Back Matter

Author(s):
Joseph Gold
Published Date:
December 1989
    Share
    • ShareShare
    Show Summary Details

    Guide to Short Titles

    Gold, Essays, Volume I

    • Gold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Volume I (Washington: International Monetary Fund, 1979).

    Gold, Essays, Volume II

    • Gold, Joseph, Legal and Institutional Aspects of the International Monetary System: Selected Essays, Volume II (Washington: International Monetary Fund, 1984).

    Gold, Pamphlet No. 6

    • Gold, Joseph, Maintenance of the Gold Value of the Funds Assets, IMF Pamphlet Series, No. 6 (Washington: International Monetary Fund, 2d ed., 1971).

    Gold, Pamphlet No. 11

    • Gold, Joseph, Interpretation by the Fund, IMF Pamphlet Series, No. 11 (Washington: International Monetary Fund, 1968).

    Gold, Pamphlet No. 14

    • Gold, Joseph, The Funds Concepts of Convertibility, IMF Pamphlet Series, No. 14 (Washington: International Monetary Fund, 1971).

    Gold, Pamphlet No. 15

    • Gold, Joseph, Special Drawing Rights: The Role of Language, IMF Pamphlet Series, No. 15 (Washington: International Monetary Fund, 1971).

    Gold, Pamphlet No. 23

    • Gold, Joseph, Use, Conversion, and Exchange of Currency Under the Second Amendment of the Funds Articles, IMF Pamphlet Series, No. 23 (Washington: International Monetary Fund, 1978).

    Gold, Pamphlet No. 33

    • Gold, Joseph, SDRs, Currencies, and Gold: Fourth Survey of New Legal Developments, IMF Pamphlet Series, No. 33 (Washington: International Monetary Fund, 1980).

    Gold, Pamphlet No. 40

    • Gold, Joseph, SDRs, Currencies, and Gold: Sixth Survey of New Legal Developments, IMF Pamphlet Series, No. 40 (Washington: International Monetary Fund, 1983).

    Gold, Pamphlet No. 44

    • Gold, Joseph, SDRs, Currencies, and Gold: Seventh Survey of New Legal Developments, IMF Pamphlet Series, No. 44 (Washington: International Monetary Fund, 1987).

    Gold, Volume I

    • Gold, Joseph, The Fund Agreement in the Courts (Washington: International Monetary Fund, 1962).

    Gold, Volume II

    • Gold, Joseph, The Fund Agreement in the Courts: Further Jurisprudence Involving the Articles of Agreement of the International Monetary Fund, Volume II (Washington: International Monetary Fund, 1982).

    Gold, Volume III

    • Gold, Joseph, The Fund Agreement in the Courts: Further Studies in Jurisprudence Involving the Articles of Agreement of the International Monetary Fund (Washington: International Monetary Fund, 1986).

    Selected Decisions

    • International Monetary Fund, Selected Decisions of the International Monetary Fund and Selected Documents, Eighth Issue, May 10, 1976, and Thirteenth Issue, April 30, 1987 (Washington).

    Index A. Table of Cases Cited

    • Argentina

    Citibank N. A. v. Narbaitz Hnos. y da. S.C.A.

    • El Derecho, No. 6948 (March 16, 1988)

    Vignola v. Colombo Marchi

    • Revista Jurídica Argentina, La Ley, 1986, B. 301; Journal of International Banking Law, Vol. 1, No. 4 (1986), N-135

    • Australia

    Fitzpatrick v. Pan American World Airways Inc. (unreported)

    Polatex Trading Co. Pty. Limited v. Scandinavian Airlines System and Singapore Airlines Limited No. 23603/81; Air Law, Vol. 10, No. 6 (1985), 292

    S.S. Pharmaceutical Co. Ltd. & Another v. Qantas Airways Ltd. [1989] 1 Lloyd’s Rep. 319

    • Austria

    Supreme Court, July 2, 1958

    • juristische Blätter, February 7, 1959, 73

    • Belgium

    Ceulemans v. Jahn and Barbier

    • Jurisprudence commerciale de Belgique (1968), No. 11–12, Pt. IV, 765; Pesicrisie Belge (1969), Pt. III, 22

    Commercial Tribunal of Courtrai

    • Gold, Volume I, 79

    Panamanian Corporation P. v. A. and B.

    • Journal des Tribunaux (1983), 727

    Van Den Bussche v. Karabassis

    • Journal des Tribunaux, Vol. 16, No. 5423 (1987), 343; International Banking Law, Vol. 6, No. 6 (November 1987), 81

    • England

    American Express International Banking Corporation v. Irvani (unreported)

    • Gold, Volume III, 64

    The Atlantic Star

    • [1973] 1 Q.B. 364

    Babanaft International Co. SA v. Bassatne and Another

    • [1989] 1 All E.R. 433; [1989] 2 W.L.R. 232

    Bank of India v. Trans Continental Commodity Merchants Ltd. and J.N. Patel

    • [1982] 1 Lloyd’s Rep. 427

    Batra v. Ebrahim

    • [1982] 2 Lloyd’s Rep. 11

    Bigos v. Bousted

    • [1951] 1 All E.R. 92

    Derby & Co. Ltd. and Others v. Weldon and Others (No. 3 and No. 4)

    • [1989] 2 W.L.R. 412

    Fothergill v. Monarch Airlines

    • [1980] 2 All E.R. 696

    James Buchanan & Co. Ltd. v. Babco Forwarding and Shipping (UK) Ltd.

    • [1977] 3 All E.R. 1048; 1978 A.C. 141

    Libyan Arab Foreign Bank v. Bankers Trust Company

    • [1989] 3 W.L.R. 314

    Libyan Arab Foreign Bank v. Manufacturers Hanover Trust Co.

    • [1988] 2 Lloyd’s Rep. 494

    Mansouri v. Singh

    • [1986] 2 All E.R. 619; [1986] 1 W.L.R. 1393

    Miliangos v. George Frank (Textiles) Ltd.

    • [1976] A.C. 443

    Sharif v. Azad

    • [1966] 3 All E.R. 785; [1967] 1 Q.B. 605;

    • [1966] 3 W.L.R. 1285

    Snell v. Unity Finance

    • [1964] 2 Q.B. 203

    Toprak Mahsulleri Ofisi v. Finagrain Compagnie Commerciale Agricole et Financiere S.A.

    • [1979] 2 Lloyd’s Rep. 98

    United City Merchants (Investments) Ltd. et al. v. Royal Bank of Canada et al.

    • [1982] 2 All E.R. 720; [1983] 1 A.C. 168

    Re United Railways of the Havana and Regla Warehouses Ltd.

