Resolution No. 23-1 Membership for Lesotho

On April 24, 1967, the Government of Lesotho applied for membership in the Fund. The Executive Board resolved on December 4, 1967 that action on the application should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on December 29, 1967 for a vote without meeting:

Whereas, the Government of Lesotho on April 24, 1967, applied for admission to membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Directors have consulted with the representatives of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting Lesotho to membership in the Fund;

Now, therefore, the Board of Governors, having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which Lesotho shall be admitted to membership in the Fund shall be as follows:

1. Definitions: As used in this Resolution:

   • (a) The term “Fund” means the International Monetary Fund.

   • (b) The term “Articles” means the Articles of Agreement of the International Monetary Fund.

   • (c) The term “dollars” or “$” means United States dollars of the weight and fineness in effect on July 1, 1944.

2. Quota: The quota of Lesotho shall be $3 million.

3. Subscription: The subscription of Lesotho shall be equal to its quota. Lesotho shall pay in gold not less than 3 per cent of its subscription and the balance of the subscription shall be paid in the currency of Lesotho.

4. Payment of Subscription: The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of Lesotho. In case Lesotho does not acquire membership in the Fund the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the thirtieth day after the initial par value of the currency of Lesotho has been agreed in accordance with paragraph 5 below.

5. Determination of Par Value: Within 30 days after the Fund so requests, Lesotho shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, Lesotho and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of 60 days and that Lesotho shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, Lesotho shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

6. Exchange Transactions with the Fund: Lesotho may not engage in exchange transactions with the Fund until both (a) the par value of its currency has been agreed in accordance with paragraph 5 above and put into operation and (b) its subscription has been paid in full; provided, however, that at any time before the requirements under (a) and (b) have been met, the Executive Directors are authorized to permit exchange transactions with Lesotho under such conditions and in such amounts as may be prescribed by the Executive Directors.

7. Representation and Information: Before accepting membership in the Fund, Lesotho shall represent to the Fund that Lesotho has taken all action necessary to sign and deposit the Instrument of Acceptance and sign the Articles, as contemplated by paragraph 8(a) and (b) of this Resolution, and Lesotho shall furnish to the Fund such information in respect of such action as the Fund may request.

8. Acceptance of Membership: After the Fund shall have informed the Government of the United States of America that Lesotho has complied with the conditions set forth in paragraph 7 of this Resolution, Lesotho shall become a member of the Fund as of the date when Lesotho shall have complied with the following requirements:

   • (a) Lesotho shall deposit with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and

   • (b) Lesotho shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

9. Period for Acceptance of Membership: Lesotho may accept membership in the Fund pursuant to this Resolution within six months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine.

The Board of Governors adopted the foregoing Resolution, effective January 29, 1968. The Articles of Agreement were signed by His Excellency Albert S. Mohale, Ambassador of the Kingdom of Lesotho to the United States of America, on behalf of the Government of Lesotho, on July 25, 1968.

Resolution No. 23-2 Increase in the Quota of Nigeria

Under date of December 12, 1967, the Government of Nigeria requested that its quota be increased from $63 million to $100 million. The Executive Board resolved on January 19, 1968 that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on January 23, 1968 for a vote without meeting:

Resolved:

That the quota of Nigeria shall be changed to $100 million, provided that Nigeria consents to the change on or before August 20, 1968 and provided further that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period in which consent is required pursuant to this Resolution, the Executive Directors may extend such period until such later date or dates as they may determine. Not less than 25 per cent of the increase shall be paid in gold and the balance in the currency of Nigeria. The change shall become effective on the date the Fund receives notice in writing that Nigeria consents to the change but not sooner than the date of this Resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

The Board of Governors adopted the foregoing Resolution, effective February 21, 1968. The written notice that Nigeria consented to the increase was received by the Fund on March 19, 1968, on which date the new quota became effective.

Resolution No. 23-3 Increase in the Quota of Uruguay

Under date of December 27, 1967, the Government of Uruguay requested that its quota be increased from $38 million to $55 million. The Executive Board resolved on January 19, 1968 that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on January 23, 1968 for a vote without meeting:

Resolved:

That the quota of Uruguay shall be changed to $55 million, provided that Uruguay consents to the change on or before August 20, 1968, and provided further that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period in which consent is required pursuant to this Resolution, the Executive Directors may extend such period until such later date or dates as they may determine. Not less than 25 per cent of the increase shall be paid in gold and the balance in the currency of Uruguay. The change shall become effective on the date the Fund receives notice in writing that Uruguay consents to the change but not sooner that the date of this Resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

The Board of Governors adopted the foregoing Resolution, effective February 21, 1968. The written notice that Uruguay consented to the increase was received by the Fund on February 23, 1968, on which date the new quota became effective.

