Chapter

Reports of the Joint Procedures Committee 1

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1959
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ChairmanPeru
Vice-ChairmanSweden
Reporting MemberCeylon

Other Members: Australia, Brazil, China, Colombia, France, Federal Republic of Germany, India, Japan, Nicaragua, Pakistan, Saudi Arabia, Sudan, United Kingdom, United States, and Yugoslavia

Report I

September 26, 1959

Sir:

The Joint Procedures Committee, at its first meeting at 4:00 p.m. on September 26, 1959, considered the matters of business which had been proposed for this Annual Meeting of the Boards of Governors of the Bank and the Fund.

I have the honor to submit the following recommendations of the Committee:

1. Schedule of Meeting

The Committee recommends that the provisional schedule set forth in Annex I be adopted, and that the Secretaries of the Bank and the Fund, in consultation with the Chairman, may modify it as necessary.

2. Conduct of Meeting

The Committee recommends that the provisions relating to the conduct of the Meeting, as contained in Annex II, be approved.

3. Fund Agenda

The Committee recommends that the agenda set forth in Annex III be adopted by the Board of Governors of the Fund and that any proposed additions to the agenda be submitted in writing to the Joint Procedures Committee, through the Chairman, for its recommendations.

4. Later Reports of the Committee

The Committee also considered the other individual items of business on the proposed agendas of the Bank and the Fund and will make recommendations as to their disposition in separate Committee reports to the two Boards. The report on the Fund items will be given at the meeting of the Fund Board on Tuesday morning. The report on the Bank items of business will be presented at the meeting of the Bank Governors on Wednesday afternoon. At these meetings, any Governor who wishes to speak will have an opportunity to be heard on any item of business before the Governors.

The Committee will make a later report to the Joint Boards of Governors on:

  • a. Place and Date of Next Annual Meeting.

  • b. Election of Officers and Joint Procedures Committee for 1959-60.

Approved:

/s/F. Berckemeyer/s/R.S.S. Gunewardene
(Peru)(Ceylon)
ChairmanReporting Member

The Report was adopted by the Boards of Governors of the Fund and the Bank in Joint Session on September 28, 1959.

Annex I to Report I. Schedule

Saturday, September 26

4:00 p.m. Joint Procedures Committee

IFC Procedures Committee

Monday, September 28

10:00 a.m. Joint Boards—Address by the President of the United States

10:00 a.m. Joint Boards—Address by the Chairman

  • Joint Procedures Committee Report I

  • Annual Address, Managing Director of the Fund

Tuesday, September 29

10:00 a.m. Joint Boards—Annual Address, President of the Bank

Fund Board—Joint Procedures Committee Report II

  • Annual Report Discussion

3:00 p.m. Fund Board —Annual Report Discussion (continued)

Wednesday, September 30

10:00 a.m. IFC Board —Procedures Committee Report

  • Annual Address, President of the IFC

  • Annual Report Discussion

3:00 p.m. Bank Board —Joint Procedures Committee Report III

  • Annual Report Discussion

Thursday, October 1

10:00 a.m. Bank Board—Annual Report Discussion (continued)

5:00 p.m. Joint Procedures Committee

Friday, October 2

10:00 a.m. Joint Boards—Comments, President of the Bank

  • Comments, Managing Director of the Fund

  • Comments, President of the IFC

  • Joint Procedures Committee Report IV

  • Closing Session

Annex II to Report I. Provisions Relating to the Conduct of the Meeting

Attendance

  • 1. All Sessions of the Boards of Governors of the Bank and the Fund, including Joint Sessions, shall be open to the press and invited guests, unless otherwise decided. Committee meetings shall be closed.

  • 2. Meetings of the Joint Procedures Committee shall be open only to Governors who are members of the Committee and their delegations.

  • 3. Committee meetings, if any, with the exception of Joint Procedures Committee Meetings, shall be open to delegations who are not Committee members.

  • 4. Accredited observers may attend all Sessions of the Boards of Governors and their Committees, other than the Joint Procedures Committee, unless decided otherwise. Observers wishing to speak at a meeting are requested to consult the Secretaries in advance.

  • 5. Sessions of the Boards of Governors and Committee meetings shall be open to such members of the Joint Secretariat and the technical staffs as may be necessary.