    • [1961] A.C. 1007

    Wilson, Smithett & Cope Ltd. v. Terruzzi

    • [1976] 1 All E.R. 817; [1976] 1 Q.B. 683;

    • [1976] 1 Q.B. 703

    • France

    Constant v. Lanata

    • Revue critique de droit international privé, Vol. 59, No. 3 (1970), 464

    Daiei Motion Picture Co. Ltd. v. Zavicha

    • La Semaine Juridique, No. 21, May 26, 1971, Jurisprudence II, 16751

    Dame Ba Ta Thu Van v. Banque Nationale de Paris

    • Recueil Dalloz Sirey, 1985, No. 43 (December 19, 1985)

    Dame Dang Thi To Tarn et autres v. Banque Française Commerciale

    • Recueil Dalloz Sirey, 1985, No. 43 (December 19, 1985)

    Moojen v. Von Reichert

    • Journal du Droit International, Vol. 85 (1958), 1050; Revue critique de droit international privé, Vol. 51 (1962), 67

    Pakistan International Airlines v. Compagnie Air Inter S.A. et al.

    • Droit maritime français, Vol. 32 (1980), 285

    Société Egyptair v. Chamie

    • Recueil Dalloz Sirey, 1987, Jurisprudence 525; Revue critique de droit international privé, Vol. 73 (1984), 310

    • Germany, Federal Republic of

    Amtsgericht, Dusseldorf

    • Versicherungsrecht, Heft 38 (1985), 946

    Federal Supreme Court (Bundesgerichtshof)

    • E. (defendant) v. A.S.D. (plaintiff) II ZR 305/55, BGHZ, 22, 24

    Federal Supreme Court (Bundesgerichtshof)

    • Wertpapier-Mitteilungen (WM), No. 21, May 26, 1962, 601

    Federal Supreme Court (Bundesgerichtshof)

    • Neue Juristische Wochenschrift, Vol. 23 (August 20, 1970), 1507

    Federal Supreme Court (Bundesgerichtshof)

    • WM: Zeitschrift fur Wirtschaftsund Bankrecht, Jahrg. 31, No. 12 (1977), 332

    Federal Supreme Court (Bundesgerichtshof)

    • VII ZR 48/78, Cologne Gold, Volume II, 294

    Federal Supreme Court (Bundesgerichtshof)

    • III ZR 74/85

    • Wertpapier-Mitteilungen (WM), No. 19

    • (May 10, 1986), 600; Entscheidungssammlung zum Wirtschafts-und Bankrecht (WuB), 7/1986, VII B2, 894

    Federal Supreme Court (Bundesgerichtshof)

    • VII ZR 43/86

    • Recht der Internationalen Wirtschaft (RIW),

    • Heft 7 (1987), 551

    Kammergericht, Berlin

    • KG Berlin 16 U 1660/73

    • Internationales Privatrecht: Rechtsprechung 1974, No. 138, 364

    Landgericht Aachen

    • Case 11 0 643/82, May 14, 1986

    Landgericht, Frankfurt am Main

    • 3/3 O 33/84

    • Praxis des Internationalen Privat- und

    • Verfahrungsrechts (IPRax), Heft 6 (1986), 298

    Landgericht, Hamburg, Chamber 12, Commercial Affairs

    • Gold, Volume I

    • Landgericht, Hamburg

    • 66 O 185/76

    • Internationales Privatrecht: Rechtsprechung 1978, No. 126

    Landgericht, Karlsruhe

    • O 15/84, KfH II

    • Recht der Internationalen Wirtschaft (RIW), Heft 5, May 1986, 385; Internationales Privatrecht: Rechtsprechung 1984

    • (IPRspr. 1984), No. 118A, 278

    Landgericht, Munich

    • Neue Juristische Wochenschrift, Jahrg. 37, Heft 48 (1984), 2767;

    • VersR 1984, 693; Juristenzeitung 41 (1985), 141

    Lessinger v. Mirau

    • Jahrbuch fur Internationales Recht, Vol. 5, Part 1 (1955), 113

    Loeffler-Behrens v. Beermann

    • Oberlandesgericht, Karlsruhe, December 15, 1965

    • Gold, Volume II, 116

    • Oberlandesgericht, Frankfurt

    • U 240/85

    • Recht der Internationalen Wirtschaft (RIW), Heft 3 (1987), 223

    Oberlandesgericht, Hamm

    • Federal Supreme Court (Bundesgerichtshof) 10 U 228/84 Wertpapier-Mitteilungen (WM), No. 19, May 10, 1986, 599; Entscheidungssammlung zum Wirtschafts- und Bankrecht (WuB), 1986, VIl B2, 893

    Oberlandesgericht, Hamburg

    • Entscheidungen zum Interzonalen Privatrecht, 1958-59, No. 135A

    Oberlandesgericht, Munich

    • Recht der Internationalen Wirtschaft (RIW), Heft 12 (1986), 998

    • Hong Kong

    White v. Roberts

    • 33 Hong Kong Law Reports (1949), 231

    • Hungary

    • Konsumex Foreign Trade Company v. Malev Hungarian Airlines International Air Transport Association, Air Carrier Liability Reports, No. 566 (May 1983), 11

    Italy

    Coccia v. Turkish Airlines Company Foro Padano (1985), 157

    S.P.A. Alitalia-Linee Aeree Italiane v. S.R.L. Salvati & Santori Diritto Marittimo (1985), 328

    Wilson, Smithett & Cope Ltd. v. Terruzzi Rivista di diritto internazionale privato e processuale (1982), 107

    • Korea

    Kim Tong-hun et al. v. Korean Airline Co. Ltd.

    • Case 87NA1017, Tenth Civil Court of Seoul High Court

    Luxembourg

    • Société ‘Filature et Tissage X. Jourdain’ v. Epoux Heynen-Bintner Pasicrisie Luxembourgeoise (1957), 33

    Mexico

    • Case of Oscar Roberto Enríquez y otra Amparo en Revisión 676/84, Pleno

    • Netherlands

    • Amsterdam Grain Trade Association (Vereniging Amsterdamse Graanhandel) Arbitral award, January 11, 1982

    • Tijdschrift voor Arbitrage 1982, Vol. 3, No. 12, 72

    Frantzmann v. Ponijen

    • Nederlandse Jurisprudentie 1960, No. 290

    Indonesian Corporation P. T. Escomptobank v. N. V. Assurantie Maatschappij de Nederlanden van 1845

    • Nederlands Tijdschrift voor Internationaal Recht (Netherlands International Law Review) Vol. 13, No. 1 (1966), 58

    Jachtwerf IJselmeer B. V. v. Herman

    • Nederlands Internationaal Privaatrecht Rechtspraak, 1987, No. 388;

    • Nieuwsbrief Volkenrecht, Vol. 9, No. 1 (February 1988)

    Stichting Leids Kerkhovenfonds v. Bank of Indonesia

    • Gold, Volume l, 112

    • Singapore

    Bank of India v. Trans Continental Commodity Merchants Ltd. & Anor. (1986) 2 Malayan Law Journal, 342

    • Spain

    Audiencia Territorial de Madrid

    • Revista Española de Derecho Internacional, Vol. 38 (1986), 353

    • United States

    Allied Bank International et al. v. Banco Credito Agricola de Cartago et al.

    • 757 F.2d 516 (2d Cir. 1985)

    Banco Nacional de Cuba v. Sabbatino

    • 376 U.S. 398 (1964); 84 S.Ct. 923;

    • 11 L Ed 2d 804 (1964)

    Callejo v. Bancomer, S.A., et al.

