Back Matter

Back Matter

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1948
    Share
    • ShareShare
    Show Summary Details
    Appendices
    Appendix A

    Statements Made at the Opening Joint Session

    Address by the Governor of the Fund and Bank for the United States36

    John W. Snyder

    Mr. Chairman, I am happy to add my personal welcome to Washington to the greetings just read you from the President. The annual meetings of the Boards of Governors provide an important occasion for the interchange of ideas and the discussion of issues among the representatives of a large number of countries who otherwise will rarely see each other except when immediately urgent issues must be settled.

    Here we have an opportunity to examine the broader phases of international financial policy. It is possible to exchange views and to gain some impressions of the climate of world opinion on the problems with which we are concerned.

    As Governors of the Fund and the Bank, however, we have the immediate task of reviewing the work of the Executive Directors and of the staffs of these institutions in the past year. We must act on several matters of policy which are reserved by the Articles of Agreement to the Boards of Governors. Although we have entrusted most of our powers to the Executive Directors, it is appropriate for the Governors to inquire into the operations of the institutions and to consider broad aspects of their policy.

    The postwar economic dislocation has been more serious than had been anticipated at Bretton Woods. The extent of physical destruction was greater, and the disruption of normal trade channels has hindered the return to economic stability. The political uncertainties of the period have contributed to the difficulties of international finance and investment.

    As we review the work of the Fund and the Bank, we must examine it both from the standpoint of the objectives for which these bodies were established and in terms of the economic and political conditions under which they have had to operate in the last few years. Even today, there are really no precise estimates of the amount which will be required to restore fully the economic life of the war-torn countries and to finance the economic development of other countries whose national incomes today are below the potential levels.

    The International Bank has been able to provide notable assistance in both of these fields. Naturally enough in the first period of its operation most of its loans were reconstruction loans made to the countries whose economies had suffered most from the war. Now, it is turning more to an increased extent to development loans which we may assume will become of greater importance as the activities of the Bank expand.

    The opportunities for investment are great. The ability to supply funds and investment goods is more limited. I wish 1 could say that the conditions prevailing in the world were conducive to the free flow of private capital for investment in foreign industry. To a considerable degree the factors which affect the private investment market also affect the Bank. The Bank, if it is to continue its useful career over the next decades, must make loans which will be repaid by the borrowers, since only in this way can it continue to make new loans.

    The Bank does not compete with private investors. It serves to facilitate private investment and to direct funds into the proper places. The Bank must have assurance not only that its loans will be repaid but that they will be extended efficiently for the productive purposes which will facilitate repayment without unduly burdening the international accounts of the borrowing countries.

    In reviewing the work of the Bank over the last few years, it must be borne in mind that making good investments for development purposes is by no means an easy task. The projects must be given careful study. The conditions in the borrowing country should be favorable to undertaking international obligations. Before the Bank can reach its decision, it must have available to it a large amount of data about the project and the long-range program of the country concerned which alone can supply the needed information.

    Countries in need of economic development may in practice have difficulty in formulating their projects since they often need technical advice and assistance as well as finances for their projects. The Bank, in my opinion, has proven very helpful in sending missions to countries requesting aid to assist them in planning their programs of development and formulating their loan projects. These investigations will, we hope, soon lead to further expansion of the Bank’s loans.

    The Bank, of course, can not provide all the needed finance nor can it on its own initiative take many of the steps which are necessary for sound investment programs. To a large extent, the member countries must play their own part, and this includes the countries able to export capital as well as those which seek to import it.

    With your permission, Mr. Chairman, I would like to turn for a moment to the international monetary and exchange problems which are the concern of the Fund. It was a significant step in international cooperation when the member nations submitted their par values and exchange rates to the scrutiny of an international body. Moreover, from time to time, various member countries have consulted with the Fund about their exchange policies in matters other than rates. Problems of discrimination, multiple rate systems, and related devices were discussed.

    The Fund has given valuable advice to its members. It has recognized that the problems of foreign exchange can not be separated from the problems of domestic monetary and fiscal policy and of the international trade situation.

    Most of the Fund’s suggestions are accepted, and this is also important as a stage of international cooperation. There have unfortunately been some contrary experiences. We hope that soon all of the member nations will have reached conditions which will enable them to establish and maintain stable par values for their currencies.

    The Fund will then use its resources to provide temporary assistance when needed to maintain exchange stability.

    When the original par values were agreed with the Fund, it was recognized both by the Fund and the member nations that the declared pars could at best be tentative. Conditions were not right for the establishment of equilibrium rates of exchange which would be maintained over an indefinite period without unduly making use of the Fund’s resources. Measured in terms of relative prices and other factors, there may be currencies today which are overvalued, and an orderly adjustment must be made in the future to bring about stability and to facilitate the expansion of international trade.

    The Fund’s resources should not be used to support untenable rates or to meet deficits on international accounts which are fundamental and which can be met only through large-scale international assistance and the adjustment of exchange rates.

    With the help of the European Recovery Program, we may expect that substantial equilibrium will be reached in the international accounts of most of the participating countries. In this connection, the Fund has an important role. It can deal with questions of monetary and fiscal policy and of international exchange without the suspicion of any specific bias in favor of any one country. It has available to it a vast store of technical information. It is studying the experiences of each country. Its views, therefore, should be regarded with great respect by the member countries.

    Both the Bank and the Fund were created with certain long-range objectives in view. They were not intended to deal with some of the immediate problems of reconstruction. It became clear after the end of the war that the most fundamental problem of the European countries at least was their inability to balance their international accounts. Their needs for goods, foodstuffs, raw materials and supplies far exceeded the amount which they could earn from their exports and other services at the prevailing level of output.

    It is clear now that these balance of payment deficits far exceed the Fund’s resources in dollars or other currencies needed to purchase supplies. The Bank also could not finance these balance of payment deficits considering the terms of its Articles of Agreement and its available resources.

    We must bear in mind that the Bank has a function to perform for many years to come, and that its charter obligates it to use the funds exclusively for the benefit of the members with equitable consideration to projects for development and projects for reconstruction alike.

    The Fund, on the other hand, is not intended to provide facilities for relief or reconstruction or to deal with international indebtedness arising out of the war. Thus, if these international institutions are to serve their long-run purposes, other ways had to be devised for financing the postwar deficits.

    The people and the Government of the United States have realized that they have had an important role in the restoration of the economies of the world dislocated by the war. The United States provided assistance to foreign countries in the form of relief grants, loans and property credits of approximately fifteen billions of dollars between July 1, 1945 and December 31, 1947. Under the European Recovery Program, the United States has provided over five billion dollars for the current year, and it is expected that if conditions warrant further appropriations will be made in future years for the economic reconstruction of Europe.

    In speaking of the economic recovery program for Western Europe, I would like to also draw attention to the East-West trade within Europe. Such trade already exists, and all that can reasonably be done to maintain its flow is to the interest of all.

    The people of the United States have not been unmindful of the needs of other areas. They have provided for direct aid to China, and they have expected that large benefits will accrue indirectly to other countries from the European aid program.

    The needs of Europe have been acute, and we have recognized that the economic recovery of Europe is essential to the well-being of the other continents as well.

    Other countries too have, in proportion to their abilities, supplied aid in the form of loans and trade credits which have made significant contributions toward the restoration of high levels of production abroad. Assistance abroad in this large volume was necessary under prevailing circumstances. It should go far toward restoring levels of production and fostering trade patterns which will make possible the balanced growth of international trade, which is among the prime objectives of the Fund and the Bank.

    The resources of the Fund should be used to deal only with problems of temporary disequilibrium in the balance of payments of member countries; with the most pressing requirements for international finance satisfied at least in part by postwar programs, the Bank will be in a better position to fulfill its functions in providing needed international credits and facilitating the expansion of international investment.

    In the coming years, we can look forward to having these institutions realize more fully the ideals contemplated for them by the United Nations Monetary and Financial Conference of 1944.

    Address by the Governor of the Fund and Bank for Finland 37

    Sakari Tuomioja

    Mr. Chairman and Gentlemen, as a representative of a new member country I deeply appreciate the honor to address this distinguished assembly. Finland has been very happy to join the twin organizations, and it now for the first time officially is participating in the annual meeting of the Boards of Governors.

    Personally, I welcome this splendid opportunity to meet my colleagues, exchange views with them, and establish friendships under the amiable atmosphere of this beautiful capital of the United States.

    The creation of these two international organizations is based on the realization of the economic interdependence and organic unity of the world nations. This interrelationship is very deeply felt in Finland, whose economy and whose very national existence depend on the exchange of goods with other lands near and far alike. Whatever the prevailing economic conditions in her customer countries, they always strongly influence Finland’s domestic economic life. Whether there is a boom or a bust, stability and progress or dislocations and disrupted economies elsewhere, Finland to a large extent will be correspondingly affected.

    I am very glad to be able to tell you that recovery in Finland is slowly but steadily on its way despite tremendous difficulties of various kinds. This satisfactory development is, in fact, to a great extent due to the outside economic aid which Finland has been fortunate to receive in the form of credits.

    However, the continuance of this encouraging progress will largely depend upon the speed of recovery and reconstruction in other countries.

    Thus, Finland is sincerely interested in all efforts designed to bring about economic stability and welfare all over the world. In the present economic life, many nations will of necessity continue to require assistance, but I am sure that there will be changes in the future. In due time we shall see more and more countries in a position to contribute materially to the development of other areas of the world on a mutually advantageous universal basis.

    I feel confident that this gathering, under the distinguished chairmanship of the Honorable Yun-wu Wang, will bring us closer to the ultimate goals of the Bank and the Fund.

    I wish once more to express the appreciation of Finland for the opportunity to participate in world reconstruction and stabilization in close cooperation with other countries under the auspices of the Bank and the Fund toward economic progress and world unity.

    Address by the Governor of the Fund and Bank for Guatemala 38

    Manuel Noriega Morales

    Mr. Chairman and Fellow Governors, it is indeed a great privilege and an honor to speak at the opening of the Third Annual Meeting of the Governors of the International Bank for Reconstruction and Development and the International Monetary Fund. Some of us who have been associated with these twin institutions since their creation at Bretton Woods can see with great satisfaction the progress made and the vitality they have achieved, notwithstanding terrific handicaps and a multiplicity of hazards.

    We live now in a troubled world—troubled because many problems created by the war and the postwar period are still far from solution and, rather than being solved, are getting more critical as the weeks and the days move by.

    While this happens, we in Latin America feel that all our efforts and all our strength should be applied toward cooperation with all democratic nations in the seeking of world peace and prosperity. We also consider it is our duty and responsibility to pledge continued support to the international institutions working for that ideal, an ideal which must prevail for the salvation of humanity.

