Committee of Commission II
Committee on Relations with Non-Member Countries

Room B
Room 219
Room B

(p. 39)
9

R e s u m e s o f C o m m it t e e M e e t i n g s

Committee 1 of Commission I
Purposes, Policies, and Quotas of the Fund
(July 8, 9:30 a.m.)

At its fifth meeting Committee 1 of Commission I discussed
the second report of the drafting committee and accepted the pro
posed revision of article II, section 1 (p. 2), dealing with coun
tries eligible for membership; section 3 (p. 2) dealing with time
and place of payment; section 4 (p. 3) dealing with adjustment
of quotas; and section 5 (p. 4) dealing with initial payments. The
Committee debated the proposed revision of article IX, section 2
(p. 38), dealing with gold purchases based on parity prices. In
view of the relationship of this section to the work of Committee
2, the matter was referred back to the drafting committee with
instructions to consult with Committee 2 and report again. Simi
lar instructions were given the drafting committee regarding its
revision of article IX, section 3, paragraph (a) (p. 39), dealing
with foreign-exchange transactions based on par values. The pro
posed revision of article IX, section 3, paragraph (b) (p. 39),
which provides that a member freely buying and selling gold is
fulfilling its obligations under this section, was referred back
to the drafting committee to consider the meaning of the word
“freely”. An alternative to article IX, section 3, paragraph (c)
(p. 39), dealing with exchange transactions in violation of regu
lations of another member, was referred to the drafting commit
tee. The Committee left for later consideration article II, Alterna
tives C and D (pp. 2b and 4b), providing for the inclusion of sil
ver in the subscriptions, and article IX, section 8, Alternative A

P R O C E E D I N G S AND D O C U M E N T S

283

(p. 43b)dealing with obligations of members to cooperate with
other members on approved exchange restrictions.
(The minutes of this meeting are being distributed separately
as document no. 224.)
Committee 2 of Commission I
Operations of the Fund
(July 8, 11:30 a.m.)

The sixth meeting of Committee 2 of Commission I was held
on July 8 at 11:30 a.m. and was resumed at 3 p.m. The Committee
reconsidered material on which actions had been deferred. On
article III, Transactions with the Fund, the Committee accepted
the reports of the language committee with respect to Alterna
tive A, section 1 (p. 5), and Alternative A, section 5 (p. 8). The
Committee deferred consideration of Alternative B, section 6
(p. 9a), Alternative B, section 7 (p. 10a), and Alternative F,
section 8 (p. 11c), pending the report of Committee 1 of Com
mission I on a related proposal before that Committee. The Com
mittee approved Alternative A, section 9, subsections (a) and
(c), and the United States Delegation agreed to distribute a mem
orandum on subsection (b) and an appropriate rephrasing of
that subsection. On article IV, Par Values of Member Currencies,
Alternative B, section 1 (p. 40) (p. 16a), was transferred to
article XIII, section 5 (p. 49). On Alternative A, sections 2, 3, 4,
4a, 4b, 4c (pp. 17a and 17aa), the Committee was near agreement
but it was understood that specific reservations should be re
ported to the Commission and that final approval should be de
ferred until other Alternatives could be distributed. The Com
mittee approved article VI, Apportionment of Scarce Currencies,
sections 1, 2, 3, and 4 (pp. 23b and 23c).
(The minutes of this meeting are being distributed separately
as document no. 225.)
Committee 3 of Commission I
Organization and Management of tlie Fund
(July 8, 9:30 a.m.)

Alternative D to article VII, section 6(b) (p. 29b), was re
ferred to Commission I. The Committee also referred to the
Commission article III, section 11, Alternative C (p. 14c), and
Alternative D (Document 203, p. 14e). The question of with
drawal and liquidation, article VIII, section 3 (p. 36), and section
4, was referred to a subcommittee composed of representatives
of Australia, Belgium, Mexico, United Kingdom, and United

284

MONETARY AND FINANCIAL CONFERENCE

States. The Committee discussed a “Final Alternative Submitted
by the Special Subcommittee Appointed to Consider All Proposals
Relative to the Executive Directors”. It approved paragraphs 1,
4, 5, 6, 6 (a ), 7, 8, 9, 10, 11, 12, and 13. Paragraph 3 was referred
to Commission I after consideration of the amendment, Document
178 (p. 26d) paragraph 3. Paragraph 2 is still under discussion.
(The minutes of this meeting are being distributed separately
as document no. 226.)
Committee 4' of Commission I
Form and Status of the Fund
(July 8, 11:30 a.m.)

The fifth meeting of Committee 4 of Commission I was held on
July 8 at 11:30 a.m. The Committee accepted the texts presented
by appropriate subcommittees assigned to deal with article IX,
section 7, Alternative B; article VII, section 11, Alternative B;
article XI, Alternative C (as amended) ; article XII, section 1,
Alternative C ; Article XII, section 3, Alternative A. The text for
article VII, section 11, Alternative B, paragraphs 1, 2, and 3,
was accepted as presented. Article XI, Alternative C, was amended
by the insertion in the second line of the first paragraph of the
words “the Government of” between the words “from” and “a”
and in the ninth line between the words “three-fifths” and “of”
the words “of the Governments”. The Committee was advised that
article XII, (p. 41) section 2, and article XIII, sections 1, 2,
3, and 4, were not yet ready for presentation to the Committee
or its subcommittees. With this exception the Committee has com
pleted the work assigned to it by Commission I.
(The minutes of this meeting are being distributed separately as
document no. 227.)
Agenda Committee of Commission III
Other Means of International Financial Cooperation
(J u ly 8, 2:30 p.m.)

A meeting of the Agenda Committee of Commission III was held
to consider the subjects that had been submitted. The Committee
agreed that the proposals be reported to Commission III at its next
meeting with the recommendation that three ad hoc committees
be appointed to deal with them.
A d H o c C o m m i t t e e s o f C o m m is s io n I

In conformity with the decision of the Steering Committee at its
meeting of July 6, the Chairman of Commission I has appointed
the following ad hoc Committees of Commission I :

285

P R O C E E D I N G S AND D O C U M E N T S

A d Hoc Committee of Commission 1 on Special Problems
of Liberated Countries
Luxembourg
Norway
Philippine Commonwealth
Poland
Union of Soviet Socialist Republics
United Kingdom
United States
Yugoslavia
Se c r e ta r y : J. P. Young

Netherlands, Chairman
Belgium
China
Colombia
Czechoslovakia
Ethiopia
French Delegation
Greece
Honduras

Ad Hoc Committee of Commission I on Relations with
Non-Member Countries
Netherlands
Union of Soviet Socialist Republics
United Kingdom
United States
S e c r e ta r y : Mrs. Eleanor L. Dulles

Norway, Chairman
China
Cuba
Czechoslovakia
Iran
(p. 42 )

Ad Hoc Committee of Commission I on Voting Arrangements
and Executive Directors
Brazil, Chairman
Belgium
China
Cuba
Czechoslovakia
French Delegation

Netherlands
Union of Soviet Socialist Republics
United Kingdom
United States
S e c re ta ry : Malcom Bryan

(p. 43 )
L ist o f D o c u m e n t s I ssu e d as o f J u l y 8 , 1 9 4 4
1
Subject

News Bulletin No. 7
Additional Page to SA/1
Additional Page to SA/1
Additional Page to SA/1
Translation of Preliminary Draft Outline of a Proposal for a
Bank
Report of Subcommittee of Committee 4, Commission I,
July 7
Journal No. 8
Minutes of Commission I, Committee 3, July 7, 9:30 a.m.
Representation of Delegations on Commissions and Com
mittees—Changes and Corrections
Committee Assignments, Commission I
Additional Page to SA/1
Minutes of Commission I, Committee 4, July 7, 2:30 p.m.
Minutes of Commission I, Committee 2, July 7, 2:30 p.m.

Symbol No.

Doc. Nc

SA/1; 28
SA/1/30
SA/1/31

193
194
195
196
197

C I/4/S1

198

J/8
CI/3/M 5

199
200

GD/23
CI/2
SA /1/32
CI/4/M 4
CI/2/M 5

201
202
203
204
205

286

MONETARY AND FINANCIAL CONFERENCE
Subject

Symbol No.

Order of the Day
Additional Pages to SA/1
Additional Pages to SA/1
Additional Pages to SA/1
Additional Pages to SA/1
Additional Pages to SA/1
Final Alternative Relative to the Executive Directors
News Bulletin No. 8
Additional Page to SA/1
Proposal by Colombian Delegation—Amendment to Report
of Drafting Committee
Additional Page to SA/1
Additional Page to SA/1
T rac Resolution Submitted by Australian Representatives
t
Additional Page to SA/1
Additional Page to SA/1
Report Submitted to Committee 3 of Commission I by
Special Subcommittee on Organization, Election, and
Powers of the Executive Directors, July 7
News Bulletin No. 9

GD/24
SA/1/33
SA/1/34
SA/1/35
SA/1/36
SA/1/37
CI/3/S1

Doo. No.

SA/1/38

206
207
208
260
210
211
212
213
214

DP/11
SA/1/39
SA /1/40
DP/12
SA/1/41
SA /1/42

215
216
217
218
219
220

CT/3/S2

221
222

Document 224
C I/ 1 / M 5

Minutes of Meeting of Committee 1 of Commission I
P u rp o s e s , P o lic ie s , a n d Q u o ta s o f t h e
(July 8, 1944, 9:30 a.m.)

Fund

The Chairman announced that the procedures of the Committee
would be governed by the document on procedures issued by the
Steering Committee.
Document No. 202, “Status of Committee Assignments”, was
circulated and the Chairman requested members to note what
action was taken on the various items to be considered so as to
keep their records up to date.
The second report of the drafting committee was presented by
its Chairman, Dr. Goldenweiser.
The Committee accepted the language of the drafting committee
for article II, section 1 (p. 2) - Countries Eligible for Membership
- and for article II, section 4 (p. 3) - Adjustment of Quotas with a slight change in wording. The Committee also accepted the

P R O C E E D I N G S AND D O C U M E N T S

287

recommendation of the drafting committee to retain the language
of article II, section 3, Alternative A (p. 2) - Time and Place of
Payment.
* The Committee approved the language of the drafting commit
tee for article II, section 5 (p. 4) - Initial Payments - with a mino^
change.
The Committee debated the language of the drafting committee
on article IX, section 2 - Gold Purchases Based on Parity Prices
fp. 38). Various members felt that the language was too rigid
since it excluded certain gold purchases at prices beyond the pre
scribed margin which might be perfectly consistent with the
purposes of the Fund. A request was made not to exclude payments
involving no international transactions made as bonuses to the
gold-mining industry in gold-producing countries, and other legiti
mate variations, such as sales to meet a hoarding demand, were
also suggested. The close relationship of this clause to the work
of Committee 2 was emphasized and the provision was referred
back to the drafting committee with instructions to consult with
Committee 2 and report again on the matter.
The Committee considered the language of the drafting com
mittee for article IX, section 3, paragraph (a) - Foreign Exchange
Dealings Based on Par Values (p. 39). The discussion of the
Committee revealed two questions of substance: (1) whether the
margin to be prescribed should be for spot and for futures and
other types of contract, or whether there should be only one maxi
mum range for spot transactions, and (2) whether it was in
tended that there should be only a general maximum range applica
ble to all countries, or whether the Fund should prescribe, within
this over-all maximum, a range for each member country. This
section was referred again to the drafting committee with the
same instructions as were given with respect to section 2.
The Committee considered the language recommended by the
drafting committee for article IX, section 3, paragraph (b) (p.
39). The Committee discussed the necessity and exact force (p. 2)
of the last sentence, which states that a member freely buying gold
and gold-convertible exchange has fulfilled its obligation under this
paragraph. The Chairman referred this section back to the drafting
committee.
The Chairman read to the Committee an Alternative to article
IX, section 3, paragraph (c) (p. 39), which deals with illegal
exchange transactions carried on in a member country in the cur
rencies of other members. Since this provision is still in the

288

MONETARY AND FINANCIAL CONFERENCE

drafting committee, the amendment was referred to the drafting
committee.
The Committee left for later consideration the following pro
posals which have been circulated as Alternatives to the articles
assigned to it: Alternatives C and D under article II, which pro
vide for the inclusion of silver in the subscriptions of the member
countries and which appear on pages 2b and 4b of S A /1 ; and article
IX, section 8, Alternative A (p. 43b), which adds to the obliga
tions assumed by members that of cooperating with other mem
bers in rendering permissible and approved exchange restrictions
effective.

Document 225
C I/2 /M 6

Minutes of Meeting of Committee 2 of Commission I
O p e ra tio n s o f t h e F u n d
(J u ly 8, 1944, 11:30 a.m.)

The sixth meeting of Committee 2 of Commission I was held on
duly 8 at 11:30 a.m. and was resumed at 3 p.m. The Committee
agreed to reconsider all material submitted to it on which action
was pending in the order of its appearance in the basic document,
SA/1.
The Committee accepted the report of the language committee
that article III, section 1, Alternative A (p. 5), be approved with
the addition of the words “with or” after “only” in the third line.
The Committee accepted the report of the language committee
that on section 5, Alternative A (p. 8), paragraph (1) be amended
as follows:
“Propose to the member that, on terms and conditions agreed
between them, it lend such currency to the Fund or, with the
approval of the member, that the Fund borrow such currency
from some other source either within or outside the territory
of the member; but no member shall be under any obligation
to make such loans to the Fund or to approve the Fund’s bor
rowing its currency from any other source.”
With respect to article III, section 6, Multilateral International
Clearing, section 7, Acquisition by Members of the Currencies of
Other Members for Gold, and section 8, Other Acquisitions of

P R O C E E D I N G S AND D O C U M E N T S

289

Gold by the Fund, the Committee agreed that Alternative B (p.
9a), Alternative B (p. 10a), and Alternative F (p. 11c) be de
ferred for later consideration pending the report of Committee 1
cf Commission I on a proposal to which these Alternatives are
consequential.
Article III, section 9, Alternative A (p. 12), subsections (a) and
(c) were approved. The United States Delegation agreed to dis
tribute a memorandum explaining the purposes to be achieved in
subsection (b) and an appropriate phrasing of that subsection.
The Committee discussed article IV, Par Values of Member
Currencies.
With respect to section 1, Par Values of the Currencies of
Members, it was decided that Alternative B (p. 16a) should be
transferred to article XIII, section 5 (p. 49).
On Alternative A, sections 2, 3, 4, 4a, 4b, and 4c (pp. 17a and"
17aa), the Chairman noted that the Committee was near agreement
but that specific reservations should be reported to the Com
mission if delegations so indicate and that final approval should
be deferred until Alternatives that have not yet been circulated
can be considered.
The Committee discussed article VI, Apportionment of Scarce
Currencies.
The Committee approved substitute Alternative A, sections 1
and 2 (p. 23b), and sections 3 and 4 (p. 23c).

Document 226
C I/ 3 / M 6

Minutes of Meeting of Committee 3 of Commission I
O rg a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(July 8, 1944, 9:30 a.m.)

The Committee considered Alternative D to article VII, sec
tion 6(b), (p. 29b), relating to the depositories for the Fund’s
gold holdings. After discussion this was referred to Commission I
to be considered along with the other Alternatives to this section.
The Committee then considered article III, section 11, Alternative
C (p. 14c), relating to information to be supplied to the Fund by
the member countries, which replaced Alternative A. A new Al
ternative D, Document 203 (p. 14e), was also discussed. Alterna
tives C and D were referred to Commission I.

290

MONETARY AND FINANCIAL CONFERENCE

The Committee discussed article VIII, section 3 (p. 36), Settle
ment of Accounts with Governments Ceasing to be Members. A
new Alternative was submitted and will be circulated. An amend
ment to article VIII, section 4, Liquidation of the Fund, was sub
mitted and will be circulated. After discussion it was decided to
refer these matters to a special subcommittee consisting of repre
sentatives of Australia, Belgium, Mexico, United Kingdom, and
United States.
The subcommittee on the Executive Directors reported a “Final
Alternative Submitted by the Special Subcommittee Appointed to
Consider All Proposals Relative to the Executive Directors” to
replace the combined Alternatives A and B, C, and D with the
amendments submitted by various countries. The subcommittee
reported that it had been able to reach agreement on all questions
’before it except the total number of Executive Directors. After
discussion the whole Committee approved paragraphs 1, 4, 5, 6,
6(a), 7, 8, 9, 10, 11,12, and 13. Paragraph 3 was referred to Com
mission I after consideration of an amendment Document 178,
paragraph 3 (p. 26d). Paragraph 2 was discussed but no agree
ment had been reached at the time of adjournment. An Alterna
tive to paragraph 2 and an amendment to Schedule B of the
combined Alternatives A and B has been submitted and will be
circulated.

Document 227
C I/ 4 / M 5

Minutes of Meeting of Committee 4 of Commission I
F o rm a n d S ta tu s o f t h e F u n d
{July 8, 1944, 11:30 a.m.)

The fifth meeting of Committee 4 of Commission I was held on
July 8 at 11:30 a.m.
Article IX, section 7, Alternative B, Document 194 (p. 43a),
was adopted in the form as presented by the subcommittee.
Considerable discussion was held upon the document presented
by the subcommittee relating to article VII, section 11, Alterna
tive B, Document 198 (p. 33a). The first three numbered subparagraphs were accepted as presented, subparagraphs 4 and 5
having been previously referred to another Committee.

291

P R O C E E D I N G S AND D O C U M E N T S

With respect to article XI, Alternative C, Document 198 (p.
45a), it was decided after considerable discussion to insert in
the second line between the words “from” and “a” the words “the
Government of” and in the ninth line between the words “three. fifths” and “of” the words “of the Governments” to make the
meaning consistent with that indicated in the seventh line and the
last line of the first paragraph.
Discussion on article XII, section 1, Alternative C, Document
198 (p. 46a), was prolonged. It was finally decided to accept the
text as presented in Alternative C.
After the Delegate from the United States explained the pur
pose of the wording which was presented, the text of article XII,
section 3, Alternative A, Document 209 (p. 48), was adopted
without change.
The Committee was advised that article XII, section 2, and
article XIII, sections 1, 2, 3, and 4 were not yet ready for presen
tation to the Committee or its subcommittees. With this excep
tion the Committee has completed the work assigned to it by
Commission I.

Document 231
UNITED

N ATIONS

MONETARY

AND

FINANCIAL

CONFERENCE

Bretton W o o d s

Officers of the Conference^ Members of the Delegations,
and Officers of the Secretariat
O

f f ic e r s

o f

t h e

o n f e r e n c e

President of the Conference
Henry Morgenthau, Jr., Secretary of the Treasury; Chairman of
the Delegation of the United States of America
Vice Presidents of the Conference
M. S. Stepanov, Deputy People's Commissar of Foreign Trade;
Chairman of the Delegation of the Unio% of Soviet Socialist
Republics
Arthur de Souza Costa, Minister of Finance; Chairman of the
Delegation of Brazil
Camille Gutt, Minister of Finance and Economic Affairs; Chair
man of the Delegation of Belgium

292

MONETARY AND FINANCIAL CONFERENCE

Leslie G. Melville, Economic Adviser to the Commonwealth Bank
of Australia; Chairman of the Delegation of Australia
Secretary General
Warren Kelchner, Chief, Division of International Conferences,
Department of State
Technical Secretary General
Frank Coe, Assistant Administrator, Foreign Economic Adminis
tration
Assistant Secretary General
Philip C. Jessup, Professor of International Law, Columbia Uni
versity
(p. 2)
Technical Commissions and Committees
Commission I
International Monetary Fund

Chairman: Harry D. White, United States of America
Vice Chairman: Rodolfo Rojas, Venezuela
Reporting Delegate: L. Rasminsky, Canada
Secretary: Leroy Stinebower
Assistant Secretary: Eleanor Lansing Dulles
C o m m it t e e 1

Purposes, Policies, and Quotas of the Fund
Chairman: Tingfu F. Tsiang, China
Reporter: Kyriakos Varvaressos, Greece
Secretary: W. A. Brown
C o m m it t e e 2

Operations of the Fund
Chairman: P. A. Maletin, Union of Soviet Socialist Republics
Vice Chairman: W. A. Mackintosh, Canada
Reporter: Robert Mosse, French Delegation
Secretary: Karl Bopp
Assistant Secretary: Alice Bourneuf
C o m m it t e e 3

Organization and Management
Chairman: Arthur de Souza Costa, Brazil
Reporter: Ervin Hexner, Czechoslovakia
Secretary: Malcolm Bryan
Assistant Secretary: H. J. Bittermann

PROCEEDINGS AND DOCUMENTS
I P - 3)
Co m m it t e e 4

Form and Status of the Fund
Chairman: Manuel B. Llosa, Peru
Reporter: Wilhelm Keilhau, Norway
Secretary: Colonel Charles H. Dyson
Assistant Secretary: Lauren Casaday
C o m m issio n

Bank for Reconstruction and Development

Chairman: Lord Keynes, United Kingdom
Vice Chairman: Luis Alamos Barros, Chile
Reporting Delegate: Georges Theunis, Belgium
Secretary: Arthur Upgren
Assistant Secretary: Arthur Smithies
C o m m it t e e 1

Purposes, Policies, and Capital of the Bank
Chairman: J. W. Beyen, Netherlands
Reporter: J. Rafael Oreamuno, Costa Rica
Secretary: J. P. Young
Assistant Secretary: Janet Sundelson
C o m m it t e e 2

Operations of the Bank
Chairman: E. I. Montoulieu, Cuba
Reporter: James B. Brigden, Australia
Secretary: H. J. Bittermann
Assistant Secretary: Ruth Russell
;p- 4)
Co m m it t e e 3

Organization and Management
Chairman: Miguel L6pez Pumarejo, Colombia
Reporter: M. H. De Kock, Union of South Africa
Secretary: Mordecai Ezekiel
Assistant Secretary: Captain William L. Ullmann
C o m m it t e e 4

Form and Status of the Bank
Chairman: Sir Chintaman D. Deshmukh, India
Reporter: Leon Baranski, Poland
Secretary: Henry Edmiston
Assistant Secretary: Colonel Charles H. Dyson

294

MONETARY AND FINANCIAL CONFERENCE

C om m ission III

Other Means of International Financial Cooperation
Chairman: Eduardo Suarez, Mexico
Vice Chairman: Mahmoud Saleh El Falaky, Egypt
Reporting Delegate: Alan G. B. Fisher, New Zealand
Secretary: Orvis Schmidt
M e m b e r s o f t h e D e l e g a t io n s
(P. 5 )
AUSTRALIA
Delegates

Leslie G. Melville, Economic Adviser to the Commonwealth Bank of A ustralia;
Chairm an

James B. Brigden, Financial Counselor, A ustralian Legation, W ashington
Frederick H. Wheeler, Commonwealth D epartment of the Treasury
A rthur H. Tange, Commonwealth Department of E xternal Affairs
Secretary

Morris A. Greene, A ustralian Legation, Washington
BELGIUM
Delegates

Camille Gutt, Minister of Finance and Economic Affairs; Chairman
Georges Theunis, M inister of State; Ambassador a t Large on special mission
in the United States; Governor of the N ational Bank of Belgium
Baron Herve de Gruben, Counselor, Belgian Embassy, W ashington
Baron Rene Boel, Counselor of the Belgian Government
(P . 6)
Advisers

Joseph Nisot, Legal Adviser, Belgian Embassy, New York; Legal Adviser
B. S. Chlepner, Professor of Brussels U niversity; Financial Adviser
Secretary

E rnest de Selliers, Financial Attache, Belgian Embassy, W ashington
BOLIVIA
Delegate

Rene Ballivian, Financial Counselor, Bolivian Embassy, W ashington;
Chairman

BRAZIL
Delegates

A rthur de Souza Costa, Minister of Finance; Chairman
Francisco Alves dos Santos-Filho, Director of Foreign Exchange of the Bank
of Brazil
Valentim Bou^as, Commission of Control of the W ashington Agreements and
Economic and Financial Council
Eugenio Gudin, Economic and Financial Council and Economic Planning
Committee
Octavio Bulhoes, Chief, Division of Economic and Financial Studies, Ministry
of Finance
Victor Azevedo Bastian, Director, Banco da Provincia do Rio Grande do Sul
Secretary General

Aguinaldo Boulitreau Fragoso, A ssistant to the Minister of Foreign Affairs

PROCEEDINGS AND DOCUMENTS
(P .

295

Secretaries

Roberto de Oliveira Campos, Second Secretary, Brazilian Embassy,
W ashington
Zeuxis F erreira Neves, Technical A ssistant to the Commercial Counselor,
Brazilian Embassy, Washington
Charles Freligh, Brazilian Embassy, W ashington
Santiago Fernandes, Banco do Brasil
R. R. Vieira, Brazilian Treasury Delegation, New York
Daniel Maximo M artins
CANADA
Delegates

The Honorable J. L. Ilsley, Minister of Finance; Chairman
The Honorable L. S. St. Laurent, Minister of Justice
D. C. Abbott, Parliam entary A ssistant to the M inister of Finance
Lionel Chevrier, Parliam entary A ssistant to the Minister of Munitions
and Supply
J. A. Blanchette, Member of Parliam ent
W. A. Tucker, Member of Parliam ent
W. C. Clark, Deputy M inister of Finance
G. F. Towers, Governor, Bank of Canada
W. A. Mackintosh, Special A ssistant to the Deputy Minister of Finance
‘L. Rasminsky, Chairman (alternate), Foreign Exchange Control Board
A. F. W. Plumptre, Financial Attache, Canadian Embassy, W ashington
(P . 8 )
J. J. Deutsch, Special Assistant to the Under Secretary of State of External
Affairs
Secretary

Paul Tremblay, Third Secretary, Canadian Embassy, Washington
CHILE
Delegates

Luis Alamos Barros, Director, Central Bank of Chile; Chairman
German Riesco, General Representative of the Chilean Line, New York
A rturo Maschke Tornero, General Manager, Central Bank of Chile
Fernando Mardones Restat, A ssistant General Manager, Chilean N itrate and
Iodine Sales Corporation
Secretary

Carmen Senoret, Consul of Chile, Boston
Assist ant Secretaries

Frank Ledesma, Secretary to the Chairman of the Delegation
Luis Aguirre
CHINA
Chairman of the Delegation

Hsiang-Hsi K’ung, Vice President of Executive Yuan and concurrently
M inister of Finance; Governor of the Central Bank of China
Advisers

Hu Shih, former Chinese Ambassador to the United States

(p. 9)
Kia-Ngau Chang, High Adviser to Executive Yuan
Ming Li, Chairman, Chekiang Industrial Bank, China
Ting-Sen Wei, Member, Legislative Yuan
749013— 48— 20

296

MONETARY AND FINANCIAL CONFERENCE

Delegates

Tingfu F. Tsiang, Chief Political Secretary of Executive Y uan; former
Chinese Ambassador to the Union of Soviet Socialist Republics
Ping-Wen Kuo, Vice M inister of Finance
Victor Hoo, Administrative Vice Minister of Foreign Affairs
Yee-Chun Koo, Vice Minister of Finance
Kuo-Ching Li, Adviser to the M inistry of Finance
Te-Mou Hsi, Representative of the M inistry of Finance in W ashington;
Director, the Central Bank of China and Bank of China
Tsu-Yee Pei, Director, Bank of China
Ts-Liang Soong, General Manager, M anufacturers Bank of China; Director,
the Central Bank of China, Bank of China, and Bank of Communications
S ecretary General

Chao-Ting Chi, Secretary General, Foreign Exchange Control Commission,
M inistry of Finance; Research Director, Economic.Research Department,
the Central Bank of China
Technical E xp e rts

Chi-Ling Tung, Vice Chairman, Foreign Trade Commission
Y. C. Wang, Secretary, the Central Bank of China
Cho-Ming Li, Professor of Economics, Southwestern Associated Universities,
Kunming

( p . 10)
Chih Tsang, Director, Shanghai Commercial and Savings Bank
Tsung-Fei Koh, Secretary, International Department, Directorate General
of Posts
Vung-Yuen Woo, Chief of Monetary Section, Currency Department, Ministry
of Finance
C. T. Yen, Director of Department, the Central Bank of China
Technical Consultants

A rthur N. Young, Financial Adviser to the Chinese Government
Carl Neprud, Commissioner of Customs, the M inistry of Finance
Secretaries

Yen-Tsu Chen, Secretary, the Central Bank of China
Daniel S. K. Chang, Secretary, the Central Bank of China
Ping-Yeh Tcheng, Secretary, Central T rust of China
Bing-Shuey Lee, F irst Secretary, Chinese Embassy, W ashington
Kien-Wen Yu, Second Secretary, Chinese Embassy, W ashington
I. C. Sung, A ssistant Treasurer, Universal Trading Corporation
Wan-Sen Lo, Secretary to the Representative of the M inistry of Finance
in W ashington
Ta-Chung Liu, Secretary, Office of Commercial Counselor, Chinese Embassy,
Washington
Yu-Chung Hsi, Secretary to the Representative of the M inistry of Finance
in W ashington

( P. i d
COLOMBIA
D elegates

Carlos Lleras Restrepo, form er Minister of Finance and Comptroller G eneral;
Chairm an

Miguel Lopez Pumarejo, form er Ambassador to the United States, Manager,
Caja de Credito Agrario, Industrial y Minero

PROCEEDINGS AND DOCUMENTS

297

Victor Dugand, Banker
Technical Advisers

Antonio Puerto, Banker
Salvador Camacho Roldan, Banker; Vice President, Bogota Stock Exchange
COSTA RICA
Delegates

Francisco de P. Gutierrez Ross, Ambassador to the United States; former
M inister of Finance and Commerce; Chairman
Luis Demetrio Tinoco Castro, Dean, Faculty of Economic Sciences, University
of Costa Rica; form er M inister of Finance and Commerce; former
Minister of Public Education
Fernando M adrigal A., Member of Board of Directors, Chamber of Commerce
of Costa Rica
Counselor

3. Rafael Oreamuno, Vice Chairman, Inter-American Development Com
mission; Member, Inter-American Financial and Economic Advisory
Committee; Member, Inter-American Coffee Board; former Minister to
the United States

(P. 12)
CUBA
Delegate

E. I. Montoulieu, Minister of Finance; Chairman
Technical Advisers

Oscar Garcia Montes, former M inister of Finance; Professor of Political
Economy. U niversity of Habana
Ramiro Guerra y Sanchez, Delegate to the Inter-American Economic and
Financial Committee; Technical Adviser of the Ministry of Finance
Miguel A. Pirez, A ssistant to the Minister of Finance
Juan M. Menocal, Professor of Taxation, University of H abana; Adviser to
the Office of the Prime M inister
Felipe Pazos, Commercial Attache, Cuban Embassy, Washington
Luis Machado, Lawyer and Economist
Eduardo D urruthy, Director General of Statistics of the M inistry of Finance
Secretary

Calixto Montoulieu, M inistry of Finance
Technical Secretary

Irving Gordon
CZECHOSLOVAKIA
Delegates

Ladislav Feierabend, Minister of Finance; Chairman
Jan Mladek, M inistry of Finance; Deputy Chairman
Antonin Basch, Department of Economics, Columbia University

(p. 13)
Josef Hanc, Director of the Czechoslovak Economic Service in the United
States of America
Ervin Hexner, Professor of Economics and Political Science, University of
North Carolina
Technical Adviser and Secretary

E rnest Sturc, Czechoslovak Economic Service in the United States

298

MONETARY AND FINANCIAL CONFERENCE

DOMINICAN REPUBLIC
Delegates

Anselmo Copello, Ambassador to the United S tates; C hairm an
J. R. Rodriguez, Minister Counselor, Embassy of the Dominican Republic,
W ashington
Secretary

J. M. Sanz L ajara, F irst Secretary, Embassy of the Dominican Republic,
W ashington
ECUADOR
D elegates

Esteban F. Carbo, Financial Counselor, Ecuadoran Embassy, W ashington;
C hairm an

Sixto E. Duran Ballen, M inister Counselor, Ecuadoran Embassy, Washington
EGYPT
Delegates

Sany Lackany Bey; C hairm an
Mahmoud Saleh El Falaky
Ahmed Selim
(P . 1 4 )
A d viser

J. I. Craig
Technical Secretary

Leon Dichy
Secretary

Mrs. F. C arritt
EL SALVADOR
D elegates

Agustin Alfaro M oran; Chairm an
Raul Gamero
Victor Manuel Valdes
ETHIOPIA
Delegates

Blatta Ephrem Tewelde Medhen, M inister to the United States; C hairm an
George A. Blowers, Governor, State Bank of Ethiopia
Secretary

Miss Helen W illard
FRENCH DELEGATION
Delegates

Pierre Mendes-France, Commissioner of Finance; Chairm an
Andre Istel, Technical Counselor to the Department of Finance
(P * 1 5 )
A ssista n t D elegates

Jean de Largentaye, Finance Inspector
Robert Mosse, Professor of Economics
Raoul Aglion, Legal Counselor; General Secretary
Secretaries

Jean Lam bert
Gaston Mallet
Georges Roncales

PROCEEDINGS AND DOCUMENTS

299

GREECE
Delegates

Kyriakos Varvaressos, Governor of the Bank of Greece; Ambassador E xtraor
dinary for Economic and Financial M atters; Chairman
Alexander Argyropoulos, Minister Resident; Director, Economic and Com
mercial Division, M inistry of Foreign Affairs
Athanase Sbarounis, Director General, M inistry of Finance
Technical Advisers

Alexander Loverdos, National Bank of Greece; now a t the M inistry of Finance
Andre Papandreou
Secretary

Mrs. Kaity Argyropoulos
GUATEMALA
Delegate

Manuel Noriega Morales, postgraduate student in economic sciences, Harvard
U niversity; Chairman

(P. 16)
HAITI
Delegates

Andre Liautaud, Ambassador to the United States; Chairman
Pierre Chauvet, Under Secretary of State for Finance
HONDURAS
Delegate

Julian R. Caceres, Ambassador to the United States; Chairman
ICELAND
Delegates

Magnus Sigurdsson, Manager, National Bank of Iceland; Chairman
Asgeir Asgeirsson, Manager, Fishery Bank of Iceland
Svanbjorn Frlm annsson, Chairman, State Commerce Board
Secretary

Miss M artha Thors
INDIA
Delegates

Sir Jerem y Raisman, Member for Finance, Government of India; Chairman
Sir Theodore Gregory, Economic Adviser to the Government of India
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh, Governor, Reserve Bank of India
A. D. Shroff

( p .17)
Adviser

Sir David Meek, Trade Commissioner, London
Assistant Adv iser

Mrs. A. A. Henderson
Secretary

B. K. Madan
IRAN
Delegates

Abol Hassan Ebtehaj, Governor of National Bank of Iran ; Chairman
Dr. A. A. D aftary, Counselor, Iranian Legation, W aslr'ngton

300

MONETARY AND FINANCIAL CONFERENCE

Hossein Navab, Consul General, New York
Dr. Taghi N assr, Iranian Trade and Economic Commissioner, New York
IRAQ
Delegates

Ibrahim Kamal, Senator and form er M inister of Finance; C hairm an
Lionel M. Swan, Adviser to the M inistry of Finance
Ibrahim Al-Kabir, Accountant General, M inistry of Finance
Claude E. Loombe, Comptroller of Exchange and Currency Officer

(p. 18)
LIBERIA
D elegates

William E. Dennis, Secretary of the T reasury; C hairm an
James F. Cooper, former Secretary of the T reasury
W alter F. Walker, Consul General, New York
Secretary

K. Jefferies Adorkor, Jr.
LUXEMBOURG
Delegate

Hugues Le Gallais, M inister to the United States; Chairm an
MEXICO
Delegates

Eduardo Suarez, M inister of Finance; Chairm an
Antonio Espinosa de los Monteros, Executive President of Nacional Financiera; Director of Banco de Mexico
Rodrigo Gomez, M anager of Banco de Mexico
Daniel Coslo Villegas, Chief of the D epartment of Economic Studies, Banco
de Mexico
General Secretaries

Salvador D uhart, F irst Secretary, Mexican Embassy, W ashington
Julian Saenz, Mexican Consul, New York
Technical Secretary

Victor Urquidi, Economist, Department of Economic Studies, Banco de Mexico

(p. 19)
NETHERLANDS
D elegates

J. W. Beyen, Financial Adviser to the Netherlands Government; Chairm an
D. Crena de Iongh, President of the Board for the Netherlands Indies,
Surinam, and Curasao in the United States
H. Riemens, Financial Attache, Netherlands Embassy, W ashington; Financial
Member of the Netherlands Economic, Financial and Shipping Mission
in the United States
A. H. Philipse, Member of the Netherlands Economic, Financial, and Ship
ping Mission in the United States
E xp erts

A. Andriesse, P rivate Banker
A. Bestebreurtje, President, Netherlands Chamber of Commerce in New
York, Inc.
J. J. Polak, Economist attached to the Netherlands Economic, Financial, and
Shipping Mission m the United States

PROCEEDINGS AND DOCUMENTS

301

C. H. Schoch, Representative, Netherlands Indies Exchange Control
Advisers to the Chairman

J. Jerome Williams, Netherlands Embassy, Washington
L H. Capriles
W. J. A. de Heer
Secretary

A. Broches
(P. 2 0 )
NEW ZEALAND
Delegates

Walter Nash, M inister of Finance; M inister to the United States; Chairman
Bernard Carl Ashwin, Secretary to the Treasury
Edward C. Fussell, Deputy Governor, Reserve Bank of New Zealand
Alan G. B. Fisher, Counselor, New Zealand Legation, Washington
Adviser and Secretary

Bruce R. Turner, Second Secretary, New Zealand Legation, Washington
NICARAGUA
Delegates

Guillermo Sevilla Sacasa, Ambassador to the United States; Chairman
Leon DeBayle, form er Ambassador to the United States
J. Jesus Sanchez Roig, Secretary, Board of Directors, National Bank of
N icaragua
NORWAY
Delegates

Wilhelm Keilhau, Director, Bank of Norway, p.t., London; Chairman
Ole Colbjornsen, Financial Counselor, Norwegian Embassy, W ashington
Arne Skaug, Commercial Counselor, Norwegian Embassy, Washington
(p . 2 1 )
Technical Adviser

Kaare Petersen, Norwegian Shipping and Trade Mission, New York
Secretary

Torfinn Oftedal, F irst Secretary, Norwegian Embassy, Washington
PANAMA
Delegates

Guillermo Arango, President, Investors Service Corporation of P anam a;
Chairman

Narciso E. Garay, F irs t Secretary, Panam anian Embassy, Washington
PARAGUAY
Delegates

Celso R. Velazquez, Ambassador to the United States; Chairman
Nestor M. Campos Ros, F irst Secretary, Paraguayan Embassy, Washington
PERU
Delegates

Pedro Beltran, Ambassador-designate to the United States; Chairman
Manuel B. Llosa, Second Vice President of the Chamber of Deputies; Deputy
from Cerro de Pasco
Andres F. Dasso, Senator from Lima
Alberto Alvarez Calderon, Senator from Lima
Juvenal Monge, Deputy from Cuzco
Juan Chavez, Minister, Commercial Counselor, Peruvian Embassy, Washington

302

MONETARY AND FINANCIAL CONFERENCE

(P. 2 2 )
Technical Adviser

Emilio G. Barreto
Secretary

Alvaro Rey de Castro, Third Secretary, Peruvian Embassy, Washington
P H IL IP P IN E COMMONWEALTH
Delegates

Col. Andres Soriano, Secretary of Finance of the Philippine Commonwealth;
Chairman

Jaim e Hernandez, Auditor General of the Philippine Commonwealth
Joseph H. Foley, M anager, Philippine National Bank, New York Agency,
Philippine Commonwealth
Technical Adviser and Secretary

Ismael Mathay, Technical A ssistant to the Auditor General of the Philippine
Commonwealth
POLAND
Delegates

Ludwik Grosfeld, Minister of Finance; Chairman
Leon Baranski, Director General, Bank of Poland
Zygmunt Karpiriski, Director, Bank of Poland
Stanislaw Kirkor, Director, M inistry of Finance
Janusz Zoltowski, Financial Counselor, Polish Embassy, Washington
(P. 2 3 )
Experts

Michal A. Heilperin, Associate Professor of Economics, Hamilton College
Wladyslaw Malinowski, A ssistant Financial Counselor, Polish Embassy,
Washington
Secretary

Gustaw Gottesman, Secretary to the Minister of Finance
UNION OF SOUTH AFRICA
Delegates

S. F. N. Gie, Minister to the United States; Chairman
J. E. Holloway, Secretary for Finance; Co-delegate
M. H. de Kock, Deputy Governor of South African Bank; Co-delegate
Adviser

W. C. Naude, Attache, South African Legation, W ashington
UNION OF SOVIET SOCIALIST REPUBLICS
Delegates

M. S. Stepanov, Deputy People’s Commissar of Foreign Trade; Chairman
P. A. Maletin, Deputy People’s Commissar of Finance
N. F. Chechulin, A ssistant Chairman of the State Bank
I. D. Zlobin, Chief, Monetary Division of the People’s Commissariat of Finance
(P. 2 4 )
A. A. A rutiunian, Professor; Doctor of Economics; Expert-Consultant of the
People’s Commissariat for Foreign Affairs
A. P. Morozov, Member of the Collegium; Chief, Monetary Division of the
People’s Commissariat for Foreign Trade
Experts

A. M. Smirnov, Professor; Adviser of the People’s Commissariat for Foreign
Trade

PROCEEDINGS AND DOCUMENTS

303

M. M. Idashkin, Financial Adviser of the People’s Commissariat for Foreign
Trade
F. P. Bystrov, Professor of Finance; Doctor of Economics
Secretaries

M. I. Chibisov, A ssistant to the Chairman
N. I. Kuzminsky, Private Secretary to the Chairman
UNITED KINGDOM
Delegates

Lord Keynes; C hairm an
The Hon. Robert H. Brand, United Kingdom Treasury Representative in
Washington
Sir W ilfrid Eady, United Kingdom Treasury
Nigel Bruce Ronald, Foreign Office
Dennis H. Robertson, United Kingdom Treasury
Lionel Robbins, W ar Cabinet Offices
Redvers Opie, Counselor, British Embassy, Washington
(P. 2 5 )
A dvisers

William E. Beckett, Foreign Office
G. L. F. Bolton, Bank of England
Charles H. Campbell, F irst Secretary, British Embassy, Washington
John W. Russell, Second Secretary, British Embassy, Washington
Ralph H. Thomas, Second Secretary, British Embassy, Washington
Secretaries

H. E. Brooks, United Kingdom Treasury
A. W. Snelling, Dominions Office
Richard T. G. Miles, Third Secretary, British Embassy, Washington
UNITED STATES OF AMERICA
Delegates

Henry Morgenthau, Jr., Secretary of the Treasury; Chairm an
Fred M. Vinson, Director, Office of Economic Stabilization; Vice Chairman
Dean Acheson, A ssistant Secretary of State
Edward E. Brown, President, F irst National Bank of Chicago
Leo T. Crowley, Adm inistrator, Foreign Economic Administration
M arriner S. Eccles, Chairman, Board of Governors of the Federal Reserve
System
Mabel Newcomer, Professor of Economics, Vassar College
(P. 2 6 )
Brent Spence, House of Representatives; Chairman, Committee on Banking
and Currency
Charles W. Tobey, United Slates S:-nate; Member, Committee on Banking and
Currency
Robert F. Wagner, United States Senate; Chairman, Committee on Banking
and Currency
H arry D. White, Assistant to the Secretary of the Treasury
Jesse P. Wolcott, House of Representatives; Member, Committee on Banking
and Currency
Tech v ica I A d v isc)'S

James W. Angell, Foreign Economic Administration
E. M. Bernstein, Treasury Departm ent; E xecutive Secretary of the Delegation

304

MONETARY AND FINANCIAL CONFERENCE

Malcolm Bryan, F irst Vice President, Federal Reserve Bank of A tlanta
E. G. Collado, D epartm ent of State
Henry Edmiston, Vice President, Federal Rerserve Bank of St. Louis
W alter Gardner, Board of Governors, Federal Reserve System
E. A. Goldenweiser, Board of Governors, Federal Reserve System
A. H. Hansen, Board of Governors, Federal Reserve System
Frederick Livesey, Departm ent of State
W alter Louchheim, Jr., Securities and Exchange Commission
August Maffry, D epartment of Commerce
Norman T. Ness, Treasury Department
(P .

27)

Leo S. Pasvolsky, D epartm ent of State
W arren Pierson, Export-Im port Bank
Chauncey W. Reed, House of Representatives; Member, Committee on Coin
age, Weights and Measures
Andrew L. Somers, House of Representatives; Chairman, Committee on Coin
age, Weights and Measures
M. S. Szymczak, Board of Governors, Federal Reserve System
Legal A dvisers

Ansel F. Luxford, Treasury Departm ent; C hief L egal A d viser
Ben Cohen, Stabilization Board
Oscar Cox, Foreign Economic Adm inistration
E. B. Stroud, Vice President, Federal Reserve Bank of Dallas
Secretary General of the D elegation

Charles S. Bell, Treasury D epartm ent
A ssista n ts to the Chairm an

H enrietta S. Klotz, Treasury Department
M argaret McHugh, Treasury Department
Frederik Smith, T reasury Department
A rthur Sweetser, Office of W ar Information
Technical S ecretari.es

Elting Arnold, Treasury Department
R. B. Brenner, T reasury Department
I. Lubin, Department of Labor
George Luthringer, Departm ent of State
E. E. Minskoff, T reasury D epartm ent
Dorothy F. Richardson, Treasury Department
G. Silvermaster, D epartment of A griculture
(P .

28)

URUGUAY
Delegates

Mario La Gamma Acevedo, Expert, M inistry of Finance; Chairman
Hugo Garcia, Financial Attache, U ruguayan Embassy, Washington
VENEZUELA
Delegates

Rodolfo Rojas, M inister of the T reasury; Chairmayi
Alfonso Espinosa, President, Perm anent Committee of Finance, Chamber of
Deputies
Cristobal L. Mendoza, former M inister of the T reasury; Legal Adviser to the
Central Bank of Venezuela

PROCEEDINGS AND DOCUMENTS

305

Jose Joaquin Gonzalez Gorrondona, President, Office of Import Control;
Director, Central Bank of Venezuela
S ecretary

Manuel Perez Guerrero, Chief, Office of the Committee for the Study of PostW ar Questions, M inistry of Foreign Affairs
YUGOSLAVIA
Delegate

Vladimir Rybar, Counselor of the Yugoslav Embassy, W ashington; Chairman
(P. 2 9 )
T h e D a n is h M in is t e r

Henrik de Kauffmann, Minister to the United States
A dviser

Count Benedict Ahlefeldt-Laurvig, Financial Counselor, Danish Legation,
Washington
O b s e r v e r s f r o m P u b l ic I n t e r n a t io n a l O r g a n iz a t io n s

Economic , F inancial, and T ransit D epartm ent of the League o f N ations

Alexander Loveday, Director
Ragnar Nurkse; A lte rn a te
International Labor Office

Edward J. Phelan, Acting Director
C. Wilfred Jenks, Legal Adviser; A ltern a te
United N ations In te rim Commission on Food and A g ricu ltu re

Edward Twentyman, Delegate from the United Kingdom
United N ations R elief and Rehabilitation A dm inistration
A. H. Feller, General Counsel; or

Mieczyslaw Sokolowski. Financial Adviser
(p. 3 0 )
O f f ic e r s o f t h e S e c r e t a r ia t
S ecretary General of the Conference

W arren Kelchner, Chief, Division of International Conferences, Department
of State
Technical Secretary General

F rank Coe, A ssistant Adm inistrator, Foreign Economic Administration
A ssista n t S ecretary General

Philip C. Jessup, Professor of International Law, Columbia University
Secretaries and A ssista n t Secretaries of Technical Commissions and
Com m ittees

H. J. Bitterm ann, T reasury Department
Karl Bopp, Federal Reserve Board
Alice Bourneuf, Federal Reserve Board
W. A. Brown, D epartment of State
Lauren Casaday, Treasury Department
Eleanor Lansing Dulles, D epartm ent of State
Charles H. Dyson, Colonel, United States Army, W ar Department
Mordecai Ezekiel, D epartment of Agriculture
John Fuqua, Departm ent of State
Raymond Mikesell. Treasury Department

306

MONETARY AND FINANCIAL CONFERENCE

( p . 31)
Ruth Russell, Department of State •
Orvis Schmidt, Treasury Department
A rthur Smithies, Bureau of the Budget
Leroy Stinebower, Department of State
Janet Sundelson, Treasury Department
William L. Ullmann, Captain, U n'ted States Army, W ar Department
A rthur Upgren, Federal Reserve Bank
J. P. Young, Department of State
Chief Press Relations Officer

Michael J. McDermott, Special Assistant to the Secretary of State
Assistant Press Relations Officers

Harold R. Beckley, Superintendent, Senate Press Gallery
George H. Coffelt, T reasury Department
John C. Pool, Department of State
Executive Secretary

Clarke L. Willard, A ssistant Chief, Division of International Conferences,
Department of State
Liaison Secretaries

Elbridge Durbrow, Foreign Service Officer, D epartment of State
James H. W right, Foreign Service Officer, D epartm ent of State

( P.32)
Special Assistants to the Secretary General

Edward G. Miller, Jr., Adviser, Liberated Areas Division, Department
of State
Ivan White, Foreign Service Officer, D epartment of State
A dm inis trativ e Secretary

Lyle L. Schmitter, D epartm ent of State
Assistant Administrative Secretary

P. Henry Mueller, Departm ent of State
Chief of the Interpreting and Translating Bureau

Guillermo Suro, Acting Chief, Central T ranslating Division, Department
of State
Secretary for Transportation and Special Services

M. Hamilton Osborne, Department of State
Editor of the “Journal”

Frances A rm bruster, Department of State

Document 233
C I/ 4 / R P 2

Second Report of Committee 4 of Commission I
Dr. W iliielm Keilhau, Reporter

The second meeting of Committee 4 was held on July 5. The
Committee adopted the same rules of procedure as had already
been introduced for the other committees.