    • 764 F.2d 1101 (1985)

    Confederation Life Association v. Ugalde

    • 151 So. 2d 315 (1963); 163 So. 2d 343 (1964);

    • 164 So. 2d 1 (1964); 379 U.S. 915 (1964)

    Cuban Insurance Cases

    • Gold, Volume II, 43–94

    Davies et al. v. Banco Mexico, S.A.

    • See West et al. v. Multibanco Comermex S.A., Bancomer, S.N.C., and Banco National de Mexico, S.A.

    De Sánchez v. Banco Central de Nicaragua

    • 770 F.2d 1385 (5th Cir. 1985)

    Grass et al v. Credito Mexicano, S.A.

    • 797 F.2d 220 (5th Cir. 1986)

    Hilton v. Guyot

    • 40 L Ed 95 (1895)

    International Bank for Reconstruction and Development and International Monetary Fund v. All America Cables and Radio, Inc., et al. FCC Docket No. 9362, 8RR 927

    John Sanderson & Co. (Wool) Pty. Ltd. v. Ludlow Jute Co. Ltd.

    • 569 F.2d 696 (1978)

    Kinney Shoe Corp. v. Alitalia Airlines

    • 15 Av. Cas. (CCH) 18, 509 (S.D.N.Y. 1980)

    Kolovrat v. Oregon

    • 81 S.Ct. 922, 366 U.S. 187 (1961)

    Libra Bank Ltd. et al. v. Banco Nacional de Costa Rica S.A.

    • 570 F. Supp. 870 (S.D.N.Y. 1983)

    Riedel v. Bancam, S.A.

    • 792 F.2d 587 (6th Cir. 1986)

    • Southwestern Shipping Corporation v. National City Bank of New York

    • 173 N.Y.S. 2d 509 (1958); 178 N.Y.S. 2d 1019 (1958);

    • 190 N.Y.S. 2d 352 (1959); 361 U.S. 895 (1959);

    • 80 S.Ct. 198 (1959)

    Theye y Ajuria v. Pan American Life Insurance Co.

    • 154 So. 2d 450 (1963); 161 So. 2d 70 (1964);

    • 377 U.S. 997; 84 S.Ct. 1922 (1964)

    Thompson et al. v. Bancomer, S.N.C.

    • See West et al. v. Multibanco Comermex S.A., Bancomer, S.N.C., and Banco Nacional de Mexico, S.A.

    Trans World Airlines, Inc. v. Franklin Mint Corporation et al.

    • 466 U.S. 243 (1984); 80 L Ed 2d 273; 690 F.2d 303 (1982);

    • 737 F.2d 456 (1984)

    Underhill v. Hernandez

    • 168 U.S. 250; 18 S.Ct. 83; 42 L Ed 456 (1897)

    Volkswagenwerk AG v. Schlunk

    • U.S. Supreme Court, No. 86-1052 (6/15/88)

    West et al. v. Multibanco Comermex S.A., Bancomer, S.N.C, and Banco Nacional de Mexico, S.A.

    • 807 F.2d 820 (9th Cir. 1987)

    Weston Banking Corporation v. Turkiye Garanti Bankasi A.S.

    • 456 N.Y.S. 2d 684 (1982)

    J. Zeevi and Sons, Ltd. v. Grindlays Bank (Uganda) Ltd.

    • 37 N.Y.2d 220; 333 N.E.2d 168; 371 N.Y.S.2d 892;

    • 423 U.S. 866 (1975)

    • European Communities, Court of Justice of

    Gubisch Maschinenfabrik AG v. Palumbo

    • Case 144/86 (The Times (London), January 12, 1988, 38)

    Kalfelis v. Schroder, Munchmeyer, Hengst and Co. and Others

    • Case 189/87 (The Times (London), October 5, 1988, 44)

    • Iran-United States Claims Tribunal

    Blount Brothers Corporation v. The Islamic Republic of Iran et al.

    • 10 Iran-U.S. C.T.R. 95

    Grune and Stratton v. The Islamic Republic of Iran

    • Claim No. 10059 (Chamber One),

    • Award No. 359-10059-1

    Mark Dallal v. Islamic Republic of Iran, Bank Mellat (formerly International Bank of Iran)

    • 3 Iran-U.S. C.T.R. 10

    Scott, Foresman and Co. v. The Islamic Republic of Iran et al.

    • Case No. 10172, Chamber One, Award No. 313-10172-1

    Index B. Authors

    References to the author’s works have not been included in this index. (The titles of listed authors have been omitted.)

    Page

    Ballarino, Tito

    Barrett, Jonathan

    Basedow, Jürgen

    Bogdan, Michael

    Boggiano, Antonio

    Borricand, Jacques

    Brand, Gregor

    Burton, Gregory

    C

    Camdessus, Michel

    Corten, Olivier

    Coyne, Robert

    Cranston, Ross

    D

    Daems, Alain

    Dickson, Brice

    Dickson, Tim

    Du Plessis, E.D.

    E

    Ebke, Werner F.

    Edwards, Jr., Richard W.

    F

    Flint, David

    Fürnrohr, Gerhart

    G

    Geva, Benjamin

    Giovanoli, Mario

    Goode, R.M.

    Gooding, Kenneth

    GrÄnicher, Dieter

    Guerreri, Giuseppe

    H

    Hafke, Heinz Christian

    Hermann, A. H.

    Hoing, Scott

    Hope, Adrían F.J.

    I

    Issacs, Stuart

    J

    Johnson, Stephen C.

    Joyce, Anne

    J

    Kleiner, Beat

    Knöpfle Franz

    Kohl, Berthold J.

    Krasnostein, David M.

    L

    Larsen, Jeff

    Lauterpacht, Hersch

    Lichtenstein, Cynthia C.

    Löber, Burckhardt

    Lopez, Antonio Marín

    M

    Mann, F.A.

    Martha, R.S.J.

    Martiny, Dr.

    Minch, Lawrence N.

    N

    Negri, Juan Javier

    Nurick, Lester

    P

    Patassy, Benedek

    Patrikis, Ernest T.

    Peaslee, Amos J.

    Petzold, Eckart

    R

    Reithmann, Christoph

    Rigaux, François

    Robert, Eric

    Rutzke, Corinne R.

    S

    Schmidt, Karsten

    Schultsz, Jan C.

    Schwab, George B.

    Simon-Depitre, Marthe

    Spender, John M.

    Sturley, Michael F.

    Swidrowski, Jozef

    T

    Turek, Gerhard

    U

    Urech, Daniel

    V

    Vázquez Pando, Fernando A.

    Vollmer, Andrew

    W

    Weisburg, Henry

    Wood, Philip

    Z

    Zamora, Stephen

    Index C. Subjects

    References in this index are to the first page only of a discussion that extends through several pages.