    The Fund and the Bank are among these international organizations. They will plan to help every member nation in the solution of many of their economic and financial problems. We continue to pledge our faith in the work of these sister institutions since we feel confident that they will always accomplish the generous task entrusted to them and will endeavor to assist the countries of our continent as much as those of other areas of the world in their continuous difficulties.

    Time does not permit me to analyze the nature of these problems, and this is not the occasion to discuss them. However, it is proper to say that in Latin America both the Bank and the Fund find ample field to engage in truly constructive work in making real contributions to the economic stability and social progress of our countries.

    Our institutions at home demand it; our governments expect it; and our peoples deserve it and must receive its benefits.

    Early this year some of our countries were glad to receive the visit of President McCloy and high officials of the International Bank for Reconstruction and Development. Also some high officials of the International Monetary Fund traveled through Latin America. We regard these visits as excellent opportunities for them to know our countries and to get acquainted with the nature of our problems which in some cases are similar to those of other areas of the world but, in other instances, are certainly peculiar and different.

    It is our sincere hope that this trend continues and that it will enable the Fund and the Bank to contribute to the well-being of our peoples by means of the instruments afforded in the Bretton Woods Agreement. Prosperity and durable peace will come to our world with a spreading all over of the benefits of monetary stability, social progress and economic welfare.

    On behalf of the Latin American Governors of the Bank and the Fund, I wish to express our pleasure to join with all of you in the fostering of fair and just economic and monetary conditions in the world, pledging our support to this end.

    Before leaving, may I express our thanks to Mr. McCloy, the President of the Bank, to Mr. Gutt, the Managing Director of the Fund, and to the staffs of both institutions for the genuine and warm welcome we have received here today.

    Address by the Governor of the Fund and Bank for the United Kingdom 39

    Sir Stafford Cripps

    Mr. Chairman and Boards of Governors, there is little doubt that the international and economic picture of the world today is not what had been anticipated by the creators of these institutions, the Bank and the Fund, at Bretton Woods. This change of circumstances has created great difficulties for both institutions. The stresses and strains of the international situation which are, we hope, quite abnormal persist, and there has been no period of peaceful development during which the hoped for policies and practices could be fully developed.

    We must not, Mr. Chairman, because of these unfortunate accidents of history, underestimate the importance either of the creation of these institutions, a rightful impulse of the post-war urge for the self-preservation of humanity, or of their continuing and developing existence.

    Though our hopes and expectations may to some extent have been postponed by the course of events, we must not allow ourselves to become discouraged or to feel that we shall forever be struggling in the coils of adversity so that no orderly and considered plans for world economic cooperation can succeed.

    Though the resources of the Bank are not adequate to deal with the herculean task of world reconstruction as it now presents itself to us, it has yet been able to do some most useful service in this connection. Valuable help has already been given and more channels of assistance are now under examination. We can, I believe, feel confident that under its wise management the Bank will continue to use its resources so far as it is able for the benefit of its members and in the cause of the reconstruction and the expansion of world production.

    At the same time, we all recognize that without the massive and generous gesture of the United States Government and people in the form of the European Recovery Program, we might now be facing a winter of the most acute and devastating hardship to many peoples throughout the world. And I am glad to have this opportunity of putting on record the deep appreciation of my government and people for this far-sighted wisdom of the government, the Congress and the people of the United States of America in giving hope and very practical help to the peoples of Western Europe.

    So far as the Fund is concerned, it equally has been affected by the uncertainties and instabilities of the international situation. There can be no doubt that the maintenance of orderly exchange regulations has become increasingly difficult during the past year. But we must all view with deep anxiety any tendency to depart from the principles of the Articles of Association of the Fund. We are very conscious, from our own experience, how these departures from the principles laid down in the field of foreign exchange transactions quickly have their effect, an embarrassing and complicating effect, upon the world of international trade and commerce.

    We must therefore, all of us, insist upon the importance of this aspect of the work, and, indeed, of the duty of the Fund, and give it our full assistance in securing orderly exchange arrangements. Unless we can maintain a high degree of law and order in this vital field, the great efforts that are being made now by many countries towards world recovery will be frustrated by the chaos and anarchy that will prevail in foreign exchanges. It is, therefore, our duty to help the Fund in this matter, to which each one of us is fully pledged by the acceptance of the Fund Agreement.

    I believe that the Bank and Fund can make a large contribution to that task to which we are all devoted, the promotion and the security of the welfare of our peoples in every part of the world.

    Statements Made at the Closing Joint Session

    Address by the Governor of the Fund for France 40

    Pierre Mendes-France

    Mr. Chairman, on behalf of Mr. Queuille, Head of the French Government, Minister of Finance and Governor for the Bank, as well as on my own behalf, I wish to express our deep appreciation for the decisions you have just reached to elect the Governor for France as Chairman for next year and to recommend that the Fifth Annual Session of the Board be held in Paris in 1950.

    You may be sure that the honors bestowed upon us are deeply felt by a country and men who were intimately connected with the birth and development of our twin institutions since the time of Bretton Woods. Events have taken place which were sometimes quite different from those which we had anticipated or hoped for, but those events have strengthened the will of all people striving for international cooperation to do their utmost to further the development of such institutions as the International Bank and the Monetary Fund.

    In the capacity and functions you have bestowed upon us, we shall endeavor to achieve the aims which were defined at Bretton Woods and which, in the difficult times we are now facing, are more than ever our aims.

    I also wish to take this opportunity to express our special gratitude to our American hosts for their hospitality which, as usual, was both open and kindly. We also had the advantage of visiting the seat of the Bank and Fund and to appreciate the good teamwork of the twin institutions.

    The Management of the Bank and Fund, their Executive Directors and their Staff, should be congratulated on the efficient manner in which they have fulfilled their duties during the past year, and in particular on the efficient organization of our present meeting.

    Some have expressed the opinion that our meetings are too often devoted only to procedural questions or to the adoption, after short debate, of the reports submitted to us. This opinion is erroneous though I feel personally that our colleague from the United States, Secretary Snyder, was right in proposing that in the future very broad discussions concerning the policies of the International Monetary Fund and of the International Bank should take place during our annual meetings.

    Such exchanges of views can only increase the authority and efficiency of our institutions and the importance of our discussions.

    However, even now our meetings do have an importance which —and I should like to call the attention of my colleagues to this point—cannot be underestimated. The fact that delegates should have reached Washington from 40 to 50 different countries of the world, should have sat together regularly and exchanged their views, either in public meetings or in private meetings, that those people should have had discussions of their common problems and of their common worries, I think is of great importance for the international importance of the role which our institutions do have to play.

    This, indeed, is one of the great achievements of the Fund and of the Bank. This is an achievement which is a fact now and which we should not underestimate.

    In ending my speech, I should like to propose a vote of thanks to our Chairman, the Right Honorable Dr. Yun-wu Wang, who has directed our discussions with so much tact and so much authority and to whom the success of this meeting should be ascribed.

    Address by the Governor of the Fund for Austria 41

    Hans Rizzi

    Mr. Chairman, Governors, permit me on the occasion of the Closing Session of our organizations to say a few words on behalf of Austria, the youngest member of both the International Bank and the Monetary Fund.

    It was with sincere satisfaction that Austria has taken note of the decision of the member states to accept her application for membership in the two institutions established at Bretton Woods.

    In appreciating our admission, we realized, however, that the still unsettled questions of political and economic character in our country will hardly permit us at this time to make extensive use of the assistance provided for by both financial institutions.

    The obstacles encountered in the reconstruction of Austria’s economy are still immense. Yet, we have learned by experience that to keep one’s arms crossed in the face of difficulties is the worst one could do. Had we not, in December 1947, despite unusually adverse conditions, carried out measures of currency stabilization—far-reaching both in their consequences and in the sacrifices imposed upon the Austrian population—our economy would have fallen victim to a runaway inflation already casting its dark shadows across our country. Equally, we must strive with all our energy for the reconstruction of our industrial plants badly battered by the war and the aftermath of war, even though the legal status of a certain part of our industry is still unsettled.

    The favorable developments following our currency reform last fall have demonstrated with clarity that Austria not only possesses the will but also the energy to rebuild her economy. The unanimity with which industrial management, labor and agriculture are striving for the same goal, namely economic recovery, is worthy of recognition.

    In our efforts we need economic assistance as well as moral support from the world, and it is only natural that we should turn to those organizations which have been established for the purpose of furthering international cooperation. May I, therefore, address myself to both the International Bank and the Monetary Fund to enlist their support in our endeavors for the reconstruction of Austria’s economy.

    Address by the Governor of the Fund and Bank for the United Kingdom 42

    Sir Stafford Cripps

    Mr. Chairman, I should like, first of all, to say a word or two about the activities of the Bank. The President in his speech on Wednesday asked various member countries to reconsider their attitude towards assisting the Bank in making available assets in various ways in the light of the general approach to the work of the Bank which he then so ably outlined.

    On the first two points which he raised covering the possibility of securities of the Bank being acquired or held by residents in the member countries, I am afraid that I can only say that for the time being at least, so far as we in the United Kingdom are concerned, we see little prospect of anything on those lines being possible.

    I only wish we could do more. Quite frankly, we must still await better times.

    The third suggestion made by the President was that member countries should reconsider the question of making available for Bank financing some portion of the 18 per cent of their capital subscription in their own currency. The United Kingdom is already making available such large quantities of sterling by way of credits, gifts and the release of sterling balances that it is very difficult to see what further it can do in the way of pledging its exports without any immediate return by way of imports.

    We have, like other countries, to consider this question in terms of the goods represented by money rather than in the terms of the money itself. We are already fully pledged to make available, in one way or another of the ways I have mentioned, all the unrequited exports that we can possibly spare in the light of the need to improve our visible trade balance. We are, however, hoping to increase our total volume of production above the present level in the coming months and years and we shall keep constantly before us the desirability of channeling any further unrequited exports that we can afford through the operations of the Bank.

    We are most conscious of the desirability of rendering to the Bank this form of support, and we shall always be ready to consider any specific suggestions on particular projects that the Bank wishes to submit to us. But, beyond that, at the moment we can not go.

    As the period of extreme emergency passes and we start to enter upon a more regular and normal condition of affairs—normal, that is, in the new world circumstances, or perhaps it would be better to say conditions less liable to the violent fluctuations which have been the rule of the postwar period to date—we shall hope that it will become more and more possible for us and other member countries to give the Bank that support which it deserves and which we would certainly like to give it.

    I feel myself that it is of the greatest importance that in this, as in so many other international matters today, we should accustom ourselves to a new outlook and a new perspective. We have, many of us, been accustomed hitherto to regard such international institutions as the Fund and Bank as mere incidents in our own internal financial and economic problems; they are useful if we can get anything out of them, but, otherwise, an awkward embarrassment to the freedom of our own actions.

    That point of view we must all of us change. The Bank and Fund are, in fact, an integral and vital part of a new conception of world cooperation which we are attempting in our imperfect way to build up. They are primarily, and not secondarily, factors in our own planning and policy-making in the financial and economic sphere, and we must treat them and support them as such.