PROCEEDINGS AND DOCUMENTS

307

The Committee discussed the articles dealing with immunity
and taxation exemptions of the Fund, its Governors and staff.
One of the delegations suggested that the Governors and staff
of the Fund should enjoy “diplomatic status,” but it was pointed
out that if the Governors and functionaries of the Fund were
given diplomatic status, they would, in reality, be placed in a
better position than persons belonging to any country's diplomatic
service. The fact is that the diplomats and the diplomatic staffs
are responsible to their governments which have every power to
act against them if they commit any trespasses, whilst the Gov
ernors and the staff of the Fund will be responsible to an inter
national body with no power of jurisdiction. The suggestion was
withdrawn.
The discussions revealed that a number of complicated legal
questions were connected with the substance of Article IX, Sec
tion 7 (page 43a), and it was resolved to refer these questions to
a special subcommittee to be appointed by the Chair. As members
of that subcommittee were chosen the delegates from Cuba, Nor
way, Union of Soviet Socialist Republics, United Kingdom and
the United States of America, with the delegate of the United
States as Chairman. As members of the “asterisk” committee
were chosen the same delegates with the addition of the delegates
from China, Ecuador and Poland. Consequently, these two com
mittees were able to join in a final meeting.
The work of the subcommittees as well as that of the whole
Committee encountered one difficulty of a particularly theoretical
character, as it proved to be rather difficult to find legal expres
sions which meant quite the same thing in the legal systems of
the Anglo-Saxon powers as they mean in the legal systems of
most other countries. Accordingly, the discussions, and, in par
ticular, those of the subcommittee on Article IX, Section 7, had
to concentrate on a number of legal points, but I daresay that we
at last succeeded in finding formulations which were deemed
satisfactory by the representatives of all nations participating.
The final drafts of the two subcommittees were placed before the
fifth meeting of the Committee, held on Saturday, the 8th of
July, and adopted. At the end of that meeting the Committee had
dealt with all provisos contained in the material which, until then,
had been made available. The Committee has even done more.
The fact is that most questions concerning form and status of the
Fund will be identical with the same questions in relation to the
Bank, and I should think that the solutions found and elaborated

308

MONETARY AND FINANCIAL CONFERENCE

by the Committee for the Fund may be applied to the Bank with
very slight and unimportant alterations.
If I am not mistaken, I have to report only one disagreement
on substance. It refers to Article VIII, Section 1. The Australian
delegation will bring before the Commission Alternative B (Docu
ment 32, page 34), to the effect that “a member country may with
draw from the (p. 2) Fund by giving notice in writing, and the
right of withdrawal shall not be prejudiced by membership of the
Fund being made a condition of membership of any other inter
national body.” The other delegates who partook in the discussion,
declared that the proposal could not be accepted, because the Fund
was not in a position to dictate to other international bodies what
policy such bodies might find it appropriate to adopt. Against this
observation, the Australian delegation remarked that their propo
sal would act as a recommendation from the Fund to other interna
tional bodies, and that it would be up to these bodies to attach the
right importance to such recommendation. The Australian dele
gation firmly wish the inclusion of the proviso because the whole
system of the Fund was such that an immediate and unconditional
withdrawal was left as the only means of securing the sovereignty
rights of member countries in case of serious conflicts with the
Fund.
As the various proposals of Committee 4 have been distributed
to all members of Commission I, I do not find it appropriate in
this short report to comment upon them in any detail. I should
only like to draw the attention of the members to the nature of
the problem which we have tried to solve by the provisos in Arti
cle XII, Section 1, (a), (b), and (c) (Document #198, to substi
tute for Page 46a). This problem consisted in keeping disputes
concerning the interpretation of the Agreement between the Fund
and any member country, within the setup of the Fund itself, but,
at the same time, to secure for the member in question privileges
of fair treatment. I think that members, when they read our pro
posals, will acknowledge that we have succeeded in finding a work
able solution. If a conflict should end in the withdrawal of the
member country, or disputes between member countries and the
Fund should arise after its possible liquidation, we have drafted
rules of arbitration. We have found it necessary that the Conven
tion itself prescribe the composition of the tribunal of arbitration.
We propose that each party should appoint one member and that
the umpire, unless the parties otherwise agree, shall be appointed
by the President of the Permanent Court of International Justice.

PROCEEDINGS AND DOCUMENTS

309

Document 234
CI/2/RP2

Second Report of Committee 2 on Operations of the Fund
to Commission I
Ju ly 9, 1944

P rofessor R obert M o s s e :

Revision of First Report
Upon request by Mr. Rasminsky (Canada), I want to revise
one of my statements on Page 2 of my report of July 5, 10:30
a. m., to Commission I (Doc. #128). I substitute the word “will
ingness” for the word “consent.” I did not imply that a specific
consent in the legal sense of the word was required from the capi
tal importing country; I merely meant that capital transfers in
the case of Section 2a (page 6a) will practically be impossible if
the prospective capital importing country should be unwilling to
accept these imports of capital. I was thinking in terms of ac
tuality and not in terms of legality.

In its meetings Wednesday through Saturday, Committee 2
made considerable progress, covering Article III, sections 5 to 12,
Article IV, Article V and Article VI. Unfortunately, it ducked
around a few hurdles; with, however, the firm intention to come
back and take them later.
Article III. Transactions with the Fund
(The references are always to Doc. SA/1. The numbers of the
sections are those appearing in Alternative A.)
S ec t io n 2. Conditions upon Which any Member may Purchase
Currencies of other Members, (3) (page 6a) —
Carry-over Provisions
You remember, Gentlemen, that this Commission sent back to
Committee 2, Article III, 2 (3), which can be referred to as the
carry-over question. Committee 2 in turn sent this problem to an
ad hoc Subcommittee, composed of Australian, Brazilian, Canadi
an, Chinese, French, Mexican, Dutch, British, Soviet and United
States representatives.
I am advised that this ad hoc Subcommittee has made good
progress but its report has not yet been placed before Committee
2.
Silver (page 6d)
The Committee has received an Alternative E to be inserted

310

MONETARY AND FINANCIAL CONFERENCE

as an additional section after Article III, section 2 (page 6d). This
alternative deals with the rights of silver hoarding countries to
obtain from the Fund additional foreign currency. This sugges
tion obtained support from a number of countries. There was also
a strong statement in opposition. Further discussion was deferred
when it was suggested that some modification of the waiver pro
vision might afford a satisfactory compromise.
7 /9 /4 4

(p. 2)
2 (a )—Conditions Governing Purchases
For Capital Transfers (pages 6a and 6b)
Please refer to Report No. 1, Document CI/2/RP1.
S e c tio n

S e c tio n 3 — Declaring

Members Ineligible to
Use the Resources of the Fund (page 6b)
Please see Report No. 1, Document CI/2/RP1.
S e c t io n 4 —Limitation on the Operations of the Fund (p a g e 7)
As I already said in Report No. 1, Alternative A (page 7) was
approved. I want, however, to elaborate somewhat on my remarks,
from an operative standpoint. A member country is expected to
call upon the resources of the Fund when its balance % payments
of
with one particular country becomes unfavorable. In the case of
two countries having free exchange markets, the signal will be
a weakening of the currency of the country which has an unfavor
able balance. With the old-fashioned system, the weakening would
be stopped by gold exports when the gold point is reach'ed. With
our machinery, the interested country will draw foreign currency
from a pool of reserves and there appears to be a kind of inter
national Fund point. However, I don’t think that there is any
obligation for a member country to wait until the Fund point is
reached to draw from the Fund. In the case of countries with ex
change controls, the situation of the balance of payments will
appear directly in the books of the central agency dealing with
exchange.
There are, however, two limitations on that mechanism. On
the one hand, a country can buy only the currency of another
country and can not obtain an international medium of payment,
therefore, some degree of supervision of the bi-lateral balances of
payments is entrusted to the'Fund. On the other hand, a country
can only buy foreign currency from the Fund without being able
to sell foreign currency to the Fund. This section on limitations

PROCEEDINGS AND DOCUMENTS

311

was well christened indeed. If I am mistaken in this interpreta
tion, I will be glad to be corrected.
S e c t i o n 5 —Operations for the Purpose of Preventing
Currencies from Becoming Scarce (page 8)
On section 5, page 8, general agreement was reached on Alter
native A as amended.
According to paragraph (1), the Fund may borrow the cur
rency of a country either from the Government of that country,
or from a private source or from a third country, but in the last
two cases, the Government whose currency is being borrowed
must approve of the transaction. Paragraph 2 should now read:
“Buy that currency from that member with gold.” The meaning
implied is that a country is required to sell its currency for gold.
It is also meant that the Fund may buy with gold the currency of
one member only from that particular member.
7 /9 /4 4

(P.

3)
S ec t io n 6. —Multilateral

International Clearing.
(pages 9a and 9b)
There was some discussion of this matter but it was agreed to
defer further discussion pending clarification.
S e c t i o n 7. —Acquisition by Members of the Currencies
of Other Members for Gold, (page 10)
The Committee endorses without objection section 7, Alterna
tive A, page 10. According to this section any member desiring
to obtain the currency of another member for gold shall make the
purchase from the Fund provided it can do so with equal advan
tage. Apparently this Article gives to the Fund almost a privi
lege; the idea is to channel gold to the Fund instead of allowing
member countries to use ther gold outside the Fund. Under this
rule the Fund will be able, to a certain extent, to dispose of its
holdings of national currencies and to acquire gold instead. The
only difficulty is that the phrase “provided that it can do so with
equal advantage” offers a rather easy possibility of circumvention.
S e c t i o n 8. —Other Acquisitions of Gold by the
Fund, (page 11)
The discussion of this question was deferred because Alterna
tive A has not yet been submitted to the Committee.
S e c t i o n 9 .— Transferability and Guarantee of the
Assets of the Fund, (page 12)
Section 9 was referred to the Asterisk Committee. After hear749013— 48—21

312

MONETARY AND FINANCIAL CONFERENCE

ing the report of that Committee, Committee 2 agreed to accept
paragraph (a) and paragraph (c) as they stand. But the Asterisk
Committee reported that it had not been possible to agree on para
graph (b). After a long discussion, the Committee requested the
American delegation to submit a memorandum explaining the
implications of this paragraph in economic terms; the memoran
dum should also recommend technical measures to protect the
Fund’s interests. May I suggest that the Commission not under
take any discussion until Committee 2 has further considered the
question.
S e c t io n 10. —Charges and Commissions, (p a g e 13)
Deferred because material lacking.
S ec t io n 11. — Furnishing Information, (p a g e 1 4 )
Transferred to Committee 3 of Commission I.
S e c t io n 12. —Consideration of Representations
of the Fund, (p a g e 1 5 )
This section is still being considered by the Asterisk Committee
of Committee 2.
7 /9 /4 4

(P. 4 )

Article IV. Par Values of Member Countries

On Article IV in general very good progress was made.
S e c t i o n 1. Par Values of the Currencies of Members (Page 1 6 )
This section has been approved as per Alternative A. It states
that the par values of the currency of each member shall be ex
pressed in terms of gold as a common denominator or in terms of
gold convertible currency unit.
S e c t i o n s 2 to 4. Changes in Par Value of Currencies (Page 17a)
There was a long controversy on the very familiar topic Rigid
ity vs. Stability about which we all have heard for nearly 20 years.
Probably neither the adherents of flexibility, nor the adherents of
stability have changed their minds during our discussion. But,
most of them are almost willing to end this twenty-year war by a
compromise. I was instructed to report to you that the Commit
tee made substantial progress but it was decided to defer drawing
the discussion to a conclusion until all delegates have had time to
examine the proposal more carefully. In the course of the discus
sion strong views were expressed together with some reservations;
but since the discussion has not been concluded, I thought it ad

P R O C E E D I N G S AND D O C U M E N T S

313

visable to postpone reporting reservations and recorded views
until final action is taken by the Committee.
S e c t i o n 5. Uniform Changes in Par Values (p a g e s 18, 18a, 18b)
Committee 2 has reached no agreement and has instructed me
to report that there is wide diversity of opinion.
The issue concerned the majority which would be required in
order to decide on a uniform change in the gold value of member
currencies. Some committee members wanted the decision to re
quire the approval of each country having 10% or more of the
quotas. Others insisted that the question should be decided by a
majority vote based on voting power as determined by quotas.
And many others would like to see the question decided by a ma
jority of the countries, each country casting one vote.
As a matter of fact these different ideas are diversely combined
in the various alternatives. One obvious underlying fact is that
countries with a small quota favor having one vote by country.
But there is also another underlying issue, namely that the rules
on voting determine the degree of flexibility. The more stringent
the rule of the majority, the less the possibility of changes in the
gold value.
7 /9 /4 4

(p. 5) The question is a very intricate one and the only thing
I can do is to offer, in a personal capacity, the suggestion that the
question be dealt with by Committee 3 as a part of the general
problem of voting. As a further suggestion, your reporter feels
that there should be one or two general rules concerning the voting
and these rules should be applied in all cases instead of having to
decide for each problem what kind of majority is required.
S ec t io n 6. Protection of the Assets of the Fund, (p a g e 19.)
This Section 6 was generally agreed upon with a slight change
in the wording (see minutes of meeting, July 7th, 2:30). This
Section states that the Fund may have neither losses nor profits
out of its holding foreign currencies, in case of change in the
value of the currency. This principle is usually referred to as a
“gold clause”.
S ec t io n 7. Separate Currencies Within a Member’s Jurisdiction.
(page 20.)
Alternative A, page 20, was accepted, with the suggestion to
our legal friends to consider the word “however”. Section 7
merely states that in case of various currencies in the different
territories of one member, this member has the option to decide

314

MONETARY AND FINANCIAL CONFERENCE

whether the change relates to the metropolitan currency alone or
to one or more specified subordinate currencies.
With this Section, we close Article IV.
Capital Transactions
1. Use of Resources of the Fund for Transfer of Capital.
Article V.

S e c t io n

(page 21.)
After a very informative discussion, there was a general agree
ment on this Section (see Minutes of meeting, July 7th, 2:30).
According to this Section, as amended, a member may not make
net use of the resources of the Fund to meet a large out-flow of
capital. But the use of the Fund is permitted for capital transac
tions of a reasonable amount required for the ordinary course
of business. A point well made by the Delegate from India and
supported by the Delegate from the United Kingdom was that the
movement of capital goods is not restricted in any way by this
Article.
Limitation on Controls of Capital Movements.
(page 22.)
Committee 2 agreed upon the following new draft: “Members .
may exercise such controls as are necessary to regulate inter
national capital movements, but no member may exercise
S e c t io n 2.

7 /9 /4 4

(p. 6) such controls in a manner which will restrict payments for
current transactions or which will unduly delay the transfer of
funds.........” and so on, as per Alternative A.
This Article is certainly a very important one because it rec
ognizes the right of any member country to organize or to main
tain an exchange control for capital movements. Furthermore,
as per Section 1, page 21, the Fund is authorized to request a mem
ber to set up such controls. Although the general purpose of the
Fund is to foster free exchanges, it is remarkable that the experts
have found it advisable not only to make provisions allowing ex
change control for capital movements, but also recommending it
in some cases. It will certainly be difficult to draw a line between
controlling movements of capital and controlling transactions for
trade purposes.
Article VI. Apportionment of Scarce Currencies, (p age 2 3 b .)

There was general agreement on Section 1, Section 2, Section 3
and Section 4 of this Article. According to these sections, when
a currency becomes scarce, the Fund shall formally declare the
scarcity of that currency and shall henceforth apportion the supply

P R O C E E D I N G S AND D O C U M E N T S

315

of that currency with due regard to the relative needs of members,
to the general international economic situation and to any other
pertinent considerations. Those members whose currency has be
come scarce may temporarily limit the freedom of exchange
operations. Although this Article was approved, some reserva
tions were expressed concerning the way in which the scarce
currency or currencies will be apportioned. It seems clear that
Alternative A practically gives a blanket control to the Fund.
Specifically, the question was raised as to which majority will be
necessary to decide upon such matters.
7 /9 /4 4

APPENDIX

£2
o\

STATUS OF ASSIGNMENTS OF COMMITTEE 2 (COMMISSION I)
O p e r a t i o n s o f t h e F u n d a s o f 7 : 0 0 p . m ., J u l y 8 , 1 9 4 4

(References Made to Doe. S A / 1 )

ARTICLE III.

Language
Accepted

Referred to
Drafting or
Other
Subcommittee

Transactions with the Fund
III.l.
Alt.A. as
amended

Par. (2)

III.2.
Introd.
Sentence.
Alt. A
111.2.(1)
Alt. A
111.2.(2)
Alt. A

Par. (3)
Par. (4)

CONFERENCE

Par. (1)

111.2.(3)
111.2.(4)
Alt. A ,

Other
Action

FINANCIAL

Section 2. Conditions Upon Which Any Member May Pur
chase Currencies of Other Members, Alt. A, p. 6a
Introductory Sentence

No Action
or
Decision.
Deferred,

AND

Section 1. Agencies Dealing with the Fund, Alt. A, p. 5.

Referred to
Commission I
W ithout
Decision

MONETARY

Article and Section—
(Sections as numbered in Alternative A)

Final Sentence

L anguage
Accepted

'Keferred to
D raftin g or
Other
Subcom m ittee

Referred to
Com m ission I
W ithout
D ecision

No A ction
or
D ecision.

Deferred

Other
Action

III.2. Fin.
Sent.Alt. A

(P . 2 )

III.2a,
Alt. A

Section 3. Declaring Members Ineligible to use Resources of
the Fund, Alt. A, p. 6b

III .3
Alt. A

Section 4.

II 1.4.
Alt. A

Limitations on Operations of the Fund, Alt. A, p. 7

AND

Section 2(a). Conditions Governing Purchases for Capital
Transfers, Alt. A, pp. 6a, 6b

DOCUMENTS

Section 5. Operations for Purpose of Preventing Currencies
Becoming Scarce, Alt. A, p. 8
Par. (1) and (2)

PROCEEDINGS

III .2
Alt. E

Alt. 10, p. Gd

111.5(1) (2)
Alt. A as
amended
III .6
Alt.A,B

Section 6. Multilateral International Clearing, Alt. A and B,
pp. 9, 9a
(P. 3 )
Section 7. Acquisition by Members of the Currencies of Other
Members for Gold, Alt. A, p. 10

III .7.
Alt. A

oo
j- j

—
-4

Article and Section—
(Sections as numbered in Alternative A)

Language
A ccepted

R eferred to
D raftin g or
Other
Subcom m ittee

R eferred to
C om m ission I
W ithout
D ecision

No A ction
or
D ecision .
D e fe rr ed

00
h -I

Other
A ction

MONETARY

III.8
Material
Lacking

Section 8. Other Acquisitions of Gold by the Fund, pp. 11,
11a, lib ,1 1 c
Section 9. Transferability and Guarantee of Assets of the
Fund, Alt. A

AND

111.9(a).
Alt. A

Par. (a)

111.9(c)
Alt. A

Section 10. Charges and Commissions, Alt. A. and B, p. 13

Section 12. Consideration of Representations of the Fund,
Alt. A and B, p. 15
(P. 4 )

Par Values of Member Currencies

Transferred
to Com. 3 of
Com. I
III.12.
Alt. A &
Alt. B

CONFERENCE

III.10.
Alt.A,B
Material
Lacking

Section 11. Furnishing Information, Alt. A and B, pp. 14, 14a,
14b

ARTICLE IV.

FINANCIAL

111.9(b).
Alt. A

Par. (b)
Par. (c)

O
S

Article and Soction—
(Sections as numbered in Alternative A)

L anguage
A ccepted

Section 1. Par Values of the Currencies of Members, Alt. A,
3e3
p. 16

R eferred to
D ra ftin g or
O ther
Subcom m ittee

No A ction
or
D ecision.
D e fe rr ed

R eferred to
Com m ission I
W ith out
D ecision

Other
A ction

IV.1.
Alt. A
Transferred
to Article
X III, p. 49,
Doc .SA/1

Section 2, 3, 4. Changes in Far Values, Alt. A, B, pp. 17a, j
17aa, 17b
j

IV.2,3,4

|
!

1
i!

Section 6. Protection of the Assets of the Fund, Revised j IV.6.
Alt. A, p. 19
; Rev. Alt.A
Section 7. Separate Currencies Within a Member’s Jurisdic
tion, Alt. A, p. 20

IV.7.
Alt. A

i
i

(p. 5)
ARTICLE V.

DOCUM ENTS

IV.5

AND

Section 5. Uniform Changes in Par Value, Alt. A, B, C, pp. ;
18, 18a, 18b
|

PROCEEDINGS

Alt. B, p. 16a

;

Capital Transactions

Section 1. Use of Resources of the Fund for Transfers of
Capital, Alt. A, p. 21

V.l.

Alt. A
As Amended

05
h—I
'O

Section 2. Limitations on Controls of Capital Movements,
Alt. A, p. 22

R eferred to
C om m ission I
W ithout
D ecision

No A ction
or
D ecision.
D e fe rr ed

V.2.
Alt .A
As Amended

Apportionment of Scarce Currencies
VI.l. Alt. A

Section 2. Scarcity of the Fund’s Holding, Alt. A, p. 23b

VI.2. Alt. A

ARTICLE X. Transitional Arrangements
1

!
i|

Section 5. Fixing Initial Par Values

X III.5
Material
Lacking

CONFERENCE

Final Provisions

X
Material
Lacking

FINANCIAL

Section 1. General Scarcity, Alt. A, p. 23a

ARTICLE X III.

Other
A ction

AND

ARTICLE VI.

R eferred to
D raftin g or
Other
Subcom m ittee

MONETARY

Language
A ccepted

A rticle and Section—
( Sections as num bered in A ltern a tiv e A )

P R O C E E D I N G S AND D O C U M E N T S

321

APPENDIX B
T ex t

S ectio n s
of

A pproved by C o m m it t e e 2
C om m ission I

Article III, Section 1, Alternative A am ended (p . 5 )

Each member country shall deal with the Fund only through
its Treasury, Central Bank, Stabilization Fund or other simi
lar fiscal agency and the Fund shall deal only ivith or through
the same agencies.
Article III, Section 2 (Introductory cla u se), Alternative A (p . 6 a )

Conditions upon which any Member may purchase currencies
of other Members. A member shall be entitled to buy the
currency of another member from the Fund in exchange for
its own currency subject to the following conditions:
Article III, Section 2 ( 1 ) Alternative A (p . 6 a )

The member initmting the purchase represents that the cur
rency requested is presently needed for making payments in
that currency which are consistent with the provisions of this
Agreem ent;
Article III, Section 2 ( 4 ) Alternative A (p . 6 a )

The Fund has not previously declared under Section 3 of this
Article that the member initiating the purchase is ineligible
to use the resources of the Fund.
Article III, Section 2 (F inal S en ten ce), Alternative A (p . 6 a )

The Fund may, in its discretion, and on terms which safe
guard its interests, waive any of these conditions. In special
circumstances, where the Fund considers it necessary, it may
require collateral security as a condition of such waiver.
Article III, Section 2a, Alternative A (p . 6a and 6 b )

If the Fund’s holdings of the currency of a member have
remained below 75 percent of its quota for a period not less
than six months such member shall be entitled, notwithstand
ing the provisions of Article V, Section 1, to buy the cur
rency of another member from the Fund for its own currency
for any purpose, including capital transfers, provided, how
ever, that purchases for capital transfers may not have the
effect of raising the Fund’s holdings of the currency of such
member above 75 percent of its quota, or reducing the Fund's
holdings of the currency purchased below 75 per cent of the
quota of the member whose currency is purchased.
Article III, Section 3, Alternative A (p . 6 b )

Declaring Members Ineligible to Use the Resources of the
Fund.
Whenever the Fund is of the opinion that any member

322

MONETARY AND FINANCIAL CONFERENCE

is using the resources of the Fund in a manner contrary to
the purposes of the Fund, it shall present to the member a
report setting forth the views of the Fund and stating a
suitable time for reply. After presenting such a report to a
7/9/44

(P- 2 )

member the Fund may limit the use of its resources by the
member. If no reply to the report is received from the mem
ber within the stated time, or the reply received is unsatis
factory, the Fund may continue to limit the member’s use of
the Fund’s resources or, after giving reasonable notice to the
member, declare it ineligible to use the resources of the Fund.
Article III, Section 4 , Alternative A (p . 7 )

Limitation on the operations of the Fund.
Except as otherwise provided in this Agreement, operations
for the account of the Fund shall be limited to transactions
for the purpose of supplying a member, on the initiative of
such member, with the currency of another member in ex
change for the currency of the member initiating the trans
actions or for gold.
Article III, Section 5 (Introductory c la u se), Alternative A (p . 8 )

Operations for the Purpose of Preventing Currencies from
Becoming Scarce.
The Fund may, if it deems such action appropriate to prevent
the currency of any member from becoming scarce, take
either or both of the following steps:
Article III, Section 5 ( 1 ) , Alternative A as A m ended (p . 8 )

Propose to the member that, on terms and conditions agreed
between them, it lend such currency to the Fund or, with the
approval of the member, that the Fund borrow such currency
from some other source either within or outside the territory
of the member; but no member shall be under any obligation
to make such loans to the Fund or to approve the Fund’s
borrowing its currency from any other source.
Article III, Section 5 ( 2 ) , Alternative A as A m ended (p . 8 )

Buy that currency from that member with gold.
Article III, Section 7, Alternative A (p . 1 0 )

Acquisition by Members of the Currencies of Other Members
for Gold.
Any member desiring to obtain, directly or indirectly, the
currency of another member for gold shall, provided that it
can do so with equal advantage, acquire the currency by the

PROCEEDINGS AND DOCUMENTS

323

sale of gold to the Fund. Nothing in this Section shall be
deemed to preclude any member from selling in any market the
new production of gold from mines located within territory
subject to its jurisdiction.
7 /9 /4 4

(p. 3)
Article III, Section 9, (a ) Alternative A (p . 1 2 )

All assets of the Fund shall, to the extent necessary to carry
out the operations prescribed by this Agreement, be free from
restrictions, regulations and controls of any nature imposed
by members.
Article III, Section 9, (c ) Alternative A (p . 1 2 )

All assets of the Fund shall be guaranteed by each member
against loss resulting from failure or default on the part of
the despository designated by such member.
Article IV, Section 1, Alternative A (p . 1 6 )

Par Values of the Currencies of Members.
The par value of the currency of each member shall be ex
pressed in terms of gold, as a common denominator, or in
terms of a gold-convertible currency unit of the toeight and
fineness in effect on July 1, 19kh. All computations relating
to currencies of members for the purpose of applying the pro
visions of this Agreement shall be on the basis of their par
values.
Article IV, Section 6, Alternative A as Am ended, (p . 1 9 )

Protection of the Assets of the Fund.
No change in the foreign exchange value of the currency of
any member shall alter the gold value of the assets of the
Fund. Whenever (i) the par value of a currency of a mem
ber is reduced, or (ii) the foreign exchange value of the cur
rency of any member has depreciated within its jurisdiction
to a significant extent in the opinion of the Fund, the mem
ber shall compensate the Fund by paying to the Fund within
a reasonable time an amount of its own currency equal to
the reduction in the gold value of the currency of such mem
ber held by the Fund. Whenever the par value of the cur
rency of any member has been increased the Fund shall com
pensate such member by returning, within a reasonable time,
an amount in the currency of such member equal to the
increase in the gold value of the currency of such member
held by the Fund.
The provisions of this Section shall apply to the case in which
a uniform proportional change is made in the par values of

324

MONETARY AND FINANCIAL CONFERENCE

the currency of all members, unless at the time when such a
change is proposed to be made the Fund shall declare them to
be inapplicable.
Article IV, Section 7, Alternative A (p . 2 0 )

Separate Currencies within a Member’s jurisdiction.
A member proposing a change in the par value of its currency
shall be deemed, unless it declares otherwise, to be proposing
a corresponding change in the par value of the currencies of all
territories under its jurisdiction. It shall however be open
to a member to declare that its proposal relates either to the
metropolitan currency alone, or to one or more specified
subordinate currencies alone, or to the metropolitan currency
and one or more specified subordinate currencies.
7 /9 /4 4

(P- 4 )

Article V, Section 1, Alternative A as Am ended (p . 2 1 )

Use of the Resources of the Fund for Transfers of Capital.
A member may not make net use of the resources of the Fund
to meet a large or sustained outflow of capital, and the Fund
may request a member to exercise controls to prevent such
use of the resources of the Fund. If after receiving such re
quest, a member fails to exercise appropriate controls the
Fund may declare such member ineligible to use the resources
of the Fund.
This Section is not intended to prevent the use of the re
sources of the Fund for capital transactions of reasonable
amount required for the expansion of exports or in the ordi
nary course of trade, banking or other business. Capital
movements which are met out of a member’s own resources
of gold and foreign exchange are not affected by this section,
but members undertake that such capital movements will be
in accord with the purposes of the Fund.
Article V, Section 2, Alternative A as Am ended (p . 2 2 )

Limitation on Controls of Capital Movements.
Members may exercise such controls as are necessary to reg
ulate international capital movements but no member may
exercise such controls in a manner which will restrict pay
ments for current transactions or which will unduly delay
the transfer of funds in settlement of commitments, except as
provided in VI, 2 and in X.
Article VI, Section I , Substitute Alternative A (p p . 23b and 2 3 c )
# S e c t io n 1.

General Scarcity
If the Fund finds that a general scarcity of a particular cur-

P R O C E E D I N G S AND D O C U M E N T S

325

rency is developing, the Fund may so inform members and may
issue a report setting forth the causes of the scarcity and con
taining recommendations designed to bring it to an end. In the
preparation of such report there shall participate a representa
tive of the member the currency of which is involved.
# S e c t io n 2. Scarcity of the Fund’s Holdings
If it becomes evident to the Fund that the demand for a mem
ber’s currency seriously threatens the Fund’s ability to supply
that currency, the Fund whether or not it has acted under Sec
tion 1 above, shall formally declare such currency scarce and
shall thenceforth apportion the existing and accruing supply
of the scarce currency with due regard to the relative needs
of members and the general international economic situation
and any other pertinent considerations. The Fund shall also
issue a report concerning its action. The formal declaration
shall operate as an authorization to a member, after consulta
tion between such member and the Fund, temporarily to limit
the freedom of exchange operations in the affected currency.
Subject to the provisions of Article IX, Section 2 (J. S.), the
member shall have complete jurisdiction in determining the
nature of such limitations, but they shall be no more restrictive
than is necessary to limit the demand for the scarce currency
to the supply of it held by, or accruing to, the member in ques
tion ; and they shall be relaxed and removed as rapidly as con
ditions permit. This authorization shall cease to be in effect
whenever the Fund formally declares the currency in question
no longer scarce.
7 /9 /4 4

(P. 5)
#SEC TI0N 3.

Administration of Restrictions on Scarce Currencies.
Any member imposing restrictions in respect of the currency
of any other member pursuant to the provisions of this Article
shall give sympathetic consideration to any representations
which may be made by such other member regarding the ad
ministration of such restrictions.
# S e c t io n 4. Effect of Other International Agreements on Re
strictions on Scarce Currencies.
Members agree not to invoke the obligations of any engage
ments entered into with other members prior to this Agreement
in such a manner as will prevent the operation of the provi
sions of this Article,
7/9/44

326

MONETARY AND FINANCIAL CONFERENCE
Document 235
C ll l / A

Report Submitted to Commission III by the Agenda
Committee Appointed to Receive and Consider Proposals
Submitted for Consideration in Commission III
(To be presented at m eeting of Commission I I I , Ju ly 10)

Bretton Woods, July 1 0 ,19A4Mr . C h a ir m a n :

At the first meeting of Commission III held at 5:00 p. m. on
July 3, 1944, an Agenda Committee was appointed to receive and
consider topics submitted as appropriate for consideration in
Commission III. During the week ten proposals were received by
the Agenda Committee.
After studying these proposals, it appeared to the members of
the Agenda Committee that the proposals related to three general
fields of interest. One of the proposals related to the use of Silver
for international monetary purposes. Several proposals related to
the general subject of looted property and assets controlled by the
enemy. A number of other proposals related to economic and fi
nancial policies and the publication and interchange of informa
tion. Accordingly, it is the recommendation of the Agenda Com
mittee that there be established in Commission III three “ad hoc”
committees to consider these general fields of interest and to make
recommendations to the full Commission for action to be taken at
this Conference with respect to their respective fields.
Committee 1 would be charged with making recommendations
concerning “The Use of Silver for International Monetary Pur
poses;” Committee 2 would make recommendations concerning
action to be taken by this Conference relating to “Enemy Assets,
Looted Property, and Related Matters;” and Committee 3 would
be charged with proposing recommendations to be made by this
Commission relating to “Economic and Financial Policies, Ex
change of Information, and Other Means of Financial Coopera
tion”.
It was felt by the members of the Agenda Committee that all
of the proposals received by it should be placed before the mem
bers of this Commission for such discussion as might be desired
in the light of the recommendations of the Agenda Committee.
Accordingly, I will read the full text of the proposals, indicating
in each case the Committee to which the proposal, in the opinion
of the Agenda Committee, should be assigned. It is suggested,
Mr. Chairman, that after the reading of each proposal the Dele-

PROCEEDINGS AND DOCUMENTS

327

gation which submitted it be permitted to make supporting or
clarifying remarks, should it care to do so, and any other Dele
gation wishing to comment upon the proposal be afforded an
opportunity to do so.
1. Proposal on silver submitted by Mexican Delegation:
(p. 2) W hereas it is undeniable that about half of the world’s
population prefers silver coins to any other kind of currency for
everyday use and trade, as well as for hoarding;
W hereas the economically weaker silver-using nations of the

world, upon becoming members of the proposed International
Monetary Fund, would in fact agree, among other things, to
collaborate with the stronger nations in the establishment of a
world-wide free market for gold, and in the maintenance of a
stable and fair price for that metal;
W hereas it is just and fair that, in due correspondence, the
economically stronger countries should agree to extend their co
operation to the economically weaker ones, in order that silver
may also have an ample market and a relatively stable and fair
international price;
W h ereas , to comply fully with the proposed agreement, the
silver-using peoples would need proportionately larger, and there
fore more burdensome, monetary reserves, since besides their
normally heavy investments in silver coins, they would also have
to maintain a gold reserve proportionately as large as that of any
gold-using nation;
W hereas it is not fair that the economically weaker peoples
should carry the whole weight of their silver stocks, as well as the
heavy losses caused by the wide fluctuations of their international
value, and carry besides their proportionate share of the gold
stocks;
W hereas it has been fully demonstrated by the farsighted

policy of the United States during the past decade, that it is not
only possible but equally feasible, without the slightest danger
to the monetary equilibrium even of a single nation, to maintain
stable the relative international prices of gold and silver, and to
stabilize both prices in terms of a single currency;
W hereas it should be relatively easier and less costly for the
United and Associated Nations to establish a fair and reasonable
international price for silver than to fix one for gold, inasmuch as
the present value of the visible stocks of gold is around thirty
billion dollars, while that of silver is only a fifth or a sixth of
that amount;
W hereas one of the main purposes of this Conference should
749018--48■-22

328

MONETARY AND FINANCIAL CONFERENCE

evidently be, not to select gold or anything else as a metallic
standard which would lead the world back into the rigidity of an
arbitrary yardstick for national and international values, but
rather to lay the foundations of a well-integrated world monetary
system, wherein certain important currencies generally accepted
in international trade, as well as gold and silver itself, can and
should be used to great advantage, each to fulfill a different inter
national function;
(p. 3) W hereas in the proposed agreement it is foreseen that
the Monetary Fund may be forced to change the price of gold in
terms of all the member countries’ currencies, in order to provide
additional means of international payments;
W hereas silver, because of its traditional monetary use by
approximately half of the inhabitants of the world, can and should
be used as a collateral monetary metal for meeting such increases
in credit requirements of member countries:
W hereas in principle there can be no better grounds for pegging
the price of gold in terms of the United Nations’ currencies, than
those for preventing the wide fluctuations of the international
price of silver, in relation to the same currencies;
W hereas the wide fluctuations in the international value of
silver besides placing a heavy risk on the shoulders of those
countries least able to carry it, are the direct source of recurrent
dislocation of the monetary system of silver-using countries; and
W hereas it is technically possible to achieve a minimum price
of gold and a maximum price for silver in terms of all the cur
rencies of member countries;
The Mexican Delegation presents for the consideration of this
Conference the following tentative plan to link silver with gold
for international monetary purposes:
I. That the Monetary Fund should buy and sell from and to
member countries gold and silver together and jointly, at
the fixed rate in terms of member currencies and in a
ratio of, say, one ounce of pure gold to ten ounces of fine
silver.
II. That member countries would agree to buy and sell from
and to the Fund, and from and to one another, gold and
silver together and jointly, at the same rate and in the
same ratio as above.
III. That the Fund should have power:
a. To alter permanently, by a four-fifths majority vote,
the proportions of gold and silver set forth above in I
and II, only when a permanent and fundamental change

P R O C E E D I N G S AND D O C U M E N T S

329

in the average yearly rate of production and consump
tion of both metals has taken place; and
(p. 4) b. To eliminate silver entirely but temporarily from its
joint purchases and sales of gold and silver, and to per
mit member countries to do likewise, only when and
just as long as, due to an increase in the price of silver,
over and above an agreed ceiling, the price of one ounce
of pure gold in the basic composite unit as defined under
I and II above, should be less than the agreed minimum
price of thirty-five U. S. dollars per ounce.
T he Mexican Delegation submits to this Conference the fol
lowing RESOLUTION:
A. That the Fund shall determine the feasibility of linking
silver with gold for international monetary purposes, in
accordance with the formula preinserted or any other
formula;
B. That the Fund shall be authorized to carry out whatever
policy it deems appropriate as regards the proper role and
function of silver within the international monetary struc
ture.
The Agenda Committee recommends that this proposal be re
ferred to Committee 1 on the use of Silver for International
Monetary Purposes.
2. Proposal on enemy assets, submitted by the Polish Delegation:
I. That the members of the United Nations Monetary Fund
approach at the earliest possible time the neutral countries
with a view to securing their cooperation in blocking all
the assets of Axis governments and nationals located in
neutral territory;
II. That the blocked assets referred to above be liquidated by
an appropriate United Nations agency and the proceeds
used in settling the claims of the countries which are vic
tims of Axis aggression;
III. That the neutral countries which will collaborate in the
above-mentioned measures become eligible for membership
in the Fund and in the Bank.
The Agenda Committee recommends that this proposal be
referred to Committee 2 on Enemy Assets, Looted Property, and
Related Matters.
(p. 5) 3. Proposal on enemy assets and looted property sub
mitted by the French Delegation:
That Commission III consider and make recommendations
concerning steps to be taken to prevent the enemy from sue-

330

MONETARY AND FINANCIAL CONFERENCE

cessfully secreting funds in neutral territories or in United
Nations territories under assumed names.
The measures to be recommended should apply to beneficiaries
of property looted by the enemy, whether such beneficiaries
be enemy nationals, or their associates of whatever na
tionality. They should be directed in particular against Axis
leaders and their collaborators in occupied countries, war
criminals and associates, who might attempt, by retaining
control of such funds, to perpetuate their influence, power
and ability to plan future aggrandizement and domination
in the post-war period.
The Agenda Committee recommends that this proposal be
referred to Committee 2 on Enemy Assets, Looted Property, and
Related Matters.
4. Proposal concerning the liquidation of the Bank for Interna
tional Settlements, submitted by the Norwegian Delegation:
Be it resolved that the United Nations Monetary and Financial
Conference recommends the liquidation of the Bank for Interna
tional Settlement at Basel. It is suggested that the liquidation shall
begin at the earliest possible date, and that the Governments of
the United Nations now at war with Germany, appoint a Com
mission of Investigation, in order to examine the management
and transactions of the bank during the present war.
The Agenda Committee recommends that this proposal be re
ferred to Committee 2 on Enemy Assets, Looted Property, and
Related Matters.
5. Proposal for an international agreement on maintenance of
high levels of employment submitted by the Australian Delega
tion.
W hereas the raising of standards of living throughout the
world must be the primary aim of economic policy and the most
essential conditions for this and for the achievement of the objec
tives set out in Article I of the International Monetary Fund are
the promotion and maintenance of high levels of employment;
and
(p. 6) W hereas the operations of the International Monetary
Fund and other forms of international economic cooperation will
have the best prospects of success if member countries by domestic
measures maintain high levels of employment and consumption
and by so doing enable the accumulation of persistent credit (and
debit) balances on international account to be avoided;
This Conference RESOLVES that Governments which are to be

P R O C E E D I N G S AND D O C U M E N T S

331

invited to accept an International Monetary Agreement should
be invited to accept concurrently an international agreement in
which the signatories will pledge themselves to their own people
and to one another to maintain high levels of employment in their
respective countries, and to exchange information on measures
necessary to prevent the growth of unemployment and its spread
to other countries.
The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
6. Proposal remanded to Commission III from Commission I con
cerning the settlement of abnormal indebtedness arising out of
the war, submitted to Commission I as Alternative G by the
Delegation from India:
To promote and facilitate the settlement of abnormal indebt
edness arising out of the war.
The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
7. Proposal concerning the use of members’ gold contribution to
the Fund as coverage for note issuance, submitted by the Nor
wegian Delegation:
Member States whose note issue, according to their monetary
legislation, bears some relation to the holdings of gold and/or
gold convertible exchange of their central bank or some
other institution, are advised to allow their gold contribution
to the Fund to be regarded as part of the gold coverage of
the note issue.
Member States possessing rules limiting their note issue, are
advised to regard notes held by the Fund as additional
fiduciary money, which should not be included in the amount
of notes bearing any required relation to prescribed legal cov
erage.
(p. 7) The Agenda Committee recommends that this proposal
be referred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
8. Proposal concerning a political prerequisite for admission of
Germany and Japan to membership of the Fund or Bank, sub
mitted by the Norwegian Delegation:

332

MONETARY AND FINANCIAL CONFERENCE

Be it resolved that the United Nations Monetary and Finan
cial Conference is of the opinion that neither Germany nor Japan
should be admitted to membership of the United and Associated
Nations Monetary Fund or Bank for Reconstruction and De
velopment until the country in question has been admitted to the
planned Political World Organization.
The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
9. Proposal for a conference on commercial policy submitted by
the Delegation from Peru:
W hereas the International Monetary Fund is devised to main
tain orderly exchange arrangements and to lend help to member
countries by supplying their needs of foreign exchange of a
temporary nature not due to fundamental disequilibrium in their
international balance of payments;
W hereas the Fund is not meant to deal with basic economic
factors which affect the rate of employment and production in
the world at large;
W hereas the Bank will, as its name implies, act only in the

fields of Reconstruction and Development;
W hereas the successful operation of these two institutions is
dependent on the smooth development of economic phenomena
free from crises of a disruptive nature; and,
W hereas this condition requires the relaxation of artificial
trade barriers to attain greater freedom of commerce; the pro
vision of adequate markets for staple products on which so many
national economies depend; and the attainment and maintenance
of a high degree of employment and production which will raise
the stadards of life and conditions of labour everywhere, which
must be one of the primary objects of economic policy;
R esolved that for the successful attainment of the objects to

be pursued by the International Monetary Fund and the Bank
for Reconstruction and Development a Conference of the United
and Associated Nations on Commercial Policy be called to make
recommendations for the achievement of greater freedom of
commerce and for the orderly (p. 8) marketing of staple
products; and that, in the sense of this Conference, the nations
here assembled should pursue policies to promote the fuller em
ployment of the nations’ resources both of men and materials.

P R O C E E D I N G S AND D O C U M E N T S

333

The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
10. Proposal on status of earmarked gold submitted by the Mexi
can Delegation:
W hereas the practices for earmarking gold might not coincide
in all particulars in different countries;
W hereas earmarked gold is part of the monetary reserve of
such countries and therefore should be free from all restrictions
as to its use, transfer, and transportation; and
W hereas , in order to avoid unnecessary movements of gold
and thereby reduce to a minimum the cost and risks involved, it
would be convenient to adopt a common international policy with
respect to such gold;
R esolved that the countries represented at this Conference
agree to extend to earmarked gold the same treatment and immunites they may agree to give to the gold and other assets of the
International Monetary Fund.
The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.
Mr. Chairman, all of the proposals received to date by the
Agenda Committee have now been placed before Commission III
together with recommendations of the Agenda Committee—namely:
that there be established in this Commission three “ad hoc” com
mittees to consider these proposals and to make recommenda
tions to the full Commission concerning action to be taken at this
Conference with respect to the general subject assigned to each
committee.
Respectfully yours,
(Signed) L udwik Grosfeld (Poland)
L u d w ik G r o s f e ld ,

Chairm an

(Signed) J. W. B ey en (Netherlands)
J. W. B e y e n
(Signed) F ernando Mardones (Chile)
F ern a n d o M ard on es

(Signed)

H ugo Garcia (Uruguay)

H ug o G a r c ia

(Signed)

George B lowers (Ethiopia)

G eorge B lo w e r s

To the Honorable Eduardo Suarez
Chairman of Commission III

334

MONETARY AND FINANCIAL CONFERENCE
Document 236

(p. 39a)

sa/ 1/43
A lt e r n a t iv e B

(Suggested as an alternative to A lternative A, Section 3, P aragraph (c)
of Article IX, Page 39)

(c) Exchange transactions in the territory of one member
involving the currency of any other member, which evade or
avoid the exchange regulations prescribed by that other member
and authorized by this Agreement, shall be an offense in the
territories of all members.
7 /9 /4 4

J.S. Art. IX
Section 2

Document 237
(p .

26-G)

S A / 1 44

A lt e r n a t iv e G

(The following material is suggested as an addition to Com
bined Alternatives A and B for Joint Statement VII, 1, 2, and 3
and Additional Material on p. 27 of Document SA /1.)
(a) Add to Section 2:
Directors shall continue in office until their successors are
appointed or elected.
(b) Add as a new section after Section 3:
4.
If the office of an elective director becomes vacant more
than ninety days before the end of his term, another director
shall be elected for the remainder of the term by the members who
elected the former director. A majority of the votes cast shall be
required for election. While the office remains vacant, the alter
nate of the former director shall exercise his powers, except that
of appointing an alternate.
(Renumber subsequent sections.)
7 /9 /4 4

J.S. Art. V II
Sections 1, 2 & 3

P R O C E E D I N G S AND D O C U M E N T S

335

Document 238
C I/ 1 / R P 2

Report of the Reporting Delegate of Committee 1 of
Commission I on the Purposes, Policies, and
Quotas of the Fund
(Ju ly

.9,

1944)

Mr . C h a i r m a n :

Since I had the honor to present to your Commission my first
report on July 5th, your Committee I on Purposes, Policies, and
Quotas of the Fund held three meetings, on July 5th at 4 :00 p.m.;
on July 6th at 10:00 a.m.; and on July 8th at 9 :30 a.m.
I consider it advisable, for the convenience of the members
of this Commission, to report on the progress of the Committee's
work by following the order of the Committee's assignments as
stated in Document No. 51, and by referring to the Articles and
sections of Document SA/1.
At the end of this report I shall submit to the Commission the
actual text of the provisions recommended by Committee 1 to
your commission for acceptance, and a summary record of the
disposition thus far made by the Committee of other matters
submitted to it.
Article I, Alternative A
S e c tio n 1 (p. l a )

The purpose of section 1 of Alternative A was to substitute
for the words of Section 1 of Article I of the Joint Statement
“through a permanent institution which provides . .
the words
“by providing permanent machinery . .
The Committee has shown a preference for the original word
ing of the Joint Statement although it recognizes that the insti
tution mentioned in the Joint Statement may be the Fund itself,
and that the Fund would provide permanent machinery for con
sultations on international monetary problems.
S e c tio n 2 (p. l a )

As I have reported on page 2 of my first report to your Com
mission, an Alternative C, Section 2 of Article I, (page lc) pre
sented by the Indian Delegation raised a question of principle
regarding the purposes of the Fund.
The question was referred to the Drafting Committee, which
was also asked to examine three other alternatives to the same
Section 2 of Article I presented by the Colombian, French, and
New Zealand Delegations.

336

MONETARY AND FINANCIAL CONFERENCE

After considerable discussion on all issues involved in these
alternatives, both in the Drafting Committee and in Committee 1,
the full Committee accepted a proposal by the Drafting Committee
7/9/44

to (p. 2) add to Section 2 of Article I of Alternative A, page la,
after the words “of high levels of employment,” the words “and
to the development of the sources of productive power in all mem
ber countries . . ", and to delete the words “and real income”.
The Committee was guided in its decision by the general prin
ciple that the declaration of the purposes and policies of the Fund
must be in agreement with the real objectives and powers of the
Fund as stated in the provisions contained in its constitutional
document and with the means put at its disposal.
The Committee thought that the direct purpose which the Fund
can and must pursue by using the powers and means at its dis
posal is to facilitate the expansion and balanced growth of inter
national trade and that the promotion of high levels of employ
ment and the development of the productive resources of the
country may be and, it is hoped that it will be, an indirect result
of the activities of the Fund.
The Committee reached this decision because it felt obligated
to limit its considerations to the one particular plan of post-war
collaboration of the United and Associated Nations which is now
under discussion, namely, the Fund.
In view of the fact, however, that the united effort of our
countries will not be limited to the constitution of the Fund alone,
and that another very important plan of economic collaboration,
that of the Bank for Reconstruction and Development, is under
discussion, the Committee considers it necessary that a general
preamble to the final document of the Conference be prepared in
which all basic economic objectives of the work of the Confer
ence regarding both the Fund and the Bank are clearly stated.
The Indian Delegation, which presented Alternative C, and
other delegations, declared that while they considered the amend
ment of Section 2 of Article I, as proposed above by the Com
mittee, an improvement, they reserved the right to raise the
question later if their point of view did not find adequate expres
sion in the general preamble mentioned above.
S e c t io n 3 (p . l a )

Some doubts had been expressed by members of the Commit
tee with regard to the exact meaning of the words “thus giving
them time” which appear in Alternative A as well as in the Joint
Statement. In order to disperse such doubts, the Committee, at

P R O C E E D I N G S AND D O C U M E N T S

337

the proposal of the Drafting Committee, decided to propose the
substitution of these words by the following: “thus providing
them with opportunity . .
S e c t io n 4. (p . l a )

As I had the opportunity to explain in my first report, the
Committee examined Alternatives B, D, and E, relating to Sec
tion 4 of Article I. These alternatives are to be found on pages lb
and lc of Document SA/1.
7 /9 /4 4

(p. 3) It has been already reported that the Committee thought
that the alternatives mentioned above were closely connected with
Article IV of the Joint Statement, the examination of which has
been assigned to Committee 2 of your Commission. Committee 1
accordingly decided to refer the subject to the Drafting Com
mittee on the understanding that it would not make its report
until the provisions of Article IV have been agreed upon.
The Drafting Committee and the full Committee are now in a
position to take up this subject since they have the text of Alter
native A of Article IV (pages 17a and 17aa of Document SA/1)
which has been discussed in Committee 2 of your Commission.
S e c tio n 5 (p . l a )

Section 5 of Alternative A of Article I has been adopted with
out any change.
S ec t io n 6 (p . l a )

The Committee has examined the report of the Drafting Com
mittee on Alternatives A and B of this section (pages la and lb
of Document SA/1) and has accepted the proposal of the Drafting
Committee to add at the beginning of Section 6 of Alternative A
the following words: “In accordance with the above objectives
ff
The Committee has also accepted the recommendation of the
Drafting Committee to include at the end of Article I the words
“The Fund shall be guided in all its decisions by the purposes set
forth above,” which are at the end of Alternative A of Article I,
page la.
The Committee has also examined a new Alternative H (page
Id of Document SA/1) which is similar to Alternative G (page
lc) which the Committee had already discussed and which it has
already reported to your Commission. During the discussion of
this new alternative, members of the Committee expressed their
views about the advisability of including in the Agreement a
clause referring to the balances accumulated during the war,

338

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

along the same lines as that already reported to your Commis
sion (page 3 of my first report).
Following the same procedure as that adopted with reference
to Alternative G, the Committee agreed to refer Alternative H
to your Commission.
The only section, therefore, of Article I of the plan which is
still in the Drafting Committee is Section 4, mentioned above.
The Committee then proceeded to the examination of the sec
tions of Article II, assigned to it.
Article II, Alternative A, Section 1 (p . a)

Countries Eligible for Membership
Upon the advice of the Drafting Committee, the Committee has
decided to recommend the acceptance of Section 1 of Alternative
A, Article II.
7 /9 /4 4

(p. 4) In view, however, of the fact that some members ex
pressed doubts about the legal accuracy of the wording, the
Committee, following the advice of the Drafting Committee recom
mends that the first paragraph of this section should begin with
the words, “At the outset,” and that the second paragraph should
begin with the word “Subsequently”.
The precise wording of this section, as of all other sections
adopted by the Committee, is given in an appendix attached to
this report.
S e c t io n 2 (p . a ).
Quotas.
This section has not been discussed by the Committee because
the document referred to on page 1 of the first report to the Com
mission was not yet available.
S ec t io n 3 (p . 2 )

Time and Place of Payment.
The Committee has accepted the opinion of the Drafting Com
mittee that the language in this clause was not susceptible of
misinterpretation as some members suggested and that it was,
therefore, satisfactory. The Committee recommends, therefore,
the adoption of this section without amendment.
In this connection, the Committee discussed Alternative B,
(page 2a), which is proposed as an addition to Section 3 of Alter
native A. The proposer of this amendment explained to the
Committee that in some of the countries occupied by the enemy
the currency system has been completely disorganized and that

P R O C E E D I N G S AND D O C U M E N T S

339

special arrangements will have to be made by the Fund in the
case of such countries with regard to the initial payment of their
quotas.
It was, therefore, proposed that the Fund should be free to
provide for such special arrangements if, in its own discretion,
it considers them necessary, and provided that the Fund does not
suffer any loss as a result of such arrangements.
The discussion of this specific proposal led to the discussion
of the general question of how far a number of provisions in the
agreement should apply to liberated countries, and the Commit
tee agreed to recommend to your Commission the appointment of
an ad hoc Committee to consider these problems.
In accordance with the procedure determined by the Steering
Committee, the Chairman of Committee I, who has been em
powered to appoint such ad hoc committees as may be necessary,
has appointed an ad hoc committee to consider the problems of
liberated countries. This committee, so appointed, has already
started the examination of the subject.
7 /9 /4 4

(p. 5)
Alternative A, Article II, Section 4 (p . 3 )

Adjustm ent of Quotas
This section was referred to the Drafting Committee, which
has proposed the substitution of the word “shall” for the word
“may” ; the addition after the words “of five years” of the words
“review and, if it deems it appropriate, propose an adjustment
of” ; and the deletion of the word “adjust”.
The full Committee accepted these proposals. The new word
ing of this section, as proposed, is given at the end of this report.
S ec t io n 5 (p . 4 )

Initial Payments.
The Drafting Committee has recommended and the full Com
mittee has agreed to adopt Section 5 with a slight alteration in
wording designed to prevent any possible misconstruction. Con
sequently, it is proposed that the beginning of Section 5 should
read as follows: “Each member shall pay in gold as a minimum
either (a) twenty-five percent of its quota, or (b) ten percent
of its official holdings of gold and gold convertible exchange, which
ever is the smaller, o n ---------------------.”
After the addition of the words as a minimum, it becomes clear
that any member is entitled to pay a higher percentage of its
quota in gold if it so wishes.