Resolution No. 23-4 Increase in the Quota of Trinidad and Tobago

Under date of December 2, 1967, the Government of Trinidad and Tobago requested that its quota be increased from $25 million to $44 million. The Executive Board resolved on February 14, 1968 that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on February 19, 1968 for a vote without meeting:

Resolved:

That the quota of Trinidad and Tobago shall be changed to $44 million, provided that Trinidad and Tobago consents to the change on or before September 18, 1968, and provided further that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period in which consent is required pursuant to this Resolution, the Executive Directors may extend such period until such later date or dates as they may determine. Not less than 25 per cent of the increase shall be paid in gold and the balance in the currency of Trinidad and Tobago. The change shall become effective on the date the Fund receives notice in writing that Trinidad and Tobago consents to the change but not sooner than the date of this Resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

The Board of Governors adopted the foregoing Resolution, effective March 20, 1968. The written notice that Trinidad and Tobago consented to the increase was received by the Fund on May 17, 1968, on which date the new quota became effective.

Resolution No. 23-5 Proposed Amendment of Articles of Agreement: New Facility Based on Special Drawing Rights; Changes in Fund Rules and Practices

Whereas the Executive Directors have completed their work relating to the establishment in the International Monetary Fund of a new facility based on special drawing rights in order to meet the need, as and when it arises, for a supplement to existing reserve assets, and on improvements in the present rules and practices of the Fund, pursuant to Resolution No. 22-8 ¹ of the Board of Governors of the International Monetary Fund at its Twenty-Second Annual Meeting in Rio de Janeiro; and

Whereas the Executive Directors have prepared a Report setting forth proposals for modifications in the Articles of Agreement of the International Monetary Fund for the purpose of establishing the new facility and giving effect to certain modifications in the present rules and practices of the Fund; and

Whereas the Chairman of the Board of Governors has requested the Secretary of the Fund to bring the proposals of the Executive Directors before the Board of Governors; and

Whereas the Report of the Executive Directors setting forth their proposals has been submitted to the Board of Governors by the Secretary of the Fund; and

Whereas the Executive Directors have requested the Board of Governors to vote on the following Resolution without meeting, pursuant to Section 13 of the By-Laws of the Fund;

Now, therefore, the Board of Governors, noting the said Report of the Executive Directors, hereby resolves that:

1. The Proposed Amendment to the Articles of Agreement of the International Monetary Fund set forth in the attachment to this Resolution ² is approved.

2. The Secretary of the Fund is directed to ask, by letter or telegram, all members of the Fund whether they accept, in accordance with the provisions of Article XVII, the Proposed Amendment to the Articles of Agreement as set forth in the attachment to this Resolution.

3. The circular letter or telegram to be sent to all members in accordance with 2 above shall specify that the Proposed Amendment to the Articles of Agreement set forth in the attachment to this Resolution shall enter into force for all members as of the date on which the Fund certifies, by formal communication addressed to all members, that three-fifths of the members, having four-fifths of the total voting power, have accepted the modifications.

The Board of Governors adopted the foregoing Resolution, effective May 31, 1968.

Resolution No. 23-6 Increase in the Quota of Cyprus

Under date of February 22, 1968, the Government of Cyprus requested that its quota be increased from $15 million to $20 million. The Executive Board resolved on May 1, 1968 that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on May 7, 1968 for a vote without meeting:

Resolved:

That the quota of Cyprus shall be changed to $20 million, provided that Cyprus consents to the change on or before December 4, 1968, and provided further that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period in which consent is required pursuant to this Resolution, the Executive Directors may extend such period until such later date or dates as they may determine. Not less than 25 per cent of the increase shall be paid in gold and the balance in the currency of Cyprus. The change shall become effective on the date the Fund receives notice in writing that Cyprus consents to the change but not sooner than the date of this Resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

The Board of Governors adopted the foregoing Resolution, effective June 4, 1968. The written notice that Cyprus consented to the increase was received by the Fund on June 19, 1968, on which date the new quota became effective.

Resolution No. 23-7 Increase in the Quota of Burma

Under date of April 27, 1968, the Government of Burma requested that its quota be increased from $38 million to $48 million. The Executive Board resolved on June 14, 1968 that action on the request should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on June 18, 1968 for a vote without meeting:

Resolved:

That the quota of Burma shall be changed to $48 million, provided that Burma consents to the change on or before January 16, 1969, and provided further that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period in which consent is required pursuant to this Resolution, the Executive Directors may extend such period until such later date or dates as they may determine. Not less than 25 per cent of the increase shall be paid in gold and the balance in the currency of Burma. The change shall become effective on the date the Fund receives notice in writing that Burma consents to the change but not sooner than the date of this Resolution. Such written consent shall be signed by a competent official whose authority and signature are duly authenticated.