    Rather than say: Will it help us individually if we do this or that to support these two institutions?—we should say: Can not we give this help to these essential international organizations without unduly affecting our own interests?

    I feel certain that if we can, all of us, adopt that spirit of approach to our cooperative efforts through the Fund and Bank, we shall enable them to do the work and do it effectively for which they were, by the vision of their founders, set up.

    We are passing, as has been suggested by the Managing Director of the Fund and by the President of the Bank, through a period of exceptional difficulty and perhaps of discouragement in the international field. But, that is, in my view, the very reason why we should all the more stand fast by the institutions which we have created and upon which, in the longer run, must depend all our hopes of any permanent solution of our difficulties.

    I would like to conclude what I have to say by offering my thanks to the staff of the Fund and of the Bank for the contribution which they have made and are making to the building up of a true international objectivity in the two important fields of finance and economics. As the President of the Bank said to us, if such objectivity is maintained to the point where it becomes a tradition, great consequences may flow from it. It is my hope, and that of my country, that this tradition may be built up, for it will not only redound to the honor of the Bank and the Fund but will vastly increase their usefulness to the world.

    Address by the Governor of the Fund and Bank for the Netherlands43

    P. Lieftinck

    Mr. Chairman, in connection with one of the remarks made by the President of the Bank, the Governor for the United Kingdom has drawn our attention to the problem of the use of that part of the capital of the Bank that has been made up in national currency—the so-called 18 per cent. None of us is blind to the importance of this problem. It is only by bringing these 18 per cent to life—that is, by allowing the Bank to use them in its lending operations—that we can make the Bank into a truly international institution.

    On the other hand, it is obvious why the Articles of Agreement prescribed that the Bank’s use of the 18 per cent is subject to the approval of the member concerned. Under conditions where the whole of a country’s capacity to export is needed to provide payment for its essential imports, and where, even so, only a part of its imports can be paid for by exports, a country can not refrain from exercising supervision of the manner in which its exports flow and of the resources out of which these imports are paid.

    However, with the progress of reconstruction out of the stage of the immediate repair of war damage and a gradual recovery of the productive apparatus of production, it should become possible more and more to deviate from the general rule, unavoidable in the immediate postwar period, not to permit the Bank the use of the 18 per cent for the payment of such exports as are the consequence of loan operations concluded by it.

    The scope of such deviations will, at first, differ from country to country according to the level of recovery and reconstruction that has been achieved. I, for myself, am ready to declare the willingness of my Government to allow in principle the use of the 18 per cent for loan operations by the Bank, the conditions under which such use will be allowed to be fixed from case to case.

    I sincerely hope, Mr. Chairman, that the progress of recovery in my country, made possible by the assistance of the Bretton Woods institutions and by ERP, will permit these conditions to become more and more lenient in the years to come.

    Address by the Governor of the Bank for Peru 44

    Carlos Montero Bernales

    Mr. Chairman, Fellow Governors, the Governors for Latin America have honored me with the request that I should say a few words in their behalf at this closing session of the Third Annual Meeting of the Governors of the International Monetary Fund and the International Bank for Reconstruction and Development.

    We have been greatly pleased to find at this Third Annual Meeting the same spirit of mutual understanding and cooperation that have characterized our previous meetings at Savannah, Washington and London. The report of the excellent work accomplished by these twin institutions during the past year has established a new landmark towards the realization of the aims and purposes which inspired their creation at the Bretton Woods Conference.

    The Latin American countries cooperated at Bretton Woods to give life to these international institutions. We were convinced at Bretton Woods that the world needed international institutions charged with the responsibility of attaining monetary and economic stabilization. We were convinced that the world needed international institutions devoted exclusively to the enormous task of reconstructing the countries devastated by the war and to develop the natural resources of other areas of the world in order to maintain and improve the standard of living and establish the basis for permanent peace.

    The Latin American Republics have closely followed the organization and initial work of both the Fund and the Bank and we are pleased today to learn of the progress attained during the last year, which proves that our hopes at Bretton Woods were not empty dreams. We are particularly pleased with the interest shown by the Fund and the Bank during the past year in the monetary and economic problems of the Latin American Republics.

    I can not fail to mention the very excellent results of the recent visit of the President of the Bank, Mr. John J. McCloy, to South America. It enabled Mr. McCloy and his advisers to learn of our problems at close range. On the other hand, it gave an opportunity to the business and financial leaders of South America to know and admire the extraordinary ability and capacity for work of the President of our Bank.

    We have great hopes that, as a result of the technical missions sent to the Latin American countries both by the Fund and the Bank, there will be a better understanding of our complicated problems, and, as a result of this understanding, our countries may avail themselves in the near future to a larger degree of the facilities to which member countries are entitled for the development of our natural resources and the improvement of our standards of living.

    May I congratulate the staff of the Fund and the Bank for the excellent organization of this Third Annual Meeting. May I also seize this opportunity to express our appreciation to the Government of the United States of America, our host, for the courtesy and hospitality shown to all delegates attending this meeting. The beauty of the city of Washington and the courtesy and hospitality of its people have done much toward making the meeting a success, have helped to lighten and make more pleasant all our tasks, and have served to remind us once more of the exemplary lives of the great names in the history of this nation: Washington, Lincoln, Jefferson, and of the great Pan-Americanist, Franklin Delano Roosevelt.

    On behalf of the Latin American Governors, I wish to record our warmest congratulations to Mr. Yun-wu Wang, the Chairman of this Conference, for his wise guidance of our deliberations; to Mr. Camille Gutt and the Directors of the International Monetary Fund, and to Mr. John J. McCloy and the Executive Directors of the International Bank for Reconstruction and Development for the very fine work of both institutions during the past year.

    Address by the Governor of the Fund and Bank for the United States 45

    John W. Snyder

    Mr. Chairman, these have truly been very fine statements to which we have listened. I think that it has been clear at these meetings that each Governor of our two institutions has felt a personal responsibility for further advancement of the vital purposes which the Bank and Fund are intended to serve. The interchange of views and the positive actions which have taken place during our sessions will serve to advance the welfare not only of the nations which are represented here but also in any long-range appraisal of the nations which have not been represented.

    We have met under the capable chairmanship of the distinguished Governor of China. As most of you know, Dr. Yun-wu Wang has unselfishly laid aside pressing private business demands to take over the responsibilities of the Minister of Finance of China in these difficult days, and in the midst of the difficult problems in China. He has presided over the conferences with kindness and graciousness and with deep understanding. He has won our affection and our high esteem.

    For the United States delegation I desire also to commend the work of the entire staffs of the Bank and the Fund and of the joint secretariat. Both during our recent busy days and during the days of preparation which preceded our assembly here, that work has been alert, efficient and altogether competent.

    To President McCloy of the Bank, to the Managing Director, Mr. Gutt, of the Fund, to members of the Boards of Executive Directors of the Bank and the Fund, and to all their subordinates I would like to say that I feel the day-to-day work of the two institutions is praiseworthy indeed.

    Many of you who have been visitors to Washington for this occasion will now prepare to return toward your homes as our sessions come to a close. May I say for the representatives of the United States that with you goes our warmest appreciation of the spirit in which you have participated in these meetings and, in addition, our warmest friendship.

    Address by the Governor of the Fund and Bank for Egypt 46

    Ahmed Zaki Bey Saad

    Mr. Chairman, I should like to take this opportunity to make a few remarks at this concluding session of the Third Annual Meeting of the Fund and the Bank. I am sure that all of us have been greatly encouraged by the discussions we have had here, and will feel renewed confidence in the ability of our two institutions to carry out their work effectively in the coming years.

    As a representative of a Middle Eastern country, I noted with great satisfaction the increasing attention being given to the problems of development. It is needless to say that our countries regard the expansion of the Bank’s activities in the field of development loans as a matter of particular importance to us. We regard the policies of the Fund as expressed many times here as affording to our countries hope that an international monetary system will eventually be established which will provide the basis for expanding international trade and flow of capital in an environment free from discrimination and restraint. In this expanding world economy, the countries of the Middle East can hope to proceed more rapidly with their programs of industrialization and diversification.

    I should like to emphasize that, although a considerable period of time must necessarily elapse before the objectives of the Fund and the Bank can be fully achieved, for the peoples in our countries any unnecessary delays are to be deplored. We recognize realities, but part of the realities must be the firm conviction and intention to do all that is possible, as quickly as possible, to help raise the standard of living of the people in the Middle East.

    Mr. Chairman, I should like to express my congratulations to you on the manner in which you have conducted these meetings. All of us are appreciative of your willingness to preside over our meetings and to give us the benefit of your wisdom and experience.

    I should also like to thank the President of the Bank, the Managing Director of the Fund, my colleagues the Executive Directors, and the members of the Staff and Secretariat of these institutions for the work which they have done in organizing these sessions and helping to make them the success which they have been.

    I am sure that all would join with me in saying that our deliberations here have been most useful and instructive, and that we are all looking forward to having the opportunity to meet again next year at the Fourth Annual Conference.

    Mr. Chairman and Gentlemen, today this Board of Governors have honored the memory of Dr. Harry D. White, whose vision and foresight have contributed much to make these institutions a reality. This Board has expressed its profound sorrow because of his death. I am sure that the Executive Directors are doing and will do their part to honor their great former colleague.

    Mr. Chairman, thank you again for everything you have done for the success of this meeting.

    Address by the Governor of the Bank for Belgium 47

    Gaston Eyskens

    Mr. Chairman, we are concluding four days of work amongst the greenery of Washington. Our proceedings have progressed smoothly and rapidly and, nevertheless, some important and necessary work has been done. By doing so, we have also set a very good example which might well inspire other international groups the world over. And, at the same time, we have been, like every year on this occasion, able to have many useful contacts in the fields of financial and economic cooperation.

    The smoothness of our proceedings is due in the first place to the excellent preparatory work that was done by the Boards of Directors and the staffs of the two organizations, but also it is due, I believe, to the very beautiful and peaceful atmosphere that rises from Rock Creek Park and has engulfed the whole of the Shoreham Hotel.

    But, above all, we were all so well received from the very moment we landed on American territory that we all were very much impressed by the wonderful hospitality we have received. I could not start enumerating all those who have done their utmost to make things pleasant for us.

    But, I would like to single out the host government, Gentlemen, to express the feelings of all the Governors and of the members of all the delegations present in expressing our sincere thanks to the American Government and, in particular, to the Secretary of the Treasury, Mr. John Snyder, for the many attentions with which they succeeded in making this conference a very pleasant and successful reunion.

    Address by the Governor of the Fund and Bank for Canada 48

    Douglas Charles Abbott

    Mr. Chairman, before this annual meeting concludes its deliberations, I should like to say a word of appreciation of the work of two great international figures. The Bank and Fund together constitute a unique experiment in economic cooperation. They operate under a system of representation which gives every member country its rightful opportunity to influence the course of their operations.