    A

    Abolition of Official Gold Price, 15, 64

    • Date of, 55, 58, 62, 94

    Act of State Doctrine, 115, 216, 250, 251, 252, 253, 255, 258, 259, 260, 262, 264, 265, 280, 299

    Acts Unlawful at Necessary Place of Performance, 162, 168

    Adjustment, 299

    Advisory Opinions, 6

    Agreement Between United Nations and Fund, 6

    Amendment of Pleadings to Plead Illegality or Unenforceability, 182, 185, 251

    Amparo Proceedings (Mexico), 260

    Arbitral Tribunals and Exchange Control, 20, 137, 227, 232, 233, 234

    Article VIII, Section 2(b) (see also Unenforceability of Exchange Contracts)

    • Application of, by arbitral tribunal, 21, 228, 232, 233, 234

    • Application influenced by relationships between members, 272, 274, 276

    • Assumption that members and not private parties affected, 229

    • Customary international law and, 283

    • Damages for nonperformance, 295, 297

    • Discussion of possible further interpretation by Fund, 29

    • Economic rationale of provision, 125

    • Fund’s interpretation of June 10, 1949, 28, 119, 140 (text), 192, 205, 216, 217, 221, 227, 229, 241, 301, 302

    • Legislative history, 126, 298

    • Lists of selected decisions, 274, 276

    • Protection of Fund’s resources, 31, 282

    • Reasons for Fund’s noninterpretation, 28

    • Redundancy in interpretation, duty to avoid, 122, 215, 284, 296

    • “Substantive” law, 269

    • Text, 28, 115

    • Translation as problem, 121, 192, 200, 268, 281, 296

    Association Between Members, Effect on Decisions, 272

    Authentic Language of Treaty, 4

    Authoritative Interpretation by Fund, 5, 6, 8, 22, 28, 140, 304

    • Ambiguity of, 9

    • Amendment and, 34

    • Binding effect, 9, 205, 206, 209

    • Courts and, 9, 32

    • Discussion of possible further, 29

    • Interpretation of June 10, 1949, 28, 119, 140 (text), 192, 205, 216, 217, 221, 227, 229, 241, 301, 302

    • Parties bound, 9

    • Power confined to questions of Articles, 155

    • Reluctance of Fund to interpret, 28, 34, 271, 272

    B

    Bank Accounts

    • Clearing systems, 166, 171

    • Customer’s mandate, 168

    • Customer’s right to cash, 171

    • Duty of confidence, 176

    • Form of payment, 165, 169, 204

    • Implied terms, 168

    • Place of payment, 165, 204, 205

    • Right in personam, 165

    • Whether capital, 294

    Banks

    • Branches and headquarters, 156, 218

    • Services bound to perform or habitual only, 165

    Bank for International Settlements (BIS), 60

    Bibliography, 279

    • Bibliography on Libyan Arab Foreign Bank v. Bankers Trust Company, 173

    Brussels Convention for the

    • Unification of Certain Rules of Law Relating to Bills of Lading, August 24, 1924 (see Hague Rules)

    C

    Capital Controls, 129, 132, 152, 210, 237, 258, 284, 285, 293, 295, 299

    Capital Flight, 129

    Central Rates, 58, 66

    Certificates of Deposit, 249, 252, 254, 259, 262

    Change of Circumstances, Legal Effect of, 61, 62, 63, 64, 65, 66

    Collaboration, 120, 129, 190, 191

    Common Language and Interpretation, 268

    Compulsory Discharge of Debt in Domestic Currency, 193, 203, 211, 214

    Constitutional Law, 54, 62, 70

    Confiscation, 211, 215, 231, 254, 258, 284, 303

    Contractual and Noncontractual Remedies, 264

    Contractual Currency of Payment, 200, 201, 202, 231, 279

    Correspondent Relationship Between Banks, 165

    Cuban Insurance Cases, 211

    Current Business, 298

    D

    Diverse Judicial Interpretation, 12, 267, 280, 290

    E

    Economic Collaboration, 16, 25

    Entry Into and Performance of Contracts, Difference Between, 263

    Eurocurrency Market (see Eurodollars) Eurodollars, 161, 164, 169, 170, 174, 176, 178, 302

    European Court of Justice, 5, 36

    Exchange Control Regulations, 28

    • Burden of proving consistency with Articles, 150, 191, 269

    • Categories of regulations consistent with Articles, 152

    • Consistency with Articles, 145, 154, 217, 240, 251,257, 269, 285

    • Constitutionality, 260

    • Definition, 238

    • Discharge of foreign currency debt in domestic currency, 193, 203, 211, 214

    • Discrimination against country of forum, 217, 231

    • Domestic legality, 260, 265

    • Evasion of, 147, 239

    • Fund’s attitude to prescriptive jurisdiction, 124, 125, 265

    • Imposed by

      • Argentina, 189

      • Austria, 226, 227

      • Costa Rica, 20, 177

      • Cuba, 211

      • England, 285

      • France, 243

      • Germany, 197

      • India, 180, 198

      • Indonesia, 215, 231

      • Iran, Islamic Republic of, 143, 233

      • Israel, 236

      • Italy, 196

      • Malaysia, 219

      • Mexico, 249, 254, 261

      • Nigeria, 244

      • Pakistan, 146

      • Peru, 155, 236

      • Spain, 137, 237, 245

      • Uganda, 177

      • United States, 156

      • Viet Nam, 204

      • Zaïre, 116, 117

    • Imposed on nonmembers, 136

    • Jurisdiction to impose, 124, 146, 156, 265

    • Lex fori’s regulations, 191, 194, 292

    • Nonrestrictive regulations, 286, 303

    • Presumption of consistency with Articles, 31, 145, 153, 194, 240

    • Relevant date for Article VIII, Section 2(b), 151, 282, 295

    • Sanctions for breach, 191

    • Supervening regulations, 282, 284, 290, 295, 298, 300

    Exchange Rates, 58, 125, 135, 250, 257

    Exchange Restrictions

    • Against nonmembers, 136, 153

    • Approval of, 31, 230

    • Classification of, 240

    • Current business, 298

    • Defaults and, 32

    • Discharge of foreign judgments, 192

    • Fund’s inaction, 153

    • Governmental default, 32, 298, 302

    • “Imposed,” 289

    • “Maintained,” 289

    • Motive of promulgator, 135, 136, 284, 289, 296

    • Nonapproval by Fund, 154

    • Not enforced by promulgator, 264

    • Novation and, 30

    • Obligation to avoid, 230

    • Payments to residents, 230

    • Presumption of consistency with Articles, 31, 145, 153, 209

    • Prior and subsequent approval, 304

    • Relation between Section 2(b) and Section 4(b)(i) of Article VIII, 131, 139

    • Restricted capital accounts not available for current payments, 293

    • Security reasons, 137, 157, 178, 186 (text of Decision No. 144), 285, 293

    • Trade restrictions, 239, 284

    • Transitional arrangements, 132, 152

    Exequatur of Foreign Judgments (see Foreign Judgments) Extraterritoriality (see also