The Board of Governors adopted the foregoing Resolution, effective July 16, 1968. The written notice that Burma consented to the increase was received by the Fund on August 19, 1968, on which date the new quota became effective.

Resolution No. 23-8 Membership for Malta

On December 27, 1965, the Government of Malta applied for membership in the Fund. The Executive Board resolved on July 8, 1966 that action on the application should not be postponed until the next regular meeting of the Board of Governors, but the Resolution was not mailed to the Governors pending a decision by Malta on whether it wished to proceed with its application. On July 9, 1968 Malta informed the Fund that it wished to do so, and the Executive Directors resolved on July 17, 1968 that action on the application should no longer be delayed.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 17, 1968 for a vote without meeting:

Whereas, the Government of Malta, on December 27, 1965 applied for membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Directors have consulted with the representative of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting Malta to membership in the Fund;

Now, therefore, the Board of Governors, having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which Malta shall be admitted to membership in the Fund shall be as follows:

1. Definitions: As used in this Resolution:

   • (a) The term “Fund” means the International Monetary Fund.

   • (b) The term “Articles” means the Articles of Agreement of the International Monetary Fund.

   • (c) The term “dollars” or “$” means United States dollars of the weight and fineness in effect on July 1, 1944.

2. Quota: The quota of Malta shall be $10 million.

3. Subscription: The subscription of Malta shall be equal to its quota. Malta shall pay in gold, as a minimum, the lesser of (1) 25 per cent of its quota, or (2) 10 per cent of its net official holdings of gold and convertible currencies as of the date that Malta makes the representation to the Fund that it has taken all action necessary to adhere to the Articles of Agreement. The balance of the subscription shall be paid in the currency of Malta.

4. Payment of Subscription: The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of Malta. In case Malta does not acquire membership in the Fund the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the thirtieth day after the initial par value of the currency of Malta has been agreed in accordance with paragraph 5 below.

5. Determination of Par Value: Within 30 days after the Fund so requests, Malta shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, Malta and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of 60 days and that Malta shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, Malta shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

6. Exchange Transactions with the Fund: Malta may not engage in exchange transactions with the Fund until both (a) the par value of its currency has been agreed in accordance with paragraph 5 above and put into operation and (b) its subscription has been paid in full; provided, however, that at any time before the requirements under (a) and (b) have been met, the Executive Directors are authorized to permit exchange transactions with Malta under such conditions and in such amounts as may be prescribed by the Executive Directors.

7. Representation and Information: Before accepting membership in the Fund, Malta shall represent to the Fund that it has taken all action necessary to sign and deposit the Instrument of Acceptance and sign the Articles, as contemplated by paragraph 8(a) and (b) of this Resolution, and Malta shall furnish to the Fund such information in respect of such action as the Fund may request.

8. Acceptance of Membership: After the Fund shall have informed the Government of the United States of America that Malta has complied with the conditions set forth in paragraph 7 of this Resolution, Malta shall become a member of the Fund as of the date when Malta shall have complied with the following requirements:

   • (a) Malta shall deposit with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and

   • (b) Malta shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

9. Limitation on Period of Acceptance of Membership: Malta may accept membership in the Fund pursuant to this Resolution within six months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine.

The Board of Governors adopted the foregoing Resolution, effective August 13, 1968. The Articles of Agreement were signed by His Excellency Dr. Arvid Pardo, Ambassador of Malta to the United States of America, on behalf of the Government of Malta, on September 11, 1968.

Resolution No. 23-9 Membership for Mauritius

On January 5, 1968, the Government of Mauritius applied for membership in the Fund. The Executive Board resolved on July 12, 1968 that action on the application should not be postponed until the next regular meeting of the Board of Governors.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 18, 1968 for a vote without meeting:

Whereas, the Government of Mauritius on January 5, 1968, applied for membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Directors have consulted with the representatives of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting Mauritius to membership in the Fund;

Now, therefore, the Board of Governors, having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which Mauritius shall be admitted to membership in the Fund shall be as follows:

1. Definitions: As used in this Resolution:

   • (a) The term “Fund” means the International Monetary Fund.

   • (b) The term “Articles” means the Articles of Agreement of the International Monetary Fund.

   • (c) The term “dollars” or “$” means United States dollars of the weight and fineness in effect on July 1, 1944.