    That means that somehow or other the Bank and the Fund, each working in its separate field, must endeavor to harmonize the interests of some 47 member countries. At the same time, these two institutions have been launched into a world affected by greater storms and stresses than anything that had been anticipated when the blueprints were first drawn up at Bretton Woods.

    In spite of these difficulties, it is evident to all of us, I think, that the Bank and the Fund have been able to make a most noteworthy contribution to the solution of the world’s economic ills during the last two years and are now a firmly established part of the international monetary and financial mechanism.

    No small part of the credit for these results must be given to the two men who guide the active day-to-day operations of the Bank and the Fund, Mr. McCloy and Mr. Gutt. It is one thing for the member governments represented around this table to provide the Bank and the Fund with the power and resources needed to perform their functions. It is another thing to establish and operate such institutions smoothly, effectively and fairly so as to command the support and respect of all member nations.

    On this plane, much depends upon the personalities and abilities of those in command of the twin institutions, and I feel certain that I am expressing the sentiment of all of us around this table when I say that in these respects the Bank and the Fund have been particularly fortunate.

    Mr. Gutt and Mr. McCloy have each of them succeeded in getting together a competent and efficient organization capable, as the record has already demonstrated, of making an impressive contribution to the financial and economic tasks of member countries. By their frequent visits and their personal contacts with member governments—and I hasten to pay tribute to their untiring efforts in that regard—Mr. Gutt and Mr. McCloy have earned for the Fund and the Bank the confidence of us all and have already assured these institutions of a position of prime importance in the field of international collaboration.

    The Fund and the Bank are indeed fortunate in having here two men at the head of these two organizations such as Mr. Gutt and Mr. McCloy. I think we are all very conscious of the ability, energy and fairmindedness which the President and the Managing Director have brought to their tasks. And, in saying so, I know I have the support of all my fellow Governors.

    Closing Remarks of the Chairman 49

    The Honorable Yun-wu Wang

    Gentlemen, we are about to bring the sessions of the Third Annual Meeting of the Boards of Governors of the Fund and the Bank to a close. I would like to express the gratitude of my Government and myself for the honor bestowed upon China in my being designated the Chairman of the Boards of Governors of these institutions during the past year.

    Our meetings this week have been conducted with the grace and efficiency which have come to characterize our annual conferences. Much of the credit for this is due to the splendid preparation by the Executive Directors, Mr. Gutt, Mr. McCloy, and their staffs. I would like to join with the others in expressing my appreciation to the Secretaries of this conference and to the members of the Secretariat. In a quiet and dignified fashion they have provided the machinery which has enabled the conference to move quickly and surely from problem to problem.

    Our sessions this week have clearly demonstrated the progress made in international financial cooperation. In all our discussions we found the Governors willing and eager to participate. More-over, the delegates have been willing to air their differences with the Fund and the Bank as well as to engage in the exchange of views, in which respect moderation and good-will were shown by all. Even when conflicts over various aspects of Fund and Bank policy were being voiced, it was done in such a way as to indicate that all had at heart the successful functioning of our two institutions as well as the welfare of their own countries. Our discussions have demonstrated that, as long as countries retain common objectives in the international monetary and investment fields, they can come together and discuss their differences with cordiality and amiability.

    The accomplishments of these meetings have indeed been many. This is perhaps not the occasion to review these in detail, but a brief mention of them may well be in order.

    Among the principal accomplishments of our discussions here is that the Executive Boards have been given guidance on many questions of basic importance, such as exchange rates and exchange practices, gold policies, the need for expanding intra-European trade, and the desirability of more development loans.

    Among these suggestions on policy have also been matters which have hitherto not received much attention by the Fund and the Bank, such as the disposition of the local currency proceeds of International Bank loans. It is gratifying that Mr. Gutt and Mr. McCloy have both shown eagerness to receive these suggestions and have assured us that they will receive the fullest attention of their staffs.

    We may be confident from past experience that the Executive Directors, the managements and the staffs of our two institutions will be able to translate the views and suggestions which have been made into practical measures and will succeed, where-ever necessary, in obtaining the cooperation of our member countries in the adoption of these measures.

    As a result of our meetings this week, the Executive Boards and the managements of the Fund and the Bank can feel assured that they enjoy the confidence of all member countries. This should indeed prove to be an important factor in encouraging the Fund and the Bank to forge ahead courageously and vigorously in coping with their many problems. The representatives of all the member countries have emphasized that our member countries are eager to have these institutions succeed; that our member countries are well aware of the tremendous difficulties and handicaps under which these institutions necessarily operate; and that our member countries feel that the Executive Directors and the managements of these institutions must be free to exercise their judgments in dealing with new and complex problems. We do not expect perfection, since none of us is free from error. We do expect flexibility, a willingness to learn, and a sympathetic attitude towards the problems of member countries. These qualities are already possessed by the Fund and Bank in great measure.

    In times such as these, it is easy to get discouraged. We hope that, as a result of our meetings here, those to whom we have entrusted the responsibility of carrying forth the work of these institutions on a continuous basis will retain that degree of self-confidence necessary to carry on effectively their work here.

    Another major accomplishment of these meetings is that to the Governors of the Fund and the Bank these discussions have given a fuller appreciation of the problems of member countries and of the potentialities of these two international institutions. We have received concrete suggestions on how member countries can help make these institutions more effective. For example, we have received the excellent suggestion of the President of the Bank on ways and means of increasing the resources, and thereby the lending capacity, of the Bank by raising funds in markets outside of the United States. I am sure that all of us will bring these suggestions to the attention of the proper authorities in our own countries and do our utmost to promote their acceptance by the peoples of our countries and their governments. We can carry back the conviction frequently expressed here that these institutions are effective instruments of international financial cooperation, and that countries serve their own interests best by participating most fully in these organizations. We can convey to our people the eagerness of the managements and staffs of these organizations to be of help in a practical and sympathetic manner.

    Perhaps the most important accomplishment of these sessions is in helping to overcome the misunderstandings about the policies of the Fund and the Bank prevalent in a number of member countries. Whether it was the fear of the Fund’s being too doctrinaire in its policy on exchange rates, or the fear that the Bank was, to some extent, influenced by political considerations in making loans, these and other fears can be overcome by our transmitting to those concerned the explanation of the true bases of the policies adopted by the Fund and the Bank which we have been given here. As a representative of China, I would like to express my particular gratification at the deep sense of understanding shown by all member countries for the problems and aspirations of the less developed countries.

    Among the responsibilities we have fulfilled this week has been the election of new Boards of Executive Directors. I am sure that I speak for all in expressing our appreciation to those Executive Directors who have served so conscientiously and well during the last two years and who are now departing to enable representatives of other countries to sit in their places. These departing Executive Directors have done much to build the fine traditions which we have come to associate with the Bank and the Fund. I am sure that their efforts will be an inspiration to the new Executive Directors who have come in to pick up where they are leaving off. We are happy that a number of our Executive Directors will continue to serve as Executive Directors, since the accumulated experience and continuity which they will provide will be of the greatest usefulness to their organizations.

    As I have said before, the year ahead will undoubtedly be a busy one. I am sure that when we meet again in Washington we will have made even further progress in world reconstruction and development and that, in the making of this progress, the Fund and the Bank will have played increasingly important roles.

    Gentlemen, with these concluding remarks, the Third Annual Meeting of the Boards of Governors of the Fund and the Bank is called to a conclusion.

    Appendix B. Second Regular Election of Executive Directors 50

    Report of the Executive Directors

    1. Section 3 (d) of Article XII of the Articles of Agreement of the Fund provides that elections of elective Directors shall be conducted at intervals of two years. The first election of Executive Directors was held at the Inaugural Meeting of the Board of Governors at Savannah, Georgia, in March 1946, and Resolution No. 4 adopted at that meeting provided in part that, “the next regular election of the Executive Directors shall take place at the annual meeting of the Board of Governors in September 1948.”

    Number of Executive Directors to be Elected at Second Regular Election

    2. Section 3 (b) of said Article XII provides that there shall be not less than twelve Executive Directors, of whom

    (i) five shall be appointed by the five members having the largest quotas;

    (ii) not more than two shall be appointed when the provisions of Article XII, Section 3 (c) apply;

    (iii) five shall be elected by the members not entitled to appoint directors, other than the American Republics; and

    (iv) two shall be elected by the American Republics not entitled to appoint directors.

    3. Section 3 (b) of said Article XII further provides that, “When governments of other countries become members, the Board of Governors may, by a four-fifths majority of the total voting power, increase the number of directors to be elected.”

    4. Resolution No. 10, adopted by the Board of Governors at its Inaugural Meeting, provides in substance that, if at any time before the second election of Executive Directors, the governments of one or more countries not listed in Schedule A of the Articles of Agreement have been admitted to membership and the members not entitled to appoint Executive Directors whose votes are not included in those entitled to be cast by Executive Directors then holding office have votes totalling 4,000 there “shall be one additional Executive Director who shall hold office until the second election of Executive Directors.”

    5. Since the first election of Executive Directors and the adoption of Resolution No. 10, the governments of the following countries not theretofore members of the Fund have become members (countries indicated with an asterisk were listed in Schedule A of the Articles of Agreement):

    CountryNumber of votesDate of Admission
    * Denmark930March 30, 1946
    *Venezuela400December 30, 1946
    Turkey680March 11, 1947
    Italy2,050March 27, 1947
    Syria315April 10, 1947
    Lebanon295April 14, 1947
    *Australia2,250August 5, 1947
    Finland630January 14, 1948
    Austria750August 27, 1948

    6. On April 29, 1947, the Executive Directors, having determined that the conditions of Resolution No. 10 had been fulfilled, ordered the election of an additional and thirteenth Executive Director, and the election was completed on May 14, 1947.

    7. The Board of Governors, by Resolution No. 2–8 adopted at its Second Annual Meeting, provided for the election of a fourteenth Executive Director after December 31, 1947, to “hold office from his election until the second election of Executive Directors.” Pursuant to that resolution, the election of the fourteenth Executive Director was ordered by the Executive Directors on January 6, 1948, and was completed on January 30, 1948.

    8. There are, therefore, fourteen Executive Directors of the Fund, of whom nine have been elected, two of them at interim elections held since the first election of Executive Directors.

    9. The Executive Directors have considered the question of the number of Executive Directors to be elected at the Second Regular Election of Executive Directors, and have concluded that it would be in the best interests of the Fund and its members if the number of Executive Directors to be elected at that election should be nine, seven of them being elected under Article XII, Section 3 (b) (iii) and two under Article XII, Section 3(b)(iv).