    Jurisdiction, Prescriptive), 212

    F

    Federal Communications Commission of United States, 6, 8, 9, 206

    Force Majeure, 204

    Foreign Decisions as Aid to Interpretation, 267

    Foreign Judgments, Enforcement of, 192, 194, 197, 199, 220, 222, 243

    Foreign Sovereign Immunities Act, 249, 252, 254

    Forum-Shopping, 12, 50, 74

    • Lord Denning’s defense of, 12

    • Under Warsaw Convention, 74

    “Freely Usable Currency,” 201

    Fund’s Articles of Agreement

    • Article I, 35, 124, 127, 270, 300

    • Article I(iv), 128

    • Article II, Section 1, 8

    • Article II, Section 2, 208

    • Article IV, 45

    • Article IV, Section 1, 26

    • Article IV, Section 2(b), 15, 26, 45

    • Article IV, Section 2(c), 26

    • Article IV, Section 3(a), 26

    • Article IV, Section 4, 26, 44

    • Article V, Section 7(b)(ii) (original Articles), 201

    • Article V, Section 10, 45

    • Article V, Section 11, 45

    • Article V, Section 12, 23

    • Article V, Section 12(a), 15, 23, 45

    • Article V, Section 12(d), 15

    • Article VI, Section 3, 129, 130, 132, 136, 210, 258, 263, 294

    • Article VI, Section 3(b), 210

    • Article VII, Section 3, 132, 153

    • Article VIII, 246, 285, 304

    • Article VIII, Section 1, 229, 230

    • Article VIII, Section 2, 130, 241, 304

    • Article VIII, Section 2(a), 19, 127, 132, 136, 137, 153, 193, 230, 240, 241, 258, 260, 263, 284, 285, 286, 290, 293, 304

    • Article VIII, Section 2(b), passim

    • Article VIII, Section 3, 130, 241, 257, 258, 260, 293, 304

    • Article VIII, Section 4, 130, 241

    • Article VIII, Section 4(a)(ii), 294

    • Article VIII, Section 4(b)(i), 130, 139, 294

    • Article VIII, Section 5, 38

    • Article VIII, Section 5(a), 286

    • Article VIII, Section 7, 22, 23, 24, 45, 46

    • Article IX, 208

    • Article IX, Section 10, 208

    • Article XI, Section 2, 136

    • Article XII, Section 3(b)(i), 209

    • Article XII, Section 3 (j) (original Articles), 38

    • Article XII, Section 3(j), 39, 209

    • Article XII, Section 5(c), 34

    • Article XII, Section 12(b), 16

    • Article XIV, 128, 132, 152, 153, 241, 289

    • Article XIV, Section 2, 140, 210, 263

    • Article XIV, Section 3, 153, 154

    • Article XV, Section 1, 23

    • Article XV, Section 2, 45, 48, 76, 78

    • Article XVII, Section 1, 23

    • Article XVIII (original Articles), 5, 38, 115, 206

    • Article XVIII (First Amendment), 206

    • Article XVIII, 140

    • Article XVIII, Section 1(a), 86

    • Article XIX, Section 7(a), 45

    • Article XXI, Section 2 (First Amendment), 43

    • Article XXII, 23, 25, 45, 46

    • Article XXIV, Section 1(a) (First Amendment), 86

    • Article XXVI, Section 2, 209

    • Article XXVI, Section 2(a), 154, 286

    • Article XXVIII, 34

    • Article XXIX, 5, 6, 7, 8, 9, 22, 39, 115, 141, 155, 205, 206, 207, 209, 304

    • Article XXIX(a), 205, 209

    • Article XXX, 18

    • Article XXX(d), 127, 152, 210, 298

    • Article XXX(d)(1), 298

    • Article XXX(d)(2), 30

    • Article XXX(d)(3), 30, 298

    • Article XXX(f), 201

    • Article XXXI, Section 2(a), 8, 9, 208, 229, 286, 302

    • Schedule C, 26, 44, 45

    • Schedule D, 26

    Fund’s Articles, Drafting of, 126

    G

    Gold

    • Former obligations of members, 59, 110

    • Fund’s auctions of gold, 60

    • Legal status of, 23, 26, 44, 64, 69, 90

    • Price as indicator, U.S. proposal on, 76

    Gold Units of Account, 13, 22, 25, 43

    • Australia, case law, 85

    • “Central rates” and, 53, 58, 61, 63, 66, 110

    • Date, relevant, 89, 91

    • France, case law, 46

    • Fund’s Articles and, 44

    • German legislation, 51

    • Germany, case law, 51

    • Hungarian solution, explanation by President of Supreme Court, 100

    • Hungary, case law, 98

    • Inflation and, 72, 75, 76, 96

    • Influence of U.S. Supreme Court, 57, 74, 75, 88, 106

    • International Air Transport Association (IATA) Agreement, 98

    • Italian legislation, 77, 97

    • Italy, case law, 67

    • Korea, case law, 96, 103

    • Loss of life and loss of cargo, 106

    • Market price of gold, 14, 43, 45, 47, 50, 57, 64, 65, 67, 68, 87, 89, 91, 107

    • Parliamentary statement, effect of, 94

    • Public policy, 94, 105

    • Role of Fund, 22, 25

    • SDR solution, 14, 24, 25, 49, 56, 67, 73, 75, 84, 86, 108

    • Solutions for applying, 43, 85, 91

    • Solutions related to gold, 111

    • Spain, case law, 83

    • United States, case law, 44, 57, 74, 76, 77, 85, 88, 106, 109, 111

    • View of the cases, 105

    Governmental Default, 32, 298, 302

    Group of Five, 155

    Guarantees, 222, 247

    H

    Hague Rules, 10

    Hlckenlooper Amendment, 256

    I

    Imperfect Obligations, 281

    Influences on Courts, 11

    International Indebtedness, 31, 281

    • Governmental, 32, 298, 299, 302

    International Factoring Convention 1988, 37

    International Judicial Tribunal as Interpreter, 4, 20

    International Monetary System, 26, 63

    Interpretation by Fund (see Authoritative Interpretation by Fund)

    • Committee on Interpretation, 29

    • Informal interpretation, 28

    • Replies to inquiries as interpretations, 32

    Interpretation of Articles by Courts, Principles of, 207, 270

    Interpretation of Articles by National Governmental Authorities, 47, 53

    Interpretation of Exchange Control Regulations, 213, 222, 283

    Interpretation, Principles of, 3, 180

    Iran-United States Claims Tribunal, 20, 233, 234

    J

    Judgments Convention 1988, Lugano, EEC-EFTA’s, 35

    Jurisdiction, Prescriptive, 124, 146, 156, 162, 175, 202, 221, 303

    • Fund’s practice, 154, 157, 265

    • Question for court, 155, 265

    L

    Law Governing Contract Between Bank and Customer, 163, 212

    • Change in, 164

    • Relevance of intention and motive, 165

    Locus of Bank Account, 163

    Lugano Convention 1988, 35

    M

    Misrepresentation, 262, 263

    N

    Nationalization, 211, 216, 217, 249

    • Exchange control and, 216

    Nonmembers of Fund, 136, 153, 288

    Normal Short-Term Banking Facilities, 260

    O

    Obligation not to Defeat Object of Treaty Before Entry into Force, 112

    Official Translations, 4

    P

    Par Value System, 14, 44, 59, 62, 95, 110, 126

    Payments for Current Transactions, 210, 230, 239, 260, 298

    Poincaré Franc (see Gold Units of Account) Private International Law, 124, 138, 156, 160, 162, 175, 195, 199, 212, 217, 221, 228, 231, 236, 244, 269, 280, 283, 291, 292, 298, 301, 302