340

MONETARY AND FINANCIAL CONFERENCE

S ec t io n 6 (p . 4 )

Payments when quotas are changed.
The Committee has decided to recommend the adoption of para
graphs (a) and (b) of this section without alteration.
The Committee has discussed Alternatives B and C (page 4a)
which are proposed as additions to Alternative A, Section 6
(page 6). As both alterations refer to liberated countries, the Com
mittee decided to charge the ad hoc committee, mentioned above,
with their examination.
In addition to Articles I and II which have been already dealt
with in this report, Article IX, Sections 1, 2, 3, and 4 have been
assigned to your Committee I.
The Committee had discussed the subjects with which these
sections deal and has referred the greater part of them to the
Drafting Committee.
The present stage of the Committee’s work with regard to this
Article may be reported as follows:
Article IX— O bligations o f Member Countries

Alternative A, Section 1— Purposes and Scope of Additional
Undertakings, (p . 3 8 )
The wording of this section is to be inserted later. Conse
quently, consideration has been deferred.
7 /9 /4 4

(P. 6 )
SECTION 2 —Gold

Purchases Based on Parity Prices (p . 3 8 ) .
In discussing this section, the Committee felt that the words
“from or to the monetary authorities of another member,” might
convey the impression that member countries were free to buy
or sell gold from or to other sources at any price. It was agreed
that this was not the intention of the proposers of Alternative A,
Section 2. The Committee, therefore, decided to refer this section
to the Drafting Committee. After the Drafting Committee had
presented its first report, it became evident that this subject was
closely connected with subjects relating to the operation of the
Fund, which have been assigned to Committee 2 of Commission I.
•The Committee thought, therefore, that it would be advisable to
send this section back to the Drafting Committee with instruc
tions to consult with Committee 2 and report on the matter.
The same decision has been taken for the same reasons with
regard to Alternative A, Section 3—Foreign Exchange Dealings
Based on Par Values, Paragraph (a), page 39. This paragraph
(a) is, therefore, still in the Drafting Committee.

P R O C E E D I N G S AND D O C U M E N T S

341

3, Paragraph (b ), Alternative A (p. 39).
The Committee agreed in principle with this paragraph (b),
but decided to refer it to the Drafting Committee for reconsid
eration. Some information regarding the recommendation on this
paragraph which the Drafting Committee will make, is given at
the end of this report.
S ec t io n 3, Paragraph ( c ) , Alternative C (p. 3 9 ) .
It has been suggested that the last line in this paragraph read
ing : “not be enforceable in the territory of any member”, be sub
stituted by the following: “be an offense in the territory of any
member.” This proposal has been referred to the Drafting Com
mittee.
S e c t io n 4 —Exchange Controls on Current Payments (p . 4 0 ) .
During the discussions of this section, it has been recognized
that a distinction must be made between exchange control and
exchange restrictions. However, as the discussion developed some
uncertainty as to the character of restrictions which member
countries obligate themselves to eliminate under this section, the
Committee decided to request Commission I to clarify the matter
and to postpone further consideration of it until Committee 2
had also discussed the question.
The full text of provisions recommended by Committee I is
attached to this report as an appendix.

S e c t io n

K . V a r v a r esso s

Reporting Delegate
7 /9 /4 4

APPENDIX

I
T e x t o f P r o v is io n s R e c o m m e n d e d b y C o m m i t t e e 1
(J u ly 9, 1944)

Article I. Purposes and Policies of the Fund

The purposes of the International Monetary Fund are:
1. To promote international monetary cooperation through a
permanent institution which provides the machinery for consul
tation on international monetary problems.
2. To facilitate the expansion and balanced growth of inter
national trade, and to contribute thereby to the promotion and
maintenance of high levels of employment and to the develop
ment of the sources of productive power in all member countries
as primary objectives of economic policy. (Subject to revision.)
3. To give confidence to member countries by making the
Fund’s resources available to them under adequate safeguards,

342

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

thus providing them with opportunity to correct maladjustments
in their balance of payments without resorting to measures de
structive of national or international prosperity.
4. Still in the Drafting Committee.
5. To assist in the establishment of a multilateral system of
payments in respect of current transactions between members
and in the elimination of foreign exchange restrictions which
hamper the growth of world trade.
6. In accordance with the above objectives, to shorten the
periods and lessen the degree of disequilibrium in the interna
tional balances of payments of member countries.
The Fund shall be guided in all its decisions by the purposes
set forth above.
Article II. Subscription to the Fund
SECTION 1. Countries Eligible for Membership
At the outset the members of the Fund shall be those of the
countries represented at the United Nations Monetary and Finan
cial Conference whose governments accept membership in the
Fund.
Subsequently membership in the Fund shall be open to other
countries at such times and in accordance with such terms as
may be prescribed by the Fund.
S e c t io n 2. Quotas
Not yet taken up by the Committee.
7/9/44

(P. 2 )
S e c t io n 3.

Time and Place of Payment
Each member shall provide the Fund at the appropriate de
pository with the full amount of its quota on or before the date
fixed for exchange transactions in its currency to begin. Any
member whose quota is increased shall provide the full amount of
the increase within thirty days of the date on which the member
approves the increase in its quota.
S ec t io n 4. Adjustm ent of Quotas
The Fund shall at intervals of five years review and, if it deems
it appropriate, propose an adjustment of the quotas of the mem
bers. It may also, if it thinks fit, consider at any other time the
adjustment of any particular quota at the request of the member
concerned. A four-fifths majority vote shall be required for any
change in quotas and no quota shall be changed without the con
sent of the member concerned.

P R O C E E D I N G S AND D O C U M E N T S

343

Payments When Quotas are Changed
(a) Each member whose quota is increased shall pay twentyfive percent of the increase in gold. Each member shall pay the
balance of any increase in its own currency. If, however, on the
date the member approves an increase, its holdings of gold and
gold-convertible exchange are less than its new quota, the Fund
may reduce the portion of the increase to be paid in gold.
(b) Each member whose quota is reduced shall receive from
the Fund within thirty days of the reduction an amount in its
own currency or gold equal to the reduction. In making this pay
ment, the Fund shall pay to such member only the amount of
gold necessary to prevent reducing the holdings of the Fund of
that currency below seventy-five percent of such new quota of
the member.

S ectio n 6.

7 /9 /4 4

(P. 3)

Article IX. Obligations of Member Countries

Purpose and Scope of Additional Undertakings
Consideration deferred.
S ectio n 2. Gold Purchases Based on Parity Prices
In Drafting Committee.
S ec tio n 3. Foreign Exchange Dealings Based on Par Values
(a) In Drafting Committee.
(b) Each member undertakes, through appropriate measures
authorized under this agreement, not to permit within its juris
diction an appreciation or depreciation of the exchange value
of its own currency in terms of gold beyond the range prescribed
under (a) above. In particular, a member whose monetary au
thorities in fact freely buy and sell gold or gold convertible ex-

S ec tio n 1.

’The phrase “gold and gold convertible exchange” is subject to definition
and to such change in terminology as may be agreed upon.
749013—48—23

344

MONETARY AND FINANCIAL CONFERENCE

change within the prescribed range, to settle international trans
actions, shall be deemed to be fulfilling this undertaking . . .*
(c)
The Drafting Committee will report to the full Committee
at its next meeting that this paragraph contains matters of legal
substance and is, therefore, not within the competence of a draft
ing committee.
Exchange Controls on Current Payments
Referred to Commission I.

S e c t io n 4.

II
D is p o s itio n b y C o m m itte e 1 o f A d d i t i o n a l P r o v is io n s
S u b m itte d f o r I n c l u s i o n i n t h e A r t i c l e s A s s ig n e d t o I t
A rtic le I. Purposes of the Fund

Alternative F
Correlation of international exchange policy and international
investment policy.
Consideration deferred.
7 /9 /4 4

(P- 4)
Alternatives G and H
Liquidation of wartime indebtedness.
Referred to Commission I.
Alternatives I and J
Alternative wording of Section 2 of Article I rejected by Draft
ing Committee in favor of recommended text given above.
Alternative K
Facilitation of multilateral clearing.
Not reached by Committee prior to adjournment on July 8,
1944.
Article II. Subscription to the Fund
Alternative B—Page 2a
Special arrangements for time and place of payment of quotas
by occupied countries.
Referred to ad hoc committee of Commission I.
Alternatives B and C—Page 4a
Initial subscription payable in gold by countries suffering dam
age by enemy occupation.
Referred to ad hoc committee of Commission I.
* This language will be recommended by the D rafting Committee to Com
mittee 1 a t its next meeting, but has not been passed upon by the full Com
mittee.

P R O C E E D I N G S AND D O C U M E N T S

345

Alternative C—Page 2b, and Alternative D—Page 4b
Inclusion of silver in quota subscriptions.
Not reached by the Committee prior to adjournment July 8.
Article IX. Obligation of Member Countries
S e c t io n 8, Alternative A
Cooperation of members in enforcing permissible exchange
restrictions.
Not reached by the Committee at the time of adjournment,
July 8.
7 /9 /4 4

Document 239

CI/3/RP2

Submitted to Commission I

Report of Committee 3 on Organization and
Management of the Fund
Committee 3 held altogether six regular meetings. The work
ing assignment of the Committee was somewhat changed and
this report takes into account these changes. The Committee es
tablished several sub-committees. One ad hoc Committee of Com
mission I discussed on July 8th problems connected with the elec
tion of the Executive Directors.
The following scheme may introduce-this report by presenting
the skeleton of the fundamental organization of the Fund as
ensuing from the provisions of the Draft agreed upon in Com
mittee 3 up to now.
Board o f G overnors:

Jurisdiction: All powers except those assigned by the Consti
tution to other agencies or expressly delegated to the Execu
tive Directors.
Members and Alternates: Appointed by the government of
each member country; serve subject to the pleasure of their
respective governments.
Meetings: At least annually and in addition if provided for
by the Board or convened by the Executive Directors. They
should also be convened whenever requested by members
having one quarter of the aggregate votes or by five member
countries.

346

MONETARY AND FINANCIAL CONFERENCE

Voting: If not otherwise provided for by a majority of the
aggregate votes cast. Specific forms of voting (by telephone,
cable, etc.) may be arranged if provided for by the regula
tions of the Board.
Quorum: Half of the member countries representing not less
than two-thirds of the total voting power.
Chairman o f the Board o f G overnors:

Jurisdiction: Not specifically indicated in the Constitution.
Selection: Selected by the Board of Governors for a period
determined by this Board. Eligible are either members of the
Board of Governors or the Managing Director.
7 /9 /4 4

(P. 2 )
E xecutive Directors:

Jurisdiction: Expressly delegated by the Board of Governors
within the limits contained in the Constitution and functions
directly assigned by the Constitution. Responsible for the con
duct of the general operations of the Fund.
Selection of Members: (x) shall be appointed by the (x)
members having the largest quotas, (x) shall be elected bi
ennially in accordance .with separate provisions. Executive
Directors need not be Governors.
Alternates: May participate in meetings, but shall not vote
if regular member present.
Meetings: Executive Directors are in continuous session at
the principal office.
Voting: If not otherwise provided for, majority of the aggre
gate votes cast. Each Executive Director casts the number of
votes which actually counted towards his appointment or
election.
Quorum: Majority of the Directors representing not less than
one-half of the voting power of all Directors.
Managing Director
D ir e c to r s):

(A utom atically Chairman of the Executive

Jurisdiction: Chief of the operating staff. Conducts business
under the direction of the Executive Directors. Responsible
for internal organization. Has no vote except a deciding vote
in case of an equal division.
Selection: Selected by the Executive Directors. Shall not be
Governor or Executive Director. Serves according to contract;
however, shall cease to hold office when the Executive Direc
tors so decide.

P R O C E E D I N G S AND D O C U M E N T S

347

Special Com m ittees:

May be established by the Board of Governors or by the
Executive Directors. Members need not be limited to Gover
nors or Executive Directors.
Staff:

Appointed and dismissed by Managing Director. Must not be
influenced by any member in the discharge of duties. In ap
pointing staff due regard has to be paid to selecting personnel
on as wide a geographical basis as is possible.
7 /9 /4 4

(p. 3) This report follows the text of the Draft and of other
documents duly distributed.
Board of Governors.—Joint Statement V II, 1 (pages 24 and 24a
of the D raft).
The committee jointly considered Alternatives A and B. By
unanimous consent the text of Alternative A was accepted with the
following modifications:
Section 1 ( a ) : In the introductory sentence the passage “The
administration of the Fund shall be vested.
is to be replaced by
“All powers of the Fund shall be vested...” Furthermore, the last
sentence of this paragraph shall read: The Board shall select a
Chairman from its members. The Managing Director, however,
may be eligible to this office as well.
( b ) : To the 7 items enumerated, indicating the subject matters
which cannot be delegated, an 8th item is to be added, namely:
(8) Decisions concerning the distribution of the net income of the
Fund.
(c) : The second sentence of this paragraph has to be changed
to read: “Meetings of the Board shall be convened by the Execu
tive Directors whenever requested by members having one quarter
of the aggregate votes or by five member countries.”
Executive Directors—Joint Statement VII, 1, 2 and 3.
The final consideration of the Committee was based on a Docu
ment, without number, entitled “Final Alternative Submitted by
the Special Subcommittee Appointed to Consider All Proposals
Relative to the Executive Directors”. This Document is the result
of the work of a Subcommittee appointed to discuss all matters
concerning the Executive Directors, the Managing Director and
the Staff. Committee 3 expressed consent to the text of this Docu
ment with the exception of the following provisions:
2. Formation of the Executive Directors.

348

MONETARY AND FINANCIAL CONFERENCE

There was general agreement that a certain number of member
countries with the largest quotas should appoint Executive Direc
tors and their Alternates. The other Executive Directors are to
be selected by the rest of the member countries, according to a
specific procedure to be discussed. Such a specific procedure is
included in Schedule B of Document 152 (pages 26b and 26c of
the Draft). Two Alternatives were presented to modify the pro
cedure as suggested in Schedule B. One of them (Alternative D)
is contained in Document No. 179 (page 26e of the Draft). The
other (Alternative E) is contained in Document 214 (page 26f of
the D raft). However, the Committee did not take action on para
graph 2 of the “Final Alternative”, because several members
expressed doubts whether a fruitful discussion could take place
before the quota participation of the member countries is known.
It should be noted that the Chairman of Commission I on July 8th
established an Ad Hoc Committee of this Commission to discuss
controversial points pertaining to the election of the Executive
Directors.
7 /9 /4 4

(p. 4) 3. Alternate Directors.
The “Final Alternative” provides that every Executive Director
may appoint an Alternate. An Alternative was presented to this
provision which is contained as Alternative C in Document 178
(page 26d of the Draft). According to this Alternative C the
Alternates for every Executive Director shall be elected. Alterna
tive C formulates expressly (what is implied in the Final Alterna
tive) that an Executive Director and his Alternate need not belong
to the same country. Because no agreement could be reached on
the point whether Alternates of elected Executive Directors
should be elected as well, or whether they should be appointed by
the respective Executive Director, the Committee submits this item
to Commission I for decision.
8. Managing Director.
The Committee consented unanimously to the provisions included
in the “Final Alternative”. Thus Section 4 of Article VII (pages
27 and 27a of the Draft) need not be considered.
Election of the Executive Directors.
The Committee did not take action on Schedule B of the combined
Alternatives contained in Document 152 on the balloting for the
elective Executive Directors (pages 26b and 26c of the Draft)
because this election procedure is substantially connected with the

PROCEEDINGS AND DOCUMENTS

349

other problems related to the Executive Directors on which action
was deferred.
Voting—Joint Statement VII, 2, 3 (pages 26 and 26a of the Draft)
Committee 3 considered voting only with reference to the Board
of Governors, because voting by the Executive Directors is regu
lated in the pertinent section on Executive Directors. The discus
sion was based on Alternatives A and B, contained in the Draft.
The first paragraph of Alternative A was accepted in principle.
Thus unless otherwise provided for each Governor should have a
uniform and rigid number of votes in addition to his votes directly
related to his quota participation. The Committee deferred action
on the number of additional uniform votes.
The second paragraph of Alternative A contains specific provi
sions on votes required under Article III. It should be noted that
the member, who presented Alternative A, interpreted this pro
posal by restricting the respective decisions under Article III, to
two items: (a) to the decision of the Fund of suspending a member
from making further use of the Fund’s resources on the ground
that it is using them in a manner contrary to the purposes and
policies of the Fund (III, 2d of the Joint Statement) and (b) to
the decisions of the Fund in exercising its discretion in determining
whether and on what terms it shall waive the conditions mentioned
under III, 2a to d of the Joint Statement.
The Committee expressed its desire that paragraph 2 should be
more clearly drafted if adopted for the Final Draft.
7 /9 /4 4

(p. 5) However, as to the merit of this paragraph three
opinions were advanced: one approving it, as contained in Alter
native A; the other modifying it by replacing the unit of two
hundred thousand United States dollars by two million United
States dollars and the third outrightly opposing this deviation from
the normal voting procedure. These three Alternatives are hereby
submitted to Commission I for decision.
Paragraph 3, containing the provision that unless otherwise
provided for, all matters in the Board of Governors shall be decided
by a majority of the aggregate votes cast, was accepted.
The Committee included in this Section from Alternative B
the modified provision according to which a quorum of the Board
of Governors should consist of not less than two-thirds of the
voting power provided it being exercised by at least one half of
all Governors.

350

MONETARY AND FINANCIAL CONFERENCE

Publication of Reports—Joint Statement VII, 4 (pages 28 of the
Draft)
The Committee considered and accepted Alternative A as con
tained in Section 5 of the Draft. It should be noted that one of the
members called attention to the fact that if in the first years follow
ing the war specified statements concerning the Fund’s holdings
of currencies of members would be published this might violate
the interest of member countries. No objection was made that such
specified data on currency holdings be confidentially communicated
to member countries.
Depositories—Joint Statement—No Provision (pages 29, 29a and
29b of the Draft)
The Committee discussed the three Alternatives (A, B and D ).
Alternative C was dropped by unanimous consent.
Paragraph (a) of Alternative A was accepted. However, no
agreement was reached on paragraph (b) about the selection of
depositories where the Fund may hold assets other than local
currency. It was agreed upon to refer the decision on this point to
Commission I. One of the members found Alternative A acceptable
with the modification that not four members having the largest
quotas may be designated as depositories but five or more members.
Thus four Alternatives go to Commission I, for decision. It should
be noted that the first two sentences of Alternative B in reality
compose an Amendment and not an Alternative, thus that they may
be attached to either of the Alternatives.
Form of Holdings of Currency—Joint Statement—No Provision
(p. 29 of the Draft)
Section 7 as contained in Alternative A has been accepted.
Distribution of N et Income—Joint Statement—No Provision
(pages 32 and 32a of the Draft)
Alternative A as contained in the Draft (Additional Section—
7 /9 /4 4

10—to Article VII) has been accepted with the (p. 6) modifi
cation that decisions pertaining to the distribution of the net
income have to be taken by the Board of Governors and that this
power cannot be delegated to the Executive Directors. (On page
32a the first line “Alternative B continued” should read “Alterna
tive A continued”) .
Miscellaneous Poivers—Joint Statement—No Provision (page 33
of the D raft).
Items 4 and 5 of this Article which was intended to be included

P R O C E E D I N G S AND D O C U M E N T S

351

as Section 11 in Article VII of the Draft, were accepted as con
tained in the Draft. The Committee assumed that the rules and
regulations mentioned in item 5 may relate both to member
countries and to agencies of the Fund.
Items 1 to 3 were assigned to Committee 4 of Commission I for
consideration.
Settlement of Accounts with Governments Ceasing to be Members
—Joint Statement—VIII, 2 and 3 (pages 36, 36a, 36b and
36c of the D raft).
Alternatives A and B were presented as Section 3 of Article
VIII of the Draft to the Committee. They are contained in Docu
ments 124 and 180. The Committee referred this matter to a Sub
committee. The Subcommittee did not reach an agreement
concerning Alternatives A and B and its report will be submitted
to the Committee as a separate document. It was not available at
the time of the writing of this paper.
Liquidation of the Fund—Joint Statement—No Provision (pages
37, 37a, 37b and 37c of the Draft)
Alternatives A and C as contained in Documents 211 and 220
were presented to the Committee. The same Subcommittee, which
is in charge of the Article on Settlement of Accounts With Govern
ments Ceasing to be Members will report on this matter to the
Committee. This report is not yet available.
Furnishing Information—Joint Statement—No Provision (pages
14c and 14d of the Draft)
Section 11 of Article III was considered by the Committee
according to Alternative C (Document 182) and Alternative D
(Document 203, page 14e of the Draft). The report of the Special
Committee on Furnishing Information of the Pre-Conference
Agenda Committee, June 28, 1944 (Document 129) was duly
distributed. No agreement was reached on this point because the
member country introducing Alternative D sharply opposed the
extent of the minimum information as enumerated under items 1
to 12 in Alternative C. Committee 3 is hereby referring this item
for decision to Commission I.
The prevailing part of the assignment was disposed of by Com
mittee 3. The Ad Hoc Committee of Commission I on the Election
of the Executive Committee will proceed in its discussion.
E r v in H e x n e r ,
7 / 9 /44

Reporting Delegate

352

MONETARY AND FINANCIAL CONFERENCE
Document 240 (202)
C l/ 3 (C l/2 )

C o m m is s io n I : S t a t u s

C o m m it t e e A s s ig n m e n t s

A s o f 6:00 p.m., J u ly 9, 1944

Com m ittee 1— Purposes , Policies9 and Quotas of the Fund

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
Without
Decision

No Action
or
Decision
Deferred

Article I —Purposes and

Policies of the Fund
Sec. 1
Sec. 2

Sec. 3

Joint
Statement
Drafting
Committee's
revision
Drafting
Committee's
revision

Sec. 4

Sec. 5

Alt. A

Sec. 6

Drafting
Committee’s
revision

Additional
paragraph
(Alt. A, p. la)

Alt. A

Alt. F,

Alts. G, H
Alt. K

XX
XX

Article I I —Subscription

to the Fund
S ec. 1— C o u n tr ie s
Eligible for Mem
bership
Sec. 2—Quotas

Drafting
Committee’s
revision

XX*

PROCEEDINGS AND DOCUMENTS

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
W ithout
Decision

353
No Action
or
Decision
Deferred

Sec. 3—Time and Place Alt. \
of Payment
A l t . B ( p . 2 a) an d
Alt. B & C (p. 4a)

A lt. C (p. 2b) an d
D (p. 4b)

7 /9 /4 4

(P -2 )
Sec. 4—Adjustment of
Quotas

Drafting
Committee's
R evision as
amended

Sec. 5—In itial P ay
ments

Drafting
Committee’s :
Revision

Sec. 6—Payments when
Quotas are Changed

Alt. A

Article I X —Obligations
of Member Countries

Sec. 1—Purpose and
scope of additional
undertaking

XX*

Sec. 2—Gold purchases
based on parity prices

Sec. 3—Foreign Ex
change dealings based
on par values

Sec. 4—Exchange con
trols on Current Pay
ments
Sec. 8
7 /9 /4 4

XX
XX

354

MONETARY AND FINANCIAL CONFERENCE

(p. 3)
Com m ittee 2 — Operations of the Fund

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
W ithout
Decision

No Action
or
Decision
Deferred

Article I I I — Transactions

with the Fund
Sec. 1— Agencies Deal
ing with the Fund

A l t . A as
amended

Sec. 2—C o n d itio n s
u p o n w h ic h a n y
Member May Pur
chase Currencies of
Other Members
par (1)

Alt. A

par. (2)

Alt. A

par. (3)

par. (4)

Alt. A

Final Sentence

Alt. A

Sec. 2(a)—Conditions
Governing Purchases
for Capital Transfers

Alt. A

Sec. 3 — D e c la rin g
Members Ineligible
to Use Resources of
the Fund

Alt. A

Alt. E (p.6d)
Sec. 4—Limitations on
Operations of Fund
Sec. 5 —Operations for
Purpose of Prevent
ing Currencies Be
coming Scarce
par. (1)

par. (2)

Alt. A

Drafting
Committee’s
revision
Al t . A as
amended

P R O C E E D I N G S AND D O C U M E N T S

355

(p. 4 )
1
Article and Section

Referred to
Commission I
Without
Decision

Referred to
Drafting or
Other SubCommittee

Language
Accepted

No Action
or
Decision
Deferred

Sec. 6—Multilateral In
ternational Clearing
Sec. 7— Acquisition by
Members of Curren
cies of Other Mem
bers for Gold

Alt. A

Sec. 8— Other Acquisi
tions of Gold by the
Fund
Sec. 9— Transferability
and Guarantee of
Assets of the Fund
Par. (a)
Par. (b)
Par. (c)

XX *

Alt. A
XX

Alt. A

Sec. 10— Charges and
Commissions

XX*

Sec. 12— Consideration
of Representations of
the Fund

Article IV — Par Values of

Member Currencies
Sec. 1— Par Values of
the Currencies of
Members

Alt. A

Sec. 2

Sec. 3

Sec. 4

S e c . 5 — U n if o r m
Changes in Par Value
Sec. 6— Protection of
the Assets of the
Fund
Sec. 7—Separate cur
rencies within a
Member’s Jurisdic
tion
7 /9 /4 4

Revised
Alt. A

!
3
is

!
;
Alt. A

1
1

[
;

I
!

356

MONETARY AND F I N AN C I A L CONFERENCE

(P. 5)

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
W ithout
Decision

No Action
or
Decision
Deferred

Article V —Capital Tran

sactions
Sec. 1—Use of Re
sources of the Fund
for Transfers of Cap
ital

A l t . A , as
amended

Sec. 2—Limitations on
Controls of Capital
Movements

A 11. A , as
amended

Article V I —Apportion

ment of Scarce Currencies
Sec. 1—General Scar
city

S u b s titu te
Alt. A

Sec. 2—Scarcity of the
Fund’s holding

S u b s titu te
Alt. A

Sec. 3—Administration
of Restrictions on ■S u b s t i t u t e
Scarce Currencies
Alt. A
Sec. 4—Effect of Other
Internationa] Agree
ments on Restric
tions on Scarce Cur
rencies

'
S u b s titu te
Alt. A

Article X —Transitional

Arrangements
Sec. 1—Exchange re
strictions and cur
rency arrangements
and p ra c tic e sretained

X*
X

Sec. 2—Withdrawal of
exchange restrictions

X*
X

Sec. 3—Policy of the
F u n d d u rin g th e
transition period

X*
X

Sec. 4

XX*

357

P R O C E E D I N G S AND D O C U M E N T S

Article and Section

Referred to
Drafting or
Other SubCommittee

Language
Accepted

Referred to
Commission I
Without
Decision

No Action
or
Decision
Deferred

Article XT IT—Final Pro

visions
Sec. 5—Fixing initial
par values

XX*

(P. 6)
Com m ittee 3 — Organisation and Management of the Fund

Article and Section

Referred to
Drafting or
Other SubCommittee

Language
Accepted

Referred to
Commission I
Without
Decision

A rticle I I I —Transactions

with the Fund
Sec. 11—Furnishing In
formation

Alts. C and
D

A rticle V I I —M anage

ment of the Fund
Sec. 1—Board of Gov
ernors

Combination
of Alt. A &
A lt. B, as
amended

Sec. 2—Executive Di
rectors

Drafting
Committee’s
Revision (in
part)

Sec. 3—Voting

Drafting
Committee's
Revision

Sec. 4—The General
Manager

In part

Drafting
Committee’s
Revision

Sec. 5—Publication of
Reports

Alt. A

Sec. 6—Depositories
par. (a)

Alt. A
j

No Action
or
Decision
Deferred

358

MONETARY AND FINANCIAL CONFERENCE

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
W ithout
Decision

No Action
or
Decision
Deferred

Alts.A,B,&
D referred
to Commis
sion I

par. (b)

Sec. 7— F o rm an d
Holdings of Currency

Alt. A

Sec. 9—Location of
Office

Sec. 10—Distribution
of Net Income of the
Fund

Alt. A,
amended

Sec. 11—Miscellaneous
Powers
item (4)

Alt. B

item (5)

Alt. B

(P . 7)
Article V I I I —Withdraw

al from the Fund
Sec. 2—Suspension of
Membership or Com
pulsory Withdrawal

XX*

Sec. 3—Settlement of
accounts with coun
tries ceasing to be
members

Sec. 4—Liquidation of
Fund

Com m ittee 4— Form and Status of the Fund

Article and Section

Language
Accepted

Referred to
Drafting or
Other SubCommittee

Referred to
Commission I
Without
Decision

A rticle V I I —M anage

ment of the Fund

No Action
or
Decision
Deferred

P R O C E E D I N G S AND D O C U M E N T S

Article and Section

Referred to
Drafting or
Other Sub
com m ittee

Language
Accepted

Sec. 8 — Relationship
to other international
organizations
Sec. 11—Miscellaneous
powers. Introduction
and items (1), (2),
and (3).

Referred to
Commission I
Without
Decision

359
No Action
or
Decision
Deferred

Alt. A

Alt. B

!
i

Article V I I I —Withdraw

al from the Fund
Sec. 1—Right of Mem
bers to Withdraw

Alt. A

Article I X —Obligations

of Member Countries
Sec. 5—Immunity of
Assets of the Fund

Alt. A

Sec*. (>
—Immunity from
Suit

Inclu d ed in
new Sec. 5

Sec. 7—Restrictions on
taxation of Fund, its .
employees and obli
gations
Alt. B
;

(p . 8 )
Article X I

ii
i
|

Amendments
Alt. C
as amended

Article X I I —Interpreta
tion of the Agreement

Sec. 1—Interpretation

Alt. C

Sec. 2—Definitions
Sec. 3—Effect on Other
International Com
mitments

XX*

1
Alt. A

Article X I I I —Final Pro ;
visions;

749013—48—24

360

MONETARY AND FINANCIAL CONFERENCE

Article and Section

Language
Accepted

Referred to
Drafting or
Other Sub
com m ittee

Referred to
Commission I
"Without
Decision

No Action
or
Decision
Deferred

Sec. 1—Entry Into Ef
fect

XX*

Sec. 2—Effective Date
of Agreement

XX*

Sec. 3—Calling the Ini
tial Meeting of the
Fund

XX*

Sec. 4—Agenda of Ini
tial Meeting

XX*

A rt ide X I V —Execution
of the Agreement

XX*

*—Indicates that material not yet available to Committees.

Document 241
(p .

37bb)

S A /l/4 5

A lte r n a tiv e

A rticle V III, S ectio n 4 . Liquidation of the Fund

Substitute for (d) of Section 4 of Alternative A:
“The assets of the Fund available after the discharge of the
above liabilities shall be distributed in such manner as the Board
of Governors shall decide to be most equitable in the circum
stances then existing.”
7 /9 /4 4

J.S. Art. V III
A d d itio n a l Section

P R O C E E D I N G S AND D O C U M E N T S

361

Document 242

(p. 36d)

SA/1/46

A l t e r n a t iv e

C to A r t ic l e VIII, S e c t io n 3

S ection 3. Settlement of Accounts with Governments Ceasing

to be Members.
(a) When a government ceases to be a member in any of the
cases referred to in sections---------above, settlement of all accounts
between the Fund and such government shall be made with reason
able dispatch by agreement between the Fund and the government.
Failing such agreement, settlement shall be made in accordance
with the provisions of (c ), (d) and (e ). The Fund shall not engage
in any transactions in the currency of such country except in
accordance with this Section.
(b) The Fund shall be obligated to pay to such government an
amount equal to its quota, plus any other amounts due to it from
the Fund, less any amounts due to the Fund from such govern
ment, including charges accruing after the government ceases to
be a member; but no payment shall be made prior to six months
from the date when such government ceases to be a member. Pay
ments shall be made in the currency of that country.
(c) If the Fund’s holdings of the currency of the withdrawing
member are not sufficient to pay the net amount due from the
Fund, the balance shall be paid in a manner to be agreed between
the Fund and the withdrawing member. If the Fund and the with
drawing member have not reached agreement within six months
from the date of withdrawal, the currency of that member held
by the Fund shall immediately be paid to it. The balance shall be
payable in not less than 12 equal quarterly installments in any
7 /9 /4 4

J.S. Art. V III
Secs. 2 and 3

(p. 36e)
currency available in the Fund and not declared scarce and desired
by the withdrawing government, or at the option of the Fund, by
the delivery of gold.
(The preceding paragraph replaces (c) and (d) of Alternative
A.)
(e)
If the Fund’s holdings of the currency of such country
exceed the amount due to such government, and the Fund and the
government do not reach agreement on the method of settling
their accounts within six months from the date of withdrawal,

362

MONETARY AND FINANCIAL CONFERENCE

settlement shall be made as provided in this and the following
paragraphs.
(i) The withdrawing member shall be free to redeem such
excess currencies in gold or in the currencies of members which at
the time of actual redemption are convertible under III (6) (J.S.
I ll 5.) within three years from the date of withdrawal or such
longer period which may be fixed by the Fund.
(ii) The Fund may place any portion of the remaining balance
of the withdrawing member’s currency at the disposal of any
member desiring it at a rate in any quarterly period not exceeding
one-twelfth of the Fund’s excess holdings at the date of with
drawal of the currency to be redeemed plus current accruals of
such currency during such quarterly period.
(iii) If at the end of five years any balance of the withdrawing
member’s currency still remains in the hands of the Fund, the
Fund may continue the arrangements under (i) and (ii) above
for a further period, or the Fund having regard to the means of
payment available to the withdrawing member may prescribe to
it the manner in which it shall liquidate the balance.
7 /9 /4 4

J.S. Ar*. V III
Secs. 2 and 3

(p. 36f)
(iv) The withdrawing government unconditionally guarantees
at all times the unrestricted use of such currency for the purchase
of goods or for the payment of other sums due to it or to its
nationals. Further, the withdrawing government shall indemnify
the Fund against any loss resulting from exchange depreciation
until such currency has been used or redeemed.
(f) Any member desiring to obtain the currency of a former
member shall acquire the currency by purchase from the Fund, to
the extent that such member has access to the resources of the
Fund and such currency is available under the preceding
paragraph.
(g) In the event of the Fund going into liquidation under
................ ..
within six months of the date upon which any
government ceased to be a member, all rights and obligations of
such government shall be determined in accordance ^ith the pro
visions governing liquidation instead of the provisions of this
section.
7/9/44

J.S. Art. V III
Secs. 2 and 3

P R O C E E D I N G S AND D O C U M E N T S

363

Document 243
C I/ 3 / S 3

Report of Subcommittee of Committee 3 of Commission I
on Liquidation and Withdrawal
The sub-committee wishes to report progress in its consideration
of the matter of liquidation. In its meeting it decided to recommend
to the Committee the approval of Article VIII, Section 4(a) of
Alternative A, Document 211. The sub-committee wishes to
recommend that paragraph (b) be amended to read: “If a decision
to liquidate the Fund is carried, (i) the Fund shall forthwith
cease to engage in any activities except those incident to an orderly
liquidation of its assets and the settlement of its liabilities, and (ii)
all the obligations of members under this agreement other than
those specified in the following paragraphs of this Section and
........................ shall cease to have effect.” The sub-committee was
of the opinion that this clause might be inserted either at this
place or in some other Section of the document relating to the
obligations of the members, ait the discretion of the final drafting
committee. With this amendment the substance of paragraph (b)
was recommended for the approval of the committee. Paragraph
(c) was recommended for adoption as given in Alternative A.
The sub-committee regrets that it was unable to reach agree
ment on paragraph (d) of Article VIII, Section 4. Two drafts of
this paragraph were under consideration while a third was added
in the course of discussion. The sub-committee wishes to refer this
back to the whole Committee for action.
It may be noted that some members of the sub-committee favored
leaving the matter of liquidation to the discretion of the Board
of Governors. The predominant sentiment, however, favored some
more definite provision though it could not agree upon the exact
provision to be suggested. A draft of a discretionary method of
treatment is given in Alternative D. The sub-committee recom
mended approval of paragraph (e), but one member favored a
five-year term for redemption of excess currency instead of the
three-year term now provided.
In dealing with the question of withdrawal the Committee had
before it two Alternatives. It was the opinion of some of the
members that the Alternatives must be discussed as a whole since
the principles involved are similar to the principles of liquidation
and accordingly the sub-committee was unable to embody its delib
erations in an approved draft for the consideration of Committee

364

MONETARY AND FINANCIAL CONFERENCE

3. Certain amendments to Alternative A were offered to perfect
this draft without prejudice to consideration of Alternative B. It
was suggested that Article VIII, Section 3(a) be amended with
7 /9 /4 4

(p. 2)
the insertion after the first sentence of the following: “Failing
such agreement settlement shall be made in accordance with the
provisions of (c), (d) and (e).” A new draft, Alternative C, for
the entire Section was submitted and this draft will be presented
to the whole Committee.
Respectfully submitted,
C a m il l e G u t t , Chairman
H . J . B it t e r m a n , Secretary
7 /9 /4 4

Document 244

(p. 45)

JOURNAL
UNITED

NATIONS

MONETARY

No. 70

AND

FINANCIAL

CONFERENCE

Bretton W o o d s, N ew H am pshire

ORDER

THE

July 10, 1944

DAY

Meetings for Monday, July 10
9:30 a.m.
2:30 p.m.
5 p.m.

Commission I ...................................................................Auditorium
(Reserved for Commission I) .................................... Auditorium
Commission III ...............................................................Auditorium

(p. 46)
R e s u m e o f M e e t i n g o f A g e n d a C o m m i t t e e o f C o m m is s io n

Bank for Reconstruction and Development
(Ju ly 9, 5 p.m.)

At its second meeting, at 5 p.m. on July 9, the Agenda Committee
decided that the Secretariat should prepare a document similar
to that used in the Fund, incorporating all the amendments
received up to 10 a.m. on Monday, July 10. Consideration of this
document will commence at a meeting of Commission II to be held
in the afternoon of Tuesday, July 11.
Ad H o c C o m m it t e e s o f C o m m is s io n I
Canada should be added to the list of members of the ad hoc
Committee on Relations with Non-Member Countries (Journal
No. 9, July 9, p. 41).
N o t ic e R e g a r d in g

P R O C E E D fNGS AND D O C U M E N T S

365

(p. 47)
L is t o f D o c u m e n t s I s s u e d as o f

July 9, 1944
Symbol

Subject

Journal No. 9 ........................................................................
Minutes of Committee 1, Commission I, July 8, 9:30 a.m.
Minutes of Committee 2, Commission I,
July 8, 11:30 a.m...............................................................
Minutes of Committee 3, Commission I,
July 8, 9:30 a.m.................................................................
Minutes of Committee 4, Commission I,
July 8, 11:30 a.m...............................................................
Order of the Day ................................................................
News Bulletin No. 1 0 ..........................................................
French Translation of Rules and Regulations................
Supply Tabulation F o r m ....................................................
Second Report of Committee 4, Commission I ..............
Second Report of Committee 2, Commission I ..............
Agenda Committee, Report to Commission III, July 8 ..
Additional Page to SA/1 (p. 39a) ....................................
Additional Page to SA/1 (p. 26g) ....................................
Report of the Reporting Delegate*of Committee 1 ot
Commission I on Purposes, Policies, and Quotas of
the Fund ..........................................................................
Report of Committee 3, Commission I, on Organization
and Management of the F u n d ......................................
Commission I—Status of Committee Assignments as of
6 p.m., July 9 ....................................................................
Additional Page to SA/1 (p. 37bb) ..................................
Additional Pages to SA/1 (pp. 36 d, e, f) ......................
Report of Subcommittee of Committee 3, Commission I,
on Liquidation and W ith d ra w a l....................................

Doc. No.

J /9
CI/1/M5

223
224

CI/2/M 6

225

CI/3/M6

226

CI/4/M 5
GD/25
C/RR/4
GD/27
CI/4/RP2
CI/2/RP2
CIII/A
SA/1/43
SA/1/44

227
228
229
230
232
233
234
235
236
237

CI/1/RP2

238

CI/3/RP2

239

CI/3
SA/1/45
SA/1/46

240
241
242

CI/3/S3

243

Document 245
S A /3

Preliminary Draft of Proposals for the Establishment of
a Bank for Reconstruction and Development
There is attached a preliminary draft of provisions which have
been submitted to the Secretariat.
At the top of each page there is set forth as Alternative A the
pertinent provision of the “Proposal for a Bank for Reconstruction
and Development (Doc. SA/2, #169). Immediately below appear
alternative and supplementary texts submitted to the Secretariat
(Room 147). It is expected that further suggestions will be made

366

MONETARY AND FINANCIAL CONFERENCE

and as they are presented to the Secretariat, they will be distrib
uted for inclusion in the attached draft.
The Secretariat has attempted to put the various proposals
together in a manner which would be helpful in the consideration
of the alternative provisions suggested. The order adopted is in
no way indicative of where the provisions might appropriately
appear in a final document.
The Secretariat is aware of the possibility that errors and
omissions have been made in the attached draft, despite the care
employed in its preparation. Accordingly, the Secretariat requests
the indulgence of any delegation whose proposals may have been
partially or wholly omitted or improperly presented. If the atten
tion of the Secretariat is called to any error or omission, such
error or omission will be corrected promptly.
7 /1 0 /4 4

(p .l)
T itle
Alternative A

Agreement to Establish a Bank for Reconstruction and
Development.
Alternative B

It is suggested that the title be: “The International Corporation
for Reconstruction and Development”, or some other title omitting
the word “Bank”.
7/10/44

Title
Alts. A & B

(p. la)
T itle
Alternative C

It is suggested that the title be either “The International
Guarantee and Investment Association” or “The International
Investment and Guarantee Association”.
7 /1 0 /4 4

Title
Alt. C

(p. 2)
A r tic le I

Purposes of the Bank
Alternative A

The bank shall be guided in all its decisions by the following
purposes.
1. To assist in the reconstruction and development of member

P R O C E E D I N G S AND D O C U M E N T S

367

countries by facilitating provision of long-term investment capi
tal for productive purposes through private financial agencies,
by means of guaranteeing and participating in the loans made by
private investors;
2. To supplement private financial agencies by providing capital
for productive purposes out of its own resources, on conditions
that amply safeguard its funds, when private capital is not avail
able on reasonable terms;
3. To promote the long-range balanced growth of international
trade by encouraging international investment for the develop
ment of the productive resources of member countries;
• 4. To coordinate loans made or guaranteed by it with interna
tional loans through other channels so that the more useful and
urgent projects will be dealt with first;
5. To conduct its operations with due regard to the effect of
international investment on business conditions in member
countries and, in the immediate post-war years, to assist in bring
ing about a smooth transition from a wartime to a peacetime
economy.
A lternative B

(a)
Respecting subdivision 2, it is proposed that the words
“on conditions which amply safeguard its funds” should be
replaced by “on suitable conditions”.
7 /1 0 /4 4

Art. 1
Alts. A & B

(p. 2a)

(b) Substitute the following for subdivision 3:
3. To assist in raising the productivity, the
standard of life, and conditions of labour in mem
ber countries, thereby helping to make avail
able through international collaboration long-term
capital for the sound development of production
and resources.
4. To permit the long-range balanced growth
of international trade among member countries.
(and renumber other subdivisions accordingly)

Alternative C
1. To assist in the reconstruction and the restoration of the
economy destroyed by the hostilities, and in the development of
member countries by facilitating provision of long-term investment
capital for productive purposes through private financial agencies,
by means of guaranteeing and participating in the loans made by
private investors:
2. To supplement private financial agencies by providing capital

368

MONETARY AND FINANCIAL CONFERENCE

for reconstruction and restoration of the economy destroyed by
the hostilities and for development for productive purposes out
of its own resources, on conditions that amply safeguard its fund,
when private capital is not available on reasonable terms;
7 /1 0 /4 4

Art. I
Alts. B & C

(P .2 b )
A r tic l e I
Alternative D

An International Bank for the Reconstruction and Development
of Member Countries is hereby established for the following
purposes:
(1) To assist in the reconstruction or the development of the
productive resources of member countries, more especially
those whose economy has been disrupted by the war or has
been inadequately developed, by providing or facilitating
the provision of long-term investment capital;
(2) To help promote the balanced growth of international trade
by encouraging international investment; and
(3) In the immediate post-war years, to assist in bringing about
a smooth transition from a wartime to a peacetime economy.
Alternative E

The following Section has been proposed as an alternative to
Section 2:
(2) To supplement private financial agencies by providing
capital for promising productive purposes out of its own
resources when private capital is not available on reason
able terms.
7/10/44

Art. I
Alts. D & E

(p.2c)
A r tic l e I
Alternative F

Paragraph 1 should read;
1. To assist in the reconstruction and development of member
countries by facilitating provision of capital for sound and con
structive international investment through private financial agen
cies by means of guaranteeing and participating in the loans made
by private investors.
Paragraph 5 should read:
5. To facilitate a rapid and a smooth transition from a wartime
to peacetime economy by increasing the flow of international

P R O C E E D I N G S AND D O C U M E N T S

369

investment and thus to help to bring economy back to work and to
avoid serious disruption of economic life of member countries.
7 /1 0 /4 4

Art. I

Alt. F

(P. 3)

A r tic l e II

Membership in and Capital of the Bank
Alternative A

1. Countries Eligible for Membership
The members of the Bank shall be those members of the Inter
national Monetary Fund which accept membership in the Bank.
S ec tio n

7 /1 0 /4 4

Art. II

Sec. 1
Alternative A

(P. 4)

A r tic l e II
Alternative A

Authorized Capital.
The authorized capital stock of the Bank shall be $10,000,000,000, in terms of United States dollars of the weight and fineness in
effect o n _______ The capital stock shall be divided into 100,000
shares having a par value of $100,000 each, which shall be avail
able for subscription only by members.
The Capital stock may be increased when the Bank deems it
advisable by four-fifths of the aggregate votes.
S ec t io n 2.

Alternative B

It is proposed that the second paragraph of this Section should
read as follows:
The Capital Stock may be increased when the Bank deems it
advisable. But no member shall be obligated to increase its sub
scription pro rata unless it desires to do so.
7/1 0 /4 4

Art. II

Sec. 2

Alts. A & B

(p. 5)
A r tic l e II
Alternative A

Subscription for Stock.
Each member shall subscribe for shares of stock. The minimum
numbers of shares to be subscribed by countries represented at
the United Nations Monetary and Financial Conference shall be
S ec t io n 3.

370

MONETARY AND FINANCIAL CONFERENCE

those set forth in Schedule A. (Schedule A to be added later). The
minimum number of shares for other countries which become
members of the Bank shall be determined by the Bank.
Any member may subscribe for additional shares of stock in
accordance with rules to be established by the Bank, except that
a part of the authorized capital shall be reserved by the Bank for
minimum subscriptions of countries not represented at the United
Nations Monetary and Financial Conference.
7 /1 0 /4 4

Art. II
Sec. 3
Alt. A

(p. 6)
A r t ic l e

Alternative A

4. Availability of Subscribed Capital.
The subscription of each member country shall be divided into
two parts as follows:
(a) Twenty percent shall be callable by the Bank as needed for
any of its operations.
(b) The remaining 80 percent shall be callable by the Bank only
when required to implement obligations of the Bank created
under IV(1) (b) and (c) below.
Calls on unpaid subscriptions shall be uniform on all shares.
SECTION

Art. II
Sec. 4
Alt. A

7 /1 0 /4 4

(p. 6a)
A r t ic l e

A lternative B

Substitute for Alternative A, subdivision (a) the following:
(a) Twenty percent shall be callable by the Bank as follows:
(i) two percent in gold or gold-convertible currency
within 60 days after the date set for the operations
of the Bank to begin;
(ii) eighteen percent in maximum amounts of five per
cent in any three months period as needed for any
of its operations;
provided, however, that not less than ten percent in the
aggregate shall be called within one year from the date
set for the operations of the Bank to begin.
And add to the last sentence of the section:
If one or more shareholders fail to meet a call in whole or in
part, an additional call or additional calls shall be made until

P R O C E E D I N G S AND D O C U M E N T S

371

the entire amount of the call shall have been paid, subject
always to the provision of section 7, below.
7 /1 0 /4 4
(p .

Art. II
Sec. 4
Alt. B

7)
A rtic le

Alternative A

Payment of Subscription.
(a) Payments under Section 4(a) shall be partly in gold and
partly in local currency except that payments required to
implement obligations of the Bank created under Article
IV, Section 1(b) or 1(c), shall be made in the manner
provided in the following subdivision. The proportions to
be paid in gold and local currency under this subdivision
shall be graduated according to an agreed upon schedule
which shall take into account the adequacy of the gold and
free foreign exchange holdings of each member country.
The portion to be paid in gold shall not in any event exceed
20 percent of the total payment.

S e c t io n 5.

(Schedule to be inserted)

(b) Payments under Section 4(b) shall at the option of the
member be made either in gold or in the currency required
to implement the obligations with respect to which a call
is made.
(c) The initial payment on each share issued shall be such as
to equal the total amount per share already called on out
standing shares, adjusted for the amount by which the issue
price of the share differs from par value.
7 /1 0 /4 4

Art. II
Sec. 5
Alt. A

(p. 7a)

B
It is suggested that the following should replace the last sentence
of Section 5(a) :
“No Member will be expected to contribute in gold more than
20 percent of its callable subscription under 4(a), and every
member will be required to contribute not less than 10 per
cent unless the member satisfies the Bank that a lower per
centage would be appropriate to its circumstances.”
Alternative

Alternative C

Add the following to Section 5:
To any country represented at the United Nations Mone

372

MONETARY AND FINANCIAL CONFERENCE

tary and Financial Conference whose home areas have suffered
from enemy occupation and hostilities during the present war
will be granted the right to postpone till the end of its restora
tion period the payment of its gold contribution in the amount
from twenty-five to fifty percent, dependent on the extent of
the damage caused by the enemy occupation and hostilities.
7 /1 0 /4 4

Art. II
Sec. 5
Alts. B & C

(P . 8 )
A r t ic l e

Alternative A

Issue Price of Shares.
Shares of stock included in the initial subscription of a member
represented at the United Nations Monetary and Financial Con
ference shall be issued at par if the subscription is received not
later than one year after the date set for operations of the Bank
to begin. Other shares shall be issued at par or such other price
as may be fixed by three-fourths vote of the Bank.
S e c t io n 6.

7 /1 0 /4 4

Art. II
Sec. 6
Alt. A

(p. 8a)
A r t ic l e

Alternative B

It is proposed that the last sentence of Alternative A should be
amended to read as follows:
Other shares shall be issued at a price equal to the total of the
net assets as shown on the last balance sheet, divided by the
number of shares in existence at the time of the issue of that
balance sheet, or such other price as may be fixed by a threefourths vote.
7 /1 0 /4 4

Art. II
Sec. 6
Alt. B

(P . 9 )
A r t ic l e

Alternative A

Limitation on Liability.
Liability on shares shall be limited to the unpaid portion of the
issue price of the shares.
S ec t io n 7.