    Repeal of Resolution No. 10

    10. The above-mentioned Resolution No. 10, adopted by the Board of Governors at its Inaugural Meeting, by its terms applies only to the period prior to the second election of Executive Directors. The Executive Directors believe that there is no longer any necessity for the election of additional Executive Directors between regular elections. While, by its terms, said Resolution No. 10 will not be applicable after the second regular election of Executive Directors, in order that there may not be any misunderstanding in that regard, it is recommended that said resolution be repealed.

    Adjustments in Percentages of Votes Required for Election

    11. If nine Executive Directors are to be elected at the second regular election of Executive Directors, certain adjustments will be necessary in the minimum and maximum percentages provided in Schedule C. The Executive Directors, therefore, recommend the following adjustments:

    (a) The percentage of eligible votes required for election as specified in paragraphs 2 and 5 of Schedule C shall be 13%; and

    (b) The maximum percentage of eligible votes for any one nominee as specified in paragraphs 3, 4 and 5 of Schedule C shall be 15%.

    Proposed Rules for the Conduct of Election

    1. Definitions. Whenever used in these rules, unless the context shall otherwise require, the following terms shall have the respective meanings hereinafter set forth:

    (a) The term “Articles” means the Articles of Agreement of the Fund.

    (b) The term “Schedule C” means Schedule C of the Articles with the adjustments specified in these rules.

    (c) The term “Board” means the Board of Governors of the Fund.

    (d) The term “Chairman” means the Chairman of the Board of Governors or a Vice-Chairman who may at the time in question be presiding as Chairman of the Board.

    (e) The term “Governor” includes the Alternate Governor and any Temporary Alternate Governor designated in accordance with Sec. 12 of the By-Laws, when acting for the Governor.

    (f) The term “Secretary” means the Secretary of the Fund.

    (g) The term “election” means the second regular election of Executive Directors.

    (h) The term “meeting” means the meeting of the Board at which the election is held.

    2. Date of Election. The election shall be held at the Third Annual Meeting of the Board at a time to be arranged by the Secretary in consultation with the Chairman.

    3. Schedule C. Subject to the adjustments hereinafter set forth, the provisions of Schedule C of the Articles shall apply to the conduct of the election.

    4. Number of Executive Directors to be elected under Art. XII, Sec. 3(b) (iii). At such election seven Executive Directors shall be elected under Art. XII, Sec. 3 (b) (iii).

    5. In view of the number of Executive Directors to be elected under Art. XII, Sec. 3 (b) (iii),

    (a) The percentage of the eligible votes required for election as specified in paragraphs 2 and 5 of Schedule C shall be thirteen percent;

    (b) The maximum percentage of eligible votes for any one nominee as specified in paragraphs 3, 4 and 5 of Schedule C shall be fifteen percent.

    6. Nominations.

    (a) Candidates for election as Executive Directors shall be eligible for election only if nominated by one or more Governors.

    (b) All nominations shall be made on a Nomination Form to be obtained from the Office of the Secretary and each such form shall be signed by the Governor or Governors nominating the candidate.

    (c) A Governor may not nominate more than one candidate.

    (d) Nominations shall be closed when the Chairman announces the list of candidates immediately before the balloting begins.

    7. Tally Sheets. Prior to the election, the Secretary shall prepare Tally Sheets which will be posted at the Meeting and distributed to each Governor.

    8. Form of Ballot. The Secretary shall prepare and have available prior to the election a sufficient number of ballot forms.

    9. Supervision of the Election. The Chairman shall supervise the election and shall appoint such tellers and other assistants as he deems necessary.

    10. Distribution of Ballots. One ballot form shall be furnished to each Governor eligible to vote immediately before a ballot is taken. On any particular ballot only ballot forms so distributed shall be eligible to be counted.

    11. Balloting—Order. The first ballot shall be simultaneous balloting of all the Governors entitled to participate in the election of seven directors under Article XII, Section 3 (b) (iii) and all of the American Republics entitled to participate in the election of two directors under Article XII, Section 3 (b) (iv). The balloting for the seven directors elected under Article XII, Section 3 (b) (iii) shall then be concluded before any further ballots are taken for the two directors to be elected by the American Republics.

    12. Balloting—General. Each ballot shall be taken as follows:

    (a) The roll of eligible Governors shall be called in the alphabetical order of the members represented by such Governors.

    (b) Immediately after a member’s name is called, the Governor for such member shall deposit his signed ballot in a ballot box which shall be provided for the purpose.

    (c) When the roll call shall have been completed and the ballots shall have been cast, the Chairman shall cause the ballots to be counted and shall announce (i) the names of the members whose Governors voted for each nominee and the total number of votes received by such nominee, (ii) the name of each person elected, together with the names of the members whose votes counted towards his election under Schedule C, paragraphs 3, 4 and 7, and (iii) the names of the members whose Governors are eligible to vote on the next ballot.

    (d) In the event that the tellers shall be of the opinion that any particular ballot is not properly executed, they shall, if possible, afford the Governor casting such ballot an opportunity to correct it before tallying the results; and such ballot, if so corrected, shall be deemed to be a valid ballot.

    13. Recess. After any ballot, the Chairman may recess the meeting for such period as he may deem necessary, if in his opinion such action will facilitate the election.

    14. Balloting—Second and Following Ballots for Election of Seven Executive Directors under Article XII, Section 3(b) (iii).

    (a) If, as a result of any ballot and the preceding ballots (if any), seven Executive Directors shall not have been elected, a succeeding ballot shall be taken. The Governors eligible to vote on such succeeding ballot shall be only (i) those Governors who voted on the preceding ballot for any nominee not elected, and (ii) those Governors whose votes for a nominee elected on the preceding ballot are deemed under paragraph 4 of Schedule C to have raised the votes cast for such nominee above 15 percent of the eligible votes.

    (b) The votes of a Governor shall be deemed under paragraph 4 of Schedule C to have raised the total votes cast for a nominee over 15 percent of the eligible votes if without the votes of such Governor such total shall be more than 13 percent of the eligible votes and if with the votes of such Governor such total shall be more than 15 percent of the eligible votes.

    (c) If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all, of such Governors could be deemed under paragraph 4 of Schedule C to have raised the total votes received by such nominee above 15 percent of the eligible votes, the Chairman shall determine by lot the Governor or Governors, as the case may be, who shall be eligible to vote on the next ballot.

    15. Balloting—Second and Following Ballots for Election of Two Executive Directors under Article XII, Section 3(b)(iv). The election of two Executive Directors under Article XII, Section 3 (b) (iv) shall be conducted in accordance with the procedure set forth in paragraph 7 of Schedule C.

    16. Elimination of Nominees.

    (a) If two or more nominees shall receive the lowest number of votes within the meaning of Schedule C, paragraph 3 or 7, no nominee shall be dropped from the next succeeding ballot, but if the same situation shall continue on such succeeding ballot, the Chairman shall eliminate by lot one of such nominees from the next succeeding ballot.

    (b) When on any ballot the number of nominees shall not exceed the number of Executive Directors remaining to be elected, each nominee shall be deemed to be elected by the number of votes received by him on such ballot; provided, however, that if on such ballot the votes of any Governor shall be deemed under paragraph 4 of Schedule C to have raised votes cast for any nominee above 15 percent of the eligible votes, no nominee shall be deemed to have been elected who shall not have received on such ballot the required percentage of votes under these rules and a succeeding ballot shall be held on which all nominees not elected on the preceding ballot shall be eligible.

    17. Abstention from Voting.

    (a) If a Governor shall abstain from voting on any of the ballots held for the election of seven directors to be elected under Article XII, Section 3 (b) (iii), he shall be ineligible to vote on any subsequent ballot, and his votes shall not be counted, within the meaning of Article XII, Section 3 (i) as counting towards the election of any Executive Director; provided, however, that if such abstention shall have first occurred on the last ballot of the election, the votes of such Governor shall be deemed to have been cast for the election of the Executive Director elected on such ballot by the least number of votes. (b) If a Governor shall abstain from voting on any of the ballots held for the election of two directors to be elected under Article XII, Section 3 (b) (iv), he shall remain eligible to vote on subsequent ballots.

    18. Effective Date of Election of Executive Directors. The effective date of the election shall be November 1, 1948. Incumbent elected Executive Directors shall serve through the day preceding such date.

    19. General. Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Board. Whenever possible, any such question shall be put in general terms without identifying the members concerned.

    Results of Election

    At the election held at the Board of Governors Session No. 4, September 30, 1948, the following Executive Directors were elected in accordance with the rules adopted by the Board of Governors at Session No. 1, September 27, 1948 (see preceding section).

    The newly elected Directors 51 will cast votes of the countries which elected them, as follows:

    DirectorCasting Votes of
    J. W. BeyenNetherlands
    (Netherlands)Norway
    Guido CarliAustria
    (Italy)Greece
    Italy
    Carlos A. D’AscoliColombia
    (Venezuela)Costa Rica
    Cuba
    Ecuador
    El Salvador
    Guatemala
    Mexico
    Panama
    Venezuela
    S. G. McFarlaneAustralia
    (Australia)Union of South Africa
    Octavio ParanaguaBolivia
    (Brazil)Brazil
    Chile
    Dominican Republic
    Honduras
    Nicaragua
    Paraguay
    Peru
    Uruguay
    Louis RasminskyCanada
    (Canada)Iceland
    Ahmed Zaki Bey SaadEgypt
    (Egypt)Ethiopia
    Iran
    Iraq
    Lebanon
    Philippine Republic
    Syria
    Turkey
    Ernest de SelliersBelgium
    (Belgium)Denmark
    Luxembourg
    Bohumil SuchardaCzechoslovakia
    (Czechoslovakia)Finland
    Poland
    Yugoslavia

    In addition to the nine elected Directors, there are also five Directors who are appointed by member countries having the largest quotas, namely United States (A. N. Overby), United Kingdom (G. L. F. Bolton), China (Yee-Chun Koo), France (Jean de Largentaye) and India (J. V. Joshi).

    Appendix C. Proposed Convention on Privileges and Immunities of the Specialized Agencies

    Letter of Transmittal

    September 3, 1948

    Dear Mr. Chairman:

    The General Assembly of the United Nations has approved a Convention on the Privileges and Immunities of the Specialized Agencies, and has proposed its acceptance by the Specialized Agencies and accession to it by all members of the United Nations and all other members of the respective Specialized Agencies. Representatives of the Fund and the other Specialized Agencies consulted with the Secretary-General of the United Nations in the preparation of this Draft Convention.

    The Subcommittee of the General Assembly of the United Nations, which prepared the Convention, assumed that the requested approval of the Specialized Agencies would be granted by their respective governing bodies. It is the view of the Executive Directors, however, that formal approval by the Board of Governors is not necessary since the Fund will not be a party to the Convention. The Governors need not, therefore, engage in a detailed consideration of the Draft Convention. The Privileges and Immunities now available to the Fund, its Governors, Executive Directors, Alternates, officers and employees will not be diminished by the adherence of members to the proposed Convention, but will in some respects be enlarged thereby.