    Private International Law Treaty, 124

    Public Policy, 16, 18, 27, 28, 34, 48, 94, 106, 116, 119, 140, 215, 216, 220, 224, 233, 244, 270, 283, 295, 301

    Purposes of Treaty, 3, 124, 127, 270, 280, 299

    R

    Rebus sic Stantibus, 77, 92, 93

    Rescheduling, 20, 30, 299

    • “Free rider,” 30

    Restatement of the Foreign Relations Law of the United States, American Law Institute’s, 17, 252, 257

    Restitution for Unjust Enrichment, 181, 214, 264, 284, 287, 295, 297

    Restrictions on Trade and Exchange, 239, 241

    Restrictions Contrary to International Law, 295

    Restrictions for Security Reasons (Decision No. 144), 137, 157, 186 (text)

    S

    Sanctions, 19, 226, 286, 289, 293, 301

    SDR (Special Drawing Right), 14, 23, 24, 27

    • Improvements in characteristics, 27, 109

    • Majorities to change method of valuation, 76

    • Original tie to gold, 61

    • Unit of account of Fund, 45

    • Valuation, 78

    SDR Solution, 14, 23, 24, 27, 43, 49, 56, 67, 84, 86, 108

    • Argument for, 108

    • Criticism of, 50, 73, 75, 77

    • Nonmembers of Fund and, 51

    • U.S. law, room for, 111

    Securities Law, 250, 252, 255, 261

    Setoff, 235, 236, 237, 239, 240, 242

    Smithsonian Agreement, 58

    “Substantive” Law, 269, 281, 283, 290, 301

    Supersession of Treaties, 216

    Surveillance by Fund: Basket of Gold and Other Commodities as Indicator, 75

    T

    “Taking” (see Confiscation) Transitional Arrangements, 132, 152, 154, 241, 289

    Translation (see Article VIII, Section 2(b))

    Treaty, Effect of Negotiated But Not Yet Effective, 111

    Treaty of Rome, 4

    U

    Undertakings to Obtain License, 241, 287

    Unenforceability of Exchange

    Contracts (see also ARTICLE VIII, SECTION 2(b); Authoritative Interpretation By Fund; Exchange Control Regulations; Exchange Restrictions)

    • Amendment of pleadings, 185, 251

    • American Law Institute’s Restatement, 17, 252

    • Ancillary or preliminary contracts, 290, 303

    • Article VIII, Section 2(b), text, 28, 115

    • Assets abroad, 119, 238, 245, 297

    • Autonomous and associated contracts, 149

    • Balance of payments, 124, 131, 132, 238, 246, 282, 287, 294, 295, 296, 297

    • Balance of payments accounting, 134

    • Balance of payments policies, 132

    • Capital flight, 129

    • Capital inflow, 131

    • Capital transfers, 129, 152, 237, 283, 285, 302

    • Case law:

      • Argentina, 189

      • Belgium, 115

      • England, 143, 156, 178, 182, 195, 199, 222, 224, 236, 288, 291

      • France, 203, 205

      • Germany, 235, 237, 243, 245, 247

      • Italy, 196

      • Luxembourg, 243

      • Mexico, 249, 260

      • Netherlands, 215, 225, 227, 231

      • Singapore, 219

      • United States, 198, 211, 225, 249, 251, 252, 253, 254, 255, 258, 259, 261

    • Checks and underlying contracts, 145, 149

    • Circulation of decisions proposed, 38

    • Consistency with Articles of specific regulation, 154

    • “Contracts,” 295

    • Contractual currency of payment, 200, 201, 202, 231, 279

    • Court’s duty to raise issue, 118, 120, 121, 144, 174, 190, 225

    • Currency “involved,” 17, 122, 133, 200, 201, 221, 230, 238, 246, 279, 284, 287, 288, 292, 294, 296, 297, 302

    • Discussion of possible further interpretation, 29

    • Economic interpretation, 124, 125, 246

    • Effect of translation of provision, 121, 192, 200, 268

    • Endorsement of validity, 269, 281

    • “Exchange contract,” 17, 20, 120, 144, 149, 179, 192, 199, 203, 206, 214, 215, 221, 223, 246, 251, 279, 283, 286, 291, 294, 296, 303

    • Exchange control regulations of lex fori, 191, 194

    • Exchange rates, 125, 135, 250, 257

    • Executed contracts, 131, 242, 300

    • Failure to give provision force of law, 305

    • Foreign judgments, 189, 193, 194, 197, 198, 220, 222, 243

    • Fund’s Balance of Payments Manual, 133, 134

    • Guarantees, 222, 247

    • Implications of Libyan Arab Foreign Bank v. Bankers Trust Company, 174

    • Influence of English decisions, 225

    • International indebtedness, 31

    • Jurisdiction and currency involved, 125

    • Letter of credit, 149

    • Loans as exchange contracts, 30, 192, 195, 202, 244, 281, 288, 298, 303

    • Market convertibility, 128

    • Motive, 135, 284, 285, 289, 296

    • Multilateral system, 128, 290

    • Official convertibility, 133, 139

    • Payments between residents and between nonresidents, 133, 245, 286, 287, 304

    • Possible economic rationale of provision, 125

    • Practice of Group of Five members, 155

    • Precedence over act of state defense, 264, 280

    • Precondition for suit, 242, 269, 281, 300

    • Protection of resources, 131, 214, 285, 293, 302

    • Public policy, 116, 117, 119, 120, 176, 215, 216, 217, 244, 301

    • Purposes of Fund, 124, 127, 270, 299

    • Rationale, 125

    • Replies by Fund to inquiries as interpretations, 32

    • Restrictions on nonmembers, 136, 153

    • Restrictions for security reasons, 137, 157, 178, 186, 285, 293

    • “Retroactive” exchange control regulations, 282, 284, 290, 295, 298, 300

    • Setoff, 235, 236, 237, 239, 240, 242

    • Step transactions, 154

    • Trade transactions, 127, 232, 239, 284

    • Undertakings to obtain license, 241

    • Unenforceability applies to specific performance and to claims to damages, 227

    • Unenforceability not invalidity or illegality, 119, 120, 147, 191, 239, 269, 287, 300

    • Variety of proposed interpretations of currency “involved,” 123

    • View of the cases, 267

    • Views of scholars, 21, 279

    UNIDROIT, 37

    Uniform Judicial Interpretation, 3, 30, 33, 270, 290

    • Prescribed by treaty, 35, 37

    • Uniformity and economic interpretation, 125

    United Nations Commission on International Trade Law (Uncitral), 56

    Unjust Enrichment (see Restitution for Unjust Enrichment)

