Abstract

1. In the course of the annual meeting of the International Monetary Fund, the Ministers and Central Bank Governors of the 10 countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States) participating in the agreement of December 1961 to supplement the resources of the International Monetary Fund met in Washington, together with Mr. Pierre-Paul Schweitzer, Managing Director of the Fund. In this meeting, they discussed the international payments situation and reviewed the functioning of the international monetary system now and in the future in the light of their common aims as reflected in the Fund’s Charter.

Appendices

Statement Issued on October 2, 1963 by the Secretary of the Treasury of the United States on Behalf of the “Group of 10” Members of the Fund

1. In the course of the annual meeting of the International Monetary Fund, the Ministers and Central Bank Governors of the 10 countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States) participating in the agreement of December 1961 to supplement the resources of the International Monetary Fund met in Washington, together with Mr. Pierre-Paul Schweitzer, Managing Director of the Fund. In this meeting, they discussed the international payments situation and reviewed the functioning of the international monetary system now and in the future in the light of their common aims as reflected in the Fund’s Charter.

2. They agreed that the removal of the imbalances still existing in the external accounts of some major countries was the most important objective to be pursued over the near future. For this reason they welcomed the recent efforts of certain deficit countries to improve their balances of payments, as well as actions by a number of countries designed to reduce or remove surpluses, as evidence of progress toward a better basic international equilibrium. The Ministers and Governors reaffirmed the objective of reaching such balance at high levels of economic activity with a sustainable rate of economic growth and in a climate of price stability.

3. In examining the functioning of the international monetary system, the Ministers and Governors noted that the present national reserves of member countries, supplemented as they are by the resources of the IMF, as well as by a network of bilateral facilities, seemed fully adequate in present circumstances to cope with possible threats to the stability of the international payments system. In this connection, the Ministers reviewed the “General Arrangements to Borrow” in the International Monetary Fund and reiterated their determination that these resources would be available for decisive and prompt action.

4. In reviewing the longer-run prospects, the Ministers and Governors agreed that the underlying structure of the present monetary system—based on fixed exchange rates and the established price of gold—has proven its value as the foundation for present and future arrangements. It appeared to them, however, to be useful to undertake a thorough examination of the outlook for the functioning of the international monetary system and of its probable future needs for liquidity. This examination should be made with particular emphasis on the possible magnitude and nature of the future needs for reserves and for supplementary credit facilities which may arise within the framework of national economic policies effectively aiming at the objectives mentioned in paragraph 2. The studies should also appraise and evaluate various possibilities for covering such needs.

5. The Ministers and Governors have noted with approval the statement by the Managing Director that the International Monetary Fund will develop and intensify its studies of these long-run questions. They, for their part, have now instructed their Deputies to examine these questions, and to report to them on the progress of their studies and discussions over the course of the coming year. They requested the Deputies in carrying out these studies to maintain close working relations with the International Monetary Fund and with other international bodies concerned with monetary matters. Any specific suggestions resulting from the studies by the Deputies will be submitted to the Ministers and Governors for consideration.

6. The Ministers and Governors believe that such an examination of the international monetary system will further strengthen international financial cooperation, which is the essential basis for the continued successful functioning of the system.

Reference List of Principal Topics Discussed 1

  • Capital markets 50-51, 69, 73, 85-86, 93, 110, 184

  • Developing countries and primary products

    • Characteristics of developing countries 159, 171-72

    • Exports and markets for exports 24-25, 34, 66, 71, 111, 117-18, 122, 124, 135, 138, 147, 174, 178, 182, 187-88, 190, 198-99, 203

    • Prices and terms of trade 24, 34, 39, 79, 105-108, 122, 129, 132, 138, 144, 147, 151, 155, 159, 172, 179, 182, 184, 188, 194, 197, 201, 205

  • Fund

    • Annual Report 37, 38, 41, 43, 55, 83, 92, 95, 100, 111, 114-15, 116, 121, 123, 128, 133, 135, 137-38, 141, 144, 156, 158, 177, 191, 201

    • Calculation of reserves and repurchase obligations 114

    • Compensatory financing of export fluctuations, and increase in quotas 17-19, 34-35, 66, 92, 107, 111, 114, 124, 130, 132, 139, 144, 151, 153, 159, 166-68, 171, 178, 181, 187, 191, 196, 200-01, 205

    • General arrangements to borrow 37, 94, 98, 138, 152, 158, 196

    • New functions or procedures 36, 75, 97-99, 135, 181, 193

    • Relations with members 164-68, 193

    • Technical assistance 20, 75, 115, 121, 153, 159, 161, 181, 196

    • Training programs 116, 181

    • Use of French language 150, 181, 195, 206

  • Gold

    • Guarantee of currencies, proposals for 42, 96

    • In monetary reserves 42, 61, 95, 102, 127-28, 142

  • Inflation, effects of 12-13, 26, 129, 191-92

  • International capital

    • Needs for 35, 72-73, 81, 85, 87, 93, 106, 113, 119, 139-40, 174, 176, 184, 190, 192, 198

    • Recent movements 51, 88-89, 93, 118

  • International cooperation

    • Between central banks 28, 37, 52, 60-61, 75, 94, 126-27, 133, 155, 158, 196

    • In Africa 81, 147, 149-50, 184, 199

    • In Latin America 35, 184

  • International liquidity

    • Adequacy of, discussed, and proposed inquiries 13, 26-30, 32, 37, 41-42, 44-45, 59-63, 64-68, 71, 76, 83, 90, 95-96, 100-103, 111-12, 124, 125-26, 131, 133-34, 138, 141, 155, 168-69, 179, 182-84, 187, 195, 196, 204

    • Proposals to improve 69, 96-99, 111, 142, 199

    • Recent strengthening of 28, 60, 94, 133, 158

  • International payments situation 21-22, 76, 79, 89-90, 92-93

1

This list relates only to the Addresses and Statements. It excludes discussions of individual countries, and also personal tributes.