    The Executive Directors intend to approve the Convention together with an Annex which, as modified from a draft annex suggested to the Fund by the General Assembly of the United Nations, reconciles the Convention with the Articles of Agreement of the Fund. The Executive Directors are furnishing the Convention 52 to the Governors for their information with the hope and the expectation that they will call it to the attention of their governments in order to encourage accession by their governments to the Convention and the enclosed Draft Annex relating to the Fund.

    Sincerely yours,

    gutt

    Chairman of the Executive Board

    Chairman of the Board of Governors

    Third Annual Meeting

    International Monetary Fund

    Annex53 the International Monetary Fund

    In their application to the International Monetary Fund (hereinafter called “the Fund”), the standard clauses shall operate subject to the following provisions:

    1. The following shall be substituted for Section 9:

    " (a) The Fund, its assets, property, income and its operations and transactions authorized by its Articles of Agreement shall be immune from all taxation and from all customs duties. The Fund shall be immune from prohibitions and restrictions on imports and exports in respect of articles imported or exported for its official use and in respect of its publications. The Fund shall also be immune from the collection or payment of any tax or duty.

    " (b) 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 security solely because of its origin; or

    " (ii) If the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Fund.”

    2. The following shall be substituted for Section 19(b):

    " (b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to executive directors, alternates, officers or employees of the Fund who are not local citizens, local subjects, or other local nationals.”

    3. Section 32 of the standard clauses shall only apply to differences arising out of the interpretation or application of privileges and immunities which are derived by the Fund from this Convention and are not included in those which it can claim under its articles or otherwise.

    4. None of the provisions of the standard clauses or of this Annex shall be deemed to modify or amend the Articles of Agreement of the Fund or to impair or limit any of the rights, immunities, privileges or exemptions conferred upon the Fund or any of its members, Governors, Executive Directors, Alternates, officers or employees by the Articles of Agreement of the Fund, or by any statute, law or regulation of any member of the Fund or any political subdivision of any such member, or otherwise.

    Appendix D. Establishment of an International Trade Organization

    Letter of Transmittal

    August 31, 1948

    Dear Mr. Chairman:

    I have the honor to submit herewith for the information of the Board of Governors, the report54 of the Executive Directors on the developments concerning the establishment of an International Trade Organization and the formulation of arrangements for cooperation between the Fund and that organization.

    Sincerely yours,

    gutt

    Chairman of the Executive Board

    Chairman of the Board of Governors

    Third Annual Meeting

    International Monetary Fund

    Report of the Executive Directors 55

    In the Second Annual Report of the Executive Directors to the Board of Governors, mention was made of the developments concerning the establishment of an International Trade Organization (ITO).

    In response to an invitation of the Economic and Social Council of the United Nations, the Fund participated actively in the meetings at which the ITO Charter was drafted and contributed to the formulation of practicable arrangements for cooperation between the Fund and the ITO. The Fund’s representatives attended a series of conferences in which a Preparatory Committee drew up a draft constitution for the ITO. They also took part in the United Nations Conference on Trade and Employment at Havana between November 1947 and March 1948 in which 57 nations drew up the Charter for an International Trade Organization. A copy of the report of the Fund’s representative on the work of the Fund’s delegation to the Havana Conference is submitted for the information of the Board of Governors.

    Without cooperation between the ITO and the Fund, the purposes of both organizations may well be defeated. To ensure such cooperation the Havana Charter provides for full consultation with the Fund. Moreover, the Charter provides that the ITO, before reaching its final decisions on whether quantitative restrictions are consistent with the provisions of the Charter, shall accept the determination of the Fund as to what constitutes a serious decline in a member’s monetary reserves, very low monetary reserves, and a reasonable rate of increase in a member’s monetary reserves, and in respect to the financial aspects of other matters covered in consultation in such cases. Finally, the Charter provides that, in the consultations with the Fund, the ITO shall accept all findings of statistical and other facts presented by the Fund relating to foreign exchange, monetary reserves and balance of payments and shall accept the determination of the Fund whether action by a member of the ITO with respect to exchange matters is in accordance with the Fund Articles of Agreement, or with the terms of a special exchange agreement entered into between the member and the ITO.

    It is anticipated that most members of the ITO will also be members of the Fund. However, such common membership is not specifically provided for in the Charter. Accordingly, ITO members which are not also members of the Fund are required in the Charter to enter into a special exchange agreement with the ITO, in order to prevent their exchange actions from frustrating the objectives of the Charter.

    It may be noted here that twenty-three nations, whose trade constitutes the major part of world trade, negotiated in the course of 1947 a reduction of trade barriers and established, through the General Agreement on Tariffs and Trade, an organization which is already operating and which will continue to operate until it is superseded by the coming into existence of the ITO.

    In the opinion of the Executive Directors both the Charter of the ITO and the General Agreement on Tariffs and Trade provide a satisfactory basis for cooperation with the Fund. Discussions are now taking place concerning temporary arrangements with the Interim Commission of the ITO and with the Contracting Parties of the General Agreement on Tariffs and Trade in respect to the procedure of cooperation between the two institutions. The Executive Directors will keep the Board of Governors informed on further developments and will submit for the approval of the Board of Governors any proposals for agreements of a permanent nature.

    Appendix E. Explanation of Changes in Rules and Regulations 56

    September 3, 1948 Dear Mr. Chairman:

    In accordance with Section 16 of the By-Laws, the changes in the Rules and Regulations set forth in the attached proposed Resolution are submitted for review by the Board of Governors. The changes were adopted by the Executive Directors on August 14, 1947, January 15, February 11, February 20, March 8, and July 30, 1948.

    The following is a brief explanation of the changes made:

    Amendments

    1. B-l. This section was amended to provide that the term “Executive Director”, except where otherwise specified, shall include the Alternate or the temporary Alternate, as the case may be. The revision was agreed on August 14, 1947, provided the Board of Governors adopted the Executive Board’s recommendation for amendment of By-Law 14 (d) to provide for the appointment of temporary Alternate Executive Directors. The Board of Governors took such action at the Second Annual Meeting.

    2. B-8. This section on holidays was amended to accord with the practice followed by the host Government.

    3. C-3. This revised rule expresses the practice with respect to attendance at Meetings of the Executive Board of those staff members indicated by the Chairman.

    4. 1–4. Under Article V, Section 8 (c) or (d), members are required to pay charges on the balances of their currencies held by the Fund in excess of their quotas. These charges increase as the Fund’s holdings increase, and they also increase as the period of time lengthens over which the balances are held by the Fund. This rule specifies the time for making these payments and the manner in which the amount to be paid will be calculated.

    5. 7–5. Under Article V, Section 8 (f), certain charges must be paid in gold, but a member may pay part in its own currency if its monetary reserves bear a specified ratio to its quota. The purpose of the amendment to this rule is to provide a procedure under which members may take advantage of the privilege to pay part of the charges in their own currency.

    6. 1–8. This rule deals with the payment of charges connected with sales of gold to the Fund or purchases of gold from the Fund. The rule has been amended in order to clarify the fact that the charges connected with these transactions which are subject to Article V, Section 8 (f) do not include certain costs which must be reimbursed to the Fund.

    7. J-4. This section was modified to provide that the Managing Director present an annual administrative budget to the Executive Board for approval not later than April 1 of each year. The revision was in consequence of the change in the commencement of the Fund’s fiscal year from July 1 to May 1 of each year.

    8. N-15. Under the modified rule, all travel by the staff is authorized by the Managing Director, with the exceptions specified in the rule.

    Additions

    1. G-6. This rule provides for the payment by members of the costs of moving gold to the Fund’s nearest gold depository where the Fund accepts gold from the member elsewhere. These costs are not subject to Article V, Section 8 (f). The new rule, therefore, is included under heading “G—Fund Transactions” instead of under “I—Repurchases and Charges” as was the case formerly, i.e., in 1–3, which has now been eliminated.

    2. G-7. This rule deals with estimated costs to be reimbursed to the Fund when a member sells gold to the Fund pursuant to Article V, Section 6 (a). The explanation for this rule is the same as for G-6, save that formerly this matter was governed by 1–8.

    Deletion

    1. 1–3. This rule was eliminated when the new rule G-6 incorporating its substance was adopted.

    Sincerely yours,

    gutt

    Chairman of the Executive Board

    Chairman of the Board of Governors

    Third Annual Meeting

    International Monetary Fund

    Changes in Rules and Regulations

    RESOLVED:

    That the Board of Governors of the International Monetary Fund hereby notifies the Executive Directors that it has reviewed the following changes in the Rules and Regulations and has no modifications to suggest:

    I. Amendments

    Section B-l

    Amended text adopted August 14, 1947:

    “Executive Director, except where otherwise specified, shall include the Alternate or the temporary Alternate, as the case may be.”

    [Former text:

    “Executive Director, except where otherwise specified, shall include the Alternate.”]

    Section B-8

    Amended text adopted March 8, 1948:

    “Business day refers to the normal working hours of the Fund, 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, on Monday through Friday of each week with the following exceptions (which will include the succeeding Monday whenever one of the dates below falls on a Sunday):

    January 1

    February 22

    May 30

    July 4

    First Monday in September

    November 11

    Fourth Thursday in November

    December 25”

    [Former text:

    “Business day refers to the normal working hours of the Fund, 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, on Monday through Friday of each week with the following exceptions:

    January 1

    February 22

    May 30

    July 4

    First Monday in September

    November 11

    Fourth Thursday in November

    December 25”]

    Section C-3

    Amended text adopted January 15, 1948:

    “Meetings of the Executive Board shall be open to attendance by the Secretary and such members of the staff as the Chairman indicates. At the request of the Chairman or any Executive Director meetings may be held in executive session, or the Executive Board may determine which particular members of the staff may attend any session.”

    [Former text:

    “Except by consent of the Executive Directors present, meetings shall be open to attendance only by Executive Directors, the Managing Director, the Secretary and such members of the secretariat as the Chairman indicates.”]

    Section I-4

    Amended text adopted July 30, 1948:

    “ (a) As soon as possible after July 31, October 31, January 31, and April 30, the Fund shall notify each member of the charges it owes to the Fund pursuant to Article V, Section 8 (c) or (d), for the three calendar months ending on each such date. These charges shall be payable within ten days after receipt of such notice.

    “ (b) Such charges payable by each member shall be computed on the basis of the ‘average of the holdings’ which, as used in this section, means the average daily balances of its currency held by the Fund in excess of its quota calculated as follows:

    “ (i) At the end of each calendar month there shall be averaged for each member the daily amounts by which the Fund’s holdings of its currency on the Fund’s books at the close of each day during that month have exceeded its quota on each such day;

    “ (ii) The Fund’s holdings of each member’s currency shall consist of all of its currency except amounts, not in excess of 1/100 of 1% of the member’s quota, in a special account to meet administrative expenses.