Public Information

  • 6. The Chairmen of the Boards of Governors, the President of the Bank, and the Managing Director of the Fund are authorized to communicate to the press such information concerning the proceedings of the Annual Meeting as they deem suitable. Copies of such communications shall be available to any Governor on his request.

Records

  • 7. The Secretaries of the Bank and the Fund are authorized to prepare verbatim transcripts of the proceedings of Sessions of the Boards of Governors and their Committees. The transcripts of Committee proceedings, and any summary records thereof, will be confidential and available only to the Chairmen, the President of the Bank and the Managing Director of the Fund, and the Secretaries, unless otherwise decided.

  • 8. Reports of Committees shall be signed by the respective Committee Chairmen and Reporting Members.

Annex III to Report I. Agenda

  • 1. Fourteenth Annual Report

  • 2. Financial Statements and Audit Report

    • (Appendix X of Fourteenth Annual Report and Fund Documents Nos. 2 and 3)

  • 3. Administrative Budget for Fiscal Year Ending April 30, 1960

    • (Appendix IX of Fourteenth Annual Report and Fund Documents Nos. 3 and 4)

  • 4. General Reserve

    • (Fund Document No. 5)

  • 5. Changes in Rules and Regulations

    • (Fund Document No. 6)

  • 6. Application for Membership—Laos

    • (Fund Document No. 7)

  • 7. Application for Membership—Portugal

    • (Fund Document No. 8)

  • 8. Place and Date of Next Annual Meeting

  • 9. Election of Officers and Procedures Committee for 1959-60

Report II1

September 26, 1959

Sir:

The Joint Procedures Committee, at its first meeting at 4:00 p.m., on September 26, 1959, considered the matters of business on the agenda of the Board of Governors of the Fund.

I have the honor to submit the following report and recommendations of the Committee:

1. Fourteenth Annual Report

The Committee noted that provision has been made for discussion of the Annual Report at this meeting of the Fund Board of Governors.

2. Financial Statements, Report on Audit, and Administrative Budget

The Committee considered the Report on Audit for the Fiscal Year ended April 30, 1959, the Financial Statements contained therein (Fund Document No. 2 and Appendix X of the Annual Report), and the Administrative Budget for the Fiscal Year ending April 30, 1960 (Appendix IX of the Annual Report and Fund Document No. 4).

The Committee recommends to the Board of Governors the adoption of the draft resolution set forth in Fund Document No. 3.2

3. General Reserve

The Committee also considered the recommendation of the Executive Directors with respect to the allocation to the General Reserve of the Fund’s net income for the fiscal year ended April 30, 1959 [Annex I].

The Committee recommends that the Board of Governors approve the recommendation of the Executive Directors and adopt the draft resolution contained in Fund Document No. 5.3

4. Rules and Regulations

The Committee reviewed the amendments to Rules 1-2, 1-4 (f), 1-4(g) and N-13 of the Rules and Regulations as submitted by the Executive Directors [Annex II].

The Committee recommends adoption by the Board of Governors of the draft resolution set forth in Fund Document No. 6.4

5. Applications for Membership

a. Kingdom of Laos

The Committee considered the recommendations of the Executive Directors regarding the application of the Government of the Kingdom of Laos for membership in the Fund [Annex III].

The Committee recommends the draft resolution set forth in Fund Document No. 7 for adoption by the Board of Governors.5

b. Portugal

The Committee considered the recommendations of the Executive Directors regarding the application of the Government of Portugal for membership in the Fund [Annex IV].

The Committee recommends the draft resolution set forth in Fund Document No. 8 for adoption by the Board of Governors.6

Approved:

/s/F. Berckemeyer/s/R.S.S. Gunewardene
(Peru)(Ceylon)
ChairmanReporting Member

Annex I to Report II

September 26, 1959

Dear Mr. Chairman:

For the fiscal year ended April 30, 1959, the Fund had net income of $20,494,308.08. Under the Articles of Agreement it must be determined annually what part of the Fund’s income shall be placed to reserve and what part, if any, shall be distributed.

At the Thirteenth Annual Meeting, the Board of Governors noted with approval the establishment of a General Reserve and the allocation to such reserve of the net income for the fiscal year ended April 30, 1958 (Resolution No. 13-8).

Pursuant to the decision taken by the Executive Board on April 14, 1958, the net income of the Fund subsequent to April 30, 1958 has been transferred provisionally at the end of each month to the General Reserve. The total amount thus transferred for the fiscal year ended April 30, 1959 is $20,494,308.08.