    U.S. Restrictions Against Libya, 157

    Use of Fund’s Resources and Restrictions, 30

    Ut res magis valeat quam pereat, 107

    V

    Vienna Convention on the Law of Treaties, 3, 111

    W

    Warsaw Convention, 44, 46, 50, 51, 61, 66, 67, 72, 77, 83, 85, 88, 89

    • Constitutional questions, 54, 62, 65, 66, 69, 75, 107

    • Denunciation, 72, 77

    • Justification for, 105

    • Montreal Protocols, 50, 56, 62, 69, 73, 76, 84, 86, 108, 111

    World Bank (International Bank for Reconstruction and Development), 5

    The Author

    Sir Joseph Gold is a graduate of the Law Schools of the Universities of London and Harvard. He was a member of the staff of the Legal Department of the International Monetary Fund from October 1946 to July 1979 and was the General Counsel of the Fund and Director of its Legal Department from 1960 to 1979. He is now Senior Consultant of the Fund. He is the author of the following books published by the Fund: The Fund Agreement in the Courts, Volumes I (1962), II (1982), and III (1986), The stand-by Arrangements of the International Monetary Fund(1970), Voting and Decisions in the International Monetary Fund (1972), Membership and Nonmembership in the International Monetary Fund (1974), and Legal and Institutional Aspects of the International Monetary System: Selected Essays, Volumes I (1979) and II (1984). He has contributed numerous pamphlets to the Fund’s Pamphlet Series, including a series of seven devoted to legal developments involving SDRs, currencies, and gold since the Second Amendment of the Fund’s Articles, and has contributed a study of the Fund’s constitutional development to The International Monetary Fund, 1945-1965, published by the Fund in 1969. He has contributed numerous articles to the Fund’s periodicals Staff Papers and Finance & Development. His publications outside the Fund include Exchange Rates in International Law and Organization (American Bar Association, 1988) and Aspectos legales de la reforma monetaria internacional (Mexico, 1979) and numerous articles in law journals and other publications in many countries. He is an advisor on the boards of a number of law journals, has been a lecturer at the Hague Academy of International Law, and has received an honorary LL.D. from Southern Methodist University as well as many other honors for his work.

    Ross Cranston, “Remedies in International Finance: Why so Few Formal Legal Proceedings?” Journal of International Banking Law (Oxford), Vol. 4, No. 2 (1989), pp. 65–69:

    “An examination of the role of law in international finance quickly uncovers this paradox: although the stakes are high, with many billions of dollars, yen, pounds and so on being involved; although many transactions are consummated every day; and although a not insignificant number of parties fail to meet their legal obligations, very rarely is there a resort to formal legal proceedings.” (P. 65.)

    [1980] 2 All E.R. 696.

    Ibid., p. 706.

    Gold, Volume III, pp. 268–70, 623–32.

    Article 164.

    Article 177. The provisions of the Treaty of Rome relating to the court, including its full jurisdiction, are contained in Articles 164–88.

    Tim Dickson, “Law Lord of Luxembourg,” Financial Times (London), October 3, 1988, p. 44.

    International Bank for Reconstruction and Development and International Monetary Fund v. All America Cables and Radio, Inc., et al., FCC Docket No. 9362; Gold, Volume I, pp. 20–26, 55–59.

    A joint committee of the Boards of Governors of the Fund and the World Bank was established to consider certain matters that arose as the result of the application of the Palestine Liberation Organization to attend as an observer at meetings of the Boards of Governors of the two organizations. The problems that arose related only to interpretation and possible amendment of the By-laws of the Fund and the Bank and not to interpretation of their Articles. (International Monetary Fund, Summary Proceedings of the Thirty-First Annual Meeting of the Board of Governors, September 29-October 2, 1981 (Washington, 1981), pp. 298–384.)

    Gold, Pamphlet No. 11. See also Joseph Gold, “Public International Law in the International Monetary System,” Southwestern Law Journal (Dallas), Vol. 38 (September 1984), pp. 799–852, particularly at pp. 826–28, reproduced in Public International Law and the Future World Order: Liber Amicorum in Honor of A. J. Thomas, Jr., ed. by Joseph Jude Norton (Littleton, Colorado: Fred B. Rothman & Co., 1987), Chap. 15, pp. 1–82.

    FCC Decision, para. 3 of Conclusions, 8 RR 927, at 944.

    Article II, Section 1.

    Gold, Pamphlet No. 11, pp. 36–37.

    Michael F. Sturley, “International Uniform Laws in National Courts: The Influence of Domestic Law in Conflicts of Interpretation,” Virginia Journal of International Law (Charlottesville), Vol. 27, No. 3(1987), pp. 729–802. (Hereinafter referred to as Sturley.)

    120 L.N.T.S. 157.

    Sturley, p. 734.

    Sturley, pp. 742–43, 766–67. It is possible, however, that a court, in deciding that a particular interpretation is or is not consistent with a doctrine of domestic law considered relevant, may be influenced by the court’s views on national policy in relation to the subject matter of the suit. This may be the explanation of the “strain” mentioned by the author as a characteristic of some interpretations (Sturley, p. 745).

    Sturley, p. 801.

    The Atlantic Star [1973] 1 Q.B. 364, 382.

    See Andrew Vollmer and Scott Hoing, “Local laws ruling by [U.S.] Supreme Court,” Financial Times (London), June 23, 1988, p. 5, commenting on Volkswagenwerk AG v. Schlunk, No. 86–1052 (June 15, 1988):

    “The implications for the international judicial system arise because the Court’s decision allows resurrection of methods of international service that were the very reasons for drafting and signing the [Hague Service] Convention. Other signatories will certainly take issue with this outcome. The record in the Schlunk case contained diplomatic protests about the results reached by the Illinois courts from four of the major trading partners of the United States. Moreover, as the Court was aware, retransmission of judicial documents abroad after service on an involuntary agent offends the sovereignty of many civil law countries. The Court’s decision therefore invites retaliation and encourages other countries to construe the Convention in a similar way, perhaps leading to a revival of the hotch-potch of inconsistent and potentially unfair service practices that prevailed before the Convention.”

    Gold, Pamphlet No. 6.

    Article IV, Section 2(b):

    “Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member, or (ii) cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or (iii) other exchange arrangements of a member’s choice.”

    International Monetary Fund, Proposed Second Amendment to the Articles of Agreement of the International Monetary Fund: A Report by the Executive Directors to the Board of Governors (Washington, 1976), pp. 3–4, 43–52.

    Article V, Section 12(a):

    “The Fund shall be guided in all its policies and decisions under this Section by the objectives set forth in Article VIII, Section 7 and by the objective of avoiding the management of the price, or the establishment of a fixed price, in the gold market.”

    Article V, Section 12(d):

    “The Fund may accept payments from a member in gold instead of special drawing rights or currency in any operations or transactions under this Agreement. Payments to the Fund under this provision shall be at a price agreed for each operation or transaction on the basis of prices in the market.”

    The acceptability of gold was controversial during the negotiation of the Second Amendment. This vestige of a former function of gold in the Fund was retained on the insistence of France, which wished to recognize a modest status for gold in view of official and private gold holdings in France. The Fund has not accepted gold since the Second Amendment became effective.

    Article XII, Section 12(b).