    “ (c) The period of time during which the Fund’s holdings of a member’s currency have been at a particular level shall be the continuous period of time during which the average of the holdings has not fallen below that level, and, in determining periods of time for the application of the charges, changes in the average of the holdings shall affect the calculation of time periods in the following way:

    “ (i) Each increase in the average of the holdings shall create a new segment of the holdings which will be equal to the amount of the increase and the period of time during which each segment is held shall be measured from the beginning of the month in which the increase in the average of the holdings occurs.

    “ (ii) Each decrease in the average of the holdings shall terminate the period of time during which the holdings have been in excess of the new average and the period of time shall terminate at the end of the month preceding that in which the decrease in the average of the holdings occurs.

    “ (d) (i) The charge to be levied on each segment to the extent that it is within the first bracket of 25 per cent in excess of the quota shall be nil for the first three months, ½ per cent for the next nine months, 1 per cent for the second year, and an additional ½ per cent for each subsequent year.

    “ (ii) The charge to be levied on each segment to the extent that it is within the second bracket of more than 25 per cent and not more than 50 per cent in excess of the quota shall be 1 per cent for the first year and an additional ½ per cent for each subsequent year.

    “ (iii) The charge to be levied for the first year on each segment, to the extent that it is within each higher 25 per cent bracket in excess of the quota, shall be ½ per cent higher than that levied for the first year in the next lower bracket and an additional ½ per cent for each subsequent year.”

    [Former text:

    “At quarterly intervals the Fund shall notify each member of the charges due to the Fund pursuant to Article V, Section 8 (c) or (d) on the balance of its currency held by the Fund in excess of its quota. These charges shall be paid within ten days after receipt of such notice.”]

    Section I-5

    Amended text adopted July 30, 1948:

    “ (a) If, in accordance with Article V, Section 8 (f), a member wishes to pay in its own currency part of any charge due to the Fund pursuant to 1–4, the proportion to be paid in such currency shall be calculated on the basis of its monetary reserves at the end of the quarter of the financial year of the Fund to which such charges apply.

    “ (b) If, in accordance with Article V, Section 8 (f), a member wishes to pay in its own currency part of any charge due to the Fund pursuant to 1–2 or 1–8, the proportion to be paid in such currency shall be calculated on the basis of its monetary reserves on the day on which the charge is due; provided, however, that if the member would encounter undue difficulties in providing for that day the data required by the Fund in the monetary reserve report forms sent to members, the proportion to be paid in the member’s currency shall be calculated on the basis of its monetary reserves at the end of the quarter of the financial year of the Fund in which the charge becomes due. The member, when making a provisional payment in accordance with (c) below, shall advise the Fund whether the member will provide monetary reserve data for the day on which the charge becomes due or for the end of the quarter in which the charge becomes due.

    “ (c) Whenever a charge is due under 1–2, 1–4, or 1–8, and the member wishes to pay part thereof in its own currency, the member shall make a provisional payment in gold and currency on the basis of its own estimate of its monetary reserves for the appropriate day or end of quarter of the financial year of the Fund as specified in (a) or (b) above. The member shall provide the Fund with the data, for such appropriate day or end of quarter, required by the Fund in the monetary reserve report forms sent to members, and such data shall be provided to the Fund not later than six months from the aforesaid appropriate day or end of quarter. On the basis of such data, the Fund shall make a final determination of the proportions of the charge to be paid in gold and in currency, and final adjustment of the provisional payment shall be made on the date specified by the Fund. If the member fails to provide its monetary reserve data within the period prescribed herein, the whole of the charge shall be finally payable in gold.”

    [Former text:

    “A member wishing to pay in its own currency part of any charges due shall submit to the Fund a statement giving the necessary justification. Provisional payment shall be made on the basis of the member’s statement, subject to final determination by the Fund of the proportion to be paid in gold.”]

    Section I-8

    Amended text adopted July 30, 1948:

    “When any member sells gold to the Fund pursuant to Article V, Section 6 (a), or buys gold from the Fund, the Fund may levy a handling charge which shall be paid in accordance with Article V, Section 8 (f).”

    [Former text:

    “When any member offers gold to the Fund pursuant to Article V, Section 6 (a), the Fund shall levy a charge (unless in particular cases it decides otherwise) to cover the estimated costs that would be incurred by the Fund if it used the gold so acquired to purchase the currency it has sold.”]

    Section J-4

    Amended text adopted February 20, 1948:

    “The Managing Director shall prepare an annual administrative budget for presentation to the Executive Board for approval not later than April 1 of each year.”

    [Former text:

    “The Managing Director shall prepare an annual administrative budget for presentation to the Executive Board for approval not later than June 1 of each year.”]

    Section N-15

    Amended text adopted February 11, 1948:

    “ (a) Official travel will be undertaken by staff members only with the approval of the Managing Director or officials designated by him. In the case of travel outside the continental United States, however, the specific approval of the Managing Director is required.

    “ (b) The Managing Director will inform the Executive Board of all such travel at least once a month.

    “ (c) Staff participation in activities of national agencies and staff travel to a member’s territory require consultation in advance with the Executive Director appointed or elected by the member.

    " (d) Staff participation in deliberations or activities of international agencies or conferences as well as staff travel to a member’s territory, undertaken in response to a formal invitation, require the advance approval of the Executive Board.”

    [Former text:

    “Official travel will be undertaken by staff members only with the approval of the Managing Director or officials designated by him. Official travel outside the continental limits of the United States will be undertaken only with the further approval of the Executive Board.”]

    II. Additions

    Section G-6

    Adopted July 30, 1948:

    “Gold due to the Fund may be delivered at any gold depository of the Fund. Whenever the Fund accepts gold situated elsewhere than at a gold depository of the Fund, the member delivering such gold may be required to assume the actual or estimated costs, as the case may be, of moving the gold to the Fund’s nearest gold depository. Where the member is required to reimburse the Fund for such actual or estimated costs, the Fund shall advise the member in what form reimbursement shall be made.”

    Section G-7

    Adopted July 30, 1948:

    “When any member sells gold to the Fund pursuant to Article V, Section 6 (a), the member may be required to assume the estimated costs that would be incurred by the Fund if it used the gold so acquired to purchase the currency it has sold. The Fund shall advise the member in what form such payment shall be made.”

    III. Deletion

    Section I-3

    Deleted July 30, 1948:

    [Former text which has been incorporated in the new rule G-6:

    “Gold due to the Fund may be delivered to any gold depository of the Fund. The Fund may accept gold situated elsewhere and in such cases shall levy an appropriate charge to cover the cost of moving the gold to its nearest gold depository.”]

    Appendix F. Officers of the Board of Governors for Year 1948–1949
    Chairman:France
    Vice-Chairmen:China
    India
    United Kingdom
    United States
    Appendix G. Procedures Committee for Year 1948–1949
    Chairman:France
    Vice-Chairman:India
    Reporting Member:Union of South Africa
    Members:
    ChinaLuxembourgUruguay
    EthiopiaUnited KingdomVenezuela
    IcelandUnited StatesYugoslavia
    Appendix H. Members of Delegations Attending the Third Annual Meeting
    • AUSTRALIA

      • Governor

        • N. J. O. Makin

      • Alternate Governor

        • S. G. McFarlane

      • Advisers

        • Stanley F. A. Bryson

        • Donald J. Munro

        • Roger H. Star

        • Roland Wilson

    • AUSTRIA

      • Governor

        • Hans Rizzi

      • Alternate Governor

        • Franz Stoeger-Marenpach

    • BELGIUM

      • Governor

        • Maurice Frere

      • Advisers

        • Hubert Ansiaux

        • Ernest de Selliers

      • Staff

        • Miss Louise L. P. Dethise

    • BOLIVIA

      • Governor

        • Hector Ormachea Zalles

      • Alternate Governor

        • Jaime Gutierrez Guerra

      • Adviser

        • Damaso Carrasco

    • BRAZIL

      • Governor

        • Francisco Alves dos Santos-Filho

      • Alternate Governor

        • Octavio Paranagua

    • CANADA

      • Governor

        • Douglas Charles Abbott

      • Alternate Governor

        • Graham F. Towers

      • Advisers

        • J. F. Parkinson

        • Louis Rasminsky

      • Staff

        • Miss Doris L. Bentley

    • CHILE

      • Alternate Governor

        • Fernando Manes

    • CHINA

      • Governor

        • Yun-wu Wang

      • Alternate Governor

        • Te-Mou Hsi

      • Advisers

        • T. T. Chang

        • Yueh-Lien Chang

        • Yee-Chun Koo

      • Technical Advisers

        • Mun-Ho Leung

        • Yih Loh

        • Deson Sze

        • Hsioh-Yih Wang

      • Staff

        • Miss Pearl Dorain

    • COLOMBIA

      • Governor

        • Emilio Toro

      • Alternate Governor

        • Ignacio Copete-Lizarralde

    • COSTA RICA

      • Governor

        • Julio Pena

      • Alternate Governor

        • Angel Coronas

      • Adviser

        • Enrique Pucci

    • CUBA

      • Alternate Governor

        • Jose A. Rodriguez Dod

    • CZECHOSLOVAKIA

      • Governor

        • Jozef Goldmann

      • Alternate Governor

        • Ladislav Biel

      • Advisers

        • Zdenko Blazej

        • Zikmund Konecny

        • J. V. Mladek

    • DENMARK

      • Governor

        • Carl Valdemar Bramsnaes

      • Alternate Governor

        • Einar Dige

      • Adviser

        • Count B. Ahlefeldt

    • DOMINICAN REPUBLIC

      • Governor

        • Jesus Maria Troncoso

      • Staff

        • Miss Angelica Romero

    • ECUADOR

      • Governor

        • Guillermo Perez-Chiriboga

      • Alternate Governor

        • Pedro L. Nunez

      • Staff

        • Francisco Alexander

    • EGYPT

      • Governor

        • Ahmed Zaki Bey Saad

      • Alternate Governor

        • Mahmoud Saleh El Falaki

    • EL SALVADOR

      • Alternate Governor

        • Manuel Melendez V.