The Executive Directors recommend that the Board of Governors adopt the attached draft resolution7 approving this allocation to the General Reserve.

Yours very truly,
/s/
Per Jacobsson
Managing Director
and
Chairman of the Executive Board

Chairman of the Board of Governors

Fourteenth Annual Meeting

International Monetary Fund

Annex II to Report II

September 26, 1959

Dear Mr. Chairman:

In accordance with Section 16 of the By-Laws, the attached amendments to the Rules and Regulations are submitted for review by the Board of Governors.

On December 15, 1958, Rules I-2 and I-4(f) were amended to extend until March 31, 1959, the then prevailing service charge on transactions and charges on the Fund’s holdings of member currencies in excess of quotas. These Rules were amended again on March 20, 1959 and on April 20, 1959 to extend the prevailing charges to April 30, 1959 and to April 30, 1960, respectively.

On April 27, 1959, Rule I-4(g) was amended to set forth the policy on maximum rates of charges after the point has been reached at which consultation between the Fund and a member must take place as to the means of reducing the Fund’s holdings of the member’s currency.

On July 1, 1959, Rule N-13 was amended to restore the clearance level for appointments and dismissals of staff to officers who are of the rank or responsibility originally contemplated in the Rule.

These Rules as last amended are set forth in Attachment 1. A proposed Resolution for consideration by the Board of Governors is reproduced in Attachment 2.8

The Executive Directors have made no other changes in the Rules and Regulations since the last Annual Meeting.

Yours very truly,
/s/
Per Jacobsson
Managing Director
and
Chairman of the Executive Board

Chairman of the Board of Governors

Fourteenth Annual Meeting

International Monetary Fund

Attachment 1. Amendments to the Rules and Regulations Since the Thirteenth Annual Meeting

Rule 1-2. Text as amended on April 20, 1959 (the part affected by the successive amendments is shown in brackets):

The service charge payable by a member buying the currency of another member in exchange for its own currency shall be paid at the time the transaction is consummated. The service charge payable for such transactions taking place from December 1, 1951 through [December 31, 1958, March 31, 1959, April 30, 1959] April 30, 1960, shall be ½ of 1 per cent.

Former text adopted September 25, 1946, amended November 19, 1951, November 14, 1952, June 26, 1953, October 14, 1953, December 23, 1953, December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, December 9, 1957, December 12, 1958, March 20, 1959, and April 20, 1959.

Rule I-4 (f). Text as amended on April 20, 1959 (the part affected by the successive amendments is shown in brackets):

With respect to each segment of the holdings of a member’s currency to the extent that it represents the acquisition of that currency by the Fund from January 1, 1954 through [December 31, 1958, March 31, 1959, April 30, 1959] April 30, 1960:

  • (i) The charge to be levied on each segment to the extent that it is within the first bracket of 50 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next fifteen months, and an additional ½ per cent per annum for each subsequent six months.

  • (ii) The charge to be levied on each segment to the extent that it is within the second bracket of more than 50 per cent and not more than 75 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next nine months, and an additional ½ per cent per annum for each subsequent six months.

  • (iii) The charge to be levied on each segment to the extent that it is within the third bracket of more than 75 per cent and not more than 100 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next three months, and an additional ½ per cent per annum for each subsequent six months.

Former text adopted December 23, 1953, amended December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, December 9, 1957, December 12, 1958, March 20, 1959, and April 20, 1959.

Rule I-4(g). Text as amended April 27, 1959 (the part affected by the amendment is shown in brackets):

The Fund and the member shall consider means by which the Fund’s holdings of the currency can be reduced whenever the Fund’s holdings of a member’s currency are such that:

  • (i) (e) above applies and the charge applicable to any segment for any period has reached the rate of 3½ per cent per annum, or

  • (ii) (f) above applies and the charge applicable to any segment for any period has reached the rate of 4 per cent per annum.

[Failing agreement, the Fund may impose such charges as it deems appropriate when the charge levied under (e) and (f) above has reached 4 per cent per annum; provided that the charges imposed by the Fund shall not exceed the charges prescribed by (e) and (f) above until the rate of 5 per cent per annum has been charged for six months.]