7 /1 0 /4 4

Art. II

Sec. 7
Alt. A

P R O C E E D I N G S AND D O C U M E N T S

373

(P .10)
A r t ic l e I I
A lte rn a tiv e A

Disposal of Shares Limited.
Shares shall not be pledged or encumbered in any manner what
ever and they shall be transferable only to the Bank.
S e c t io n 8.

7 /1 0 /4 4

Art. II

Sec. 8
Alt. A

(P. 11)
A rtic le

Alternative A

Return of Subscriptions.
When the liquid resources of the Bank are substantially in
excess of prospective needs, the Bank may return, subject to call,
uniform amounts on all shares of stock outstanding.

S e c t io n 9.

7/1 0 /4 4

Art. II

Sec. 9
Alt. A

(p.11a)
A rtic le

Alternative B

It is suggested that the following be added to Alternative A :
, provided always that the amounts returned do not encroach
upon the amounts of currency and/or gold to be held avail
able pursuant to Article III, Section 3, Alternative B.
Art. II

7 /1 0 / 4 4

Sec. 9
Alt. B

(P. 12)

III
General Provisions Relating to Loans
A rtic le

Alternative A

1. Use of Resources Restricted.
The resources and the facilities of the Bank shall be used exclu
sively for the benefit of members.

S e c t io n

Alternative B

The resources and the facilities of the Bank shall be used exclu
sively for the benefit of members.
The Bank shall give equal consideration to projects for develop
ment and to projects for reconstruction, and its resources and

374

MONETARY AND FINANCIAL CONFERENCE

facilities shall always be made available to the same extent for
either kind of project.
7 /1 0 /4 4

Art. Ill

Sec. 1
B

Alts. A &

(p. 13)
A r t ic l e III

Alternative A

Agencies Dealing ivith the Bank.
Except as otherwise indicated in this Agreement, the Bank shall
conduct its business only with or through the governments of the
members, their central banks, stabilization funds and other similar
fiscal agencies, the International Monetary Fund, and other inter
national agencies participated in primarily by governments of
members.
Alternative B
It is proposed that the last two lines be amended to read “and
other public international organizations, at least one-half of the
members of which are members of the Bank.”
S ec t io n 2.

7 /1 0 / 4 4

Art. Ill

Sec. 2
B

Alts. A &

(p. 14)
A r t ic l e III

Alternative A

Limitation on Loans and Guarantees.
The total amount of guarantees, participations in loans, and
loans and other investments made by the Bank shall not exceed at
any one tim e--------percent of the subscribed capital and surplus
of the Bank.
S ec t io n 3.

Alternative B

At the time of an issue of securities guaranteed by the Bank or
of an issue by the Bank of its own bonds, the amounts thereof,
added to the amounts outstanding of previous issues shall never
exceed 75% of the unpaid subscriptions to the shares of the Bank.
The Bank shall always maintain for each loan it has guaranteed
(and for each loan it has issued) either a deposit on call in the
currency or currencies in which the service of such loan is to be ful
filled or an amount of gold, sufficient to cover at least the service
of six months. These funds will be taken out of its paid up capital,

P R O C E E D I N G S AND D O C U M E N T S

375

its reserves, or, if necessary by calling for payments on the unpaid
part of the capital.
7 /1 0 /4 4

Art. Ill
Sec. 3
Alts. A & B

( P . 15)

A r t ic l e

III

Alternative A

Conditions on tvhich Bank may Guarantee or make
loans.
The Bank may guarantee, participate in, or make loans to the
government of any member, political sub-divisions thereof, and
business and industrial enterprises therein, subject to the follow
ing conditions:
(1) The government of the member in which the project is
located, the central bank of such member, or some comparable
agency fully guarantees the payment of interest on the loan and
repayment of the principal.
(2) The borrower is unable to secure the funds from other
sources under conditions which, in the opinion of the Bank, are
reasonable.
(3) A competent committee, after a careful study of the merits
of the project, has submitted a written report concluding that the
project would serve to increase the productivity of the member
country in which it is located.
( 4 ) In the opinion of the Bank, the rate of interest is reasonable
and such rate and the schedule for repayment of the principal are
appropriate to the project and to the balance of payments prospects
of the member country in which the project is located.
(5) In guaranteeing a loan made by other investors, the Bank
receives compensation for its risk.
S e c t io n 4.

7 /1 0 /4 4

Art. Ill
Sec. 4
Alt. A

(p. 15a)
A r t ic l e

III

(4 )

Alternative B
P art (1 )

It is proposed that:
(a) The preamble be amended as follows:
“The Bank may guarantee, participate in, or make loans to the
government of any member, political sub-division thereof, public
utilities, and semi-public bodies and organizations engaged in
7 4 9 0 1 3 — 4 8 — 25

376

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

production, including agricultural co-operatives and credit
institutions.”
(b) The following be substituted for sub-division 2:
“The Bank is satisfied that in the prevailing market conditions
the borrower would be unable otherwise to secure the funds under
conditions which in the opinion of the Bank are reasonable for the
borrower”.
P art (2 )

In general, loans made or guaranteed by the Bank, shall be for
the purpose of specific projects of reconstruction and development,
and except as otherwise provided in this plan, the proceeds of
loans shall only be made available to meet specific purposes. In
exceptional circumstances, however, the Bank, acting in agree
ment with the International Monetary Fund, may make or
guarantee a loan which provides the borrowing country with gold
or foreign exchange for the purpose of establishing its exchanges
and allowing a breathing space for the recovery of its economy
and the balancing of its international payments.
7 /1 0 /4 4

Art. Ill
Sec. 4
Alt. B

(p. 15b)
P art (3 )

In making or guaranteeing a loan the Bank shall pay due regard
to the prospects of the borrowing country being in a position to
service the loan; and in determining the destination, the character
and the volume of its loans it shall act prudently in the interests
both of the borrowing member country and also of the guarantee
ing members. At the same time it shall not seek to avoid the incur
ring of some measure of reasonable risk (taking account of the
commission chargeable—see below) where the loan is in the
general interests of reconstructing or developing the world's
resources or expanding international trade along mutually advan
tageous lines; and shall seek to conduct its operations taken as a
whole in such manner as to avoid, so far as possible, the calling up
of the capital reserved for guarantees, rather than seek full
security from risk in each transaction taken separately. These
considerations shall govern the lending policy of the Bank espe
cially in approving reconstruction loans to countries which have
suffered from the war.
Alternative C
Substitute for Art. I l l — Section 4— Section 4— Alternative B— Part (2)

In general, loans made or guaranteed by the Bank shall be for

P R O C E E D I N G S AND D O C U M E N T S

377

the purpose of specific projects of reconstruction and development.
The Bank acting in agreement ivith the International Monetary
Fund shall pay due regard to loans or guarantees with the specific
purpose to foster exports in a member country whose balance of
payments is disrupted by a reduction in its exports.
Art. Ill
Sec. 4
Alts. B & C

7 /1 0 / 4 4

(p. 15c)
A rtic le

III ( 4 )

Alternative D

It is proposed that sub-division (3) be amended as follows:
A competent committee, after a careful study of the purpose
of the loan or the merits of the project, has submitted. . . .
Alternative E

When making direct loans, participating in loans, or guarantee
ing the loans for restoration and reconstruction of the economy
of countries whose home areas suffered considerable damage from
enemy occupation and hostilities, the Bank shall take into con
sideration the special position of these countries in establishing
for them the most favorable rates of interest, terms and conditions
of repayment of such loans.
Alternative F

It is proposed that Section 4 be amended: (1) to make it clear
that the Bank may guarantee, participate in, or make loans to
enterprises engaged in agriculture, forrestry and fisheries, includ
ing co-operative and credit institutions; (2) to require that in the
case-of an application involving a loan, or the guaranteeing of a
loan, in respect of an agriculture, forestry or fisheries project, the
United Nations Food and Agriculture Organization, or pending
its establishment, the United Nations Interim Commission on Food
and Agriculture, shall be given an opportunity of examining the
proposal and making recommendations, and that the Bank shall
give due consideration to such recommendations before taking a
final decision on the application.
Art. Ill
Sec. 4
Alts. D, E & F

7 /1 0 /4 4

(p.15d)
A r tic le

III ( 4 )

Alternative G

It is suggested that Section 4 be amended to include loans to

378

MONETARY AND FINANCIAL CONFERENCE

“public international organizations, at least one-half of the mem
bers of which are members of the Bank.”
7 /1 0 /4 4

Art. Ill
Sec. 4
Alt. G

(p. IBe)
A r t ic l e I I I ( 4 )

Alternative H

It is proposed that Alternative B, Part (2) sentence 2, should
read:
In exceptional circumstances, however and particularly during the
early postivar period the Bank, acting in agreement with the
International Monetary Fund, may make or guarantee a loan
which provides the borrowing country with gold or foreign
exchange for the purpose of establishing its exchanges and allow
ing a breathing space for the recovery of its economy and the
balancing of its international payments.
It is proposed that Alternative B, Part (3), last sentence,
should read:
These considerations shall govern the lending policy of the Bank
especially in approving reconstruction and recovery loans to
countries which have suffered from the war.
Alternative I

It is proposed that there be added at the end of Alternative A,
section 4, sub-division (1) :
except that the Bank may, out of the capital paid in pursuant to
Article II, section 4 (a), and with the approval of the debtor's
government, provide long-term investment capital to business* and
industrial enterprises in member countries without such guarantee.
7 /1 0 /4 4

Art. Ill
Sec. 4
Alts. H & I

(P . 1 6 )
A r t ic l e I I I

Additional Material

It is proposed that the following section be added between
sections 4 and 5:
The Bank shall make no loans or investments that can be
•placed through the usual private investment channels on terms
which can be considered as reasonable for the member Govern
ment of the project concerned. The bank shall by reputation

P R O C E E D I N G S AND D O C U M E N T S

379

prescribe procedure for its operations that will assure the
application of this principle.
Art. Ill
A d d itio n a l Section

7 /1 0 / 4 4

(P. 17)
A rtic le

III

Alternative A

Provision of currencies for loans.
When the Bank makes loans it shall:
(a) Furnish the borrower with the currencies of members
other than that of the member in which the project is located
which are needed by the borrower in connection with the loan;
(b) Finance the expenditures of the borrower in the member
in which the project is located only as follows, (1) under excep
tional circumstances when the local currency required cannot be
raised on reasonable terms in the country where the project is
located, the Bank may provide an appropriate part of the loan in
that currency, or (2) if the development program or project gives
rise to an increased need for foreign exchange, the Bank may make
available to the borrower an appropriate amount of gold or foreign
exchange not to exceed the borrower’s expenditure in the member
in which the project is located;
(c) Make available at the request of a member in which a por
tion of a loan is spent an amount of gold or foreign exchange not
to exceed the amount by which the expenditure of the loan in that
member gives rise to an increased need for foreign exchange.
S e c t io n 5.

B
It is proposed that Section 5 commence as follows:
Except where the borroiver is a member Government the
Bank in making loans shall:
A ltern ative

7 /1 0 /4 4

Art. Ill
Sec. 5
Alts. A & B

(p. 18)
A rtic le

III

Alternative A

Use of loans guaranteed, participated in or made by
the bank.
(a) The Bank shall impose no conditions as to the particular
member in which the proceeds of a loan shall be spent.
(b) The Bank shall make arrangements to assure that the'
proceeds of any loan are used only for the purposes for which the
S e c t io n 6.

380

MONETARY AND FINANCIAL CONFERENCE

loan was granted, with due attention to considerations of economy
and efficiency regardless of political or other non-economic influ
ences or considerations.
(c)
In addition to any other action which the Bank may take to
implement the provisions of subsection (b) above with respect to
loans it makes, it shall credit the account of the borrower with
the amount of the loan and shall make payment from the account
only to meet expenses as they are actually incurred.
A ltern a tiv e B

It is proposed that subdivision (c) commence as follows:
(c) When a loan is made by the Bank to a borroxver other than
a member government, it shall credit.. . .
7 /1 0 /4 4

Art. Ill
Sec. 6
Alts. A & B

(P . 1 9 )

A rtic le

Operations
A ltern a tiv e A

Methods of facilitating provision of loans.
The Bank may facilitate the provision of loans which satisfy the
general conditions of Article III in any of the following ways:
(a) By direct loans out of the Bank’s own capital subscribed
under Article II, Section 4 (a ).
(b) By direct loans out of funds raised by the Bank in the
market of a member.
(c) By guaranteeing in whole or in part loans made by private
investors through the usual investment channels.
S e c t i o n 1.

7 /1 0 /4 4

Art. IV
Sec. 1
Alt. A

(P . 2 0 )

A rtic le

A ltern a tiv e A

Loans from subscribed capital.
The Bank shall make loans from currency subscribed under
Article II, Section 4 (a ), only with the approval in each case of the
member whose currency is to be loaned. If the currency required by
the borrowing country is not available in whole or in part out of
capital so subscribed, the Bank may supply such currency from
its holdings derived from other sources or may supply gold, sub
ject to Article III, Section 5, and Section 8 of this Article.
S e c t io n 2.

PROCEEDINGS AND DOCUMENTS

381

A ltern ativ e B

In the case of loans under Section 1(a) of this Article, the bor
rower shall notify the Bank in which members it desires to incur
expenditure to be met out of the loan, and the Bank shall make
the required currencies available out of its subscribed capital,
provided that the country whose currency is to be supplied has
agreed in each case. If local currency subscribed under II (4) (a) is
not available in whole or in part, the Bank shall make it available
out of its holdings of gold or other free resources, if it possesses
an adequate amount of such resources and is satisfied that, with
out this provision, the country in which the borrowing country
desires to place the order, would have difficulty in maintaining the
equilibrium of its international balance of payments. Otherwise
it shall request the borrowing country to transfer its proposed
expenditure to another member country. Furthermore, at the
request of the countries in which portions of the loan are spent, the
Bank will repurchase for gold or needed foreign exchange a part
of the sum expended in the currencies of those countries made by
the borrower from the proceeds of the loan.
7 /1 0 /4 4

Art. IV
Sec. 2
Alts. A & B

(P.21)
A r tic le

A ltern ativ e A

Loans from borrowed funds and guarantees.
The Bank shall borrow funds under Section 1 (b) of this Article
or guarantee loans under Section 1 (c) only with the approval of
the member in the market of which the funds are raised and only
if that member agrees that the proceeds may be expended in any
member without restriction.
S e c t io n 3.

A lter native B

It is proposed that the following be added:
. . . . The aggregate amount of outstanding borrowed capital
shall not at any time exceed 12 billion dollars.
7 /1 0 /4 4

Art. IV
Sec. 3
Alts. A & B

(P .22)
A r t ic l e

A lternative A

4. Payment Provisions for Direct Loans.
Loans made directly by the Bank under Section 1 (a) or (b) of
this Article shall contain the following payment provisions:—
S e c t io n

382

MONETARY AND FINANCIAL CONFERENCE

(a) The annual service of the loan shall be made up of three
parts, namely:
(i) a standard rate of interest fixed by the Bank and the same
to all borrowers but modifiable from time to time for
new loans;
(ii) an annual commission at a flat rate fixed at one percent
in the first instance but alterable by the Bank from time
to time at its discretion for new loans in the light of ex
perience, the same to all borrowers, to cover the general
expenses of the Bank, and as a provision against risk, but
the particular expenses of investigation, etc., attaching to
the individual loan, may be charged separately against
the borrowers.
(iii) an annual contribution to amortization either at a flat, or
at a progressive, rate sufficient to repay the capital within
a determined number of years, the length of which shall
be fixed with regard not only to the character and purpose
of the loan, but also, especially in the case of reconstruc
tion loans, to the conditions in the country of the borrower
which may delay the time within which the borrower can
repay the loan.
7 /1 0 /4 4

Art. IV
Sec. 4
Alt. A

(p. 22a)
The time normally shall not exceed thirty years but may
be extended to fifty years in particular cases.
(b) The loan and its annual service shall be fixed in whatever
currency may be stipulated by the Bank when making the loan,
and may be paid, at the option of the borrower, in gold, or at the
discretion of the Bank, in any other currency of a member.
(c) In the event of the country of the borrower suffering from
an acute exchange stringency, so that the service of the loan
cannot be provided in the stipulated manner, the country may
appeal to the Bank for a relaxation of the conditions of payment.
If the Bank is satisfied that some relaxation is in the interests of
the country of the borrower and of the operations of the Bank and
the other members as a whole it may take action under either, or
both, of the following headings in respect of the whole, or part,
of the annual service:—
(i) The Bank may in its judgment accept payments in respect
of the service of the loan for periods not exceeding three
years at a time in local currency. The Bank shall arrange
with the borrowing country for the repurchase of such

PROCEEDINGS AND DOCUMENTS

383

local currency over a period of years on appropriate terms
that safeguard the Bank’s holdings of such currency. The
Bank may also require that the whole, or part of such
currency, may be transferred to another member in whose
7 /1 0 /4 4

Art. IV
Sec. 4
Alt. A

hands it shall (p. 22b) be freely available to make
payments or to purchase exports in the borrowing country,
(ii) The Bank may re-arrange the instalments of amortiza
tion so as to increase the amount due in later years or to
prolong the life-time of the loan.
(d)
Payments of interest, commissions, and principal, whether
made in currency or in gold, must be equivalent to the gold value of
the loan and of the contractual interest and commissions thereon.
7/1 0 /4 4

Art. IV
Sec. 4
Alt. A

(p. 22c)
A r t ic l e

(4 )

A ltern a tiv e B

It is proposed that Alternative A be amended as follows:
(1) Substitute for subdivision (a) (i) :
A rate of interest varying with the conditions of the financial
markets and the credit position of the borrower;
(2) Delete subdivision (a) (ii) ;
(3) Substitute for subdivision (b) :
The loan and its annual service shall be fixed in the currency
agreed between the borrower and the Bank when making
the loan, and may be paid, at the option of the borrower,
in the same currency or in gold, or in any other member
currency agreed between the Bank and the borrower.
(4) Delete subdivision (d).
7 /1 0 /4 4

Art. IV
Sec. 4
Alt. B

(p.22d)
A r t ic l e

(4 )

A ltern a tiv e C

It is proposed that Alternative A, subdivision (c) (i), sentence
3, should read:
The Bank may also require that the whole, or part of such
currency, may be transferred to another member in whose hands

384

MONETARY AND FINANCIAL CONFERENCE

it shall be freely available to make payments on existing obliga
tions or to purchase exports in the borrowing country.
A lternative D
It is proposed that Alternative A, subdivision (c) (i), sentence
read as follows:
Payments of interest, commissions, and principal, whether
made in currency or in gold, must, in the case of loans under
Article IV, 1 (a), be equivalent to the gold value of the loan and
of the contractual interest and commissions thereon.
In the case of loans under Article IV, 1(b) and (c), payments
of commissions must be maintained at their initial gold value.
Payments of interest and principal will be governed by the
provisions of the loan contract.
7/10/44

Art. IV
Sec. 4
Alts. C & D

(p . 2 3 )
A r tic le

Alternative A

Participations.
The Bank may participate in loans with any of its resources ex
cept those subscribed under Article II, Section 4(a ). Loans par
ticipated in by the Bank shall be placed through the usual invest
ment channels.
S e c t i o n 5.

7 /1 0 /4 4

Art. IV
Sec. 5
Alt. A

(p . 2 4 )
A r tic le

Alternative A

Guarantees.
In guaranteeing a loan placed through the usual investment
channels, the Bank shall charge a commission on the entire original
amount of the loan at a flat rate fixed at one percent per annum
in the first instance but alterable by the Bank from time to time
at its discretion for new guarantees in the light of experience.
Commissions shall be paid direct to the Bank by the borrower.
S e c t io n 6.

Alternative B
In guaranteeing a loan placed through the usual investment
channels, the Bank shall charge a guarantee commission on the
outstanding amount of the loan. The rate of the guarantee com
mission shall be fixed at a certain percent per annum varying

PROCEEDINGS AND DOCUMENTS

385

with the conditions of the financial markets and the credit position
of the borrower. It shall, however, not be higher than V/zfo per
annum and not lower than *4% per annum. Guarantee commis
sions shall be paid direct to the Bank by the borrower.
Art. IV
Sec. 6
Alts. A & B

7 /1 0 /4 4 ’
( P .25)

A r t ic l e

A lternative A

Order of Meeting Obligations.
The obligation of the Bank on borrowings or guarantees under
Section 1 (b) and (c) of this Article shall be met first from its
receipts from commissions and other profits, then from a call on
unpaid subscriptions, and finally from paid-in capital. When there
is any interruption in the service of a loan guaranteed by the
Bank, it shall assume the service. If losses of the Bank are re
covered the funds received shall be returned pro rata to members
responding to any calls by which the obligations of the Bank were
met. With the approval of the Bank, a member subjected to a call,
may, in lieu of paying the call, purchase from the Bank currency
of the country the default of which or of a borrower in which
has necessitated the call but in such case the amount returnable
to the member if the loss is recovered shall be appropriately
reduced.
SECTION 7.

7 /1 0 /4 4

Art. IV
Sec. 7
Alt. A

( P . 26)

A rtic le

Alternative A

Miscellaneous Operations.
In addition to the operations specified elsewhere in this Agree
ment, the Bank shall have the power:
(1) To issue, buy and sell (i) its own securities including se
curities collateralized by loans or investments it has made,
(ii) securities it has guaranteed and, (iii) securities in
which it has invested, but the Bank shall obtain the ap
proval of the member in which securities are to be issued,
bought or sold, and when the Bank buys securities it has
issued it shall also obtain the approval of the member whose
currency will be paid for such securities.
S e c t io n 8.

386

MONETARY AND FINANCIAL CONFERENCE

(2) To guarantee securities in which it has invested for the
purpose of facilitating the sale of such securities.
(3) To borrow the currency of any member with the approval
of such country; and
(4) After consultation with the International Monetary Fund,
to buy and sell gold and the currencies of members when
ever such transactions are necessary in connection with
the operations of the Bank but with respect to each trans
action other than any undertaken to pay creditors, the
Bank shall obtain the approval of the member in which
the transaction takes place and the member currency of
which is disposed of by the Bank.
In exercising the powers conferred by this Section, the Bank
may deal with any person, partnership, association, corporation
or other legal entity in any member country.
7 /1 0 /4 4

Art. IV
Sec. 8
Alt. A

(p. 27)
A r t ic l e I V

Alternative A

Warning to be Placed on Securities.
Every security guaranteed or issued by the Bank shall bear on
its face a conspicuous statement that it is not an obligation of the
government of any country other than any expressly stated to
be obligated on the security.
S e c t io n 9.

7 /1 0 /4 4

Art. IV

Sec. 9
Alt. A

(P. 2 8 )
A r t ic l e IV
A lternative A

Political A ctivity Prohibited.
The Bank and its officers shall scrupulously avoid interference
in the political affairs of any member. This provision shall not
limit the right of an officer of the Bank to participate in the political
life of his own country.
The Bank shall not be influenced in its decisions with respect
to applications for loans by the political character of the govern
ment of the member concerned with the loan. Only economic con
siderations shall be relevant to the Bank’s decisions.
The Bank, acting with the strictest impartiality, shall pay par
S ec t io n 10.

PROCEEDINGS AND DOCUMENTS

387

ticular regard, both in selecting the place of its borrowing and
of its lending to maintaining the equilibrium of the international
balance of payments of members.
7 /10/44

Art. IV
Sec. 10
Alt. A

(P. 2 9 )
A r t ic l e V

Management
Alternative A

1. Board of Governors.
(a) The administration of the Bank shall be vested in a Board
of Governors consisting of one governor and one alternate ap
pointed by each member country in such manner as it may de
termine. Governors and alternates shall serve for five years,
subject to the pleasure of their respective governments, and may
be reappointed. No alternate may vote except in the absence of his
governor. The Board shall select a chairman from its members.
(b) The Board of Governors may delegate to the Executive
Director Directors authority to exercise any powers of the Board,
except:
(1) Determining what new members may be admitted and
the conditions of their admission;
(2) Increasing the capital stock;
(3) Requiring a member to withdraw;
(4) Deciding appeals against interpretations of the Agreement
by the Executive Directors given on application by a
member;
(5) Making agreements to cooperate with other international
organizations;
(6) Deciding to liquidate the Bank.
(c) The Board of Governors shall hold an annual meeting and
such other meetings as may be provided for by the Board or
convened by the Executive Directors whenever requested by five
members or by one-quarter of the aggregate votes.

S e c t io n

7 /1 0 /4 4

Art. V
Sec. 1
Alt. A

(p. 29a) (d) The Board may by regulation establish a pro
cedure whereby the Executive Directors, when they deem such
action to be in the best interest of the Bank, may obtain votes
of the governors on a specific question in lieu of calling a meeting
of the Board.

388

MONETARY AND FINANCIAL CONFERENCE

(e)
Governors and alternates shall serve as such without com
pensation from the Bank, but the Bank shall pay such reasonable
expenses as are incurred by the Governors and alternates in
attending any meetings.
7 /1 0 /4 4

* rt- w

Sec. 1
Alt. A

(p. 30)
A r t ic l e V
A lternative A

Voting.
Each member shall have ------------ votes plus one additional
vote for each share of stock held.
Except as otherwise specifically provided, all matters before the
Bank shall be decided by a majority of the aggregate votes.
S e c t io n 2.

7 /1 0 /4 4

Art. V

Sec. 2
Alt. A

(P. 3 1 )
A r t ic l e V
A lternative A

The Executive Directors.
(a) The Executive Directors shall be responsible for the con
duct of the general operations of the Bank, and for this
purpose, shall exercise all the powers delegated to them
by the Board of Governors.
(b) There shall b e---------Executive Directors, of whom---------shall be appointed by the --------- members holding the
largest number of shares an d ---------shall be elected bien
nially, in accordance with the provisions of Schedule B,
by all the Governors other than those appointed by the
members having the --------- largest number of shares.
Persons chosen as Executive Directors need not be Gov
ernors.
(c) Every Executive Director may appoint an alternate with
full power to act for him when he is not present. When
the Executive Directors appointing them are present, al
ternates may participate in meetings but shall not vote.
(d) The Executive Directors shall function in continuous ses
sion at the principal office of the Bank and shall meet as
often as the business of the Bank may require.

S e c t io n 3.

7/10/44

Art. V
Sec. 3
Alt. A

PROCEEDINGS AND DOCUMENTS

389

(p. 31a)
(e) In order to constitute a quorum for any meeting of the
Executive Directors, there must be present a majority of
the Directors representing not less than one-half of the
voting power of all the Executive Directors.
(f) Each Executive Director appointed by one of the members
with th e ---------largest quotas shall be entitled to cast the
number of votes allotted under Section 2 of this Article
to the member appointing him. Each elected Executive Di
rector shall be entitled to cast only the number of votes
which actually count toward his election. Each Executive
Director shall cast all of the votes to which he is entitled
as a single unit.
(g) Except as otherwise specifically provided, all matters be
fore the Executive Directors shall be decided by a majority
of the votes cast.
(h) The Board of Governors shall make regulations contain
ing provisions under which a member which is not entitled
to appoint an Executive Director under (b) above shall be
permitted to send a representative to attend any meeting
of the Executive Directors when a request made by, or a
matter particularly affecting, that member is under con
sideration.
(i) The Executive Directors shall select a President who shall
7 /1 0 /4 4

Art. V
Sec. 3
Alt. A cont'd

not be a Governor or an (p. 31b) Executive Director.
The President shall be Chairman of the Executive Direc
tors, but shall have no vote except a casting vote in case
of an equal division. He may participate in meetings of
the Board of Governors, but shall not vote at such meet
ings. He shall, however, be eligible for election as Chair
man of the Board of Governors. The President shall hold
office at the pleasure of the Executive Directors.
(j) The President shall be chief of the operating staff of the
Bank and shall conduct under the direction of the Execu
tive Directors, the ordinary business of the Bank’s work.
Subject to the general control of the Executive Directors,
he shall be responsible for the internal organization of the
Bank’s staff and the appointment and dismissal of its staff.
(k) The President and the staff of the Bank, in the discharge
of their offices owe their duty entirely to the Bank and to
no other authority.

390

MONETARY AND FINANCIAL CONFERENCE

Each member of the Bank shall respect the international
character of this duty and shall refrain from all attempts
to influence any member of the staff in the discharge of
his duty.
(1) In appointing the staff the President shall, subject to the
paramount importance of securing the highest standards
of efficiency and of technical competence, pay due regard
to the importance of selecting personnel recruited on as
wide a geographical basis as is possible.
7 /1 0 /4 4

Art. V
Sec. 3
Alt. A cont’d

(p. 31c)
(m) The Executive Directors may appoint such committees as
they deem advisable. Members of such committees need
not be limited to Governors or Executive Directors or
their alternates.
(n) The Board of Governors shall determine the remuneration
to be paid to the Executive Directors and the salary and
terms of service of the President.
SCHEDULE B

(a) In balloting for the elective Executive Directors, each
governor eligible to vote shall cast for one person all of
the votes to which he is entitled under Section 2 of this
article. The six persons receiving the greatest number
of votes shall be Executive Directors, except that no person
who receives less than sixteen percent of the aggregate
eligible votes shall be considered elected,
(b) When six persons are not elected on the first ballot, a second
ballot shall be held in which the person receiving the low
est number of votes shall be ineligible for election and in
which there shall vote only those governors who voted on
the first ballot for a person not elected and those governors
all or part of whose votes for a person elected are deemed
to have raised the votes cast for that person above seven
teen percent of the aggregate eligible votes.
7 /1 0 /4 4

Art. V
Sec. 3
Alt. A cont’d

(p. 31d)
(c) In determining whether any part of the votes cast by a
governor are to be deemed to have raised the total of any
person above seventeen percent, there shall be considered
as not forming part of the excess over seventeen percent

PROCEEDINGS AND DOCUMENTS

391

the votes of the governor casting the largest number of
votes for such person, then the votes of the governor
casting the next largest number, and so on until the total
reaches seventeen percent.
(d) Any governor whose votes are partly not in excess and
partly in excess shall be eligible to vote in the second bal
loting only to the extent of the votes in excess.
(e) If on the second ballot, six persons have not been elected,
further ballots shall be taken on the same principles until
six persons have been elected, provided that after five
persons are elected, the sixth may be elected by a simple
majority of the reclaming votes and shall be deemed to
have been elected by all such votes.
7 /1 0 /4 4
Art. v
Sec. 3
Alt. A cont’d

(p. 3 2 )
A r t ic l e V

Alternative A

Advisory Council.
There shall be an Advisory Council of seven persons elected
by the Bank from outstanding representatives of banking, busi
ness, labor and agricultural interests, who are citizens of mem
bers, but only one citizen of any member shall serve on the
Council at any one time. The Council shall advise with the Bank
on matters of general policy. The Council shall meet annually
and on such other occasions as the Bank may request.
Councillors shall serve for two years, and may be reelected.
They shall be paid their reasonable expenses incurred in behalf
of the Bank.
Alternative B
It is suggested that Section 4 be amended to provide that one
member of the Advisory Council shall be nominated by the United
Nations Food and Agriculture Organization.
S e c tio n 4.

7 /1 0 /4 4

Art. V
Sec. 4
Alts. A & B

(p. 33)
A r t ic l e Y

Alternative A

Loan Committees.
The committees required to report on loans under Article I,

S e c t io n 5.

749013— 48— 26

392

MONETARY AND FINANCIAL CONFERENCE

Section 5, shall be appointed by the Bank, except that such com
mittee shall include an expert selected by the Governor represent
ing the member in which the project is located, who may or
may not be from the technical staff of the Bank. The majority
of each committee shall be from the technical staff.
7 /1 0 /4 4

■

Art. V
Sec. 5
Alt. A

(p. 34)
A r t ic l e V

Alternative A

Relationship to Other International Organizations.
The Bank, within the terms of this Agreement, shall cooperate
with any general international organization and with public inter
national organizations having specialized responsibilities in related
fields. Any arrangements for such cooperation which would involve
a modification of any of the provisions of this Agreement may be
effected only after amendment to this Agreement in conformity
with the procedure set forth in Article IX.

S e c t io n 6.

7 /1 0 /4 4

Art. V
Sec. 6
Alt. A

(p. 35)
A r t ic l e V

Alternative A

Location of Offices
The principal office of the Bank shall be located in the member
holding the greatest number of shares and agencies or branch
offices may be established in any member or members.
Alternative B
The location of the principal office of the Bank shall be decided
by the Fund at the first meeting of the Board of Governors, which
will take place in the territory of the member having the largest
quota.
S e c t io n 7.

7 /1 0 /4 4

Art. V
Sec. 7
Alts. A & B

(p .36)
A r t ic l e V
A lternative A

Depositories.
(a)
Each member shall designate its central bank as a deposi
tory for all the Bank’s holdings of its currency or, if it has no

S ec t io n 8.

PROCEEDINGS AN1) DOCUMENTS

393

central bank, it shall designate such other institution as may be
acceptable to the Bank.
(b)
The Bank may hold other assets, including gold, in desig
nated depositories in the four members holding the greatest
number of shares and in such other depositories as the Bank may
select. At least one-half of the holdings of gold of the Bank shall
be held in the designated depository in the member in which the
Bank has its principal office. In an emergency, the Executive
Directors may transfer all or any part of the Bank’s holdings of
gold to any place where it can be adequately protected.
7/1 0 /4 4

Art. V
Sec. 8
Alt. A

(p. 37)
A r t ic l e V

Alternative A

Form of Holdings of Currency.
The Bank shall accept from any member in lieu of any part of
the currency of that member not needed by the Bank in its opera
tions, notes or similar obligations issued by the Government of
the member or the depository designated by such member, which
shall be non-negotiable, non-interest bearing and payable at their
par value on demand by a credit to the currency account of the
Fund in that member.
S e c t io n 9.

7/10/44

Art.V
Sec. 9
Alt. A

(p. 38)
A r t ic l e V

Alternative A

Protection of the Assets of the Bank.
No change in the foreign exchange value of the currency of any
member shall alter the gold value of the assets of the Bank. When
ever (i) the par value of a currency of a member is reduced, or
(ii) the foreign exchange value of the currency of any member
has depreciated within the jurisdiction to a significant extent in
the opinion of the Bank, the member shall compensate the Bank
by paying to the Bank within a reasonable time an amount of its
own currency equal to the reduction the gold value of the currency
of such member held by the Bank. Whenever the par value of the
currency of any member has been increased the Bank shall com
pensate such member by returning, within a reasonable time, an

S e c t io n 10.

394

MONETARY AND FINANCIAL CONFERENCE

amount in the currency of such member equal to the increase in
the gold value of the currency of such member held by the Bank.
7 /1 0 /4 4

Art. V
Sec. 10
Alt. A

(P. 3 9 )
A r t ic l e V

Alternative A

Publication of Reports.
The Bank shall publish an annual report containing an audited
statement of its accounts and shall issue at intervals of three
months or less a summary statement of its financial position and
a profit and loss statement showing the results of its operations.
The Bank may publish such other reports as it deems desirable
for carrying out its purposes and policies.
Art. v
7 /1 0 /4 4
S e c t io n 11.

Sec. 11
Alt. A

(P. 4 0 )
A r t ic l e V

Alternative A

Allocation of Income.
The Bank shall determine annually what part of its net income
shall be placed to reserve and what part, if any, shall be distributed.
If any part is distributed, two per cent non-cumulative shall
be paid, as a first charge against the distribution of any year, to
each member on the basis of the amount by which at the end of
the fiscal year the amount paid on the par value of its shares
exceeds the amount of its currency held by the Bank; and the
balance to the members in proportion to their shares. Payments
to each member shall be made in its own currency.
S e c t io n 12.

7 /1 0 /4 4

Art. V
Sec. 12
Alt. A

(P- 4 1 )
A r t ic l e V

Alternative A

Miscellaneous Powers.
In order to carry out its purposes, the Bank may:
(1) Make contracts;
(2) Acquire and dispose of real and personal property;
(3) Institute legal proceedings in any court of competent
jurisdiction;

S e c t io n 13.

P R O C E E D I N G S AND D O C U M E N T S

395

(4) Enter into such compromises or settlements of obligations
due to or by the Bank as in the judgment of the Board are
to the best interests of the Bank;
(5) Employ such staff as shall be necessary to conduct the
business of the Bank; and
(6) Adopt such rules or regulations as may be necessary or
appropriate to conduct the business of the Bank.
7 /1 0 / 4 4

Art. V
Sec.13
Alt. A

( P . 42)

VI
Withdrawal and Suspension of Membership and Liquidation
A r t ic l e

Alternative A

Right of Members to Withdraw.
Any member may withdraw from the Bank at any time by
serving written notice on the Bank at its principal office. With
drawal shall become effective on the date such notice is received.
S e c t i o n 1.

7 /1 0 /4 4

Art. V I
Sec. 1
Alt. A

(p .43)
A r t ic l e

Alternative A

Suspension of Membership .
A member country failing to meet any of its obligations to the
Bank may be suspended from membership by decision of a major
ity of the member countries, each of which for this purpose shall
have one vote, to be cast by its director or alternate. At the end of
one year from the date of suspension, the country shall auto
matically cease to be a member of the Bank unless a majority of
the member countries, voting in the same manner as for suspen
sion, restores the country to good standing.
While under suspension, a country shall be denied all of the
privileges of membership except the right of withdrawal, but
shall be subject to all of its obligations.
S e c t i o n 2.

7 /1 0 /4 4

Art. V I
Sec. 2
Alt. A

(p. 44)
A r tic le

Alternative A

Financial Assistance to be Withheld.
If any country is suspended from membership, the members

S e c t i o n 3.

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

396

agree that they and their agencies will not extend financial assis
tance to that country during the period of suspension without
approval of the Bank.
7/10/44

Art. VI

Sec. 3
Alt. A

(P. 4 5 )
A rtic le

A lternative A
S e c t io n 4.

Cessation of Membership in International Monetary

Fund.
Any member which ceases to be a member of the International
Monetary Fund shall immediately cease to be a member of the
Bank.
B
Any member country that withdraws or is dropped from the
International Monetary Fund, shall relinquish its membership in
the Bank unless three-fourths of the member votes favor its
remaining as a member.
A lternative

A lternative C

It is proposed that this Section be omitted.
7/10/44

Art. VI
Sec. 4
Alts. A, B, C

( P .46)
A rtic le

A lternative A

Settlement of Accounts with Countries Ceasing to be
Members.
(a) When a country ceases to be a member, the Bank shall
arrange to repurchase its shares as a part of the settle
ment of accounts with such country. The repurchase price
of the shares shall be the amount at which such shares are
to be carried on the books of the Bank on the day the
country ceases to be a member of the Bank plus a pro
rata share of any surplus existing on that date.
(b) The payment for shares repurchased by the Bank under
this section shall be governed by the following conditions:
(1) No amount shall be paid for shares prior to six months
from the date upon which the country ceases to be a
member nor thereafter so long as the country, its
central bank or any of its agencies remain liable,

SECTION 5.

P R O C E E D I N G S AND D O C U M E N T S

397

directly, or contingently, to the Bank, except as to
liability of the country resulting from its subscrip
tion for shares, and any amount so withheld may, at
the option of the Bank, be applied on any matured
obligation. Payments for shares shall be made from
time to time to the extent by which the amount due
as the repurchase price exceeds the aggregate of such
liabilities until the former member has received the
full repurchase price.
7/10/44

Art. VI
Sec. 5
Alt. A

(p. 46a)
(2) Payments shall be made in the currency of the
country receiving payment and any deficiency shall
be paid in gold or gold-convertible exchange at the
option of the Bank.
(c) In the event the Bank goes into liquidation within six
months of the date upon which any country ceases to be a
member of the Bank, all rights of such country shall be
determined by the provisions governing liquidation.
7/10/44

Art. VI
Sec. 5
Alt. A

(p .47)
A rtic le

A ltern ativ e A

Assessments to Meet Losses
(a) In the event any loss is sustained by the Bank on any
guarantee, participation in a loan, or loan which was out
standing on the date the country ceased to be a member of
the Bank, and the amount of such loss exceeds the amount of
the reserve existing on the date the country ceased to be a
member, such country shall be obligated to repay upon
demand that amount by w7
hich the repurchase price of its
shares would have been reduced if the loss had been taken
into account when the repurchase price was determined.
In addition, the former member country shall remain
liable on any call for unpaid subscriptions to the extent
that it would have been required to respond if the impair
ment of capital had occurred and the call had been made
at the time the repurchase price of its shares was
determined.

S e c t io n 6.

398

MO NETA R Y AND F IN A N C IA L C O N F E R E N C E

(b) Repayment to the Bank under this section shall be in
currency and gold or gold-convertible exchange in the
same proportion as the payments by the Bank for the
repurchase of the shares.
7/10/44

Art. VI
Sec. 6
Alt. A

(p .48)
A r t ic l e V I
A lternative A.

Liquidation
In an emergency, the Executive Committee by a majority vote,
temporarily may suspend the operations of the Bank, pending an
opportunity for further consideration and action by the Board.
The Bank may be voted into liquidation by a majority of the
aggregate votes.
Upon being voted into liquidation, the Bank shall forthwith
cease engaging in any activities except those incident to the
orderly liquidation, conservation and preservation of its assets
and the settlement of its obligations.
The liability of all member countries for uncalled subscriptions
to the capital stock of the Bank and their guarantees with respect
to the depreciations of their own currencies shall continue until
all claims of creditors including all contingent claims shall have
been discharged.
Upon liquidation, all creditors holding direct claims shall be
paid immediately if the Bank has sufficient assets, and if the assets
are not sufficient, the Executive Committee shall pay such credi
tors as soon as possible out of payments to the Bank or calls on
subscriptions, but before making any payments to holders of
direct claims, the Committee shall make such arrangements as
are necessary, in its judgment, to insure a distribution to holders
of contingent claims ratably with creditors holding direct claims.
S e c t io n 7.

7/10/44

Art. VI
Sec. 7
Alt. A

(p. 48a)
No distribution shall be made to a member country on account
of its capital subscription until all claims of creditors, including
all contingent claims, have been discharged or have been provided
for by the Executive Committee having made arrangements suffi
cient, in its judgment, to accomplish that purpose.

P R O C E E D I N G S AND D O C U M E N T S

399

(Detailed provisions relating to method of distribution to shareholders will
be supplied later on basis of principles provided for liquidating the In ter
national Monetary Fund.)
7 /1 0 /4 4

Art. VI
Sec. 7
Alt. A

( P .49)
A r t ic l e

VII

Additional Undertakings on the part of Member Countries
A lternative A

1. Purposes and Scope of Undertakings.
In order to support the activities of the Bank and to foster the
accomplishment of its purposes and policies, each member country,
in addition to commitments appearing elsewhere in this Agree
ment, undertakes the performance of and agrees to the stipula
tions set forth herein, all of which shall remain binding during
suspension or after termination of membership.
S ec t io n

7 / IQ/44

Art. VII
Sec. 1

Alt. A

(p. 50)
A r t ic l e

VII

A lternative A

Immunities of the Bank.
(a) The Bank and its assets of whatsoever nature shall, where
soever located and by whomsoever held, be exempt and immune in
the territory of any member from:
(i) search, seizure, attachment, execution, requisition, con
fiscation, moratorium and expropriation, except as provided in
3, below; and
(ii) any exchange, debt, or export controls, except such as
are consented to by the Bank.
(b) All governors, executive directors, officers and employees
of the Bank shall, with respect to their official acts, be exempt
from suit except when the Bank consents.
(c) The archives of the Bank shall be inviolable.
N ote . There are certain other minor privileges or immunities
which will also be required such as courier facilities. Further
material will be supplied completing this section in this
respect.
S ec tio n 2.

7/10/44

Art. VII
Sec. 2

Alt. A

400

MONETARY AND FINANCIAL CONFERENCE

( P . 51)
A r t ic l e

VII

Alternative A

Suits against the Bank.
Suits may be brought against the Bank only in a court of com
petent jurisdiction in a member in which the Bank has an office,
and only by litigants other than members and those acting for or
deriving claims from members. The Bank and its assets of what
soever nature shall, wheresoever located and by whomsoever held,
be exempt and immune from seizure, attachment and execution in
advance of final judgment.
S e c t io n 3.

7 /1 0 /4 4

Art. V II
Sec. 3
Alt. A

(P. 52)
A r t ic le

VII

Alternative A

Restrictions on Taxation of the Bank, its Employees
and Obligations
(a) The Bank, its assets, property, income and its operations
and transactions authorized by these articles of Agreement shall
be exempt and immune from all taxation and from all customs
duties. The Bank shall also be exempt and immune from liability
for the collection or payment of any tax or duty.
(b) No member, or any political subdivision or any taxing
authority thereof, shall impose or collect any tax on or measured by
salaries paid by the Bank to its executive directors, officials and
employees who are not citizens of such member.
(c) No member, or any political subdivision or taxing authority
thereof, shall impose or collect any taxation on any obligation or
security issued by the Bank, or any dividend or any interest
thereon, by whomsoever held or received:
(i) which discriminates against such obligation, dividend,
or interest, because of its origin; or
(ii) which is applied solely on the basis of the place or cur
rency in which it* is issued, made payable or paid, or
solely on the basis of the location of any office or place of
business maintained by the Bank.
(d) Each member shall inform the Bank of the detailed action
it has taken to grant the exemptions and immunities provided for
in this section and in section 2 respectively. Differences which may
S ec tio n 4.

PROCEEDINGS AND DOCUMENTS

401

arise between such member and the Bank as to the sufficiency or
propriety of any action shall be resolved in accordance with the
provisions of Article IX, Section 1.
Art. V II
Sec. 4
Ait. A

7 /1 0 /4 4

(P. 53)

VIII
Amendments

A r t ic l e

Alternative A

Any proposal to introduce modifications in the agreement,
whether emanating from a member, a Governor or an Executive
Director, shall be communicated to the Chairman of the Board of
Governors who shall bring the proposal before the Board. If the
proposed amendment is approved by the Board by a majority of
the aggregate votes, the Bank shall, by circular letter, ask the
governments of all the members whether they accept the proposed
amendment. When three-fifths of the members, having four-fifths
of the aggregate votes, have accepted the proposed amendment, the
Bank shall certify the fact by means of a proces verbal, which it
shall communicate to the governments of all members.
However, the acceptance of the amendment by the governments
of all members is required in the case of modifications of the right
to withdraw from the Bank.
The amendment will enter into force for all members three
months after the date of the proces verbal unless a shorter period
is specified in the circular letter.
7 /1 0 /4 4

Art. V II!
Ait. A

(p. 54)

IX
Interpretation of the Agreement
A r t ic l e

Alternative A

Interpretation.
(a) All questions of interpretation of the provisions of this
agreement arising between any member and the Bank or between
any members of the Bank shall be submitted to the Executive
Directors of the Bank for their decision. If the question particu
larly involves any member and that member is not represented
among the Executive Directors by a Director appointed by it, then
the provisions of Article VI, section 3, apply.
(b) In any case where the Executive Directors have given a
S e c t io n 1.

402

MONETARY AND FINANCIAL CONFERENCE

decision under paragraph (a) above, any member may require
that the question be submitted to the Board of Governors, and the
decision of the Board shall be final. Pending the result of the
reference to the Board, the Bank may (so far as is necessary) act
on the basis of the decision of the Executive Directors.
(c)
Whenever a disagreement arises between the Bank and a
country which has ceased to be a member, or between the Bank and
any member country after liquidation of the Bank, such disagree
ment shall be submitted to arbitration by a tribunal of three
arbitrators, one appointed by the Bank, another by the country
involved and an umpire who, unless the parties otherwise agree,
shall be appointed by the President of the Permanent Court of
International Justice. The umpire shall have full power to settle
all questions of procedure in any case where the parties are in
disagreement with respect thereto.
7 /1 0 /4 4

Art. IX
Sec. 1
Alt. A

(p. 55)
A r t ic l e

Alternative A
S e c t io n 2.

Definitions.
(To be supplied later)

7 /1 0 /4 4

Art. IX
Sec. 2
Alt. A

(P. 56)
A r t ic l e

Alternative A

Approval Deemed Given.
Whenever the approval of any member is required before any
act may be done by the Bank, approval shall be deemed to have
been given unless the member presents an objection within such
reasonable period as the Bank may fix in notifying the member
of the proposed Act.
S e c t io n 3.

7 /1 0 /4 4

Art. IX
Sec. 3
Alt. A

(P. 57)
A r t ic l e

(Final Provisions )
(To be supplied later)
7 /1 0 /4 4

A rt.X

P R O C E E D I N G S AND D O C U M E N T S

403

Document 247 (201)
G D / 2 9 (G D /2 3 )

Representation of Delegations on Commissions
and Committees
C o m m is s io n I

Chairman—Harry D. White (U.S.A.)
Vice Chairman—Rodolfo Rojas (Venezuela)
Reporting Delegate—L. Rasminsky (Canada)
Secretary—Leroy D. Stinebower
Assistant Secretary—Eleanor Dulles
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation
BRAZIL
No designation
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch
D. C. Abbott
J. A. Blanchette
CHILE
Luis Alamos
German Riesco
A rturo Maschke
Fernando Mardones
CHINA
Tingfu F. Tsiang
COLOMBIA
Carlos Lleras Restrepo
COSTA RICA
Luis D. Tinoco Castro
Jose Rafael Oreamuno
CUBA
E. I. Montoulieu
Oscar Garcia Montes
Ramiro Guerra
Luis Machado

J. M. Menocal
Miguel A. Pirez
Eduardo D urruthy
Felipe Pazos
CZECHOSLOVAKIA
Ladislav Feierabend
Jan Mladek
Antonin Basch
Josef Hanc
Ervin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETHIOPIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos
Alexander Argyropoulos
GUATEMALA
Manuel Noriega Morales

404

MONETARY AND FINANCIAL CONFERENCE

(P . 2)
HAITI
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
Magnus Sigurdsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A. D. Shroff
IRAN
Abol H asan Ebtehaj
Hosein Navab
A. A. D aftary
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Antonio Espinosa de los
Monteros
NETHERLANDS
J. W. Beyen
D. Crena de longh
H. Riemens
J. J. Polak
C. H. Schoch
A. Broches
NEW ZEALAND
W alter Nash
B. C. Ashwin
B. R. Turner
A. G. B. Fisher
E. C. Fussell
NICARAGUA
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
Leon DeBayle

NORWAY
Wilhelm Keilhau
Ole Colbjornsen
Arne Sk^ug
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
• * PERU
Pedro G. Beltran
Juvenal Monge
Emilio Barreto Latzeb
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael M athay
POLAND
Leon Baranski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
M. S. Stepanov
P. A. Maletin
A. P. Morozov
A. M. Smirnov
UNITED KINGDOM
Lord Keynes
R. H. Brand
Sir W. Eady
R. Opie
UNITED STATES OF AMERICA
F. M. Vinson
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar .

P R O C E E D I N G S AND D O C U M E N T S

C o m m is s io n I

Committee 1
Chairman—Dr. Tingfu F. Tsiang (China)
Reporting Delegate—Kyriakos Varvaressos (Greece)
Secretary—W. A. Brown
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron Rene Boel
BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
CHILE
Luis Alamos
CHINA
Te-Liang Soong
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Ramiro Guerra
Garcia Montes
Eduardo D urruthy
CZECHOSLOVAKIA
Jan Mladek
Antonin Basch
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

EL SALVADOR
Agustin Alfaro Moran
Victor Manuel Valdes
Raul Gamero
ETHIOPIA
B latta Ephrem Medhen
FRENCH DELEGATION
A. Istel
J. de Lar gent aye
R. Mosse
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
A. Asgeirsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A. D. Shroff
IRAN
A. II. Ebtehaj
Ilosein Navab
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
Daniel Cosio Villegas
Victor L. Urquidi

406

MONETARY AND FINANCIAL CONFERENCE

(p. 2.)
NETHERLANDS
J. W. Beyen
D. Crena de Iongh
H. Riemens
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. T urner
NICARAGUA
Leon DeBayle
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
NORWAY
'
Wilhelm Keilhau
Arne Skaug
K aare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Ju an Chavez
Emilio Barreto Latzeh
P H IL IP PIN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
S. Kirkor
Z. Karpinski
M. Heilperin
W. Malinowski
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. P. Morozov
F. P. Bystrov
P. Titov
N. Ivanov
U NITED KINGDOM
Lionel Robbins
A. W. Snelling
U NITED STATES OF AMERICA
Mabel Newcomer
F. M. Vinson
E. A. Goldenweiser
E. A. Collado
H. Edmiston
URUGUAY
Mario La Gamma Acevedo
V ENEZUELA
Rodolfo Rojas
Cristobal L. Mendoza
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n

Committee 2
Chairman—N. A. Maletin (U.S.S.R.)
Vice Chairman—W. A. Mackintosh (Canada)
Reporting Delegate--Robert Mosse (French Delegation)
Secretary—Karl Bopp
Assistant Secretary-—
Alice Bourneuf
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Georges Theunis

EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETH IO PIA
George A. Blowers

P R O C E E D I N G S AND D O C U M E N T S

BOLIVIA
No designation
BRAZIL
Francisco Alves dos Santos Filho
CANADA
L. Rasminsky
W. A. Mackintosh
J. J. Deutsch
CHILE
German Riesco
CHINA
Tsu-Yee Pei
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Garcia Montes
Eduardo D urruthy
Felipe Pazos
CZECHOSLOVAKIA
Antonin Basch
Jan Mladek
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
(P. 2 .)
NETHERLANDS
D. Crena de Iongh
A. Andriesse
A. Bestebreurtje
J. J. Polak
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. T urner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
7 4 9 0 1 3 — 48 — 27

407

FRENCH DELEGATION
A. Istel
J. de Lar gent aye
R. Mosse
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
S. Frimannsson
INDIA
Sir A. J. Raisman
Sir Theodore E. Gregory
Sir Shanmukham Chetty
Sir Chintaman D. Deshmukh
A. D. Shroff
IRAN
A.
H. Ebtehaj
Hosein Navab
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LUXEMBOURG
Hugues Le Gallais
MEXICO
Antonio Espinosa de los
Monteros
Rodrigo Gomez
UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Maletin
A. Smirnov
L. Andreev
M. Chekmarev
N. Kuznetzov

408

MONETARY AND FINANCIAL CONFERENCE

NORWAY
Ole Colbjornsen
Arne Skaug
K aare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Juvenal Monge
Emilio G. Barreto
PH IL IP P IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
Zygmunt Karpinski
S. Kirkor
M. Heilperin
W. Malinowski

UNITED KINGDOM
D. H. Robertson
G. L. F. Bolton
H. E. Brooks
U NITED STATES OF AMEI
E. E. Brown
M. S. Eccles
J. P. Wolcott
E. M. Bernstein
J. W. Angell
W. Gardner
A. H. Hansen
E. G. Collado
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
Rodolfo Rojas
J. J. Gonzales Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n I

Committee 3
Chairman—Arthur de Souza Costa (Brazil)
Reporting Delegate—Erwin Hexner (Czechoslovakia)
Secretary—Malcolm Bryan
Assistant Secretary—J. H. Bitterman
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rth u r H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation
BRAZIL
Valentim Boucas
CANADA
J. J. Deutsch
J. A. Blanchette
D. C. Abbott
CHILE
A rturo Maschke
CHINA
Te-Mou Hsi
COLOMBIA
No designation

EL SALVADOR
A gustin Alfaro Moran
Victor Manuel Valdes
Raul Gamero
ETH IO PIA
George A. Blowers
FRENCH DELEGATION
J. de Largentaye
R. Aglion
GREECE
Alexander Argyropoulos
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
M. Sigurdsson

P R O C E E D I N G S AND D O C U M E N T S

COSTA RICA
No designation
CUBA
Luis Machado
J. M. Menocal
Miguel Pirez
CZECHOSLOVAKIA
Ervin Hexner
Josef Hanc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. Duran Ballen
E. F. Carbo
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

409

INDIA
Chintaman Deshmukh
Theodore Gregory
IRAN
A. A. D aftary
T. N assr
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LIBERIA
W alter F. W alker
LUXEMBOURG
Hugues Le Gallais
MEXICO
Antonio Espinosa de los
Monteros
Rodrigo Gomez

(P. 2.)
NETHERLANDS
J. W. Beyen
C.
H. Schoch
NEW ZEALAND
A. G. B. Fisher
E. C. Fussell
B. C. Ashwin
B. R. T urner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
Arne Skaug
Ole Colbjornsen
Kaare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Andres F. Dasso
P H IL IP PIN E COMMONWEALTH
Jaim e Hernandez
Ismael M athay
POLAND
Janusz Zoltowski
M. Heilperin

UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
Slobin
M. Idashkin
N. Cheklin
UNITED KINGDOM
Sir Eady
W. E. Beckett
G.
L. F. Bolton
R. T. G. Miles
UNITED STATES OF AMERICA
R. F. Wagner
C. W. Tobey
A. F. Luxford
B. Cohen
E.
M. Bernstein
0. Cox
URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
J. J. Gonzalez Gorrondona
M. Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

410

MONETARY AND FINANCIAL CONFERENCE
C o m m is s io n I

Committee 4
Chairman—Manuel B. Llosa, Peru
Reporting Delegate—Wilhelm Keilhau, Norway
Secretary—Colonel Charles M. Dyson
Assistant Secretary—Lauren Casaday
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Joseph Nisot
BOLIVA
No designation
BRAZIL
Octavio Bulhoes
CANADA
D. C. Abbott
A.
F. W. Plum ptre
J. A. Blanchette
CHILE
Fernando Mardones
CHINA
Victor Hoo
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Luis Machado
Miguel Pirez
J. M. Menocal
CZECHOSLOVAKIA
Josef Hanc
E rvin Hexner
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
Sixto E. Duran Ballen
Esteban F. Carbo
(P . 2 .)
LUXEMBOURG
Hugues Le Gallais
MEXICO
Victor L. Urquidi

EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETH IO PIA
B latta Ephrem T. Medhen
FREN CH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
A thanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Pierre Chauvet
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
Sir Chintaman D. Deshmukh
Sir Theodore E, Gregory
IRAN
A.
A. D aftary
T. N assr
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LIBERIA
William E. Dennis
POLAND
Leon Baranski
J. Zoltowski

P R O C E E D I N G S AND D O C U M E N T S

NETHERLANDS
A. H. Philipse
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fisher
B. R. Turner
NICARAGUA
Leon DeBayle
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
NORWAY
Wilhelm Keilhau
Ole Colbjornsen
Kaare Petersen
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Manuel B. Llosa
Juvenal Mo»ge
Emilio Barreto Latzeh
PH IL IPPIN E COMMONWEALTH
Jaime Ilerandez
Ismael M athay

UNION OF SOUTH AFRICA
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutiunian
F. Bystrov
N. Panchenko
UNITED KINGDOM
N. B. Ronald
W. E. Beckett
J. W. Russell
UNITED STATES OF AMERICA
D. Acheson
B. Spence
L. T. Crowley
0. Cox
L. S. Pasvolsky
R. B. Brenner
URUGUAY
Hugo Garcia
VENEZUELA
Rodolfo Rojas
Cristobal L. Mendoza
Alfonso Espinoza
Manuel Perez Guerrero
YUGOSLAVIA
Vladimir Rybar

C o m m is s io n II

Chairman—Lord Keynes (U. K.)
Vice Chairman—Luis Alamos Barros (Chile)
Reporting Delegate—Georges Theunis (Belgium)
Secretary—A. Upgren
Assistant Secretary—A. Smithies
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Camille Gutt
BOLIVIA
No designation
BRAZIL
No designation
CANADA
W. A. Mackintosh

411

DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. D uran Balien
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR *
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes

412

MONETARY AND FINANCIAL CONFERENCE

CHILE
Luis Alamos
German Riesco
A rturo Maschke
Fernando Mardones
CHINA
Yee-Chung Koo
COLOMBIA
Miguel Lopez Pumarejo
COSTA RICA
Francisco de P. Gutierrez Ross
Jose Rafael Oreamuno
CUBA
E.
I. Montoulieu
Oscar Garcia Montes
Ramiro Guerra
Miguel A. Pirez
Luis Machado
Juan M. Menocal
Eduardo D urruthy
CZECHOSLOVAKIA
Ladislav Feierabend
Antonin Basch
Josef Hanc
Ervin Hexner
Jan Mladek

ETH IO PIA
George A. Blowers
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
Robert Mosse
GREECE
Kyriakos Varvaressos
Athanase Sbarounis
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
Julian R. Caceres
ICELAND
Magnus Sigurdsson
INDIA
A. J. Raisman
Theodore Gregory
Shanmukham Chetty
Chintaman Deshmukh
A. D. Shroff
*

(P . 2 .)

IRAN
Taghi N assr
A. H. Ebtehaj
A. A. D aftary
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
James E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Daniel C.osio Villegas
NETHERLANDS
J. W. Beyen
D. Crena de Ic*igh
A. H. Philipse
A. Andriesse
A. Bestebreurtje

PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Andres F. Dasso
Juvenal Monge
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael M athay
POLAND
Ludwik Grosfeld
UNION OF SOUTH AFRICA
M. H. de Kock
J. E. Holloway
W. C. Naude

PROCEEDINGS AND DOCUMENTS
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. Turner
NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
Ole Colbjernsen
Wilhelm Keilhau
Arne Skaug

UNION OF SOVIET SOCIALIST
REPUBLICS
M. S. Stepanov
N. F. Chechulin
A. R. A rutiunian
F.
P. Bystrov
UNITED KINGDOM
R. H. Brand
Sir W. Eady
UNITED STATES OF AMERICA
D.
Acheson
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No delegation
YUGOSLAVIA
Vladimir Rybar
C o m m issio n II

Committee 1
Chairman—J. W. Beyen (Netherlands)
Reporting Delegate—Luis D. Tinoco Castro (Costa Rica)
Secretary—J. P. Young
Assistant Secretary—Janet Sundelson
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron Rene Boel
BOLIVIA
No designation
BRAZIL
Eugenio Gudin
CANADA
W. A. Mackintosh
W. A. Tucker
CHILE
Luis Alamos
CHINA
Te-Mou Hsi
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Ramiro Guerra
Garcia Montes
Eduardo D urruthy

413

EL SALVADOR
Agustin Alfaro Moran
Victor Manuel Valdes
Raul Gamero
ETHIOPIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
A. Istel
J. de Largentaye
R. Mosse
GREECE
K. Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
A. Asgeirsson
INDIA
A. J. Raisman
Theodore E. Gregory
Shanmukham Chetty
Chintaman Deshmukh
A. D. Shroff

414

MONETARY AND FINANCIAL CONFERENCE

CZECHOSLOVAKIA
Ervin Hexner
Ja n Mladek
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
James E. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
Daniel Cosio Villegas
Victor L. Urquidi

(P- 2 .)

NETHERLANDS
J. W. Boyen
A. H. Philipse
J. J. Polak
D. Crena de Iongh
A. Andriesse
NEW ZEALAND
W alter Nash
B. C. Ashwin
A. G. B. Fisher
E. C. Fussell
B. R. T urner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Pedro G. Beltran
Andres F. Dasso
Juvenal Monge
Emilio G. Barreto
PH IL IPP IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley

POLAND
Leon Baranski
Z. Karpinski
M. Heilperin
W. Malinowski
UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
A. Morozov”
E. Bystrov
P. Titov
UNITED KINGDOM
L. C. Robbins
A. W. Snelling
UNITED STATES OF AMERICA
Sen. C. W. Tobey
Mabel Newcomer
Sen. R. F. W agner
E. A. Goldenweiser
N. T. Ness
I. Lubin
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

PROCEEDINGS AND DOCUMENTS

415

C o m m issio n II

Committee 2
Chairman—Eduardo Montoulieu I. (Cuba)
Reporting Delegate—Frederick H. Wheeler (Australia)
Secretary—J. H. Bitterman
Assistant Secretary—Ruth Russell
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Georges Theunis
BOLIVIA
No designation
BRAZIL
Francisco Alves dos Santos
Filho
CANADA
L. Ilasminsky
Lionel Chevrier
CHILE
German Riesco
CHINA
Tsu-Yee Pei
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Garcia Montes
Eduardo D urruthy
Felipe Pazos
CZECHOSLOVAKIA
Jan Mladek
Antonin Basch
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
E. F. Carbo
S. E. Duran Ballen
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETHIOPIA
George A. Blowers
FRENCH DELEGATION
Andre Istel
Robert Mosse
Jean de Largentaye
GREECE
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Sveinbjorn Frimannsson
INDIA
A. J. Raisman
Theodore E. Gregory
Shanmukham Chetty
Chintaman Deshmukh
A. D. Shroff
IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
William E. Dennis
LUXEMBOURG
Hugues Le Gallais
MEXICO
Antonio Espinosa de los Monteros
Rodrigo Gomez

416

MONETARY AND FINANCIAL CONFERENCE

(P. 2 )
NETHERLANDS
D. Crena de Iongh
A. Andriesse
A. Bestebreurtje
NEW ZEALAND
E. C. Fussell
A. G. B. Fisher
B. C. Ashwin
B. R. T urner
NICARAGUA
Guillermo Sevilla Sacasa
Leon DeBayle
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Juvenal Monge
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Joseph H. Foley
POLAND
Leon Baranski
S. Kirkor

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
N. Chechulin
A. Smirnov
A. Borisov
Mrs. L. Gouseva
UNITED KINGDOM
R. H. Brand
Sir W. Eady
D. H. Robertson
G. L. F. Bolton
H. E. Brooks
U NITED STATES O F AMERICA
L. T. Crowley
E. E. Brown
M. S. Eccles
H. D. White
A. H. Hansen
W. Louchheim, Jr.
W. Pierson
E. M. Bernstein
A. F. Luxford
URUGUAY
Mario La Gamma Acevedo
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

C o m m issio n II

Committee 3
Chairman—Miguel Lopez Pumarejo (Colombia)
Reporting Delegate—M. H. de Kock (Union of South Africa)
Secretary—Mordecai Ezekiel
Assistant Secretary—Captain William L. Ullmann
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
B.
S. Chlepner
BOLIVIA
No designation
BRAZIL
Francisco Alves dos Santos
Filho

EL SALVADOR
Agustin A lfaro Moran
Victor Manuel Valdes
Raul Gamero
ETH IO PIA
George A. Blowers
FRENCH DELEGATION
J. de Largentaye
R. Aglion
GREECE
Alexander Argyropoulos
Kyriakos Varvaressos

PROCEEDINGS AND DOCUMENTS
CANADA
J. J. Deutsch
CHILE
A rturo Maschke
CHINA
Ts-Liang Soong
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Miguel Pirez
Luis Machado
Juan Menocal
CZECHOSLOVAKIA
Antonin Basch
Ernest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
S. E. Duran Ballon
E.
F. Carbo
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
(P. 2 )
NETHERLANDS
el. W. Beyen
H.
Riemens
NEW ZEALAND
A. G. B. Fisher
E. C. Fussell
C. B. Ashwin
B. R. T urner
NICARAGUA
Leon DeBayle
Guillermo Sevilla Sacasa
J. Jesus Sanchez Roig
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Alberto Alvarez Calderon
Juan Chavez

417

GUATEMALA
Manuel Noriega Morales
HAITI
Andre Liautaud
HONDURAS
No designation
ICELAND
M. Sigurdsson
INDIA
Chintaman Deshmukh
Theodore Gregory
IRAN
No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C.
E. Loombe
LIBERIA
W alter E. Walker
I/UXEMBOURG
Hugues Le Gallais
MEXICO
Antonio Espinosa de los Monteros
Rodrigo Gomez

UNION OF SOUTH AFRICA
No designation
UNION OF SOVIET SOCIALIST
REPUBLICS
T Slobin
.
M. Idashkin
N. Cheklin
UNITED KINGDOM
Sir W. Eady
W. E. Beckett
G. L. F. Bolton
R. T. G. Miles
UNITED STATES OF AMERICA
Rep. J. P. Wolcott
Rep. B. Spence
Judge F. M. Vinson
B.
Cohen
G. Luthringer
A. F. Luxford
URUGUAY
Hugo Garcia
VENEZUELA
No designation

418

MONETARY AND FINANCIAL CONFERENCE

P H IL IP P IN E COMMONWEALTH
YUGOSLAVIA
Jaime Hernandez
Vladimir Rybar
Ismael Mathay
POLAND
Janusz Zoltowski
M. Heilperin
C o m m issio n II

Committee 4
Chairman—Sir Chintaman D. Deshmukh (India)
Reporting Delegate—Leon Baranski (Poland)
Secretary—Henry Edmiston
Assistant Secretary—Colonel Charles M. Dyson
AUSTRALIA
Leslie G. Melville
Jam es B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Joseph Nisot
BOLIVIA
No designation
BRAZIL
Valentim Bougas
CANADA
A. F. W. Plum ptre
CHILE
Fernando Mardones
CHINA
Kuo-Ching Li
COLOMBIA
No designation
COSTA RICA
No designation
CUBA
Juan M. Menocal
Miguel Pirez
Luis Machado
CZECHOSLOVAKIA
Josef Hanc
E rnest Sturc
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez
ECUADOR
Sixto E. Duran Ballen
Esteban F. Carbo
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim

FRENCH DELEGATION
Raoul Aglion
Jean de Largentaye
GREECE
Athanase Sbarounis
Kyriakos Varvaressos
GUATEMALA
Manuel Noriega Morales
H A ITI
Andre Liautaud
HONDURAS
No designation
ICELAND
Magnus Sigurdsson
INDIA
Chintaman Deshmukh
Theodore E. Gregory
IRAN
•No designation
IRAQ
Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
C. E. Loombe
LIBERIA
Jam es F. Cooper
LUXEMBOURG
Hugues Le Gallais
MEXICO
Victor L. Urquidi
N ETHERLANDS
C. H. Schoch
A. Broches
NEW ZEALAND
B. C. Ashwin
E. C. Fussell
A. G. B. Fisher
B. R, Turner

PROCEEDINGS AND DOCUMENTS
EL SALVADOR
Agustin Alfaro Moran
Raul Gamero
Victor Manuel Valdes
ETHIO PIA
B latta Ephrem T. Medhen
(P -2)
NORWAY
No designation
PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
No designation
PERU
Manuel B. Llosa
Alberto Alvarez Calderon
P H IL IPPIN E COMMONWEALTH
Jaime Hernandez
Ismael M athay
POLAND
Stanislaw Kirkor
Z. Karpinski
W. Malinowski
UNION OF SOUTH AFRICA
No designation

NICARAGUA
J. Jesus Sanchez Roig
Leon DeBayle
Guillermo Sevilla Sacasa

UNION OF SOVIET SOCIALIST
REPUBLICS
A. A rutiunian
UNITED KINGDOM
N. B. Ronald
W. E. Beckett
J. W. Russell
UNITED STATES OF AMERICA
Rep. B. Spence
D. Acheson
0. Cox
E. Arnold
E.
G. Collado
URUGUAY
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rvbar

C o m m is s io n I I I

Chairman—Eduardo Suarez (Mexico)
Vice Chairman—Mahmoud Saleh El Falaky (Egypt)
Reporting Delegate—A. G. B. Fisher (New Zealand)
Secretary—Orvis Schmidt
AUSTRALIA
Leslie G. Melville
James B. Brigden
Frederick H. Wheeler
A rthur H. Tange
BELGIUM
Baron de Gruben
BOLIVIA
No designation
BRAZIL
Valentim Bougas
Eugenio Gudin
Octavio Bulhoes
CANADA
W. A. Mackintosh
L. Rasminsky
A. F. W. Plum ptre
J. J. Deutsch

419

ECUADOR
No designation
EGYPT
Sanny Lackany Bey
Mahmoud Saleh El Falaky
Ahmed Selim
EL SALVADOR
No designation
ETHIOPIA
B latta Ephrem T. Medhen
FRENCH DELEGATION
Andre Istel
Raoul Aglion
Jean de Largentaye
GREECE
Kyriakos Varvaressos
Alexander Argyropoulos
Athanase Sbarounis

420

MONETARY AND FINANCIAL CONFERENCE

CHILE
Luis Alamos
German Riesco
A rturo Maschke
Fernando Mardones
CHINA
Kuo-Ching Li
COLOMBIA
Sr. Victor Dugand
COSTA RICA
Fernando Madrigal
J. Rafael Oreamuno
CUBA
E.
I. Montoulieu
Oscar Garcia Montes
Ju an Menocal
Luis Machado
CZECHOSLOVAKIA
Ladislav Feierabend
Ervin Hexner
Antonin Basch
Josef Hanc
Jan Mladek
DOMINICAN REPUBLIC
Anselmo Copello
J. R. Rodriguez

GUATEMALA
Manuel Noriega Morales
H A ITI
Andre Liautaud
Pierre Chauvet
HONDURAS
Julian R. Caceres
ICELAND
Asgeir Asgeirsson
INDIA
A. J. Raisman
Theodore E. Gregory
Shanmukham Chetty
Chintaman Desmukh
A. D. Shroff
IRAN
A. A. D aftary
Hosein Navab
IRAQ
Senator Ibrahim Kamal
L. M. Swan
Ibrahim Al-Kabir
Claude E. Loombe

(P. 2)
LIBERIA
W alter F. W alker
LUXEMBOURG
Hugues Le Gallais
MEXICO
Eduardo Suarez
Rodrigo Gomez
Antonio Espinosa de los Monteros
Daniel Cosio Villegas
Victor L. Urquidi
NETHERLANDS
J. W. Beyen
D.
Crena de Iongh
NEW ZEALAND
W alter Nash
Bernard Carl Ashwin
Edward C. Fussell
Bruce R. Turner
NICARAGUA
J. Jesus Sanchez Roig
Guillermo Sevilla Sacasa
Leon DeBayle
NORWAY
No designation

Andres F. Dasso
Alberto Alvarez Calderon
Juvenal Monge
P H IL IP P IN E COMMONWEALTH
Andres Soriano
Jaim e Hernandez
Joseph H. Foley
Ismael M athay
POLAND
L. Grosfeld
Leon Baranski
UNION OF SOUTH AFRICA
S. F. N. Gie
J. E. Holloway
M. H. de Kock
W. C. Naude
UNION OF SOVIET SOCIALIST
REPUBLICS
I.
D. Slobin
M. M. Idashkin
UNITED KINGDOM
R. H. Brand
N. B. Ronald

P R O C E E D I N G S AND D O C U M E N T S

PANAMA
Guillermo Arango
Narciso E. Garay
PARAGUAY
Celso R. Velazquez
Nestor M. Campos Ros
PERU
Pedro G. Beltran

421

UNITED STATES OF AMERICA
Senator Robert F. W agner
URUGUAY
Mario La Gamma Acevedo
Hugo Garcia
VENEZUELA
No designation
YUGOSLAVIA
Vladimir Rybar

Document 249
C I/A H /R P 1

Report of Ad Hoc Committee of Commission I on Voting
Arrangements and Executive Directors.
The Committee met in room B at 4 p.m., July 8 and at 9 p.m.,
July 9 in room A; Dr. de Souza Costa presided at the sessions.
Representatives of Brazil, Belgium, Netherlands, Cuba, France,
the United Kingdom, the United States, the Union of Soviet
Socialist Republics, and Czechoslovakia were present at the
meetings.
The Committee considered at length the various points relating
to paragraph 2 of the “Final Alternative Submitted by Special
Sub-committee Appointed (by Committee 3, Commission I) to
Consider all Proposals Relative to the Executive Directors.” No
agreement being reached, the Committee was adjourned pending
the availability of further information regarding quotas.
7 /1 0 /4 4

Document 250
D P /1 3

United Kingdom Delegation Memorandum to
Commission I
The following proposed comprehensive text on the capacities
and immunities of the Fund is submitted with the following
objects in view:—
(a)
To facilitate discussion and ultimate drafting by gather
ing together related text now appearing on separate pages. It
is designed to replace the following documents: Doc. 32 p. 33

422

MO N ETA R Y AND F I N A N C I A L C O N F E R E N C E

Items 1, 2, 3*, Doc. 120 p. 41; Doc. 32 p. 43; Doc. 194 p. 43(e)
and to fill up the gap left by the note on Doc. 120 p. 41 which
simply refers to other matters to be specified later.
(b) To facilitate acceptance by expressing the principles as
shortly and simply as possible and to avoid technical words
having different meanings in different legislations. As stated in
paragraph 11 it is understood that each member of Fund will
translate these principles into suitable form to give effect to
them under its own law.
(c) To take account of the experience of the past in con
nexion with the League of Nations and the I.L.O. and the recent
agreements relating to UNRRA and the F.A.O. The different
functions with which various public international organisations
are entrusted render complete uniformity in this matter imprac
ticable and it is undesirable to create precedents by conferring
on any given international organisation privileges or immuni
ties which it does not really require for the proper fulfilment of
its functions. Nevertheless, subject to these limitations as much
uniformity is desirable as is practicable.
In order to fulfil the functions with which it is entrusted, the
following attributions, immunities and privileges shall be accorded
to the Fund in the territory of each member:—
1. The Fund shall be accorded the attributions of full juridical
personality and in particular:—
(a) the power to contract:
(b) the power to acquire and dispose of immovable and mov
able property:
(c) the power to institute legal proceedings.
(p. 2) 2. The Fund shall enjoy immunity from legal process
instituted against it except when it waives its immunity for the
purpose of any proceedings or by the terms of any contract.
3. Property and assets of the Fund shall be immune from any
form of attachment or seizure as the result of any juridical
process.
4. Property and assets of the Fund shall be immune from requi
sition, confiscation, expropriation or any other form of seizure by
executive action whether under legislation or otherwise.
5. The archives of the Fund shall be inviolable.
6. All Governors, Executive Directors, Officials and Employees
of the Fund shall be exempt from legal process with respect to
*It is understood th a t points (4) and (5) of Doc. 32 p. 33 will be included
in Article VII (M anagement).

P R O C E E D I N G S AND D O C U M E N T S

423

acts performed by them in their official capacity except when
the Fund waives this immunity.
7. The Governors, Executive Directors, Officials and Employees
of the Fund not being local nationals shall be granted the same
immunities from immigration restrictions, alien registration
requirements and national service obligations and the same facili
ties as regards exchange restrictions as are accorded to the
representatives, officials, and employees of comparable rank of
other members.
8. The official correspondence of the Fund shall be accorded the
same treatment as the official correspondence of other members.
9. The same treatment in respect of travelling facilities shall be
granted to the Governors, Executive Directors, Officials and
Employees of the Fund as is granted to representatives and officials
and employees of comparable rank of other members.
10. The following immunities shall be granted in the matter of
taxation:—
(a) No tax or duty of any kind shall be levied on the Fund in
the territory of any member; this provision does not apply
to indirect taxes or duties which may be regarded as a
charge for services rendered.
(b) No duties shall be levied on gold imported or exported by
the Fund or other goods so imported or exported for the
purpose of carrying on its activities including goods
required for the equipment of its offices.
(c) No tax shall be levied on salaries and emoluments paid by
the Fund to Executive Directors, Officials or Employees
of the Fund who are not local nationals.
(d) No taxation of any kind shall be levied on any obligation
or security issued by the Fund (including any dividend
or interest thereon) by whomsoever held—
(i) which discriminates against such obligation or secu
rity solely because of its origin ; or
(ii) which is applied solely on the basis of the place or
currency in which it is issued, made payable or paid
or solely on the basis of the location (p. 3) of any
office or place of business maintained by the Fund.
11. It is understood that the above provisions of this section are
expressed as principles and it is for each member to take such
action as is necessary in its own territory for the purpose of
expressing and making effective these principles in the terms of
its own law. Each member shall inform the Fund of the detailed
action which it has taken to grant the capacities, exemptions and
immunities provided for in this section.
749013— 48— 28

424

MONETARY AND FINANCIAL CONFERENCE
Document 251
D P /1 4
UNITED

N ATIONS

MONETARY

AND

FIN ANCIAL

CONFERENCE

Speech of Mr. A. D. Shroff, Delegate for India
Made Before Committee 1 of Commission I on July 6, 19
Supporting the Egyptian Amendment to Article I, “Purposes
and Policies of the Fund”
I am in entire accord with Alternative H moved by the delegate
for Egypt. In principle, it is the same as Alternative G which was
moved the other day by the Leader of my Delegation, though our
Alternative was more modestly worded. I am very sorry to say
that the manner in which the proposal of the India Delegation was
received by this Committee and the very casual fashion in which
it was disposed of have caused serious disappointment to this side
of the Committee. In general, two criticisms of the Indian proposal
were made on behalf of the U.S.A. and the U.K. Delegations. The
delegate from the U.S.A. raised the objection that if the foreign
credit balances accumulated during the war were to be given
multilateral convertibility through the Fund, they would unduly
overload the Fund. The United Kingdom delegate put forth the
view that this was a matter for bilateral arrangement between the
parties and interests concerned. I should like to make it very clear
that so far as India is concerned public opinion and feeling on this
question have not only been unanimous but extremely strong and
unless some method is devised to facilitate the solution of what is
an extremely important matter for us the ultimate attitude of
our country towards the International Monetary Fund which is
proposed to be established will be largely influenced by the decision
of the Conference on this question. What is our position? Under
the various provisions of the Joint Statement relating to foreign
exchange resources and reserves of member countries, it appears
that though we have four billion dollars worth of sterling balances,
we have practically no foreign exchange reserves. I would also
like the Committee to appreciate that what we visualise for the
future of our country is in full consonance with the primary
objectives of the International Monetary Fund, namely, the
expansion and balanced growth of international trade and the
attainment of a high level of employment and real income. I
have heard it said several times at these meetings, and it was
repeated this morning by the delegate from Brazil, that the
settlement of current balances in international trade was the

P R O C E E D I N G S AND D O C U M E N T S

425

main if not the only objective of establishing the International
Monetary Fund. Well, if that was so, why was the primary objec
tive of economic policy defined in the Purposes of the Fund as
the promotion and maintenance of a high level of employment
and real income? We felt enthusiastic about the proposals for
the International Monetary Fund as we hoped and believed that
through international co-operation we would be enabled to build
up our economy to a stage where (p. 2) we should make our
own contribution towards the strengthening of the resources of
the International Monetary Fund. During the war we have built
up, as I have said, large foreign exchange balances in London
and if we cannot make any use of them through the machinery
of the International Monetary Fund I cannot comprehend how a
country situated as we are can be enthusiastically interested in
the establishment and operation of such a Fund. I plead for some
constructive reply from the sponsors of the scheme that the
machinery will assist us in the solution of this problem. Here you
are creating an international monetary fund and you are entirely
ignoring the existence of huge foreign balances. Are you not
thereby creating at the same time a sort of rival to the Fund?
Mr. Chairman, I would like the Committee to bear with me for
a few moments for a reference on this point to what was stated
on the subject in the original United Kingdom proposals for an
international clearing union as also in what is known as the White
Proposals from the U. S. A. The delegate from Egypt has already
drawn the attention of this Committee to these original proposals.
I would particularly like to read paragraph 34 from the Keynes
Proposals.
Paragraph 34 reads as under:—
The position of abnormal balances in overseas ownership held
in various countries at the end of the war presents a problem
of considerable importance and special difficulty. A country
in which a large volume of such balances is held could not,
unless it is in a creditor position, afford the risk of having
to redeem them in bancor on a substantial scale, if this would
have the effect of depleting its bancor resources at the out
set. At the same time, it is very desirable that the countries
owning these balances should be able to regard them as liquid,
at any rate over and above the amounts which they can afford
to lock up under an agreed programme of funding or long
term expenditure. Perhaps there should be some special
over-riding provision for dealing with the transitional period
only by which, through the aid of the Clearing Union, such

426

MONETARY AND FINANCIAL CONFERENCE

balances would remain liquid and convertible into bancor by
the creditor country whilst there would be no corresponding
strain on the bancor resources of the debtor country, or at
any rate, the resulting strain would be spread over a period.
Dr. Goldenweiser, the delegate from the U.S.A., mentioned
that this item was excluded from the Joint State on the ground
that it would unduly overload the Fund. I presume that he said
this on the understanding that perhaps at the very outset of
the Fund the entire amount of these foreign credit balances would
be taken over by the Fund in one lump sum. This is
(p. 3) not
our case. We plead for the assistance of the Fund spread over a
period of years to secure multilateral convertibility of at least a
portion of our foreign balances. I say this because with the long
standing relationship between India and the United Kingdom
and the traditional commercial ties between the two countries, I
take it that a large portion of our sterling balances will ultimately
be utilised in obtaining capital goods from the United Kingdom.
I appreciate and very greatly sympathise with the difficulties of
the United Kingdom now and in the early post-war period owing
to the unfortunate loss of valuable foreign investments, and, due
to other difficulties, it is not likely that the United Kingdom will
be in a position to reach a stage of free convertibility for sterling
at an early date. On the other hand, our country is pulsating with
hopes and aspirations of large scale industrial development to
raise the standard of living of four hundred millions of our popu
lation. We cannot, therefore, be asked to wait indefinitely till the
United Kingdom has reached a stage when sterling would be
freely convertible into other currencies. We therefore want con
version at least of a portion of our balances into other foreign
currencies.

Document 255 (233)
C I/ 4 / R P 3

(CI/4/RP2)

Second Report of Committee 4 of Commission I
D r. W ilh e lm K e ilh a u , R ep o rter.

The second meeting of Committee 4 was held on July 5. The
Committee adopted the same rules of procedure as had already
been introduced for the other committees.
The Committee discussed the articles dealing with immunity and

P R O C E E D I N G S AND D O C U M E N T S

427

taxation exemption of the Fund, its Governors and staff. One of
the delegations suggested that the Governors and staff of the
Fund should enjoy “diplomatic status,” but it was pointed out
that if the Governors and functionaries of the Fund were given
diplomatic status, they would, in reality, be placed in a better
position than persons belonging to any country's diplomatic
service. The fact is that the diplomats and the diplomatic staffs
are responsible to their governments which have every power to
act against them if they commit any trespasses, whilst the Gover
nors and the staff of the Fund will be responsible to an international
body with no power of jurisdiction. The suggestion was withdrawn.
The discussions revealed that a number of complicated legal
questions were connected with the substance of Article IX, Sec
tion 7 (page 43a), and it was resolved to refer these questions
to a special subcommittee to be appointed by the Chair. As mem
bers of that subcommittee were chosen the delegates from Cuba,
Norway, Union of Soviet Socialist Republics, United Kingdom
and the United States of America, with the delegate of the United
States as Chairman. As members of the “asterisk” committee
were chosen the same delegates with the addition of the delegates
from China, Ecuador and Poland. The delegate from Cuba was
appointed Chairman of the asterisk committee. Consequently, these
two committees were able to join in a final meeting.
The work of the subcommittees as well as that of the whole
Committee encountered one difficulty of a particularly theoretical
character, as it proved to be rather difficult to find legal expres
sions which meant quite the same thing in the legal systems of the
Anglo-Saxon powers as they mean in the legal systems of most
other countries. Accordingly, the discussions, and, in particular,
those of the subcommittee on Article IX, Section 7, had to con
centrate on a number of legal points, but I daresay that we at
last succeeded in finding formulations which were deemed satis
factory by the representatives of all nations participating. The
final drafts of the two subcommittees were placed before the
fifth meeting of the Committee, held on Saturday, the 8th of July,
and adopted. At the end of that meeting the Committee had dealt
with all provisos contained in the material which, until then, had
been made available. The Committee has even done more. The fact
is that most questions concerning form and status of the Fund
will be identical with the same questions in relation to the Bank,
and I should think that the solutions found and elaborated by the
Committee for the Fund may be applied to the Bank with very
slight and unimportant alterations,

428

MONETARY AND FINANCIAL CONFERENCE

If I am not mistaken, I have to report only one disagreement
on substance. It refers to Article VIII, Section 1. The Australian
delegation will bring before the Commission Alternative B (Docu
ment 32, page 34), to the effect that “a member country may
withdraw from the (p. 2) Fund by giving notice in writing, and
the right of withdrawal shall not be prejudiced by membership
of the Fund being made a condition of membership of any other
international body.” The other delegates who partook in the dis
cussion, declared that the proposal could not be accepted, because
the Fund was not in a position to dictate to other international
bodies what policy such bodies might find it appropriate to adopt.
Against this observation, the Australian delegation remarked that
their proposal would act as a recommendation from the Fund
to other international bodies, and that it would be up to these
bodies to attach the right importance to such recommendation.
The Australian delegation firmly wished the inclusion of the
proviso because the whole system of the Fund was such that an
immediate and unconditional withdrawal was left as the only
means of securing the sovereignty rights of member countries
in case of serious conflicts with the Fund.
As the various proposals of Committee 4 have been distributed
to all members of Commission I, I do not find it appropriate in
this short report to comment upon them in any detail. I should
only like to draw the attention of the members to the nature of
the problem which we have tried to solve by the provisos in
Article XII, Section 1, (a), (b), and (c) (Document #198, to
substitute for Page 46a). This problem consisted in keeping dis
putes concerning the interpretation of the Agreement between
the Fund and any member country, within the setup of the
Fund itself, but, at the same time, to secure for the member in
question privileges of fair treatment. I think that members, when
they read our proposals, will acknowledge that we have succeeded
in finding a workable solution. If a conflict should end in the
withdrawal of the member country, or disputes between member
countries and the Fund should arise after its possible liquidation,
we have drafted rules of arbitration. We have found it necessary
that the Convention itself prescribe the composition of the tri
bunal of arbitration. We propose that each party should appoint
one member and that the umpire, unless the parties otherwise
agree, shall be appointed by the President of the Permanent Court
of International Justice.

P R O C E E D I N G S AND D O C U M E N T S

429

Document 256
C l 11/A /1

Additional page on Clll/A

Report submitted to Commission III by the Agenda
Committee Appointed to Receive and Consider Proposals
Submitted for Consideration in Commission III
(To be presented at meeting of Commission III, July 10)

11. Proposal for the use of a gold unit in keeping the books of
the Fund and the Bank, submitted by the Norwegian Delegation:
The United Nations Monetary and Financial Conference rec
ommends that the books of the International Monetary Fund and
the Bank for Reconstruction and Development shall be kept in
a special international bookkeeping monetary unit, called (say)
Demos, being defined as the equivalent of a certain gold weight.
The Conference has no objection to the earlier American proposal
to make that monetary unit equal in value to 137-1/7 grains of
fine gold, or the equivalent of 10 Dollars in the present gold value
of United States currency.
The Agenda Committee recommends that this proposal be re
ferred to Committee 3 on Recommendations on Economic and
Financial Policy, the Exchange of Information, and Other Means
of Financial Cooperation.

Document 264

DP/15

Statement by the Cuban Delegation on Article III,
Section 2 (c)
The Cuban Delegation has considered with the greatest care
the Australian and French Alternatives to Article III, Section
2 (c) of the Joint Statement, providing more flexibility to the
use by member countries of the Fund’s resources, in order to meet
the special needs of raw materials producing countries and of
devastated nations.
The Cuban Delegation is in sympathy with the objectives pur
sued by the Australian and French Delegations. Cuba is one of
the countries that may need to draw relatively larger quantities

430

MONETARY AND FINANCIAL CONFERENCE

of foreign exchange from the Fund if her foreign trade behaves
in the future with the same pattern as in the past. If the Cuban
Delegation considered that the Fund would be able to meet the
special needs of raw material producing countries, it would be
very eager to indorse this policy, because Cuba is vitally interested
in the stabilization of world markets.
But the Cuban Delegation fears that the Fund is not able to
meet this task. Examining the problem from the point of view
of its own particular case, it finds the Fund resources utterly
insufficient to fulfill its needs. If a drop in the sugar market prices,
similar to those which occurred in the ’20’s and ’30’s, should
recur, resulting in a reduction of 40 or 50% of Cuba’s foreign
trade, the facilities that we could obtain from the Fund, even
if we were able to use our entire quota, would be very far from
sufficient to avoid a downfall of the Cuban economy. In the ab
sence of an international price stabilization scheme, the Fund
resources seem to be utterly insufficient to compensate for the
fluctuations of international trade.
The Cuban Delegation fears that burdening the Fund with the
task of meeting the enormous needs of devastated countries for
reconstruction and the special requirements of raw materials ex
porting countries, might place an excessive strain on the Fund,
jeopardizing its specific purposes of monetary stabilization with
out accomplishing the foregoing objectives. To accomplish the
reconstruction task, the present Conference is contemplating the
establishment of an International Bank for Reconstruction and
Development. To stabilize the prices of staple commodities, in
ternational arrangements other than those under consideration
by this Conference, must be provided.
Therefore, the Cuban Delegation considers that the Fund re
sources must be administered carefully and conservatively in ac
cordance with the provisos of Alternative A, in order that it may
better accomplish its specific task of short range monetary stabili
zation. The financing of reconstruction must be left to the Inter
national Bank and price stabilization to another international
agency created for this purpose.
As price stabilization has not been contemplated in this Con
ference, the Cuban Delegation wants to state very clearly and
definitely that if prices of staple commodities are not stabilized
the purposes of monetary stabilization cannot be attained, and
henceforth deems it essential that an international conference
on commercial policy and commodity arrangements be convened.

P R O C E E D I N G S AND D O C U M E N T S

431

Document 265
DP/16

Proposal of the Bolivian Delegation to Commission III of
the United Nations Monetary and Financial Conference
W hereas the full and efficient development of all countries
is the prerequisite of an expanding economy;
W piereas a vastly increased purchasing power in the economic
areas over which the produce of the industrialized powers must
find its outlet is one of the fundamental elements of future pros
perity and well-being;
W hereas such an increased purchasing power can only be ob
tained if the raw materials of countries importing finished prod
ucts can be sold abroad under conditions and at prices capable
of maintaining a high level of domestic productivity;
W hereas the success and stability of such international mech
anisms of economic cooperation, such as the Monetary Fund, will
be further insured if supported by policies of international co
operation in other fields of economic activity;
Be i t Resolved that the United Nations Monetary and Finan
cial Conference recommends the adoption by its members of the
following principles in their international trade policies:—
1.—Whenever contracts have been entered into covering the
purchase and delivery of certain materials supporting the economy
of the supplying country, the expiration of said contracts should
be a matter of mutual concern, and policies should be devised to
arrange for the orderly and gradual termination of those contracts
in a manner designed to avoid serious disruptions in the economy
of the supplying country;
2.—The development and use of synthetic products and of sub
stitute materials should not be encouraged by the granting of
subsidies, or of any other protective fiscal policy such as high
import ,duties, et cetera. However, if materials of this type have
already been developed and are in use, all conditions being equal,
the natural product should always be preferred;
3.—Cooperation in the organization and implementation of In
ternational Commodity Agreements designed to maintain fair
and stable prices, and provision for the orderly distribution of
raw materials throughout the world, whether or not a member
country is a party to any such Agreement;
4.—Abstention from—except under abnormal political, social or

432

MONETARY AND FINANCIAL CONFERENCE

economic circumstances—any form of trade barriers or discrim
inatory practices, such as import or export quotas, high tariffs,
subsidies, et cetera.

Document 266

(p .

39b)

SA/1/47

A l te r n a t iv e

(Suggested as substitute for Article IX, Section 2, paragraph (b) p. 39)

Each member undertakes, through appropriate measures
authorized under this Agreement, not to permit within its juris
diction an appreciation or depreciation of the exchange value of
its own currency in terms of gold beyond the range prescribed
under (a) above. It is understood, however, that this provision
does not affect bonuses paid by a producing country to promote
gold production within its territory, or taxes collected on domestic
gold production or domestic gold transactions. A member whose
monetary authorities in fact freely buy and sell gold within the
prescribed range, to settle international transactions, shall be
deem ed to be fu lfillin g this u n d erta k in g .
7 /1 0 /4 4

J.S. Art. IX
Section 2

Document 267

Cl/M/3

Minutes of Third Meeting of Commission I
International Monetary Fund

(July 10, 1944, 11:30 a.m.)

The Chairman announced that the reports of the four Com
mittees were now before the Commission (Documents Nos. 233,
234, 238, and 239) and that it would be necessary for the ad hoc
committees and drafting committees of Commission I to finish their
work by Wednesday night so that they could report to the next
meeting to be held on Thursday. The Commission authorized the
Chairman to appoint a drafting committee to deal with all items

P R O C E E D I N G S AND D O C U M E N T S

433

previously agreed upon in the Committees (listed in column 1
of Document #240, “Status of Committee Assignments”) . The mem
bership of the drafting committee is announced in the Journal for
July 11. The items in columns 2 and 4 of Document #240 are to be
reported to Commission I on Thursday.
The Commission then proceeded to discussion of the items in
column 3 of Document #240 which had been referred by the Com
mittees to the Commission for decision.
With regard to Alternatives G, H, and K to article I (pp. lc, Id,
l g ) , the Delegate from India urged the adoption of Alternative K.
Members of the United States, United Kingdom, and French Dele
gations expressed the view that the proposal was not appropriate
for the operations of the Fund. The Chairman found the consensus
to be that Alternatives G, H, and K were not accepted by Com
mission I.
The Commission next considered article II, Alternatives B
(p. 2a) and C and D (p. 4a). Since the ad hoc Committee on
Special Problems of Liberated Countries was currently considering
these items, they were left for later report.
Article IX, section 4 (p. 40), was referred to an ad hoc commit
tee of Commission I to include representatives of Committees 1
and 2.
After a brief exposition by the Reporter of Committee 2, article
IV, section 5, Uniform Changes in Par Values (pp. 18, 18a, and
18b), was referred to a special ad hoc committee to be appointed
by the Chairman and to include representation of Committees 2
and 3.
Alternatives C and D to article III, section 11, on Furnishing
Information (pp. 14c, 14d, 14e) were referred to an ad hoc sub
committee of Committee 3 for reconciliation. (Subsequently it was
agreed that the ad hoc committee should report directly to the
Commission.)
(p. 2) After discussion of article VII, as amended by Docu
ment #212, most of which had already been accepted by Committee
3, section 3 of Document #212 (Amendment to Article VII) was
accepted by the Commission in the sense that alternate directors
are to be appointed by their principals.
The question of depositories, article VII, section 6(b) (pp. 29,
29a, 29b), was then discussed and referred to an ad hoc committee
to report back to Commission I.

434

MONETARY AND FINANCIAL CONFERENCE
Document 268

(p. 48)

J OU R N A L
UNI TE D

NATI ONS

No. n

MONE T ARY AND

FI NANCI AL

CONFERENCE

Bretton Woods, New Hampshire

ORDER

THE

July 11,1944

DAY

Meetings for Tuesday, July 11

10 a.m.
a.m.
a.m.
p.m.
p.m.
6 p.m.

10:30
11:30
2:30
4

Committee 3 of Commission I ............................ The Hemicycle
A d Hoc Committee on Liberated Countries.. Room A
D rafting Committee of Commission I ............. Room B
Committee 2 of Commission I ............................ The Hemicycle
Commission I I ........................................................ Auditorium
A d Hoc Committee on Relations With NonMember Countries......................................... Room B

(p. 49)
R e s u m e s o f C o m m is s io n M e e t i n g s

Commission I
International Monetary Fund
(July 10, 11:30 a.m.)

At the opening of the third meeting of Commission I on July
10 at 11:30 a.m., the Chairman stated that all the Committees of
Commission I should finish their work by Wednesday night in
order to be able to report to the Commission on Thursday. The
Chairman was authorized to appoint a drafting committee of
Commission I to deal with agreed items listed in column 1, Docu
ment 240. Items in columns 2 and 4 will be reported to the Com
mission on Thursday.
Alternatives G, H, and K, article I (pp. lc, Id, lg ), were
rejected by the Commission.
Alternative B (p. 2a) and Alternatives B and C (p. 4a) to article
11 were referred back to the ad hoc committee of Commission I.
The Chairman was authorized to appoint an ad hoc committee
of Commission I to consider section 4 of article IX (p. 40).
Article IV, section 5 (pp. 18, 18a, 18b), was referred to an ad
hoc committee of Commission I.
Alternatives C and D to article III, section 11 (pp. 14c, 14d,
14e), were then discussed and referred to an ad hoc subcommittee
of Committee 3 for reconciliation. (Subsequently it was agreed
that the ad hoc committee should report directly to the Com
mission.)

P R O C E E D I N G S AND D O C U M E N T S

435

After consideration of section 3 of Document 212 amending
article VII, the Commission accepted the proposal that alternate
executive directors are to be appointed by their principals.
Article VII, section 6b (pp. 29, 29a, 29b), was referred to an
ad hoc committee to report back to Commission I.
(The minutes of this meeting are being distributed separately
as document No. 267.)
(P. 50)

Commission III
Other Measures for International Monetary and
Financial Cooperation
{July 10, 5 p.m .)

At a meeting held at 5 p.m. on July 10 Commission III received
the report of its Agenda Committee.
In accordance with the recommendation of the Agenda Com
mittee, the Commission appointed three ad hoc committees to
consider the proposals received and to make recommendations to
the full Commission with respect to the following general fields:
(1) The Use of Silver for International Monetary Purposes
(2) Enemy Assets, Looted Property, and Related Matters
(3) Recommendations on Economic and Financial Policy, the
Exchange of Information, and Other Means of Financial
Cooperation
(The minutes of this meeting are being distributed separately
as document no. 279.)
(P. 51)
C o r r ig e n d a
of

and

R e se r v a t io n s

C o m m it t e e s

to t h e

M in u t e s

C o m m is s io n I

(1) By the United Kingdom Delegation:
“The U.K. Delegation present their compliments to the
Secretary-General and have the honour to point out that no
reference was made in C.I.3, Status of Commission I’s Com
mittee Assignments, or in C.I/4/R.P.2, Second Report of
Committee 4 to the fact that the U.K. Delegation had felt
it necessary to reserve their views in regard to the draft of
Article IX.7. (a) and (c) as submitted to Commission I,
relating to the immunities to be conferred on the Fund. There
was no convenient opportunity to draw attention to this
point orally at this morning’s meeting of Commission I. If

436

MONETARY AND FINANCIAL CONFERENCE

necessary it can be raised at the next meeting of the
Commission.
“10th July 1944."
(2) By the Peruvian Delegation:
“10th July 1944.”
“The Peruvian Delegation makes the following statement
to the Conference through the Office of the Secretary General
with regard to certain provisions of existing Peruvian
legislation:
‘“ Peruvian Law No. 7526 of 18th May 1932, which
suspended the free conversion of the currency into gold,
provided that the gold reserves existing at that time, viz:
16,338.71115 kilos of gold, valued by law at 38,784,832.53
Peruvian Soles, were to be earmarked and kept in custody
by the Central Reserve Bank, and were not to be used in
any way or manner, nor were to be encumbered, mortgaged
or given as a guarantee, nor were ever to become liable to
seizure or disposal in any contingency whatsoever. (“Oro
intangible” in the original Spanish wording of that Law.)
Consequently, the gold thus set aside by Law 7526 cannot
be taken into account, either for the purpose of estimating
Peru’s quota and its proportion to be paid in gold, or for
use in any of the operations of the Fund, or to cover any
eventual liability of Peru if it ceases to be a member or if
the Fund is liquidated.’
“The above would be a reservation, which the Peruvian
Delegation would feel bound to make, in due course, if the
provisions in the Draft Agreement of the Fund were to be
approved by the Conference as they stand at present.
“ Ju an Chavez, Delegate.”
(P. 5 2 )

(3) By the Australian Delegation:
“10th July, 1944.
“With reference to Alternative B (Document 32, page 34)
submitted by the Australian Delegation and relating to Article
VIII Section 1 — ‘Withdrawal’, I notice that the report on
‘Status of Committee Assignments — Commission I’ records
that the language of Alternative A was accepted by Com
mittee 4.
“I should like to advise you that the Australian Delegation
reserves its position with regard to Alternative A, and wishes

P R O C E E D I N G S AND D O C U M E N T S

437

to have the opportunity of discussing this section of Article
VIII in the full Commission.
“L. G. Melville
“Chairman—Australian Delegation.”
A ppo in tm en ts

C o m m ittees

C ommission I

Pursuant to the action of Commission I at its meeting on July
10, the Chairman of Commission I announces the appointment of
additional Committees of that Commission as follows:
Drafting Committee of Commission I
Canada, Chairman
China
French Delegation
Mexico
Netherlands

Union of Soviet Socialist Republics
United Kingdom
United States
S ecr eta ry : Leroy D. Stinebower

Ad Hoc Committee of Commission I on Article IV,
Section 5 ( Uniform Changes in Par Value)
French Delegation, Chairman
Brazil
Canada
Czechoslovakia
Mexico

Union of South Africa
Union of Soviet Socialist Republics
United Kingdom
United States
S e cr eta ry: Karl Bopp

Ad Hoc Committee of Commission I on Article VII,
Section 6b (Depositories)
Peru, Chairman
Cuba
Czechoslovakia
French Declaration
Netherlands
Norway

Union of South Africa
Union of Soviet Socialist Republics
United Kingdom
United States
S ecreta ry: H. J. Bittermann

(P. 53)

Ad Hoc Committee of Commission I on Article IX,
Section 4 (Exchange Controls on Current Payments)
China, Chairman
Canada .
Costa Rica
French Delegation
Greece
Iran

New Zealand
Union of Soviet Socialist Republics
United Kingdom
United States
S ecreta ry: W. A. Brown, Jr.