    • ETHIOPIA

      • Governor

        • George A. Blowers

    • FINLAND

      • Governor

        • Sakari Tuomioja

      • Alternate Governor

        • Ralf Torngren

      • Advisers

        • Johan Albert Nykopp

        • Pentti Pajunen

    • FRANCE

      • Governor

        • Pierre Mendes-France

      • Temporary Alternate Governor

        • Wilfrid Baumgartner

      • Advisers

        • Pierre Calvet

        • Guillaume Guindey

        • Jean de Largentaye

        • Christian Valensi

      • Staff

        • Miss Gertrude G. Picard

    • GREECE

      • Governor

        • Xenophon Zolotas

      • Alternate Governor

        • Alexander Couclelis

      • Staff

        • Miss Marina Goudis

    • GUATEMALA

      • Governor

        • Manuel Noriega Morales

      • Alternate Governor

        • Leonidas Acevedo

    • HONDURAS

      • Governor

        • Julian R. Caceres

      • Staff

        • Humberto R. Portillo

    • ICELAND

      • Governor

        • Asgeir Asgeirsson

    • INDIA

      • Governor

        • Sir Chintaman Deshmukh

      • Alternate Governor

        • N. Sundaresan

      • Advisers

        • J. V. Joshi

        • B. K. Madan

        • Keith Cotton Roy

        • D. S. Savkar

    • IRAN

      • Governor

        • Abol Hassan Ebtehaj

      • Adviser

        • Hassein Ahari

    • IRAQ

      • Governor

        • Ahmed Izzet Mohammed

      • Alternate Governor

        • Amin Mumayiz

    • ITALY

      • Governor

        • Gustavo Del Vecchio

      • Alternate Governor

        • Ugo La Malfa

      • Advisers

        • Guido Carli

        • Egidio Ortona

        • Diego Spinelli

    • LEBANON

      • Alternate Governor

        • Georges Hakim

      • Adviser

        • Emile N. Mattar

    • LUXEMBOURG

      • Alternate Governor

        • Hugues Le Gallais

    • MEXICO

      • Temporary Alternate Governor

        • Raul Martinez-Ostos

      • Adviser

        • Rodrigo Gomez

    • NETHERLANDS

      • Governor

        • P. Lieftinck

      • Alternate Governor

        • M. W. Holtrop

      • Advisers

        • J. W. Beyen

        • Willem Koster

        • L. R. W. Soutendijk

      • Staff

        • Miss A. Burgerhout

    • NICARAGUA

      • Alternate Governor

        • Rafael Angel Huezo

      • Adviser

        • Jose Sanson

    • NORWAY

      • Governor

        • Gunnar Jahn

      • Alternate Governor

        • Ole Colbjornsen

      • Advisers

        • Alf Eriksen

        • Hallvard Hillestad

      • Staff

        • Mrs. Elna Poppe

    • PANAMA

      • Governor

        • Octavio Vallarino

      • Alternate Governor

        • Aquilino Vallarino

    • PARAGUAY

      • Governor

        • Juan Plate

    • PERU

      • Alternate Governor

        • Emilio G. Barreto

      • Staff

        • Max Castoriano

    • PHILIPPINE REPUBLIC

      • Governor

        • Joaquin M. Elizalde

      • Alternate Governor

        • Miguel Cuaderno

      • Temporary Alternate Governor

        • Juan A. Barretto

      • Advisers

        • Juan A. Barretto

        • Eduardo Quintero

      • Technical Advisers

        • Delfin E. Silverio

        • Leonides S. Virata

      • Staff

        • Miss Delphine Churko

        • Miss Elena Lichauco

    • POLAND

      • Alternate Governor

        • Janusz Zoltowski

      • Advisers

        • Zygmunt Karpinski

        • Jan Woloszyn

    • SYRIA

      • Governor

        • Faiz El-Khouri

      • Alternate Governor

        • Husni A. Sawwaf

      • Advisers

        • Nihad H. Ibrahim Pasha

        • George J. Tomeh

    • TURKEY

      • Governor

        • Nurullah Esat Suraer

      • Alternate Governor

        • Bulent Yazici

      • Adviser

        • Resat Aksan

    • UNION OF SOUTH AFRICA

      • Alternate Governor

        • Michiel Hendrik de Kock

      • Adviser

        • Henry Oswald de Villiers

    • UNITED KINGDOM

      • Governor

        • Sir Stafford Cripps

      • Alternate Governor

        • Ernest Rowe-Dutton

      • Advisers

        • N. R. Bertram

        • G. L. F. Bolton

        • A. S. Gambling

        • K. M. Goodenough

        • S. C. Leslie

        • J. G. Owen

        • Sir Henry Wilson Smith

        • G. H. Tansley

        • B. F. St. J. Trend

        • Sir John H. E. Woods

      • Staff

        • Miss B. R. Bonney

        • Miss A. B. Hunter

        • Miss Jean E. Johnson

        • Mrs. B. M. Long

    • UNITED STATES

      • Governor

        • John W. Snyder

      • Alternate Governor

        • William L. Clayton

      • Temporary Alternate Governors

        • Andrew N. Over by

        • Frank A. Southard, Jr.

      • Advisers

        • Preston Delano

        • Edmond M. Hanrahan

        • Paul G. Hoffman

        • Thomas J. Lynch

        • William McC. Martin, Jr,

        • Garrison Norton

        • Andrew N. Overby

        • Charles Sawyer

        • James J. Saxon

        • Brent Spence

        • Allan Sproul

        • M. S. Szymczak

        • Wayne Chatfield Taylor

      • Technical Advisers

        • Hawthorne Arey

        • Elting Arnold

        • George L. Bell

        • Henry J. Bittermann

        • Thomas C. Blaisdell, Jr.

        • Clarence I. Blau

        • James R. Brooks

        • Chester L. Callander

        • Philip E. Coleman, III

        • Lewis N. Dembitz

        • Herbert E. Gaston

        • C. Dillon Glendinning

        • J. Burke Knapp

        • L. Werner Knoke

        • Walter C. Lochheim, Jr.

        • James A. McCullough

        • Raymond F. Mikesell

        • Winfield W. Riefler

        • Walter C. Sauer

        • Arthur Smithies

        • Harold R. Spiegel

        • Frank M. Tamagna

        • Rifat Tirana

        • Henry C. Wallich

        • George H. Willis

        • John Parke Young

      • Staff

        • Mrs. Ruth H. Biglow

        • Mrs. Mary E. Cunningham

        • Mrs. Mildred S. Dodd

        • Mrs. Gertrude T. Hallila

        • Mrs. Gina Price

        • Mrs. Elizabeth P. Smith

    • URUGUAY

      • Governor

        • Fermin Silveira Zorzi

      • Alternate Governor

        • Mario La Gamma Acevedo

      • Adviser

        • Carlos Sapelli

    • AUSTRALIA

      • Governor

        • Carlos A. D’Ascoli

      • Temporary Alternate Governor

        • Francisco Alvarez Chacin

    • AUSTRALIA

      • Governor

        • Obren Blagojevic

      • Alternate Governor

        • Dragoslav Avramovic

      • Adviser

        • Mihailo Kolovic

    Observers

    • BANK FOR INTERNATIONAL SETTLEMENTS

      • Roger Auboin

    • FOOD AND AGRICULTURE ORGANIZATION

      • Mary Ladd

      • David W. Lusher

    • INTERIM COMMISSION OF THE INTERNATIONAL TRADE ORGANIZATION

      • J. A. Lacarte

    • INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, ADVISORY COUNCIL

      • Sir Arthur Salter

    • INTERNATIONAL LABOR ORGANIZATION

      • E. J. Riches

    • LIBERIA

      • Sidney de la Rue

    • PAKISTAN

      • M. O. A. Baig

    • SIAM

      • Dilokrit Kridakon

    • UNITED NATIONS

      • Walter Chudson

      • Karol Krcmery

      • Karl Lachmann

    Read by the Governor for the United States, Mr. John W. Snyder, at the Opening Joint Session, September 27, 1948.

    Delivered at the Opening Joint Session, September 27, 1948. Other statements made at the open Joint Sessions are attached as Appendix A.

    Address delivered at Session No. 2, September 28, 1948.

    The Procedures Committee held two meetings, both jointly with the Bank.

    The Report, together with the Rules for the Conduct of the Election, is attached as Appendix B.

    See Appendices C and D.

    Section II relates to the Business of the Bank only and, therefore, has not been included in the Summary Proceedings of the Fund.

    Report No. 2.

    Resolution No. 3. The Election was held at Board of Governors Session No. 4, September 30, 1948; for results, seeAppendix B.

    Annexes V to VIII related to Section II of the Report: “Business of the Board of Governors of the Bank,” and, therefore, have been omitted.

    Meetings were held as scheduled in the above Order of Business.

    Resolution No. 10.

    Resolution No. 11.

    Resolution No. 12.

    Resolution No. 9.

    The meeting was held jointly with the Bank.

    Resolution No. 4.

    Resolution No. 5.

    The Committee held only one meeting.

    See Resolution No. 11, adopted at the Inaugural Meeting of the Board of Governors.

    Resolution No. 6.

    For explanation of changes made, seeAppendix E.

    Resolution No. 7.

    Resolution No. 8.

    For earlier resolutions relating to the Increase in the Quota of Iran, see Resolution No. 11, adopted at the First Annual Meeting, and Resolution No. 3, adopted at the Second Annual Meeting.

    Recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 1 (Joint), September 27, 1948. See alsoAppendix B for text of the Report and results of the Election.

    Recommended by Committee on Membership and adopted by the Board of Governors at Session No. 4, September 30, 1948.

    Recommended by Committee on Membership and adopted by the Board of Governors at Session No. 4, September 30, 1948.

    Recommended by Committee on Finance and adopted by the Board of Governors at Session No. 4, September 30, 1948.

    Recommended by Committee on Rules and Regulations and adopted by the Board of Governors at Session No. 4, September 30, 1948. For explanation of changes made, seeAppendix E.

    Recommended by Committee on Rules and Regulations and adopted by the Board of Governors at Session No. 4, September 30, 1948.

    Recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 5 (Joint), October 1, 1948.

    Recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 5 (Joint), October 1, 1948.

    Recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 5 (Joint), October 1, 1948.

    Recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 5 (Joint), October 1, 1948.

    Delivered at the Opening Joint Session of the Boards of Governors, September 27, 1948.

    Delivered at the Opening Joint Session of the Boards of Governors, September 27, 1948.

    Delivered at the Opening Joint Session of the Boards of Governors, September 27, 1948.

    Delivered at the Opening Joint Session of the Boards of Governors, September 27, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948.

    Delivered at the Closing Joint Session of the Boards of Governors, October 1, 1948. Address delivered at the Opening Joint Session is on page 2.

    Resolution, approving the Report and adopting the rules for the conduct of the Election, was recommended by the Procedures Committee and adopted by the Board of Governors at Session No. 1, September 27, 1948 (Resolution No. 3).

    For Executive Directors holding office prior to the election, see Third Annual Report, Appendix XII.

    The Document was considered by the Procedures Committee and recommended for submission to the Board of Governors for their information only.

    As modified by the Executive Directors of the Fund.

    The Report was considered by the Procedures Committee and recommended for submission to the Board of Governors for their information only.

    See also Third Annual Report, pp. 52–54.

    The changes in Rules and Regulations were reviewed by the Committee on Rules and Regulations. See also Resolution No. 7, adopted by the Board of Governors at Session No. 4, September 30, 1948.

      You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

      Other Resources Citing This Publication