Thereafter, the charges shall rise in accordance with (e) and (f) above, provided that the rate shall not increase beyond 5 per cent per annum when agreement is reached under this Rule for repurchase within three to five years after a drawing in accordance with Executive Board Decision No. 102-(52/11). In the case of agreements on means to reduce the Fund’s holdings beyond five years, the Fund may adopt higher maximum rates. In the absence of agreement on means to reduce the Fund’s holdings, the Fund may impose such charges as it deems appropriate after the rate of 5 per cent per annum is reached.

Former text adopted as I-4(f) November 19, 1951, amended December 23, 1953, and April 27, 1959.

Rule N-13. Text as amended on July 1, 1959 (the part affected by the amendment is shown in brackets):

The Managing Director shall inform the Executive Board at least two weeks in advance of any action to appoint or initiate the dismissal of [the Directors and Assistant Directors of departments and offices of the Fund, the heads of divisions within departments and offices, and all persons to be paid $8,000 or more per year.] any person at or above the rank of division chief within a department or office or receiving a salary equal to or more than that of a division chief within a department. All other appointments to the staff shall be made by the Managing Director or his designated representative.

Former text adopted September 25, 1946, amended July 1, 1959.

Annex III to Report II

September 26, 1959

Dear Mr. Chairman:

I am transmitting herewith on behalf of the Executive Board a proposed resolution,9 which is recommended for adoption by the Board of Governors, on the admission of the Kingdom of Laos to membership in the Fund.

Yours very truly,
/s/
Per Jacobsson
Managing Director
and
Chairman of the Executive Board

Chairman of the Board of Governors

Fourteenth Annual Meeting

International Monetary Fund

Annex IV to Report II

September 26, 1959

Dear Mr. Chairman:

I am transmitting herewith on behalf of the Executive Board a proposed resolution,10 which is recommended for adoption by the Board of Governors, on the admission of Portugal to membership in the Fund.

Yours very truly,
/s/
Per Jacobsson
Managing Director
and
Chairman of the Executive Board

Chairman of the Board of Governors

Fourteenth Annual Meeting

International Monetary Fund

Report IV1

October 1, 1959

Sir:

The Joint Procedures Committee held its second meeting on October 1 at 5:00 p.m., and submits the following report:

1. Place and Date of the Next Annual Meetings

The Committee recommends that the 1960 Annual Meetings be convened in Washington in September 1960.

2. Officers and Procedures Committee of Bank and Fund

The Committee recommends that the Governor for Australia be elected Chairman and that the Governors for Mexico and Pakistan be elected Vice-Chairmen of the Boards of Governors, to hold office until the close of the next Annual Meeting.

The Committee further recommends that a Procedures Committee of the Bank and Fund be established to be available after the termination of this Meeting, and until the close of the next Annual Meeting, for consultation at the discretion of the Chairman, normally by correspondence, and also, if occasion requires, by convening when necessary. This Committee shall be comprised of the Governors for the following members: Australia, Canada, China, Dominican Republic, France, Germany, Ghana, India, Ireland, Korea, Lebanon, Libya, Mexico, Norway, Pakistan, United Kingdom, United States, Uruguay, and Viet-Nam. It is further recommended that the Chairman and the Vice-Chairmen of this Committee shall be the Governors for Australia, Mexico, and Pakistan, respectively, and that the Governor for Libya shall serve as Reporting Member.

Approved:

/s/F. Berckemeyer/s/R.S.S. Gunewardene
(Peru)(Ceylon)
ChairmanReporting Member

The Joint Procedures Committee reported also on the business proposed by the Bank, references to which, however, have been omitted here. The numbering of the Annexes to this Report has been adjusted to take account of this omission.

The Report and the Resolutions recommended therein were adopted by the Board of Governors on September 29, 1959.

Resolution No. 14-5, adopted September 29, 1959; see page 163.

Resolution No. 14-6, adopted September 29, 1959; see page 163.

Resolution No. 14-7, adopted September 29, 1959; see page 163.

Resolution No. 14-8, adopted September 29, 1959; see page 164.

Resolution No. 14-9, adopted September 29, 1959; see page 167.

Resolution No. 14-6, adopted September 29, 1959; see page 163.

Resolution No. 14-7, adopted September 29, 1959; see page 163.

Resolution No. 14-8, adopted September 29, 1959; see page 164.

Resolution No. 14-9, adopted September 29, 1959; see page 167.

Report III dealt with business of the Board of Governors of the Bank. Report IV was adopted by the Board of Governors of the Fund on October 2, 1959; for the Resolutions incorporating the decisions of the Board in this connection, see pages 169-70.

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