2. Quota: The quota of Mauritius shall be $16 million.

3. Subscription: The subscription of Mauritius shall be equal to its quota. Mauritius shall pay in gold, as a minimum, the lesser of (1) 25 per cent of its quota, or (2) 10 per cent of its net official holdings of gold and convertible currencies as of the date that Mauritius makes the representation to the Fund that it has taken all action necessary to adhere to the Articles of Agreement. The balance of the subscription shall be paid in the currency of Mauritius.

4. Payment of Subscription: The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of Mauritius. In case Mauritius does not acquire membership in the Fund the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the thirtieth day after the initial par value of the currency of Mauritius has been agreed in accordance with paragraph 5 below.

5. Determination of Par Value: Within 30 days after the Fund so requests, Mauritius shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, Mauritius and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of 60 days and that Mauritius shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, Mauritius shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

6. Exchange Transactions with the Fund: Mauritius may not engage in exchange transactions with the Fund until both (a) the par value of its currency has been agreed in accordance with paragraph 5 above and put into operation and (b) its subscription has been paid in full; provided, however, that at any time before the requirements under (a) and (b) have been met, the Executive Directors are authorized to permit exchange transactions with Mauritius under such conditions and in such amounts as may be prescribed by the Executive Directors.

7. Representation and Information: Before accepting membership in the Fund, Mauritius shall represent to the Fund that it has taken all action necessary to sign and deposit the Instrument of Acceptance and sign the Articles, as contemplated by paragraph 8(a) and (b) of this Resolution, and Mauritius shall furnish to the Fund such information in respect of such action as the Fund may request.

8. Acceptance of Membership: After the Fund shall have informed the Government of the United States of America that Mauritius has complied with the conditions set forth in paragraph 7 of this Resolution, Mauritius shall become a member of the Fund as of the date when Mauritius shall have complied with the following requirements:

   • (a) Mauritius shall deposit with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and

   • (b) Mauritius shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

9. Period for Acceptance of Membership: Mauritius may accept membership in the Fund pursuant to this Resolution within six months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine.

The Board of Governors adopted the foregoing Resolution, effective August 14, 1968. The Articles of Agreement were signed by His Excellency Pierre Guy Girald Balancy, Ambassador of Mauritius to the United States of America, on behalf of the Government of Mauritius, on September 23, 1968.

Resolution No. 23-10 1968 Regular Election of Executive Directors

The Executive Board resolved on August 9, 1968 that action in connection with the rules for conduct of the 1968 regular election of Executive Directors should not be postponed until the time of the next regular meeting of the Board of Governors, at which the election will take place.

In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on August 14, 1968 for a vote without meeting:

Resolved:

• (a) That the proposed Rules for the Conduct of the 1968 Regular Election of Executive Directors are hereby adopted;¹ and

• (b) That a Regular Election of Executive Directors shall take place at the Annual Meeting of the Board of Governors in 1970.

The Board of Governors adopted the foregoing Resolution, effective September 9, 1968.

Resolution No. 23-11 ² Financial Statements, Report on Audit, and Administrative Budget

Resolved:

That the Board of Governors of the Fund considers the Report on Audit for the Fiscal Year ended April 30, 1968, the Financial Statements contained therein, and the Administrative Budget for the Fiscal Year ending April 30, 1969 as fulfilling the requirements of Article XII, Section 7 of the Articles of Agreement and Section 20 of the By-Laws.

Resolution No. 23-12 ² General Reserve and Distribution of Net Income

Resolved:

The Board of Governors, having noted the recommendation of the Executive Directors and the considerations relating thereto set forth in the letter of transmittal of August 12, 1968 from the Managing Director and Chairman of the Executive Board to the Chairman of the Board of Governors, determines that of the net income of $55,743,725.12 for the fiscal year ended April 30, 1968:

1. an amount equal to $18,285,243.52 shall be allocated to the General Reserve, and

2. an amount equal to $37,458,481.60 shall be distributed to members in accordance with the provisions of Article XII, Section 6(b) at a rate of one and one-half per cent on the amount by which 75 per cent of each member’s quota exceeded the average of the Fund’s holdings of the member’s currency during the fiscal year ended April 30, 1968.

Resolution No. 23-13 ¹ Stabilization of Prices of Primary Products

Resolved:

That the Board of Governors

• (a) Note the section of the study already prepared on the problem of the stabilization of prices of primary products;

• (b) Invite the Managing Director to have the staff complete as soon as possible the work already initiated, particularly by completing a section which considers specific financial measures and other ways in which the Fund might assist in finding feasible solutions to the problem; and

• (c) Request the Executive Directors to transmit to the Board of Governors the section of the study referred to in (b) above not later than June 30, 1969, together with such comments or recommendations as they may have on the entire study and a report on any actions regarding it which they may have taken.