N otice R egarding “ Order

of t h e

Da y ”

The Secretariat is arranging to have the Order of the Day for
the following morning and afternoon posted on the bulletin board
in the Lobby each evening as soon as possible. It is anticipated
that the notice can be posted usually at about 9 or 10 o’clock in
the evening.

438

MONETARY AND FINANCIAL CONFERENCE

(P- 54)
List o f Documents As o f J u l y 10, 1944
Subject.

Symbol

Doc.No.

Journal No. 10

J/10

244

Preliminary Draft for the Bank (Basic Document on the
Bank)

SA/3

245

Order of the Day, Juty 10

GD/28

246

Representation of Delegations on Commissions and Com
mittees (Corrected Re-run of Doc. 201(156))

GD/29

247

News Bulletin No. 10

248

Report of Ad Hoc Committee of Commission I on Voting
Arrangements and Executive Directors

C I/A H /R Pl

249

United Kingdom Delegation Memorandum to Commission I

DP/13

250

Speech by Mr. A. D.Shroff, Indian Delegation, in Support
of Egyptian Amendment to Article I, Purposes and
Policies of the Fund, Committee 1, Commission I, July 6

D P/14

251

Press Release No. 21, Norwegian Proposals

PR/21

252

Press Release No. 23, Bolivian Proposal

PR/23

254

Corrected Copy of Second Report of Committee 4, Com
mission I

C I/4/R P3
(CI/4/RP2)

255
(233)

Additional Page to Report Submitted to Commission III by
Agenda Committee

C III/A /1

256

Press Release No. 22, Statement of United States Delegation
to Commission I

PR/22

257

Press Release No. 24, Statement by Lord Keynes to Com
mission I

PR/24

258

Press Release No. 25, Statement by Mr. Shroff to Com
mission I

PR/25

259

Press Release No. 26, Statement by Mr. Istel to Commis
sion I

PR/26

260

Press Release No. 27, Norwegian Proposal to Commission
III, July 10

PR/27

262

News Bulletin No. 11

263

P R O C E E D I N G S AND D O C U M E N T S

439

Symbol

Subject

Doc.No.

(P- 55)
Statement by Cuban Delegation on Article III, Sec. 2(c)

DP/15

264

Proposal of Bolivian Delegation to Commission III

DP/16

265

Additional Page to SA/1 (p. 39b)

SA/1/47

266

Document 272
(,p.

15 f)

SA/3/1

A r t ic le III (4)

Alternative J*
P art ( l )

It is proposed that the following subdivision be added to Alter
native A :
(6)
In case of loans to be guaranteed by the Bank the loan
agreement shall provide
(a) if the loan is made through the issuance of bonds:
(i) that a delay o f _______ days in the servicing of the loan
shall constitute a default;
(ii) that in case of default the Bank shall have the right to
offer to purchase from the bondholders upon the expiration
of sixty days from the date of the offer all outstanding
bonds at par and interest accrued up to the end of the
sixty days period;
(iii) that if the bank exercises this right it shall not be liable
with respect to interest accruing after the expiration of
the sixty days period;
(iiii) that the Bank shall have the right to limit the duration of
its offer to purchase the bonds to five (ten?) years and
that in such event the Bank’s liability with respect to both
principal and interest shall cease upon the expiration of
the offer;
(iiiii) that the Bank shall have the right to declare any bonds
* For Preliminary D raft of Proposals for the Establishment of a Bank for
Reconstruction and Development, to which this and following SA /3 alterna
tive texts refer, see Doc. 245, p . 365.— E d i t o r .
749013—48—29

440

MONETARY AND FINANCIAL CONFERENCE

which it has acquired pursuant to (ii), above, due and
payable forthwith.
(b) if the loan is not made through the issuance of bonds:
(will be inserted later)

P a rt (2 )

It is proposed that the following sentence be added to Alterna
tive B, Part (2):
Loans of the type specified in the preceding sentence shall
not, however, be made or guaranteed during the transition
period, nor shall their aggregate amount exceed 10% of the
paid in capital.
7 /1 1 /4 4

Art. Ill
Sec. 4
Alt. J

Document 273

(p. 20a)

SA /3/2

A r t ic le IV (2)

Alternative C

It is proposed that Alternative B be amended by inserting in
line 10, after the word “resources” the words:
over and above the currency and/or gold to be held available
pursuant to Article III, section 3, Alternative B.
7 /1 1 /4 4

Art. IV
Sec. 2
Alt. C

Document 274

(p. 22e)

sa /3 /3

A r t ic le IV (4)
Alternative E

It is proposed to substitute the following for the first 7 words
of Alternative A, Sub-division (a) ( i i ) :
(ii) an annual commission on the amount outstanding at the
beginning of each year at a r a te ...
7 /1 1 /4 4

Art. IV
Sec. 4
Alt. E

P R O C E E D I N G S AND D O C U M E N T S

441

Document 275

(p. 24a)

SA /3/4

A r t ic l e IV
Alternative C

It is .proposed to substitute the following for the first sentence
of Alternative A :
In guaranteeing a loan placed through the usual investment
channels, the Bank shall charge an annual commission on the
amount outstanding at the beginning of each year, at a rate fixed
at one percent in the first instance but alterable by the Bank
from time to time at its discretion for new guarantees in the
light of experience.
7/1 1 /4 4

Art. IV
Sec. 6
Alt. C

Document 276

(p. 25a)

sa /3 /5

A r t ic l e IV
Alternative B

It is proposed to substitute the following for the second sentence
of Alternative A :
When there is any interruption in the service of a loan guaran
teed by the Bank, it shall assume the service as long as it has not
exercised its right of purchase pursuant to article III, section 4
( 6).
Article III, section 4 (6) is contained in Alternative J, Part (1), page
15f of document #272.

N ote:

7 /1 1 /4 4

Art. IV
Sec. 7
Alt. B

Document 277

(p. 13a)

SA/1/48

C o m b in e d A l t e r n a t iv e s A a n d

Charges and Commissions
a.
Any member buying the currency of any other member
from the Fund in exchange for its own currency shall pay a service
charge of % of 1 per cent in addition to the parity price. The
S e c t io n 10.

442

MONETARY AND FINANCIAL CONFERENCE

Fund in its discretion may increase this service charge to not
more than 1 per cent or reduce it to not less than y% of 1 per cent.
b. The Fund may levy a reasonable handling charge on any
member buying gold from the Fund or selling gold to the Fund.
c. The Fund shall prescribe charges uniform among members
which shall be payable by any member on the amount of its cur
rency held by the Fund in excess of its quota and shall not be less
chan the following per cent per annum:
i. Amounts up to 25 per cent: no charge during the first 3
months; y% per cent per annum during the next nine months;
and thereafter an increase in the charge of V Per cent for
6
each subsequent year.
ii. Additional amounts: on each additional bracket of 25 per
cent an additional y^ per cent charge; and for each subse
quent year an increase of y% per cent in the charge levied on
that bracket.
d. Minimum charges as determined above shall not exceed 5
per cent; but the Fund may in its discretion levy higher charges
uniform among members. Whenever the charge applicable to any
particular average amount for any particular period has reached
the rate of 4 per cent per annum the Fund and the member shall
then consider means by which the Fund’s holdings of (p. 13b)
the currency can be reduced, and failing agreement the Fund may
impose such charges as it deems appropriate.
e. All charges and commissions shall be paid in gold. If, however,
the member’s holdings of gold and gold-convertible exchange are
less than one-half of its quota, it shall pay in gold that proportion
which such holdings bear to one-half of its quota, and shall pay
the balance in its own currency.
Alternative C
(Substitute for (d) in Combined Alternatives A&B)

d. These charges may be uniformly varied if three-fourths of
the member votes approve (and consequential amendments).
7/11/44

J.S. Art. Ill
Add. Sec.

Document 278

(P- 5 0 )

S A /l/4 9

Fixing Initial Par Values.
(a) Each member on whose behalf this Agreement is signed

S ec t io n 5.

P R O C E E D I N G S AND D O C U M E N T S

443

before January 1, 19__ , shall communicate to the Fund not later
than thirty days after the date on which this Agreement becomes
binding on that member, the par value for its currency based on
the de facto rates of exchange prevailing for its currency sixty
days prior to the date on which this Agreement first comes into
force. The par value so communicated shall be the par value of
the member's currency for the purposes of the Fund, unless the
member signifies within a period of ninety days from the date
on which this Agreement became binding on that member that it
regards such par value as unsatisfactory. In the case of a member
whose territory has been occupied by the enemy, this period of
ninety days may be extended by the Fund if the member so
requests.
(b) If the Fund is of opinion that the par value thus indicated
by the member cannot be sustained without recourse to the Fund
on a scale damaging to the Fund and to other members, it shall
so inform the member within [
] after receipt of the
communication from the member.
(c) When a member or the Fund signifies that the par value
of a currency communicated under (a) above is unsatisfactory,
the Fund and the member shall, during a period to be determined
by the Fund in the light of all relevant circumstances, agree upon
a suitable par value for that currency. If the Fund and the member
(p. 50a) do not agree within the period so determined, the mem
ber shall be deemed to have withdrawn from the Fund as of the
date of the termination of such period.
(d) A member communicating to the Fund a par value for the
currency of its metropolitan territory shall at the same time com
municate a value, in terms of that currency, for each separate
currency, where such exists, in the territories in respect of which
it accepted this Agreement under Section_____ From the values
so communicated, the Fund shall compute the par value of each
such separate currency. A member making a communication to
the Fund under (c) above shall be deemed, unless it declares other
wise to be making a corresponding communication regarding the
par values of such separate currencies. It shall, however, be open
to any member to make a communication relating to the metropoli
tan or any of these separate currencies alone and if the member
does so, the provisions of the preceding paragraphs shall apply
to each of these currencies separately.
(e) The Fund shall begin exchange transactions at such date
as it may determine after par values have been established for
the currencies of members having sixty percent of the aggregate

444

MONETARY AND FINANCIAL CONFERENCE

quotas set forth in Schedule A but in no event until after August
1,1945 or after the expiration of one hundred fifty days from the
date on which this Agreement first comes into force, whichever
is the later.
7/10/44

Art. XIII
Sec. 5

Document 279
Cl I l/M /2

Minutes of Meeting of Commission III
O t h e r M e a su r e s f o r I n t e r n a t io n a l M o n e t a r y
a n d F in a n c i a l C o o p e r a t io n
(J u ly 10, 19Uh, 5 p.m.)

The Chairman announced that Mahmoud Saleh El Falaky
(Egypt) is to serve as Vice Chairman of Commission III instead
of Sany Lackany Bey (Egypt).
The report of the Agenda Committee was presented to the
Commission. The Agenda Committee recommended the appoint
ment of three ad hoc committees to consider the proposals received
and to make recommendations to the full Commission with respect
to the following general fields:
1. The Use of Silver for International Monetary Purposes
2. Enemy Assets, Looted Property, and Related Matters
3. Recommendations on Economic and Financial Policy, the
Exchange of Information, and Other Means of Financial
Cooperation.
The proposals that had been received by the Agenda Committee
were read by the Reporter of the Agenda Committee and discussed
in the Commission. It was decided that the proposal concerning
a political prerequisite for the admission of Germany and Japan
to membership in the Fund or Bank (proposal No. 8 in the Report
of the Agenda Committee, Document 235) should not be given
further consideration by Commission III or its Committees.
In accordance with the recommendation of the Agenda Com
mittee, the Chairman of the Commission was empowered to appoint
three ad hoc committees. It was also agreed' that four additional
proposals, submitted by the Delegations of Bolivia, Chile, Cuba,

445

P R O C E E D I N G S AND D O C U M E N T S

and Brazil, respectively (each circulated as separate documents)
should be referred to Committee 3.
The Chairman appointed the following ad hoc committees:
C o m m itte e 1. The Use of Silver for International
Monetary Purposes
Peru, Chairm an
China, R eporter
Bolivia
Canada
Ethiopia
India

Mexico
Norway
Union of Soviet Socialist Republics
United Kingdom
United States

(p. 2)
2. Enemy Assets, Looted Property, and
Related Matters

C o m m it t e e

French Delegation, Chairm an
Poland
Norway, R eporter
Union of Socialist Republics
Belgium
United Kingdom
China
U ruguay
Dominican Republic
Yugoslavia
Netherlands
C o m m itte e 3. Recommendations on Economic and Financial

Policy, the Exchange of Information, and
Other Means of Financial Cooperation
Chile, C hairm an
Iraq, R eporter
A ustralia
Bolivia
Brazil
Cuba
Czechoslovakia
Ecuador
Egypt

El Salvador
Greece
Iceland
New Zealand
Nicaragua
Peru
Union of South Africa
United Kingdom
United States

It was suggested that the committees, in considering the various
proposals, bear in mind the general scope and nature of the
Conference.

Document 280
C l/ D C

Working Paper for Drafting Committee of Commission I

Text of Provisions Recommended by Committees
(Ju ly 10, 1944)

A rticle I. Purposes and Policies of the Fund

The purposes of the International Monetary Fund are:
1. To promote international monetary cooperation

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

446

Alt. I & J
(rejected by
Committee 1)

(P.

through a permanent institution which provides the
machinery for consultation on international monetary
problems.
2. To facilitate the expansion and balanced growth
of international trade, and to contribute thereby to
the promotion and maintenance of high levels of
employment and to the development of the sources of
productive power in all member countries as primary
objectives of economic policy. (Subject to revision)
3. To give confidence to member countries by making
the Fund’s resources available to them under adequate
safeguards, thus providing them with opportunity to
correct maladjustments in their balance of payments
without resorting to measures destructive of national
or international prosperity.
4. [Still in the Drafting Committee.']
5. To assist in the establishment of a multilateral
system of payments in respect of current transactions
between members and in the elimination of foreign
exchange restrictions which hamper the growth of
world trade.
6. In accordance with the above objectives, to
shorten the periods and lessen the degree of disequilib
rium in the international balances of payments of
member countries.

Alt. F
(Add. Mat.
not yet
considered by
Committee)

Alt. C
(p .2 b )
not yet
considered by
Committee 1

The Fund shall be guided in all its decisions by the
purposes set forth above.
Article II. Subscription to the Fund
S e c t i o n 1. Countries Eligible for Membership
At the outset the members of the Fund shall be those
of the countries represented at the United Nations
Monetary and Financial Conference whose govern
ments accept membership in the Fund. Subsequently
membership in the Fund shall be open to other
countries at such times and in accordance with such
terms as may be prescribed by the Fund.

P R O C E E D I N G S AND D O C U M E N T S

S ec t io n
x
Alt. B
(p . 2a) and
Alts. B & C
(p . 4a) pend
ing before
ad hoc
committee

447

2. Quotas

[Not yet taken up by the Committee.]
S e c t i o n 3. Time and Place of Payment
Each member shall provide the Fund at the appropriate
depository with the full amount of its quota on or
before the date fixed for exchange transactions in its
currency to begin. Any member whose quota is
increased shall provide the full amount of the increase
within thirty days of the date on which the member
approves the increase in its quota.
Adjustm ent of Quotas
The Fund shall at intervals of five years review and,
if it deems it appropriate, propose an adjustment of
the quotas of the members. It may also, if it thinks fit,
consider at any other time the adjustment of any
particular quota at the request of the member con
cerned. A four-fifths majority vote shall be required
for any change in quotas and no quota shall be changed
without the consent of the member concerned.
S e c t i o n 4.

(p. 3)
Alt. C
(p .2 b ) and
Alt. D
(p .4 b ) not
reached by
Committee 1

Initial Payments
Each member shall pay in gold as a minimum either
(a) twenty-five percent of its quota, or (b) ten percent
of its official holdings of gold and gold convertible
exchange,1 whichever is smaller, o n _______ In the
case of any member occupied by the enemy whose
holdings are not ascertainable as of_______, the Fund
shall fix an appropriate alternative date. The data
necessary to determine official holdings of gold and
gold convertible exchange shall be furnished by the
members as provided in this Agreement. Each member
shall pay the balance of its quota in its own currency.
S e c t i o n 6. Payments When Quotas are Changed.
(a) Each member whose quota is increased shall pay
twenty-five percent of the increase in gold. Each mem
ber shall pay the balance of any increase in its own
currency. If, however, on the date the member approves
an increase, its holdings of gold and gold-convertible
exchange are less than its new quota, the Fund may
reduce the portion of the increase to be paid in gold.
S e c t io n 5.

1 The phrase “gold and gold convertible exchange” is subject to definition
and to such change in terminology as may be agreed upon.

448

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

(P. 4 )

Alt.
Alt.
Alt.
Alt.

A
B
D
F

(p .
(p.
(p .
(p.

(P. 5)

Alt. E
(p .6 d )
still open

6a)
6b)
6c)
6e)

(b) Each member whose quota is reduced shall receive
from the Fund within thirty days of the reduction
an amount in its own currency or gold equal to the
reduction. In making this payment, the Fund shall
pay to such member only the amount of gold necessary
to prevent reducing the holdings of the Fund of that
currency below seventy-five percent of such new quota
of the member.
Article III. Transactions with the Fund
S e c t io n 1. Agencies Dealing w ith the Fund
Each member country shall deal with the Fund only
through its Treasury, Central Bank, Stabilization
Fund or other similar fiscal agency and the Fund shall
deal only w ith or through the same agencies.
S ection 2. Conditions wpon which any Member may
Purchase Currencies of other Members.
A member shall be entitled to buy the currency of
another member from the Fund in exchange for its
own currency subject to the following conditions:
(1) The member initiating the purchase represents
that the currency requested is presently needed for
making payments in that currency which are
consistent with the provisions of this Agreement;
(2) The Fund has not given notice under Article VI
that its holdings of the currency requested have
become scarce;
[ (3) Still in ad hoc committee.]
(4) The Fund has not previously declared under
Section 3 of this Article that the member initiat
ing the purchase is ineligible to use the resources
of the Fund.
The Fund may, in its discretion, and on terms which
safeguard its interests waive any of these conditions.
In special circumstances, where the Fund considers it
necessary, it may require collateral security as a con
dition of such waiver.
Section 2a. Conditions Governing Purchases for
Capital Transfers.
If the Fund’s holdings of the currency of a member have
remained below 75 percent of its quota for a period

PROCEEDINGS AND DOCUMENTS

449

not less than six months such member shall be entitled,
notwithstanding the provisions of Article V, Section
1, to buy the currency of another member from the
Fund for its own currency for any purpose, including
capital transfers, provided, however, that purchases
for capital transfers may not have the effect of raising
the Fund’s holdings of the currency of such member
above 75 percent of its quota, or reducing the Fund's
holdings of the currency purchased below 75 percent
of the quota of the member whose currency is purchased.
Declaring Members Ineligible to Use
the Resources of the Fund.
Whenever the Fund is of the opinion that any member
is using the resources of the Fund in a manner con
trary to the purposes and policies of the Fund, it shall
present to the member a report setting forth the views
S e c t io n 3.

(p. 6)
of the Fund and stating a suitable time for reply.
After presenting such a report to a member the Fund
may limit the use of its resources by the member. If
no reply to the report is received from the member
within the stated time, or the reply received is unsatis
factory, the Fund may continue to limit the member’s
use of the Fund’s resources or, after giving reasonable
notice to the member, declare it ineligible to use the
resources of the Fund.
Limitation on the operations of the Fund.
Except as otherwise provided in this Agreement,
operations for the account of the Fund shall be limited
to transactions for the purpose of supplying a member,
on the initiative of such member, with the currency of
another member in exchange for the currency of the
member initiating the transactions or for gold.

S e c t io n 4.

S e c t io n 5.

450

MONETARY AND FINANCIAL CONFERENCE

(p. 7)
other source either within or outside the territory
of the member, but no member shall be under any
obligation to make such loans to the Fund or to
approve the Fund’s borrowing its currency from
any other source.
(2) Buy that currency from that member with gold.
[S ection. 6. Multilateral International Clearing. Ac
tion not completed by Committee.]
S ection 7. Acquisition by Members of the currencies
of other Members for Gold.
Any member desiring to obtain, directly or indi
rectly, the currency of another member for gold shall,
provided that it can do so with equal advantage, acquire
the currency by the sale of gold to the Fund. Nothing
in this Section shall be deemed to preclude any member
from selling in any market the new production of gold
from mines located within territory subject to its
jurisdiction.

Other Acqtiisitions of Gold by the Fund.
Action not completed by Committee.]
S ection 9. Transferability and Guarantee of the
Assets of the Fund.
(a)
All assets of the Fund shall, to the extent
necessary to carry out the operations prescribed by
this Agreement, be free from restrictions, regulations
and controls of any nature imposed by members.
[(b) Still pending in committee.]
(c)
All assets of the Fund shall be guaranteed by
each member against loss resulting from failure or
default on the part of the depository designated by
such member.
[S e c t io n 8.

(p. 8)
Changes and Commissions.
Committee action not completed.]

[S e c t io n 10.

Furnishing Information.
Alternatives C and D before ad hoc Committee.]
[S e c t io n 12. Consideration of Representations of
the Fund.
Committee action not completed.]

[S e c t io n 11.

PROCEEDINGS AND DOCUMENTS

451

Article IV. Par Values of M ember Currencies

Section 1. Par Values of the Currencies of Members.
The par value of the currency of each member shall be expressed
in terms of gold, as a common denominator, or in terms of a goldconvertible currency unit of the weight and fineness in effect on
July 1, 19IfU. All computations relating to currencies of members
for the purpose of applying the provisions of this Agreement shall
be on the basis of their par values.
[S ection 2. Still before Committee.]
[S ection 3. Still before Committee.]
[S ection 4. Still before Committee.]
[S ection 5. Uniform Changes in Par Values.
Referred to ad hoc committee.]
(p. 9)
Section 6. Protection of the Assets of the Fund.
No change in the foreign exchange value of the currency of any
member shall alter the gold value of the assets of the Fund.
Whenever (i) the par value of a currency of a member is reduced,
or (ii) the foreign exchange value of the currency of any member
has depreciated within its jurisdiction to a significant extent in
the opinion of the Fund, the member shall compensate the Fund
by paying to the Fund within a reasonable time an amount of its
own currency equal to the reduction in the gold value of the
currency of such member held by the Fund. Whenever the par
value of the currency of any member has been increased the Fund
shall compensate such member by returning, within a reasonable
time, an amount in the currency of such member equal to the
increase in the gold value of the currency of such member held
by the Fund.
The provisions of this Section shall apply to the case in which a
uniform proportionate change is made in the par values of the
currencies of all members, unless at the time when such a change
is proposed to be made the Fund shall declare them to be
inapplicable.
Section 7. Separate currencies ivithin a Member's jurisdiction.
A member proposing a change in the par value of its currency
shall be deemed, unless it declares otherwise, to be proposing a
corresponding change in the par value of the currencies of all
territories under its jurisdiction. It shall, however, be open to a
member to declare that its proposal relates either to the metro
politan currency alone, or to one or more specified subordinate

452

MONETARY AND FINANCIAL CONFERENCE

currencies alone, or to the metropolitan currency and one or more
specified subordinate currencies.
Article V. Capital Transactions

Use of the Resources of the Fund for Transfers of
Capital.
A member may not make net use of the resources of the Fund
to meet a large or sustained outflow of capital, and the Fund may
(p. 10) request a member to exercise controls to prevent such
use of the resources of the Fund. If after receiving such requests,
a member fails to exercise appropriate controls the Fund may
declare such member ineligible to use the resources of the Fund.
This Section is not intended to prevent the use of the resources
of the Fund for capital transactions of reasonable amount required
for the expansion of exports or in the ordinary course of trade,
banking or other business. Capital movements which are met out
of a member’s own resources of gold and foreign exchange, are
not affected by this section, but members undertake that such
capital movements will be in accord with the purposes of the Fund.
S e c t io n 2. Limitation on Controls of Capital Movements.
Members may exercise such controls as are necessary tojegulate
international capital movements but no member may exercise
such controls in a manner which will restrict payments for current
transactions or which will unduly delay the transfer of funds in
settlement of commitments, except as provided in VI, 2 and in X.

S e c t i o n 1.

Article VI. Apportionm ent of Scarce Currencies

1. General Scarcity
If the Fund finds that a general scarcity of a particular currency
is developing, the Fund may so inform members and may issue a
report setting forth the causes of the scarcity and containing
recommendations designed to bring it to an end. In the preparation
of such report there shall participate a representative of the mem
ber the currency of which is involved.
S e c tio n

Scarcity of the Fund’s Holdings.
If it becomes evident to the Fund that the demand for a member’s
currency seriously threatens the Fund’s ability to supply that
currency, the Fund whether or not it has acted under (p. 11)
Section 1 above, shall formally declare such currency scarce and
shall thenceforth apportion the existing and accruing supply of
the scarce currency with due regard to the relative needs of
members and the general international economic situation and any
other pertinent considerations. The Fund shall also issue a report
concerning its action. The formal declaration shall operate as an
S e c t io n 2.

PROCEEDINGS AND DOCUMENTS

453

authorization to a member, after consultation between such mem
ber and the Fund, temporarily to limit the freedom of exchange
operations in the affected currency. Subject to the provisions of
Article IX, Section 2 (J.S.), the member shall have complete juris
diction in determining the nature of such limitations, but they
shall be no more restrictive than is necessary to limit the demand
for the scarce currency to the supply of it held by, or accruing to,
the member in question; and they shall be relaxed and removed as
rapidly as conditions permit. This authorization shall cease to be
in effect whenever the Fund formally declares the currency in
question no longer scarce.
Section 3. Administration of Restrictions on Scarce Currencies.
Any member imposing restrictions in respect of the currency of
f>ny other member pursuant to the provisions of this Article shall
give sympathetic consideration to any representations which may
be made by such other member regarding the administration of
such restrictions.
SECTION 4. Effect on Other International Agreements on Restric
tions on Scarce Currencies.
Members agree not to invoke the obligations of any engagements
entered into with other members prior to this Agreement in such
a manner as will prevent the operation of the provisions of this
Article.
(P. 12)

Article VII. Management of the Fund
Board of Governors.
(a) All powers of the Fund shall be vested in a Board of
Governors consisting of one governor and one alternate appointed
by each member in such manner as it may determine. Governors
and alternates shall serve for five years, subject to the pleasure of
their respective governments, and may be reappointed. No alter
nate may vote except in the absence of his governor. The Board
shall select a chairman from its members. The Managing Director,
however, may be eligible to this office as well.
(b) The Board of Governors may delegate to the Executive
Directors authority to exercise any powers of the Board, except:
(1) Determining what new members may be admitted and the
conditions of their admission;
(2) Approving a revision of quotas;
(3) Approving an agreed uniform change in the par value of
the currencies of all member countries;
(4) Requiring a member to withdraw;
S e c t i o n 1.

454

MONETARY AND FINANCIAL CONFERENCE

(5) Deciding appeals against interpretations of the Agreement
by the Executive Directors given on application by a
member country;
(6) Making agreements to cooperate with other international
organizations;
(7) Deciding to liquidate the Fund.
(8) Decisions concerning the distribution of the net income
of the Fund.
(c) The Board of Governors shall hold an annual meeting and
such other meetings as may be provided for by the Board or con
vened by the Executive Directors. Meetings of the Board shall be
convened by the Executive Directors whenever requested by
members having one quarter of the aggregate votes or by five
member countries.
(d) The Board may by regulation establish a procedure whereby
the Executive Directors, when they deem such action to be in
(p. 13) the best interests of the Fund, may obtain a vote of the
governors on a specific question in lieu of calling a meeting of the
Board.
(e) Governors and alternates shall serve as such without com
pensation from the Fund, but the Fund shall pay such reasonable
expenses as are incurred by the governors and alternates in attend
ing any meetings.
2. Executive Directors
Duties and Powers of the Executive Directors
1.
The Executive Directors shall be responsible for the conduct
of the general operations of the Fund, and for this purpose, shall
exercise all the powers delegated to them by the Board of
Governors.
[2. Formation of the Executive Directors—Pending before
ad hoc Committee.]
Alternate Directors
3. Every Executive Director may appoint an alternate with
full power to act for him when he is not present. When the Execu
tive Directors appointing them are present, alternates may par
ticipate in meetings but shall not vote.
S e c tio n

Meetings of Executive Directors
4. The Executive Directors shall function in continuous session
at the principal office of the Fund and shall meet as often as the
business of the Fund may require.
5. In order to constitute a quorum for any meeting of the
Executive Directors, there must be present a majority of the

PROCEEDINGS AND DOCUMENTS

455

Directors representing not less than one-half of the voting power
of all the Executive Directors.
(p. 14) 6. Each Executive Director appointed by one of the
members with th e _______ largest quotas shall be entitled to cast
the number of votes allotted under Section 3 of this Article (J.S.
VII, 2) to the member appointing him. Each elected Executive
Director shall be entitled to cast only the number of votes which
actually counted toward his election. When the provisions of the
second paragraph of Section 2 of this Article are applicable, the
votes to which an Executive Director would otherwise be entitled
shall be increased or decreased proportionately. Each Executive
Director shall cast all of the votes to which he is entitled as a
single unit.
6a. Except as otherwise specifically provided, all matters
before the Executive Directors shall be decided by a majority of
the aggregate votes cast.
7. The Board of Governors shall make regulations containing
provisions under which a member which is not entitled to appoint
an Executive Director under 2 above shall be permitted to send
a representative to attend any meeting of the Executive Directors
when a request made by, or a matter particularly affecting, that
member is under consideration.
Managing Director
8. The Executive Directors shall select a Managing Director
who shall not be a Governor or an Executive Director. The Manag
ing Director shall be Chairman of the Executive Directors, but
shall have no vote except a deciding vote in case of an equal divi
sion. He may participate in meetings of the Board of Governors,
but shall not vote at such meetings. He shall, however, (p. 15
be eligible for election as Chairman of the Board of Governors.
The Managing Director shall cease to hold office when the Execu
tive Directors shall so decide.
9. The Managing Director shall be chief of the operating staff
of the Fund and shall conduct under the direction of the Executive
Directors, the ordinary business of the Fund's work. Subject to
the general control of the Executive Directors, he shall be respon
sible for the internal organization of the Fund's staff and the
appointment and dismissal of its staff.
10. The Managing Director and the staff of the Fund, in the
discharge of their offices, owe their duty entirely to the Fund and
to no other authority.
Each member of the Fund shall respect the international
7 4 9 0 1 3 — 4 8 — 30

456

MONETARY AND FINANCIAL CONFERENCE

character of this duty and shall refrain from all attempts to
influence any member of the staff in the discharge of his duty.
11. In appointing the staff the Managing Director shall, subject
to the paramount importance of securing the highest standards of
efficiency and of technical competence, pay due regard to the
importance of selecting personnel recruited on as wide a geo
graphical basis as is possible.
Appointment of Committees
12. The Executive Directors may appoint such committees as
they deem advisable. Members of such committees need not be
limited to Governors or Executive Directors or their alternates.
Remuneration
13. The Board of Governors shall determine the remuneration
to be paid to the Executive Directors and the salary and terms of
the contract of service of the Managing Director.
(p. 16)
[Section 3. Voting
Before Committee or Commission—not completed.]
[S ection 4. The General Manager
Now included in Section 2.]
Section 5. Publication of Reports
The Fund shall publish an annual report containing an audited
statement of its accounts and shall issue at intervals of three
months or less, a summary statement of its transactions and its
holdings of gold and currencies of members.
The Fund may publish such other reports as it deems desirable
for carrying out its purposes and policies.
Section 6. Depositories.
(a)
Each member country shall designate its central bank as
a depository for all the Fund’s holdings of its currency or, if it
has no central bank, it shall designate such other institution as
may be acceptable to the Fund.
[ (b) Alternatives A, B and D referred to ad hoc committee.]
Section 7. Form of Holdings of Currency.
The Fund shall accept from any member in lieu of any part of
the currency of that country not needed by the Fund in its opera
tions, notes or similar obligations issued by the Government of
the country or the depository designated by such member, which
shall be non-negotiable, non-interest bearing and payable at their
par value on demand by a credit to the currency account of the
Fund in that country.

PROCEEDINGS AND DOCUMENTS

457

( p . 17)

Relationship to other International Organizations
The Fund, within the terms of this Agreement, shall cooperate
with any general international organization and with public inter
national organization having specialized responsibilities in related
fields. Any arrangements for such cooperation which would involve
a modification of any of the provisions of this Agreement may be
effected only after amendment to this Agreement in conformity
with the procedure set forth in Article_____
S e c t io n 8.

Location of Office
Still before Committee.]

LSec t io n 9.

Distribution of N et Income of the Fund
The Board of Governors shall determine annually what part of
its net income shall be placed to reserve and what part, if any
shall be distributed.
If any part is distributed, two per cent non-cumulative shall be
paid, as a first charge against the distribution of any year, to each
member on the average amount during the year by which 75 per
cent of its quota exceeds the holdings by the Fund of its currency;
and the balance to the members in proportion to their quotas.
Payments to each member shall be made in its own currency.

S ec t io n 10.

(P. 1 8 )

Miscellaneous Powers.
In order to carry out its purposes, the Fund shall have full
legal personality and, in particular, may:
(1) Make contracts;
(2) Acquire and dispose of movable and immovable property;
and:
(3) Institute legal proceedings in any court of competent
jurisdiction;
(4) Employ such staff as shall be necessary to conduct the
business of the Fund; and
(5) Adopt such rules or regulations as may be necessary or
appropriate to conduct the business of the Fund.

SECTION 11.

( P .19)

Article VIII. W ithdrawal from the Fund

1. Right of Members to Withdraw
Any member may withdraw from the Fund at any time by
serving written notice on the Fund at its principal office. Withdrawal shall become effective on the date such notice is received.
S ec t io n

458

MONETARY AND FINANCIAL CONFERENCE

[S ection 2. Suspension of Membership or Compulsory
Withdraival
Still in committee.]
[S ection 3. Settlement of Accounts with Countries Ceasing to
be Members.
Still in committee.]
[S ection 4. Liquidation of the Fund.
Still in committee.]
Article IX. Obligations of M ember Countries
[S ection 1. Purpose and Scope of additional Undertakings.
Consideration deferred.]
[S ection 2. Gold Purchases Based- on Parity Prices
In Drafting Committee.]
[S ection 3. Foreign Exchange De.alings Based on Par values.
In Drafting Committee.]
[S ection 4. Exchange Controls on Current Payments
Referred to ad hoc Committee.]
S ection 5. Immunities of the Fund.
(a) The Fund shall be immune from suit except when it con
sents to be sued.
(b) The Fund and its assets of whatsoever nature shall, where
soever located and by whomsoever held, be exempt and immune
from search, seizure, attachment, execution, requisition, confisca
tion^ moratorium and (p. 20) expropriation, whether under
judicial process or otherwise, in the territory of any member.
(c) All governors, executive directors, officers and employees
of the Fund shall, with respect to their official acts, be exempt from
suit except when the Fund consents.
(d) The archives of the Fund shall be inviolable.
N o t e: T h ere

are

c e r ta in

o th er

m in o r

p r iv ile g e s

a ls o b e r e q u ir e d s u c h a s c o u r ie r f a c ili t i e s . A

im m u n itie s

w h ic h

w ill

fu r t h e r d o c u m e n t w ill b e

is s u e d c o m p le tin g t h is s e c tio n in t h is r e s p e c t.

| Section 6. Im munity from Suit.
Now included in section 5 above.]
Section 7. Restrictions on Taxation of the Fund, its Employees,
and Obligations.
(a)
The Fund, its assets, property, income and its operations,
and transactions authorized by these articles of Agreement shall
be exempt and immune from all taxation and from all customs
duties. The Fund shall also be exempt and immune from liability
for the collection or payment of any tax or duty.

PROCEEDINGS AND DOCUMENTS

459

(b) No member, or any political subdivision or any taxing
authority thereof, shall impose or collect any tax on or measured
by salaries paid by the Fund to its executive directors, officials
and employees who are not citizens of such member.
(c) No member, or any political subdivision or taxing authority
thereof, shall impose or collect any taxation on any obligation or
security issued by the Fund, or any dividend or any interest
thereon, by whomsoever held or received:
(P .21)
(i) which discriminates against such obligation, dividend,
or interest, because of its origin; or
(ii) which is applied solely on the basis of the place or currency
in which it is issued, made payable or paid, or solely on
the basis of the location of any office or place of business
maintained by the Fund.
(d) Each member shall inform the Fund of the detailed action
it has taken to grant the exemptions and immunities provided for
in this section and in section 5 respectively. Differences which
may arise between such member and the Fund as to the sufficiency
or propriety of any action shall be resolved in accordance with the
provisions of Article XII, Section 1.
Article X.

Transitional Arrangements

[Not yet available.]
Article XI. Amendments

Any proposal to introduce modifications in the agreement,
whether emanating from the government of a member, a Governor
or an Executive Director, shall be communicated to the Chairman
of the Board of Governors who shall bring the proposal before
the Board. If the proposed amendment is approved by the Board
by a majority of the aggregate votes, the Fund shall, by circular
letter, ask the governments of all the members whether they accept
the proposed amendment. When three-fifths of the governments
of the members, having four-fifths of the aggregate votes, have
accepted the (p. 22) proposed amendment, the Fund shall cer
tify the fact by means of a proces verbal, which it shall communi
cate to the governments of all members.
However, the acceptance of the amendment by the governments
of all members is required in the case of modifications of (1) the
right to withdraw from the Fund; (2) the provision that no
change in a member’s quota shall be made without its consent;
(3) the provision that no change may be made in the par value
of a member’s currency except on the initiative of that member.

460

MONETARY AND FINANCIAL CONFERENCE

The amendment will enter into force for all members three
months after the date of the proces verbal unless a shorter period
is specified in the circular letter.
A rlicle XII. Interpretation of the Agreement

S ection 1. Interpretation
(a) All questions of interpretation of the provisions of this
agreement arising between any member and the Fund or between
any members of the Fund shall be submitted to the Executive
Directors of the Fund for their decision. If the question is one
which involves a dispute affecting particularly one (or more)
member (s) and that (or those) member (s) are not represented
among the Executive Directors by a Director appointed by it (or
them) then the provisions of Article VII, section 7, document 152,
apply.
(b) In any case where the Executive Directors have given a
decision under paragraph (a) above, any member may require
that the question be submitted to the Board, and the decision of
the Board shall be final, (p. 23) Pending the result of the
reference to the Board of Governors, the Fund may (so far as is
necessary) act on the basis of the decision of the Executive
Directors.
(c) Whenever a disagreement arises between the Fund and a
country which has ceased to be a member, or between the Fund
and any member country after liquidation of the Fund, such dis
agreement shall be submitted to arbitration by a tribunal of three
arbitrators, one appointed by the Fund, another by the country
involved and an umpire who, unless the parties otherwise agree,
shall be appointed by the President of the Permanent Court of
International Justice. The umpire shall have full power to settle
all questions of procedure in any case wT
here the parties are in
disagreement with respect thereto.
[Section 2. Definitions
Not yet available.]
Section 3. Effect on Other International Commitments.
Where under this Agreement a member is authorized in the
special or temporary circumstances specified in the Agreement
to maintain or establish restrictions on exchange transactions, and
there are other engagements between members entered into prior
to this Agreement which conflict with the application of such
restrictions, the parties to such engagements will consult with one
another with a view to making such mutually acceptable adjust

PROCEEDINGS AND DOCUMENTS

461

ments as may be necessary. The provisions of this Article shall
be without prejudice to the operation of Article VI, Section 4.
(p .24)
Article XIII. Final Provisions

[Not yet available.]
Article XIV. Execution of the Agreement

[Not yet available.]

Document 281
CI/2/MC

Memorandum to Committee 2
U se o f C u r r e n c ie s H e ld b y t h e F u n d

1. The Fund will be provided with resources of gold and cur
rencies subscribed by member countries. If the Fund is to be
most effective in contributing to the attainment of its important
purposes, all of the resources of the Fund must be made available
for use by the Fund in maintaining a high level of trade and the
beneficial flow of capital. The resources of the Fund should not be
diverted to building up idle balances of foreign exchange.
When international trade is customarily carried on in a few
currencies such as dollars and sterling, a considerable part of the
world’s trade not involving these countries will be carried on in
terms of their currencies. If imports from countries other than the
United States and the United Kingdom must be paid for in
dollars and sterling, the Fund will find its holdings of other cur
rencies of limited usefulness in settling international payments.
Clearly, the Fund must be in a position to dispose of its franc
balances in meeting payments due to France, its guilder balances
in meeting payments due to the Netherlands, etc. At the same time
the dollar and sterling balances should be available for use in
maintaining trade and other current transactions with the United
States and the United Kingdom.
2. There is no doubt that the provision can be made in the Fund
proposal to facilitate the use of all of the currencies in the Fund
in meeting balances of payments with the countries that have
subscribed these resources. Whatever provision is made must be
within the framework of (p. 2) the customary manner of
carrying on international trade. Above all, it must not prove
burdensome to the countries engaged in trade.

462

MONETARY AND FINANCIAL CONFERENCE

The problem can be more clearly indicated by a concrete illustra
tion: If Country A customarily carries on its international trade
in terms of dollars, then a favorable balance of payments for
Country A will be settled in dollars. The Fund should not be
required to finance this favorable balance of payments with its
resources of dollars. Instead, it should be possible for the Fund
to use directly or indirectly its holdings of currency A to finance
this favorable balance of payments with Country A.
The views expressed before this Committee indicate general
agreement with this principle. Some method must be found to
assure the use of the Fund’s holdings of currency. At the same
time, nothing must be done to discourage the continued use of
dollars, sterling and other currencies by foreign traders who find
the exchange markets and the availability of credit in such cur
rencies of great convenience in conducting their trade.
3. The provision proposed below will not be burdensome to a
country that customarily conducts its foreign trade in dollars or
other currencies. Consider the following cases in which Country
A carries on a considerable part of its foreign trade in dollars.
'
i.~ Country A~would be paid dollars for" exports to the" United
States. It would be free to use such dollars for its own imports
from the United States, to pay for its imports from other countries
payable in (p. 3) dollars, or to build up its holdings of dollars.
It is no burden to the Fund when a country decides to hold balances
in the currency of the country with whom its payments are favor
able. The holding of such balances does not directly deplete the
foreign exchange resources of other countries and there is no
reason why the Fund should discourage it.
ii. Country A might be paid dollars for its exports to countries
other than the United States. If the dollars so acquired are used
to make payments in the United States, the use of the dollars
avoids a drain on the Fund’s resources of dollars and is therefore
unobjectionable. If the dollars so acquired are used to make pay
ments in other countries, the use of the dollars avoids the use of
other resources of the Fund. Setting aside the ultimate disposition
of the dollars paid to other countries, the acquisition and use of
dollars in this manner by Country A should not concern the Fund.
iii. Country A might acquire dollars from countries other
than the United States and build up dollar balances. The favor
able balance of payments of Country A would then have drained
foreign exchange resources from other countries or from the Fund.
4. Some method should be found by which the Fund’s holdings

PROCEEDINGS AND DOCUMENTS

463

of currency A can be used to meet the favorable balance of pay
ments of Country A. Under the Fund proposal (III-7, Joint State
ment) Country A would be required to use half of the increment
of dollars to repurchase its (p. 4) currency from the Fund. If
this repurchase provision could be extended to cover the entire
increment of dollars resulting from Country A’s favorable balance
of payments in dollars with countries other than the United States,
the Fund would be able to make the fullest use of its holdings of
currency A.
It is suggested, therefore, that the following provision be
included in the Fund proposal:
“Where the international transactions of a country are carried
on in the currencies of other countries, the Fund may require that
the increments in its holdings of member currencies, to the extent
that such increments are attributable to transactions with other
countries, shall be offered to the Fund in the repurchase of its own
currency.”
Document 284

(p. 18c)

SA /1/50

A l t e r n a t iv e D
Changes in P a r V alues
(S e c tio n s

2, 3, 4 as in Alternatives A)

S e c t io n 5.

(a) The Fund shall concur in a proposed change under 4 (b)
or (c) above if it is satisfied that the change is necessary to
correct a fundamental disequilibrium. In particular, provided it
is so satisfied, it shall not object to a proposed change on the
ground of the domestic, social or political policies of the member
proposing the change.
(b) The Fund shall also concur in a proposed change under 4
(b) or (c) above if it is satisfied that such change will not affect
the international transactions of the member proposing the change.
(c) If the Fund is not satisfied in accordance with (a) or (b)
above, and deems the proposed change unjustified, having regard
to the proper working of the Fund, it shall object to the proposed
change; but in arriving at its decision it shall take into considera
tion the extreme uncertainties prevailing when the par values of
the currencies of members were initially determined.
S e c t i o n 6. (Section numbered 4c in Alternative A)
7/1 1 /4 4

J.S. Art. IV
Sec. 5

Document 285

T a b le

I i n E x p l a n a t i o n o f C o m b in e d A l t e r n a t i v e s A a n d B, A r t i c l e III, S e c t i o n 1 0 , p . 1 3 a (d o c . 2 7 7 )
SA /1/51

M arginal Charges
Amount of
country’s
currency held

Per cent per annum payable on excess currency during

st
Year

Vs*

3rd
Year

4th
Year

5th
Year

th
Year

7th
Year

th
Year

9th
Year

]0th
Year

2V2

sy2

126— 150

2l
A

151—175

3'A

176—200

23^

3^2

4^2

4K
>
... .
5

201—225

23^

226—250

zv>.

!....

Additional
amounts

Corresponding increases
up to 5%

i N o paym ent in first three months;
in next nine.
* At this point the Fund and the member shall consider ways and means by which the Fund’s holdings of the member’s currency can be reduced.
N o te:
N o charge is made on use of the Fund resources in an amount equivalent to a member’s gold subscription.

7 /1 1 /4 4

CONFERENCE

FINANCIAL

101— 125

nd
Year

AND

percentage of
country’s quota

MONETARY

MINIMUM PERCEN TA G E CHARGES PAYABLE BY A COUNTRY ON F U N D ’S HOLDINGS OF IT S CURRENCY IN
EXCESS OF ITS QUOTA

T a b le

II i n E x p l a n a t i o n o f C o m b in e d A l t e r n a t i v e s A a n d B, A r t i c l e III, S e c t i o n 10, p . 1 3 a (doc. 277)
S A /l/5 1

MINIMUM PERC EN TA G E CHARGES PAYABLE BY A COUNTRY ON FU N D ’S HOLDINGS OP ITS CURRENCY IN
EXCESS OF ITS QUOTA
its currency have reached 100% of its quota)
Amount of
country’s
currency held
percentage of
country's quota

Per cent per annum payable on excess currency during

st
Year

9th
Year

th
Year

oth
Year

th
Year

7th
Year

th
Year

214

43/9

151—175

2'A

4l
A

176—200

2V2

sy2

101—125
126—150

Vs#

f No paym ent in first three months;
in ne*t nine.
* At this point the Fund and the member shall consider ways and means by which the Fund’s holdings of the member’s currency can be reduced.
N o te :
N o charge is made on use o f the Fund resources in an amount eauivalent to a member’s gold subscription.

DOCUMENTS

4th
Year

AND

3rd
Year

-2 n d
Year

PROCEEDINGS

M arginal C harges: assum ing a member to draw the full amount perm itted each year without waiver (a fte r the Fund’s holdings of

466

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E
Document 286

CII/MC/l

Memorandum Submitted to Commission II by United
Nations Interim Commission on Food and Agriculture
F i n a n c i n g o f A g r ic u l t u r a l D e v e l o p m e n t a n d t h e
P r o p o s e d B a n k f o r R e c o n s t r u c t io n a n d D e v e l o p m e n t

At the conference on Food and Agriculture, held at Hot Springs,
Virginia, in May 1943 the United Nations recognized the need
for coordinated policies of the various countries designed to
raise levels of nutrition and standards of living and to improve
the efficiency of agriculture on a world-wide scale.
Among the specific objectives of these policies are:
1. to increase the supply of foods that are needed in larger
quantities to provide better diets for the low-income groups;
2. to reduce the production of chronic-surplus commodities in
relatively inefficient areas, where it is maintained largely
through government measures;
3. to secure better living conditions for rural people who still
comprise more than two-thirds of the world population; and
4. to enable agriculture to contribute to a high level of general
economic activity and world trade.
The Conference at Hot Springs established an Interim Commis
sion, which will be succeeded by a permanent Organization after
the constitution of the latter has been accepted by the governments
of the United Nations. It will be the task of this Organization to
promote separate and collective action by the Member nations
towards the achievement of these policies.
These objectives will however not be achieved unless credit is
effectively made available for the purposes of production, storage,
processing, transportation, and marketing of agricultural com
modities and for other purposes that are in the interest of that
agricultural reorientation and development which is a prerequisite
of improving the nutrition, especially of the low-income groups,
and the standards of living in rural areas. In countries where the
agricultural credit system is not sufficiently developed, the
government and the agricultural credit authorities should use all
means at their disposal to improve the (p. 2) situation. Some
countries will, however, not be in a position to provide effectively
for all agricultural credit needs from domestic sources; their
efforts should therefore be supported by the supplementary pro

P R O C E E D I N G S AND D O C U M E N T S

467

vision of international agricultural credit. In recognition of this
fact, the Conference at Hot Springs resolved that it shall be a
function of the Food and Agriculture Organization to submit to
Member governments and to international authorities recom
mendations concerning agriculture credit.
The Interim Commission has given considerable attention to
the problems of agricultural credit. In particular in the draft
Report to the Governments of the United Nations, it has recognized
that international agricultural and industrial credit would most
suitably be administered by one international agency, such as the
proposed Bank for Reconstruction and Development.1
The Interim Commission has recognized that capital develop
ment of other parts of the economy is also needed if the desired
improvement and adjustment in agriculture shall become possible
and if the purchasing power of low-income groups is to increase
so as to enable them to buy more nutritionally needed food and
consequentially to provide a wider market for agricultural
products. A balanced and wisely directed development of industry
and agriculture is, furthermore, necessary in order to provide
employment for the rural surplus populations of many areas where
over-population is depressing living conditions and impeding
technological progress.
The Interim Commission has particularly borne in mind the
need of some regions for large-scale development programs to be
financed by international loans. Such programs involve study and
action on a wider front than that of food and agriculture alone.
In a subsequent portion of this statement reference is made to
the part that the Food and Agriculture Organization might play,
in cooperation with the Bank and other appropriate international
organizations, in the development of such broad programs.
The memorandum presented herewith by the Interim Commis
sion to the United Nations Monetary and Financial Conference
deals with
(p. 3)
I. the need for agricultural credit in general and for inter
national agricultural credit in particular, and the economic
advantages that may be obtained from the adequate pro
vision of such credit;
1 Attention may be drawn to Appendix I of this memorandum containing
the statem ent on A gricultural Credit in the Final Act of the United Nations
Conference on Food and Agriculture, Hot Springs, Virginia, 1943; and to
Appendix II containing a statem ent on A gricultural Credit th a t is p a rt of a
draft Report to the Governments of the United Nations by the Interim Com
mission on Food and Agriculture.