    P. 142.

    P. 143. They were said to be not limited to agreements to exchange one currency for another, but may also include contracts for international sale of goods, charter of ships, deposit of funds, and similar transactions that have an effect on the balance of payments of the countries involved. The treatment of Article VIII, Section 2(b) in the Fifth Tentative Draft is discussed in Gold, Volume III, pp. 698–707.

    A flaw in the definition of “exchange contracts” is that it does not give independent meaning to the currency “involved.” It is necessary to recognize that there are two concepts and that separate meaning must be given to them, in default of which either “exchange” or “currency” can be considered otiose.

    Tentative Draft No. 6—Volume 1, p. 605. The treatment of Article VIII, Section 2(b) in this draft is discussed in Gold, Volume III, pp. 707–13.

    Tentative Draft No. 6—Volume 1, pp. 608–609. The Tentative Final Draft, dated July 15, 1985, followed Tentative Draft No. 6. For a discussion, see Joseph Gold, “The Restatement of the Foreign Relations Law of the United States (Revised) and International Monetary Law,” The International Lawyer (Chicago), Vol. 22 (1988), pp. 3–30, at pp. 15–24.

    Comment (b) to §822 reads as follows:

    Meaning ofexchange contracts.’ Neither Article VIII(2)(b) nor the definitions article (Article XXX) of the IMF Articles of Agreement contains a definition of the term ‘exchange contract.’ At least two distinct interpretations of the term have emerged in judicial decisions and scholarly writings. At a minimum, this section applies to transactions that have as their immediate object the exchange of one currency for another, such as the conversion of marks into yen or the purchase of sterling futures with dollars. Under a more expansive interpretation of the term ‘exchange contract,’ this section might apply also to other contracts, including contracts for international sale of goods, charter of ships, deposit of funds, and similar transactions that have an effect on the member state’s balance of payments or exchange resources. United States courts that have addressed the question have favored the narrow interpretation; British courts have also generally favored the narrow interpretation, but they have applied Article VIII(2)(b) to sales contracts found to be monetary transactions in disguise. Some courts of other states have favored or expressly adopted the wider interpretation. See Reporters’ Note 2.”

    Decision No. 144–(52/51), August 14, 1952 (Selected Decisions, Thirteenth Issue, pp. 292–93).

    Some commentators challenge the view that the regulations referred to are exchange control regulations within the meaning of Article VIII, Section 2(b), because the motive for the measure is not protection of the balance of payments or exchange resources of the United States. The Fund, however, has decided that “Art. VIII, Sec. 2(a), in conformity with its language, applies to all restrictions on current payments and transfers, irrespective of their motivation and the circumstances in which they are imposed.” (Selected Decisions, Thirteenth Issue, p 292.) The inference is inescapable that the regulations imposing restrictions are exchange control regulations, whatever the motive for the restrictions may be, including the motive of preserving national or international security.

    For discussion of an English case (Libyan Arab Foreign Bank v. Bankers Trust Company) in which exchange control regulations imposed by the United States against Libya were involved but in which Article VIII, Section 2(b) was not cited, see Chapter 5 of this volume.

    See, for example, the briefs in Allied Bank International et al. v. Banco Credito Agricola de Cartago et al., 757 F.2d 516 (1985). Aspects of these briefs are discussed in Gold, Volume III, pp. 605–12.

    757 F.2d 516 (1985).

    Gold, Volume III, pp. 591–622.

    P. 33 of the Reply in Grune and Stratton v. The Islamic Republic of Iran (Claim No. 10059, Chamber One, Iran-United States Claims Tribunal, The Hague). See also p. 20.

    In its Award No. 359-10059-1, the Tribunal concluded that the claimant failed because it had not discharged the burden of proof necessary to sustain the claim. The issue of the effect of the exchange control regulations of the Islamic Republic of Iran was not reached.

    Marthe Simon-Depitre, “Société Egyptair v. Chamie,” Revue critique de droit international privé (Paris), Vol. 73 (1984), pp. 314–15.

    Note also that Article V, Section 12(a) directs that the Fund shall be guided in all its policies and decisions by the objectives set forth in Article VIII, Section 7 and by the objective of avoiding a fixed price for gold. Article V, Section 12 deals with the gold transactions of the Fund and related matters.

    Under Article XXII the obligation is to collaborate with the Fund and other participants in the Special Drawing Rights Department because participation in the SDR system is optional on the part of members (Article XV, Section 1 and Article XVII, Section 1). All members of the Fund have decided to become participants.

    The expression “principal reserve asset in the international monetary system” has been relied on to improve the characteristics and uses of the SDR and to justify allocations of SDRs in the four years 1978–81. The expression was relied on also in the unsuccessful effort to create a Substitution Account. See Gold, Essays, Vol. II, pp. 287–88, 351, 366, 667.

    Ibid., pp. 197–99, 445, 707–709.

    The expression occurs in Article IV, Sections 1 and 2(b), (c); Article IV, Section 3(a); Article IV, Section 4; Schedule D, paragraph 2(a); as well as in the two provisions discussed in the text.

    See Gold, Essays, Vol. II, pp. 26–28, 39–74, 238–40.

    Article IV, Section 2(b).

    Schedule C, paragraph 1.

    The rest of the provision reads: “In addition, members may, by mutual accord, cooperate in measures for the purpose of making the exchange control regulations of either member more effective, provided that such measures and regulations are consistent with this Agreement.”

    Pp. 7–8.

    Gold, Volume II, p. 8

    On the consequences of unapproved multiple currency practices, which constitute one class of restrictions, see Gold, Pamphlet No. 40, pp. 30–35.

    See “Don’t forgive the debtors,” The Economist (London), May 14–20, 1988, p. 13. See also Michel Camdessus, Managing Director of the Fund (IMF Survey (Washington), Vol. 17, No. 11 (May 30, 1988), p. 175):

    “It is crucial, simply stated, that banks participate more actively in our current efforts. More active participation—let me be quite clear—is warranted not simply from the standpoint of co-responsibility, nor simply because banks are much better placed now than they were a few years ago to extend more support. It is also warranted, fundamentally, because stronger support for strengthened adjustment efforts is in the self-interest of the international banking community. It is surely by supporting soundly based growth in the indebted countries that banks can best strengthen the value of existing loan claims, help pave the way for a resumption of normal creditor-debtor relations, and thereby serve the interests of their shareholders and of the world financial community at large.”

    Article XXX(d)(3).

    Article XXX(d)(2). The rescheduling of debt would not be a restriction because of novation: the former obligations would be replaced by revised obligations. The former obligations would disappear, so that it could not be said that the discharge of them was being restricted.

    See the editorial entitled “VIII, 2(b) or Not 2(b)” in the Wall Street Journal (New York), May 11, 1989, p. A14.

    See Gold, Volume III, pp. 543–53.

    Gold, Volume III, pp. 497–519.

    Article XII, Section 5(c).

    Article XXVIII.

    Article I, last sentence.

    European Law Center, Commercial Laws of Europe (London), Vol. 12, Part 131 (February 1989), pp. 19–57.

    Ibid., pp. 58–66.

      Other Resources Citing This Publication