468

MONETARY AND FINANCIAL CONFERENCE

II. the differences in terms and conditions under which agri
cultural credit is at present available in various countries
and a brief account of how these differences developed;
III. certain principles that should be followed in coordinating
national and international efforts to provide adequate
credit to agriculture;
IV. a proposal of ways and means to facilitate cooperation
between the proposed Bank for Reconstruction and
Development and the Food and Agriculture Organization.
I.

Need for, and Advantages of, the Development of Agricultural Credit
on a National and an International Basis

Agricultural production employs, relative to its output, large
quantities of fixed and working capital, which farm operators,
mostly small-scale entrepreneurs, are unable to provide, and which
therefore has to be obtained by the way of credit.
In modern times, there has been a progressive increase in the
credit need for farm and forest enterprises as well as for many
undertakings required for the utilization of their products. Even
under normal circumstances, this need is likely to increase further
as a result of progress in production techniques, improvements
in the construction of farm houses and out-buildings; land reclama
tion, flood control, drainage, irrigation, and other means of soil
conservation; rural roads and rural electrification; and a wider
use of disease resistant seeds, improved livestock, insecticides,
commercial fertilizers, modern machinery and equipment, refrig
eration, and dehydration. In short the more the capital equip
ment of agriculture is developed, the greater will be the need of
credit. Similarly, there will be an increase in the need for agricul
tural credit to make good the damage to agricultural capital
caused by floods, droughts, plant and animal diseases, and other
catastrophes of nature, at least as long as the natural hazards of
farming are insufficiently covered by insurance. The need for
forest credit will increase with the opening up of undeveloped
forest areas, with the afforestation of denuded soils, and with the
wider acceptance of the principles of sustained-yield management,
(p. 4) Under postwar conditions, additional credit will be needed
to replace wartime deterioration and destruction of farm capital,
to correct accumulated maladjustments in agricultural production,
and to conform to changes in consumer demand. If expansionist
economic policies prevail, and if the nutritional levels of the lowincome groups are raised—as is the hope and the policy goal of

P R O C E E D I N G S AND D O C U M E N T S

469

the United Nations — expansion in agricultural production in
accordance with the growing demand will further increase the
volume of credit needed in agriculture.
From the viewpoint of a policy oriented towards the objectives
set at the Hot Springs Conference, the need for credit for improve
ment and adjustment must receive special attention, since it is an
indispensable means for solving the paradox of agricultural sur
pluses on the one hand and malnutrition on the other. Success will,
however, be possible only if the financial structure of the agricul
tural enterprises that are to be improved is sound and healthy.
In countries where credit has been used largely for wasteful
purposes, and where debtor distress has become widespread, cor
rection of this situation will be a preliminary condition for the
improvement of agricultural conditions. Where other legitimate
credit needs arise in the agricultural sector of the economy (e.g.
for the acquisition of farm land and buildings or for the refinanc
ing of outstanding debts), which cannot be financed at appropriate
terms because of the lack of efficient credit facilities - credit must
be made available for these purposes as well as for purposes of
improvement and adjustment.
Recognition of the foregoing does not, of course, mean that it
would be necessary to draw upon international loan funds for all
those purposes; on the contrary, the primary responsibility for
the provision of appropriate and effective agricultural credit
facilities must - in the future as in the past - rest upon the
governments and the agricultural credit institutions and authori
ties of the various countries. This will in general hold true for all
those credit needs that normally are local, such as the financing
of land transfers and the refinancing of outstanding debts. After
its agricultural credit system has been adequately developed, it
will be possible for every country to finance those credit needs
with domestic loan funds.
Some countries, particularly highly developed and financially
strong countries, will be in a position to go further and to finance
their agricultural development entirely with domestic funds; but
even countries that are in a less fortunate position will be able to
supply from domestic sources part of the funds needed, - as, in
particular, funds for those undertakings which involve payments
for domestic labor and other domestic resources, (p. 5) In the
latter group of countries, the financing of agricultural develop
ment will, however, encounter difficulties if the projects in question
operate, directly or indirectly, to increase the need for foreign
exchange. A situation of this kind arises directly where agricul

470

MONETARY AND FINANCIAL CONFERENCE

tural or forest development depends on imports, from abroad,
especially imports of capital goods, as for example, breeding stock,
agricultural machinery, machinery needed in the construction of
rural roads and in modern storage and processing facilities, or
refrigerator cars, and trucks. It may arise indirectly, if in con
sequence of local labor and resources being used for an agricul
tural improvement scheme, temporarily more goods have to be
imported from abroad.
Some countries, however, will not be in a position to provide
for such increased needs of foreign exchange without depressing
domestic living standards or dumping their products on the world
market—measures which would be contrary to the manifest
policies of the United Nations; these countries must, therefore, be
enabled to borrow capital from abroad. Past experience has, how
ever, demonstrated that private international capital, for the most
part, is not interested in the financing of agriculture with the
exception of plantation farming, centralized processing, or other
large-scale undertakings that hold out prospects for high profits.
Adequate financing for the world-wide reorientation of agricul
ture after this war will, therefore, require that an international
credit agency - such as the proposed Bank for Reconstruction and
Development - should provide loans to countries in need of foreign
funds for agricultural improvement and adjustment.
If international loans are made available for these purposes,
this will benefit agriculture not only in the capital-importing
countries but also in capital-exporting countries, because the
world-wide maladjustments of agricultural production can be
corrected only if corresponding adjustments are carried out in
the production patterns of the one as well as the other group of
countries. Furthermore, the international financing of agricul
tural development will benefit industry and commerce by (a)
providing wider markets for many types of capital goods and (b)
creating broader and more stable markets for manufactured con
sumer goods in the rural areas.
The amounts of international credit needed to finance agricul
tural development and reorientation are in many cases small as
compared with the sums required for industrialization projects,
and in many less developed countries, useful results in the form
of increased cash returns for borrowers, increased production,
more trade, better nutrition and other benefits could be obtained
from certain agricultural projects (e.g. improvement of seeds
and livestock, provision of modern machinery and equipment,
building of rural roads, construction of storage and processing

P R O C E E D I N G S AND D O C U M E N T S

471

facilities) within a comparatively short period. In these cases
therefore (p. 6) the financing of such agricultural projects
would faster produce tangible results in the direction of the
development of an expanding economy and an improvement in
living conditions than would many of the more far-reaching
industrial development schemes, however necessary the latter may
be.
II.
Development of Agricultural Credit
in Different Countries

The terms and conditions under which credit may be obtained
for agricultural purposes vary considerably from country to
country and—within the individual countries—by regions, by
types of farming, and furthermore with differences in the kinds
of security offered by the borrower.
Leaving out of consideration the special types of loans whose
rates of interest are reduced by government subsidies and the
loans the conditions of which were determined largely by con
siderations of personal relationship or friendship, we find that
the effective rates of interest charged on agricultural loans vary
from the relatively low charges of 4 to 5 per cent and even less
in a few countries to the usurious charges of 40 to 100 per cent
and more in parts of Eastern Europe, in wide areas of Asia, and
in some parts of Africa and of the Americas.
To a certain extent, the differences in the costs of agricultural
loans are the result of differences in the availability of loan funds
and in the risks involved; and of the small size of many agricul
tural loans involving high administrative costs.
But the greatest differences in the costs of agricultural
credit stem from differences in the development of the credit
systems of the various countries, and especially in the develop
ment of their institutional credit facilities for agriculture.
In countries where farmers cannot obtain credit from institu
tional sources usury flourishes, credit is used largely for wasteful
purposes, and the methods of production and marketing have re
mained primitive; the results are appalling poverty and malnutri
tion in rural areas and inadequate food supplies for the lowincome groups in the cities. On the other hand, where—through
private initiative, cooperation among farmers, or government
action—appropriate and efficient credit agencies have been devel
oped, this has substantially helped to reduce the costs of agri7 4 9 0 1 3 — 4 8 — 31

472

MONETARY AND FINANCIAL CONFERENCE

cultural credit and to promote progress in agriculture and in
living standards.
(p. 7) Specialized mortgage credit institutions date back to
the second half of the eighteenth century. Since then, many types
of private, governmental, and cooperative mortgage credit agencies
have been established. Wherever such agencies have attained im
portance as agricultural lenders, they have, directly and by the
way of competitive lending, contributed to a substantial reduction
in the rates of interest charged for farm mortgage loans. By
offering amortizable loans, they have helped hundreds of thou
sands of farmers to pay off their mortgages. Some of them have
rendered important services to agriculture, and to the general
economy, also through their refinancing operations in periods of
monetary stringency. While, in the long history of institutional
farm-mortgage credit, some losses inevitably occurred, it is no
table that, where these agencies were well organized and under
experienced management, the losses were kept within relatively
small limits. As a result, agricultural mortgage bonds were rated
as high class investments in many countries.
In the field of short-term and intermediate agricultural credit,
the competitors of private lenders and merchants are commercial
banks, cooperative associations, and government agencies. The
commercial banks have become a large source of agricultural loans
in countries where they have extended their activities into rural
areas, as especially in the Anglo-Saxon countries. The other im
portant source of short-term and intermediate agricultural credit
is the cooperative credit associations; their contribution to the
improvement of the terms and conditions of these types of credit
has, in many countries, been far greater than those of any other
type of lending agency; in some countries they have, for all prac
tical purposes, become the only institutional source of short-term
and intermediate loans to farmers. The development of credit
cooperatives has been furthered by governments in almost every
country in which they have obtained prominence. In a consid
erable number of countries, government agencies have been
established either for the refinancing of credit cooperatives or,
directly, for the provision of short-term and intermediate loans
to agriculture.
If international credit is made available to agriculture, the
importance of domestic lending agencies will not decline; but, on
the contrary, it will increase; for, besides providing agriculture
with domestic loan funds, such agencies will have to accept the

PROCEEDINGS AND DOCUMENTS

473

responsibility for making and servicing loans made possible by
action of the Bank.
(p. 8)

III.
Problems of Coordinating International and National
Agricultural Credit Policies

To ensure the effective use of credit for the furtherance of the
objectives stated above (world-wide reorientation of agricultural
production, better nutrition in low-income groups, better living
conditions for rural people, and high levels of economic activity
and world trade), well coordinated measures are needed on the
domestic as well as the international level. The following pages
discuss:
(1) tasks arising in the development of the agricultural credit
system that need to be performed by the governments and
agricultural credit authorities of various countries.
(2) the probable scope of the agricultural lending activities of
the Bank for Reconstruction and Development.
(3) means by which the Food and Agriculture Organization
could give assistance to the development of domestic credit
facilities in various countries and to the agricultural lend
ing of the Bank for Reconstruction and Development.
1. Tasks of the National Governments and Agricultural Credit
Agencies.
Since loans by the Bank for Reconstruction and Development
are intended to supplement, and not to substitute for, credit from
the domestic sources—countries at present not making loans ef
fectively available for desirable agricultural purposes will have
to remedy this situation with all means at their disposal.
The specific measures required for improving the domestic agri
cultural credit system will differ considerably as between coun
tries. There are, however, certain institutional provisions that
are needed in every country to ensure efficient functioning of the
system. They include:
(a) Legislative provisions for effective legal instruments and
records required in agricultural lending, for example, real
estate and chattel mortgages, negotiable warehouse re
ceipts, land registers and registers for deeds or preferably
titles.

474

MONETARY AND FINANCIAL CONFERENCE

(p. 9)
(b) Efficient lending agencies for the various types of credit
needed in agriculture, such as—short-term, intermediate,
and long-term credit for farmers in general, credit for
cooperative warehouses, credit for processing and market
ing cooperatives, and credit for public corporations in
rural areas. Where private capital does not provide these
types of credit at reasonable terms, it will often be neces
sary to develop agricultural credit agencies on a coopera
tive or governmental basis. In either case, it will be neces
sary to provide (i) satisfactory refinancing opportunities,
e.g., through the accumulation of savings, the floating of
bonds, government guarantees, or direct government financ
ing; and (ii) adequate coverage of refinancing costs, ad
ministrative expenses, and loan risks out of interest and
service charges and, where needed, with the help of gov
ernment guarantees or subsidies. The operations of local
credit cooperatives, or other lending agencies with a lim
ited area of operations, may need to be supported by or
ganizing them on a nation-wide basis or by establishing
central refinancing agencies.
(c) Provision for advice to farmers as to the economic use of
credit in their own farming operations, in cooperative as
sociations, and in local public corporations.
In the application of these principles, due consideration should
be given to the specific problems predominant in each country.
For example, if in a certain country farmers are inexperienced
in the economic use of credit and in modern methods of farm
management, the credit policy of such a country should aim at an
effective coordination of an advisory service with the lending serv
ice. This might be achieved in various ways, as for example
through the combination of these two types of services in one
system, commonly called “supervised credit”. (The administrative
costs of the educational part of such a program should, of course,
be recognized as government expenditures and should not be
charged to the borrowers.)
Where severe debtor distress has become an obstacle to agricul
tural improvement and to the effective financing of such improve
ment, there would have to be relief by measures designed to facili
tate farm debt adjustment. If usurious money lending for unpro
ductive purposes is the main reason of the widespread debtor dis
tress, the governments are faced with the formidable task of
fighting these practices through stern legislative and administra

PROCEEDINGS AND DOCUMENTS

475

tive measures. Though it will be difficult to eradicate usury where
it has dominated for centuries, there are some countries where
such action is the indispensable prerequisite to the successful
financing of agricultural development.
(p. 10) If in a country the prevailing pattern of land tenure
impedes the improvement and adjustment of agricultural produc
tion or the improvement of nutrition and living standards in rural
areas, changes in the land tenure system may have to be facili
tated by the provision of the special types of credit needed by
settlers for the acquisition of land, livestock, equipment, and
other necessaries and by such additional measures as may be
required. Furthermore, there may be countries in which the effec
tive provision of agricultural credit may depend upon other im
provements in the national agricultural pattern.
2. Agricultural Lending Activities of the Proposed Bank for Re
construction and Development.

Within the general policies governing the lending operations
of the Bank for Reconstruction and Development (such as balance-of-payment considerations), its agricultural lending opera
tions (or its guarantees of loans for agricultural purposes) might
mainly be confined to agricultural improvement and adjustment
projects which, in the course of their development, give rise,
either directly or indirectly, to an increased need for foreign
exchange.
Under such a policy, the Bank might be called upon to provide
certain countries with foreign exchange for the import of capital
goods, such as breeding stock, agricultural implements, machinery
for the building of rural roads, and modern equipment for storage
and processing plants and for the transport of agricultural and
forest products, or other imports that arise indirectly from the
use of domestic resources in agricultural development. In any
of these cases, it should be made a condition for lending by the
Bank that the imports are directly or indirectly needed in carry
ing out agricultural and forest improvements intended to achieve
the aims agreed upon at Hot Springs.
If, because of special circumstances, the domestic-currency needs
for desirable improvements and adjustments cannot be financed
from domestic sources at reasonable terms, the Bank for Re
construction and Development would, on the basis of the pub
lished plan for the establishment of the Bank, be in a position
to provide funds also for the domestic part of the project. It is,
however, assumed that the Bank will not undertake such lending

476

MONETARY AND FINANCIAL CONFERENCE

operations unless satisfactory evidence has been presented with
regard to the circumstances that make it impossible to obtain
domestic loan funds at reasonable terms. Moreover, the countries
receiving such assistance will have to make every feasible effort
to reduce and ultimately to eliminate the need for the provision
of funds by the Bank for such purposes.
Except in the case of large developments undertaken by govern
ments or corporations (e.g. dam construction), the financing of
agricultural improvement and adjustment will require the making
of loans to a great number of individual borrowers. It is, how
ever, expected that the Bank will in (p. 11) such cases confine
itself to the providing of the needed loan funds to the domestic
credit agencies and to the setting of the standards governing the
making of the loans to the individual borrowers. It would then
be the responsibility of the domestic credit agencies to make and
service these loans and to control the use of the borrowed money
and the maintenance in good repair of the property of the debtors.
3. Activities of the Food and Agriculture Organization in the
Field of Agricultural Credit.
It is anticipated that the Food and Agriculture Organization
will, in accordance with the recommendations at Hot Springs,
establish a reporting and consulting service on the problems of
agricultural credit. This service will be able to give valuable aid
(1) to individual countries seeking to develop their national agri
cultural credit systems and (2) to any agricultural lending opera
tions of the Bank for Reconstruction and Development.
In the establishment and maintenance of this service, the
Organization will have the benefit of periodic reports of all
member countries on the progress made and the actions taken
by them in the field of agricultural credit since in accordance
with the recommendations of the Hot Springs Conference, the
making of such reports will be obligatory to the member countries.
Among the main tasks of the reporting and consulting service
of the Food and Agriculture Organization on problems of agri
cultural credit will be the following:
(a) To collect basic and current information on the conditions
of agricultural credit in various countries,2 and to make it
2This m ight include collecting inform ation on:
(i) legal and adm inistrative measures affecting farm tenure, real estate
mortgages and chattel mortgages, foreclosure, moratorium, debt adjust
ment, resettlement, term s of loan contracts, etc.;

Footnote continued on page 477

PROCEEDINGS AND DOCUMENTS

477

available, through a current information service, to mem
ber countries and to the proposed Bank for Reconstruction
and Development.
(P. 12 )

(b) To embark on comparative studies of problems that are
of actual importance for the improvement of agricultural
credit facilities in member countries, and to make the
results of these studies available to member countries and
to the Bank.
(c) To maintain a staff of international experts on technical,
social, and economic problems of agricultural credit which
would be at the disposal of
(i) governments of member countries for the purpose of
consultation on general or specific problems related
to the development of agricultural credit, and
(ii) the Bank for Reconstruction and Development for the
purpose of analyzing agricultural problems that are of
interest to the Bank.
In view of the direct concern of the Organization with all
problems of agricultural reorientation and development, it is
clearly appropriate that the Organization, if it is to be enabled
to exercise an influence in its own field commensurate with the pur
poses for which it is to be established, should be recognized as
a complementary body to the Bank in regard to agricultural credit.
As such it would have to cooperate with the proposed Bank for
Reconstruction and Development in the examination and control
of agricultural reorientation and development projects for which
international financing is desired. To make such cooperation
Continued from page 476

(ii) availability, conditions, and term s of various kinds of credit needed in
agriculture (short-term , intermediate, and long-term credit in general;
and specific kinds of credit, such as supervised credit, land settlement
credit, credit for farm er cooperatives, and credit for local governments) ;
(iii) use of m ortgage and chattel securities and of sureties in agricultural
credit;
(iv) sources of credit (types of lenders, scope of their business, refinancing
methods and opportunities, adm inistrative and managerial problems,
etc.) ;
(v) government assistance in the provision of agricultural credit by the way
of guarantees and subsidies, and the relationship of such assistance to
other aids to agriculture;
(vi) purpose, extent, and effect of the use of agricultural credit; especially
interrelationships between the use of credit and the natural, social, and
economic conditions in agriculture.

478

MONETARY AND FINANCIAL CONFERENCE

effective, a borrowing country should, upon recommendation of
the Organization, be required, as a condition of the loan, to avail
itself to the fullest extent, of the technical services and advice of
the Organization in regard to the projects for which the loan
is granted.
In many regions general developmental programs may be needed,
including such coordinated activities as flood control, water con
servation, electric power development and transmission, soil con
servation, land reclamation and irrigation, agricultural reorienta
tion, road and rail transport, and expansion of manufacturing
and trade. Assistance to countries developing such programs may
involve cooperation not only between the Bank and the Food and
Agriculture Organization, but also with appropriate specialized
international organizations.
IV.
Cooperation between the Proposed Bank for Reconstruction and
Development and the Food and Agriculture Organization

The use of the lending powers of the proposed Bank for Re
construction and Development in conformity with the policy ob
jectives of the United Nations in the field of food and agriculture
would be facilitated by providing for continuous close coordination
between the Bank for Reconstruction and Development and the
Food and Agriculture (p. 13) Organization of the United
Nations, since it will be the task of the latter to give technical
assistance to countries desiring to improve and adjust agricul
tural production, processing, and marketing in accordance with
these principles. Coordination of the advisory activities of the
one agency and the agricultural lending activities of the other
will help to secure the use of the Bank's funds for projects that
will best contribute to the achievement of needed nutritional and
agricultural improvements. In addition, it should also help to
reduce the risks of the Bank’s lending in the agricultural field.
As an example of the common tasks of the two agencies, there
may be mentioned the case of a country with badly balanced
agriculture and poor agricultural credit facilities. In such a case,
the Food and Agriculture Organization of the United Nations
would be the agency to assist in the reorganization of the country's
agricultural production program and to help in the establishment
of effective agricultural credit institutions. The Bank for Recon
struction and Development, on the other hand, would consider
proposals for the financing of agricultural projects in this coun
try that could not be financed from domestic sources.

PROCEEDINGS AND DOCUMENTS

479

On the general policy level, coordination between the two
agencies could be effected by providing for (1) a representation
of the Organization on the Advisory Council of the Bank and (2) a
representation of the Bank on the Conference of the Organization.
Effective coordination on the operating level could be brought
about by providing, in the charter of the Bank, for the naming
of one of the Bank's vice-presidents from a panel, suggested by
the Organization, of say three persons with a wide knowledge of
agriculture and experience in the administration of agricultural
credit. It would be desirable for this vice-president to be a mem
ber of the Bank's Board of Directors and of the Bank’s Executive
Committee. Such an arrangement would be in conformity with
the practices of private financial institutions of appointing a
vice-president, or other high-ranking officer, as head of the
agricultural loan department. In addition, continuous contacts
would need to be maintained between the management of the
Bank and the Secretariat of the Food and Agriculture Organiza
tion.
To have available to the Food and Agriculture Organization
the experience of the agricultural vice-president of the Bank,
arrangements should be made for his serving ex-officio as a con
sultant to the Organization on financial problems.
APPENDIX

Excerpt from the Final Act of the United Nations Conference on Food
and Agriculture, Hot Springs, Virginia, 1943.

Article XVI. Agricultural Credit
W hereas :

1. Capital development and adequate credit facilities are necesFarv if agricultural production is to be restored, increased, and
intensified;
2. Agricultural credit in some countries has frequently been
obtainable only at rates which the farmer could not afford to pay;
3. The agricultural communities in many countries have been
unable to obtain information on the organization and development
of agricultural credit systems in other countries;
4. In some countries full agricultural development has been
or may be obstructed by difficulties in providing adequate capital;
The United Nations Conference on Food and Agriculture
R ecom m ends:

1.
That every endeavor be made to ensure an adequate supply
of credit to agriculture;

480

MONETARY AND FINANCIAL CONFERENCE

2. That to this end full use be made of all types of suitable
private, cooperative, and public credit institutions;
3. That the rate of interest be as low as possible and the con
ditions regarding initial cost, redemption, etc., be as favorable
as possible for the borrowers, particularly with a view to helping
the small farmer;
4. That, in view of the importance of agricultural credit, its
requirements be duly recognized by international action taken as
a result of this Conference.
APPENDIX

Excerpt from a D raft Report to the Governments of the United Nations
by the Interim Commission on Food and Agriculture.

5. Agricultural Credit
65. The Commission has given careful thought to the functions
that ought to be performed by the Organization in the domain of
agricultural credit. It is manifest that the basic purposes of the
Organization will not be achieved unless international credit for
agricultural projects is made available and effective on a consid
erable scale, and it follows that the promotion of a wise and liberal
administration of international agricultural credit is among the
major concerns of the Organization. Such an administration,
indeed, is important not only to world agriculture but to world
economy, and the doctrine of an expanding world economy, to
which, at the Hot Springs Conference and elsewhere, the majority
of governments have subscribed, is unlikely to be realized in the
absence of sound policy and practice in regard to international
agricultural credit. Investments directed towards the improve
ment of agricultural methods should bring quick returns in
increased production, and this would not only be reflected in im
proved nutrition but also in increased international trade. In
deed, that portion of international investments which may be
directed towards agriculture may bring about quicker effects upon
world economy than larger sums needed for longer term devel
opments.
66. The Commission conceives, however, that international
credit and investment, whether related to agricultural or indus
trial development or to other purposes, would most suitably be
administered by a single international authority charged with
the appropriate functions in respect of all such purposes. It rec
ommends that such an authority be established by agreement be

PROCEEDINGS AND DOCUMENTS

481

tween the governments concerned, and that adequate arrange
ments be made for including the provision of agricultural credit
among its functions. It further recommends that the Organization,
or in the event of its not being established in time the Interim
Commission itself, should be represented at any international
conference that may be convened for the purpose of setting up an
international credit and investment authority.
67.
Credit will be needed for many agricultural developments—
for example, the re-equipment of agriculture, mechanization, land
reclamation, irrigation, afforestation, and increased storage, proc
essing, and marketing facilities for agricultural products. Agri
cultural credit should, however, be interpreted not only as covering
its conventional forms but also as including credit for adjustments
in other parts of the economy in the interests of agricultural re
orientation and better standards of nutrition.
(p. 2) 68. The Organization will have a direct concern with
all these matters, and it is clearly appropriate, if it is to be
enabled to exercise an influence in its own field commensurate
with the purposes for which it is established, that it should be
recognized as a complementary body to the international credit
and investment authority with specific functions in regard to
agricultural credit.
69. The specific functions relating to agricultural credit which
the Commission recommends should be assigned to the Organiza
tion are as follows:
(a) The Organization should participate in the manage
ment of the international credit organization through represen
tation on its governing body, in order to provide for due con
sideration of agricultural interests in the determination of
general international credit and investment policies.
(b) Applications for international credit for an agricultural
purpose should be considered by the international credit author
ity only after examination by the Food and Agriculture Organi
zation and in the light of its recommendations.
(c) In appropriate cases, and if the Food and Agriculture
Organization should so recommend, the borrowing country
should be required, as a condition of the loan, to avail itself to
the fullest extent, in regard to the projects for which the loan
is granted, of the technical services and advice of the Organiza
tion.

482

MONETARY AND FINANCIAL CONFERENCE
Document 287
D P /1 7

Proposal for a Conference to Promote Stability in the
Prices of Primary International Commodities
Presented by Brazilian Delegation to United Nations
Monetary and Financial Conference.

1. Fluctuations in the prices of primary products during the
interwar period were as much of a curse as recurring large scale
unemployment.
The Economist index of sensitive commodity prices (1935 = 100)
fell from 369 in February 1920 to 163 in January 1922; it rose
gradually to 232 in November 1925 and fell, almost without inter
ruption, reaching its low point of 75 in August 1931. It recovered
to 175 in March 1937, to sink again to 88 in May 1938.
It may be said that after 1920 the disparity between the prices
of agricultural commodities and raw materials and those of manu
factured goods was the main cause of disequilibrium in inter
national trade.
2. The introduction to the United States proposal for an Inter
national Monetary Fund states that “it is recognized that an
international stabilization fund IS o n l y o n e of the instru
mentalities which may be needed in the field of international
economic cooperation. Other agencies are also needed to provide
capital for post-war reconstruction and development, to provide
funds for rehabilitation and relief and to promote stability in the
prices of primary international commodities.”
This Conference is expected soon to achieve an agreement on
the international monetary fund and on the bank for reconstruc
tion and development. The problem of rehabilitation and relief has
already been dealt with by the Food Conference. Out of the four
main problems mentioned in the United States proposal, that of the
promotion of stability in the prices of primary international
commodities is, therefore, the only one which still remains to be.
considered.
The inter-relationship between these international agencies has
been similarly emphasized by the United Kingdom Treasury plan,
in which it is said that “if an international investment or de
velopment corporation is also set up together with a scheme of
Commodity Controls for the control of stocks of the staple primary
products, we might come to possess in these three Institutions
a powerful means of combating the evils of the Trade Cycle” and
“it is possible that TAKEN TOGETHER these institutions may

PROCEEDINGS AND DOCUMENTS

483

help the world to control the ebb and flow of the tides of economic
activity wr
hich have, in the past, destroyed security of livelihood
and endangered international peace.”
3. The heavy fall in prices of the products imported by the
industrial nations and the consequent improvement in these na
tions’ terms of trade were of but illusory advantage to them, as
the decline in purchasing power in the countries producing primary
products brought about a corresponding reduction in the imports
of these countries and thereby a depression in the export industries
of manufacturing countries.
(p. 2) Manufacturing industries and raw materials produc
tion must stand or fall together.
It is often held that the maintenance of a high level of employ
ment is, by itself, a guarantee of satisfactory prices for raw ma
terials and agricultural products. It should not be overlooked,
however, that even if a high level of employment is achieved
everywhere, it may be seriously disturbed by price fluctuations
in primary products resulting from climatic or other factors, with
a resulting disequilibrium in relative prices capable of endangering
the whole price structure.
4. Before the war, several international organizations had
been formed to deal with the problem of raw material prices. These
organizations could be made the starting point for more com
prehensive ones in which both primary producer and manufactur
ing and consumer interests would be represented to prevent, as
far as possible, violent fluctuations in the production stocks and
prices of rawTmaterials.
Experience has already taught that organizations of this kind
can have a strong stabilizing effect on markets. They have, of
course, to develop a technique of their own and the history of some
of them has shown how their methods can gradually be improved
and simplified. It has also shown that different raw materials
reed different methods.
The development and improvement of these organizations should
not be made to contribute to restriction of production or to monopo
listic practices, but rather to a continuous improvement in efficiency
of methods of Droduction and to the maintenance of ever-normal
granaries, credit for which might be supplied both by the Inter
national Monetary Fund and by the producing countries.
5. Be it R esolved that for the successful attainment of the
objects pursued by the International Monetary Fund and the
Bank for Reconstruction and Development, a Conference of United
and Associated Nations to promote stability in prices of raw

484

MONETARY AND FINANCIAL CONFERENCE

materials and agricultural products be called to make recommenda
tions for the achievement of a better balanced growth of interna
tional trade.

Document 288
DP/18

Draft Resolution Submitted to Commission III by Cuban
Representatives to United Nations Monetary and
Financial Conference
(Submitted as A lternative A to the motion filed with Commission III by the
Peruvian Delegation (No. 9—Page 7—Doc. #235) )

that to implement the aims and objects of the Inter
national Monetary Fund and the Bank for Reconstruction and
Development a Conference of the United and Associated
Nations be convened in order to consider the necessary meas
ures to insure higher standards of living and full employment
through greater freedom and expansion of trade and the
orderly marketing of staple commodities.

R e s o lv e d ,

Document 289
D P /1 9

Draft Resolution Submitted to Commission III by
Chilean Representatives to United Nations
Monetary and Financial Conference
(Submitted as alternative to the motion filed with Commission III by the
Peruvian Delegation (No. 9—Page 7—Doc. # 2 3 5 ))

T h e Conferen ce

declares

That the practical application of the International Monetary
Fund, the technical organization of which has been approved,
will be subordinated to the previous or simultaneous adoption
of economic and financial measures w h ich will facilitate the
development of the production and insure the disposal of the
staple products of economically weaker nations, so as to guar
antee the safe operation of the new institution.

PROCEEDINGS AND DOCUMENTS

485

Document 290
D P /2 0

Mexican Delegation
Com m ission II

BANK FOR RECONSTRUCTION AND DEVELOPMENT

Proposed Amendment to Draft
A rticle I

Purposes of the Bank

The purposes of the Bank shall be the following:
1.—To encourage permanently the economic development of
member countries.
2.—To assist, during the first post-war years, in the reconstruc
tion of member countries and in the transition from a war
time to a peace-time economy.
3.—To coordinate its financial operations with those of other
international and national financial agencies.
4.—To cooperate with all the agencies which the United and
Associated Nations have created or may create.
To achieve these purposes, the Bank shall facilitate the provision
of long-term capital for productive purposes, either by guarantee
ing and participating in loans made by private investors, or when
private capital is not available on reasonable terms, by furnishing
capital out of its own resources.

Document 293
(p .

2d)

SA /3 /6

A lte r n a t iv e G

The purposes of the Bank shall be the following:
1. To encourage permanently the economic development of
member countries.
2. To assist, during the first post-war years, in the reconstruc
tion of member countries and in the transition from a war
time to a peace-time economy.
3. To coordinate its financial operations with those of other
international and national financial agencies.
4. To cooperate with all the agencies which the United and
Associated Nations have created or may create.

486

MONETARY AND FINANCIAL CONFERENCE

To achieve these purposes, the Bank shall facilitate the provision
of long-term capital for productive purposes, either by guarantee
ing and participating in loans made by private investors, or when
private capital is not available on reasonable terms, by furnishing
capital out of its own resources.
7 /1 1 /4 4

Art. I
Alt. G

Document 294

(p. 50b)

S A /l/5 2

Alternative A
July 11th, 191th
Fixing initial par values of occupied countries (Sug
gested modification of Article XIII, Section 5.).
Any member country that has been occupied by the enemy in
whole or in part shall be entitled to postpone communicating to
the Fund the initial par value of its currency during a period to be
agreed upon with the Fund. Pending agreement with the Fund
upon the initial par value of its currency, a member country shall
be entitled to buy from the Fund with its currency the currency
of other member countries after agreement with the Fund upon
a provisional initial rate of exchange, which may be changed by
action of such country within a period and range to be agreed
with the Fund, subject to the provisions of Article IV, Section 6.
S e c tio n

This is a d ra ft of the substance. The exact wording and possible revision of X III, 5 is a m atter for fu rth er consideration.

N o te:

7 /1 1 /4 4

J.S. Article X III
Section 5

Document 295
C I/ 1 / D C 3

Revised Wording of Article II, Section 5 (p. 4 of S A /l)
Suggested by the Drafting Committee of Commission I and sub
mitted to Committee 1, since it covers a point of substance
not passed upon by the Committee.
The proposed wording reads as follows:
“Each member shall pay in gold as a minimum either (a)

P R O C E E D I N G S AND D O C U M E N T S

487

twenty-five percent of its quota or (b) ten percent of its official
holdings of gold and gold convertible exchange1 as a t ------------ ,
whichever is smaller. If the holdings of any member are not
ascertainable as at such date because its territories have been
occupied by the enemy the Fund shall fix an appropriate alterna
tive date.”
Committee 1 is asked to fill in the date left blank in this
section.

Document 296

C l/2 / AH

Proposals Put Before Committee 2 of Commission I
on July 11th
I. The Ad Hoc subcommittee of Committee 2 to consider Article
III-2-(3) of Alternative A (p. 6a), Alternative B (p. 6b), Alterna
tive D (p. 6c), and Alternative F (p. 6e) presented the following
report at yesterday’s meeting:
1. That Section 2-(3) of Alternative A (p. 6a) be accepted as
it stands;
2. That the first sentence following paragraph (4) of Section 2
of Alternative A (p. 6a) be amended to read as follows:
“The Fund may in its discretion, and on terms which
safeguard its interests, waive any of these conditions, es
pecially in the case of members with a record of avoiding
large or continuous use of the Fund’s resources. In making
such waiver it shall take into consideration periodic or ex
ceptional requirements of members.”
II. Mr. Monteros of the Mexican Delegation suggested that the
second sentence following paragraph (4) of Section 2 be amended
as follows:
“The Fund shall also take into account a member’s willing
ness to pledge as collateral gold, silver, securities, or other
acceptable assets having a value sufficient in the opinion of
the Fund to protect its interests and may require as a con
dition of such waiver the pledge of such collateral.”
III. Mr. Passos of the Cuban Delegation suggested that the
1 The phrase “gold and gold convertible exchange” is subject to definition
and to such change in terminology as may be agreed upon.
7 4 9 0 1 3 — 48— 32

488

MONETARY AND FINANCIAL CONFERENCE

following words be inserted in the amendment of the Mexican
Delegate after the word securities in the second line:
“and warehouse receipts of staple commodities in interna
tional trade.”
7 /1 1 /4 4

Document 297

(p. 2d)

S A /3/7

I
Alternative H
A r t ic l e

It is proposed to substitute the following for subdivision 4 of
Alternative A:
4.
To coordinate loans made or guaranteed by it with interna
tional loans through other channels so that the more useful and
urgent projects will be dealt with first, and taking into account
the fundamental needs of all and each one of the member countries
applying for reconstruction or development loans alike.
Alternative I
The following is submitted as an amendment to Article I (3) :
To promote the long range balanced growth of international
trade by encouraging international investment for the development
of the productive resources of member countries and to contribute
thereby to the promotion and maintenance of high levels of em
ployment and real income as a primary objective of economic
policy.
7 /1 2 /4 4

Art. I
Alt. H & I

Document 298

Commission II— Schedule of Work Assignments to Committees and Subcommittees of Bank Commission
Work
Assignment

pp. 3, 4, 5

“Membership, etc.”

pp. 4-9 inc. p. 11

“Subscriptions”

Chairmen

Membership

Reporting
Delegate

Beyen
Secretary:

Oreamuno
Young

(U.S., U.K., Netherlands, USSR, France,
\ Canada, China

Beyen
Secretary:

Oreamuno
Sundelson

pp. 14-18 inc., p.21

“Ratio of Capital Em fU.S., U.K., USSR, China, France,
Netherlands, Belgium, Poland, Cuba,
ployable”
[Brazil, Czechoslovakia, Canada

Montoulieu
Secretary:

Brigden
Bitterman

pp. 19, 20, 22, 24, 25

“Flat Rate of Commis ( U.S., U.K., USSR, China, France, Cuba,
sion”
] Netherlands, Norway, Mexico, Belgium

Montoulieu
Secretary:

Brigden
Russell

p. 13, 15c, 15d, 34

“Relationship of Inter /U .S., U.K., India,
national Agencies”
IColombia, S. Africa

China,

Pumarejo
Secretary:

deKock
Ezekiel

pp. 29-36 inc., 38, 40

“Management”

{U.S., U.K., USSR, Cuba, Belgium, Norjway, Netherlands, Brazil, South Africa

Pumarejo
Secretary:

deKock
Ezekiel

pp. 42-44 inc., 47. 48

“ Suspension, W ith /U.S., U.K., Belgium, Czechoslovakia,
\ Mexico, Netherlands
drawals”

pp. 51-52 inc.

“Taxation”

U.S., U.K., Norway, Australia, India

Canada,

U.S., U.K., India, Cuba, Poland

Belgian Rep. deKock
Secretary: Dyson
Deshmukh
Secretary:

Baranski
Edmiston

DOCUMENTS

Subject

AND

Subcom.
Ad Hoc

PROCEEDINGS

Com
mittee

(P. 2 )
Subcom.
Ad Hoc

Work
Assignment

Subject

Drafting Subcommit All Pages Remaining
tee of Agenda Com
mittee
Agenda Committee

“Drafting”

“Agenda”

Reporting
Delegate

Membership

Chairmen

/U.S., U.K., USSR, China, Czechoslo
v a k ia , India, Mexico

Acheson
Secretary:

Smithies

[U.K., U.S., USSR, China, Brazil, Canada,
('iiba. France, India, Czechoslovakia

Keynes
Secretary:

U pgren

MONETARY

Comm ittee

AND

Time of M eeting

Wed., July 12, 9:30 a.m.
Wed., July 12, 2:30 p.m.
Wed., July 12, 11:30 a.m.
Wed., July 12, 4:30 p.m.
Thurs., July 13
Thurs., July 13
Wed., July 12, 9:30 a.m.
Wed., July 12, 2:30 p.m.
Wed., July 12, 8:30 p.m.

la
lb
2a
2b
3a
3b
3c
4a

Drafting Subcommittee of Agenda Committee

Room

Hemicycle
B
B
B

B
Hemicycle
A

CO N FEREN CE

1
1
2
2
3
3
3

Subcom.
Ad Hoc

FINANCIAL

Committee

P R O C E E D I N G S AND D O C U M E N T S

491

Document 299

(P. 56)

J OURNAL
UNI TED

NATI ONS

No. 12

MONE T ARY AND

FI NANCI AL

CONFERENCE

Bretlon Woods, New Hampshire

July 12, 1944

ORDER OF THE DAY
Meetings for Wednesday, July 12
9:30 a.m.
9:30 a.m.
9:30 a.m.
9:30 a.m.
10 a.m.
11:30 a.m.
12 noon
2:30 p.m.
2:30 p.m.
2:30 p.m.
4:30 p.m.
8:30 p.m.

Drafting Committee of Commission I .............
A d Hoc Committee C of Committee 3 of Com
mission II ............................................................
A d Hoc Committee A of Committee 1 of Com
mission II ............................................................
A d Hoc Committee IV, 5 of Commission I . . ..
Committee 2 of Commission I ..............................
A d Hoc Committee A of Committee 2 of Com
mission II ............................................................
A d Hoc Committee of Commission I on Ex
change C o n tro ls.................................................
A d Hoc Committee B of Committee 1 of Com
mission II ............................................................
A d Hoc Committee A of Committee 4 of Com-

.Room A
.Room B
.The Hemicycle
. Auditorium
.Auditorium
.Room B
.The Hemicycle
.Room B

•The Hemicycle
Committee 1 of Commission I ............................ . Auditorium
A d Hoc Committee B of Committee 2 of
. Room B
Drafting Committee of Commission I I ............. .Room A

(p. 57)
R

esu m es

Com

m is s io n

and

m m it t e e

e e t in g s

Committee 2 of Commission I
Operations of the Fund
(July 11, 2:30 p.m.)

The seventh meeting of Committee 2 of Commission I was held
on July 11 at 2 :30 p.m.
The Committee continued its discussion of article IV, Par Values
of Member Currencies. The Committee approved article IV, sec
tions 2, 3, and 4 of Alternative A (p. 17a of Document SA/1)
and sections 5 and 6 of Alternative D (p. 18c). The Committee
may reopen discussion of section 5(b) (p. 18c) after discussing
article III, section 9(b) (p. 12). The Australian Delegate noted
his reservation on Alternative C (p. 17c). The observation of the
Canadian Delegate expressed at the last meeting will also be
reported to the Commission.

492

MONETARY AND FINANCIAL CONFERENCE

The Committee deferred discussion of article III, section 10, and
article XIII, section 5. The Committee began discussion of the
report of the ad hoc committee on article III, section 2(3) and
will continue this discussion at its next meeting at 10 a.m. on
July 12.
(The minutes of this meeting are being distributed separately
as document no. 302.)
Committee 3 of Commission I
Organization and Management of the Fund
(July 11, 10 a.m.)

The Committee raised several questions about the interpretation
of article VIII, section 2, Alternative A (Document 210) and re
ferred it to the Drafting Committee of Commission I for clari
fication. The Committee referred article VIII, section 4, Alterna
tives A and C to the Commission. Article VIII, section 3, was also
referred to the Commission. No action was taken on article VII,
section 7.
(The minutes of this meeting are being distributed separately
as document no. 303.)
(p. 58)

Commission 11
Bank for Reconstruction and Development
(July 11, 4 p.m.)

At the second meeting of Commission II the Chairman reported
that the Agenda Committee had recommended that Document 245
be considered by the Commission. He announced the names of
the Committee Chairmen and Reporting Delegates and the Com
mittee assignments.
The following parts of the document were referred to the draft
ing committee: article I; article II, sections 7 and 8; article IV,
sections 5, 8, 9, and 10; article V, sections 9, 11, and 13; article
VI, section 5; article VII, sections 1 and 2; article V III; article IX,
sections 1 and 3; article III, section 2, as amended by the Com
mission.
There was some discussion of the title. It was agreed that the
words “reconstruction and development” should be used, but
agreement was not reached as to whether the organization should
be called a “bank”, a “corporation”, or some other name.
It was agreed that sections of the document other than the title
and those sections referred to the drafting committee should be
considered by the various Committees. It was suggested by the
Chairman that when a section is referred to a Committee, the

P R O C E E D I N G S AND D O C U M E N T S

493

Chairman and Reporter of that Committee should have discretion
either to discuss it in full committee or, in consultation with the
Chairman, to appoint ad hoc committees forthwith. It was em
phasized that where ad hoc committees were appointed, countries
not represented on those committees should be perfectly free to
make any suggestions and to attend the committee meetings if
they wished. It was agreed that where ad hoc committees were
set up they should report directly to the Commission.
The Chairman announced that the next meeting of the Com
mission would be held on Thursday, July 13, at which time Com
mittee reports would be received.
At the close of the meeting the Chairman met with Committee
Chairmen and Reporting Delegates and also with the Agenda
Committee. Ad hoc committees were set up and their assignments
are shown in a document distributed with the minutes of the
meeting.
(The assignment sheet and minutes of this meeting are being
distributed separately as documents nos. 298 and 300, respec
tively.)
N otice R egarding
on

ad hoc

A r ticle

C o m m ittee of C ommission I
IX, S ection 4

The Netherlands has been added to the list of members of the
ad hoc committee of Commission I on article IX, section 4 (Ex
change Controls on Current Payments).
(p. 59)
L ist

D o cum ents I ssued

as of

J u l y 1 1 , 1944

Subject

Symbol

Doc. No.

Minutes of Third Meeting of Commission I, July 10

C I/M /3

267

Journal No. 11

J /ll

268

Transportation Form—Estimate of Special Train Space

GD/30

269

Transportation Form—Pullman Sleeper Space on Special
Train

GD/31

270

Order of the Day, July 11

GD/32

271.

Additional Page to SA/3 (p. 15f)

SA/3/1

272

Additional Page to SA/3 (p. 20a)

SA/3/2

273

Additional Page to SA/3 (p. 22e)

SA /3/3

274

494

M ONE TAR Y AND F I N A N C I A L C O N F E R E N C E

Subject

Symbol

Doc. No.

Additional Page to SA/3 (p. 24a)

SA /3/4

275

Additional Page to SA/3 (p. 25a)

SA /3/5

276

Additional Pages to SA/1 (pp. 13a and 13b)

SA/1/48

277

Additional Pages to SA/1 (pp. 50 and 50a)

SA/1/49

278

Minutes of Meeting of Commission III

C III/M /2

279

Drafting Committee of Commission I—Working Paper

CI/DC

280

Memorandum to Committee 2, Commission I (Misc.)

CI/2/M C

281

News Bulletin No. 12

282

Press Release No. 28—Statement by the Delegation of
Panama

PR/28

283

Additional Page to SA/1 (p. 18c)

SA /1/50

284

Tables I and II in Explanation of Combined Alternatives A
and B, Article III, pp. 13a and 13b

SA/1/51

285

Memorandum Submitted to Commission II by the Interim
Commission on Food and Agriculture

CII/M C/1

286

Brazilian Delegation Proposal for a Conference to Promote
Stability in the Prices of Primary International Com
modities

DP/17

287

Draft Resolution Submitted to Commission III by Cuban
Representatives as Alternative A to Motion Filed with
Commission III by the Peruvian Delegation (No. 9, p. 7,
Doc. 235)

DP/18

288

Draft Resolution Submitted to Commission III by Chilean
Representatives as Alternative to Motion Filed with
Commission III by Peruvian Delegation (No. 9, p. 7,
Doc. 235)

D P/19

289

Proposed Amendment by Mexican Delegation to Draft of a
Bank for Reconstruction and Development—Article I,
Purposes of Bank

DP/20

290

(P. 60)

News Bulletin No. 13

291

P R O C E E D I N G S AND D O C U M E N T S

495

Document 300
Cl l/M /2

Minutes of Meeting of Commission II
B

a n k

for

e c o n s t r u c t io n

(July

and

ev elo pm en t

1 1 , 1 9 4 4 , 4 p .m .)

At the second meeting of the Commission, the Chairman, Lord
Keynes (United Kingdom), reported that the Agenda Committee
recommended that the Preliminary Draft of Proposals for the
Establishment of a Bank for Reconstruction and Development
(Document No. 245) be considered by the Commission.
He announced that the following Committee Chairmen and
Reporting Delegates had been nominated by their respective
delegations:
Committee 1:
Chairman: Netherlands, J. W. Beyen
Reporting Delegate: Costa Rica, J. Rafael Oreamuno
Committee 2:
Chairman: Cuba, E. I. Montoulieu
Reporting Delegate: Australia, James B. Brigden
Committee 3:
Chairman: Colombia, Miguel L6pez Pumarejo
Reporting Delegate: Union of South Africa, M. H. de Kock
Committee 4:
Chairman: India, Sir Chintaman D. Deshmukh
Reporting Delegate: Poland, Leon Baranski
The committee work of the Commission was assigned as follows:
Committee 1 (Purposes, Policies, and Capital), articles I, II,
and VI (4)
Committee 2 (Operations), articles III and IV
Committee 3 (Organization and Management), articles V
and VI, except (4)
Committee 4 (Form and Status), articles VII, VIII, IX,
and X
The Chairman suggested that the present Agenda Committee
or a subcommittee thereof constitute the drafting committee for
the Commission. This was agreed to and there was further agree
ment that the drafting committee continue to accept suggestions
from any delegation and refer such suggestions to the Commission
if questions of substance were involved.
After discussion, the Commission arranged its program of work
in the following way:

496

MONETARY AND FINANCIAL CONFERENCE

(a) The following parts of the document were referred to the
drafting committee:
(P. 2)
Art. I
Art. II, 7 and 8
Art. IV, 5, 8, 9, and 10
Art. V, 9, 11, and 13
Art. VI, 5
Art. VII, 1 and 2
Art. VIII
Art. IX, 1 and 3
(b) The following details of the document were considered at
the meeting:
(1) Title of the “bank”. Alternative C was dropped. After some
discussion it was agreed that the words “reconstruction and
development” were preferred to “investment and guarantee”, but
agreement was not reached on whether the organization should
be called a “bank”, a “corporation”, or by some other name.
(2) Article III, section 1. It was agreed that the word “restrict
ed” be deleted from the title of the section and that Alternatives
A and B be combined and amended as follows and referred to the
drafting committee: “The resources and the facilities of the Bank
shall be used exclusively for the benefit of members with equitable
consideration to projects for development and projects for recon
struction alike.”
(3) Article III, section 5, Alternative B. It was agreed that this
Alternative should be considered in conjunction with article III,
section 4, Alternative B.
(4) Article IV, section 3, Alternative B. It was agreed that
this Alternative be considered with article III, section 3.
(c) The sections of the document other than the title and those
sections referred to the drafting committee are to be considered
by the various committees. It was suggested by the Chairman that
when a section is referred to a Committee the Chairman and
Reporter of that Committee should have discretion either to discuss
it in full committee or, in consultation with the Chairman, to
appoint ad hoc committees forthwith. It was emphasized that
where ad hoc committees were appointed, countries not repre
sented on those committees should be wholly free and urged to
make additional suggestions and to attend such committee meet
ings as they might wish. It was agreed that ad hoc committees
should report directly to the Commission.

PROCEEDINGS AND DOCUMENTS

497

The Chairman announced that the next meeting of the Commis
sion would be held on Thursday, July 13, at which time committee
reports would be received. While it is not expected that committee
work should necessarily be complete by that time, it was hoped
that substantial sections of the document could be passed on to
the drafting committee.
(At the close of the meeting the Chairman met with the Com
mittee Chairmen and Reporting Delegates and also with the
Agenda Committee. Ad hoc committees were appointed and
detailed assignments made as shown in Document No. 298. A
subcommittee of the Agenda Committee was appointed to serve
as drafting committee.)

Document 302
C I/ 2 / M 7

Minutes of Meeting of Committee 2 of Commission I
O p e r a t io n s o f t h e F u n d
(Ju ly 11, 1944, 2:30 p.m .)

The seventh meeting of Committee 2 of Commission I was held
on July 11 at 2 :30 p.m.
The Chairman announced that article IV, section 5, Alternatives
A, B, and C (pp. 18, 18a, and 18b of Document SA/1) were
referred by Commission I to an ad hoc committee of Commission
I, and that article III, section 6, Alternatives A and B (pp. 9 and
9a) and article IX, section 4, Alternatives A, B, C, and D (pp. 40,
40a, and 40b) were also referred by Commission I to an ad hoc
committee of Commission I and that all of these items are there
fore removed from the agenda of Committee 2.
The Committee then continued its discussion of article IV, Par
Values of Member Currencies. The Committee agreed to approve
article IV, sections 2, 3, and 4 of Alternative A (p. 17a) and
article IV, sections 5 and 6 of Alternative D (p. 18c). The Com
mittee, however, reserved the right to reopen discussion of section
5 (b) (p. 18c) after it has discussed article III, Alternative A,
section 9 (b)- (p. 12). The Australian Delegate asked that his
reservation on Alternative C (p. 17c) be noted in the report to
Commission I. The Delegates of New Zealand, Czechoslovakia,

498

MONETARY AND FINANCIAL CONFERENCE

and the Netherlands withdrew the reservations they had sent to
the Reporter after the discussion of Alternative A at the last
meeting. The Chairman said that the observation of the Canadian
Delegate was not withdrawn.
The Committee deferred action on article III, section 10,
Charges and Commissions (p. 13), to allow the committee mem
bers more time to study the material. The Committee also deferred
discussion of article XIII, section 5, Fixing Initial Par Values
(p. 50).
The Committee began discussion of the report of the ad hoc
subcommittee of Committee 2 appointed to consider article III,
section 2 (3), Alternatives A, B, D, and F (pp. 6a, 6b, 6c, and 6e)
and will continue discussing this report at its next meeting at 10
a.m. on July 12.

Document 303
C I/3/M 7

Minutes of Meeting of Committee 3 of Commission I
O r g a n iz a tio n a n d M a n a g e m e n t o f t h e F u n d
(Ju ly 11, 1944, 10 a.m.)

The Committee considered article VIII, section 2, Alternative
A (Document 210), dealing with suspension and compulsory with
drawal from the Fund. A number of questions about the inter
pretation of this article were raised in the meeting. After the
discussion, the Committee decided to approve the Alternative,
section 2, 2(a) and 2(b ), with a suggestion to the Drafting Com
mittee of the Commission to state clearly under what conditions
a country would be suspended from using the Fund’s resources
or be compelled to withdraw from membership and the fair pro
cedure therefor. It was the consensus of the Committee that these
sanctions should be applied only when the country’s action directly
affects the operation of the Fund.
The Committee received the report of its subcommittee on
Liquidation and Withdrawal (Document 243).* The Committee
agreed to eliminate from further consideration Alternative B,
article VIII, section 4 (Document 241). It was unable to reach
* Document 243 should be corrected in the third paragraph, line 7, to re a d :
“A lternative B” in place of “A lternative D”. In the fourth paragraph, line 9,
to read: “Alternative C” instead of “A lternative B”.

PROCEEDINGS AND DOCUMENTS

499

agreement on Alternatives A and C for this section and referred
the matter to Commission I. Article VIII, section 3 (p. 36),
Settlement of Accounts with Governments Ceasing to be Members,
was also referred to the Commission for action. No action was
taken on article VII, section 7.

Document 304
(p .

51)

SA/1/53

A l t e r n a t iv e A
A rticle X ffl

Provisions Relating to Signature
and Entry into Force of the Agreement

1. Signature
(a) This Agreement shall remain open for signature at Wash
ington on behalf of the Governments of the countries whose
names are set forth in Schedule A, un til_________, 19_____
(b) A fte r _________, 19_____ , it shall be open for signature
on behalf of the Government of any country whose membership
has been approved in accordance with Article II, Section 1.
(c) By their signature of this Agreement all Governments
accept it both on their own behalf and in respect of all of their
colonies, overseas territories, all territories under their protection,
suzerainty or authority and all territories in respect of which
they exercise a mandate.
(d) Each Government that signs this Agreement will deposit
with the Government of the United States of America an instru
ment setting forth that it has accepted this Agreement in accord
ance with its law and has taken all steps necessary to enable it
to carry out all of its obligations under this Agreement.
(e) The Government of the United States of America shall
inform the Government of all countries whose names are set forth
in Schedule A, and all Governments whose membership is
approved in accordance with Article II, Section 1 of all signa
tures of this Agreement.
S e c tio n

7/11/44

Art. XIII

(p. 51a) ( f ) At the time this Agreement is signed on its
behalf each Government shall transmit to the Government of
the United States of America one-twentieth of one per cent of its

500

MONETARY AND FINANCIAL CONFERENCE

quota in gold or gold-convertible exchange for the purpose of
meeting administrative expenses of the Fund. The Government of
the United States of America shall hold such funds in a special
deposit account and shall transmit them to the Board of Gover
nors of the Fund when the initial meeting has been called under
Section 3 of this Article. If the initial meeting has not been called
b y _________ , 19_____ , the Government of the United States of
America shall return such funds to the Governments that trans
mitted them.
S e c t io n 2. E ntry into Force
As soon as this Agreement has been signed on behalf of Govern
ments having sixty-five percent of the aggregate of the quotas set
forth in Schedule A, this Agreement shall come into force between
those Governments, which thereupon become members of the
Fund. Each Government on whose behalf this Agreement is signed
after that time shall become a member of the Fund as from the
date of its signature.
S e c t io n 3. Organizing the Fund
(a) As soon as this Agreement comes into force under Section
2 of this Article each member shall appoint a Governor and the
Government of the member having the largest quota shall call
the first meeting of the Board of Governors.
7 /1 1 /4 4

Art. X III

(p. 51b) (b) The Board of Governors shall at its first meet
ing elect the Executive Directors and arrange for the first meeting
of the Executive Directors.
(c)
As soon as possible after the first meeting of the Executive
Directors has been held, the Managing Director shall be appointed
and the Fund shall proceed to carry out the provisions of Section
4 of this article. Communications under that section addressed
to the Fund and received before the Executive Directors have
held their first meeting shall be entrusted to the Governor
appointed by the member in whose territory the first meeting is
held and shall be delivered by him to the Board of Governors or
Executive Directors as the case may be.
S e c t io n 4. Fixing Initial Par Values.
[Distributed separately.]

Signed in a single copy which shall remain deposited in the
archives of the Government of the United States of America which
shall transmit certified copies to all Governments whose names
are set forth in Schedule A and to all Governments whose member
ship is approved in accordance with Article II, Section 1.
7 /1 1 /4 4

Art. XIII

PROCEEDINGS AND DOCUMENTS

501

Document 307
C I/ 1 / D C 4

Third Report of the Drafting Committee of Committee 1
of Commission I
(Ju ly 11, 1944)

In view of the action taken by Committee 2 in agreeing on those
parts of Article IV which deal with changes in exchange rates,
the Drafting Committee considered Article I, Section 4, which
deals with the promotion of exchange stability as an objective
of the Fund.
The Drafting Committee recommends that the language of
Alternative A of Section 4, Article I, be approved by the full Com
mittee. The language is as follows:
“To promote exchange stability, to maintain orderly exchange
arrangements among member countries, and to avoid com
petitive exchange depreciation.”
The Drafting Committee wishes to report that the representa
tive of the Australian Delegation reserved the Australian position
on this section in favor of Alternative D, page lb of Document
SA/1.
The Drafting Committee recommends the following language
for Article IX, Section 2 (p. 38 of S A /1 ):
“The Fund shall prescribe for transactions in gold by member
countries a permissible margin above and below the agreed
parity. No member country shall buy gold at a price above
the prescribed range, nor sell gold at a price below that
range.”
This language permits member countries to buy gold below
the range and to sell gold above the range.
The Committee considered Alternative C relating to this section,
page 39b, but does not recommend the inclusion in this agreement
of special provisions for bonuses to the gold mining industry of
member countries.
The Drafting Committee recommends the following language
for Article IX, Section 3, paragraph (a), which deals with the
(p. 2) range of exchange transactions over and under the agreed
parities:
“ (a) The Fund shall prescribe a uniform maximum margin
not exceeding-------- % by which rates for transactions in the

502

MONETARY AND FINANCIAL CONFERENCE

currencies of members may differ from parity. In exceptional
circumstances the Fund may authorize a member country to
establish a wider margin for transactions in its currency.”
The Drafting Committee felt that the insertion of a figure in
the above paragraph and the decision as to whether the prescribed
margin should apply to spot transactions only or to both spot and
future transactions were matters of substance to be decided by
the full Committee. In the discussion of this section some of the
members of the Drafting Committee expressed a preference for
leaving out the words “not exceeding-------The Drafting Committee considered Alternatives A and B of
Article IX, Section 3, Paragraph (c) (pages 39 and 39a), Docu
ment SA/1. The Committee as a whole was not in favor of the
wording of Alternative B but the position of the representative of
the United Kingdom on this Alternative was reserved.
There was some feeling in the Committee in favor of an under
taking on the part of member countries to cooperate in dealing
with illegal exchange transactions milder than is provided either
in Alternative A or B. The Committee therefore submits to the
full Committee the following language for its consideration:
“Article IX, Section 3.
“ (c) Exchange transactions in the territory of one mem
ber involving the currency of any other member which are
outside the prescribed variation from parity set forth in (a)‘
above shall not be enforceable in the territory of any member
country.
“Each member agrees to cooperate with other members in
their efforts to effectuate exchange regulations prescribed by
such members in accordance with this Agreement.”
The above language is not submitted as a definite recommenda
tion by the Drafting Committee but merely as a possible third
alternative for the consideration of the full Committee.

Document 310

(p. 26j )

S A /1 /5 4

A l t e r n a t iv e J
Alternative J is submitted as a substitute for P aragraph 2 of the “Final
Alternative submitted by the Special Committee . . . et cetera” (C I/3/SI,

P R O C E E D I N G S AND D O C U M E N T S

503

Doc. 212 and for Schedule B in the “ Combined A lternative A and B . .
(SA/1/17, Doc. 152, page 26).

2. There shall be twelve Executive Directors of whom
(a) five shall be appointed by the five members having
the largest quotas,
(b) five shall be elected by the remaining members, other
than the American Republics, and
(c) two shall be elected by the American Republics, exclusive
of any entitled to appoint an Executive Director under
(a), above.
Elections shall be conducted biennially in accordance with the
provisions of Schedule B. Persons chosen as Executive Di
rectors need not be Governors.
SCHEDULE B

(a) In balloting for the five Executive Directors to be elected
under 2(b), above, each of the governors eligible to vote shall cast
for one person all of the votes to which he is entitled under the
first paragraph of Section 3 of this article (J.S. VII, 2). The five
persons receiving the greatest number of votes shall be Executive
Directors, except that no person who receives less than nineteen
per cent of the aggregate eligible votes shall be considered elected.
(b) When five persons are not elected on the first ballot, a
second ballot shall be held in which the person receiving the lowest
number of votes shall be ineligible for (p. 26k) election and in
7 /1 2 /4 4

Art. V II Sec. 2 and
Schedule B of
Com bined Alternatives
A and B

which there shall vote only those governors who voted on the first
ballot for a person not elected and those governors all or part of
whose votes for a person elected are deemed to have raised the
votes cast for that person above twenty per cent of the aggregate
eligible votes.
(c) In determining whether any part of the votes cast by a
governor are to be deemed to have raised the total of any person
above twenty per cent, there shall be considered as not forming
part of the excess over twenty per cent the votes of the governor
casting the largest number of votes for such person, then the
votes of the governor casting the next largest number, and so on
until the total reaches twenty per cent.
(d) Any governor whose votes are partly not in excess and
partly in excess shall be eligible to vote in the second balloting
only to the extent of the votes in excess.
749013— 48— 33

504

MONETARY AND FINANCIAL CONFERENCE

(e) If on the second ballot, five persons have not been elected,
further ballots shall be taken on the same principles until five
persons have been elected, provided that after four persons are
elected, the fifth may be elected by a simple majority of the re
maining votes and shall be deemed to have been elected by all
such votes.
(f) The balloting for the two Executive Directors to be elected
by the American Republics under 2(e) above shall be conducted
as follows:
(1) Each of the Directors shall be elected separately.
(2) In the election of the first Director, each governor repre
senting an American Republic eligible to (p. 261) participate
7/12/44

Art. VII Sec. 2 and
Schedule B of
Combined Alternatives
A and B

in the election shall cast for one person all the votes to which he
is entitled under the first paragraph of Section 3 of this Article
(J.S. VII-2).
The person receiving the largest number of votes shall be elected
provided that he has received not less than 45 per cent of the ag
gregate eligible votes.
(3) If no person is elected on the first ballot, then further ballotings shall be held, at each one of which the person receiving the
lowest number of votes shall be eliminated, until one person is
elected in accordance with the provisions of paragraph (2) above.
(4) Governors whose votes contributed to the election of the
first Director shall take no part in the election of the second
Director.
(5) Persons who did not succeed in the first election shall,
nevertheless, be eligible for election as the second Director.
(6) The second Director shall be elected in the same manner
as the first except that only a majority of the votes participating
shall be required for election. If at the first ballot no person re
ceives a majority vote, then further ballotings shall be taken at
each one of which the person receiving the lowest number of votes
shall be eliminated, until only two persons are left, at which time
the person receiving the largest number of votes shall be elected.
(7) The second Director shall be deemed to have been elected
by all the votes eligible to participate in the second election.
7/12/44

Art. VII Sec. 2 and
Schedule B of
Combined Alternatives
A and B

P R O C E E D I N G S AND D O C U M E N T S

505

Document 311

CI/AH/RP2
July 11,1944

A d hoc Committee of Commission I on Relations

with Non-Member Countries
The following text is submitted to Commission I by the A d hoc Committee on
Relations with Non-Member Countries.

The following material is suggested as a new section to be added
to Article IX, Obligations of Member Countries:
Each Member Country agrees:
(a) Not to undertake any transactions with a non-member
country which would be contrary to the purposes and pro
visions of the Fund, and not to allow its agencies with the
Fund to undertake such transactions,
(b) Not to cooperate with non-member countries in practices
which are against the purposes and provisions of the Fund,
(c) To cooperate with the Fund in order to apply appropriate
measures to prevent transactions with non-member coun
tries which are contrary to the purposes and provisions of
the Fund.

Document 313

(p. e)

SA/3/8

A lte r n a tiv e J
A rticle I

Purposes of the Bank

The Bank shall be guided by the following purposes:
1. To assist in the reconstruction and development of member
countries by facilitating provision of investment capital for
productive purposes including the restoration of economies
disrupted by war and the reconversion of productive facilities
to peacetime needs.
2. To promote private foreign investment by means of guar
antees or participations in loans and other investments made
by private investors; and when private capital is not avail
able on reasonable terms, to supplement private financial
agencies by providing capital for productive purposes out of
its own resources on suitable conditions.

506

M O N E T A R Y AND F I N A N C I A L C O N F E R E N C E

3. To promote the long-range balanced growth of international
trade by encouraging international investment for the de
velopment of the productive resources of member countries.
4. To coordinate loans made or guaranteed by it with inter
national loans through other channels so that the more useful
and urgent projects will be dealt with first.
5. To conduct its operations with due regard to the effect of
international investment on business conditions in member
countries and, in the immediate post-war years, to assist
in bringing about a smooth transition from a wartime to a
peace-time economy.
7/12/44

Art. I
Alt. J

Document 314

(p. 12a)

SA/3/9

A l t e r n a t iv e C
(A lternative A as amended in Commission Meeting, July 11)
S e c t i o n 1. The resources and facilities of the Bank shall be
used exclusively for the benefit of member countries with due
regard to the extreme urgency of immediate post-war recon
struction of war torn areas.
7/12/44

Art. Ill
Sec. 1
Alt. C

Document 315

(p. 25h)

SA/1/55
A l t e r n a t iv e E

(Substitute for A rticle VII, I of the Joint Statem ent—as a variant
for A lternative C, p. 25d)

Formation Of the Executive Committee:
The Executive Committee shall consist of fifteen executive di
rectors, appointed as follows:
(1) Five directors representing each one of the member coun
tries having the largest quotas.
(2) Three directors representing the member countries in the
economic area of the British Empire.
(3) Three directors representing the member countries in the
economic area of the American Republics.

PROCEEDINGS AND DOCUMENTS

507

(4 ) One director representing the mid-east countries.
(5) Three directors representing the member countries in all
other economic areas.
Each director shall have an alternate appointed in the same
manner. Executive directors and their alternates need not be
governors and may be reappointed.
7/12/44

J.S.Art.VII
Sec. 1

Document 316

(p .

43c)

S A / 1/56

J o i n t S t a t e m e n t —No

Provisions

The following material has been suggested as an addition to
Article IX.

# S e c tio n

9. Obligations of Member Countries.
Each Member Country agrees:
(a) Not to undertake any transactions with a non-member
country which would be contrary to the purposes and pro
visions of the Fund, and not to allow its agencies with
the Fund to undertake such transactions,
(b) Not to cooperate with non-member countries in practices
which are against the purposes and provisions of the Fund,
(c) To cooperate with the Fund in order to apply appropriate
measures to prevent transactions with non-member coun
tries which are contrary to the purposes of the provisions
of the Fund.

7/12/44

J.S. Art. IX
A d dition Section (9)

Document 317
DP/21

Egyptian Delegation

Amendment to Article VII, I of the Joint Statement
The Egyptian Delegation suggests the following amendment,
which is a variant of Alternative C, page 25d.
Formation of the Executive Committee:
The Executive Committee shall consist of fifteen executive di
rectors, appointed as follows:

508

MONETARY AND FINANCIAL CONFERENCE

(1) Five directors representing each one of the member coun
tries having the largest quotas.
(2) Three directors representing the member countries in the
economic area of the British Empire.
(3) Three directors representing the member countries in the
economic area of the American Republics.
(4) One director representing the mid-east countries.
(5) Three directors representing the member countries in all
other economic areas.
Each director shall have an alternate appointed in the same
manner. Executive directors and their alternates need not be
governors and may be reappointed.

Document 318
C I/ 3 / R P 3

Third Report of Committee 3 to Commission I.
I.
Committee 3 submitted to Commission I for decision one item
about Voting in the Board of Governors (Document 239, page 5,
first paragraph). The difference of opinion in Committee 3 related
to the second paragraph of Alternative A of Section 3 of Art. VII
of the Draft (pages 26 of the Draft). This paragraph contains
a specific provision on votes required under Article III. It should
be noted that the member, who presented Alternative A, inter
preted this proposal by restricting the respective decisions under
Article III, to two items: (a) to the decision of the Fund of sus
pending a member from making further use of the Fund’s resources
on the ground that it is using them in a manner contrary to the
purposes and policies of the Fund (III, 2d of the Joint Statement)
and (b) to the decisions of the Fund in exercising its discretion
in determining whether and on what terms it shall waive the
conditions mentioned under III, 2a to d of the Joint Statement.
The Committee expressed its desire that paragraph 2 should
be more clearly drafted if adopted for the Final Draft.
However, as to the merit of this paragraph three opinions were
advanced: one approving it, as contained in Alternative A; the
other modifying it by replacing the unit of two hundred thousand

PROCEEDINGS AND DOCUMENTS

509

United States dollars by two million United States dollars and the
third outrightly opposing this deviation from the normal voting
procedure. Commission I did not take action on this item. That
is why these three Alternatives are hereby submitted again to Com
mission I for decision.
II.
Committee 3 did not consider Section 9 of Art. VII—Location
of Office. Action will be taken probably by Commission I directly.
III.
Committee 3 considered Section 2 of Art. VII (Suspension of
Membership or Compulsory Withdrawal, page 35 of the Draft).
Alternative A was accepted with a suggestion to the Drafting
Committee of the Commission to state clearly under what con
ditions a country would be suspended from using the Fund’s
resources or be compelled to withdraw from membership and the
fair procedure therefor. It was the consensus of the Committee
that these sanctions should be applied only when the country’s
action directly affects the operation of the Fund.
(p. 2)
IV.
Committee 3 considered jointly Sections 3 and 4 of Art. VIII.
(Settlement of Accounts with Countries Ceasing to be Members,
and Liquidation of the Fund, pages 36, 36a, 36b, 36bb, 36c, 36d,
36e, 36f, 37, 37a, 37b, 37c of the D raft). Committee 3 based its
discussion and its recommendations to Commission I on a Re
port submitted by a Subcommittee which worked under the chair
manship of Mr. Camille Gutt, and is included in Document 243.
The result of the deliberations of Committee 3 is the following:
Liquidation of the Fund (Art. VIII, Sec. 4.)
Paragraph (a) as contained in Alternative A (page 37 of the
Draft) was approved.
Paragraph (b) as contained in Alternative A was approved
in the following version:
“If a decision to liquidate the Fund is carried, (i) the Fund
shall forthwith cease to engage in any activities except those in
cident to an orderly liquidation of its assets and the settlement
of its liabilities, and (ii) all the obligations of members under
this agreement other than those specified in the following para
graphs of this Section and.................................. shall cease to have

510

MONETARY AND FINANCIAL CONFERENCE

effect.” (The dotted space indicates that there may be some other
obligations remaining, which are not directly connected with the
liquidation; these other obligations may be inserted here by the
Drafting Committee.) The Committee was of the opinion that
this clause might be inserted either at this place or in some
other Section of the document relating to the obligations of the
•members, at the discretion of the final drafting committee.
Paragraph (c) was adopted without change.
Paragraph (d) was considered in the light of Alternatives A,
B, and C. Alternative B is, among the three Alternatives, the
broadest because it confers upon the Board of Governors the
jurisdiction to decide how the assets of the Fund shall be distrib
uted after the discharge of the liabilities in case the Board of
Governors should choose to liquidate the Fund. Thus the first per
tinent question submitted to Commission I is tvhether the principles
concerning the distribution of assets should be included into the
Constitution of the Fund, or whether they should be determined
by the Board of Governors in the case that this agency chooses to
liquidate the Fund.
The following considerations are based on the assumption that
Commission I chooses to include into the (p. 3) Constitution
the principles c o n c e r n in g the d istr ib u tio n of assets, thus they are
based on Alternatives A and C (with reference to paragraph d).
According to Alternative A, in the words of the Chairman of the
Subcommittee, the creditor countries (beginning with the'largest
creditor) will be paid first in their own currency, as far as it is
held by the Fund, then in gold, as far as gold is held by the Fund.
The balance (if any) is paid in the currency of the next largest
creditor and then in that of the next largest creditors. Alterna
tive C provides that each country shall have a prior claim up to
its quota to its own currency held by the Fund and that the re
maining assets (including gold and currencies) shall then be dis
tributed proportionally to the remaining credit balances. In the
opinion of the Chairman of the Subcommittee, in the process of a
liquidation according to Alternative A, the largest creditor or
creditors may absorb the whole of the gold and/or strong cur
rencies, whilst according to Alternative C the gold and currencies
will be divided proportionately. Committee 3 refers Alternatives
A and C (with reference to paragraph d) to Commission I for
decision provided that Commission I did not choose previously
Alternative B.

PROCEEDINGS AND DOCUMENTS

511

Paragraph (e) was accepted in principle. However, one mem
ber favored a five-year term for redemption of its excess cur
rency instead of the three-year period provided for in Amend
ment A. Thus, Committee 3 decided to refer the tivo Alternatives
(redemption within three or five years) to Commission I for de
cision. This paragraph includes the provision that members who
are under obligation to redeem their currency under this para
graph, unconditionally guarantee at all times the unrestricted use
of such currency for the purchase of goods or for the payment of
other sums due to it or to its nationals. It was suggested in the
Committee that the Drafting Committee should consider how to
shape this provision in the light of possible exchange and trade
regulations and existing private contracts.
Settlement of Accounts with Governments Ceasing to be Members.
Committee 3 considered Alternatives A, B, and C (pages 36, 36a,
36b, 36c, 36d, 36e, and 36f) in the light of the Report of its Subcom
mittee (Document 243). It was suggested that Article VIII, Sec
tion 3 (a) be amended with the insertion after the first sentence
of the following: “Failing such agreement settlement shall be
made in accordance with the provisions of (c), (d) and (e).”
However, no agreement was reached which of the three Alterna
tives should be recommended for adoption. The discussion focused
on the same point as mentioned in this Report in connection with
Art. VIII, 2(d) (Liquidation of the Fund). It was assumed that
after decision is taken by Commission I on the provision contained
in VIII, 2d of the Draft (p. 4) (Liquidation of the Fund)
it will be feasible for the Drafting Committee to combine the three
Alternatives. It has been suggested that the Drafting Committee
clarify paragraph (f) as far as the exchange rate of currencies
which have to be acquired is concerned, because the currency of
the country which has left the Fund may deteriorate, and in
demnification is provided for (last sentence of par. f, Alternative
A) only in respect to the Fund.
If Commission I would find that the coordination of the pro
visions of the Section concerning “Settlement of Accounts with
Governments Ceasing to be Members” would transcend the scope
of its Drafting Committee, an Ad Hoc Committee could be charged
with that task.
Committee 3 considers to have completed the work on its as
signment.

E r v in H e x n e r ,

Reporting Delegate,

512

MONETARY AND FINANCIAL CONFERENCE
Document 319

(p. 61)

JOURNAL
UN ITED

N A T I O N S

N o. 13

M O N E T A R Y

A N D

Bretton W o o d s, N ew

ORDER

F I N A N C I A L

.C O N F E R E N C E

H am pshire

THE

July 13, 1944

DAY

Meetings for Thursday, July 13
9:30
11
11:30
2:30
5
8:30

a.m.
a.m.
a.m.
p.m.
p.m.
p.m.

Committee 3A of Commission II .............. ....... Room A
D rafting Committee of Commission I ...... ....... Room B
Committee 3B of Commission II ................ ....... Room A
Commission I .................................................. ....... Auditorium
Commission II ................................................ ....... Auditorium
Committee 3 of Commission III ................ ....... Room A

(p. 62)
R e s u m e s o f C o m m i t t e e M e e t in g s

Committee 1 of Commission I
P u rp oses, P o lic ie s, an d Q u otas o f th e F u n d
(Ju ly 12, 2:30 p.m .)

The Committee considered section 5, article II, as submitted
by the drafting committee and decided to refer the question
of the date to be inserted in paragraph (b) to Commission I
on the ground that there had been insufficient time to consider
the question.
The Committee agreed to drop Alternative F, article I (p. lc
of SA /1). It also considered Alternatives C (p. 2b) and D
(p. 4b) under article II and referred them to Commission III.
It then considered article IX, section 8, Alternative A (p. 43b),
and agreed that this matter was covered elsewhere.
The third report of the language subcommittee was then
considered. The recommendations to accept section 4, article I,
and section 2, article IX (p. 38), were adopted. The Committee
then referred to Commission I the proposed language for article
IX, section .3, paragraph (a), since the matter is related to
questions under consideration by Committee 2.
Alternatives A and B of article IX, section 3, paragraph
(c) (pp. 39 and 39a), as redrafted by the language subcommittee,
were considered. It was decided to refer the redraft and Alter
natives A and B to Commission I.
(The minutes of this meeting are being distributed separately
as document no. 326.)

PROCEEDINGS AND DOCUMENTS

513

Committee 2 of Commission I
O p eration s o f th e F u n d
(Ju ly 12, 10 a.m. and 2:30 p.m .)

The Committee accepted the report of the ad hoc subcom
mittee that article III, section 2, paragraph (3), be approved
as it stands in Alternative A (p. 6a). The Committee accepted
the report of the ad hoc subcommittee that the sentences fol
lowing paragraph (4) of article III, section 2 (p. 6a), be revised,
and amended the revision as proposed by the subcommittee.
(p. 63)
The Committee agreed on the principles involved in article
III, section 10, Charges and Commissions, combined Alternatives
A and B, (pp. 13a and 13b), but there was considerable diver
gence of views as to the nature and amount of the charges.
Alternative C (p. 13b) was also discussed and received sub
stantial support.
The Committee accepted the wording of article III, section
12, Consideration of Representations of the Fund (p. 15), recom
mended by the language subcommittee.
The Committee agreed to eliminate article III, section 9,
Transferability and Guarantee of the Assets of the Fund, para
graph (b) (p. 12), and a subcommittee was appointed to revise,
in the light of the Committee’s discussion, the proposal made
on page 4 of Document 281.
The Committee approved article IV, section 5, Changes in
Par Values, paragraph (b), Alternative D (p. 18c).
The Committee discussed article XIII, section 5, Fixing of
Initial Par Values, Document 278 (p. 50), Alternative A (p.
50b), Alternative B (presented orally), and Alternative B (p.
16a). The Committee approved paragraphs (a), (b), (c), and
(d) of Document 278 and Alternative B as presented orally,
and appointed a subcommittee to expand Alternative B to meet
in part the proposals made in Alternative B (p. 16a) and Alter
native A (p. 50b).
(The minutes of this meeting are being distributed separately
as document no. 325.)
N o tic e R e g a rd in g D o c u m e n t 243

Document 243, “Report of Subcommittee of Committee 3 of
Commission I on Liquidation and Withdrawal”, should be cor
rected in the third paragraph, line 7, to read “Alternative B”
in place of “Alternative D”. In the fourth paragraph, line 9,
“Alternative C” should be substituted for “Alternative B”.

514

MONETARY AND FINANCIAL CONFERENCE

(P. 64 )
L ist o f D o c u m e n t s I ssu e d as o f J u l y 1 2 , 1 9 4 4
Subject

Sym bol

Doc . No.

Revised Telephone Directory, UNMFC, July 12
Additional Page to SA/3—A lternative G;
Article I—Submitted by Mexican Delegation
( P . 2d) ....................................................................
Additional Page to SA/1—Alternative A,
Article X III, sec. 5 (p. 50b)..............................
Proposed Revised Wording of Article II, sec. 5,
p. 4 of SA/1—by D rafting Committee of
Commission I and Submitted to Committee 1
Proposals by Ad Hoc Subcommittee, Committee
2, Commission I, July 11, on Article III, 2 and
3, Alternative A (p. 6a), A lternative B (p.
6b), A lternative D (p. 6c), and Alternative
F (p. 6 e )................................................................
Additional •Page for SA/3—Alternatives H and
I, Article I (p. 2 d ) ..............................................
Commission II— Schedule of Work Assignments
to Committees and Subcommittees of Bank
Commission ............................................................
Journal No. 12............................................................
Minutes of Meeting of Commission II, July 11,
4 p.m........................................................................
Order of the Day, July 12....................................
Minutes of Meeting of Committee 2, Commission
I, July 11, 2:30 p.m...........................................
Minutes of Meeting of Committee 3, Commission
I, July 11, 10 a.m.................................................
Additional Page to SA/1—Alternative A, P ro
visions Relating to Signature and E ntry into
Form of Agreement..............................................
News Bulletin No. 14............................................
Press Release No. 29—Statement by Mexican
Delegation ..............................................................
Third Report of D rafting Committee of
Committee 1, Commission I ..................................

GD/33 (13)

(114)
292

(p . 65)
Additional Pages to SA/1 (pp. 26j, k, 1 )..........
Report of A d Hoc Committee to Commission I
on Relations with Non-Member C ountries.. . .
News Bulletin No. 15..............................................
Additional Page to SA/3—Alternative J,
Article I, Purposes of the Bank (p. 2 e )___
Additional Page to SA/3—A lternative C,
Article III, sec. 1, A lternative A as Amended
in Commission Meeting, July 11 (p. 1 2 a )___

SA/3/6

293

SA /1/52

294

CI/1/DC3

295

C I/2/A H

296

SA /3/7

297

C II/
J/1 2

298
299

C II/M /2
GD/34

300
301

C l/2/M 7

302

CI/3/M 7

303

SA/1/53

304
305

PR/29

306

CI/1/DC4

307

SA/1/54

310

C I/A H /R P2

311
312

SA /3/8

313

SA /3/9

314

PROCEEDINGS AND DOCUMENTS

Sym bol

S ubject

Additional Page to SA/1—Alternative E,
Article VII, sec. 1 (V ariant of Alternative C,
p. 25d) (p. 2 5 h )..................................................
Additional Page to SA/1—Joint Statement, No
Provisions—Article IX, Additional sec. 9 ___
Egyptian Delegation Amendment to Article VII,
I of Joint Statement (V ariant of Alternative
C, p. 2 5 d )..............................................................
Third Report of Committee 3, Commission I,
July 12 ..................................................................

Doc. No.

SA/1/55

315

SA/1/56

316

DP/21

317

CI/3/RP3

318

Document 320
G l/D C /1

Report of Drafting Committee of Commission I— Annex I
O u t l i n e o f A r t ic l e s a n d S e c t io n s o f F u n d A g r e e m e n t
(References are to pages of SA/1)

Introductory Article (New)
I. Purposes (I-p. 1)
II. Membership (II, in part)
1. Original members (p. 2)
2. Other members (p. 2)
III. Quotas and Subscriptions (II, remainder)
1. Quotas (p. 2)
2. Adjustment of quotas (p. 2)
3. Subscriptions: time, place and form of payment
(p. 2, p. 5)
4. Payments when quotas are changed (p. 2, p.* 5)
5. Substitution of securities for currency (p. 29)
IV. Par Values of Currencies (IV)
1. Expression of par value (p. 16)
2. Gold purchases based on parity (p. 38)
*3. Foreign exchange dealings based on par values
(p. 39)
4. Obligations regarding exchange stability (p. 17a)
5. Changes in par values (p. 17a)
*Text not yet available.

516

MONETARY AND FINANCIAL CONFERENCE

6. Action by the Fund on proposed changes (p. 17aa)
7. Effect of unauthorised changes (p. 17aa)
*8. Uniform changes in par values (p. 18)
9. Maintenance of gold value of the Fund’s assets
(P. 19)
10. Separate currencies within a member’s territories
(p. 20)
(P. 2)
V.

Transactions with the Fund (III, in part)
1. Agencies dealing with the Fund (p. 5)
2. Limitation on the Fund’s operations (p. 7)
3. Conditions governing use of the Fund’s resources,
(p. 6a)
4. Waiver of conditions (p. 6a)
5., Ineligibility to use the Fund’s resources (p. 6b)
6. Purchases of currencies from the Fund with gold
(P. 10)
*7. Other acquisitions of gold by the Fund (p. 11)
*8. Charges and commissions (p. 13)
VI. Capital Transfers (V; III)
1. Use of the Fund’s resources for capital transfers
(P. 21)
2. Special provisions for capital transfers (p. 6a)
3. Control of capital transfers (p. 22)
VII. Scarce Currencies (VI; III, in part)
1. General scarcity of currency (p. 23b)
2. Measures to maintain the Fund’s holdings of scarce
currencies (p. 6a)
3. Scarcity of the Fund’s holdings (p. 23b)
4. Administration of restrictions (p. 23c)
5. Effect of other international agreements or restric
tions (p. 23c)
VIII. General Obligations of Members (IX, in part; III, in
part; VII, in part)
1. Introduction (p. 38)
*2. Exchange controls on current payments (p. 40)
*3. Multilateral clearing (p. 9)
*4. Acceptance of currency purchased from the Fund
(P. 12)
*5. Furnishing of information (p. 14c)
6. Consultation between members regarding existing
international agreements (p. 48)

*T ext not y et available.

PROCEEDINGS AND DOCUMENTS

IX.

517

Status, Immunities and Privileges of the Fund (IX, in
part; III, in part)
1. Purposes of Article (New)
2. Status of the Fund (p. 33)

(p. 3)

X.
XI.

XII.

*XIII.
XIV.

*XV.
XVI.
(P- 4)
XVII.
*XVIII.

3. Immunity from judicial process (p. 41)
4. Immunity from other action (p. 41)
5. Freedom of assets from restrictions (p. 12)
6. Exemption of officers and employees from suit (p.
4D
7. Immunity of officers and employees from restric
tions (New)
8. Privilege for communications (New)
9. Privilege of officers and employees in respect of
travel (New)
10. Immunities from taxation (p. 43a)
11. Application of Article (p. 43a)
Relation with Other International Organizations (VII-8,
p. 30)
Organization and Management (VII, in part)
1. Structure of the Fund (New)
2. Board of Governors (p. 24)
3. Executive Directors (p. 26)
4. Managing Director and staff (p. 26)
*5. Voting (p. 26)
6. Distribution of net income (p. 32)
7. Publication of reports (p. 28)
8. Communication of views to members (p. 15)
Offices and Depositories (VII, in part; III, in part)
*1. Location of offices (p. 31)
2. Depositories of the Fund (p. 29)
3. Guarantee of the Fund’s deposits (p. 12)
Transitional Period (X)
Withdrawal from Membership (VIII, in part)
1. Right of members to withdraw (p. 34)
2. Compulsory withdrawal (p. 35)
3. Settlement of accounts after withdrawal (p. 36)
Liquidation of the Fund (VIII, -4, p. 37)
Amendments (XI, p. 45)
Interpretation (XII-1, p. 46)
Definitions (XII-2, p. 47)

T e x t not yet available.

518

MONETARY AND FINANCIAL CONFERENCE

XIX.

Final Provisions (XIII)
1. Signature (p. 51)
2. Entry into force (p. 51a)
3. Inauguration of the Fund (p. 51a)
*4. Initial determination of par values (p. 51b)

Document 321
C l/D C /2

Report of the Drafting Committee
of Commission I— Annex II
A r t ic l e s o f A g r e e m e n t o f t h e
I n t e r n a t io n a l M o n e t a r y F u n d

The Governments on whose behalf the present Agreement is
signed agree as follows:—
Introductory Article
The International Monetary Fund is established and shall
operate in accordance with the following provisions:
Article I. Purposes
The purposes of the International Monetary Fund are:
(a) To promote international monetary cooperation through
a permanent institution which provides the machinery for con
sultation on international monetary problems.
(b) To facilitate the expansion and balanced growth of
international trade, and to contribute thereby to the promotion
and maintenance of high levels of employment and to the develop
ment of the sources of productive power in the territories of all
members as primary objectives of economic policy.
(c) To give confidence to members by making the Fund’s
resources available to them under adequate safeguards, thus
providing them with opportunity to correct maladjustments in
their balance of payments without resorting to measures de
structive of national or international prosperity.
(d) To promote exchange stability, to maintain orderly ex
change arrangements among member countries, and to avoid
competitive exchange depreciation.
(p. 2) (e) To assist in the establishment of a multilateral
*T ext not yet available.

P R O C E E D I N G S AND D O C U M E N T S

519

system of payments in respect of current transactions between
members and in the elimination of foreign exchange restrictions
which hamper the growth of world trade.
(f) In accordance with the above, to shorten the duration and
lessen the degree of disequilibrium in the international balances
of payments of members.
The Fund shall be guided in all its decisions by the purposes
set forth above.
Article II. Membership
S ection 1. Original Members.
The original members of the Fund shall be those of the countries
represented at.the United Nations Monetary and Financial Con
ference whose governments accept membership in accordance with
Article XIX, Section 1.
S ection 2. Other Members.
Membership shall be open to other countries at such times and
in accordance with such terms as may be prescribed by the Fund.
Article III.

Quotas and Subscriptions

S ection 1.

Quotas.
Each member shall be assigned a quota. The quotas of the
members represented at the United Nations Monetary and Finan
cial Conference which accept membership in accordance with
Article XIX, Section 1, shall be those set forth in Schedule A
annexed hereto subject to subsection (b) of that Section.
(a)
Quotas of other members shall be determined by the
Fund.
(P- 3)
Adjustment of Quotas
The Fund shall at intervals of five years review and, if it deems
it appropriate, propose an adjustment of the quotas of the mem
bers. It may also, if it thinks fit, consider at any other time the
adjustment of any particular quota at the request of the member
concerned. A four-fifths majority vote shall be required for any
change in quotas and no quota shall be changed without the
consent of the member concerned.

S ection 2.

S ection 3.

Subscriptions: Time, Place and Form of Payment
(a) The subscription of each member shall be equal to its
quota and shall be paid in full to the Fund at the appropriate
depository on or before the date fixed under Article XIX, Section
4, for exchange transactions in the member’s currency to begin.
(b) Each member shall pay in gold as a minimum either (i)
749013 — 48 — 34

520

MONETARY AND FINANCIAL CONFERENCE

twenty-five per cent of its quota or (ii) ten per cent of its official
holdings of gold and gold convertible exchanged as a t ---------,
whichever is the smaller. If the holdings of any member as at
such date are not ascertainable because its territories have been
occupied by the enemy, the Fund shall fix an appropriate alterna
tive date. Each member shall furnish to the Fund the data
necessary to determine its official holdings of gold and gold
convertible exchange.
(c)
Each member shall pay the balance of its quota in its own
currency.
(P- 4 )

Payments when quotas are changed
(a) Each member shall pay within thirty days of the date on
which it approves an increase in its quota twenty-five per cent of
the increase in gold and the balance in its own currency. If,
however, on the date when the member approves an increase, its
holdings of gold and gold convertible exchange are less than its
new quota, the Fund may reduce the proportion of the increases
to be paid in gold.
(b) The Fund shall pay each member whose quota is reduced
within thirty days of the date' on which the member approves
the reduction an amount equal to the reduction. The payment
shall be made in the currency of that member and in such amount
of gold as may be necessary to prevent reducing the Fund’s
holdings of that member’s currency below seventy-five per cent
of its new quota.
S e c t io n 5. Substitution of Securities for Currency.
The Fund shall accept from any member in place of any part
of the member’s currency not needed by the Fund in its opera
tions, notes or similar obligations issued by the member or the
depository designated by such member, which shall be nonnegotiable, non-interest bearing and payable at their par value
on demand by a credit, to the account of the Fund in the territory
of the member. This section shall apply not only to currency
subscribed by members but also to any currency otherwise
acquired by the Fund.
(p. 5)
Article IV. Par Values of Currencies
S e c t io n 1. Expression of Par Values.
(a) The par value of the currency of each member shall be
S e c t io n 4.

(i)The phrase “gold and gold convertible exchange” is subject to definition
and to such change in terminology as may be agreed upon.

PROCEEDINGS AND DOCUMENTS

521

expressed in terms of gold, as a common denominator, or in
terms of a gold-convertible currency unit of the weight and
fineness in effect on July 1,1944.
(b)
All computations relating to currencies of members for
the purpose of applying the provisions of this Agreement shall be
on the basis of their par values.
S ec t io n 2. Gold Purchases Based on Parity.
The Fund shall prescribe for transactions in gold by members
a permissible margin above and below parity. No member shall
buy gold at a price above parity plus the prescribed margin, nor
sell gold at a price below parity minus the prescribed margin.
S e c t io n 3. Foreign Exchange Dealings Based on Par Values.
(Text not yet available.)

4. Obligations Regarding Exchange Stability.
(a) The members agree that they will collaborate with the
Fund to promote exchange stability, to maintain orderly exchange
arrangements among members, and to avoid competitive exchange
alterations.
(b) A member shall not propose a change in the par value
of its currency except to correct a fundamental disequilibrium.

S e c tio n

Changes in Par Values.
A change in the par value of a member’s currency may be made
only on the proposal of the member and only after consultation
with the Fund. When a change is proposed, (p. 6) the Fund
shall first take into account the changes, if any, which have
already taken place in the initial par value of the member’s
currency. If the proposed change, together with all previous
changes, whether increases or decreases:
S e c t io n 5.

(a) does not exceed ten percent of the initial par value, the
Fund shall raise no objection;
(b) does not exceed a further ten percent of the initial par
value, the Fund may either concur or object, but shall declare
its attitude within seventy-two hours if the member so
requests;
(c) is not within (a) or (b) above, the Fund may either
concur or object, but shall be entitled to a longer period than
seventy-two hours in which to declare its attitude.
Action by Fund on Proposed Changes.
(a)
The Fund shall concur in a proposed change under
Section 5(b) or (c) above if it is satisfied that the change is
necessary to correct a fundamental disequilibrium. In particular,
S ec t io n 6.

522

MONETARY AND FINANCIAL CONFERENCE

provided it is so satisfied, it shall not object to a proposed change
on the ground of the domestic social or political policies of the
member proposing the change.
(b)
The Fund shall also concur in a proposed change under
Section 5(b) or (c) if it is satisfied that such change will not
affect the international transactions of the member proposing the
change.
(p. 7) (c) If the Fund is not satisfied in accordance with (a)
or (b) above, and deems the proposed change unjustified, having
regard to the proper working of the Fund, it shall object to the
proposed change; but in arriving at its decision it shall take into
consideration the extreme uncertainties prevailing when the par
values of the currencies of members were initially determined.
Effect of Unauthorized Changes.
If a member changes the par value of its currency despite the
objection of the Fund, in cases where the Fund is entitled to
object, the member shall be ineligible to use the resources of the
Fund unless the Fund otherwise determines; and if, after the
expiration of a reasonable period, the difference between the
member and the Fund continues, the matter shall be subject to
the provisions of Article XIV, Section 2.

S ec t io n 7.

S e c t io n 8.

Uniform Changes in Par Values.

(Text not yet available.)

Maintenance of Gold Value of the Fund’s Assets.
(a) The gold value of the assets of the Fund shall be main
tained notwithstanding changes in the par or foreign exchange
value of the currency of any member.
(b) Whenever (i) the par value of a member’s currency is
reduced, or (ii) the par value of a member’s currency has, in the
opinion of the Fund, depreciated to a significant extent within
that member’s territories, the member shall compensate the Fund
by paying to the Fund within a reasonable time an amount of its
own currency equal to the reduction in the gold value of its
currency held by the Fund.
(p. 8) (c) Whenever the par value of a member’s currency is
increased the Fund shall compensate such member by returning,
within a reasonable time, an amount in the member’s currency
equal to the increase in the gold value of its currency held by the
Fund.
(d)
The provisions of this Section shall apply to a uniform
proportionate change in the par values of the currencies of all

S e c t io n 9.

P R O C E E D I N G S AND D O C U M E N T S

523

members, unless at the time when such a change is proposed the
Fund decides otherwise.
Separate currencies within a Member’s Territories.
A member proposing a change in the par value of its currency
shall be deemed, unless it declares otherwise, to be proposing a
corresponding change in the par value of the separate currencies
of all territories in respect of which it has accepted this agreement
under Article XIX, Section 1. It shall, however, be open to a
member to declare that its proposal relates either to the metro
politan currency alone, or to one or more specified separate
currencies alone, or to the metropolitan currency and one or more
specified separate currencies.

S e c t io n 10.

Article V.

Transactions with the Fund

1. Agencies Dealing with the Fund
Each member shall deal with the Fund only through its
Treasury, Central Bank, Stabilization Fund or other similar
fiscal agency and the Fund shall deal only with or through the
same agencies.
S e c t io n

Limitation on the Fund’s Operations
Except as otherwise provided in this Agreement, operations
on the account of the Fund shall be limited (p. 9) to transactions
for the purpose of supplying a member, on the initiative of such
member, with the currency of another member in exchange for
the currency of the member initiating the transactions or for gold.
S ec tio n 2.

Conditions Governing Use of the Fund’s Resources.
A member shall be entitled to buy the currency of another
member from the Fund in exchange for its own currency subject
to the following conditions:

S ection 3.

(i) The member desiring to purchase the currency repre
sents that it is presently needed for making payments in that
currency which are consistent with the provisions of this
Agreement;
(ii) The Fund has not given notice under Article VII that
its holdings of that currency have become scarce;
(iii) The purchase shall not cause the Fund’s holdings of
the member’s currency to increase over the period of twelve
months ending on the date of the purchase by more than
twenty-five per cent of the member’s quota (after having
been restored to seventy-five per cent, if below that figure,
of the quota) nor to exceed two hundred per cent of the mem
ber’s quota.

524

MONETARY AND FINANCIAL CONFERENCE

(iv)
The Fund has not previously declared under Section 5
below that the member initiating the purchase is ineligible
to use the resources of the Fund.
(p .10)
Waiver of Conditions.
The Fund may in its discretion, and on terms which safeguard
its interests, waive any of the conditions prescribed in Section
3 above, especially in the case of members with a record of avoid
ing large or continuous use of the Fund’s resources. In making
such waiver it shall take into consideration periodic or exceptional
requirements of members. The Fund shall also take into account a
member’s willingness to pledge as collateral security gold, silver,
securities, or other acceptable assets having a value sufficient in
the opinion of the Fund to protect its interests and may require as
a condition of waiver the pledge of such collateral security.
S ection 4.

Ineligibility to Use the Fund’s Resources.
Whenever the Fund is of the opinion that any member is using
the resources of the Fund in a manner contrary to the purposes
of the Fund, it shall present to the member a report setting
forth the views of the Fund and prescribing a suitable time
for reply. After presenting such a report to a member the
Fund may limit the use of its resources by the member. If no reply
to the report is received from the member within the prescribed
time, or the reply received is unsatisfactory, the Fund may
continue to limit the member’s use of the Fund’s resources'or,
after giving reasonable notice to the member, declare it ineligible
to use the resources of the Fund.
S ection 5.

(p. 11)
Purchases of Currencies from the Fund for Gold.
(a) Any member desiring to obtain, directly or indirectly, the
currency of another member for gold shall, provided that it can
do so with equal advantage, acquire the currency by the sale of
gold to the Fund.
(b) Nothing in this Section shall be deemed to preclude any
member from selling in any market gold newly produced from
mines located within its territories.
S ection 7. Other Acquisitions of Gold by the Fund.
Section 6.

(Text not yet available)

S ection 8.

Charges and Commissions.

(Text not yet available)

PROCEEDINGS AND DOCUMENTS

525

Capital Transfers
S ection 1. Use of the Fund’s Resources for Capital Transfers.
(a) A member may not make net use of the resources of the
Fund to meet a large or sustained outflow of capital, and the Fund
may request a member to exercise controls to prevent such use of
the resources of the Fund. If after receiving such a request, a
member fails to exercise appropriate controls, the Fund may
declare the member ineligible to use the resources of the Fund.
(b) Nothing in this Section shall be deemed (i) to prevent the
use of the resources of the Fund for capital transactions of rea
sonable amount required for the expansion of exports or in the
ordinary course of trade, banking or other business or (ii) to
affect capital movements which are met out of a member’s own
resources of gold and foreign exchange, but members undertake
that such capital movements will be in accord with the purposes
of the Fund.
Article VI.

(p. 12)
Special Provisions for Capital Transfers.
If the Fund’s holdings of the currency of a member have
remained below 75 per cent of its quota for an immediately pre
ceding period of not less than six months, such member shall be
entitled, notwithstanding the provisions of Article V, Section 3,
to buy the currency of another member from the Fund for its
own currency for any purpose, including capital transfers. Pur
chases for capital transfers under this Section shall, however, not
be permitted if they have the effect of raising the Fund’s holdings
of the currency of such member above 75 per cent of its quota,
or of reducing the Fund’s holdings of the currency purchased
below 75 per cent of the quota of the member whose currency is
purchased.
SECTION 3. Controls of Capital Transfers.
Members may exercise such controls as are necessary to reg
ulate international capital movements but no member may exercise
such controls in a manner which will restrict payments for current
transactions or which will unduly delay the transfer of funds in
settlement of commitments, except as provided in Article VII,
Section 3, and in Article XIII, Section---------.
Article VII. Scarce Currencies.
S ection 1 . General Scarcity of Currency.
If the Fund finds that a general scarcity of a particular cur
rency is developing, the Fund may so inform members and may
issue a report setting forth the causes of the scarcity and contain
S ection 2.

526

MONETARY AND FINANCIAL CONFERENCE

ing recommendations designed to bring it to an end. A representa
tive of the member whose currency is involved shall participate
in the preparation of the report.
(P . IB )
S e c tio n 2.

Measures to Maintain Fund’s Holdings of Scarce
Currencies.
The Fund may, if it deems such action appropriate to maintain
necessary balances of any currency, take either or both of the
following steps:
(i) Propose to the member that on terms and conditions
agreed between the Fund and the member, the latter lend such
currency to the Fund or, with the approval of the member, that
the Fund borrow such currency from some other source either
within or outside the territory of the member, but no member
shall be under any obligation to make such loans to the Fund
or to approve the borrowing of its currency by the Fund from
any other source.
(ii) Buy that currency from that member with gold.
Scarcity of the Fund’s Holdings.
(a) If it becomes evident to the Fund that the demand for a
member’s currency seriously threatens the Fund’s ability to sup
ply that currency, the Fund, whether or not it has issued a report
under Section 1 above, shall formally declare such currency scarce
and shall thenceforth apportion its existing and accruing supply
of the scarce currency with due regard to the relative needs of
members, the general international economic situation and any
other pertinent considerations. The Fund shall also issue a report
concerning its action.
(b) Such a formal declaration shall operate as an authoriza
tion to any member, after consultation with the Fund, temporarily
to impose limitations on the freedom of exchange operations in
the scarce currency. Subject to the provisions of Article IV,
Section 3, the member shall have complete jurisdiction in deter
mining the nature of such limitations, but they shall be no mo^e
restrictive (p. 14) than is necessary to limit the demand for the
sca